Document:

exh10-1_083107.htm

    Exhibit 10.1

    FIRST
      AMENDMENT

    TO

    ASSETS
      PURCHASE AGREEMENT

    

    

    THIS
      IS A FIRST AMENDMENT dated August 31st, 2007 to an ASSETS PURCHASE
      AGREEMENT dated as of the 17th day of April, 2007 by and among:

    

    

    

    HOST
      AMERICA CORPORATE DINING,
      INC.

    a
      Connecticut corporation

    with
      a place of business
      at

    147
      Ledge Drive

    Berlin,
      CT  06037                                                                                                                     ("Buyer")

    

    and

    

    HOST
      AMERICA
      CORPORATION

    a  Colorado
      corporation

    with
      a place of business
      at

    2
      Broadway, Hamden, CT
      06518                                                                                             ("Seller")

    

    and

    

    TIMOTHY
      HAYES

    of
      147 Lodge Drive

    Berlin,
      CT  06037                                                                                                                     (“Hayes”)

    

    

    WHEREAS,
      on the 17th day of April,
      2007,
      the parties hereto entered into the Assets Purchase Agreement described above
      (the “Original Agreement”); and

    

    WHEREAS,
      the parties wish to amend the
      Original Agreement to provide that certain sums out of the Purchase Price shall
      be held in escrow, and to make other technical corrections, as more particularly
      described herein (capitalized terms used herein shall have the meanings set
      forth in the Original Agreement unless otherwise specifically defined
      herein);

    

    NOW,
      THEREFORE, for One Dollar ($1.00) and other good and valuable considerations,
      the receipt of which is hereby acknowledged by the parties hereto, the parties
      do hereby agree as follows:

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    A.           Amendment
      to the Original Agreement.

    

    1.           Paragraph
      2 of the Original Agreement is hereby amended by the addition of an additional
      subsection (d) as follows:

    

    (d)           Escrow.  Out
      of the Purchase Price the sum of $196,097 (the “Escrow”) is being paid to
      Richard Hartley, Esq. (“Escrow Agent”) to be held in escrow for a period of 120
      calendar days (the “Escrow Period”) after the Closing Date.  The
      purpose of the Escrow is to allow the determination by Pitney Bowes Corporation
      (“PB”) as to whether or not it will terminate one or more of the Purchased
      Contracts referred to on Schedule 2(d) attached hereto (each a “PB
      Contract”).  Provided the Business is operated by the Buyer after the
      Closing in a manner consistent with the operation of the Business by Seller
      prior to the Closing, in the event PB provides written notice of termination
      (a
“Termination Notice”) to Buyer within the Escrow Period with respect to any one
      or more PB Contracts, the amount of the Adjustment shown on Schedule 2(d)
      with respect to the PB Contracts so terminated shall be paid by Escrow Agent
      to
      Buyer at the conclusion of the Escrow Period.  Any sums not so paid
      and remaining in the Escrow shall be paid by Escrow Agent to Seller at the
      conclusion of the Escrow Period.  In the event Buyer shall receive
      such a Termination Notice from PB, and as a condition precedent to any
      distribution of the Escrow by Escrow Agent to Buyer, Buyer shall, within two
      (2)
      business days of receipt, provide an exact copy of such Termination Notice
      to
      Seller.  Seller may, but shall not be obligated to, contact the
      responsible person at PB to determine the cause for termination and whether
      such
      termination is final.  In the event such termination is rescinded by
      PB prior to the conclusion of the Escrow Period, such Termination Notice shall
      be deemed never to have been given for purposes of this paragraph.

    

    2.           Section
      3(a) of the Original Agreement is hereby deleted and the following is hereby
      inserted in its place and stead:

    

    (a)           Deliveries
      by Buyer at the Closing:

    

    1.           The
      Purchase Price in U.S. Dollars, less the Escrow, wired to the Seller in
      accordance with the Seller’s instructions.

    

    2.           The
      Escrow is U.S. Dollars wired to the Escrow Agent in accordance with the Escrow
      Agent’s instructions.

    

    3.           A
      Good Standing Certificate of the Buyer.

    

    4.           A
      Certificate of the Buyer, dated as of the Closing Date, certifying in such
      detail as Seller may reasonably request to the fulfillment of the conditions
      set
      forth in Section 9.

    

    3.           Schedule
      5 is hereby amended by the substitution of Schedule 5 attached hereto for
      Schedule 5 attached to the Original Agreement.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    B.           Ratification
      of Agreement. Each party hereto hereby restates each and every
      representation, warranty and covenant contained in the Original Agreement as
      though made on and as of the date hereof and as though each such representation,
      warranty and covenant were fully set forth herein, but with such changes thereto
      as relate to any particular date or time and such other changes as shall have
      occurred in the ordinary course of business which shall not have constituted
      a
      default under the Original Agreement.  In extension of the foregoing,
      the parties hereto each hereby ratifies and confirms the Original Agreement
      as
      being its valid and binding obligation, enforceable against it in accordance
      with all of its terms as amended hereby.  In addition, the parties
      hereto each hereby confirms that it has no defenses to the performance of any
      or
      all of its obligations under the Original Agreement as amended
      hereby.

    

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Amendment as of the
      date
      first above written.

    

    

    BUYER

    

    

    By
      /s/ Timothy Hayes    

    Name:

    Title:

    

    

    SELLER

    

    

    HOST
      AMERICA
      CORPORATION                                                                                     

    

    

    

    By:
      /s/ David Murphy    

    Name: David
      Murphy                                                                                    

    Title:
      CEO

    

    

    /s/ 
Timothy
      Hayes      

    Timothy
      Hayes

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    Schedule
      2(d)

    

    Pitney
      Bowes Contracts

    

    Unit
      Name/Manager                                                                Adjustment

    Address

    

    Pitney
      Bowes

    27
      Waterview

    Shelton,
      CT  06484                                                                $41,399

    

    Pitney
      Bowes

    35
      Waterview

    Shelton,
      CT  06484                                                                $30,457

    

    Pitney
      Bowes

    11
      Edmond Road

    Newtown,
      CT  06470-1633                                                   $5,908

    

    Pitney
      Bowes

    37
      Executive Drive

    Danbury,
      CT  06810                                                               $25,832

    

    Pitney
      Bowes Bldg. II

    7
      Edmond Road

    Newtown,
      CT  06470-1633                                                   $10,131

    

    PB
      Cafeteria Barry Place

    23
      Barry Place

    Stamford,
      CT  06902                                                             $20,397

    

    Host
      America Cafeteria

    c/o
      Pitney Bowes

    10
      Middle Street

    Bridgeport,
      CT  06604                                                           $4,686

    

    PB
      World HQ

    Host
      America Cafeteria

    1
      Elmcroft Road

    Stamford,
      CT  06902                                                             $57,287

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    Schedule
      5

    

    

    None
      other than those listed on
      Schedules 1(d) and 1(f).

     

     

     

    5comtech_8k-ex1001.htm

    
      Exhibit
        10.1

      

      STOCK
        PURCHASE AGREEMENT

      

                 STOCK
        PURCHASE AGREEMENT, dated August 27, 2007, by and among Comtech Group, a
        company
        incorporated in the Cayman Islands, the registered office of which is situated
        at PO Box 309GT, Ugland House, South Church Street, Grand Cayman, Cayman
        Islands  (the “Purchaser”),
        Broadwell Group Ltd., a company incorporated in the British
        Virgin Islands, the registered office of which is situated at  OMC
        Chambers, P.O. Box 3152, Road Town, Tortola, British Virgin
        Islands  (the “Seller”), Broad Wise Holdings
        Limited, a company incorporated in the British Virgin Islands, the registered
        office of which is situated at P.O. Box 957, Offshore Incorporations Centre,
        Road Town, Tortola, the British Virgin Islands ( the
“Company”), and Comtech Broadband Corporation Limited,
        a company organized and existing under the laws of Hong Kong (the
“HK Company”, together with the Company, the “Company
        Group”) on the other hand.

      

      W
        I T N E
        S S E T H:

      

      WHEREAS,
        as at the date hereof the Seller owns all issued and outstanding shares of
        the
        Company (the “Shares”);

      

      WHEREAS,
        as at the date hereof the Company and the Purchaser collectively own all
        issued
        and outstanding shares of the HK Company, of which the Company holds 45%
        of the
        issued and outstanding shares in the HK Company (the “HK
        Shares”) and the Purchaser holds 55% of the issued and outstanding
        shares in the HK Company;

      

      WHEREAS,
        the Seller desires to sell all its entire Shares of the Company to the
        Purchaser, and the Purchaser desires to purchase the Shares from the Seller
        for
        the purpose of directly and indirectly owning all issued and outstanding
        shares
        of the HK Company, for the consideration and on the terms set forth in this
        Agreement;

       

      WHEREAS,
        certain capitalized terms used in this Agreement are defined in
        Section 10.13 below.

       

      NOW,
        THEREFORE, in consideration of the mutual covenants hereinafter set forth,
        and
        for other good and valuable consideration, the receipt and adequacy of which
        are
        hereby acknowledged, the parties hereto agree as follows:

      

      ARTICLE
        I

      Purchase
        and Sale of Shares.

      

                 Section
        1.1                                Sale
        of Shares.  Subject to the terms and conditions of this Agreement,
        the Seller shall  sell, transfer, convey, assign and set over
        (“Transfer”) to the Purchaser at the Closing, and the
        Purchaser shall at the Closing purchase and acquire from the Seller, all
        of the
        Seller’s right, title and interest in and to the Shares.  In
        furtherance of the foregoing, the Seller shall at the Closing Transfer
        beneficial and record ownership of the Shares to the Purchaser, and execute
        one
        or more stock powers, endorsements or assignments as the Purchaser may
        reasonably request.

      

      ARTICLE
        II

      Purchase
        Price.

      

                 Section
        2.1.                              Purchase
        Price.  In consideration of the Transfer to the Purchaser of the
        Shares at the Closing, and of the other representations, warranties and
        covenants herein:

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      
 

      (a)           Subject
        to satisfaction of all relevant operating and financial milestones of the
        HK
        Company agreed upon by the Parties and on the terms and conditions contained
        herein, the Purchaser shall pay to the Seller US$15 million (the
“Purchase Price”), consisting of US$10 million in cash
        and US$5 million in shares of Comtech Group, Inc., the parent company of
        the
        Purchaser (“COGO Shares”).  The schedule of
        payment and adjustment of the Purchase Price shall be separately agreed upon
        by
        the Parties.

      

      Section
        2.2                             
COGO Shares.  Subject to all applicable conditions and
        requirements of the US securities law, the COGO Shares granted to the Seller
        pursuant to Article II may be traded freely on the NASDAQ.  In the
        event that COGO Shares is changed into or exchanged for a different number
        or
        kind of shares of the Purchaser or other securities of the Purchaser or of
        any
        third corporation, by reason of reorganization, merger, consolidation,
        recapitalization, reclassification, stock split up, stock dividend or
        combination of shares, the Purchaser shall make an appropriate and equitable
        adjustment to the number of COGO Shares to be issued to the Seller or any
        appropriate substitution of a different security for such COGO Shares as
        the
        case may be.  Any such adjustment made by the Purchaser shall be final
        and binding upon the Seller.

      

      Section
        2.3                               Offset
        Right.  Notwithstanding anything herein to the contrary, the
        Purchaser shall be entitled to offset, against any consideration otherwise
        payable to the Seller pursuant to Article II pursuant to the terms of this
        Agreement (whether before, at or after the Closing) or any other Closing
        Documents.

      

      

      ARTICLE
        III

      Closing.

      

                 Section
        3.1                                Closing
        Date.  The closing of the transactions contemplated hereby (the
“Closing”) shall be held in Shenzhen, China, on the
        Closing Date.  All matters at the Closing shall be considered to take
        place simultaneously.  As used herein, the term “Closing
        Date” shall mean the date which is two Business Days after all of
        the conditions in Article VII have been satisfied (or waived in writing by
        the
        party entitled to provide such a waiver), provided that the Closing Date
        shall
        not be later than August 31, 2007,
        unless the parties hereto mutually agree otherwise in writing.

      

                 Section
        3.2                               Documents
        of Conveyance, Etc.  The Seller and the Purchaser shall deliver to
        each other at the Closing such certificates, consents, approvals, agreements,
        and documents relating to the transactions contemplated by this Agreement
        (collectively with this Agreement, the “Closing
        Documents”) as set forth in Appendix 1.  Each party
        hereto further agrees that at or subsequent to the Closing, upon the written
        request of the other party, it will promptly execute and deliver or cause
        to be
        promptly executed and delivered any further assignments, instruments of transfer
        and bills of sale or conveyances reasonably necessary or desirable to vest
        fully
        in the Purchaser all of the Seller’ right, title and interest in and to the
        Shares.

      

      ARTICLE
        IV

      Representations
        and Warranties by the Warrantors.

      

                 Section
        4.1                                Representations
        and Warranties.  Each of the Warrantors hereby jointly and
        severally makes the following representations and warranties to the
        Purchaser:

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      
 

      (a)             The
        Seller is a company duly organized, validly existing and in good standing
        under
        the Laws of the British Virgin Islands and has all requisite corporate power
        and
        authority to execute, deliver and perform this Agreement and the Closing
        Documents to be executed by it and to consummate the transactions contemplated
        hereby and thereby.  The execution and delivery of this Agreement and
        the Closing Documents to be executed by the Seller and the consummation by
        the
        Seller of the transactions contemplated hereby and thereby have been duly
        authorized by all requisite corporate action.  This Agreement and the
        Closing Documents to be executed by the Seller constitute valid and binding
        obligations of the Seller enforceable against it in accordance with their
        respective terms.

      

      Both
        the
        Shares and the HK Shares are duly authorized, validly issued and are fully
        paid
        and non-assessable.  The Seller is not entitled to the payment of any
        dividends or other distributions from the Company after the date hereof on
        account of the Seller’s ownership of the Shares on or before the date
        hereof.

      

      The
        Company has not conducted any business or incur any debt or liabilities,
        whether
        actual or contingent, since its formation other than owning the HK
        Shares.

      

      (b)             (i)           Neither
        the execution and delivery by each of the Warrantors of this Agreement and
        the
        Closing Documents to be executed by each of the Warrantors, nor the consummation
        by each of the Warrantors of the transactions contemplated hereby or thereby:
        (1) violates or will violate any Law applicable to any of the Warrantors;
        (2)
        violates or will violate any order, ruling, writ, judgment, injunction or
        decree
        of any Governmental Entity (an “Order”) applicable to
        any of the Warrantors; (3) conflicts or will conflict with, or results or
        will
        result in a breach of or default under, the Charter Documents of the Company,
        the HK Company or the Seller; or (4) results or will result in the imposition
        of
        any Lien on any of the Assets, the Shares or the HK Shares.  No
        consent, authorization, or approval from, or registration or filing with,
        any
        Governmental Entity or other third party (not obtained or made as of the
        date
        hereof) is required to be obtained or made by or with respect to the Seller,
        the
        Company or the HK Company in connection with the execution and delivery of
        this
        Agreement or the Closing Documents or the consummation by each of Warrantors
        of
        the transactions contemplated hereby or thereby.

      

      As
        used herein, the term
“Lien” means any lien, mortgage, security interest,
        charge, pledge or encumbrance of any kind.

      

      (ii)           The
        execution, delivery and performance by each of Warrantors of this Agreement
        and
        the other Closing Documents, and the consummation of the transactions hereunder
        and thereunder, will not create a default by the Company or the HK Company
        under, or give any Governmental Entity or other third party the right to
        terminate or accelerate any Commitment, any permits, licenses, approvals,
        consents and authorizations issued by any Governmental Entity (collectively,
        “Licenses”).

      

      (c)               The
        Seller does not, and to the knowledge of each of Warrantors, none of the
        officers or key employees of the Company Group currently directly or indirectly,
        owns, manages, operates, finances, or controls, or participates in the
        ownership, management, operation, financing or control of, or is associated
        as a
        director, partner, lender, investor or representative in connection with,
        any
        profit or not-for-profit business or enterprise which competes with the
        Purchaser and the Company Group.

      

      (d)             No
        representation or warranty contained in this Agreement, and no statement
        in any
        certificate, list, report, or other writing furnished to the Purchaser pursuant
        to any provision of this Agreement, contains any untrue statement of a material
        fact or omits to state a material fact that in light of the circumstances
        under
        which they were made would have made them not misleading.

      

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      

      

      ARTICLE
        V

      Representations
        and Warranties of the Purchaser

      

                 Section
        5.1                                Representations
        and Warranties.  The Purchaser represents and warrants to the
        Seller that:

      

                 (a)           Existence
        and Qualification of The Purchaser; Due Execution, Etc.  The
        Purchaser is a company duly organized, validly existing and in good standing
        under the Laws of Cayman Islands and has all requisite corporate power and
        authority to execute, deliver and perform this Agreement and the Closing
        Documents to be executed by it and to consummate the transactions contemplated
        hereby and thereby.  The execution and delivery of this Agreement and
        the Closing Documents to be executed by the Purchaser and the consummation
        by
        the Purchaser of the transactions contemplated hereby and thereby have been
        duly
        authorized by all requisite corporate action.  This Agreement and the
        Closing Documents to be executed by the Purchaser constitute valid and binding
        obligations of the Purchaser enforceable against it in accordance with their
        respective terms.

      

                 (b)           No
        Violation.  Neither the execution and delivery by the Purchaser of
        this Agreement or the Closing Documents to be executed by the Purchaser,
        nor the
        consummation of the transactions contemplated hereby or thereby: (1) violates
        or
        will violate any Order applicable to the Purchaser or (2) results or will
        result
        in a breach of or default under the Charter Documents of the
        Purchaser.

      

      ARTICLE
        VI

      

      Pre-Closing
        Covenants

      

      Section
        6.1.                         
  Covenants Regarding Closing Conditions.  The
        parties shall use their respective reasonable efforts to bring about the
        satisfaction as soon as practicable of all the conditions to Closing contained
        in Article VII.  Without limiting the generality of the
        foregoing, the parties shall apply for and diligently prosecute all
        applications for, and shall use their respective reasonable efforts promptly
        to
        obtain, (1) such consents, waivers, releases, authorizations and approvals
        from
        such Governmental Entities as shall be necessary to permit the consummation
        of
        the Contemplated Transactions (as defined in Section 7.3); (2) such consents,
        waivers, valuations, authorizations and approvals as may be required under
        Charter Documents of the Company; and (3) such consents, waivers, releases,
        authorizations and approvals from such third parties as shall be necessary
        to
        permit the consummation of the Contemplated Transactions.

      

                 Section
        6.2                                Notification.  Between
        the date of this Agreement and the Closing, the Warrantors will promptly
        notify
        the Purchaser in writing if the Warrantors become aware of any fact or condition
        that causes or constitutes a breach of any of the Warrantors’ representations
        and warranties as of the date of this Agreement, or if the Warrantors become
        aware of the occurrence after the date of this Agreement of any fact or
        condition that would (except as expressly required by this Agreement) cause
        or
        constitute a breach of any such representation or warranty had such
        representation or warranty been made as of the time of occurrence or discovery
        of such fact or condition. 

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      
 

                 Section
        6.3                                No
        Solicitation or Negotiation.  The Seller will not, nor will it
        authorize or allow the Company Group or any officer, director or employee
        of, or
        any investment banker, attorney or other advisor or representative of, the
        Seller or the Company Group to, directly or indirectly, engage in, solicit,
        initiate, or encourage any inquiries or proposals from any Person (other
        than
        the Purchaser) relating to any transaction involving the transfer or sale
        of all
        or any part of the Shares or the HK Shares, or any merger, consolidation,
        business combination, investment or financing in the Company or the HK Company
        or similar transaction involving the Company or the HK Company (any such
        transaction, a “Competing Transaction”) or participate
        in any discussions or negotiations regarding, or furnish to any Person any
        information with respect to, any Competing Transaction.  

      

      Section
        6.4                               Publicity.  No
        press release or public announcement related to this Agreement, or the
        transactions contemplated hereby or thereby, shall be issued or made without
        the
        approval of the Purchaser, unless required by Law (in the reasonable opinion
        of
        outside counsel) or other Governmental Entity, rule or regulation, in which
        case
        the Seller or the Company Group shall use reasonable efforts to give the
        Purchaser the opportunity to review such press release or announcement prior
        to
        publication and, where practicable, agree to the form and wording of such
        release or announcement.

      

      ARTICLE
        VII

      Closing
        Conditions

      

      The
        Purchaser’s obligation to purchase the Shares and to take the other actions
        required to be taken by the Purchaser at the Closing, is subject to the
        satisfaction, at or prior to the Closing, of each of the following conditions
        (any of which may be waived by the Purchaser, in whole or in part):

       

      Section
        7.1                               Accuracy
        of Representations.  Each of the Warrantors’ representations and
        warranties set forth in this Agreement must have been true and correct as
        of the
        date of this Agreement, and must be true and accurate as of the Closing Date
        as
        if made on the Closing Date (except for representations and warranties made
        as
        of a certain date, which shall be true and correct as of such
        date).

      

                 Section
        7.2                               Warrantors’
Performance.  Each of the covenants and obligations that the
        Warrantors are required to perform or to comply with pursuant to this Agreement
        at or prior to the Closing must have been duly performed and complied with,
        and
        the Warrantors must have executed and delivered each of the documents required
        to be delivered by it hereunder, including under Section 3.2 and Schedule
        3.2.

      

                 Section
        7.3                              
No Injunction.  Since the date of this Agreement, there must
        not be in effect any injunction or other Order issued by a court of competent
        jurisdiction restraining or prohibiting the consummation of the transactions
        contemplated by this Agreement, or in any other Closing Document (the
“Contemplated Transactions”).

       

      Section
        7.4                              
Non-Competition, Confidentiality and Labor Agreements  Each of
        the management personnel and key employees of the HK Company as designated
        by
        the Purchaser has entered into a 2-year Non-Competition Agreement after the
        later of the termination of his or her employment with the HK Company or
        the
        expiration of the three (3) year period after this Closing, Non-solicitation
        and
        Confidentiality Agreement and a 3-year Labor Agreement with the HK Company
        in
        which he or she agrees to commit substantially all of his or her working
        time to
        the HK Company in form and substance reasonably satisfactory to the Purchaser,
        and he or she shall not conduct any other business or transfer or assign
        any
        business or employees of the HK Company to a third party.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      
 

      Section
        7.5                             
Board Resolution.  Board resolutions have been passed approving
        the transfer of all the Shares held by the Seller to the Purchaser upon stamping
        and due presentation.

      

      Section
        7.6                             
No Prohibition.  The proposed Transfer of the Shares
        contemplated hereunder will not contravene, or materially conflict with,
        or
        result in a violation of any applicable Law or Order.

      

      Section
        7.7                              
No Material Adverse Event.  There shall have been no Material
        Adverse Events with respect to the Company Group since the date
        hereof.

       

      Section
        7.8                            
Due Diligence.  The Purchaser shall have completed its
        business, legal, financial and other due diligence review on the Company
        Group
        and its conditions and affairs and the results of such review are to the
        Purchaser’s satisfaction.

      

      ARTICLE
        VIII

      Post
        Closing Covenants

      

       

      Section
        8.1                              
Maintenance of Management Personnel.  The Seller shall procure
        Xiaokun Deng as the senior management personnel of the HK Company to continue
        working for the HK Company within 36 months after the Closing.

       

      

                 Section
        8.2                               
Endeavor to Growth of Business.  The Purchaser shall use
        commercially reasonable efforts to grow the Business, and to assist the HK
        Company in achieving the best economic results and efficiency in operational
        and
        financial administrations.

      
 

      

      

      ARTICLE
        IX

      Termination
        Rights

      

                 Section
        9.1                                Termination
        Events.  This Agreement may, by notice given prior to or at the
        Closing, be terminated:

      

      (a)           by
        mutual written consent of the Purchaser, the Seller;

      

      (b)           by
        the Purchaser, if any of the conditions in Article VII has not been satisfied
        as
        of the Closing or if satisfaction of any such condition is or becomes impossible
        (other than through the failure of the Purchaser to comply with its obligations
        under this Agreement) and the Purchaser has not waived such condition at
        or
        before the Closing;

       

      (c)           by
        either the Purchaser, on the one hand, or the Seller, on the other hand,
        if the
        other party (or parties) has materially breached their obligations hereunder
        such that the conditions set forth in Article VII (as appropriate) cannot
        be
        satisfied within 10 days following receipt of notice of a breach from the
        non-breaching party;

       

                 (d)           by
        either the Purchaser, on the one hand, or the Seller, on the other hand,
        if the
        Closing has not occurred (other than through the failure of any party seeking
        to
        terminate this Agreement to comply fully with its obligations under this
        Agreement) on or before August 31, 2007 or such later date as the parties
        may
        mutually agree upon in writing; or

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      
 

      (e)           by
        either the Purchaser, on the one hand, or the Seller, on the other hand,
        if any
        court of competent jurisdiction or any Governmental, Entity shall have issued
        an
        Order or taken any other action permanently enjoining, restraining or otherwise
        prohibiting the Transfer of the Shares.

      

                 Section
        9.2                                Procedures
        for Termination.  In the event of termination by the Seller, on
        the one hand or the Purchaser, on the other hand, pursuant to Section 9.1,
        written notice thereof shall forthwith be given to the other parties in
        accordance with Section 10.8, and the Contemplated Transactions shall be
        terminated without further action by any party.

      

      ARTICLE
        X

      Miscellaneous.

      

                 Section
        10.1                              Entire
        Agreement; Amendment.  This Agreement and the documents referred
        to herein constitute the entire agreement among the parties with respect
        to the
        subject matter of this Agreement.  Any prior or contemporaneous
        agreement, discussion, understanding or correspondence among the parties
        (including any prior representations or warranties given by the parties)
        regarding the subject matter of this Agreement is superseded by this
        Agreement.

      

                 Section
        10.2                              Amendments.  Any
        term of this Agreement may be amended only with the written consent of the
        parties hereto.

      

                 Section
        10.3                              Successors
        and Assigns.  This Agreement shall inure to the benefit of and be
        binding upon the parties hereto, and their respective successors and permitted
        assigns.  This Agreement is freely assignable by the Purchaser after
        the Closing Date but may not be assigned by the Seller without the prior
        written
        consent of the Purchaser; provided, however, that any such assignment by
        the
        Purchaser shall not relieve it of its obligations hereunder.

      

                 Section
        10.4                              Counterparts.  This
        Agreement may be executed in one or more counterparts, each of which shall
        be
        deemed to be an original for all purposes and all of which together shall
        constitute one and the same instrument.

      

                 Section
        10.5                              Headings
        and Section References.  The headings of the sections and
        paragraphs of this Agreement are included for convenience only and are not
        intended to be a part of, or to affect the meaning or interpretation of,
        this
        Agreement.  All section references herein, unless otherwise clearly
        indicated, are to sections within this Agreement.

      

                 Section
        10.6                              Waiver.  No
        failure or delay by either the Purchaser, on the one hand or the Seller,
        on the
        other hand, in exercising any right, power or privilege hereunder shall operate
        as a waiver thereof; nor shall any single or partial exercise thereof preclude
        any other or further exercise thereof or the exercise of any other right,
        power
        or privilege.  The rights and remedies herein provided are cumulative
        and not exclusive of any rights or remedies otherwise provided by
        law.

      

                 Section
        10.7                              Expenses.  Except
        as otherwise specifically provided for in this Agreement the Seller and the
        Purchaser shall each pay all costs and expenses incurred by it or on its
        behalf
        in connection with this Agreement and the transactions contemplated hereby,
        including, without limitation, fees and expenses of its own financial
        consultants, accountants and counsel.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      
 

                 Section
        10.8                              Notices.  Unless
        otherwise provided, any notice required or permitted under this Agreement
        shall
        be given in writing and shall be deemed effectively given upon personal delivery
        to the party to be notified or on the 10th day after the date mailed, by
        registered or certified mail, postage prepaid and addressed to the party
        to be
        notified at the address indicated for such party on the signature page hereof,
        or at such other address as such party may designate by ten (10) days' advance
        written notice to the other parties, or on the first business day following
        the
        date of transmission by facsimile.

      

      Section
        10.9                             Governing
        Law and Arbitration.  This Agreement and the legal relations among
        the parties hereto shall be construed in accordance with, and all disputes,
        controversies or claims arising out of or in connection with this Agreement
        or
        the breach, termination or invalidity thereof (collectively,
“Disputes”) hereunder shall be governed by, the laws
        of Hong Kong without regard to conflicts of laws principles thereof.  In
        the event of a Dispute, the parties shall use their good faith efforts to
        resolve the same.  If no resolution can be reached through such efforts
        within 30 days from the date on which one party first notifies the other
        party
        in writing of the existence of a Dispute, then the Dispute shall be settled
        by
        arbitration in accordance with the Rules of Arbitration of the Hong Kong
        International Arbitration Center by three arbitrators appointed in accordance
        with the said Rules (the “Arbitrators”). The
        arbitration shall be conducted by the Arbitrators in English and shall be
        held
        in Hong Kong.  Each party hereby submits to the jurisdiction of the
        Arbitrators, and expressly and irrevocably waives any claim or defense based
        on
        any alleged lack of personal jurisdiction, improper venue, forum non conveniens,
        or any similar basis with respect to such arbitration.  The
        arbitration award shall be final and binding upon the parties, and the parties
        agree to be bound thereby and to act accordingly.  The costs of arbitration
        and the costs of enforcing the arbitration award (including in each case
        witness
        expenses and reasonable attorneys’ fees and disbursements) shall be borne by the
        losing party, unless otherwise determined by the arbitration award.  In any
        arbitration proceeding, any legal proceeding to enforce any arbitration award
        and in any legal action between the parties pursuant to or relating to this
        Agreement, each party expressly waives any defense based on the fact or
        allegation that it is an agency or instrumentality of a sovereign state. 
When any Dispute occurs and when any Dispute is under arbitration or any
        other
        proceedings, the parties shall continue to exercise their respective rights,
        and
        fulfill their obligations under this Agreement.

      

                 Section
        10.10                            Severability.  If
        any provisions hereof shall be held by any court of competent jurisdiction
        to be
        illegal, void, or unenforceable, such provisions shall be of no force and
        effect, but the illegality or unenforceability shall have no effect upon,
        and
        shall not impair the enforceability of, any other provision of this
        Agreement.

      

      

                 Section
        10.11                            Rights
        of Third Parties.  Nothing expressed or implied in this Agreement
        is intended or will be construed to confer upon or give any person or entity
        other than the parties hereto and their respective successors and permitted
        assigns any rights or remedies under or by reason of this Agreement or any
        transaction contemplated hereby.

      

      

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      

       

                 Section
        10.12                            Indemnification:
        Survival of Representations and Warranties.

      

                 (a)           Indemnification
        by Seller. The Seller agrees to defend, hold harmless and indemnify the
        Purchaser and its Affiliates and their respective employees, officers,
        directors, stockholders, partners and representatives from and against any
        losses, assessments, liabilities, claims, damages, costs and expenses (including
        without limitation reasonable attorneys’ fees and disbursements) which arise out
        of or relate to any actions or incidents caused by the Seller or the Company
        Group or any misrepresentation in, breach of or failure to comply with, any
        of
        the representations, warranties, covenants or agreements of any Warrantor
        contained in this Agreement, or in any other Closing Document or in any
        certificate or other instrument or document furnished or to be furnished
        by any
        Seller or other Warrantors pursuant to this Agreement or any of the Closing
        Documents or in connection with the transactions contemplated hereby or thereby,
        or which are referred to hereinafter as the “Purchaser’s
        Losses.”

      

                 (b)           Survival
        of Representations and Warranties. The Warrantors’ and the Purchaser’s
        representations and warranties under this Agreement, and the indemnification
        obligations arising solely from such representations and warranties under
        Section 10.12(a), respectively, shall survive the Closing and shall expire
        and
        terminate on the date(s) ninety (90) calendar days following the expiration
        of
        the maximum applicable statutes of limitations applicable to any claim giving
        rise to the Purchaser’s Losses, to which such representations and warranties
        relate.  Notwithstanding the foregoing, the termination of the
        representations and warranties as aforesaid shall not affect the rights of
        a
        party in respect of any claim made by such party prior to such
        termination.

      

                 (c)           Procedures.

      

      (i)           In
        the event that any Legal Proceeding shall be threatened or instituted in
        respect
        to which indemnification may be sought by one party hereto from another party
        under the provisions of this Section 10.12, the party seeking indemnification
        (“Indemnitee”) shall, reasonably promptly after
        acquiring actual knowledge of such threatened or instituted Legal Proceeding,
        cause written notice in reasonable detail of such threatened or instituted
        Legal
        Proceeding and which is covered by this indemnification, to be forwarded
        to the
        other party from which indemnification is being sought
        (“Indemnitor”), provided, however, that the failure to
        provide such notice as of any particular date as aforesaid will not affect
        any
        rights to indemnification hereunder, except to the extent, and only to such
        extent, that such failure to provide such notice actually and materially
        prejudices the Indemnitor’s ability to adequately defend such Legal
        Proceeding.

      

                            (ii)           In
        the event of the initiation of any Legal Proceeding against an Indemnitee
        by a
        third party, the Indemnitor shall have the absolute right after the receipt
        of
        the notice described in Section 10.12(c)(i), at its option and at its own
        expense, to be represented by counsel of its choice, and (subject to Section
        10.12(c)(iii)) to defend against, negotiate, settle or otherwise deal with
        any
        Legal Proceeding or demand that relates to any Purchaser’s Losses, indemnified
        against hereunder, and, in such event, the Indemnitee will reasonably cooperate
        with the Indemnitor and its representatives in connection with such defense,
        negotiation, settlement or dealings (and the Indemnitee’s costs and expenses
        arising therefrom or relating thereto shall constitute Purchaser’s Losses, if
        the Indemnitee is the Purchaser); provided, however, that the Indemnitee
        may
        directly participate in any such Legal Proceeding so defended with counsel
        of
        its choice at its own expense, except that, if the Indemnitor fails to take
        reasonable steps necessary to defend diligently such third party claim within
        15
        business days after receiving written notice from the Indemnitee that the
        Indemnitee reasonably believes the Indemnitor has failed to take such steps
        or
        if the Indemnitor has not undertaken fully to indemnify the Indemnitee in
        respect of all such Purchaser’s Losses, relating to the matter and as required
        hereunder, the Indemnitee may assume its own defense, and, in such event
        (a) the
        Indemnitor will be liable for all Purchaser’s Losses, reasonably paid or
        incurred in connection therewith, and (b) the Indemnitor shall, in any case,
        reasonably cooperate, at its own expense, with the Indemnitee and its
        representatives in connection with such defense.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      
 

                            (iii)           Without
        the prior written consent of the Indemnitee, which shall not be unreasonably
        withheld, the Indemnitor will not enter into any settlement of any third
        party
        claim which would lead to Liability or create any financial or other obligation
        on the part of the Indemnitee for which the Indemnitee is not entitled to
        indemnification hereunder or which would otherwise adversely affect the Assets
        or the Business.  If a firm offer is made to settle a third party
        claim without leading to Liability or the creation of a financial or other
        obligation on the part of the Indemnitee for which the Indemnitee is not
        entitled to indemnification hereunder and the Indemnitor desires to accept
        and
        agree to such offer, the Indemnitor will give written notice to the Indemnitee
        to that effect.  If the Indemnitee notifies the Indemnitor that it
        does not consent to such firm offer within 10 calendar days after its receipt
        of
        such notice from the Indemnitor, the Indemnitee may continue to contest or
        defend such third party claim and, in such event, the maximum Liability of
        the
        Indemnitor as to such third party claim will not exceed the amount of such
        settlement offer, plus the Purchaser’s Losses, reasonably paid or incurred by
        the Indemnitee through the end of such 10-calendar day period.

      

                            (iv)           After
        any final judgment or award shall have been rendered by a Governmental Entity
        of
        competent jurisdiction and the time in which to appeal therefrom has expired,
        or
        a settlement shall have been consummated, or the Indemnitee and the Indemnitor
        shall have arrived at a mutually binding agreement with respect to each separate
        matter alleged to be indemnified by the Indemnitor hereunder, the Indemnitee
        shall forward to the Indemnitor notice of any sums due and owing by it with
        respect to such matter, and the Indemnitor shall pay all of the sums so owing
        to
        the Indemnitee by wire transfer or certified or bank cashier’s check within 30
        days after the date of such notice.  Any and all Purchaser’s Losses
        other than those described in the preceding sentence (including Purchaser’s
        Losses incurred in the absence of any threatened or pending Legal Proceeding,
        or
        Purchaser’s Losses incurred after any such Legal Proceeding has been threatened
        or instituted but prior to the rendering of any final judgment or award in
        connection therewith), shall be paid by the Indemnitor on a current basis,
        and,
        without limiting the generality of the foregoing, the Indemnitee shall have
        the
        right to invoice the Indemnitor for such Purchaser’s Losses, as frequently as it
        deems appropriate, and the amount of any such Purchaser’s Losses, which are
        described or listed in any such invoice shall be paid to the Indemnitee,
        by wire
        transfer or certified or bank cashier’s check, within 30 days after the date of
        such invoice.

      

                 Section
        10.13                            Certain
        Definitions and Interpretive Matters.

      

                 (a)           Certain
        Definitions.  The following terms shall have the following
        meanings:

      

      
        	
                 

              	
                (i)

              	
                “Affiliate”
                  means, with respect to a Person, any other Person that, directly
                  or
                  indirectly, controls, is controlled by or is under common control
                  with
                  such Person.

              

      

      

      
        	
                 

              	
                (ii)

              	
                “Assets”
                  means all of the properties, rights, claims, contracts and assets
                  relating
                  to the business, tangible or intangible, choate or inchoate, and
                  wherever
                  located, of the Company Group.

              

      

       

      
        	
                 

              	
                (iii)

              	
                “Charter
                  Documents” means, with respect to any entity, means the
                  memorandum and articles of association, corporate charter, certificate
                  or
                  articles of incorporation or formation, by-laws, partnership or
                  operating
                  agreement, and similar documents of such entity, as
                  applicable.

              

      

      

      
        	
                 

              	
                (iv)

              	
                “Commitments”
                  means all contracts, agreements, other rights of a contractual
                  nature and
                  franchises of the Company Group.

              

      

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 

              	
                (v)

              	
                “Governmental
                  Entity” means any domestic or foreign court, government,
                  governmental agency, authority, entity or instrumentality.
                  

              

      

      

      
        	
                 

              	
                (vi)

              	
                “Laws”
                  shall mean any federal, state, county or local statute, law, ordinance,
                  rule, regulation, order, judgment or
                  ruling.

              

      

      

      
        	
                 

              	
                (vii)

              	
                “Material
                  Adverse Effect” means any fact, circumstance, event, change
                  or effect that is materially adverse to (a) the Company, the HK
                  Company,
                  the Assets or the financial condition of the Business or (b) the
                  ability
                  to operate the Business as operated by the Company Group as of
                  the Closing
                  Date.

              

      

      

      
        	
                 

              	
                (viii)

              	
                “Person”
                  means any person, company, corporation, joint venture, partnership,
                  legal
                  association, or other entity, including any Governmental
                  Entity.

              

      

      

      
        	
                 

              	
                (ix)

              	
                “Schedule”
                  shall mean the Schedules, inclusive, attached hereto, which Schedules
                  are
                  incorporated herein and made a part hereof, fully as if the same
                  were
                  herein set forth in their entirety.

              

      

      

      
        	
                 

              	
                (x)

              	
                “Warrantors”
                  means the Seller, the Company and the HK
                  Company.

              

      

      

      Unless
        the context otherwise requires, (i) each accounting term not otherwise defined
        in this Agreement has the meaning assigned to it in accordance with the United
        States Generally Accepted Accounting Principles, consistently applied
        (“US GAAP”), (ii) “or” is disjunctive but not
        necessarily exclusive, and (iii) all references to “US$” or dollar amounts mean
        lawful currency of the United States of America.

      

                 (b)           Interpretive
        Matters.  No provision of this Agreement will be interpreted in
        favor of, or against, any of the parties hereto by reason of the extent to
        which
        any such party or its counsel participated in the drafting thereof or by
        reason
        of the extent to which any such provision is inconsistent with any prior
        draft
        hereof or thereof.

      

      [The
        remainder of this page has been intentionally left blank]

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      
 

      IN
        WITNESS WHEREOF the parties have executed and delivered this Agreement as
        of the
        date first set forth above.

      

      

      Purchaser

      

      Comtech
        Group

      

      /s/
        Jeffrey Kang

      Name:
        Jeffrey Kang

      Title:
        CEO

      Address:
        PO Box 309GT, Ugland House, South Church Street, Grand Cayman, Cayman
        Islands

      

      

      Seller

      

      Broadwell
        Group Ltd.

       

      /s/                

      Name:

      Title:
        Shareholder

      Address:
        OMC Chambers, P.O. Box 3152, Road Town, Tortola, British Virgin
        Islands

      

      

      Company

      

      Broad
        Wise Holdings Limited

      

      /s/                

      Name:

      Title:
        Director

      
        	
                 

              	
                Address:
                  P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola,
                  the
                  British Virgin Islands

              

      

      

      

      HK
        Company

      

      Comtech
        Broadband Corporation Limited

      

      /s/                

      Name:

      Title:
        Director

      Address:
        Suite 514 Manhattan Center, 8 Kwai Cheong Road, Kwaichung, New Territories,
        Hong
        Kong

      

      

      

      

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      

      Appendix
        1

      

      Closing
        Documents

      

      

      
        	
                1.

              	
                an
                  Officers’ Certificate of the Seller regarding the accuracy of the
                  Warrantors’ representations and warranties, in form reasonably acceptable
                  to the Purchaser, and an Officers’ Certificate of the Company certifying
                  Closing Conditions set forth in Article VII have been
                  satisfied;

              

      

      

      
        	
                2.

              	
                valid
                  share certificates for all of the issued Shares of the Company
                  under its
                  name or other evidence satisfactory to the Purchaser that the above
                  said
                  shares are legally and beneficially owned by the
                  Seller;

              

      

       

      
        	
                3.

              	
                valid
                  instrument(s) of transfer duly executed by the Seller in relation
                  to all
                  the issued Shares of the Company under its name in favour of the
                  Purchaser;

              

      

       

      
        	
                4.

              	
                evidence
                  of all necessary updates to the Company’s Register of Members with respect
                  to the Transfer of the Shares to the
                  Purchaser;

              

      

      

      
        	
                5.

              	
                valid
                  share certificates for all of the issued HK Shares of the HK Company
                  under
                  its name or other evidence satisfactory to the Purchaser that the
                  above
                  said shares are legally and beneficially owned by the
                  Company;

              

      

      

      
        	
                6.

              	
                valid
                  instrument(s) of transfer duly executed by the Seller in relation
                  to all
                  the issued HK Shares of the HK Company under its name in favour
                  of the
                  Company; and

              

      

      

      
        	
                7.

              	
                evidence
                  of all necessary updates to the HK Company’s Register of Members with
                  respect to the Transfer of the HK Shares to the
                  Company.

              

      

      
 

       

       

       

      13

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