Document:

Unassociated Document

     

    Exhibit
10.2

     

    AMENDED
AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT

     

    OF

     

    ADVANCED
AUTOMATION GROUP, LLC

     

    (A
DELAWARE LIMITED LIABILITY COMPANY)

     

    THE
SECURITIES REPRESENTED BY THIS AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 NOR REGISTERED OR QUALIFIED UNDER ANY STATE SECURITIES
LAWS.  SUCH SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, DELIVERED
AFTER SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS REGISTERED AND QUALIFIED
UNDER APPLICABLE FEDERAL AND STATE SECURITIES LAWS OR UNLESS, IN THE OPINION OF
COUNSEL SATISFACTORY TO COMPANY, SUCH REGISTRATION AND QUALIFICATION IS NOT
REQUIRED.  ANY TRANSFER OF THE SECURITIES REPRESENTED BY THIS
AGREEMENT IS FURTHER SUBJECT TO OTHER RESTRICTIONS, THE TERMS AND CONDITIONS OF
WHICH ARE SET FORTH IN THIS AGREEMENT.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      

      
        	
                Table of
      Contents

              
	 
	 
      	 
      	
                Page

              
	 	 	 
	
                ARTICLE
      I ORGANIZATIONAL MATTERS

              	
                1

              
	 	 
	
                1.1

              	
                Name

              	
                1

              
	 	 	 
	
                1.2

              	
                Term

              	
                1

              
	 	 	 
	
                1.3

              	
                Office

              	
                1

              
	 	 	 
	
                1.4

              	
                Purpose
      of Company

              	
                2

              
	 	 	 
	
                1.5

              	
                Intent

              	
                2

              
	 	 	 
	
                1.6

              	
                Agent
      for Process

              	
                2

              
	 	 	 
	
                1.7

              	
                Qualification

              	
                2

              
	 	 	 
	
                ARTICLE
      II CONTRIBUTIONS AND CAPITAL ACCOUNTS

              	
                2

              
	 	 
	
                2.1

              	
                Contributions

              	
                2

              
	 	 	 
	
                2.2

              	
                Additional
      Interests and Classes

              	
                2

              
	 	 	 
	
                2.3

              	
                Capital
      Accounts

              	
                3

              
	 	 	 
	
                2.4

              	
                No
      Interest

              	
                3

              
	 	 	 
	
                2.5

              	
                Certificates
      of Interest

              	
                3

              
	 	 	 
	
                ARTICLE
      III MEMBERS

              	
                3

              
	 	 
	
                3.1

              	
                Members

              	
                3

              
	 	 	 
	
                3.2

              	
                Resignations;
      Insolvency

              	
                3

              
	 	 	 
	
                3.3

              	
                Action
      by Members

              	
                3

              
	 	 	 
	
                ARTICLE
      IV MANAGEMENT

              	
                4

              
	 	 
	
                4.1

              	
                Management
      by Managers

              	
                4

              
	 	 	 
	
                4.2

              	
                Designation,
      Resignation, and Removal of Managers

              	
                4

              
	 	 	 
	
                4.3

              	
                Limitations
      on Powers of Managers

              	
                5

              
	 	 	 
	
                4.4

              	
                Specific
      Agreements

              	
                5

              
	 	 	 
	
                4.5

              	
                Budget

              	
                6

              

      

      

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

      

      
        	
                Table of
      Contents

              
	 
	 
      	 
      	
                Page

              
	 	 	 
	
                ARTICLE
      V ALLOCATIONS OF PROFIT, LOSS AND DISTRIBUTIONS

              	
                6

              
	 	 
	
                5.1

              	
                No
      Priorities of Members; No Withdrawals of Capital

              	
                6

              
	 	 	 
	
                5.2

              	
                Allocation
      of Profit

              	
                6

              
	 	 	 
	
                5.3

              	
                Special
      Allocations

              	
                6

              
	 	 	 
	
                5.4

              	
                Tax
      Allocation Matters

              	
                7

              
	 	 	 
	
                5.5

              	
                Distributions

              	
                8

              
	 	 	 
	
                5.6

              	
                Additional
      Allocation Rules

              	
                8

              
	 	 	 
	
                5.7

              	
                Order
      of Application

              	
                9

              
	 	 	 
	
                5.8

              	
                Allocation
      of Excess Nonrecourse Liabilities

              	
                9

              
	 	 	 
	
                5.9

              	
                Form
      of Distribution

              	
                9

              
	 	 	 
	
                5.10

              	
                Amounts
      Withheld

              	
                10

              
	 	 	 
	
                ARTICLE
      VI TRANSFERS OF INTERESTS

              	
                10

              
	 	 
	
                6.1

              	
                Transfers
      of Interests, Generally

              	
                10

              
	 	 	 
	
                6.2

              	
                Permitted
      Transfers

              	
                10

              
	 	 	 
	
                6.3

              	
                Further
      Restrictions on Transfers

              	
                11

              
	 	 	 
	
                6.4

              	
                Sale
      of Interest

              	
                11

              
	 	 	 
	
                6.5

              	
                Shot
      Gun Buy-Sell

              	
                11

              
	 	 	 
	
                6.6

              	
                Closing

              	
                12

              
	 	 	 
	
                6.7

              	
                Admission
      of Transferee as a Member

              	
                12

              
	 	 	 
	
                6.8

              	
                Enforcement

              	
                12

              
	 	 	 
	
                ARTICLE
      VII ACCOUNTING, RECORDS AND REPORTING

              	
                13

              
	 	 
	
                7.1

              	
                Books
      and Records

              	
                13

              
	 	 	 
	
                7.2

              	
                Financial
      and Tax Reports

              	
                13

              
	 	 	 
	
                7.3

              	
                Accounts;
      Invested Funds

              	
                14

              
	 	 	 
	
                7.4

              	
                Tax
      Elections

              	
                14

              

      

      

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

      

      
        	Table of
      Contents
	 
	 
      	 
      	
                Page

              
	 	 	 
	
                7.5

              	
                Tax
      Matters Partner

              	
                14

              
	 	 	 
	
                7.6

              	
                Confidentiality

              	
                14

              
	 	 	 
	
                ARTICLE
      VIII DISSOLUTION AND WINDING UP

              	
                14

              
	 	 
	
                8.1

              	
                Dissolution

              	
                14

              
	 	 	 
	
                8.2

              	
                Date
      of Dissolution

              	
                15

              
	 	 	 
	
                8.3

              	
                Winding
      Up

              	
                15

              
	 	 	 
	
                8.4

              	
                Liquidating
      Distributions

              	
                15

              
	 	 	 
	
                8.5

              	
                No
      Liability

              	
                16

              
	 	 	 
	
                8.6

              	
                Limitations
      on Payments Made in Dissolution

              	
                16

              
	 	 	 
	
                8.7

              	
                Certificate
      of Cancellation

              	
                16

              
	 	 	 
	
                ARTICLE
      IX LIMITATION OF LIABILITY; STANDARD OF CARE; INDEMNIFICATION

              	
                16

              
	 	 
	
                9.1

              	
                Limitation
      of Liability

              	
                16

              
	 	 	 
	
                9.2

              	
                Other
      Activities of Members, Managers

              	
                16

              
	 	 	 
	
                9.3

              	
                Standard
      of Care

              	
                17

              
	 	 	 
	
                9.4

              	
                Indemnification

              	
                17

              
	 	 	 
	
                9.5

              	
                Contract
      Right; Expenses

              	
                17

              
	 	 	 
	
                9.6

              	
                Indemnification
      of Employees and Agents

              	
                18

              
	 	 	 
	
                9.7

              	
                Nonexclusive
      Right

              	
                18

              
	 	 	 
	
                9.8

              	
                Severability

              	
                18

              
	 	 	 
	
                9.9

              	
                Insurance

              	
                18

              
	 	 	 
	
                ARTICLE
      X DEFINITIONS

              	
                19

              
	 	 
	
                10.1

              	
                “Act”

              	
                19

              
	 	 	 
	
                10.2

              	
                “Adjusted
      Capital Account”

              	
                19

              
	 	 	 
	
                10.3

              	
                “Affiliate”

              	
                19

              

      

      

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

      

      
        	
                Table
      of Contents

              
	 
	 
      	 
      	
                Page

              
	 	 	 
	
                10.4

              	
                “Agreement”

              	
                19

              
	 	 	 
	
                10.5

              	
                “AEM”

              	
                19

              
	 	 	 
	
                10.6

              	
                “Board”

              	
                19

              
	 	 	 
	
                10.7

              	
                “Board
      Consent”

              	
                19

              
	 	 	 
	
                10.8

              	
                “Board
      Manager”

              	
                19

              
	 	 	 
	
                10.9

              	
                “Business”

              	
                19

              
	 	 	 
	
                10.10

              	
                “Budget”

              	
                19

              
	 	 	 
	
                10.11

              	
                “Capital
      Account”

              	
                20

              
	 	 	 
	
                10.12

              	
                “Certificate
      of Formation”

              	
                20

              
	 	 	 
	
                10.13

              	
                “Code”

              	
                20

              
	 	 	 
	
                10.14

              	
                “Company”

              	
                20

              
	 	 	 
	
                10.15

              	
                “Company
      Minimum Gain”

              	
                20

              
	 	 	 
	
                10.16

              	
                “Contribution”

              	
                20

              
	 	 	 
	
                10.17

              	
                “Control”

              	
                20

              
	 	 	 
	
                10.18

              	
                “Cumulative
      Tax”

              	
                20

              
	 	 	 
	
                10.19

              	
                “Distributable
      Cash”

              	
                20

              
	 	 	 
	
                10.20

              	
                “Distribution”

              	
                21

              
	 	 	 
	
                10.21

              	
                “Exchange
      Act”

              	
                21

              
	 	 	 
	
                10.22

              	
                “Fair
      Market Value”

              	
                21

              
	 	 	 
	
                10.23

              	
                “Fiscal
      Year”

              	
                21

              
	 	 	 
	
                10.24

              	
                “Harbin”

              	
                21

              
	 	 	 
	
                10.25

              	
                “Interest”

              	
                21

              
	 	 	 
	
                10.26

              	
                “Interest
      Rate”

              	
                21

              
	 	 	 
	
                10.27

              	
                “Manager”

              	
                21

              
	 	 	 
	
                10.28

              	
                “Member”

              	
                21

              

      

      

      
        
          
          

        

        
          iv

          
            

          

        

        
          
          

        

      

      

      
        	
                Table of
      Contents

              
	 
	 
      	 
      	
                Page

              
	 	 	 
	
                10.29

              	
                “Member
      Minimum Gain”

              	
                21

              
	 	 	 
	
                10.30

              	
                “Member
      Nonrecourse Deductions”

              	
                22

              
	 	 	 
	
                10.31

              	
                “Nonrecourse
      Deductions”

              	
                22

              
	 	 	 
	
                10.32

              	
                “Officer”

              	
                22

              
	 	 	 
	
                10.33

              	
                “Percentage”

              	
                22

              
	 	 	 
	
                10.34

              	
                “Person”

              	
                22

              
	 	 	 
	
                10.35

              	
                “Profit”
      and “Loss”

              	
                22

              
	 	 	 
	
                10.36

              	
                “Shelton”

              	
                22

              
	 	 	 
	
                10.37

              	
                “Tax
      Matters Partner”

              	
                22

              
	 	 	 
	
                10.38

              	
                “Transfer”

              	
                22

              
	 	 	 
	
                10.39

              	
                “Treasury
      Regulations”

              	
                23

              
	 	 	 
	
                ARTICLE
      XI MISCELLANEOUS

              	
                24

              
	 	 
	
                11.1

              	
                Entire
      Agreement

              	
                24

              
	 	 	 
	
                11.2

              	
                Counterparts;
      Facsimile Signatures

              	
                24

              
	 	 	 
	
                11.3

              	
                Further
      Assurances

              	
                24

              
	 	 	 
	
                11.4

              	
                Notices

              	
                24

              
	 	 	 
	
                11.5

              	
                Amendments;
      Waivers; Remedies

              	
                25

              
	 	 	 
	
                11.6

              	
                Construction
      of Certain Terms and References; Captions

              	
                25

              
	 	 	 
	
                11.7

              	
                Arms’-length
      Bargaining; No Presumption Against Drafter

              	
                26

              
	 	 	 
	
                11.8

              	
                No
      Agency

              	
                26

              
	 	 	 
	
                11.9

              	
                No
      Assignment or Delegation

              	
                26

              
	 	 	 
	
                11.10

              	
                Transaction
      Expenses

              	
                26

              
	 	 	 
	
                11.11

              	
                Governing
      Law

              	
                26

              
	 	 	 
	
                11.12

              	
                Disputes

              	
                26

              
	 	 	 
	
                11.13

              	
                Waiver
      of Dissolution Rights

              	
                27

              

      

      
 

      
        
          
          

        

        
          v

          
            

          

        

        
          
          

        

      

    

     

    AMENDED
AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT

     

    OF

     

    ADVANCED
AUTOMATION GROUP, LLC

     

    (A
DELAWARE LIMITED LIABILITY COMPANY)

     

    This
Amended and Restated Limited Liability Company Agreement of Advanced Automation
Group, LLC, a Delaware limited liability company (“Company”), dated as
of August 25, 2010, and effective as of July 1, 2010, is made by and among the
Persons identified on Schedule
A.

     

    A.           Immediately
prior to the date hereof, AEM was Company’s sole member, and Company was
disregarded as an entity separate from AEM for federal income tax
purposes.

     

    B.           Shelton
desires to make a Contribution to, and become a Member of, Company, and AEM
desires Shelton to become a Member.

     

    C.           Upon
admission of Shelton as a Member, AEM shall be deemed to contribute all of
Company’s assets (subject to all of the liabilities) immediately prior to such
admission, and Company will be treated as a partnership, for federal income tax
purposes.

     

    D.           The
parties desire to amend and restate the limited liability company agreement of
Company to reflect the rights and obligations of the Members and
Managers.

     

    The
parties accordingly agree as follows:

     

    ARTICLE
I

    ORGANIZATIONAL
MATTERS

     

    1.1           Name.  The
name of Company shall be “Advanced Automation Group,
LLC,” or upon compliance with applicable law, such other name as the
Board may determine.  The Business of Company shall be conducted under
that name.  Company shall promptly notify the Members of any change in
the name of Company.

     

    1.2           Term.  Company’s
existence commenced upon the filing of its Certificate of Formation with the
Delaware Secretary of State on April 6, 2007 and shall continue until such time
as Company is dissolved and wound up pursuant to ARTICLE VIII.

     

    1.3           Office.  The
principal office of Company shall be located at 1685 W. Hamlin Road, Rochester
Hills, MI 48309, USA, or at such other place as the Board may determine from
time to time.  Company shall promptly notify the Members of any change
in Company’s principal office.  Company shall also have such
additional offices as the Board may determine from time to time.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

    

    1.4           Purpose of
Company.  The purpose of Company shall be to engage in the
Business and any activities incidental thereto or connected
therewith.

     

    1.5           Intent.  The
Members intend that Company shall be treated as a “partnership” for federal
income tax purposes and that Company not be operated or treated as a
“partnership” for purposes of Section 303 of the United States Bankruptcy
Code.  No Member or Manager shall take any action inconsistent with
either such express intent without the affirmative vote of Members owning a
majority of the Percentages.

     

    1.6           Agent for
Process.  The name of Company’s registered agent for service of
process and the business address of Company’s registered office in the State of
Delaware are Corporation Trust Company, 1209 Orange Street, Wilmington,
DE 19801 or such other Person with such other address as the Board may
appoint from time to time.

     

    1.7           Qualification.  Company
shall qualify to do business in each jurisdiction where the Board determines
that such qualification is required.

     

    ARTICLE
II

    CONTRIBUTIONS
AND CAPITAL ACCOUNTS

     

    2.1           Contributions.

     

    (a)           Each
Member has contributed (or is deemed to have contributed) to Company the
Contribution specified opposite such Member’s name on Schedule A.  AEM
shall make an additional Contribution of $1 million by December 31, 2011 to
Company, which shall invest $1 million to the wholly-owned subsidiary of Company
in Shanghai, China, Advanced Automation Group Shanghai Co., Ltd. (“AAG
Shanghai”), to manufacture and test Company’s products.

     

    (b)           Except
as set forth in this Section
2.1 or pursuant to Section 2.2, no Member shall
be required or, without Board Consent, permitted to, make any Contribution or
loan to Company.

     

    2.2           Additional Interests and
Classes.  Company may admit additional Members on such terms
and conditions, including pursuant to options or other rights to acquire
Interests, as from time to time the Board may determine in its sole
discretion.  Such additional Members may be admitted in classes of
Interests, having such voting rights or no voting rights, and such other
relative rights, powers, and duties as the Board may determine in its sole
discretion, including rights, powers, and duties senior to existing classes,
provided that, before a class is created, existing Members not constituted as a
class shall be constituted as one class.  Any Person may be admitted
as a Member of more than one class, on terms applicable to each such
class.  The Board may amend this Agreement, including Members’
Percentages, without the vote of any Member or class, except as otherwise
expressly set forth herein, to create such additional Interests, classes, or
options or other rights to acquire Interests, and Company shall give a copy of
such amendment to each Member.  As a condition of admission pursuant
to this Section 2.2,
including as a Member of a class of which a Person is not already a Member
(other than a class created pursuant to the provision of the second sentence of
this Section 2.2), such
Person shall execute an instrument making such Person a party to this Agreement,
as so amended, if applicable, and any other document as the Board may determine
to carry out the intention of this Section.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    2.3           Capital
Accounts.  Company shall establish and maintain a separate
Capital Account for each Member.

     

    2.4           No
Interest.  No Member shall be entitled to receive interest on
the Member’s Contribution or Capital Account.

     

    2.5           Certificates of
Interest.  In the Board’s discretion, Company may issue
certificates representing outstanding Interests, bearing such legends as the
Board may determine.

     

    ARTICLE
III

    MEMBERS

     

    3.1           Members.  The
name, address, telecopier number, Contribution, and Percentage of each Member is
set forth on Schedule
A.  Company shall amend Schedule A to reflect any
change pursuant to this Agreement of which Company is aware in any of the
foregoing with respect to any Member.

     

    3.2           Resignations;
Insolvency.  No Member may resign from Company prior to its
dissolution and liquidation.  A Member that purports to resign in
contravention of this Agreement shall not be entitled to any Distribution as a
result of such purported resignation and shall be liable to Company and the
other Members for any damages suffered by them as a result of such purported
resignation.  A Person that purports to resign as a Member thereafter
shall have only the rights of an assignee with respect to such Person’s
Interest, but shall not be relieved of any obligation as a Member.  A
Person that ceases to be a Member pursuant to Section 18-304 of the Act shall
thereafter have only the rights of an assignee with respect to such Person’s
Interest.

     

    3.3           Action by
Members.

     

    (a)           Except
as otherwise specifically provided herein, no Member, in such capacity, shall
(i) manage or participate in managing Company, (ii) transact any business on
behalf of Company, or (iii) have any power or authority to bind
Company.

     

    (b)           Members
owning in total not less than the Percentage necessary to take action by vote at
a meeting may take such action, without prior notice or a vote, by signed
written consent or consents (including by electronic transmission, as defined in
Section 18-302(d) of the Act) setting forth the action being taken, delivered to
the Board within 60 days after the date of the earliest
signature.  Company shall keep the minutes of each meeting and each
written consent in its minute book and promptly notify all Members of action
taken by written consent by fewer than all Members.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    ARTICLE
IV

    MANAGEMENT

     

    4.1           Management by
Managers.

     

    (a)           Except
as otherwise expressly provided in this Agreement or as expressly required by a
non-waivable provision of the Act, the management of Company shall be vested in
exclusively in the Managers, with the rights, powers, and duties hereinafter set
forth.  Notwithstanding the foregoing, no Manager shall authorize,
take, or cause to be taken any action by or on behalf of Company, or purport to
bind Company with respect to any matter, outside Company’s routine operations or
affairs, without Board Consent.  The Board shall act by affirmative
vote of no less than four of the Board Managers at a meeting, minutes of which
shall be kept in Company’s minute book, or by written consent or consents
(including by electronic transmission, as defined in Section 18-404 of the Act)
of no less than four of the Board Managers, which shall be kept in Company’s
minute book (such vote or written consent to be referred to as “Board
Consent”).

     

    (b)           Company’s
Business and affairs shall be managed under the direction of the Board,
constituted as set forth in Section
4.2(a).  Officers shall have responsibility for Company’s
routine operations.  One Officer shall have the duty to record the
proceedings of the Board and Members in Company’s minute book.  Except
as otherwise expressly provided herein, a Manager may resign upon prior written
notice to the Board.

     

    4.2           Designation, Resignation,
and Removal of Managers.

     

    (a)           For
so long as AEM and Shelton are Members, the Board shall be comprised of five
Managers (each, a “Board Manager”), of
whom three shall be designated by AEM, and two shall be designated by
Shelton.  At such time as AEM or Shelton shall cease to be a Member
(“withdrawing Member”), the individuals designated by such withdrawing Member
shall cease to be Board Managers, such withdrawing Member shall no longer be
entitled to designate any Board Manager, and the number of Board Managers
comprising the Board shall be reduced by the number of Board Managers that such
withdrawing Member had been entitled to designate.  Notwithstanding
the foregoing, if the withdrawing Member has transferred its Interest pursuant
to Section 6.2(a) or
6.4(c), the number of Board Managers shall not be adjusted; the
transferee shall be entitled to designate the number of Board Managers that the
withdrawing Member had been entitled to designate; and, thereafter, the
transferee may remove Board Managers or fill vacancies among Board Managers in
accordance with Section
4.2(a)(ii).

     

    (i)           AEM
hereby designates Tianfu Yang (“Yang”), Tianli Yang,
and Zedong Xu as Board Managers.  Shelton hereby designates Shaotang
Chen (“Chen”)
and Julie Chen as Board Managers.

     

    (ii)           By
notice to Company and the other Member, either Member may, at any time, remove
any Board Manager designated pursuant to Section 4.2(a)(i) (or the last
sentence of Section
4.2(a), in the case of a transferee Member) or this Section 4.2(a)(ii) and at any
time designate an individual to fill any vacancy, however created, among those
so designated.

     

    (b)           Company
shall have such Officers, with such responsibilities, as shall be determined by
the Board from time to time and as set forth herein.  The Board may
remove or replace any Officer, at any time, for any or no reason, as the Board
shall determine.  No such removal shall impair an Officer’s rights
under any employment agreement with Company.  Yang is hereby appointed
Chairman and Chief Executive Officer, and Chen is hereby appointed General
Manager, each with such authority and responsibilities as he held prior to the
date hereof.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    (c)           Chen
shall not resign as a Manager for so long as Shelton is a Member.

     

    4.3           Limitations on Powers of
Managers.  Without Board Consent, no Manager shall take any
action under Section 2.2 or
2.3, or on Company’s behalf or cause Company to:

     

    (a)           amend,
restate, or revoke the Certificate of Formation or amend this
Agreement;

     

    (b)           authorize,
enter, amend, or revoke any agreement, commitment, or other transaction between
Company and any Manager or Affiliate of any Manager;

     

    (c)           sell,
assign, exchange, lease, mortgage, pledge or otherwise transfer any Company
asset, other than inventory in the ordinary course of business,

     

    (d)           acquire
any asset in a single transaction or related transactions for a total purchase
price exceeding $50,000;

     

    (e)           incur,
assume or otherwise incur any liability, enter into any transaction, or pay or
incur any expense other than in accordance with the Budget;

     

    (f)           create,
incur, assume, or otherwise become liable with respect to any obligation for
borrowed money;

     

    (g)           hire
or fix the compensation of any employee;

     

    (h)           hire
or engage or continue the employment engagement of any employee or consultant
that has not signed an intellectual property agreement in the form of Exhibit A.

     

    (i)           adopt,
make, amend or revoke any tax or accounting election, method or procedure
relating to Company;

     

    (j)           change
Company’s accountants;

     

    (k)           make
any Distribution, other than as provided herein; or

     

    (l)           agree
to do any of the foregoing.

     

    The above
list may be amended from time to time with Board Consent to add additional
actions.

     

    4.4           Specific
Agreements.  Concurrently with execution hereof, the employment
agreement previously entered between Company and Chen, in the form of Exhibit B, shall continue, and
is hereby authorized and ratified

     

    
      
        
        

      

      
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    4.5           Budget.  Before
each Fiscal Year, the Board shall adopt a Budget for such Fiscal
Year.  If the Board fails to adopt a Budget for a Fiscal Year, the
Budget for the preceding Fiscal Year shall be deemed to be the current Fiscal
Year Budget until a new Budget is approved.

     

    ARTICLE
V

    ALLOCATIONS
OF PROFIT, LOSS AND DISTRIBUTIONS

     

    5.1           No Priorities of Members; No
Withdrawals of Capital.  Except as otherwise specified in this
Agreement, no Member shall have a priority over any other Member as to any
allocation of Profit, Loss, or special allocations or as to any Distribution,
whether by way of return of capital or by way of profits.  No Member
shall have any right to withdraw or reduce a Contribution, except as a result of
the dissolution and liquidation of Company, and, in such case, no Member shall
have the right to demand or receive property other than cash.  No
Member has any right to, interest in, or claim against any specific property of
Company by reason of his Interest.

     

    5.2           Allocation of Profit or
Loss.  Profit for each Fiscal Year (or portion thereof
beginning on or after the date hereof) shall be allocated to the Members in
accordance to their respective Percentages:

     

    5.3           Special
Allocations.

     

    (a)           If
there is a net decrease in Company Minimum Gain during any Fiscal Year (or
portion thereof beginning on or after the date hereof), the minimum gain
chargeback provisions described in Treasury Regulations § 1.704-2(f) and (g)
shall apply.

     

    (b)           If
there is a net decrease in Member Minimum Gain during any Fiscal Year (or
portion thereof beginning on or after the date hereof), the partner minimum gain
chargeback provisions described in Treasury Regulations § 1.704-2(i) shall
apply.

     

    (c)           If
a Member unexpectedly receives an adjustment, allocation, or Distribution
described in Treasury Regulations § 1.704 1(b)(2)(ii)(d)(4), (5) or (6), which
adjustment, allocation, or distribution creates or increases a deficit balance
in that Member’s Adjusted Capital Account, the “qualified income offset”
provisions described in Treasury Regulations § 1.704-1(b)(2)(ii)(d) shall
apply.

     

    (d)           Nonrecourse
Deductions shall be allocated to the Members in proportion to their respective
Percentages.

     

    (e)           Member
Nonrecourse Deductions shall be allocated to the Members as required by Treasury
Regulations § 1.704-2(i)(1).

     

    (f)           The
special allocations in Section
5.3 are intended to comply with certain requirements of the Treasury
Regulations and shall be interpreted consistently therewith.  The
Members intend that any special allocation pursuant to Section 5.3 shall be offset
with other special allocations pursuant to Section
5.3.  Accordingly, special allocations of income, gain, loss,
or deduction shall be made in such manner that, in the reasonable determination
of the Board, taking into account likely future allocations under Section 5.3, after such
allocations are made, each Member’s Capital Account is, to the extent possible,
equal to the Capital Account it would have been were Section 5.3 not part of this
Agreement.

     

    
      
        
        

      

      
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    5.4           Tax Allocation
Matters.

     

    (a)           Contributed or Revalued
Property.  Each Member’s allocable share of Company taxable
income or loss, or depreciation, depletion, amortization, and gain or loss with
respect to any contributed property, or with respect to Company property that is
revalued pursuant to Treasury Regulations § 1.704-1(b)(2)(iv)(f) and (g) or
Section 10.11, shall be
determined in the manner (and as to revaluations, in the same manner as)
provided in Section 704(c) of the Code. The allocation shall take into account,
to the full extent required or permitted by the Code, the difference between the
adjusted basis of the property to the Member contributing (or deemed to be
contributing) it and the Fair Market Value of the property at the time of its
contribution or revaluation, as the case may be, as determined by the
Board.  Company shall apply Section 704(c)(1)(A) by using the
“traditional method” as set forth in Treasury Regulations §
1.704-3(b).

     

    (b)           Recapture
Items.  If Company has taxable income in any Fiscal Year that
is characterized as ordinary income under the recapture provisions of the Code,
each Member’s distributive share of taxable gain or loss from the sale of
Company assets (to the extent possible) shall include a proportionate share of
this recapture income equal to that Member’s share of prior cumulative
depreciation deductions with respect to the assets giving rise to the recapture
income.

     

    (c)           Imputed
Interest.  If Company is required to recognize any interest
income pursuant to Section 483 or Sections 1271 through 1288 of the Code in
connection with any Member’s obligation to make a Contribution, such interest
income shall be specially allocated to such Member, and the amount of such
interest income shall be excluded from the Contributions credited to such
Member’s Capital Account in connection with the payment of such
obligation.

     

    (d)           Intent of
Allocations.  The Members intend that the allocation provisions
of this Agreement will produce a final Capital Account balance immediately prior
to the Distributions in liquidation of Company (after giving effect to all
contributions, allocations, distributions (other than in liquidation) and other
Capital Account adjustments for all Fiscal Years, including the Fiscal Year in
which the liquidation occurs) for each Member that will be equal to the amount
such Member will receive upon the dissolution and liquidation of
Company.  If such allocations would fail to produce such final Capital
Account balances, the Board may, in its sole discretion, require Profit, Loss,
special allocations, or items thereof to be allocated among the Members so as,
in the determination of the Board, to achieve such result to the extent
possible.

     

    (e)           Consistent
Treatment.  All items of income, gain, loss, deduction and
credit of Company shall be allocated among the Members for federal income tax
purposes in a manner consistent with the allocation of the corresponding items
under this ARTICLE
V.  Each Member is aware of the income tax consequences of the
allocations made by this ARTICLE V and hereby agrees to
be bound by the provisions of this ARTICLE V in reporting his
share of Company income, gain, loss, deduction and credit for income tax
purposes.  No Member shall report on his tax return any transaction by
Company or any amount allocated or distributed by Company or contributed to
Company inconsistently with the treatment reported (or to be reported) by
Company on its tax return or take a position for tax purposes that is
inconsistent with the position taken by Company.

     

    
      
        
        

      

      
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    5.5           Distributions.

     

    (a)           Tax
Distributions.  As soon as practicable following the end of
each Fiscal Year (or portion thereof beginning on or after the date hereof) or fiscal quarter, in
either case, if
authorized by Board Consent, Company shall distribute cash, to the extent there
is Distributable Cash, to the Members in an amount equal to the excess, if any,
of the Cumulative Tax with respect to such Fiscal Year or fiscal quarter, as
the case may be, over the aggregate amounts previously distributed pursuant to
this Section
5.5(a).  Such amounts shall be distributed to the Members in
proportion to such excess for each Member.  Company may designate
Distributions of Distributable Cash during the Fiscal Year, including any quarterly
Distributions of Distributable Cash, as advance distributions under this Section 5.5(a).  To
the extent such advance distributions exceed the amount required to be
distributed under this Section
5.5(a) with respect to the Fiscal Year, such excess shall be treated as a
Distribution pursuant to
Section 5.5(b), if the Board so determines, or
as a loan from Company to the recipient Member.  If such loan is not
repaid within 30 days after notice from the Board, the loan shall bear interest
at a rate equal to the Interest Rate from the date of such notice to the date of
repayment.  In addition to all other remedies Company may have,
Company may withhold Distributions that would otherwise be payable to such
Member and apply such amount to repayment of the loan and interest.

     

    (b)           Additional
Distributions.  Company shall
make Distributions in cash to the extent there is Distributable Cash (after any
reduction for any distribution under Section 5.5(a)), or in
property, at such times and in such amounts as the Board may
determine.  Any amount that is distributed under this Section 5.5(b) shall be
distributed to the Members in proportion to their respective
Percentages.

     

    (c)           Limitations on
Distributions. Notwithstanding anything herein to the contrary, Company
shall make no Distribution to a Member in violation of the Act.

     

    5.6           Additional Allocation
Rules.

     

    (a)           Allocation.  If
there is a change in any Member’s Percentage for any reason during any Fiscal
Year, each item of income, gain, loss, deduction or credit of Company for that
Fiscal Year shall be assigned pro rata to each day in that Fiscal Year in the
case of items allocated based on Percentages, and the amount of such item so
assigned to any such day shall be allocated to the Member based upon that
Member’s Percentage at the close of that day.  Notwithstanding the
foregoing, the net amount of gain or loss realized by Company in connection with
the sale or other disposition of property other than in the ordinary course of
business shall be allocated solely to Members having a Percentage on the date of
such sale or other disposition.

     

    
      
        
        

      

      
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    (b)           Distributions.  Except
as otherwise provided herein, all Distributions shall be allocated among the
Members in accordance with their respective Percentages on the date of the
Distribution.

     

    (c)           Percentage and Capital
Account.  If any Interest is Transferred pursuant to the terms
of this Agreement, the transferee shall succeed to the Percentage and Capital
Account of the transferor to the extent they are attributable to the Interest so
Transferred.

     

    5.7           Order of
Application.  To the extent that any allocation, Distribution
or adjustment specified in this Agreement affects the results of any other
allocation, Distribution or adjustment required herein, the allocations,
Distributions and adjustments specified in the following Sections shall be made
in the priority listed and in the order set forth therein:

     

    (a)           Section 5.5;

     

    (b)           Section 5.4;

     

    (c)           Section 5.3;

     

    (d)           Section 5.2; and

     

    (e)           Section 8.4.

     

    To the
extent possible, these provisions shall be applied as if all Distributions and
allocations were made at the end of Company’s Fiscal Year.  Where any
provision depends on the Capital Account of any Member, that Capital Account
shall be determined after the operation of all preceding provisions for the
Fiscal Year.

     

    5.8           Allocation of Excess
Nonrecourse Liabilities.  “Excess nonrecourse liabilities” of
Company as used in Treasury Regulations § 1.752-3(a)(3) shall first be allocated
among the Members pursuant to the “additional method” described in such section
and then in accordance with the Members’ respective Percentages.

     

    5.9           Form of
Distribution.

     

    (a)           No
Member has the right to demand or receive any Distribution from Company in any
form other than cash.  Except with respect to a Distribution of an
asset in kind to all of the Members in proportion to the respective amounts they
would have received upon Distribution of cash equal to the Fair Market Value of
the asset being distributed, no Member may be compelled to accept a
Distribution, whether interim or on dissolution and winding up, of any asset in
kind.  No Member may be compelled to assume any liability of Company
in connection with a Distribution.

     

    (b)           The
Board shall determine the Fair Market Value of any asset to be distributed in
kind (whether as interim Distribution or on dissolution and winding up) and the
Profit, Loss and special allocations that would have resulted if that asset had
been sold for that value, which amounts shall be allocated pursuant to this
ARTICLE V, and the
Members’ Capital Accounts shall be adjusted to reflect those
allocations.  The Capital Account of each Member receiving the in-kind
Distribution shall be charged with the Fair Market Value of such interest as
determined by the Board.

     

    
      
        
        

      

      
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    5.10           Amounts
Withheld.  Any amounts withheld with respect to a Member
pursuant to any federal, state, local or foreign tax law from a Distribution by
Company to the Member shall be treated as distributed to such Member pursuant to
Section 5.5 or 8.4.  Any other
amount that the Board determines is required to be paid by Company to a taxing
authority with respect to a Member pursuant to any federal, state, local or
foreign tax law in connection with any payment to or tax liability (estimated or
otherwise) of the Member shall be treated as a loan from Company to such
Member.  If such loan is not repaid within thirty (30) days from the
date the Board notifies such Member of such withholding, the loan shall bear
interest at the Interest Rate from the date of the applicable notice to the date
of repayment.  In addition to all other remedies Company may have,
Company may withhold Distributions that would otherwise be payable to such
Member and apply such amount toward repayment of the loan and
interest.  Each Member shall fully cooperate with the efforts of
Company to determine and comply with its withholding and reporting obligations,
and agrees to provide Company with such information as the Manager may
reasonably request in connection therewith.

     

    ARTICLE
VI

    TRANSFERS
OF INTERESTS

     

    6.1           Transfers of Interests,
Generally.  Except as otherwise expressly provided in this
ARTICLE VI, no Member
may Transfer all or any part of its Interest.  Any attempted Transfer
in violation of this ARTICLE
VI shall be null and void ab initio and shall not bind
Company, in addition to constituting a material breach of this
Agreement.  Any Transfer of a membership interest or part thereof in
Shelton without prior written approval by Harbin in the form of a Board Consent
shall be treated as a dissolution of Shelton as contemplated by Section 6.2(b).

     

    6.2           Permitted
Transfers.  Subject to Section 6.3, the restrictions
upon Transfer specified in Section 6.1 shall not apply to
any Transfer of all or any part of its Interest,

     

    (a)           by
AEM to Harbin or any other wholly owned subsidiary of Harbin (collectively,
“Harbin Permitted Transferees”) or subsequent Transfers of such Interest in
whole or part to any wholly owned subsidiary of Harbin Permitted Transferee,
provided, that, before any Harbin Permitted Transferee shall cease to be such,
it shall Transfer the Interest or part thereof held by it to a Harbin Permitted
Transferee; or

     

    (b)           by
Shelton, upon its dissolution, to those Persons that are on the date of such
dissolution members of Shelton (collectively, “Shelton Permitted Transferees”);
provided, however, that in the case of any dissolution of Shelton due to a
Transfer of a membership interest in Shelton without prior written approval of
Harbin, no such Transfer shall be recognized by Company or Harbin for purposes
of this Section 6.2(b);
provided, that any such Harbin Permitted Transferee or Shelton Permitted
Transferee (other than a Person who is already a Member) shall agree in writing
to be subject to the terms hereof, as a Member, and the Shelton Permitted
Transferees shall have only the rights of an assignee.

     

    
      
        
        

      

      
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    6.3           Further Restrictions on
Transfers.  Notwithstanding anything herein to the contrary, in
addition to any other restriction on Transfer of an Interest, no Interest may be
Transferred (a) without compliance with the Securities Act and any other
applicable securities or “blue sky” laws; (b) if, in the determination of the
Board, the Transfer could result in Company’s (i) not being classified as a
partnership for federal income tax purposes, (ii) being classified as a publicly
traded partnership for federal income tax purposes, or (iii) subject to the
Investment Company Act of 1940; (c) if, in the determination of the Board, the
Transfer would result in the termination of Company under Section 708 of the
Code, and such termination would have a material adverse effect on Company or
the Members; (e) if the transferee is a minor or incompetent; or (f) unless
Company is paid a transfer fee in cash sufficient, in the Board’s sole
determination, to cover all expenses incurred by Company in connection with the
Transfer and admission of the transferee as a Member.  Except pursuant
to Section 6.2, without
Board Consent, no Member shall Transfer less than all of its
Interest.

     

    6.4           Sale of
Interest.

     

    (a)           If
a Member (“Seller”) receives and
wishes to accept a bona fide written offer (“Third Party Offer”)
from an unrelated third party (“Buyer”) to purchase
all (but not less than all) of Seller’s Interest (“Offered Interest”)
for cash and otherwise in compliance herewith, Seller shall give notice (“Proposed Sale
Notice”) to such effect to the other Member (“Other
Member”).  The Proposed Sale Notice shall set forth the name
and address of the Buyer, the purchase price, and all other terms of the Third
Party Offer and contain an offer (“Notice Offer”),
irrevocable during the Option Period (as defined below), to sell all (but not
less than all) of the Offered Interest to the Other Member on the terms of the
Third Party Offer.  If the Offered Interest represents a majority of
the Percentages, Seller may stipulate in the Proposed Sale Notice that the Other
Member must sell its Interest to Buyer on the same terms as Seller (with the
purchase price for the Other Member’s Interest to be proportionately adjusted),
if Seller sells the Offered Interest pursuant to Section 6.4(c) (“Drag
Right”).  The Proposed Sale Notice shall be accompanied by a
copy of the Third Party Offer.

     

    (b)           By
notice given within 15 days after delivery of the Notice Offer (“Option Period”), the
Other Member may accept the Notice Offer or require Seller (“Tag Right”) to reject
the Third Party Offer, unless Buyer agrees with the Other Member to purchase all
of the Other Member’s Interest on the same terms (with the purchase price for
the Other Member’s Interest to be proportionately adjusted) as the Offered
Interest.

     

    (c)           If
the Other Member does not accept the Notice Offer, Seller may, within 10 days
following the earlier of the expiration of the Option Period or the Other
Member’s notifying Seller that the Other Member either exercises the Tag Right
or declines to exercise any of its rights under Section 6.4(b), Seller may
sell all (but not less than all) of the Offered Interest to Buyer, on terms no
less favorable to Seller than those set forth in the Proposed Sale
Notice.  If the Drag Right or Tag Right shall have been exercised, the
sale of all (but not less than all) of the Other Member’s Interest pursuant
thereto shall close, concurrently, on the same terms (with the purchase price
for the Other Member’s Interest proportionately adjusted).  If the
sale is not consummated as provided in this Section 6.4(c), Seller may not
Transfer the Offered Interest, except after again complying with this Section 6.4 or otherwise in
compliance with the terms hereof.

     

    
      
        
        

      

      
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    6.5           Shot Gun
Buy-Sell.  Either Member (“Offering Member”), at
any time after the second anniversary of the date hereof, may, by not less than
30 days’ notice to the other Member (“Notice Period”),
offer irrevocably to buy (“Buy Notice”) all (but
not less than all) of the other Member’s (“Electing Member”)
Interest or sell (“Sell Notice”) to
Electing Member all (but not less than all) of Offering Member’s Interest at a
price specified in the notice.  Offering Member’s notice shall state
that, instead of accepting Offering Member’s offer, Electing Member may, by
counter-notice given within the Notice Period, elect to purchase all (but not
less than all) of Offering Member’s Interest, in the case of a Buy Notice, or
sell to Offering Member all (but not less than all) of Electing Member’s
Interest, in the case of a Sell Notice, at the price specified in Offering
Member’s notice, proportionately adjusted.  Electing Member shall sell
its Interest to Offering Member, in the case of a Buy Notice, or buy Offering
Member’s Interest, in the case of a Sell Notice, unless, during the Notice
Period, Electing Member shall deliver to Offering Member a counter-notice, in
which case, Offering Member shall sell its Interest to Electing Member or buy
Electing Member’s Interest, as specified in the counter-notice.

     

    6.6           Closing.  The
closing of a sale of the Offered Interest pursuant to an accepted Notice Offer
under Section 6.4(b)
shall take place on the fifth day after delivery thereof, and the closing of a
sale pursuant to Section
6.5 shall take place on the 10th day after the earlier of expiration of
the Notice Period or Electing Member’s delivery of an acceptance of Offering
Member’s notice or a counter-notice, at 10:00 a.m., local time, at Company’s
principal office, or at such other place, date, and time as the Members party to
the transaction shall agree.  At the closing, the buying Member shall
pay to the selling Member the purchase price for the Interest being sold, in
cash, and the selling Member shall execute and deliver to the buying Member such
documents (including any amendment hereof) as the buying Member may reasonably
request to effect the Transfer.  In addition, the selling Member shall
release Company and the buying Member, and Company and the buying Member shall
release the selling Member, from any claim relating to this Agreement or the
Interest being sold.  Language to the effect that a purchase price for
an Interest is to be “proportionately adjusted” means that the purchase price
for such Interest shall bear the same ratio to the purchase price offered with
respect to the other Interest as the respective Percentages related to such
Interests bear to each other.

     

    6.7           Admission of Transferee as a
Member.  Upon a Transfer of an Interest or part thereof
pursuant to Section
6.2(a) or 6.4,
the transferee shall be admitted as a Member, and any reference herein to the
transferring Member shall thereafter refer to the transferee, to the extent of
the Interest transferred.  A Member shall cease to be such, upon
transfer of all of its Interest.

     

    6.8           Enforcement.  The
provisions of this Article
VI are an essential element in the ownership of an
Interest.  Company or any Member shall be entitled to require specific
performance of any such provision, including those requiring or prohibiting a
Transfer of all or a portion of its Interest.

     

    
      
        
        

      

      
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    ARTICLE
VII

    ACCOUNTING,
RECORDS AND REPORTING

     

    7.1           Books and
Records.

     

    (a)           Maintenance and
Access.  Company’s books and records shall be kept, and its
financial position and the results of operations compiled, in accordance with
Company’s United States generally accepted accounting principles and otherwise
in compliance with requirements applicable to a subsidiary of an issuer equity
securities of which are registered under the Exchange Act.  Company
shall maintain all of the following at its principal office, with copies
available at all times during normal business hours for inspection and copying
upon reasonable notice by any Member or its authorized representatives, for any
purpose reasonably related to the Interest of that Member:

     

    (i)           true
and full information regarding the status of the business and financial
condition of Company;

     

    (ii)           promptly
after becoming available, a copy of Company’s federal, state, and local income
tax returns for each Fiscal Year;

     

    (iii)           a
current list of the full name and last known business, residence, or mailing
address of each Member and Manager;

     

    (iv)           a
copy of this Agreement and the Certificate of Formation and all amendments
thereto; and

     

    (v)           true
and full information regarding the amount of cash and a description and
statement of the agreed value of any other property or services contributed or
agreed to be contributed by each Member, and the date on which each became a
Member.

     

    (b)           Confidential
Information. Notwithstanding Section 7.1(a), Company may
keep confidential from a Member any information that (i) the Board believes to
be in the nature of trade secrets, or other information disclosure of which the
Board in good faith believes is not in the best interest of Company or could
damage Company or its business, or (ii) Company is required by law or agreement
with a third party to keep confidential.

     

    7.2           Financial and Tax
Reports.

     

    (a)           Company
shall provide to the Members such financial reports as the Board shall
determine, and, in any case, shall provide to AEM such financial reports and
information as necessary for Harbin to comply with its reporting obligations
under the Exchange Act and applicable stock market rules.

     

    (b)           Company
shall cause to be prepared and duly and timely filed, at Company’s expense, all
tax returns required to be filed by Company, as determined by the
Board.  Within ninety (90) days after the end of each Fiscal Year,
Company shall send to each Member such information relating to Company as the
Board determines is necessary for the Member to complete its federal, state and
local income tax returns that include such Fiscal Year.

     

    
      
        
        

      

      
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    7.3           Accounts; Invested
Funds.  All Company funds shall be deposited in such Company
account or accounts as the Board shall determine and, in any case, shall not be
commingled with the funds of any other Person.  All withdrawals
therefrom shall be made upon checks signed by such Persons and in such manner as
the Board determines.  Temporary surplus funds may be invested in
commercial paper, time deposits, short-term government obligations or other
investments, as determined by the Board.

     

    7.4           Tax
Elections.  Except as otherwise expressly provided herein,
Company shall make such tax elections as the Board may determine, in its sole
discretion.

     

    7.5           Tax Matters
Partner.

     

    (a)           As
long as it qualifies as tax matters partner under the Code, AEM shall be the Tax
Matters Partner.  If there is no Tax Matters Partner, the Person
meeting the requirements for a tax matters partner under Code Section 6231(a)(7)
and designated by vote of Members owning a majority of the Percentages shall be
the Tax Matters Partner.

     

    (b)           The
Tax Matters Partner shall have all of the powers and authority of a tax matters
partner under the Code.  The Tax Matters Partner shall represent
Company at Company’s expense in connection with all administrative or judicial
proceedings by the Internal Revenue Service or any taxing authority and may
expend Company’s funds for professional services and costs associated
therewith.  The Tax Matters Partner shall provide to the Members
prompt notice of any communication to or from or agreements with a federal,
state, or local taxing authority regarding any Company tax return, including a
summary of the provisions thereof.

     

    7.6           Confidentiality.  All
Company books, records, financial statements, tax returns, budgets, business
plans, and projections, all other information concerning Company’s business,
affairs, and properties, and all of the terms and provisions of this Agreement
shall be held in confidence by each Member and Manager and their respective
Affiliates, subject to any obligation to comply with (i) any applicable law,
(ii) any rule or regulation of any legal authority or securities exchange, or
(iii) any subpoena or other legal process to make information available to the
Persons entitled thereto.  Each Member shall, and shall cause its
Affiliates to, maintain such confidentiality until such time, if any, as any
such confidential information either is, or becomes, published or a matter of
public knowledge (other than as a result of a breach of this Section 7.6 by such Member or
any of its Affiliates).

     

    ARTICLE
VIII

    DISSOLUTION
AND WINDING UP

     

    8.1           Dissolution.  Company
shall be dissolved, its assets disposed of, and its affairs wound up, upon the
first to occur of the following:

     

    (a)           the
Board’s determination to dissolve Company;

     

    
      
        
        

      

      
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    (b)           a
sale of all or substantially all of Company’s assets; or

     

    (c)           the
entry of a judicial decree of dissolution of Company pursuant to the
Act.

     

    8.2           Date of
Dissolution.  Company’s dissolution shall be effective on the
day on which the event occurs giving rise thereto, but Company shall not
terminate until its assets have been liquidated and distributed as provided
herein.  Notwithstanding a dissolution, prior to termination, the
business and the rights and obligations of the Members, as such, shall continue
to be governed by this Agreement.

     

    8.3           Winding
Up.  Upon the occurrence of any event specified in Section 8.1, Company shall
continue solely for the purpose of winding up its affairs in an orderly manner,
liquidating its assets, satisfying the claims of its creditors, and distributing
any remaining assets in cash or in kind, to the Members.  The Board
shall be responsible for overseeing the winding up and liquidation of Company
and shall cause Company to sell or otherwise liquidate all of Company’s assets,
except to the extent the Board determines to distribute any assets to the
Members in kind; discharge or make reasonable provision for all of the
liabilities of Company and all costs relating to the dissolution, winding up,
and liquidation and distribution of assets; establish such reserves as may be
reasonably necessary to provide for contingent liabilities of Company (for
purposes of determining the Capital Accounts of the Members, the amounts of such
reserves shall be deemed to be an expense of Company, and any subsequent
reduction in such reserves (other than on account of payment) shall be treated
as income); and distribute the remaining assets to the Members, in the manner
specified in Section
8.4.  The Board shall be allowed a reasonable time for the
orderly liquidation of Company’s assets and discharge of its liabilities, so as
to preserve and, upon disposition, maximize, to the extent possible, the value
of such assets.

     

    8.4           Liquidating
Distributions.  Company’s assets, or the proceeds from the
liquidation thereof, shall be applied in cash or in kind, in the following
order:

     

    (a)           to
creditors (including Members who are creditors (other than on account of their
Capital Accounts)) to the extent otherwise permitted by applicable law in
satisfaction of all Company liabilities and obligations (including expenses of
the liquidation, whether by payment or the making of reasonable provision for
payment thereof), other than liabilities for which reasonable provision for
payment has been made and liabilities for distribution to Members and former
Members under Section 18-601 of the Act;

     

    (b)           to
the establishment of such reserves for contingent liabilities, to be maintained
for such periods, as the Board shall deem reasonably necessary (other than
liabilities for which reasonable provision for payment has been made and
liabilities for distribution to Members and former Members under Section 18-601
of the Act); provided, however, that at the expiration of such period, any
balance shall be distributed in accordance with Sections 8.4(c) and
(d);

     

    (c)           to
Members and former Members in satisfaction of any liabilities for distributions
under Section 18-601 of the Act; and

     

    
      
        
        

      

      
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    (d)           to
the Members, in accordance with Section 6.5.

     

    8.5           No
Liability.  Notwithstanding anything herein to the contrary,
upon a liquidation within the meaning of Treasury Regulations §
1.704-1(b)(2)(ii)(g), if any Member has a deficit Capital Account balance (after
giving effect to all contributions, distributions, allocations and other Capital
Account adjustments for all Fiscal Years, including the Year in which such
liquidation occurs), neither that Member nor any Manager shall have any
obligation to make any contribution to the capital of Company, and the deficit
balance of that Member’s Capital Account shall not be considered a debt owed by
that Member or any Manager to Company or to any other Person for any purpose
whatsoever.

     

    8.6           Limitations on Payments Made
in Dissolution.  Each Member shall be entitled to look only to
the assets of Company for the return of that Member’s positive Capital Account
balance, and no Member or Manager shall have any personal liability
therefor.

     

    8.7           Certificate of
Cancellation.  Upon completion of the winding up of Company’s
affairs, Company shall file a Certificate of Cancellation of the Certificate of
Formation with the Delaware Secretary of State.  Company shall also
file such withdrawals of qualification to do business and take such other
actions in such jurisdictions as the Board determines are necessary or
appropriate to terminate the legal existence or qualification of
Company.

     

     

    ARTICLE
IX

    LIMITATION
OF LIABILITY; STANDARD OF CARE; INDEMNIFICATION

     

    9.1           Limitation of
Liability.  Company’s debts, obligations, and liabilities,
whether arising in contract, tort, or otherwise, shall be solely Company’s
debts, obligations and liabilities, and, no Member or Manager, solely in such
capacity, shall be obligated personally for any debt, obligation, or
liability.  Notwithstanding anything contained herein to the contrary,
Company’s failure to observe any formality or requirement relating to the
exercise of its powers or the management of its business and affairs shall not
be grounds for imposing personal liability on any Member for any Company debt,
obligation, or liability.

     

    9.2           Other Activities of Members,
Managers.

     

    (a)           No
Member, while a Member or for one year after it or he shall cease to be such
(the “Restricted Period”) shall, anywhere in China or in the United States of
America, engage or agree to engage in the Business, directly or indirectly, as
principal, partner, member, agent, employee, independent contractor,
stockholder, or otherwise, except through Company.

     

    (b)           No
Member or Manager is entitled to participate or otherwise have any interest in
any other activity, enterprise, or project of another Member or Manager, unless
otherwise agreed between them, or, subject to Section 9.2(a), shall incur
any liability to Company or any other Member or Manager from engaging in any
other activity, enterprise, or project or be obligated to offer any prospective
activity, enterprise, project or opportunity to Company.

     

    
      
        
        

      

      
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    (c)           Nothing
in this Agreement shall prevent a Manager from engaging or participating in any
other activity, enterprise, or project, regardless whether related to the
Business or competitive therewith or relieve any Manager of any obligation to
Company under any other agreement between such Manager and Company.

     

    9.3           Standard of
Care.  No Member or Manager shall have any personal liability
whatsoever to Company, any Member, or any Affiliate of Company or a Member, on
account of such Member’s or Manager’s acts or omissions in connection with the
Business and Company’s affairs, so long as such Person acts in good faith for a
purpose that the Person reasonably believed to be in, or not opposed to,
Company’s best interests; provided, however, that nothing
contained herein shall protect any such Person against any liability to which
such Person would otherwise be subject if a judgment or other final adjudication
adverse to such Person establishes (a) that his acts were committed in bad faith
or deliberately dishonest and material to the cause of action so adjudicated, or
(b) that such Person personally gained in fact a financial profit or other
advantage to which such Person was not legally entitled.

     

    9.4           Indemnification.  Company
shall indemnify and hold harmless, to the fullest extent permitted by applicable
law, any Person made, or threatened to be made, a party to an action or
proceeding, whether civil, criminal, or investigative (a “proceeding”),
including an action by or in the right of Company, by reason of the fact that
such Person was or is a Member (including in the capacity of the Tax Matters
Partner) or Manager, from and against all judgments, fines, amounts paid in
settlement, and reasonable expenses, including expenses of investigation and
accounting and attorneys’ fees (“Litigation Costs”),
incurred as a result of such proceeding, or any appeal therein, if (a) such
Person acted in accordance with the standard of care prescribed in Section 9.3, and (b) in a
criminal proceeding, in addition, such Person had no reasonable cause to believe
that his conduct was unlawful; provided, however, that nothing
contained herein shall permit any Person to be indemnified or held harmless if
and to the extent the Litigation Cost, sought to be indemnified or held harmless
against results from a judgment or other final adjudication adverse to such
Person that establishes (i) that his acts were committed in bad faith or were
deliberately dishonest and  material to the cause of action so
adjudicated, or (ii) that such Person personally gained in fact a financial
profit or other advantage to which such Person was not legally
entitled.  The termination of any such civil or criminal proceeding by
judgment, settlement, conviction, or upon a plea of nolo contendere, or its
equivalent, shall not in itself create a presumption that any such Person did
not act in good faith, for a purpose that he reasonably believed to be in, or
not opposed to, the best interests of Company, or that he had reasonable cause
to believe that his conduct was unlawful.  Company’s indemnification
obligations hereunder shall survive Company’s dissolution.  Each
indemnified Person shall have a claim against the net assets of Company for
payment of Litigation Costs from time to time due hereunder, which amounts shall
be paid or properly reserved for prior to the making of Distributions to the
Members.

     

    9.5           Contract Right;
Expenses.  The right to indemnification conferred in this ARTICLE IX shall be a contract
right. Company may advance Litigation Costs incurred by any Person referred to
in Section 9.4 any such
proceeding, in advance of its final disposition, provided that such Person
agrees to repay any amount that it is ultimately determined such Person is not
entitled to receive under this ARTICLE IX.

     

    
      
        
        

      

      
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    9.6           Indemnification of Employees
and Agents.  In addition to the indemnification and expense
advancement provided in Sections 9.4 and 9.5, the Board may authorize
indemnification and advancement of expenses to any employee, independent
contractor, or agent of Company or to their officers, directors, shareholders,
partners, members, managers, employees, independent contractors, or agents, up
to the extent same might be provided pursuant to Sections 9.4 and 9.5.

     

    9.7           Nonexclusive
Right.  The right to indemnification and expense advancement
conferred in this ARTICLE
IX shall not be exclusive of any other right that any Person may have or
hereafter acquire under any statute or agreement, or under any insurance policy
obtained for the benefit of any indemnified Person.

     

    9.8           Severability.  If
any provision of this ARTICLE
IX is determined to be unenforceable in whole or in part, such provision
shall nonetheless be enforced to the fullest extent permissible.

     

    9.9           Insurance.  In
the discretion of the Board, Company may purchase and maintain insurance on
behalf of an indemnified Person, including for a reasonable period after a
Person ceases to hold the position with respect to which indemnification or
expense advancement is authorized or required hereunder, against Litigation
Costs.  In addition, in the discretion of the Board, Company may
purchase and maintain insurance on behalf of any other Person who is or was an
employee, independent contractor, or agent of Company, or their officers,
directors, shareholders, partners, members, managers, employees, independent
contractors, or agents, whether or not Company would be required to indemnify
that Person against liability under the provisions of ARTICLE IX or under applicable
law.

     

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    ARTICLE
X

    DEFINITIONS

     

    When used
in this Agreement, the following terms have the following meanings:

     

    10.1           “Act” means the
Delaware Limited Liability Company Act, 6 Del. Code § 18-101 et
seq.

     

    10.2           “Adjusted Capital
Account” of a Member means the Capital Account of that Member, increased
by any amount that such Member is expressly obligated to restore pursuant to an
agreement with Company (including any additional Contribution required by the
second sentence of Section
2.1(a)) or is deemed to be obligated to restore pursuant to Treasury
Regulations § 1.704-1(b)(2)(ii)(c) or the penultimate sentence of Treasury
Regulations § 1.704-2(g)(1) or 1.704-2(i)(5), and reduced by the items described
in Treasury Regulations § 1.704-1(b)(2)(ii)(d)(4), (5) or (6).

     

    10.3           “Affiliate” of another
Person means (a) a Person directly or indirectly (through one or more
intermediaries) Controlling, Controlled by, or under common Control with that
other Person; (b) any officer, director, partner (other than a limited partner),
or member (other than a member having no management authority), of that other
Person; and (c) for purposes of Section 4.3(b), a Person (i)
owning beneficially, as meant in Rule 13d-3 under the Exchange Act, securities
entitling such Person to cast 10% or more of the votes for election of directors
or equivalent governing authority of that other Person, (ii) entitled to be
allocated or receive 10% or more of the profits, losses, or distributions of
that other Person, or (iii) who is a spouse, parent, child, sibling,
grandparent, grandchild, aunt, uncle, niece, nephew, mother-in-law,
father-in-law, sister-in-law, or brother-in-law of an Affiliate of that other
Person or that is a trust for the benefit of an Affiliate of that other Person
or of which an Affiliate of that other Person is a officer, director, partner
(other than a limited partner), or member (other than a member having no
management authority), or trustee.

     

    10.4           “Agreement” means this
Limited Liability Company Agreement of Company.

     

    10.5           “AEM” means Advanced
Electric Motors, Inc., a Delaware corporation.

     

    10.6           “Board” means the
Board of Managers, as defined in Section 4.1(b).

     

    10.7           “Board Consent” is
defined in Section
4.1(a).

     

    10.8           “Board Manager” is
defined in Section
4.2(a).

     

    10.9           “Business” means each
of the research, design, development, distribution, maintenance, manufacture,
marketing, modification, programming, repair, and sale of servo controllers, and
any circuit, component, firmware, hardware, part and software
therefor.

     

    
      
        
        

      

      
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    10.10           “Budget” means the
operating budget of Company for a Fiscal Year that is prepared and approved in
accordance with Section
4.5.

     

    10.11           “Capital Account” of a
Member means the capital account of that Member determined in accordance with
Treasury Regulations § 1.704-1(b)(2)(iv) and this Section 10.11.  The
Capital Accounts shall be adjusted by the Board upon an event described in
Treasury Regulations § 1.704-1(b)(2)(iv)(f)(5) in the manner
described in Treasury Regulations § 1.704-1(b)(2)(iv)(f) and (g) if the Board determines
that such adjustments are necessary or appropriate to reflect the relative
economic interests of the Members in Company; provided, however, that Capital
Accounts shall not be marked to market in connection with the additional
Contribution required by the second sentence of Section 2.1(a).

     

    10.12           “Certificate of
Formation” means the Certificate of Formation of Company filed under the
Act with the Delaware Secretary of State.

     

    10.13           “Code” means the
Internal Revenue Code of 1986.

     

    10.14           “Company” is defined
in the preamble.

     

    10.15           “Company Minimum Gain”
with respect to any Fiscal Year means the “partnership minimum gain” of Company
with respect to such Fiscal Year as defined in Treasury Regulations §
1.704-2(b)(2) and determined in accordance with Treasury Regulations § 1.704
2(d).

     

    10.16           “Contribution” of a
Member means the amount of money and the gross Fair Market Value on the date
contributed of property as determined by the Board (net of any liability assumed
by Company or to which the property is subject), contributed to the capital of
Company by such Member.

     

    10.17           “Control” of a Person
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise.  “Controlled
by,” “Controlling” and “under common Control with” have correlative
meanings.

     

    10.18           “Cumulative Tax” for a
Member with respect to a Fiscal Year means the Cumulative Tax for the Member
with respect to the preceding Fiscal Year plus the federal, state and local
income tax that would be paid by a hypothetical individual member of Company,
who is a citizen of the United States residing and domiciled in Detroit,
Michigan metropolitan area.  with the same Interest as the Member, on
the taxable income included in Profit allocated to such Member pursuant to Section 5.2 for such Fiscal
Year, as determined by the Board, computed by assuming that all such Profit and
income is allocable solely to Detroit Michigan, that the individual pays income
tax on such amount at the maximum marginal income tax rate in effect for such
Period based on the type of income (without regard to phase outs, alternative
taxes and the like and without regard to any other tax attribute of the Member),
but that such state and local income tax is currently deductible for federal
income tax purposes, and by taking into account such other assumptions as may be
determined by the Board, which apply to all Members.  Cumulative Tax
with respect to any period preceding the formation of Company is deemed to be
zero.

     

    
      
        
        

      

      
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    10.19           “Distributable Cash”
at any time means that portion of the cash then on hand or in accounts of
Company at a bank or other financial institution that the Board determines is
available for distribution to the Members at such time, taking into account (a)
the amount of cash required for the payment of all current expenses,
liabilities, and obligations of Company (whether for expense items, capital
expenditures, improvements, retirement of indebtedness, or otherwise) and (b)
the amount of cash that the Board deems necessary or appropriate to establish
reserves for the payment of future expenses, liabilities, obligations, capital
expenditures, improvements, retirements of indebtedness, operations, and
contingencies, known or unknown, liquidated or unliquidated, including
liabilities that may be incurred in litigation and liabilities undertaken
pursuant to the indemnification provisions of this Agreement.

     

    10.20           “Distribution” means
the transfer of money or property by Company to one or more Members with respect
to their respective Interests, without separate consideration.

     

    10.21           “Exchange Act” means
the Securities Exchange Act of 1934.

     

    10.22           “Fair Market Value” of
property means the amount that would be paid for such property in cash at the
closing by a hypothetical willing buyer to a hypothetical willing seller, each
having knowledge of all relevant facts and neither being under a compulsion to
buy or sell, as determined by the Board.

     

    10.23           “Fiscal Year” means
Company’s taxable year, which shall be the taxable year ended December 31, or
such other taxable year as may be selected by the Board in accordance with
applicable law.

     

    10.24           “Harbin” means Harbin
Electric, Inc., a Nevada corporation.

     

    10.25           “Interest” means a
Member’s overall interest as a Member of Company, or any class, if applicable,
including the Member’s interest in Profit, Loss, special allocations,
Distributable Cash or other Distributions, rights to vote or participate in the
management of Company, and rights to information concerning the business and
affairs of Company.

     

    10.26           “Interest Rate” means
a rate of interest equal to three percentage points (3%) above the prime rate of
interest as reported in the “Money Rates Section” of The Wall Street Journal
(New York edition) from time to time, but not more than the maximum rate
permitted by applicable law.

     

    10.27           “Manager” means each
Board Manager or Officer designated as such pursuant to Section 4.2, until such Person
ceases to be a Manager pursuant to this Agreement or a non-waivable provision of
the Act.  Each Manager is a “manager,” as meant in the
Act.

     

    10.28           “Member” means a
Person admitted to Company as a Member pursuant to the provisions of this
Agreement, in each case until such Person ceases to be a Member pursuant to this
Agreement or a non-waivable provision of the Act.  Each Member is a
“member,” as meant in the Act.

     

    10.29           “Member Minimum Gain”
with respect to a Fiscal Year means the “partner nonrecourse debt minimum gain”
of Company with respect to such Fiscal Year as defined in Treasury Regulations §
1.704-2(i)(2) and determined in accordance with Treasury Regulations §
1.704-2(i)(3).

     

    
      
        
        

      

      
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    10.30           “Member Nonrecourse
Deductions” with respect to a Fiscal Year means the “partner nonrecourse
deductions” of Company with respect to such Fiscal Year as defined in Treasury
Regulations § 1.704-2(i)(1) and determined in accordance with Treasury
Regulations § 1.704-2(i)(2).

     

    10.31           “Nonrecourse
Deductions” with respect to a Fiscal Year means the “nonrecourse
deductions” of Company with respect to such Fiscal Year as defined in Treasury
Regulations § 1.704-2(b)(1) and determined in accordance with Treasury
Regulations § 1.704-2(c).

     

    10.32           “Officer” means any
natural person designated as such pursuant to Section 4.2(b).

     

    10.33           “Percentage” with
respect to a Member means the percentage set forth on Schedule A for such Member, as
the same may be adjusted pursuant to this Agreement.

     

    10.34           “Person” means any
natural person or entity, association, company, corporation, joint stock
company, joint venture, limited liability company, organization, partnership
(including a general partnership, limited partnership and limited liability
partnership), trust, real estate investment trust, government (including any
agency, department, bureau, board, division and instrumentality thereof),
nation, state, or liquidator, receiver, or trustee.

     

    10.35           “Profit” and “Loss” means, with
respect to a Fiscal Year, the taxable income and taxable loss, as the case may
be, of Company with respect to such Fiscal Year, as determined by the Board in
accordance with federal income tax principles, including items required to be
separately stated, taking into account income that is exempt from federal income
taxation, items that are neither deductible nor chargeable to a capital account
and rules governing depreciation and amortization, except that in computing
taxable income or taxable loss, the tax “book” value of an asset will be
substituted for its adjusted tax basis if the two differ, and any gain, income,
deductions or losses specially allocated under Section 5.3 or 5.4 shall be excluded from the
computation.  Any adjustment pursuant to Treasury Regulations §
1.704-1(b)(2)(iv)(f)
and (g) shall be
treated as Profit or Loss from the sale of property.  To the extent an
adjustment to the adjusted tax basis of any Company asset pursuant to Code
Section 734(b) or 743(b) is required to be taken into account in determining
Capital Accounts pursuant to Treasury Regulations § 1.704-1(b)(2)(iv)(m)(2) or (4) as a result of a
distribution to a Member in complete liquidation of its Interest, the amount of
such adjustment to Capital Accounts shall be treated as an item of gain (if the
adjustment increases the basis of the asset) or loss (if the adjustment reduces
such basis) and such gain or loss shall be specially allocated to the Members in
accordance with their respective Percentages if Treasury Regulations §
1.704-1(b)(2)(iv)(m)(2)
applies, and to the Member to whom such distribution was made in the event
Treasury Regulations § 1.704-1(b)(2)(iv)(m)(4) applies.

     

    10.36           “Shelton” means
Shelton Technology, LLC, a Michigan limited liability company.

     

    10.37           “Tax Matters Partner”
means the Person designated pursuant to Section 8.5.1.

     

    
      
        
        

      

      
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    10.38           “Transfer” means a
sale, assignment, transfer, other disposition, pledge, hypothecation or other
encumbrance, whether direct or indirect, whether voluntary, involuntary or by
operation of law, and whether for value or not, including any transfer by gift,
devise, intestate succession, sale, operation of law, upon the termination of a
trust, as a result of or in connection with any property settlement or judgment
incident to a divorce, dissolution of marriage or separation, by decree of
distribution or other court order.

     

    10.39           “Treasury Regulations”
means the regulations promulgated by the United States Treasury Department
pertaining to the United States federal income tax.

     

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    ARTICLE
XI

    MISCELLANEOUS

     

    11.1           Entire
Agreement.  This Agreement sets forth the entire agreement of
the parties with respect to the subject matter hereof.  No provision
of this Agreement may be explained or qualified by any prior or contemporaneous
understanding, negotiation, discussion, conduct, or course of conduct, and,
except as otherwise expressly stated herein, there is no condition precedent to
the effectiveness of any provision hereof.  No party has relied on any
representation, warranty, or agreement of any Person in entering this Agreement,
except those expressly stated herein.

     

    11.2           Counterparts; Facsimile
Signatures.  This Agreement may be executed in counterparts,
each of which shall constitute an original, but all of which shall constitute
one agreement.  This Agreement shall become effective upon delivery to
each party of an executed counterpart or the earlier delivery to each party of
original or signature pages transmitted electronically that together (but need
not individually) bear the signatures of all other parties.

     

    11.3           Further
Assurances.  Each party shall execute and deliver such
documents and take such action, as may reasonably be considered within the scope
of such party’s obligations hereunder, necessary to effectuate the transactions
contemplated by this Agreement.

     

    11.4           Notices.  Any
notice hereunder shall be sent in writing, addressed as specified below, and
shall be deemed given:  if by hand or recognized courier service, by
4:00PM on a business day, addressee’s day and time, on the date of delivery, and
otherwise on the first business day after such delivery; if by telecopier, on
the date that transmission is confirmed electronically, if by 4:00PM on a
business day, addressee’s day and time, and otherwise on the first business day
after the date of such confirmation; or five days after mailing by certified or
registered mail, return receipt requested.  Notices shall be addressed
to the respective parties as follows (excluding telephone numbers, which are for
convenience only), or to such other address as a party shall specify to the
others in accordance with these notice provisions (telephone numbers are for
convenience only):

     

    To AEM,
as set forth on Schedule
A,

     

    with a
copy to

     

    ATTN:
Christy Shue

    20
Ramblewood Road, Shoreham, NY 11786

    Telecopier:
631-849-5224

    Telephone:
631-312-8612

     

    To
Shelton, as set forth on Schedule A,

     

    with a
copy to

     

    
      
        
        

      

      
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    ATTN:
Shaotang Chen

    1685 W.
Hamlin Road, Rochester Hills, MI 48309

    Telecopier:
248-233-6725

    Telephone:
248-703-2091

     

    11.5           Amendments; Waivers;
Remedies.

     

    (a)           Except
pursuant to Sections 2.2,
2.3, and 11.5(b),
this Agreement cannot be amended, except by a writing signed by each party, or
terminated orally or by course of conduct.  No provision hereof can be
waived, except by a writing signed by the party against whom such waiver is to
be enforced, and any such waiver shall apply only in the particular instance in
which such waiver shall have been given.

     

    (b)           Notwithstanding
the foregoing, the Board may amend this Agreement without the consent of the
Members (i) to reflect valid changes in the Members or their Interests, (ii) to
reflect permitted changes in accordance with the terms of this Agreement, or
(iii) to clarify any ambiguity herein or to appropriately adjust any mechanics
or procedures set forth herein, so long as the rights of the Members are not
materially and adversely prejudiced.

     

    (c)           Neither
any failure or delay in exercising any right or remedy hereunder or in requiring
satisfaction of any condition herein nor any course of dealing shall constitute
a waiver of or prevent any party from enforcing any right or remedy or from
requiring satisfaction of any condition.  No notice to or demand on a
party waives or otherwise affects any obligation of that party or impairs any
right of the party giving such notice or making such demand, including any right
to take any action without notice or demand not otherwise required by this
Agreement.  No exercise of any right or remedy with respect to a
breach of this Agreement shall preclude exercise of any other right or remedy,
as appropriate to make the aggrieved party whole with respect to such breach, or
subsequent exercise of any right or remedy with respect to any other
breach.

     

    (d)           Except
as otherwise expressly provided herein, no statement herein of any right or
remedy shall impair any other right or remedy stated herein or that otherwise
may be available.

     

    11.6           Construction of Certain
Terms and References; Captions.

     

    (a)           In
this Agreement:

     

    (i)           References
to particular sections and subsections, schedules, or exhibits not otherwise
specified are cross-references to sections and subsections, schedules, and
exhibits of this Agreement;

     

    (ii)           The
words “herein,” “hereof,” “hereunder,” and words of similar import refer to this
Agreement as a whole and not to any particular provision of this Agreement, and,
unless the context requires otherwise, “party” means a party signatory hereto;
provided that, for purposes of Section 11.12, “party”
includes each Manager;

     

    
      
        
        

      

      
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    (iii)           Any
use of the singular or plural, or the masculine, feminine, or neuter gender,
includes the others, unless the context otherwise requires; “including” means
“including without limitation;” “or” means “and/or;” “any” means “any one, more
than one, or all;” and, unless otherwise specified, any financial or accounting
term has the meaning of the term under United States generally accepted
accounting principles; and

     

    (iv)           Unless
otherwise specified, any reference to any agreement (including this Agreement),
instrument, or other document includes all schedules, exhibits, or other
attachments referred to therein, and any reference to a statute or other law
includes any rule, regulation, ordinance, or the like promulgated thereunder, in
each case, as amended, restated, supplemented, or otherwise modified from time
to time.

     

    (b)           Captions
are not a part of this Agreement, but are included for convenience,
only.

     

    11.7           Arms’-length Bargaining; No
Presumption Against Drafter.  This Agreement has been
negotiated at arms’-length by parties of equal bargaining strength, each
represented by counsel and having participated in the drafting of this
Agreement.  No presumption in favor of or against any party in the
construction or interpretation of this Agreement or any provision hereof shall
be made based upon which Person might have drafted it.

     

    11.8           No
Agency.  This Agreement does not give any party the power to
bind any other Member, and no Member shall represent otherwise.

     

    11.9           No Assignment or
Delegation.  No party may assign any right or delegate any
obligation hereunder, including by merger, consolidation, operation of law, or
otherwise, except as set forth in Article VI.  Any
purported assignment or delegation without such consent shall be void, in
addition to constituting a material breach of this Agreement.

     

    11.10           Transaction
Expenses.  Except as otherwise expressly provided herein, each
party shall pay the fees and expenses of its attorneys, accountants, or
financial or other advisors or otherwise incurred by such party in connection
with the negotiation, preparation, execution, and delivery of this
Agreement.

     

    11.11           Governing
Law.  This Agreement shall be governed by and construed,
interpreted, and enforced in accordance with the laws of the State of Delaware,
without regard to choice or conflict of laws principles that would result in the
application of the substantive laws of any other jurisdiction.

     

    11.12           Disputes.

     

    (a)           Except
as otherwise expressly provided herein, in the event of any dispute, claim or
controversy (collectively “dispute”) between or
among any Members or Managers arising out of or relating to this Agreement or
the Certificate of Formation, whether in contract, tort, equity or otherwise,
and whether relating to the meaning, interpretation, effect, validity,
performance, or enforcement of this Agreement or the Certificate of Formation,
or the arbitrability of the dispute, that cannot be resolved by the parties,
such dispute shall be resolved by arbitration proceeding conducted under the
auspices of the American Arbitration Association (or any like organization
successor thereto) (collectively, the “AAA”), in New York,
New York.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

       

    

    (b)           This
Section 11.11 shall not
prevent any party from seeking temporary or preliminary relief in a court with
respect to any dispute, including to enforce this Section 11.12, but the final
determination of such dispute shall be made by the arbitrators, who shall have
authority to grant equitable relief.  Neither shall any Member or
Manager seek, nor shall any Member or Manager be liable for, punitive or
exemplary damages in contract, tort, equity, or otherwise, with respect to any
breach (or alleged breach) of this Agreement or any provision hereof or any
matter otherwise relating hereto or arising in connection herewith.

     

    (c)           The
arbitration proceeding shall be conducted under the commercial arbitration rules
(formal and informal) of the AAA in as expedited a manner as is then permitted
by such rules.  Both the foregoing agreement of the parties to
arbitrate any and all such disputes, and the results, determinations, findings,
judgments or awards rendered through any such arbitration shall be final and
binding on the parties and may be enforced in any court of competent
jurisdiction.  Each Member and Manager irrevocably consents and
submits to the jurisdiction of the courts of the State of New York and the U.S.
District Court for the Southern District of New York for enforcement of the
award.

     

    (d)           The
costs of the arbitration proceeding and any proceeding in court to confirm or to
vacate any arbitration award, as applicable, shall be borne by the unsuccessful
party or, if neither party is successful, in such proportion as the arbitrator
determines to be equitable.  Each party will bear its own legal fees
and expenses.

     

    (e)           Each
party waives jury trial in respect of any dispute or the enforcement of any
judgment or award with respect thereto.

     

    (f)           Each
party irrevocably consents to service of process or notices in respect of
arbitration, by any means authorized in Section 11.4, with respect to
any dispute.

     

    11.13           Waiver of Dissolution
Rights.  The Members acknowledge and agree that irreparable
damages would occur if any Member should bring an action for judicial
dissolution of Company.  Accordingly, each Member hereby waives and
renounces any right such Member may have to seek a judicial dissolution of
Company or to seek the appointment by a court of a liquidator for
Company.  Each Member further waives and renounces any alternative or
additional rights that otherwise may be provided to such Member by applicable
law upon the withdrawal or resignation of such Member, and agrees that the terms
and provisions of this Agreement shall govern such Member’s rights and
obligations upon the occurrence of any such event.

     

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OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the Members have executed this Agreement, effective as of the
date first written above.

     

    
      
        	 	
                ADVANCED
      ELECTRIC MOTORS, INC.

              	 
	 	 	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	 	Name:
      Tianfu Yang	 
	 	 	Title:   Chairman
      & CEO	 
	 	 	 	 
	 	 	 	 

      

      
        	 	SHELTON TECHNOLOGY
      LLC	 
	 	 	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	 	Name:
      Julie Chen (fka: Julie Xie)	 
	 	 	Title:
      Managing Director	 
	 	 	 	 

      

    

                                                    

    
      
        
        

      

      
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    SCHEDULE
A

     

    NAMES,
ADDRESSES, CONTRIBUTIONS, AND

     

    PERCENTAGES
OF THE MEMBERS

     

    AS
OF JULY 1, 2010

     

    
      	
              Name,
      Address, Telecopier

              Number and Telephone
      Number

            	
               

              Contribution

            	
               

              Percentage

            
	 	 	 
	
              Advanced
      Electric Motors, Inc.

              No.
      9 Ha Ping Xi Lu,

              Harbin
      Kai Fa Qu

              Harbin,
      China 150060

              Telecopier:
      86-0451-8611-6769

              Telephone:
      86-0451-8611-6787

              ATTN:
      Tianfu Yang

            	
              All
      of the assets (subject to all of the liabilities) of Company immediately
      prior to the date hereof, which the parties agree have a Fair Market Value
      of $3,000,000 ($1,000,000 to be paid by AEM to AAG before December 31,
      2011)

            	
              51%

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              Shelton
      Technology, LLC

              1685
      W. Hamlin Road

              Rochester
      Hills, MI 48309

              Telecopier:
      248-233-6725

              Telephone:
      248-703-2091

              ATTN:  Julie
      Chen

               

              Shelton
      Personnel: Julie Chen

              (Only
      Member of Shelton)

            	
              Shelton
      designs of precision servo motor controllers for industrial automation and
      Shelton’s customer accounts. Valued at $2,882,353

            	
              49%

            
	 
      	 
      	 
      
	
              Total

            	 
      	
              100%

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
A

    

    

    INTERLECTUAL
PROPERTY RIGHTS AGREEMENT

    

    I enter
this agreement in consideration of compensation paid for services I perform for
Advanced Automation Group LLC (“AAG” or the “Company”), a Delaware limited
liability company, either as an employee or otherwise under
contract.

    

    I assign
to the Company all rights to all patents, utility models, industrial designs,
trademarks, service marks, semiconductor chip mask works and copyrights on all
writings, designs, inventions, and works I conceive, make, invent or suggest
during the term of such services and that are in connection with my work or are
otherwise related to the business of the Company.

    

    I will
promptly disclose such writings, designs, inventions and works to
AAG.

    

    At the
Company’s request, whether during or after the term of such services, I will
sign patent applications and other lawful papers that AAG considers helpful to
secure and enforce such rights. AAG will bear all expense related to such
activities.

    

    This
agreement does not apply to an invention that I developed entirely on my own
time without using AAG’s equipment, supplies, facilities, or trade secret
information except for those inventions that either related at the time of
conception or reduction to practice of the invention directly to AAG’s business
or to actual or demonstrably anticipated research or development of AAG, or
result from any work performed by me for AAG. This agreement does not affect
AAG’s ownership of rights in works made for hire.

    

    I will
protect AAG, its customer and supplier business and technical information and
other proprietary information created or obtained in the course of my
services.

    

    I will
not disclose to AAG, or use in performing services for AAG, any of my prior
inventions that AAG is not entitled to use, or any proprietary information
belonging to others (including my prior employers) unless I have their prior
written approval.

    

    I will
return to AAG, at the time any services for AAG cease or upon any earlier
request, all documents and other materials containing any AAG, its customer or
supplier business or technical information or other proprietary information
created or obtained in the course of my services. I will not engage in any
outside activity that would involve the use of disclosure of any AAG, its
customer or supplier business or technical information or other proprietary
information created or obtained in the course of my services unless I have prior
written approval from an AAG officer. This obligation is not changed by
termination of my services for AAG.

    

    This
agreement replaces any prior agreement regarding this subject matter and is
binding on my executors, administrators, heirs, legal representatives and
assigns. This agreement may be modified only by another written agreement, or by
a written endorsement on this agreement, signed by AAG and me.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	DATE:___________________	
              EMPLOYEE:________________________

              
                (Printed
      Name)

                 

                 

                EMPLOYEE: _________________________

                (Signature)

                 

                 

              

            
	DATE:___________________	
              Advanced
      Automation Group, LLC

               

              AAG REPRESENTATIVE:___________________

              (Printed Name)

               

               

              AAG REPRESENTATIVE:____________________

              (Signature)

               

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
B

    

    EMPLOYMENT
AGREEMENT

    

    Employment
Agreement (“Agreement”) effective as of April 9, 2007 by and between Advanced
Automation Group LLC (the “Company” or “Employer”), a Delaware limited liability
company, and Shaotang Chen (the “Executive”) (collectively the Company and the
Executive are referred to as the “Parties”).

    

    INTRODUCTION

    

    WHEREAS, the Employer and the
Executive wish to enter into this Agreement to set forth the terms and
conditions of the Executive’s employment by the Company.

    

    Accordingly, in consideration
of the mutual covenants and agreement set forth herein and the mutual benefits
to be derived herefrom, and intending to be legally bound hereby, the Company
and the Executive agree as follows:

    

    1. Employment

    

    1.1 Duties. The Company shall
employ the Executive on the terms and conditions set forth in this Agreement, as
Research & Development Director (“R&D Director”). As R&D Director,
Executive will be responsible for managing research and development of new
generation of precision motor servo controllers for industrial automation. The
Executive accepts such employment with the Company and shall perform and fulfill
such other duties as are assigned to him hereunder consistent with his status as
a senior executive of the Company, devoting his best efforts and substantially
all of his professional time and attention (which shall constitute no less than
forty (40) working hours per week) to accomplish the performance and fulfillment
of his duties hereunder and to the advancement of the best interests of the
Company, subject only to the direction, approval, and control of the Company’s
specific directives of the Board of Managers of the Company and Executive’s
superiors (collectively, “Senior Management”).

    

    1.2 Place of Performance. In
connection with his employment by the Company, the Executive shall be based in
the Detroit, Michigan metropolitan area, except for required travel on Company
business.

    

    2. Term of
Employment.

    

    The term
of employment of the Executive shall begin on the date entered above and shall
continue for eighteen (18) months, unless earlier terminated as set forth
herein. The Executive understands and agrees that neither his job performance
nor promotions, commendations, bonuses or the like from the Company give rise to
or in any way serve as the basis for modification, amendment or extension, by
implication or otherwise, of his term of employment with the
Company.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    3. Compensation.

    

    3.1 Base Salary. During the term
of this Agreement the Executive shall receive a minimum annual salary (the “Base
Salary”) payable in installments at such times as the Company customarily pays
its other senior executive employees and calculated as follows:

    

    3.1.1 The
Base Salary to be paid to Executive shall be $95,000 on annualized
basis;

    

    3.1.2 The
Executive’s Base Salary will be subject to review and adjustments will be made
based upon the Company’s normal performance review practices.

    

    3.2 Bonus. During the term of this
Agreement, the Executive may receive a bonus, which the Compensation Committee
of the Company’s Board of Managers shall determine annually and which shall be
based on the same criteria and/or formulae as are used in determining the
bonuses and non-salary distributions paid to similarly situated
employees.

    

    3.3 Health Insurance and Other Benefits.
During the term of this Agreement, the Executive shall be provided all
employee benefits provided by the Company to its management and all other
Company salaried employees, including without limitation, all medical insurance
and life insurance plans or arrangements and shall be entitled to participate in
all pension, profit sharing, stock option and any other employee benefit plan or
arrangement established and maintained by the Company, all subject, however, to
the Company rules and policies then in effect regarding participation therein.
During the term of this Agreement, the benefits provided to Executive, as
described in the preceding sentence, shall not be reduced except in accordance
with the general reduction of such benefits applicable to all salaried employees
generally, but then only to the extent that such benefits are reduced for such
other salaried employees.

    

    4. Reimbursement of
Expenses.

    

    The
Executive shall be reimbursed for all items of travel, entertainment and
miscellaneous expenses which the Executive reasonably incurs in connection with
the performance of his duties hereunder, provided that (a) all expenses over
$500 are approved by Senior Management prior to being incurred, (b) the
Executive submits to the Company on proper forms provided by the Company such
statements and other evidence supporting such expenses as the Company may
reasonably require and (c) such expenses meet the Company’s policy concerning
such matters.

    

    5. Vacations.

    

    The
Executive shall be entitled to not less than three (3) weeks of paid vacation in
any calendar year (prorated in any Year during which the Executive is employed
hereunder for less than the entire Year).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    6. Termination of
Employment.

    

    6.1 Severance upon Termination without
Cause. If the Executive’s employment is terminated by the Company without
Cause (as defined below) (the date of termination is referred to as the
“Termination Date”), then the Company shall pay the Executive in lieu of other
damages, an amount (the “Severance Payments”) equal to his then current Base
Salary payable in installments at the same time the Company pays salary to its
other senior executive employees for four (4) weeks (the “Severance Period”).
The Company shall have no liability to make any Severance Payments as provided
for in this paragraph unless (i) the Executive executes a Separation Agreement
and General Release in a form satisfactory to the Company, and (ii) Executive
complies with all provisions in Section 8 (Restrictive Covenants). In addition,
(i) any Company stock options not vested at the time of termination shall
immediately terminate and (ii) the Company shall maintain during the Severance
Period all employee benefit plans and programs which the Executive participated
in immediately prior to such termination other than bonus, Commission, incentive
compensation and similar plans based on performance, provided Executive’s
participation is permissible under the general terms and provisions of such
plans. If Executive is terminated for Cause, he shall receive only those amounts
earned but not distributed under the relevant plan, program or practice of the
Company.

    

    6.2 Voluntary Termination; Termination
for Cause. If Executive’s employment with the Company is terminated for
“Cause” by the Company (as defined below) or if the Executive voluntarily
terminates his employment with the Company at any time, then (i) all payments of
compensation by the Company to Executive hereunder will terminate immediately
(except as to amounts already earned), and (ii) Executive will only be eligible
for severance benefits in accordance with the Company’s established policies as
then in effect.

    

    7. Definitions.

    

    7.1 Cause. For purposes of this
Agreement, “Cause” shall mean: (i) the Executive’s continued substantial
violations of his employment duties (other than a failure resulting from the
Executive’s inability to perform his duties because of illness or other physical
or mental incapacity (based on a medical report provided to the Company) after
the Executive has received written demand for performance from the Company’s
Chief Executive Officer or Board which sets forth the factual basis for the
Company’s belief that the Executive has not substantially performed his duties;
(ii) the Executive engaging in illegal conduct that was or is reasonably likely
to be materially injurious to the business or reputation of the Company or its
affiliates; (iii) the Executive’s violation of a federal or state law or
regulation materially applicable to the Company’s Business; (iv) the Executive’s
material breach of the terms of any confidentiality agreement or invention
assignment agreement between the Executive and the Company; or (v) the Executive
being convicted of, or entering a plea of nolo contendere to, a felony
(other than a traffic violation) or committing any act of moral turpitude,
dishonesty or fraud against, or the misappropriation of material property
belonging to, the Company or its affiliates.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    8. Restrictive
Covenants.

    

    8.1 Covenant Not to Compete.
Executive recognizes that the Company is engaged in a highly competitive
business, personal contact is of primary importance in securing new customers
and in retaining the accounts and goodwill of present customers and protecting
the Business of the Company. The Executive, therefore, agrees that during the
Employment Period and (x) during the Severance Period if Executive is receiving
Severance Payments or (y) after Executive’s employment is terminated for Cause,
for one (1) year following the Termination Date (either of such periods of time
is referred to as the “Restricted Period”), he will not, with respect to the
Company’s Business (i) accept employment or render service to any Person that is
engaged
in a business directly competitive with the Company’s Business or (ii) enter
into or take part in or lend his name, counsel or assistance to any business,
either as proprietor, principal, investor, partner, director, officer,
executive, consultant, advisor, agent, independent contractor, or in any other
capacity whatsoever, for any purpose that would be competitive with the
Company’s Business (all of the foregoing activities are collectively referred to
as the “Prohibited Activity”). For these purposes, the Company’s Business shall
mean (i) design, manufacturing and sales of precision servo motor controllers
for industrial automation, and (ii) any other business engaged in by the Company
on the Termination Date.

    

    8.2 Non-Disclosure of Information.
The Executive shall:

    

    8.2.1
Never, directly or indirectly, disclose to any person or entity for any reason,
or use for his own personal benefit, any “Confidential Information” as
hereinafter defined; and

    

    8.2.2 At
all times take all reasonable precautions necessary to protect from loss or
disclosure by Executive or his subordinates any and all documents or other
information containing, referring, or relating to such Confidential Information.
Upon termination of employment with the Company for any reason, the Executive
shall promptly return to the Company any and all documents or other tangible
property containing, referring, or relating to such Confidential Information,
whether prepared by him or others.

    

    8.2.3
Notwithstanding any provision to the contrary in Section 8, this paragraph shall
not apply to information which the Executive is called upon by legal process
(including, without limitation, by subpoena or discovery requirement) to
disclose or any information which has become part of the public domain or is
otherwise publicly disclosed through no fault or action of the
Executive.

    

    8.2.4 For
purposes of this Agreement, “Confidential Information” shall mean any
information relating in any way to the business of the Company disclosed to or
known to the Executive as a consequence of, result of, or through the
Executive’s employment by the Company which may consist of, but not be limited
to, technical and non-technical information about the Company’s proprietary
products, processes, programs, concepts, forms, business methods, data, any and
all financial and accounting data, employees, marketing, customers, customer
lists, and services and information corresponding thereto acquired by the
Executive during the term of the Executive’s employment by the Company.
Confidential Information shall not include any of such items which are published
or are otherwise part of the public domain, or freely available from trade
sources or otherwise.

    

    8.2.5
Upon termination of this Agreement for any reason, the Executive shall return to
a designated officer of the Company all equipment and/or tangible property then
in the Executive’s possession or custody which belongs or relates to the
Company, including, without limitation, copies or reproductions of
correspondence, memoranda, reports, notebooks, drawings, photographs, data base,
or any other documents or electronically stored information which constitutes
Confidential Information.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    8.3 Trade Secrets - Intellectual Property
Rights. Executive shall provide the Company with any copyrightable work,
trade secrets and other protectable intellectual property that are related to
the Company’s Business and that are developed or produced by Executive while in
the employment of the Company pursuant to this Agreement (collectively, “Work
Product”).

    

    8.3.1 All
Work Product shall be considered works made for hire and shall be the exclusive
property of the Company and the Company shall be considered the author and/or
creator of such work for worldwide copyright purposes and renewals and
extensions thereof. The Company may request, at its own cost and expense, that
Executive assist the Company in obtaining worldwide patent, copyright and other
property rights for the Work Product.

    

    8.3.2 If
Executive’s rights in the Work Product cannot be assigned to the Company, the
Executive waives enforcement of all such rights against the Company. The
Executive further agrees to join in any action, at the Company’s sole cost and
expense, to enforce or to procure a waiver of such rights.

    

    8.3.3 If
the rights of the Work Product cannot be waived or the Work Product is not
deemed a “work for hire”, the Executive hereby grants the Company and its
assigns a worldwide royalty-free license to reproduce, distribute, modify,
publicly display, sublicense and assign such rights in all media or distribution
technologies now known and hereinafter developed or devised.

    

    8.3.4 The
Executive hereby appoints the Company as his attorney in fact to execute and
file any patent, copyright or other lawful application with respect to the Work
Product.

    

    8.4 Conflict of Interest.
Executive shall exercise good judgment and maintain high ethical
standards in the course of his dealings so as to preclude the possibility of a
conflict between the interest of the Company and his own personal interest.
Executive, therefore, has an obligation to avoid any activity, agreement,
personal interest, or other relationship or situation which: (i) conflicts with
the Company’s best interest; (ii) interferes with Executive’s responsibility to
serve the Company to the best of Executive’s ability; or (iii) gives the
appearance of self dealing.

    

    8.4.1
This policy requires that Executive shall not have any relationship, nor engage
in any activity that might impair the independence or judgment in the execution
of Executive’s duties. Executive shall not have any direct or indirect personal
financial interests in suppliers of property, goods or services that would
affect his decisions or actions on the Company’s behalf. Executive shall not
accept gifts, benefits, or unusual hospitality that would be reasonably likely
to influence Executive in the performance of his duties.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    8.4.2 If
any possible conflict of interest situation arises, the Executive is responsible
to immediately disclose the facts to the Board of Managers of the Company so
that an evaluation may determine whether a problem exists and, if so, to
eliminate it.

    

    8.5 Nonsolicitation. During the
term of this Agreement and during the Restricted Period, Executive shall not,
directly or indirectly, induce, attempt to induce, or aid others in inducing any
of Company’s employees to accept employment or affiliation with another firm,
partnership, association, or company.

    

    8.6 Injunctive Relief/Legal Remedies.
The Parties agree that the remedy at law for any breach by Executive of
this Agreement, and specifically the provisions of Section 8 (“Restrictive
Covenants”), will be inadequate and that the Company or any of its subsidiaries
or other successors or assigns shall be entitled to injunctive relief without
bond. Such injunctive relief shall not be exclusive, but shall be in addition to
any other rights and remedies Company or any of its subsidiaries or their
successors or assigns might have for such breach.

    

    8.6.1 The
Employee acknowledges: (i) that compliance with the restrictive provisions
contained in Section 8 is necessary to protect the business and goodwill of the
Company and its subsidiaries, and (ii) that a breach of this Agreement will
result in irreparable and continuing damage to the Company, for which monetary
damages may not provide adequate relief. Consequently, Employee agrees that in
the event of a breach or threatened breach of any of the restrictive covenants
described herein, the Company, at its discretion, shall be entitled to seek
both: (i) a preliminary and/or permanent injunction in order to prevent such
damage, or continuation of such damage, and (ii) monetary damages as
determinable. Nothing herein, however, shall be construed to restrict and/or
prohibit the Company from pursuing any and all other remedies; the employee
acknowledges that all remedies are cumulative.

    

    8.6.2 If
any legal action arises to enforce the Company’s trade secrets, the prevailing
party shall be entitled to recover any and all damages, as well as all costs and
expenses, including reasonable attorney’s fees incurred in enforcing or
attempting to enforce the Company’s trade secrets.

    

    9. Arbitration.

    

    9.1 Any
and all disputes, controversies and claims arising out of, or relating to, this
Agreement, or with respect to the interpretation of this Agreement, or the
rights or obligations of the Parties and their successors and permitted assigns,
whether by operation of law or otherwise, shall be settled and determined by
arbitration in New York, New York, pursuant to the then existing rules of the
American Arbitration Association (“AAA”), for commercial arbitration. Each party
shall pay their own legal fees. The losing party shall pay the fees and costs
imposed by the AAA; if neither party clearly prevails in the arbitration, the
parties shall request that the AAA appointed arbitrator apportion the AAA’s fees
and costs between the parties.

    

    9.2 The
Parties covenant and agree that the decision of the AAA shall be final and
binding and hereby waive their right to appeal therefrom.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    9.3 The
arbitrator(s) will apply New York law to the merits of any dispute or claim,
without reference to rules of conflicts of law. The arbitration proceedings will
be governed by federal arbitration law and by then existing rules of the AAA,
without reference to arbitration law. Executive and the Company hereby consent
to the personal jurisdiction of the state and federal courts located in New
York, New York for any action or proceeding arising from or relating to this
Agreement or relating to any arbitration in which the Parties are
participants.

    

    9.4 THE
EXECUTIVE HAS READ AND UNDERSTANDS THIS SECTION, WHICH DISCUSSES ARBITRATION.
THE EXECUTIVE UNDERSTANDS THAT BY SIGNING THIS AGREEMENT, EXECUTIVE AGREES TO
SUBMIT ANY CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH THIS
AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH OR
TERMINATION THEREOF TO BINDING ARBITRATION, AND THAT THIS ARBITRATION CLAUSE
CONSTITUTES A WAIVER OF THE EXECUTIVE’S RIGHT TO A JURY TRIAL AND RELATES TO THE
RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYER/EMPLOYEE
RELATIONSHIP, INCLUDING BUT NOT LIMITED TO ADMINISTRATIVE CLAIMS.

    

    10. Miscellaneous.

    

    10.1
Notices. Any notice,
demand or communication required or permitted under this Agreement shall be in
writing and shall either be hand-delivered to the other party or mailed to the
addresses set forth below by registered or certified mail, return if a party has
a facsimile machine. Notice shall be deemed to have been given and received (i)
when hand-delivered or after three (3) business days when deposited in the U.S.
Mail, (ii) when transmitted and received by facsimile or sent by express mail
properly addressed to the other party. The addresses are:

    

    To the
Company:

    

    Advanced
Automation Group LLC

    1685
Hamlin Road

    Rochester
Hills, Michigan 48309

    

    To the
Executive:

    

    Shaotang
Chen

    4201
Frostwood Court

    Troy,
Michigan 48098

    

    The
foregoing addresses may be changed at any time by either party by notice given
in the manner herein provided.

    

    10.2
Integration; Modification.
This Agreement, the Letter Agreement dated as of April 6, 2007 by and
among Harbin Electric, Inc, Shelton Technology LLC, and Executive (the “Master
Agreement”) and the License Agreement dated as of April 6, 2007 by and between
the Company, Shelton Technology LLC, and Executive constitute the entire
understanding and agreement between the Company and the Executive regarding its
subject matter, and supersedes all prior negotiations and agreements or
interpretations, whether oral or written. This Agreement may not be modified
except by written agreement signed by the Executive and a duly authorized
officer of the Company. In the event of any conflict between the terms of this
Agreement and the terms of the Master Agreement, the terms of the Master
Agreement shall govern.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    10.3
Binding Effect. This
Agreement shall be binding upon and inure to the benefit of the parties,
including and their respective heirs, executors, successors and assigns, except
that this Agreement may not be assigned by the Executive.

    

    10.4
Waiver of Breach. No
waiver by either party of any condition or of the breach by the other of any
term or covenant contained in this Agreement, whether conduct or otherwise, in
any one (1) or more instances shall be deemed or construed as a further or
continuing waiver of any such condition or breach or a waiver of any other
condition, or the breach of any other term or covenant set forth in this
Agreement. Moreover, the failure of either party to exercise any right hereunder
shall not bar the later exercise thereof with respect to other future
breaches.

    

    10.5
Governing Law. This
Agreement shall be governed by the internal laws of the State of New
York.

    

    10.6
Headings. The headings
of the various sections and paragraphs have been included herein for convenience
only and shall not be considered in interpreting this Agreement.

    

    10.7
Counterparts. This
Agreement may be executed in several counterparts, each of which shall be deemed
to be an original but all of which together will constitute one (1) and the same
instrument.

    

    10.8
Due Authorization. The
Company represents that all corporate action required to authorize the
execution, delivery and performance of this Agreement has been duly
taken.

    

    IN WITNESS WHEREOF, this
Agreement has been executed by the Executive and on behalf of the Company by its
duly authorized officer on the day and year first above written.

     

    
      	 	
              ADVANCED
      AUTOMATION GROUP, LLC

              

              By:

              

              Date

              

              EXECUTIVE:

              

              Shaotang
      Chen

              

              Date

               

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    AMENDMENT
TO

    EMPLOYMENT
AGREEMENT

    

    

    This
Amendment to Employment Agreement (this “Amendment”), dated January 8, 2008, is
made by and among Advanced Automation Group LLC, a Delaware limited liability
company (the “Company”), and Shaotang Chen an individual (the “Executive”). Any
capitalized term not defined herein shall have the meaning for such term
specified in the Employment Agreement (as defined below).

    

    WHEREAS, the Executive and the
Company entered into an Employment Agreement dated April 9, 2007, (the
“Employment Agreement”); and

    

    WHEREAS, the Company and the
Executive wish to extend the term of the Employment Agreement.

    

    NOW THEREFORE, in
consideration of the foregoing and for other consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto, intending to be
legally bound, hereby agree as follows:

    

    1.           Section
2 of the Employment Agreement is hereby amended by deleting the phrase “eighteen
(18) months” and replacing it with “five (5) years”.

    

    2.           Except
as specifically amended hereby, the Employment Agreement shall continue in full
force and effect unmodified and the parties hereby reaffirm the
same.

    

    3.           This
Amendment shall be construed in accordance with and governed by the laws of the
State of Delaware, without giving effect to the conflict of laws principles
thereof.

    

    4.           This
Amendment may be signed in any number of counterparts, each of which shall be an
original and all of which shall be deemed to be one and the same instrument,
with the same effect as if the signatures thereto and hereto were upon the same
instrument. A facsimile signature shall be deemed to be an original signature
for purposes of this Amendment.

    

    

    [Remainder
of page intentionally left blank]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN WITNESS WHEREOF, the
parties hereto have duly executed this Amendment as of the day and year first
above written.

     

     

    
      	 	
              ADVANCED
      AUTOMATION GROUP LLC

              

              

              By:

              Name:
      Tianfu Yang

              Title:
      Chairman and Chief Executive Officer

              

               

              EXECUTIVE:

              

              

              Shaotang
      ChenUnassociated Document

    
      Exhibit
10.1

      

      
 

      

      DATED:    June
23, 2010

      

      山东中文实业集团有限公司

      (SHANDONG
ZHONGWEN INDUSTRIAL GROUP COMPANY LIMITED)

      

      and

      

      香港中文博国际集团有限公司

      (HONGKONG
ZHONGWENBO INTERNATIONAL GROUP COMPANY LIMITED)

      
        

      

      
        
          

        

      SALES
AGENCY AGREEMENT

       

      
        
 

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      

      
        THIS AGREEMENT is made on the
23rd day of June, 2010.

      

      

      
        BETWEEN

      

      

      
        	
                (1)

              	
                山东中文实业集团有限公司 (SHANDONG
      ZHONGWEN INDUSTRIAL GROUP COMPANY LIMITED), a limited liability company
      established and existing under the laws of the People’s Republic of China
      (the “ PRC ”) and whose address is at Damu
      Village, Miaozi Town, Qingzhou City, Shandong Province, PRC ( 中華人民共和國山东省青州市庙子镇大牟村 );
  and

              

      

      

      
        	
                (2)

              	
                香港中文博国际集团有限公司 (HONGKONG
      ZHONGWENBO INTERNATIONAL GROUP COMPANY LIMITED) , a company incorporated and
      existing under the laws of Hong Kong and whose registered office is at 4/F
      & 5/F, Central Tower, No.28 Queen’s Road Central, Hong Kong (the “
      Agent
  ”).

              

      

      

      
        WHEREAS
:

      

      

      
        	
                (A)

              	
                The Principal manufactures and
      sells the Products (as defined
below).

              

      

      

      
        	
                (B)

              	
                The Agent wishes to be appointed
      as the Principal’s agent in the Territory for the sale of the Products (as
      defined below).

              

      

      

      
        NOW IT IS HEREBY AGREED as
follows :

      

      

      
        	
                1.

              	
                INTERPRETATION

              

      

      

      
        	
                1.1

              	
                In this Agreement, unless the
      context otherwise requires:

              

      

      

      
        	
              	
                “ Force
      Majeure
      ”

              	
                means in relation to either
      party, any circumstances beyond the reasonable control of that party
      (including, without limitation, any strike, lock-out or other form of
      industrial action).

              

      

      

      
        	
              	
                “ Intellectual
      Property
      ”

              	
                means any patent, copyright,
      registered design, trade mark or other industrial or intellectual property
      right subsisting in the Territory in respect of the Product, and
      applications for any of the
foregoing.

              

      

      

      
        	
              	
                “ Net Sales
      Value
      ”

              	
                means in relation to any
      Products, the price actually charged to the customer therefor (less any
      value added or other sales tax thereon included in the
      price).

              

      

      

      
        	
              	
                “ Products ”

              	
                means products as are
      manufactured by or for the Principal and are from time to time notified in
      writing by the Principal to the Agent, as more particularly set out in the
      List of Products in the Schedule
  .

              

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        	
              	
                “ Restricted
      Information
      ”

              	
                means any information which is
      disclosed to the Agent by the Principal pursuant to or in connection with
      this Agreement (whether orally or in writing, and whether or not such
      information is expressly stated to be confidential or marked as
      such).

              

      

      

      
        	
              	
                “ Territory ”

              	
                means any productions other than
      Brazil and the PRC (excluding the Special Administration Regions of Hong
      Kong and Macau and the territory of
  Taiwan).

              

      

      
        

        
          	
                  1.2

                	
                  The headings of this Agreement
      are inserted for convenience only and shall be ignored in construing this
      Agreement.  Unless the context otherwise requires, references in
      this Agreement to the singular shall be deemed to include references to
      the plural and vice versa; references to one gender shall include all
      genders and references to any person shall include an individual, firm,
      body corporate or
unincorporate.

                

        

        

        
          	
                  1.3

                	
                  References to any statute or
      statutory provision shall include any statute or statutory provision which
      amends or replaces or has amended or replaced it and shall include any
      subordinate legislation made under the relevant
      statute.

                

        

        

        
          	
                  1.4

                	
                  References in this Agreement to
      clauses, schedules and exhibit are references to, clauses of and schedules
      and exhibit to, this Agreement and references to sub-clauses and
      paragraphs are unless otherwise stated, references to sub-clauses and
      paragraphs of the clause, sub-clause or, as appropriate, the schedule in
      which the reference appears.

                

        

        

        
          	
                  2.

                	
                  APPOINTMENT
      OF AGENT

                

        

        

        
          	
                  2.1

                	
                  The Principal hereby appoints the
      Agent as its agent for the sale of the Products in the Territory, and the
      Agent hereby agrees to act in that capacity, subject to the terms and
      conditions of this
Agreement.

                

        

        

        
          	
                  2.2

                	
                  The Principal shall not, during
      the continuance of this Agreement, appoint any other person, firm or
      company as the Principal’s agent or distributor for the sale of the
      Products in the Territory.

                

        

        

        
          	
                  2.3

                	
                  The Agent shall not solicit or
      accept any orders for the
Products:-

                

        

        

        
          	
                	
                  (i)

                	
                  from any person in the Territory
      if the Agent knows or has reason to believe that the Products concerned
      will be resold outside the Territory;
or

                

        

        

        
          	
                	
                  (ii)

                	
                  from any person outside the
      Territory.

                

        

        

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        

        
          	
                  2.4

                	
                  Subject to the prior consent of
      the Agent either generally or in relation to any specific transaction, the
      Agent shall guarantee to the Principal the due performance by any customer
      or customers of contracts that they have entered into with the Principal
      as a result of the Agent’s activities under this Agreement. Such guarantee
      shall be by way of separate agreement in writing between the Principal and
      the Agent in a form to be agreed but which shall in any event provide that
      the Agent is not to be liable thereunder in the event of a refusal to
      perform by the customer or customers which is caused by any default of the
      Principal.

                

        

        

        
          	
                  3.

                	
                  THE
      AGENT’S DUTIES

                

        

        

        
          	
                  3.1

                	
                  The Agent shall, at all times
      during the continuance of this Agreement
  :

                

        

        

        
          	
                	
                  (i)

                	
                  act in the interests of the
      Principal and not allow its interests to conflict with the duties that it
      owes to the Principal; and

                

        

        

        
          	
                	
                  (ii)

                	
                  act towards the Principal
      dutifully and in good faith.

                

        

        

        
          	
                  3.2

                	
                  The Agent shall use its best
      endeavours to promote and market the Products to customers and prospective
      customers in the Territory and, subject to the provisions of clause
      4.1 , shall be
      entitled without prior reference to the Principal to enter into contracts
      for the sale of the Products in the name and on behalf of the
      Principal.

                

        

        

        
          	
                  3.3

                	
                  The Agent shall conduct the
      promotion and marketing of the Products in the Territory with all due care
      and diligence and shall cultivate and maintain good relations with
      customers and potential customers in the Territory in accordance with
      sound commercial principles.

                

        

        

        
          	
                  3.4

                	
                  Subject as provided in this
      Agreement and to any directions which the Principal may from time to time
      properly give, the Agent shall be entitled to perform its duties hereunder
      in such manner as it may think
fit.

                

        

        

        
          	
                  3.5

                	
                  The Agent shall in all dealings
      concerning the Products describe itself as “Sales Agent” for the
      Principal.

                

        

        

        
          	
                  3.6

                	
                  The Agent shall be responsible
      for obtaining all licences, permits and approvals which are necessary or
      advisable for the sale of the Products in the Territory and for the
      performance of its duties
hereunder.

                

        

        

        
          	
                  3.7

                	
                  The Agent shall comply with all
      applicable laws and regulations relating to the sale of the Products in
      the Territory (other than those relating to the nature, method of
      manufacture, packaging or labeling of the Products) and shall notify the
      Principal of any changes in the laws and regulations in the Territory
      relating to the nature, method of manufacture, packaging or labeling of
      the Products.

                

        

        

        
          	
                  3.8

                	
                  The Agent shall maintain a list
      of customers and potential customers for the Products in the Territory and
      shall at the request of the Principal supply it with a copy of that
      list.

                

        

        

        
          	
                  3.9

                	
                  The Agent shall from time to time
      keep the Principal fully informed of the Agent’s promotional and marketing
      activities in respect of the
Products.

                

        

        

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        
          	
                  3.10

                	
                  The Agent shall keep the
      Principal informed of conditions in the market for the Products in the
      Territory.

                

        

        

        
          	
                  3.11

                	
                  The Agent shall promptly inform
      the Principal of :

                

        

        

        
          	
                	
                  (i)

                	
                  any complaint or after-sales
      enquiry concerning the Products which is received by the Agent;
      and

                

        

        

        
          	
                	
                  (ii)

                	
                  any matters likely to be relevant
      in relation to the manufacture, sale, use or development of the Products
      within or outside the
Territory.

                

        

        

        
          	
                  3.12

                	
                  The Agent shall not
      :

                

        

        

        
          	
                	
                  (i)

                	
                  pledge the credit of the
      Principal in any way;

                

        

        

        
          	
                	
                  (ii)

                	
                  make any modifications to the
      Products or their packaging or (without prejudice to the generality of the
      foregoing) alter, remove or tamper with the trade names, trade marks, or
      other means of identification on the
  Products;

                

        

        

        
          	
                	
                  (iii)

                	
                  use any advertising, promotional
      or selling materials in relation to the Products except those supplied or
      approved by the principal;

                

        

        

        
          	
                	
                  (iv)

                	
                  engage in any conduct which in
      the opinion of the Principal is prejudicial to the Principal’s business or
      the marketing of the Products generally;
  or

                

        

        

        
          	
                	
                  (v)

                	
                  be concerned or interested either
      directly or indirectly in the manufacture, sale, promotion, marketing or
      importation into the Territory of any goods which compete with the
      Products.

                

        

        

        
          	
                  4.

                	
                  SALES
      AND STOCKS OF THE PRODUCTS

                

        

        

        
          	
                  4.1

                	
                  All sales of the Products by the
      Agent on behalf of the Principal shall be made on such terms and
      conditions as the Principal may from time to time specify in writing to
      the Agent, and accordingly :

                

        

        

        
          	
                	
                  (i)

                	
                  the Agent shall, in the course of
      dealing with all customers and prospective customers for the Products in
      the Territory, bring to their notice such terms and conditions;
      and

                

        

        

        
          	
                	
                  (ii)

                	
                  the Agent shall not make or give
      any promises, warranties, guarantees or representations concerning the
      Products other than those contained in those terms and conditions of
      sale.

                

        

        

        
          	
                  4.2

                	
                  All sales of the Products by the
      Agent on behalf of the Principal shall be at the price specified in the
      price lists which shall from time to time be supplied to the Agent for the
      purpose by the Principal, subject to such discounts and other deductions
      as the Principal may allow.

                

        

        

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        
          	
                  4.3

                	
                  Title to the Products shall at no
      time pass to the Agent, and the Agent shall ensure that all Products are
      separately stored on its premises and marked as being the property of the
      Principal.

                

        

        

        
          	
                  5.

                	
                  INTELLECTUAL
      PROPERTY

                

        

        

        
          	
                  5.1

                	
                  The Agent shall promptly and
      fully notify the Principal of any actual, threatened or suspected
      infringement in the Territory of any Intellectual Property of the
      Principal which comes to the Agent’s notice, and of any claim by any third
      party so coming to its notice that the importation of the Products into
      the Territory, or their sale therein, infringes any rights of any other
      person, and the Agent shall at the request and expense of the Principal do
      all such things as may be reasonably required to assist the Principal in
      taking or resisting any proceedings in relation to any such infringement
      or claim.

                

        

        

        
          	
                  5.2

                	
                  Nothing in this Agreement shall
      give the Agent any rights in respect of any trade names or trade marks
      used by the Principal in relation to the Products or of the goodwill
      associated therewith, and the Agent hereby acknowledges that, except as
      expressly provided in this Agreement, it shall not acquire any rights in
      respect thereof and that all such rights and goodwill are, and shall
      remain, vested in the
Principal.

                

        

        

        
          	
                  5.3

                	
                  The Agent shall not use in the
      Territory any trade marks or trade names so resembling the trade marks or
      trade names of the Principal as to be likely to cause confusion or
      deception.

                

        

        

        
          	
                  5.4

                	
                  The Agent shall, at the expense
      of the Principal, take all such steps as the Principal may reasonably
      require to assist the Principal in maintaining the validity and
      enforceability of the Intellectual Property of the Principal during the
      continuance of this
Agreement.

                

        

        

        
          	
                  5.5

                	
                  Without prejudice to the right of
      the Agent or any third party to challenge the validity of any Intellectual
      Property of the Principal, the Agent shall not do or authorize any third
      party to do any act which would or might invalidate or be inconsistent
      with the Intellectual Property of the Principal and shall not omit or
      authorize any third party to omit to do any act which, by its omission,
      would have that effect or
character.

                

        

        

        
          	
                  6.

                	
                  RIGHTS
      AND DUTIES OF THE PRINCIPAL

                

        

        

        
          	
                  6.1

                	
                  The Principal shall at all times
      during the continuance of this Agreement act towards the Agent dutifully
      and in good faith.

                

        

        

        
          	
                  6.2

                	
                  The Principal shall be entitled
      from time to time to extend the range of the Products, or discontinue any
      of the same.

                

        

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

        

        
          	
                  6.3

                	
                  The Principal shall
      :

                

        

        

        
          	
                	
                  (i)

                	
                  supply to the Agent any
      information which may come into its possession which may assist the Agent
      to effect sales pursuant to this
  Agreement;

                

        

        

        
          	
                	
                  (ii)

                	
                  honour any contracts for the sale
      of the Products entered into by the Agent on behalf of the Principal
      pursuant to this Agreement;

                

        

        

        
          	
                	
                  (iii)

                	
                  promptly and efficiently deal
      with any after sales enquiry relating to the Products raised by a customer
      in the Territory; and

                

        

        

        
          	
                	
                  (iv)

                	
                  comply with all the applicable
      laws and regulations relating to the nature, method of manufacture,
      packaging and labeling of the
Products.

                

        

        

        
          	
                  6.4

                	
                  Subject to compliance by the
      Agent with its obligations under this Agreement, the Principal shall
      indemnify the Agent against any liability (including, without prejudice to
      the generality of the foregoing, all costs and expenses which the Agent
      may reasonably incur in defending any proceedings) which it may incur by
      reason only of its being held out as the Principal’s
      agent.

                

        

        

        
          	
                  7.

                	
                  FINANCIAL
      PROVISIONS

                

        

        

        
          	
                   
      

                	
                  In
      consideration of the obligations undertaken by the Agent hereunder, the
      Principal shall pay the Agent commission equal to 5 per cent of the Net
      Sales Value of all Products for which a contract of sale is made by the
      Agent on behalf of the Principal pursuant to this Agreement. All sums
      payable by the Principal under this Agreement shall be paid in full
      without set-off or counterclaim or any restriction or condition and free
      and clear of any tax or other deductions or withholdings of any
      nature.

                

        

        

        
          	
                  8.

                	
                  CONFIDENTIALITY

                

        

        

        
          	
                  8.1

                	
                  Except as provided by
      clauses
      8.2 and 8.3 , the Agent shall at all times
      during the continuance of this Agreement and after its
      termination:

                

        

        

        
          	
                	
                  (i)

                	
                  use its best endeavours to keep
      all Restricted Information confidential and accordingly not to disclose
      any Restricted Information to any other person;
  and

                

        

        

        
          	
                	
                  (ii)

                	
                  not use any Restricted
      Information for any purpose other than the performance of its obligation
      under this Agreement.

                

        

        

        
          	
                  8.2

                	
                  Any Restricted Information may be
      disclosed by the Agent to :

                

        

        

        
          	
                	
                  (i)

                	
                  any customers or prospective
      customers;

                

        

        

        
          	
                	
                  (ii)

                	
                  any governmental or other
      authority or regulatory body;
or

                

        

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

        

        
          	
                	
                  (iii)

                	
                  any employees of the Agent or of
      any of the aforementioned
persons,

                

        

        

        
          	
                   
      

                	
                  to
      such extent only as is necessary for the purposes contemplated by this
      Agreement, subject in each case to the Agent using its best endeavours to
      ensure that the person in question keeps the same confidential and does
      not use the same except for the purposes for which the disclosure is made,
      or to any person as is required by
law.

                

        

        

        
          	
                  8.3

                	
                  Any Restricted Information may be
      used by the Agent for any purpose, or disclosed by the Agent to any other
      person, to the extent only that
:

                

        

        

        
          	
                	
                  (i)

                	
                  it is at the date hereof, or
      hereafter becomes, public knowledge through no fault of the Agent
      (provided that in doing so the Agent shall not disclose any Restricted
      Information which is not public knowledge);
  or

                

        

        

        
          	
                	
                  (ii)

                	
                  if can be shown by the Agent, to
      the reasonable satisfaction of the Principal, to have been known to the
      Agent prior to its being disclosed by the Principal to the
      Agent.

                

        

        

        
          	
                  9.

                	
                  FORCE
      MAJEURE

                

        

        

        
          	
                  9.1

                	
                  If either party is affected by
      Force Majeure it shall forthwith notify the other party of the nature and
      extent thereof.

                

        

        

        
          	
                  9.2

                	
                  Neither party shall be deemed to
      be in breach of this Agreement, or otherwise be liable to the other, by
      reason of any delay in performance, or non-performance, of any of its
      obligations hereunder to the extent that such delay or non-performance is
      due to any Force Majeure of which it has notified the other party; and the
      time for performance of that obligation shall be extended
      accordingly.

                

        

        

        
          	
                  9.3

                	
                  If the Force Majeure in question
      prevails for a continuous period in excess of six months, the parties
      shall enter into bona fide discussions with a view to alleviating its
      effects, or to agreeing upon such alternative arrangements as may be fair
      and reasonable.

                

        

        

        
          	
                  10.

                	
                  DURATION
      AND TERMINATION

                

        

        

        
          	
                  10.1

                	
                  This agreement shall come into
      force on the date hereof and, subject as provided in clauses
      10.2 and
      10.3 , shall continue in force for a
      period of 2 years and thereafter unless or until terminated by either
      party giving to the other written notice expiring at or at any time after
      the end of that period.

                

        

        

        
          	
                  10.2

                	
                  Either party shall be entitled
      forthwith to terminate this Agreement by giving written notice to the
      other if that other party commits any repudiatory breach of any of the
      provisions of this Agreement and, in the case of a breach capable of
      remedy, fails to remedy the same within 30 days after receipt of a written
      notice giving full particulars of the breach and requiring it to be
      remedied.

                

        

        

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

        

        
          	
                  10.3

                	
                  Either party shall be entitled to
      terminate this Agreement by giving written notice to the other party if
      :

                

        

        

        
          	
                	
                  (i)

                	
                  the other party commits a breach
      of this Agreement (not being a repudiatory breach of this Agreement) and,
      if the breach is capable of remedy, fails to remedy it within 30 days
      after receipt of a written notice giving full particulars of the breach
      and requiring it to be
remedied;

                

        

        

        
          	
                	
                  (ii)

                	
                  the other party makes any
      voluntary arrangement with its
creditors;

                

        

        

        
          	
                	
                  (iii)

                	
                  the other party goes into
      liquidation (except for the purposes of amalgamation or reconstruction and
      in such manner that the company resulting therefrom effectively agrees to
      be bound by or assume the obligations imposed on that other party under
      this Agreement);

                

        

        

        
          	
                	
                  (iv)

                	
                  anything analogous to any of the
      foregoing under the law of any jurisdiction occurs in relation to that
      other party; or

                

        

        

        
          	
                	
                  (v)

                	
                  the other party ceases, or
      threatens to cease, to carry on
business.

                

        

        

        
          	
                  10.4

                	
                  For the purposes of clause
      10.3 , a breach
      shall be considered capable of remedy if the party in breach can comply
      with the provision in question in all respects other than as to the time
      of performance (provided that time of performance is not of the
      essence).

                

        

        

        
          	
                  10.5

                	
                  Any waiver by either party of a
      breach of any provision of this Agreement shall not be considered as a
      waiver of any subsequent breach of the same or any other provision
      thereof.

                

        

        

        
          	
                  10.6

                	
                  The rights to terminate this
      Agreement given by this clause shall be without prejudice to any other
      right or remedy of either party in respect of the breach concerned (if
      any) or any other breach.

                

        

        

        
          	
                  11.

                	
                  CONSEQUENCES
      OF TERMINATION

                

        

        

        
          	
                  11.1

                	
                  Upon the termination of this
      Agreement for any reason :

                

        

        

        
          	
                	
                  (i)

                	
                  the Agent shall within 30 days
      send to the Principal or otherwise dispose of in accordance with the
      directions of the Principal all stocks of the Products (other than any for
      which it has accepted orders from customers before the date of
      termination), samples and any advertising, promotional or sales material
      relating to the Products then in the possession of the
      Agent;

                

        

        

        
          	
                	
                  (ii)

                	
                  the Agent shall cease to promote,
      market, advertise or sell the
Products;

                

        

        

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

        
          	
                	
                  (iii)

                	
                  the provisions of clause
      7 shall continue in
      force in relation to :

                

        

        

        
          	
                	
                  (a)

                	
                  all sales of the Products before
      the date of termination; and

                

        

        

        
          	
                	
                  (b)

                	
                  all sales of the Products after
      the date of termination pursuant to orders received on or before that
      date;

                

        

        

        
          	
                	
                  (iv)

                	
                  clause 8 shall continue in force
      in accordance with its terms;
and

                

        

        

        
          	
                	
                  (v)

                	
                  subject as otherwise provided
      herein and to any rights or obligations which have accrued prior to
      termination, neither party shall have any further obligation to the other
      under the Agreement.

                

        

        

        
          	
                  11.2

                	
                  The costs incurred by the Agent
      in complying with clause
      11.1(i) shall, where
      the termination is by the Agent pursuant to clause
      10.2 , be for the
      account of the Principal and, in any other case, be for the account of the
      Agent.

                

        

        

        
          	
                  12.

                	
                  MISCELLANEOUS

                

        

        

        
          	
                  12.1

                	
                  Subject as provided in
      clause
      12.2 , this
      Agreement is personal to the Principal and  the Agent, which may
      not without the written consent of the other party, assign, mortgage,
      charge (otherwise than by floating charge) or dispose of any of its rights
      hereunder, or sub-contract or otherwise delegate any of its obligations
      hereunder.

                

        

        

        
          	
                  12.2

                	
                  The Agent shall not without the
      prior written consent of the Principal employ sub-agents, if with such
      consent it does so, every act or omission of the sub-agent shall for the
      purposes of this Agreement be deemed to be the act or omission of the
      Agent.

                

        

        

        
          	
                  12.3

                	
                  Nothing in this Agreement shall
      create, or be deemed to create, a partnership or the relationship of
      employer and employee between the
  parties.

                

        

        

        
          	
                  12.4

                	
                  This Agreement contains the
      entire agreement between the parties with respect to the subject matter
      hereof, supersedes all previous agreements and understandings between the
      parties with respect thereto, and may not be modified except by an
      instrument in writing signed by the duly authorized representatives of the
      parties.

                

        

        

        
          	
                  12.5

                	
                  Each party acknowledges that, in
      entering into this Agreement, it does not do so on the basis of, and does
      not rely on, any representation, warranty or other provision except as
      expressly provided herein, and all conditions, warranties or other terms
      implied by statute or common law are hereby excluded to the fullest extent
      permitted by law.

                

        

        

        
          	
                  12.6

                	
                  If any provision of this
      Agreement is held by any court or other competent authority to be void or
      unenforceable in whole or part, this Agreement shall continue to be valid
      as to the other provisions thereof and the remainder of the affected
      provision.

                

        

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

         

        
          	
                  13.

                	
                  NOTICES

                

        

        

        
          	
                   
      

                	
                  Any
      notice or other communication given or to be given pursuant to this
      Agreement shall be in writing sent or delivered to the recipient at the
      address set out below or such other address as the addressee may by three
      (3) business days’ prior written notice specify to the other
      party:

                

        

        

        
          	
                   
      

                	
                  山东中文实业集团有限公司   (Shandong
      Zhongwen Industrial Group Company
Limited)

                

        

        
          
            	
                    Address:

                  	
                    中華人民共和國山东省青州市庙子镇大牟村

                    (Damu Village, Miaozi Town, Qingzhou City,
      Shandong Province, PRC)

                  
	
                    Attention: 
      

                  	
                    Mr.
      Duan Wenbo ( 段文博
      )

                  

          

        

         

        
          	
                   
      

                	
                  香港中文博国际集团有限公司
      ( Hongkong Zhongwenbo International Group Company
  Limited)

                

        

        
          
            	
                    Address:

                  	
                    4/F
      & 5/F, Central Tower, No.28 Queen’s Road Central, Hong
      Kong

                  
	
                    Attention: 
      

                  	
                    Mr.
      Sun Hongyi ( 孙洪义
      )

                  

          

        

         

        
          	
                  14.

                	
                  ARBITRATION

                

        

        

        
          	
                   
      

                	
                  Any
      dispute, controversy or claim arising out of or relating to this Agreement
      shall be settled by arbitration administered by the Hong Kong
      International Arbitration Centre in accordance with the UNCITRAL
      Arbitration Rules as at present in force and as may be amended by the
      provisions of this Section. The arbitration shall be the sole and
      exclusive forum for resolution of such dispute, controversy or claim, and
      the award rendered shall be final and binding. Judgment on the award
      rendered may be entered in any court having jurisdiction
      thereof.

                

        

        

        
          	
                  15.

                	
                  GOVERNING
      LAW

                

        

        

        
          	
                   
      

                	
                  This
      Agreement shall be construed and governed in accordance with the laws of
      the HKSAR.

                

        

        

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

         

        IN WITNESS WHEREOF this
Agreement has been duly executed by the parties hereto on the date first written
above.

         

        
          

          
            	
                    SIGNED by

                     

                    for
      and on behalf of 山东中文实业集团

                     

                    有限公司   (Shandong
      Zhongwen

                     

                    Industrial
      Group Company Limited)

                     

                    in
      the presence of: -

                  	
                    )

                    )

                    )

                    )

                    )

                    )

                    )

                    )

                    )

                     

                  	  

          

           

           

          
            	
                    SIGNED by

                     

                    for
      and on behalf of 香港中文博国际集

                     

                    团有限公司
      (Hongkong Zhongwenbo

                     

                    International
      Group Company Limited)

                     

                    in
      the presence of: -

                  	
                    )

                    )

                    )

                    )

                    )

                    )

                    )

                    )

                    )

                  	          

          

          

          
            
              
              

            

            
              12

              
                

              

            

            
              
              

            

          

        

         

        THE
SCHEDULE

        

        LIST
OF PRODUCTS

        

        
          	
                  No.

                	 
      	
                  Name
      of Products

                	 
      
	
                  1

                	 
      	
                  QTC63C
      Tower Crane

                	
                  塔式起重机

                
	
                  2

                	 
      	
                  HZS
      HLS Series Concrete Mixing Station

                	
                  搅拌站

                
	
                  3

                	 
      	
                  HBT
      80 Concrete Pump

                	
                  混凝土输送泵

                

        

        

        * The
product description is attached to the Annex 1.

        

        
          
            
            

          

          
            1

            
              

            

          

          
            
            

          

        

        
           

        

        ANNEX
1

        

        PRODUCT
DESCRIPTION

        

        
          
            
            

          

          
            2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]