Document:

SECURITIES
        PURCHASE AGREEMENT

       

      SECURITIES
        PURCHASE AGREEMENT
        (the
“Agreement”),
        dated
        as of August 28, 2008, by and among Universal Travel Group, a Nevada
        corporation, with headquarters located at Shenzhen, the People’s Republic of
        China (the “Company”),
        and
        the investors listed on the Schedule of Buyers attached hereto (individually,
        a
“Buyer”
and
        collectively, the “Buyers”).
        The
        Company and the Buyers shall collectively be referred to as the “Parties”
and
        individually, a “Party”.

       

      BACKGROUND

       

      A.  The
        Company and each Buyer is executing and delivering this Agreement in reliance
        upon the exemption from securities registration afforded by Section 4(2)
        of the
        Securities Act of 1933, as amended (the “1933
        Act”),
        and
        Rule 506 of Regulation D (“Regulation
        D”)
        as
        promulgated by the United States Securities and Exchange Commission (the
        “SEC”)
        under
        the 1933 Act.

       

      B.  Each
        Buyer wishes to purchase, and the Company wishes to sell, upon the terms
        and
        conditions stated in this Agreement, (i) that aggregate number of shares
        of the
        Common Stock, par value $0.001 per
        share, of the Company (the “Common
        Stock”),
        set
        forth opposite such Buyer's name in column (3) on the Schedule of Buyers
        (which
        aggregate amount for all Buyers together shall be 4,588,708 shares of Common
        Stock and shall collectively be referred to herein as the “Common
        Shares”)
        and
        (ii) warrants, in substantially the form attached hereto as Exhibit
        A
        (the
“Warrants”),
        to
        acquire up to that number of additional shares of Common Stock set forth
        opposite such Buyer's name in column (4) of the Schedule of Buyers (which
        aggregate amount shall be Warrants covering 2,294,356 shares of Common Stock
        and, as exercised, shall collectively be referred to herein as the “Warrant
        Shares”).
        

       

      C.  Contemporaneously
        with the execution and delivery of this Agreement, the parties hereto are
        executing and delivering a Registration Rights Agreement, substantially in
        the
        form attached hereto as Exhibit
        B
        (the
“Registration
        Rights Agreement”)
        pursuant to which the Company has agreed to provide certain registration
        rights
        with respect to the Common Shares, and the Warrant Shares under the 1933
        Act and
        the rules and regulations promulgated thereunder, and applicable state
        securities laws.

       

      D.  Contemporaneously
        with the execution and delivery of this Agreement, the parties hereto, together
        with Sichenzia Ross Friedman Ference LLP (“Escrow
        Agent”),
        are
        executing and delivering a Closing Escrow Agreement, substantially in the
        form
        attached hereto as Exhibit
        C
        (the
“Closing
        Escrow Agreement”)
        pursuant to which the Buyers shall deposit their Purchase Price (as defined
        below) with the Escrow Agent to be applied to the transactions contemplated
        hereunder.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      E.  Contemporaneously
        with the execution and delivery of this Agreement, the Company, the Buyers
        and
        the Company’s CEO, Ms. Jiangping Jiang, and Sichenzia Ross Friedman Ference LLP
        (“Make
        Good Escrow
        Agent”),
        are
        executing and delivering a Make Good Escrow Agreement, substantially in the
        form
        attached hereto as Exhibit
        D
        (the
“Make
        Good Escrow Agreement”);
        and
        the Company and its CEO, Ms. Jiangping Jiang, are executing and delivering
        a
        Lock-Up Agreement, substantially in the form attached hereto as Exhibit
        E.
        

       

      F.  The
        Common Shares, the Warrants and the Warrant Shares collectively are referred
        to
        herein as the “Securities”.

       

      NOW,
        THEREFORE,
        the
        Company and each Buyer hereby agree as follows:

       

      
        
          1.
            PURCHASE
            AND SALE OF COMMON SHARES AND WARRANTS.

           

        

      

      (a)  Purchase
        of Common Shares and Warrants.
        Subject
        to the satisfaction (or waiver) of the conditions set forth in Sections 6
        and 7
        below, the Company shall issue and sell to each Buyer, and each Buyer severally,
        but not jointly, agrees to purchase from the Company on the Closing Date
        (as
        defined below), the number of Common Shares as is set forth opposite such
        Buyer's name in column (3) on the Schedule of Buyers, along with Warrants
        to
        acquire up to that number of Warrant Shares as is set forth opposite such
        Buyer's name in column (4) on the Schedule of Buyers (the “Closing”).
        The
        Closing shall occur on the Closing Date at the offices of Sichenzia Ross
        Friedman Ference LLP, located at 61 Broadway, 32nd
        Floor,
        New York, NY 10006 or such other venue as the Parties may so
        designate.

       

      (b) Purchase
        Price.
        The
        purchase price for the Common Shares and related Warrants to be purchased
        by
        each Buyer at the Closing shall be the amount set forth opposite such Buyer’s
        name in column (5) of the Schedule of Buyers (the “Purchase
        Price”)
        which
        shall be equal to the amount of $1.55 per
        Common Share and a related Warrant for the purchase of one-half a Common
        Share,
        times the number of Common Shares purchased. 

       

      (c) Closing
        Date.
        The
        date and time of the Closing (the “Closing
        Date”)
        shall
        be 10:00 a.m., New York City Time, on August 28, 2008 (or such other date
        and
        time as is mutually agreed to by the Company and each Buyer).

       

      (d) Form
        of Payment.
        On the
        Closing Date, (i) each Buyer shall pay its respective Purchase Price to the
        Company for the Common Shares and Warrants to be issued and sold to such
        Buyer
        at the Closing, either (A) by wire transfer of immediately available funds
        in
        accordance with the Company's written wire instructions, or (B) by bank
        certified checks made payable to the Company and (ii) the Company shall
        deliver to each Buyer (A) one or more stock certificates, evidencing the
        number
        of Common Shares such Buyer is purchasing as is set forth opposite such Buyer’s
        name in column (3) of the Schedule of Buyers, and (B) a Warrant pursuant
        to
        which such Buyer shall have the right to acquire such number of Warrant Shares
        as is set forth opposite such Buyer’s name in column (4) of the Schedule of
        Buyers, in all cases duly executed on behalf of the Company and registered
        in
        the name of such Buyer. 

       

      
        
          
          

        

        
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          2.
            BUYER'S
            REPRESENTATIONS AND WARRANTIES.

           

        

      

      Each
        Buyer represents and warrants with respect to only itself that: 

       

      (a) Organization
        and Good Standing of Buyers.
        If the
        Buyer is an entity, such Buyer is a corporation, partnership or limited
        liability company duly incorporated or organized, validly existing and in
        good
        standing under the laws of the jurisdiction of its incorporation or
        organization.

       

      (b) Authorization
        and Power.
        Each
        Buyer has the requisite power and authority to enter into and perform the
        Transaction Documents (as defined below) to which such Buyer is a party and
        to
        purchase the Shares and Warrants being sold to it hereunder. The execution,
        delivery and performance of the Transaction Documents to which such Buyer
        is a
        party by such Buyer and the consummation by it of the transactions contemplated
        hereby and thereby have been duly authorized by all necessary corporate or
        partnership action, and no further consent or authorization of such Buyer
        or its
        Board of Directors, stockholders, or partners, as the case may be, is required.
        The Transaction Documents to which such Buyer is a party have been duly
        authorized, executed and delivered by such Buyer and constitutes, or shall
        constitute when executed and delivered, a valid and binding obligation of
        such
        Buyer enforceable against such Buyer in accordance with the terms
        thereof.

       

      (c) No
        Public Sale or Distribution.
        Such
        Buyer is (i) acquiring the Common Shares and the Warrants and (ii) upon exercise
        of the Warrants will acquire the Warrant Shares issuable upon exercise thereof,
        in the ordinary course of business for its own account and not with a view
        towards, or for resale in connection with, the public sale or distribution
        thereof, except pursuant to sales registered or exempted under the 1933 Act
        and
        such Buyer does not have a present arrangement to effect any distribution
        of the
        Securities to or through any Person or entity; provided,
        however,
        that by
        making the representations herein, such Buyer does not agree to hold any
        of the
        Securities for any minimum or other specific term and reserves the right
        to
        dispose of the Securities at any time in accordance with or pursuant to a
        registration statement or an exemption under the 1933 Act. 

       

      (d) Accredited
        Investor Status.
        Such
        Buyer is an “accredited investor” as that term is defined in Rule 501(a) of
        Regulation D. Such Buyer is not required to be registered as a broker-dealer
        under Section 15 of the Exchange Act and such Buyer is not a broker-dealer,
        nor
        an affiliate of a broker-dealer.

       

      (e) Reliance
        on Exemptions.
        Such
        Buyer understands that the Securities are being offered and sold to it in
        reliance on specific exemptions from the registration requirements of United
        States federal and state securities laws and that the Company is relying
        in part
        upon the truth and accuracy of, and such Buyer's compliance with, the
        representations, warranties, agreements, acknowledgments and understandings
        of
        such Buyer set forth herein in order to determine the availability of such
        exemptions and the eligibility of such Buyer to acquire the
        Securities.

       

      
        
          
          

        

        
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      (f) Information.
        Such
        Buyer and its advisors, if any, have been furnished with all materials relating
        to the business, finances and operations of the Company and materials relating
        to the offer and sale of the Securities which have been requested by such
        Buyer
        as it has deemed necessary or appropriate to conduct its due diligence
        investigation and has sufficient knowledge and experience in investing in
        companies similar to the Company in terms of the Company’s stage of development
        so as to be able to evaluate the risks and merits of its investment in the
        Company. Such Buyer and its advisors, if any, have been afforded the opportunity
        to ask questions of the Company. Neither such inquiries nor any other due
        diligence investigations conducted by such Buyer or its advisors, if any,
        or its
        representatives shall modify, amend or affect such Buyer's right to rely
        on the
        Company's representations and warranties contained herein. Each Buyer further
        acknowledges that such Buyer understands the high risks of investing in
        companies domiciled and/or which operate primarily in the People’s Republic of
        China and that the purchase of the Securities involves substantial risks
        and is
        able to afford a complete loss of such investment. Such Buyer has sought
        such
        accounting, legal and tax advice as it has considered necessary to make an
        informed investment decision with respect to its acquisition of the
        Securities.

       

      (g) No
        Governmental Review.
        Such
        Buyer understands that no United States federal or state agency or any other
        government or governmental agency has passed on or made any recommendation
        or
        endorsement of the Securities or the fairness or suitability of the investment
        in the Securities nor have such authorities passed upon or endorsed the merits
        of the offering of the Securities.

       

      (h) Transfer
        or Resale.
        Such
        Buyer understands that except as provided in the Registration Rights Agreement:
        (i) the Securities have not been and are not being registered under the 1933
        Act
        or any state securities laws, and may not be offered for sale, sold, assigned
        or
        transferred unless (A) subsequently registered thereunder, (B) such Buyer
        shall
        have delivered to the Company an opinion of counsel, in a generally acceptable
        form, to the effect that such Securities to be sold, assigned or transferred
        may
        be sold, assigned or transferred pursuant to an exemption from such
        registration, or (C) such Buyer provides the Company with reasonable assurance
        that such Securities can be sold, assigned or transferred pursuant to Rule
        144
        or Rule 144A promulgated under the 1933 Act, as amended, (or a successor
        rule
        thereto) (collectively, “Rule
        144”);
        (ii)
        any sale of the Securities made in reliance on Rule 144 may be made only
        in
        accordance with the terms of Rule 144 and further, if Rule 144 is not
        applicable, any resale of the Securities under circumstances in which the
        seller
        (or the Person (as defined in Section 3(s)) through whom the sale is made)
        may
        be deemed to be an underwriter (as that term is defined in the 1933 Act)
        may
        require compliance with some other exemption under the 1933 Act or the rules
        and
        regulations of the SEC thereunder; and (iii) neither the Company nor any
        other
        Person is under any obligation to register the Securities under the 1933
        Act or
        any state securities laws or to comply with the terms and conditions of any
        exemption thereunder. Notwithstanding the foregoing, the Securities may be
        pledged in connection with a bona fide margin account or other loan secured
        by
        the Securities and such pledge of Securities shall not be deemed to be a
        transfer, sale or assignment of the Securities hereunder, and no Buyer effecting
        a pledge of Securities shall be required to provide the Company with any
        notice
        thereof or otherwise make any delivery to the Company pursuant to this Agreement
        or any other Transaction Document (as defined below), including, without
        limitation, this Section 2(h); provided, that in order to make any sale,
        transfer or assignment of Securities, such Buyer and its pledgee makes such
        disposition in accordance with or pursuant to a registration statement or
        an
        exemption under the 1933 Act. 

       

      
        
          
          

        

        
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      (i) Legends.
        Such
        Buyer understands that the certificates or other instruments representing
        the
        Common Shares and the Warrant Shares and, until such time as the resale of
        the
        Common Shares and the Warrant Shares have been registered under the 1933
        Act as
        contemplated by the Registration Rights Agreement, the stock certificates
        representing the Warrant Shares, except as set forth below, shall bear any
        legend as required by the “blue sky” laws of any state and a restrictive legend
        in substantially the following form (and a stop-transfer order may be placed
        against transfer of such stock certificates):

       

      NEITHER
        THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR
        THE
        SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN][THE
        SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN]
        REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
        SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
        OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT
        FOR
        THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
        OF COUNSEL IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED
        UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER
        SAID
        ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION
        WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED
        BY THE SECURITIES.

      

      The
        legend set forth above shall be removed and the Company shall issue a
        certificate without such legend to the holder of the Securities upon which
        it is
        stamped or issue to such holder by electronic delivery at the applicable
        balance
        account at The Depository Trust Company (“DTC”),
        if,
        unless otherwise required by state securities laws, (i) such Securities are
        registered for resale under the 1933 Act, (ii) in connection with a sale,
        assignment or other transfer, such holder provides the Company with an opinion
        of counsel reasonably satisfactory to the Company, in a generally acceptable
        form, to the effect that such sale, assignment or transfer of the Securities
        may
        be made without registration under the applicable requirements of the 1933
        Act
        and that such legend is no longer required, or (iii) such holder provides
        the
        Company with reasonable assurance that the Securities can be sold, assigned
        or
        transferred pursuant to Rule 144 or Rule 144A. The Company shall be responsible
        for the fees of its transfer agent and all DTC fees associated with such
        issuance. If the Company shall fail for any reason or for no reason to issue
        to
        the holder of the Securities within three (3) Trading Days after the occurrence
        of any of (i) through (iii) above, a certificate without such legend or to
        issue
        such Securities to such holder by electronic delivery at the applicable balance
        account at DTC, and if on or after such Trading Day the holder purchases
        (in an
        open market transaction or otherwise) shares of Common Stock to deliver in
        satisfaction of a sale by the holder of such Securities that the holder
        anticipated receiving without legend from the Company (a “Buy-In”),
        then
        the Company shall, within three (3) Business Days after the holder's request
        and
        in the holder's discretion, either (i) pay cash to the holder in an amount
        equal
        to the holder's total purchase price (including brokerage commissions, if
        any)
        for the shares of Common Stock so purchased (the “Buy-In
        Price”),
        at
        which point the Company's obligation to deliver such unlegended Securities
        shall
        terminate, or (ii) promptly honor its obligation to deliver to the holder
        such
        unlegended Securities as provided above and pay cash to the holder in an
        amount
        equal to the excess (if any) of the Buy-In Price over the product of (A)
        such
        number of shares of Common Stock, times (B) the Closing Bid Price (as defined
        in
        the Warrants) on the date of exercise. “Trading
        Day”
is
        defined as a day on which securities are generally traded in real-time (and
        not
        under any delayed or pre-market or post-market trading) in any of the following
        markets: the Nasdaq Capital Market, the American Stock Exchange, the New
        York
        Stock Exchange, the Nasdaq National Market or the OTC Bulletin
        Board.

       

      
        
          
          

        

        
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      (j) Validity;
        Enforcement.
        This
        Agreement and other Transaction Documents as they apply to each Buyer have
        been
        duly and validly authorized, executed and delivered on behalf of such Buyer
        and
        shall constitute the legal, valid and binding obligations of such Buyer
        enforceable against such Buyer in accordance with their respective terms,
        except
        as such enforceability may be limited by general principles of equity or
        to
        applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
        and
        other similar laws relating to, or affecting generally, the enforcement of
        applicable creditors' rights and remedies. 

       

      (k) No
        Conflicts.
        The
        execution, delivery and performance by such Buyer of this Agreement and the
        Transaction Documents as they apply to each Buyer and the consummation by
        such
        Buyer of the transactions contemplated hereby and thereby will not (i) result
        in
        a violation of the organizational documents of such Buyer or (ii) conflict
        with,
        or constitute a default (or an event which with notice or lapse of time or
        both
        would become a default) under, or give to others any rights of termination,
        amendment, acceleration or cancellation of, any agreement, indenture or
        instrument to which such Buyer is a party or by which its properties or assets
        are bound, or (iii) result in a violation of any law, rule, regulation, order,
        judgment or decree (including federal and state securities laws) applicable
        to
        such Buyer, except in the case of clauses (ii) and (iii) above, for such
        conflicts, defaults, rights or violations which would not, individually or
        in
        the aggregate, reasonably be expected to have a material adverse effect on
        the
        ability of such Buyer to perform its obligations hereunder. Such Buyer is
        not
        required to obtain any consent, authorization or order of, or make any filing
        or
        registration with, any court or governmental agency in order for it to execute,
        deliver or perform any of its obligations under this Agreement or the other
        Transaction Documents to which such Buyer is a party or to purchase the Shares
        and the Warrants or acquire the Warrant Shares in accordance with the terms
        hereof.

       

      (l) Residency.
        Such
        Buyer is a resident of that jurisdiction specified below its address on the
        Schedule of Buyers.

       

      (m) Prohibited
        Transactions.
        Since
        the Buyer was approached by the Company with respect to the transactions
        contemplated hereby, neither such Buyer nor any Person acting on behalf of
        or
        pursuant to any understanding with such Buyer has, directly or indirectly,
        effected or agreed to effect any transaction in the Common Stock, including
        any
        short sale, whether or not against the box, established any “put equivalent
        position” (as defined in Rule 16a-1(h) under the Exchange Act) with respect to
        the Common Stock, granted any other right (including, without limitation,
        any
        put or call option) with respect to the Common Stock or with respect to any
        security that includes, relates to or derived any significant part of its
        value
        from the Common Stock or otherwise sought to hedge its position in the
        Securities (but not including any actions to secure available shares to borrow
        in order to effect short sales or similar transactions in the future) (each,
        a
“Prohibited
        Transaction”).
        Prior
        to the earliest to occur of (i) the termination of this Agreement or (ii)
        the
        date of the 8-K Filing as described in Section 4(i), such Buyer shall not,
        and
        shall cause any Person acting on behalf of or pursuant to any understanding
        with
        such Buyer not to, engage, directly or indirectly, in a Prohibited
        Transaction.

       

      
        
          
          

        

        
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      (n) No
        General Solicitation.
        Each
        Buyer acknowledges that the Shares and Warrants were not offered to such
        Buyer
        by means of any form of general or public solicitation or general advertising,
        or publicly disseminated advertisements or sales literature, including (i)
        any
        advertisement, article, notice or other communication published in any
        newspaper, magazine, website, or similar media, or broadcast over television
        or
        radio, or (ii) any seminar or meeting to which such Buyer was invited by
        any of
        the foregoing means of communications.

       

      (o) Independent
        Investment.
        Except
        as may be disclosed in any filings with the Securities and Exchange Commission
        by the Buyers under Section 13 and/or Section 16 of the Exchange Act, no
        Buyer
        has agreed to act with any other Buyer for the purpose of acquiring, holding,
        voting or disposing of the Shares and Warrants purchased hereunder for purposes
        of Section 13(d) under the Exchange Act, and each Buyer is acting independently
        with respect to its investment in the Shares.

       

      (p) Brokers.
        Each
        Buyer has no knowledge of any brokerage or finder’s fees or commissions that are
        or will be payable by the Company or any of its Subsidiaries to any broker,
        financial advisor or consultant, finder, placement agent, investment banker,
        bank or other Person or entity with respect to the transactions contemplated
        by
        this Agreement

       

      (q) Listing
        of Common Shares.
        Immediately upon the effectiveness of a registration statement with the SEC
        covering the Common Shares and the Warrant Shares, the Buyers shall use
        reasonable efforts to assist the Company in making an immediate application
        to a
        United States stock exchange, such as the Nasdaq Capital Market or the American
        Stock Exchange, for the listing of the Common Shares.

       

      
        
          3.
            REPRESENTATIONS
            AND WARRANTIES OF THE COMPANY.

           

        

      

      The
        Company represents and warrants to each of the Buyers that:

       

      (a) Organization
        and Qualification.
        Each of
        the Company and its “Subsidiaries”
(which
        for purposes of this Agreement means any entity in which the Company, directly
        or indirectly, owns capital stock or holds an equity or similar interest)
        are
        corporations duly organized and validly existing in good standing under the
        laws
        of the jurisdiction in which they are incorporated, and have the requisite
        corporate power and authorization to own their properties and to carry on
        their
        business as now being conducted. Each of the Company and its Subsidiaries
        is
        duly qualified to do business and is in good standing in every jurisdiction
        in
        which its ownership of property or the nature of the business conducted by
        it
        makes such qualification necessary, except to the extent that the failure
        to be
        so qualified or be in good standing would not have a Material Adverse Effect.
        As
        used in this Agreement, “Material
        Adverse Effect”
means
        any material adverse effect on the business, properties, assets, operations,
        results of operations, condition (financial or otherwise) or prospects of
        the
        Company and its Subsidiaries, taken as a whole, or on the transactions
        contemplated hereby and the other Transaction Documents or by the agreements
        and
        instruments to be entered into in connection herewith or therewith, or on the
        authority or ability of the Company to perform its obligations under the
        Transaction Documents (as defined below). The Company has no Subsidiaries
        except
        as set forth on Schedule
        3(a).
        

       

      
        
          
          

        

        
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      (b) Authorization;
        Enforcement; Validity.
        The
        Company has the requisite corporate power and authority to enter into and
        perform its obligations under this Agreement, the Registration Rights Agreement,
        the Irrevocable Transfer Agent Instructions (as defined in Section 5), the
        Warrants, the Closing Escrow Agreement, the Make Good Escrow Agreement, the
        Lock-Up Agreement and each of the other agreements entered into by the parties
        hereto in connection with the transactions contemplated by this Agreement
        (collectively, the “Transaction
        Documents”)
        and to
        issue the Securities in accordance with the terms hereof and thereof. The
        execution and delivery of the Transaction Documents by the Company and the
        consummation by the Company of the transactions contemplated hereby and thereby,
        including, without limitation, the issuance of the Common Shares and the
        Warrants and the reservation for issuance and the issuance of the Warrant
        Shares
        issuable upon exercise of any Warrant have been duly authorized by the Company's
        Board of Directors and no further consent or authorization is required by
        the
        Company, its Board of Directors or its stockholders. This Agreement and the
        other Transaction Documents have been duly executed and delivered by the
        Company, and constitute the legal, valid and binding obligations of the Company,
        enforceable against the Company in accordance with their respective terms,
        except as such enforceability may be limited by general principles of equity
        or
        applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
        or
        similar laws relating to, or affecting generally, the enforcement of applicable
        creditors' rights and remedies.

       

      (c) Issuance
        of Securities.
        The
        Common Shares and the Warrants are duly authorized and, upon issuance in
        accordance with the terms hereof, shall be validly issued and free from all
        taxes, liens and charges with respect to the issue thereof and the Common
        Shares
        shall be fully paid and nonassessable with the holders being entitled to
        all
        rights accorded to a holder of Common Stock. As of the Closing Date, the
        Company
        shall have duly authorized and reserved for issuance a number of shares of
        Common Stock which equals the number of Warrant Shares. The Company shall,
        so
        long as any of the Warrants are outstanding, take all action necessary to
        reserve and keep available out of its authorized and unissued capital stock,
        solely for the purpose of effecting the exercise of the Warrants, 100% of
        the
        number of shares of Common Stock issuable upon exercise of the Warrants.
        Upon
        exercise in accordance with the Warrants, the Warrant Shares will be validly
        issued, fully paid and nonassessable and free from all taxes, liens and charges
        with respect to the issue thereof, with the holders being entitled to all
        rights
        accorded to a holder of Common Stock. The offer and issuance by the Company
        of
        the Securities is exempt from registration under the 1933 Act.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      (d) No
        Conflicts.
        The
        execution, delivery and performance of the Transaction Documents by the Company
        and the consummation by the Company of the transactions contemplated hereby
        and
        thereby (including, without limitation, the issuance of the Common Shares
        and
        the Warrants and the reservation for issuance and issuance of the Warrant
        Shares) will not (i) result in a violation of the Articles of Incorporation
        (as
        defined below) or Bylaws (as defined below) of the Company or any of its
        Subsidiaries or (ii) conflict
        with, or constitute a default (or an event that with notice or lapse of time
        or
        both would become a default) under, or give to others any rights of termination,
        amendment, acceleration or cancellation (with or without notice, lapse of
        time
        or both) of, any agreement, credit facility, debt or other instrument
        (evidencing a Company or Subsidiary debt or otherwise) or other understanding
        to
        which the Company or any Subsidiary is a party or by which any property or
        asset
        of the Company or any Subsidiary is bound or affected,
        or
        (iii) result
        in
        a violation of any U.S. law, rule, regulation, order, judgment, injunction,
        decree or other restriction of any court or governmental authority to which
        the
        Company or a Subsidiary is subject (including federal and state securities
        laws
        and regulations and
        the
        rules and regulations of the Over-The-Counter Bulletin Board (“OTCBB”)),
        or by
        which any property or asset of the Company or a Subsidiary is bound or affected,
        except in the case of clause (ii) such as could not, individually or in the
        aggregate, have or reasonably be expected to have a Material Adverse
        Effect.

       

      (e) Consents.
        The
        Company is not required to obtain any consent, authorization or order of,
        or
        make any filing or registration with, any court, governmental agency or any
        regulatory or self-regulatory agency or any other Person in order for it
        to
        execute, deliver or perform any of its obligations under or contemplated
        by the
        Transaction Documents, in each case in accordance with the terms hereof or
        thereof (other than (x) any consent, authorization or order that has been
        obtained as of the date hereof, (y) any filing or registration that has been
        made as of the date hereof or (z) any filings which may be required to be
        made
        by the Company with the Commission or state securities administrators subsequent
        to the Closing; provided,
        that,
        for purposes of the representation made in this sentence, the Company is
        assuming and relying upon the accuracy of the relevant representations and
        agreements of the Buyers herein). All consents, authorizations, orders, filings
        and registrations which the Company is required to obtain pursuant to the
        preceding sentence have been obtained or effected on or prior to the Closing
        Date. The Company and its Subsidiaries are unaware of any facts or circumstances
        that might prevent the Company from obtaining or effecting any of the
        registration, application or filings pursuant to the preceding sentence.
        The
        Company is not in violation of any requirements of the OTCBB and has no
        knowledge of any facts that would reasonably lead to the cessation of quotations
        for the Common Stock on the OTCBB in the foreseeable future

       

      (f) Acknowledgment
        Regarding Buyer's Purchase of Securities.
        The
        Company acknowledges and agrees that each Buyer is acting solely in the capacity
        of arm's length purchaser with respect to the Transaction Documents and the
        transactions contemplated hereby and thereby and that no Buyer is (i) an
        officer
        or director of the Company, (ii) an “affiliate” of the Company (as defined in
        Rule 144) or (iii) to the knowledge of the Company, a “beneficial owner” of more
        than 10% of the shares of Common Stock (as defined for purposes of Rule 13d-3
        of
        the Securities Exchange Act of 1934, as amended (the “1934
        Act”)).
        The
        Company further acknowledges that no Buyer is acting as a financial advisor
        or
        fiduciary of the Company (or in any similar capacity) with respect to the
        Transaction Documents and the transactions contemplated hereby and thereby,
        and
        any advice given by a Buyer or any of its representatives or agents in
        connection with the Transaction Documents and the transactions contemplated
        hereby and thereby is merely incidental to such Buyer's purchase of the
        Securities. The Company further represents to each Buyer that the Company's
        decision to enter into the Transaction Documents has been based solely on
        the
        independent evaluation by the Company and its representatives.

       

      
        
          
          

        

        
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      (g) No
        General Solicitation; Placement Agent's Fees.
        Neither
        the Company, nor any of its affiliates, nor any Person acting on its or their
        behalf, has engaged in any form of general solicitation or general advertising
        (within the meaning of Regulation D) in connection with the offer or sale
        of the
        Securities. The Company shall be responsible for the payment of any placement
        agent's fees, financial advisory fees, or brokers' commissions (other than
        for
        persons engaged by any Buyer or its investment advisor) relating to or arising
        out of the transactions contemplated hereby. The Company shall pay, and hold
        each Buyer harmless against, any liability, loss or expense (including, without
        limitation, attorney's fees and out-of-pocket expenses) arising in connection
        with any such claim. For the purposes of this Agreement and the other
        Transaction Documents and the transactions contemplated hereby and thereby,
        the
        Parties agree and acknowledge, jointly and severally, that no agent’s fees,
        financial advisory fees or brokers’ commission whatsoever is/are due to any
        third party by the Company.

       

      (h) No
        Integrated Offering.
        None of
        the Company, its Subsidiaries, any of their affiliates, and any Person acting
        on
        their behalf has, directly or indirectly, made any offers or sales of any
        security or solicited any offers to buy any security, under circumstances
        that
        would require registration of any of the Securities under the 1933 Act or
        cause
        this offering of the Securities to be integrated with prior offerings by
        the
        Company for purposes of the 1933 Act or any applicable stockholder approval
        provisions, including, without limitation, under the rules and regulations
        of
        any exchange or automated quotation system on which any of the securities
        of the
        Company are listed or designated. None of the Company, its Subsidiaries,
        their
        affiliates and any Person acting on their behalf will take any action or
        steps
        referred to in the preceding sentence that would require registration of
        any of
        the Securities under the 1933 Act or cause the offering of the Securities
        to be
        integrated with other offerings.

       

      (i) Dilutive
        Effect.
        The
        Company understands and acknowledges that the number of Warrant Shares issuable
        upon exercise of the Warrants will increase in certain circumstances. The
        Company further acknowledges that its obligation to issue the Warrant Shares
        upon exercise of the Warrants in accordance with this Agreement and the
        Warrants, in each case, is absolute and unconditional regardless of the dilutive
        effect that such issuance may have on the ownership interests of other
        stockholders of the Company.

       

      (j) Application
        of Takeover Protections; Rights Agreement.
        The
        Company and its board of directors have taken all necessary action, if any,
        in
        order to render inapplicable any control share acquisition, business
        combination, poison pill (including any distribution under a rights agreement)
        or other similar anti-takeover provision under the Articles of Incorporation
        or
        the laws of the State of Nevada which is or could become applicable to any
        Buyer
        as a result of the transactions contemplated by this Agreement, including,
        without limitation, the Company's issuance of the Securities and any Buyer's
        ownership of the Securities. The Company has not adopted a stockholder rights
        plan or similar arrangement relating to accumulations of beneficial ownership
        of
        Common Stock or a change in control of the Company.

       

      
        
          
          

        

        
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      (k) SEC
        Documents; Financial Statements.
        During
        the two (2) years prior to the date hereof, the Company has timely filed
        all
        reports, schedules, forms, statements and other documents required to be
        filed
        by it with the SEC pursuant to the reporting requirements of the 1934 Act
        (all
        of the foregoing filed prior to the date hereof or prior to the date of the
        Closing, along with the Current Report of the Company being filed in connection
        with the transactions contemplated hereby, and all exhibits included therein
        and
        financial statements and schedules thereto and documents incorporated by
        reference therein being hereinafter referred to as the “SEC
        Documents”).
        The
        Company has delivered to the Buyers or their respective representatives true,
        correct and complete copies of the SEC Documents not available on the EDGAR
        system. As of their respective dates, the SEC Documents complied in all material
        respects with the requirements of the 1934 Act and the rules and regulations
        of
        the SEC promulgated thereunder applicable to the SEC Documents, and none
        of the
        SEC Documents, at the time they were filed with the SEC, contained any untrue
        statement of a material fact or omitted to state a material fact required
        to be
        stated therein or necessary in order to make the statements therein, in the
        light of the circumstances under which they were made, not misleading. As
        of
        their respective dates, the financial statements of the Company included
        in the
        SEC Documents complied as to form in all material respects with applicable
        accounting requirements and the published rules and regulations of the SEC
        with
        respect thereto. Such financial statements have been prepared in accordance
        with
        generally accepted accounting principles, consistently applied, during the
        periods involved (except (i) as may be otherwise indicated in such financial
        statements or the notes thereto, or (ii) in the case of unaudited interim
        statements, to the extent they may exclude footnotes or may be condensed
        or
        summary statements) and fairly present in all material respects the financial
        position of the Company as of the dates thereof and the results of its
        operations and cash flows for the periods then ended (subject, in the case
        of
        unaudited statements, to normal year-end audit adjustments). No other
        information provided by or on behalf of the Company to the Buyers which is
        not
        included in the SEC Documents, including, without limitation, information
        referred to in Section 2(f) of this Agreement, contains any untrue statement
        of
        a material fact or omits to state any material fact necessary in order to
        make
        the statements therein, in the light of the circumstance under which they
        are or
        were made, not misleading.

       

      (l) Absence
        of Certain Changes.
        Except
        as disclosed in Schedule
        3(l),
        since
        December 31, 2007, there has been no material adverse change and no material
        adverse development in the business, properties, operations, condition
        (financial or otherwise), results of operations or prospects of the Company
        or
        its Subsidiaries. Except as disclosed in Schedule
        3(l),
        since
        December 31, 2007, the Company has not (i) declared or paid any dividends,
        (ii)
        sold any assets, individually or in the aggregate, in excess of $25,000 outside
        of the ordinary course of business or (iii) had capital expenditures,
        individually or in the aggregate, in excess of $25,000. The Company has not
        taken any steps to seek protection pursuant to any bankruptcy law nor does
        the
        Company have any knowledge or reason to believe that its creditors intend
        to
        initiate involuntary bankruptcy proceedings or any actual knowledge of any
        fact
        which would reasonably lead a creditor to do so. The Company is not as of
        the
        date hereof, and after giving effect to the transactions contemplated hereby
        to
        occur at the Closing, will not be Insolvent (as defined below). For purposes
        of
        this Section 3(l), “Insolvent”
means,
        with respect to any Person (i) the present fair saleable value of such Person's
        assets is less than the amount required to pay such Person's total Indebtedness
        (as defined in Section 3(s)), (ii) such Person is unable to pay its debts
        and
        liabilities, subordinated, contingent or otherwise, as such debts and
        liabilities become absolute and matured, (iii) such Person intends to incur
        or
        believes that it will incur debts that would be beyond its ability to pay
        as
        such debts mature or (iv) such Person has unreasonably small capital with
        which
        to conduct the business in which it is engaged as such business is now conducted
        and is proposed to be conducted.

       

      
        
          
          

        

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

       

      (n) Conduct
        of Business; Regulatory Permits.
        Neither
        the Company nor its Subsidiaries is in material violation of any term of
        or in
        default under the Articles of Incorporation or Bylaws or their organizational
        charter or articles of incorporation or bylaws, respectively. Neither the
        Company nor any of its Subsidiaries is in violation of any judgment, decree
        or
        order or any statute, ordinance, rule or regulation applicable to the Company
        or
        its Subsidiaries, and neither the Company nor any of its Subsidiaries will
        conduct its business in violation of any of the foregoing, except for possible
        violations which would not, individually or in the aggregate, have a Material
        Adverse Effect. Without limiting the generality of the foregoing, the Company
        is
        not in violation of any of the rules, regulations or requirements of the
        OTCBB
        and has no knowledge of any facts or circumstances that would reasonably
        lead to
        delisting or suspension of the Common Stock by the OTCBB in the foreseeable
        future except for possible violations which would not, individually or in
        the
        aggregate, have a Material Adverse Effect and would not, individually or
        in the
        aggregate, reasonably lead to delisting or suspension from trading of the
        Common
        Stock by the OTCBB, FINRA or the SEC. During the two (2) years prior to the
        date
        hereof, (i) the Common Stock has been quoted on the OTCBB, (ii) trading in
        the
        Common Stock has not been suspended by the SEC or FINRA and (iii) the Company
        has received no communication, written or oral, from the SEC or the OTCBB
        regarding the suspension or cessation of quotation of the Common Stock on
        the
        OTCBB. The Company and its Subsidiaries possess all certificates, authorizations
        and permits issued by the appropriate federal, state or foreign regulatory
        authorities necessary to conduct their respective businesses, except where
        the
        failure to possess such certificates, authorizations or permits would not
        have,
        individually or in the aggregate, a Material Adverse Effect, and neither
        the
        Company nor any such Subsidiary has received any notice of proceedings relating
        to the revocation or modification of any such certificate, authorization
        or
        permit

       

      
        
          
          

        

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

       

      (p) Sarbanes-Oxley
        Act.
        The
        Company is in compliance with any and all applicable requirements of the
        Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and
        any and
        all applicable rules and regulations promulgated by the SEC thereunder that
        are
        effective as of the date hereof , except for possible violations which would
        not, individually or in the aggregate, have a Material Adverse
        Effect.

       

      (q) Transactions
        With Affiliates.
        Except
        as otherwise provided in the SEC Documents, none of the officers, directors
        or
        employees of the Company is presently a party to any transaction with the
        Company or any of its Subsidiaries (other than for ordinary course services
        as
        employees, officers or directors), including any contract, agreement or other
        arrangement providing for the furnishing of services to or by, providing
        for
        rental of real or personal property to or from, or otherwise requiring payments
        to or from any such officer, director or employee or, to the knowledge of
        the
        Company, any corporation, partnership, trust or other entity in which any
        such
        officer, director, or employee has a substantial interest or is an officer,
        director, trustee or partner.

       

      
        
          
          

        

        
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      (r) Equity
        Capitalization.
        As of
        the date hereof, the authorized capital stock of the Company consists of
        70,000,000 shares of Common Stock, of which as of the date hereof,
        37,031,258 shares
        are issued and outstanding, no
        shares
        are reserved for issuance pursuant to options and warrants outstanding and
        no shares
        are reserved for issuance pursuant to securities (other than the Warrants)
        exercisable or exchangeable for, or convertible into, shares of Common Stock.
        All of such outstanding shares have been, or upon issuance will be, validly
        issued and are fully paid and nonassessable. Except as set forth on Schedule
        3(r)
        and in
        the SEC Documents: (i) no shares of the Company's capital stock are subject
        to
        preemptive rights or any other similar rights or any liens or encumbrances
        suffered or permitted by the Company; (ii) there are no outstanding options,
        warrants, scrip, rights to subscribe to, calls or commitments of any character
        whatsoever relating to, or securities or rights convertible into, or exercisable
        or exchangeable for, any shares of capital stock of the Company or any of
        its
        Subsidiaries, or contracts, commitments, understandings or arrangements by
        which
        the Company or any of its Subsidiaries is or may become bound to issue
        additional shares of capital stock of the Company or any of its Subsidiaries
        or
        options, warrants, scrip, rights to subscribe to, calls or commitments of
        any
        character whatsoever relating to, or securities or rights convertible into,
        or
        exercisable or exchangeable for, any shares of capital stock of the Company
        or
        any of its Subsidiaries; (iii) there are no outstanding debt securities,
        notes,
        credit agreements, credit facilities or other agreements, documents or
        instruments evidencing Indebtedness (as defined in Section 3(s)) of the Company
        or any of its Subsidiaries or by which the Company or any of its Subsidiaries
        is
        or may become bound; (iv) there are no financing statements securing obligations
        in any material amounts, either singly or in the aggregate, filed in connection
        with the Company or any of its Subsidiaries; (v) there are no agreements
        or
        arrangements under which the Company or any of its Subsidiaries is obligated
        to
        register the sale of any of their securities under the 1933 Act (except the
        Registration Rights Agreement); (vi) there are no outstanding securities
        or
        instruments of the Company or any of its Subsidiaries which contain any
        redemption or similar provisions, and there are no contracts, commitments,
        understandings or arrangements by which the Company or any of its Subsidiaries
        is or may become bound to redeem a security of the Company or any of its
        Subsidiaries; (vii) there are no securities or instruments containing
        anti-dilution or similar provisions that will be triggered by the issuance
        of
        the Securities; (viii) the Company does not have any stock appreciation rights
        or “phantom stock” plans or agreements or any similar plan or agreement; and
        (ix) the Company and its Subsidiaries have no liabilities or obligations
        required to be disclosed in the SEC Documents but not so disclosed in the
        SEC
        Documents, other than those incurred in the ordinary course of the Company's
        or
        any Subsidiary's respective businesses and which, individually or in the
        aggregate, do not or would not have a Material Adverse Effect. The Company
        has
        furnished or made available to the Buyer upon such Buyer's request, true,
        correct and complete copies of the Company's Articles of Incorporation, as
        amended and as in effect on the date hereof (the “Articles
        of Incorporation”),
        and
        the Company's Bylaws, as amended and as in effect on the date hereof (the
        “Bylaws”),
        and
        the terms of all securities convertible into, or exercisable or exchangeable
        for, shares of Common Stock and the material rights of the holders thereof
        in
        respect thereto. 

       

      (s) Indebtedness
        and Other Contracts.
        Except
        as disclosed in Schedule
        3(s)
        and the
        SEC Documents, neither the Company nor any of its Subsidiaries (i) has any
        outstanding Indebtedness (as defined below), (ii) is a party to any contract,
        agreement or instrument, the violation of which, or default under which,
        by the
        other party(ies) to such contract, agreement or instrument, in the judgment
        of
        the Company’s officers, would result in a Material Adverse Effect, (iii) is in
        violation of any term of or in default under any contract, agreement or
        instrument relating to any Indebtedness, except where such violations and
        defaults would not result, in the judgment of the Company’s officers,
        individually or in the aggregate, in a Material Adverse Effect, or (iv) is
        a
        party to any contract, agreement or instrument relating to any Indebtedness,
        the
        performance of which, in the judgment of the Company's officers, has or is
        expected to have a Material Adverse Effect. For purposes of this Agreement:
        (x)
“Indebtedness”
of
        any
        Person means, without duplication (A) all indebtedness for borrowed money,
        (B)
        all obligations issued, undertaken or assumed as the deferred purchase price
        of
        property or services (other than trade payables entered into in the ordinary
        course of business), (C) all reimbursement or payment obligations with respect
        to letters of credit, surety bonds and other similar instruments, (D) all
        obligations evidenced by notes, bonds, debentures or similar instruments,
        including obligations so evidenced incurred in connection with the acquisition
        of property, assets or businesses, (E) all indebtedness created or arising
        under
        any conditional sale or other title retention agreement, or incurred as
        financing, in either case with respect to any property or assets acquired
        with
        the proceeds of such indebtedness (even though the rights and remedies of
        the
        seller or bank under such agreement in the event of default are limited to
        repossession or sale of such property), (F) all monetary obligations under
        any
        leasing or similar arrangement which, in connection with generally accepted
        accounting principles, consistently applied for the periods covered thereby,
        is
        classified as a capital lease, (G) all indebtedness referred to in clauses
        (A)
        through (F) above secured by (or for which the holder of such Indebtedness
        has
        an existing right, contingent or otherwise, to be secured by) any mortgage,
        lien, pledge, charge, security interest or other encumbrance upon or in any
        property or assets (including accounts and contract rights) owned by any
        Person,
        even though the Person which owns such assets or property has not assumed
        or
        become liable for the payment of such indebtedness, and (H) all Contingent
        Obligations in respect of indebtedness or obligations of other kinds referred
        to
        in clauses (A) through (G) above; (y) “Contingent
        Obligation”
        means,
        as to any Person, any direct or indirect liability, contingent or otherwise,
        of
        that Person with respect to any indebtedness, lease, dividend or other
        obligation of another Person if the primary purpose or intent of the Person
        incurring such liability, or the primary effect thereof, is to provide assurance
        to the obligee of such liability that such liability will be paid or discharged,
        or that any agreements relating thereto will be complied with, or that the
        holders of such liability will be protected (in whole or in part) against
        loss
        with respect thereto; and (z) “Person”
        means an
        individual, a limited liability company, a partnership, a joint venture,
        a
        corporation, a trust, an unincorporated organization and a government or
        any
        department or agency thereof.

       

      
        
          
          

        

        
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      (t) Absence
        of Litigation.
        Except
        as set forth on Schedule
        3(t) and
        the
        SEC Documents, there is no action, suit, proceeding, inquiry or investigation
        before the SEC, FINRA, any court, public board, government agency,
        self-regulatory organization or body pending or, to the knowledge of the
        Company, threatened against or affecting the Company, the Common Stock or
        any of
        its Subsidiaries or any of the Company's or the Company's Subsidiaries' officers
        or directors, whether of a civil or criminal nature or otherwise. 

       

      (u) Insurance.
        The
        Company and each of its Subsidiaries are insured by insurers of recognized
        financial responsibility against such losses and risks and in such amounts
        as
        management of the Company believes to be prudent and customary in the businesses
        in which the Company and its Subsidiaries are engaged. Except as set forth
        on
Schedule
        3(u), neither
        the Company nor any Subsidiary has been refused any insurance coverage sought
        or
        applied for. Neither the Company nor any Subsidiary has any reason to believe
        that it will not be able to renew its existing insurance coverage as and
        when
        such coverage expires or to obtain similar coverage from similar insurers
        as may
        be necessary to continue its business at a cost that would not have a Material
        Adverse Effect.

       

      (v) Employee
        Relations.
        (i)
        Neither the Company nor any of its Subsidiaries is a party to any collective
        bargaining agreement or employs any member of a union. The Company and its
        Subsidiaries believe that their relations with their employees are good.
        No
        executive officer of the Company or any of its Subsidiaries (as defined in
        Rule
        501(f) of the 1933 Act) has notified the Company or any such Subsidiary that
        such officer intends to leave the Company or any such Subsidiary or otherwise
        terminate such officer's employment with the Company or any such Subsidiary.
        No
        executive officer of the Company, to the knowledge of the Company or any
        of its
        Subsidiaries, is, or is now expected to be, in violation of any material
        term of
        any employment contract, confidentiality, disclosure or proprietary information
        agreement, non-competition agreement, or any other contract or agreement
        or any
        restrictive covenant, and the continued employment of each such executive
        officer does not subject the Company or any of its Subsidiaries to any liability
        with respect to any of the foregoing matters.

       

      
        
          
          

        

        
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      (ii) The
        Company and its Subsidiaries are in compliance with all federal, state, local
        and foreign laws and regulations respecting labor, employment and employment
        practices and benefits, terms and conditions of employment and wages and
        hours,
        except where failure to be in compliance would not, either individually or
        in
        the aggregate, reasonably be expected to result in a Material Adverse
        Effect.

       

      (w) Title.
        The
        Company and its Subsidiaries have good and marketable title in fee simple
        to all
        real property and good and marketable title to all personal property owned
        by
        them which is material to the business of the Company and its Subsidiaries,
        in
        each case free and clear of all liens, encumbrances and defects except such
        as
        do not materially affect the value of such property and do not interfere
        with
        the use made and proposed to be made of such property by the Company and
        any of
        its Subsidiaries. Any real property and facilities held under lease by the
        Company and any of its Subsidiaries are held by them under valid, subsisting
        and
        enforceable leases with such exceptions as are not material and do not interfere
        with the use made and proposed to be made of such property and buildings
        by the
        Company and its Subsidiaries.

       

      (x) Intellectual
        Property Rights.
        The
        Company and its Subsidiaries own or possess adequate rights or licenses to
        use
        all trademarks, trade names, service marks, service mark registrations, service
        names, patents, patent rights, copyrights, inventions, licenses, approvals,
        governmental authorizations, trade secrets and other intellectual property
        rights (“Intellectual
        Property Rights”)
        necessary to conduct their respective businesses as now conducted. None of
        the
        Company's Intellectual Property Rights have expired or terminated, or are
        expected to expire or terminate within three years from the date of this
        Agreement. The Company does not have any knowledge of any infringement by
        the
        Company or its Subsidiaries of Intellectual Property Rights of others. There
        is
        no claim, action or proceeding being made or brought, or to the knowledge
        of the
        Company, being threatened, against the Company or any of its Subsidiaries
        regarding its Intellectual Property Rights. The Company is unaware of any
        facts
        or circumstances which might give rise to any of the foregoing infringements
        or
        claims, actions or proceedings. The Company and its Subsidiaries have taken
        reasonable security measures to protect the secrecy, confidentiality and
        value
        of all of their Intellectual Property Rights.

       

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

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      (z) Subsidiary
        Rights.
        The
        Company, or one of its Subsidiaries, has the unrestricted right to vote,
        and
        (subject to limitations imposed by applicable law) to receive dividends and
        distributions on, all capital securities of its Subsidiaries as owned by
        the
        Company or such Subsidiary.

       

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

       

      (bb) Internal
        Accounting and Disclosure Controls.
        The
        Company and each of its Subsidiaries maintain a system of internal accounting
        controls sufficient, in its reasonable belief, to provide reasonable assurance
        that (i) transactions are executed in accordance with management's general
        or
        specific authorizations, (ii) transactions are recorded as necessary to permit
        preparation of financial statements in conformity with generally accepted
        accounting principles and to maintain asset and liability accountability,
        (iii)
        access to assets or incurrence of liabilities is permitted only in accordance
        with management's general or specific authorization and (iv) the recorded
        accountability for assets and liabilities is compared with the existing assets
        and liabilities at reasonable intervals and appropriate action is taken with
        respect to any difference. The Company maintains disclosure controls and
        procedures (as such term is defined in Rule 13a-15 under the 1934 Act) that
        are
        effective in ensuring that information required to be disclosed by the Company
        in the reports that it files or submits under the 1934 Act is recorded,
        processed, summarized and reported, within the time periods specified in
        the
        rules and forms of the SEC, including, without limitation, controls and
        procedures designed in to ensure that information required to be disclosed
        by
        the Company in the reports that it files or submits under the 1934 Act is
        accumulated and communicated to the Company’s management, including its
        principal executive officer or officers and its principal financial officer
        or
        officers, as appropriate, to allow timely decisions regarding required
        disclosure. During the twelve months prior to the date hereof neither the
        Company nor any of its Subsidiaries have received any notice or correspondence
        from any accountant relating to any potential material weakness in any part
        of
        the system of internal accounting controls of the Company or any of its
        Subsidiaries.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      (cc) Off
        Balance Sheet Arrangements.
        Save as
        otherwise provided in the SEC Documents, there is no transaction, arrangement,
        or other relationship between the Company and an unconsolidated or other
        off
        balance sheet entity that is required to be disclosed by the Company in its
        Exchange Act filings and is not so disclosed or that otherwise would be
        reasonably likely to have a Material Adverse Effect.

       

      (dd) Manipulation
        of Price.
        The
        Company has not, and to its knowledge no one acting on its behalf has taken,
        directly or indirectly, any action designed to cause or to result in the
        stabilization or manipulation of the price of any security of the Company
        to
        facilitate the sale or resale of any of the Securities. 

       

      (ee) Transfer
        Taxes.
        On the
        Closing Date, all stock transfer or other taxes (other than income or similar
        taxes) which are required to be paid in connection with the sale and transfer
        of
        the Securities to be sold to each Buyer hereunder will be, or will have been,
        fully paid or provided for by the Company, and all laws imposing such taxes
        will
        be or will have been complied with.

       

      (ff) Investment
        Company Status.
        The
        Company is not, and upon consummation of the sale of the Securities will
        not be,
        an “investment company,” a company controlled by an “investment company” or an
“affiliated person” of, or “promoter” or “principal underwriter” for, an
“investment company” as such terms are defined in the Investment Company Act of
        1940, as amended.

       

      (gg) Acknowledgement
        Regarding Buyers' Trading Activity.
        Except
        as is set forth in Section 2(m), it is understood and acknowledged by the
        Company (i) that neither the Company nor any of its Subsidiaries has asked
        any
        Buyer nor has any Buyer agreed with the Company or its Subsidiaries, to desist
        from purchasing or selling, long and/or short, securities of the Company,
        or
“derivative” securities based on securities issued by the Company or to hold the
        Securities for any specified term; (ii) to the Company's knowledge, that
        any
        Buyer, and counterparties in “derivative” transactions to which any such Buyer
        is a party, directly or indirectly, presently do not have a “short” position in
        the Common Stock, and (iii) that each Buyer shall not be deemed to have any
        affiliation with or control over any arm's length counterparty in any
“derivative” transaction. The Company further understands and acknowledges that
        (a) one or more Buyers may engage in hedging and/or trading activities at
        various times during the period that the Securities are outstanding and (b)
        such
        hedging and/or trading activities, if any, can reduce the value of the existing
        stockholders' equity interest in the Company both at and after the time the
        hedging and/or trading activities are being conducted. The Company acknowledges
        that such aforementioned hedging and/or trading activities do not constitute
        a
        breach of this Agreement or any of the documents executed in connection
        herewith. The Company is not aware of any of the aforementioned hedging and/or
        trading activities of any of the Buyers. The Company may not be informed
        of, and
        will not monitor, any such aforementioned hedging and/or trading activities
        by
        one or more Buyers in the future. 

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      (hh) U.S.
        Real Property Holding Corporation.
        The
        Company is not, has never been, and so long as any Securities remain
        outstanding, shall not become, a U.S. real property holding corporation within
        the meaning of Section 897 of the Internal Revenue Code of 1986, as amended,
        and
        the Company shall so certify upon Buyer's request.

       

      (ii) Bank
        Holding Company Act.
        Neither
        the Company nor any of its Subsidiaries is subject to the Bank Holding Company
        Act of 1956, as amended (the “BHCA”)
        and to
        regulation by the Board of Governors of the Federal Reserve System (the
“Federal
        Reserve”).
        Neither the Company nor any of its Subsidiaries owns or controls, directly
        or
        indirectly, five percent (5%) or more of the outstanding shares of any class
        of
        voting securities or twenty-five percent or more of the total equity of a
        bank
        or any entity that is subject to the BHCA and to regulation by the Federal
        Reserve. Neither the Company nor any of its Subsidiaries or Affiliates exercises
        a controlling influence over the management or policies of a bank or any
        entity
        that is subject to the BHCA and to regulation by the Federal
        Reserve.

       

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

       

      (kk) Disclosure.
        The
        Company understands and confirms that each of the Buyers will rely on the
        foregoing representations in effecting transactions in securities of the
        Company. All disclosure provided to the Buyers regarding the Company, its
        business and the transactions contemplated hereby, including the Schedules
        to
        this Agreement, furnished by or on behalf of the Company are materially true
        and
        correct and do not contain any untrue statement of a material fact or omit
        to
        state any material fact necessary in order to make the statements made therein,
        in the light of the circumstances under which they were made, not misleading
        except any non-disclosure would not, individually or in the aggregate, have
        a
        Material Adverse Effect . Each press release issued by the Company during
        the
        twelve (12) months preceding the date of this Agreement did not at the time
        of
        release contain any untrue statement of a material fact or omit to state
        a
        material fact required to be stated therein or necessary in order to make
        the
        statements therein, in the light of the circumstances under which they are
        made,
        not misleading. No event or circumstance has occurred or information exists
        with
        respect to the Company or any Subsidiary or either of its or their respective
        business, properties, prospects, operations or financial conditions, which,
        under applicable law, rule or regulation, requires public disclosure or
        announcement by the Company but which has not been so publicly announced
        or
        disclosed (assuming for this purpose that the Company's reports filed under
        the
        Exchange Act of 1934, as amended, are being incorporated into an effective
        registration statement filed by the Company under the 1933 Act) except any
        non-disclosure would not, individually or in the aggregate, have a Material
        Adverse Effect. The Company acknowledges and agrees that no Buyer makes or
        has
        made any representations or warranties with respect to the transactions
        contemplated hereby other than those specifically set forth in Section
        2.

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      
        
          4.
            COVENANTS.

        

      

       

      (a) Best
        Efforts.
        Each
        Party shall use its commercially reasonable efforts timely to satisfy each
        of
        the covenants and the conditions to be satisfied by it as provided in Sections
        5, 6 and 7 of this Agreement.

       

      (b) Form
        D
        and Blue Sky.
        The
        Company agrees to file a Form D with respect to the Securities as required
        under
        Regulation D and to provide a copy thereof to each Buyer promptly after such
        filing. The Company, on or before the Closing Date, shall take such action
        as
        the Company shall reasonably determine is necessary in order to obtain an
        exemption for or to qualify the Securities for sale to the Buyers at the
        Closing
        pursuant to this Agreement under applicable securities or “Blue Sky” laws of the
        states of the United States (or to obtain an exemption from such qualification),
        and shall provide evidence of any such action so taken to the Buyers on or
        prior
        to the Closing Date. The Company shall make all filings and reports relating
        to
        the offer and sale of the Securities required under applicable securities
        or
“Blue Sky” laws of the states of the United States following the Closing
        Date.

       

      (c) Reporting
        Status.
        Until
        the date on which the Investors (as defined in the Registration Rights
        Agreement) shall have sold all the Common Shares and Warrant Shares and
        none
        of the Warrants are outstanding (the “Reporting
        Period”),
        the
        Company shall timely file all reports required to be filed with the SEC pursuant
        to the 1934 Act, and the Company shall not terminate its status as an issuer
        required to file reports under the 1934 Act even if the 1934 Act or the rules
        and regulations thereunder would otherwise permit such termination.

       

      (d) Use
        of
        Proceeds.
        The
        Company will use the proceeds from the sale of the Securities for general
        corporate purposes, including general and administrative expenses, and in
        connection with acquisitions and not for (i) the repayment of any outstanding
        Indebtedness of the Company or any of its Subsidiaries, or (ii) the redemption
        or repurchase of any of its or its Subsidiaries' equity securities. The Company
        agrees that it will deposit $500,000 of the proceeds in escrow under the
        Escrow
        Agreement to pay the fees and expenses in connection with a public relations
        and
        investor relations campaign of a design and type satisfactory to a
        representative of the Buyers designated in the Escrow Agreement. Such amount
        shall be released only upon the dual signatures of the CEO of the Company
        and
        such representative of the Buyers designated in the Escrow Agreement. The
        Company agrees that the public relations and investor relations campaign
        shall
        include a "retail component" involving the use of direct mail to assist in
        the
        repositioning of the Company in the minds of the general public. The Company
        agrees that it will use its commercially reasonable efforts to identify and
        engage a Chief Financial Officer who shall be fluent in English and Mandarin,
        who understands and has a working knowledge of United States generally accepted
        accounting principles, who has had significant responsibility for the
        preparation and filing of quarterly, annual and current reports with the
        SEC and
        who has experience working with or in United States capital market participants.
        The Company agrees that it will deposit $600,000 of the proceeds in escrow
        under
        the Escrow Agreement, to be released only upon the dual signatures of the
        CEO of
        the Company and the representative of the Buyers designated in the Escrow
        Agreement following the engagement of a Chief Financial Officer as described
        herein.

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      (e) Financial
        Information.
        The
        Company agrees to send the following to each Investor during the Reporting
        Period (i) unless the following are filed with the SEC through EDGAR and
        are
        available to the public through the EDGAR system, within one (1) Business
        Day
        after the filing thereof with the SEC, a copy of its Annual Reports on Form
        10-K, its Quarterly Reports on Form 10-Q, any Current Reports on Form 8-K
        and
        any registration statements (other than on Form S-8) or amendments filed
        pursuant to the 1933 Act, (ii) on the same day as the release thereof, facsimile
        copies or email copies of all press releases issued by the Company or any
        of its
        Subsidiaries, and (iii) copies of any notices and other information made
        available or given to the stockholders of the Company generally,
        contemporaneously with the making available or giving thereof to the
        stockholders. As used herein, “Business
        Day”
means
        any day other than Saturday, Sunday or other day on which commercial banks
        in
        The City of New York are authorized or required by law to remain
        closed.

       

      (f) Listing.
        Neither
        the Company nor any of its Subsidiaries shall take any action which would
        be
        reasonably expected to result in the delisting or suspension of the Common
        Stock
        on the national securities exchange, automated quotation system or OTCBB
        upon
        which the Common Stock is then listed or quoted. 

       

      (g) Pledge
        of Securities.
        The
        Company acknowledges and agrees that the Securities may be pledged by an
        Investor (as defined in the Registration Rights Agreement) in connection
        with a
        bona fide margin agreement or other loan or financing arrangement that is
        secured by the Securities. The pledge of Securities shall not be deemed to
        be a
        transfer, sale or assignment of the Securities hereunder, and no Investor
        effecting a pledge of Securities shall be required to provide the Company
        with
        any notice thereof or otherwise make any delivery to the Company pursuant
        to
        this Agreement or any other Transaction Document, including, without limitation,
        Section 2(h) of this Agreement; provided that an Investor and its pledgee
        shall
        be required to comply with the provisions of Section 2(h) of this Agreement
        in
        order to effect a sale, transfer or assignment of Securities to such pledgee.
        The Company hereby agrees to execute and deliver such documentation as a
        pledgee
        of the Securities may reasonably request in connection with a pledge of the
        Securities to such pledgee by an Investor provided that any and all costs
        to
        effect the pledge of the Securities are borne by pledgor and/or pledgee and
        not
        Company.

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      (h) Disclosure
        of Transactions and Other Material Information.
        The
        Company shall, on or before 8:30 a.m., New York City time, within the fourth
        Business Day after the date of this Agreement, (A) issue a press release
        (the
“Press
        Release”)
        reasonably acceptable to the Buyers disclosing all material terms of the
        transactions contemplated hereby and (B) file
        a
        Current Report on Form 8-K describing the terms of the transactions contemplated
        by the Transaction Documents in the form required by the 1934 Act, and attaching
        the material Transaction Documents (including, without limitation, this
        Agreement (and all schedules to this Agreement), the form of Warrant and
        the
        Registration Rights Agreement) as exhibits to such filing (including all
        attachments, the “8-K
        Filing”).
        From
        and after the issuance of the Press Release, no Buyer shall be in possession
        of
        any material, nonpublic information received from the Company, any of its
        Subsidiaries or any of its respective officers, directors, employees or agents,
        that is not disclosed in the Press Release. The Company shall not, and shall
        cause each of its Subsidiaries and each of their respective officers, directors,
        employees and agents, not to, provide any Buyer with any material, nonpublic
        information regarding the Company or any of its Subsidiaries from and after
        the
        filing of the Press Release without the express written consent of such Buyer.
        If a Buyer has, or believes it has, received any such material, nonpublic
        information regarding the Company or any of its Subsidiaries from the Company,
        any of its Subsidiaries or any of the respective officers, directors, or
        agents,
        other than as required in writing by such Buyer, it may provide the Company
        with
        written notice thereof. The Company shall, within five (5) Trading Days of
        receipt of such notice, make public disclosure of such material, nonpublic
        information. In the event of a breach of the foregoing covenant by the Company,
        any of its Subsidiaries, or any of its or their respective officers, directors,
        employees and agents, in addition to any other remedy provided herein or
        in the
        Transaction Documents, a Buyer shall have the right to make a public disclosure,
        in the form of a press release, public advertisement or otherwise, of such
        material, nonpublic information without the prior approval by the Company,
        its
        Subsidiaries, or any of its or their respective officers, directors, employees
        or agents. No Buyer shall have any liability to the Company, its Subsidiaries,
        or any of its or their respective officers, directors, employees, stockholders
        or agents for any such disclosure. Subject to the foregoing, neither the
        Company, its Subsidiaries nor any Buyer shall issue any press releases or
        any
        other public statements with respect to the transactions contemplated hereby;
        provided,
        however,
        that
        the Company shall be entitled, without the prior approval of any Buyer, to
        make
        any press release or other public disclosure with respect to such transactions
        (i) in substantial conformity with the 8-K Filing and contemporaneously
        therewith and (ii) as is required by applicable law and regulations, including
        the applicable rules and regulations of the OTCBB (provided that in the case
        of
        clause (i) each Buyer shall be consulted by the Company in connection with
        any
        such press release or other public disclosure prior to its release). Without
        the
        prior written consent of any applicable Buyer, neither the Company nor any
        of
        its Subsidiaries or affiliates shall disclose the name of such Buyer in any
        filing, announcement, release or otherwise, unless such disclosure is required
        by law or regulation.

       

      (i) Registration
        Statements.
        The
        Company shall file a registration statement with the SEC to register the
        Common
        Shares and the shares underlying the Warrants (“Registrable Securities”)
        pursuant to the terms set forth in the Registration Rights Agreement within
        forty-five (45) days after the Closing Date. No other securities shall be
        included in the registration statement. The Company shall use its commercially
        reasonable efforts to cause the registration statement to become effective
        within 180 days after filing. In the event that the number of Common Shares
        and
        the shares underlying the Warrants to be registered on the initial registration
        statement as permitted by the Commission is less than the full amount of
        the
        Registrable Securities as a result of Rule 415 of the Securities Act or its
        interpretation, the Company shall file one or more subsequent registration
        statements to register the rest of the Registrable Securities until all
        Registrable Securities are registered, pursuant to the provisions of the
        Registration Rights Agreement; provided that the Company's obligation to
        file
        subsequent registration statements shall cease on the second yearly anniversary
        of the Closing Date. Each Buyer’s shares shall be registered in the subsequent
        registrations on a pro rata basis. Until the date that is forty-five days
        after
        the effective date of the initial registration statement, the Company will
        not
        file a registration statement (other than on Form S-8 or solely to register
        shares of Common Stock issued pursuant to an acquisition with non-affiliated
        third parties on an arm's length basis, the primary purpose of which is not
        to
        raise additional capital (the“Acquisition
        Shares”))
        under
        the
        1933 Act relating to securities that are not the Securities or any shares
        of
        Common Stock underlying the Warrants. Until the effective date of the initial
        registration statement, the Company will not file a registration statement
        under
        the 1933 Act relating to Acquisition Shares.

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      (j) Corporate
        Existence.
        So long
        as any Buyer beneficially owns any Warrants, the Company shall maintain its
        corporate existence and shall not sell all or substantially all of the Company's
        assets, except in the event of a merger or consolidation or sale of all or
        substantially all of the Company's assets, where the surviving or successor
        entity in such transaction (i) assumes the Company's obligations hereunder
        and
        under the agreements and instruments entered into in connection herewith
        and
        (ii) is a publicly traded corporation whose common stock is quoted on or
        listed
        for trading on the OTCBB,
        The NASDAQ Capital Market, The NASDAQ Global Market, The NASDAQ Global Select
        Market, the American Stock Exchange or The New York Stock Exchange,
        Inc
        (each
        referred to herein as a “Trading
        Market”).

       

      (k) Reservation
        of Shares.
        So long
        as any Buyer owns any Warrants, the Company shall take all action necessary
        to
        at all times have authorized, and reserved for the purpose of issuance no
        less
        than 100% of the number of shares of Common Stock issuable upon exercise
        of the
        Warrants then outstanding (without taking into account any limitations on
        the
        exercise of the Warrants set forth in the Warrants).

       

      (l) Additional
        Issuances of Securities.

       

      (i) For
        purposes of this Section 4(m), the following definitions shall
        apply.

       

      (1)  “Common
        Stock Equivalents” means, collectively, Options and Convertible
        Securities.

      

      (2)  “Convertible
        Securities” means any stock or securities (other than Options) convertible into
        or exercisable or exchangeable for Common Stock.

      

      (3)  “Options”
        means any rights, warrants or options to subscribe for or purchase Common
        Stock
        or Convertible Securities.

       

      (4)  “Exempt
        Issuance”
        means
        the
        issuance of (a) shares of Common Stock or options to employees, officers
        or
        directors of the Company pursuant to any stock or option plan duly adopted
        by
        the Board of Directors of the Company or a majority of the members of a
        committee of directors established for such purpose, (b) securities upon
        the
        exercise or exchange of or conversion of any Securities issued hereunder
        and/or
        securities exercisable or exchangeable for or convertible into shares of
        Common
        Stock issued and outstanding on the date of this Agreement, provided that
        such
        securities have not been amended since the date of this Agreement to increase
        the number of such securities or to decrease the exercise, exchange or
        conversion price of any such securities, and (c) securities issued pursuant
        to
        acquisitions or strategic transactions, provided any such issuance shall
        only be
        to a Person which is, itself or through its subsidiaries, an operating company
        in a business synergistic with the business of the Company and in which the
        Company receives benefits in addition to the investment of funds, but shall
        not
        include a transaction in which the Company is issuing securities primarily
        for
        the purpose of raising capital or to an entity whose primary business is
        investing in securities.

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

    

    (ii) From
      the
      date hereof until the one year anniversary of the Closing Date (the
      "Trigger
      Date"),
      the
      Company will not, directly or indirectly, offer, sell, grant any option to
      purchase, or otherwise dispose of (or announce any offer, sale, grant or any
      option to purchase or other disposition of) any of its or its Subsidiaries'
      equity or equity equivalent securities, including, without limitation, any
      debt,
      preferred stock or other instrument or security that is, at any time during
      its
      life and under any circumstances, convertible into or exchangeable or
      exercisable for shares of Common Stock or Common Stock Equivalents (any such
      offer, sale, grant, disposition or announcement being referred to as a
      "Subsequent
      Placement")
      unless
      the Company shall have first complied with this Section 4(l).

    

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

    

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

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    

    (v) The
      Company shall have twenty Business Days from the expiration of the Offer Period
      above to (i) offer, issue, sell or exchange all or any part of such Offered
      Securities as to which a Notice of Acceptance has not been given by the Buyers
      (the "Refused
      Securities"),
      but
      only to the offerees described in the Offer Notice (if so described therein)
      and
      only upon terms and conditions (including, without limitation, unit prices
      and
      interest rates) that are not more favorable to the acquiring Person or Persons
      or less favorable to the Company than those set forth in the Offer Notice and
      (ii) to publicly announce (a) the execution of such Subsequent Placement
      Agreement (as defined below), and (b) either (x) the consummation of the
      transactions contemplated by such Subsequent Placement Agreement or (y) the
      termination of such Subsequent Placement Agreement, which shall be filed with
      the Commission on a Current Report on Form 8-K with such Subsequent Placement
      Agreement and any documents contemplated therein filed as exhibits thereto.
      If
      no disclosure has been made by the Company by the end of the twenty Business
      Day
      period referred to in this subsection (d), the Subsequent Placement shall be
      deemed to have been abandoned and the Buyers shall no longer be deemed to be
      in
      possession of any non-public information with respect to the
      Company.

    

    (vi) In
      the
      event the Company shall propose to sell less than all the Refused Securities
      (any such sale to be in the manner and on the terms specified in this Section
      4(l)), then each Buyer may, at its sole option and in its sole discretion,
      reduce the number or amount of the Offered Securities specified in its Notice
      of
      Acceptance to an amount that shall be not less than the number or amount of
      the
      Offered Securities that such Buyer elected to purchase pursuant to Section
      4(l)(iv) above multiplied by a fraction, (i) the numerator of which shall be
      the
      number or amount of Offered Securities the Company actually proposes to issue,
      sell or exchange (including Offered Securities to be issued or sold to Buyers
      pursuant to Section 4(l)(iv) above prior to such reduction) and (ii) the
      denominator of which shall be the original amount of the Offered Securities.
      In
      the event that any Buyer so elects to reduce the number or amount of Offered
      Securities specified in its Notice of Acceptance, the Company may not issue,
      sell or exchange more than the reduced number or amount of the Offered
      Securities unless and until such securities have again been offered to the
      Buyers in accordance with this Section 4(l).

    

    (vii) Upon
      the
      closing of the issuance, sale or exchange of all or less than all of the Refused
      Securities, the Buyers shall acquire from the Company, and the Company shall
      issue to the Buyers, the number or amount of Offered Securities specified in
      the
      Notices of Acceptance, as reduced pursuant to Section 4(l)(vi) above if the
      Buyers have so elected, upon the terms and conditions specified in the Offer.
      The purchase by the Buyers of any Offered Securities is subject in all cases
      to
      the preparation, execution and delivery by the Company and the Buyers of a
      purchase agreement relating to such Offered Securities reasonably satisfactory
      in form and substance to the Buyers and their respective counsel (such
      agreement, the “Subsequent
      Placement Agreement”).

    

    (viii) Any
      Offered Securities not acquired by the Buyers or other persons in accordance
      with Section 4(m)(vii) above may not be issued, sold or exchanged until they
      are
      again offered to the Buyers under the procedures specified in this
      Agreement.

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    

    (ix) In
      exchange for the Company’s willingness to agree to these procedures, each Buyer
      hereby irrevocably agrees that it will hold in strict confidence any and all
      Offer Notices, the information contained therein, and the fact that the Company
      is contemplating a Subsequent Placement, until such time as the Company is
      obligated to make the disclosures required by Section 4(l)(v), or unless it
      notifies the Company in writing that it no longer desires to receive Offer
      Notices. 

    

    (x) Notwithstanding
      the foregoing, this Section 4(l) shall not apply in respect of an Exempt
      Issuance.

     

    (m) Conduct
      of Business.
      The
      business of the Company and its Subsidiaries shall not be conducted in violation
      of any law, ordinance or regulation of any governmental entity, except where
      such violations would not result, either individually or in the aggregate,
      in a
      Material Adverse Effect.

     

    (n) Closing
      Documents.
      On or
      prior to fourteen (14) calendar days after the Closing Date, the Company agrees
      to deliver, or cause to be delivered, to each Buyer and Secore &
Waller 
      a
      complete closing set of the Transaction Documents, Securities and any other
      document required to be delivered to any party pursuant to Section 7 hereof
      or
      otherwise.

     

    (o) Employee
      Stock Option Plan.
      On or
      prior to the expiration of sixty (60) days after the Closing Date, the Company
      shall enact an employee stock option plan, subject to the approval of the
      Buyers, for certain key members of management covering options to purchase
      a
      total of 6,600,000 shares of Common Stock of the Company (“Plan”).
      The
      Parties agree that such number of options shall be granted to the following
      key
      members of the Company as set forth opposite their respective names in
Exhibit
      J
      hereto.
      The options to collectively purchase 1,100,000 shares of Common Stock under
      the
      said Plan shall vest on each anniversary of the grant until the end of six
      years, whereby all the options to purchase the 6,600,000 shares of Common Stock
      shall vest and be immediately exerciseable. However, in the event (i) the
      Company reports an after tax Net Income of $14,000,000 in its Annual Report
      on
      Form 10-K filed with the SEC for its fiscal year 2008, then options to purchase
      2,200,000 shares of Common Stock in the aggregate under the Plan shall vest
      and
      become immediately exercisable and each grantee of such options shall be
      entitled to exercise his/her options rateably, (ii) the Company reports an
      after
      tax Net Income of $18,000,000 in its Annual Report on Form 10-K filed with
      the
      SEC for its fiscal year 2009, then options to purchase another 2,200,000 shares
      of Common Stock in the aggregate under the Plan shall vest and become
      immediately exercisable and each grantee of such options shall be entitled
      to
      exercise his/her options rateably and (iii) the Company reports an after tax
      Net
      Income of $22,000,000 in its Annual Report on Form 10-K filed with the SEC
      for
      its fiscal year 2010, then options to purchase another 2,200,000 shares of
      Common Stock in the aggregate under the Plan shall vest and become immediately
      exercisable and each grantee of such options shall be entitled to exercise
      his/her options rateably. The number of shares of Common Stock covered by the
      Plan shall be subject to adjustment for subsequent events, including but not
      limited to the Reverse Split described in section 4 (p) of this Agreement.”Net
      Income” shall be defined in accordance with the United States generally
      accounting principles and shall not,
      for the
      purposes of this Agreement and the transactions contemplated hereby
      include:

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    (i) the
      offering and transactional costs associated with this $7,500,000 private
      placement financing transaction, including without limitation, legal and audit
      costs, registration and filing fees;

    

    (ii) losses
      the Company has suffered or reasonably calculated to have suffered as a result
      of a force majeure event, which shall mean (i) acts of God such as earthquakes
      with an intensity of more than 7.0 on the Richter scale in geographic areas
      where the Company derives more than 50% of
      its
      revenue, or (ii) snow storms, rainstorms, floods and other natural catastrophes
      of such intensity and/or duration that exceed the average monthly amount for
      that geographic area by more than 100% in geographic areas in which the Company
      derives more than 50% of its revenue;

    

    (iii)
      the
      costs and expense incurred by the Company in 2008 and incurred in 2009 in
      establishing an employee stock option plan pursuant to Section 4(o) of this
      Securities Purchase Agreement and granting stock options to Ms. Jiangping Jiang
      thereunder; and

    

    (iv)
      any
      compensation expense incurred by the Company in connection with the release
      of
      any escrow shares under the Make Good Securities Escrow Agreement between the
      Company, the Buyers, Ms. Jiangping Jiang and Sichenzia Ross Friedman Ference
      LLP, as escrow agent dated August 28, 2008 to Ms. Jiangping Jiang.

     

    (p)  Reverse
      Split.
      On or
      prior to the expiration of one hundred and eight (180) days from the Closing
      Date, the Company shall use its commercially reasonable efforts to effect a
      two-for-one (2:1) reverse split of its Common Stock (“Reverse
      Split”).
      Further, the Company undertakes to the Buyers that it will not effect any other
      reverse splits of the Company’s Common Stock other than the said Reverse Split
      for a period of thirty-six (36) months from the Closing Date.

     

    (q)
       No
      Change in Control.
      For a
      period of twelve (12) months from the Closing Date, the Company will not enter
      into a transaction that would result in a Change in Control of the Company
      without the unanimous approval of the Company’s independent directors and the
      written approval of the Buyers, such approval not to be unreasonably withheld.
      For the purposes of this Section 4(q), “Change
      in Control”
shall
      be deemed to have occurred (a) on the date that any one Person, or more than
      one
      Person acting in concert, acquires beneficial ownership of voting securities
      the
      Company that, together with the voting securities previously held or
      beneficially owned by such Person or Persons acting in concert, constitutes
      more
      than fifty percent (50%) of the voting rights of any class of securities issued
      by the Company; or (b) on the date that any one Person or Persons acting in
      concert acquires (or has acquired during the twelve month period ending on
      the
      date of the most recent acquisition of such Person or Persons) assets from
      the
      Company that have a total gross fair market value equal to or more than fifty
      percent (50%) of the total gross fair market value of all of the assets of
      the
      Company immediately prior to such acquisition or acquisitions; for this purpose,
      the term “gross fair market value” means the value of the assets of the Company,
      or the value of the assets being disposed of, determined without regard to
      any
      liabilities associated with such assets. The determination of whether persons
      are acting in concert, and of beneficial ownership, shall be made in accordance
      with Regulation 13D under the Exchange Act. 

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    (r) Sale
      and Further Encumbrance.
      For a
      period of eighteen (18) months from the Closing Date, the Company shall not
      sell
      more than 10% of its Net Equity or encumber itself with a debt amounting to
      more
      than 50% of its Net Equity. For the purposes of Section 4(r), “Net
      Equity”
means
      that amount reflected as Stockholder's Equity of the Company on the most recent
      financial statements filed with the SEC.

     

    (s) Expenses.
      The
      Company shall bear all of its own legal, accounting and other expenses,
      including those relating to the preparation of this Agreement and the other
      Transaction Documents, and the preparation and filing of any current report,
      quarterly or annual report or registration statement with the SEC.

     

    (t) Audit
      Committee Chairman. 
      The Company has appointed an Audit Committee Chairman.  The Buyers shall
      have fourteen (14) days following Closing to satisfy themselves as to his
      credentials.  If the Buyers shall inform the Company within such fourteen
      (14) days that the credentials are not acceptable to the Buyers, the Company
      will use its commercially reasonable efforts to identify and nominate as
      director another person who is qualified to serve as Chairman of the Audit
      Committee, and who is acceptable to the representative of the Buyers designated
      in the Escrow Agreement.  Such proposed Audit Committee Chairman shall be
      qualified to act as an independent director under Section 10A(m) of the Exchange
      Act, shall understand and have a working knowledge of United States generally
      accepted accounting principles, and shall have had experience as an officer
      or
      committee member with significant responsibility for the preparation and filing
      of quarterly, annual and current reports with the SEC.

     

    
      
        5.
          REGISTER;
          TRANSFER AGENT INSTRUCTIONS.

      

    

     

    (a) Register.
      The
      Company shall maintain at its principal executive offices (or such other office
      or agency of the Company as it may designate by notice to each holder of
      Securities), a register for the Common Shares and the Warrants, in which the
      Company shall record the name and address of the Person in whose name the Common
      Shares and
      the
      Warrants have been issued (including the name and address of each transferee),
      the number of Common Shares held by such Person, the number of Warrant Shares
      issuable upon exercise of the Warrants held by such Person and the number of
      Common Shares held by such Person. The Company shall keep the register open
      and
      available at all times during business hours for inspection of any Buyer or
      its
      legal representatives.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    (b) Transfer
      Agent Instructions.
      The
      Company shall issue irrevocable instructions to its transfer agent, and any
      subsequent transfer agent, to issue certificates or credit shares to the
      applicable balance accounts at DTC, registered in the name of each Buyer or
      its
      respective nominee(s), for the Common Shares, and the Warrant Shares issued
      at
      the Closing or upon exercise of the Warrants in such amounts as specified from
      time to time by each Buyer to the Company upon exercise of the Warrants in
      the
      form of Exhibit
      F
      attached
      hereto (the “Irrevocable
      Transfer Agent Instructions”).
      The
      Company warrants that no instruction other than the Irrevocable Transfer Agent
      Instructions referred to in this Section 5(b), and stop transfer instructions
      to
      give effect to Section 2(h) hereof, will be given by the Company to its transfer
      agent, and that the Securities shall otherwise be freely transferable on the
      books and records of the Company as and to the extent provided in this Agreement
      and the other Transaction Documents. If a Buyer effects a sale, assignment
      or
      transfer of the Securities in accordance with Section 2(h), the Company shall
      permit the transfer and shall promptly instruct its transfer agent to issue
      one
      or more certificates or credit shares to the applicable balance accounts at
      DTC
      in such name and in such denominations as specified by such Buyer to effect
      such
      sale, transfer or assignment. In the event that such sale, assignment or
      transfer involves Common Shares or Warrant Shares sold, assigned or transferred
      pursuant to an effective registration statement or pursuant to Rule 144, the
      transfer agent shall issue such Securities to the Buyer, assignee or transferee,
      as the case may be, without any restrictive legend. The Company acknowledges
      that a breach by it of its obligations hereunder will cause irreparable harm
      to
      a Buyer. Accordingly, the Company acknowledges that the remedy at law for a
      breach of its obligations under this Section 5(b) will be inadequate and agrees,
      in the event of a breach or threatened breach by the Company of the provisions
      of this Section 5(b), that a Buyer shall be entitled, in addition to all other
      available remedies, to an order and/or injunction restraining any breach and
      requiring immediate issuance and transfer, without the necessity of showing
      economic loss and without any bond or other security being
      required.

     

    
      
        6.
          CONDITIONS
          TO THE COMPANY'S OBLIGATION TO SELL.

         

      

    

    The
      obligation of the Company hereunder to issue and sell the Common Shares and
      the
      related Warrants to each Buyer at the Closing is subject to the satisfaction,
      at
      or before the Closing Date, of each of the following conditions, provided that
      these conditions are for the Company's sole benefit and may be waived by the
      Company at any time in its sole discretion by providing each Buyer with prior
      written notice thereof:

     

    (i) Such
      Buyer shall have executed each of the Transaction Documents to which it is
      a
      party and delivered the same to the Company.

     

    (ii) Such
      Buyer shall have delivered to the Escrow Agent, in accordance with the terms
      of
      the Escrow Agreement, the Purchase Price for the Common Shares and the related
      Warrants being purchased by such Buyer and each other Buyer at the Closing
      by
      wire transfer of immediately available funds pursuant to the wire instructions
      provided by the Company or by means of a check made payable to the Escrow Agent
      which has been cleared and made freely available prior to the Closing

     

    (iii) The
      representations and warranties of such Buyer shall be true and correct in all
      material respects as of the date when made and as of the Closing Date as though
      made at that time (except for representations and warranties that speak as
      of a
      specific date which shall be true and correct as of such specified date), and
      such Buyer shall have performed, satisfied and complied in all material respects
      with the covenants, agreements and conditions required by this Agreement to
      be
      performed, satisfied or complied with by such Buyer at or prior to the Closing
      Date.

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

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

     

    (v) Each
      Buyer has completed an Accredited Investor Questionnaire to the satisfaction
      of
      the Company and has delivered the same to the Company. 

     

    
      
        7.
          CONDITIONS
          TO EACH BUYER'S OBLIGATION TO PURCHASE.

         

      

    

    The
      obligation of each Buyer hereunder to purchase the Common Shares and the related
      Warrants at the Closing is subject to the satisfaction, at or before the Closing
      Date, of each of the following conditions, provided that these conditions are
      for each Buyer's sole benefit and may be waived by such Buyer at any time in
      its
      sole discretion by providing the Company with prior written notice
      thereof:

     

    (i) The
      Company shall have executed and delivered to such Buyer (i) each of the
      Transaction Documents and (ii) the Common Shares (in such amounts as such Buyer
      shall request) and
      the
      related Warrants (in such amounts as such Buyer shall request) being purchased
      by such Buyer at the Closing pursuant to this Agreement.

     

    (ii) The
      Company shall have executed the Make Good Escrow Agreement together with the
      Buyers and Ms. Jiangping Jiang, the Company’s CEO and have delivered the shares
      thereunder to the Escrow Agent.

     

    (iii) The
      Company shall have executed the Lock-Up Agreement with Ms. Jiangping Jiang.
      

     

    (iv) Such
      Buyer shall have received the opinion of Sichenzia Ross Friedman Ference LLP,
      the Company's outside counsel (“Company Counsel”), dated as of the Closing Date,
      in substantially the form of Exhibit
      G
      attached
      hereto.

     

    (v) The
      Company shall have delivered to such Buyer a copy of the Irrevocable Transfer
      Agent Instructions, in the form of Exhibit
      F
      attached
      hereto, which instructions shall have been delivered to and acknowledged in
      writing by the Company's transfer agent.

     

    (vi) The
      Company shall have delivered to such Buyer a certificate evidencing the
      incorporation and good standing of the Company and each of its operating
      Subsidiaries in such corporation's state of incorporation issued by the
      Secretary of State of such state of incorporation as of a date within 10 days
      of
      the Closing Date.

     

    (vii) The
      Company shall have delivered to such Buyer a certificate evidencing the
      Company's qualification as a foreign corporation and good standing issued by
      the
      Secretary of State (or comparable office) of each jurisdiction in which the
      Company conducts business and is required to so qualify, as of a date within
      10
      days of the Closing Date.

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    (viii) The
      Common Stock (I) shall be quoted on the OTCBB and (II) shall not have been
      suspended, as of the Closing Date, by the SEC or FINRA from trading on the
      OTCBB
      nor shall suspension by the SEC or FINRA have been threatened.

     

    (ix) The
      Company shall have delivered to such Buyer a certified copy of the Articles
      of
      Incorporation as certified by the Secretary of State of the State of Nevada
      within 10 days of the Closing Date.

     

    (x) The
      Company shall have delivered to such Buyer a certificate, executed by the
      Secretary of the Company and dated as of the Closing Date, as to (i) the
      resolutions consistent with Section 3(b) as adopted by the Company's Board
      of
      Directors in a form reasonably acceptable to such Buyer, (ii) the Articles
      of
      Incorporation and (iii) the Bylaws, each as in effect at the Closing, in the
      form attached hereto as Exhibit
      H.

     

    (xi) The
      representations and warranties of the Company shall be true and correct as
      of
      the date when made and as of the Closing Date as though made at that time
      (except for representations and warranties that speak as of a specific date
      which shall be true and correct as of such specified date) and the Company
      shall
      have performed, satisfied and complied in all respects with the covenants,
      agreements and conditions required by the Transaction Documents to be performed,
      satisfied or complied with by the Company at or prior to the Closing Date.
      Such
      Buyer shall have received a certificate, executed by the Chief Executive Officer
      of the Company, dated as of the Closing Date, to the foregoing effect and as
      to
      such other matters as may be reasonably requested by such Buyer in the form
      attached hereto as Exhibit
      I.

     

    (xii) The
      Company shall have delivered to such Buyer a letter from the Company's transfer
      agent certifying the number of shares of Common Stock outstanding as of a date
      within five days of the Closing Date.

     

    (xiii) The
      Company shall have obtained all governmental, regulatory or third party consents
      and approvals, if any, necessary for the sale of the Common Shares and the
      Warrants.

     

    (xiv) The
      Company shall have delivered to such Buyer such other documents relating to
      the
      transactions contemplated by this Agreement as such Buyer or its counsel may
      reasonably request.

     

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

     

    8. TERMINATION .
      In
      the
      event that the Closing shall not have occurred with respect to a Buyer on or
      before ten
      (10) Business
      Days from the date hereof due to the Company's or such Buyer's failure to
      satisfy the conditions set forth in Sections 6 and 7 above (and the nonbreaching
      party's failure to waive such unsatisfied condition(s)), the nonbreaching party
      shall have the option to terminate this Agreement with respect to such breaching
      party at the close of business on such date without liability of any party
      to
      any other party; provided,
      however,
      that if
      this Agreement is terminated pursuant to this Section 8, the Company shall
      remain obligated to reimburse the non-breaching Buyers for the expenses
      described in Section 4(g) above.

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    
      
        9.
          MISCELLANEOUS.

      

    

     

    (a) Governing
      Law; Jurisdiction; Jury Trial.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by the internal laws of the State of New
      York, without giving effect to any choice of law or conflict of law provision
      or
      rule (whether of the State of New York or any other jurisdictions) that would
      cause the application of the laws of any jurisdictions other than the State
      of
      New York. Each party hereby irrevocably submits to the exclusive jurisdiction
      of
      the state and federal courts sitting in the City of New York, Borough of
      Manhattan for
      the
      adjudication of any dispute hereunder or in connection herewith or with any
      transaction contemplated hereby or discussed herein, and hereby irrevocably
      waives, and agrees not to assert in any suit, action or proceeding, any claim
      that it is not personally subject to the jurisdiction of any such court, that
      such suit, action or proceeding is brought in an inconvenient forum or that
      the
      venue of such suit, action or proceeding is improper. Each party hereby
      irrevocably waives personal service of process and consents to process being
      served in any such suit, action or proceeding by mailing a copy thereof to
      such
      party at the address for such notices to it under this Agreement and agrees
      that
      such service shall constitute good and sufficient service of process and notice
      thereof. The Company hereby appoints Sichenzia Ross Friedman Ference LLP with
      offices at 61 Broadway, 32nd
      Floor,
      New York, NY 10006 as its agent for service of process in New York. Nothing
      contained herein shall be deemed to limit
      in
      any way any right to serve process in any manner permitted by law. EACH
      PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
      REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
      CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
      HEREBY. 

     

    (b) Counterparts.
      This
      Agreement may be executed in two or more identical counterparts, all of which
      shall be considered one and the same agreement and shall become effective when
      counterparts have been signed by each party and delivered to the other party;
      provided that a facsimile signature shall be considered due execution and shall
      be binding upon the signatory thereto with the same force and effect as if
      the
      signature were an original, not a facsimile signature.

     

    (c) Headings.
      The
      headings of this Agreement are for convenience of reference and shall not form
      part of, or affect the interpretation of, this Agreement.

     

    (d) Severability.
      If any
      provision of this Agreement shall be invalid or unenforceable in any
      jurisdiction, such invalidity or unenforceability shall not affect the validity
      or enforceability of the remainder of this Agreement in that jurisdiction or
      the
      validity or enforceability of any provision of this Agreement in any other
      jurisdiction.

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    (e) Entire
      Agreement; Amendments.
      This
      Agreement supersedes all other prior oral or written agreements between the
      Buyers, the Company, their affiliates and Persons acting on their behalf with
      respect to the matters discussed herein, and this Agreement and the instruments
      referenced herein contain the entire understanding of the parties with respect
      to the matters covered herein and therein and, except as specifically set forth
      herein or therein, neither the Company nor any Buyer makes any representation,
      warranty, covenant or undertaking with respect to such matters. No provision
      of
      this Agreement may be amended other than by an instrument in writing signed
      by
      the Company and the holders of Common Shares representing at least a majority
      of
      the amount of the Common Shares, or, if prior to the Closing Date, the Buyers
      listed on the Schedule of Buyers as being obligated to purchase at least a
      majority of the amount of the Common Shares. No provision hereof may be waived
      other than by an instrument in writing signed by the party against whom
      enforcement is sought. No such amendment shall be effective to the extent that
      it applies to less than all of the holders of the Common Shares then
      outstanding. No consideration shall be offered or paid to any Person to amend
      or
      consent to a waiver or modification of any provision of any of the Transaction
      Documents unless the same consideration also is offered to all of the parties
      to
      the Transaction Documents, holders of Common Shares or holders of the Warrants,
      as the case may be. The Company has not, directly or indirectly, made any
      agreements with any Buyers relating to the terms or conditions of the
      transactions contemplated by the Transaction Documents except as set forth
      in
      the Transaction Documents. Without limiting the foregoing, the Company confirms
      that, except as set forth in this Agreement, no Buyer has made any commitment
      or
      promise or has any other obligation to provide any financing to the Company
      or
      otherwise. 

     

    (f) Notices.
      Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Agreement must be in writing and will be deemed
      to
      have been delivered: (i) upon receipt, when delivered personally; (ii) upon
      receipt, when sent by facsimile (provided confirmation of transmission is
      mechanically or electronically generated and kept on file by the sending party);
      or (iii) five Business Day after deposit with an overnight courier service,
      in
      each case properly addressed to the party to receive the same. The addresses
      and
      facsimile numbers for such communications shall be:

     

    If
      to the
      Company:

     

    
      	
              Universal
                Travel Group

            
	
              Attention:
                

            	
              Ms.
                Jiangping Jiang

            
	
              Address:
                

            	
              3/F
                Hualian Building, No. 2008 Shennan Road,

            
	 	
              Central
                Futian District,

            
	
              City & State:
                

            	
              Shenzhen,
                The People’s Republic of China

            
	
              Telephone:
                

            	
              86-755-83668559

            
	
              Fax:
                

            	
              86-755-83668556

            
	
              Email:
                

            	
              01@cnutg.cn

            

    

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    

    With
      a
      copy (which will not constitute notice) to:

    

    
      	
              Sichenzia
                Ross Friedman Ference LLP

            
	
              Attention:
                

            	
              Benjamin
                Tan, Esq.

            
	
              Telephone:
                

            	
              (212)
                930 9700

            
	
              Fax:
                

            	
              (212)
                930 9725

            
	
              Email:
                

            	
              btan@srff.com

            

    

     

    If
      to the
      Transfer Agent:

     

    American
      Stock Transfer and Trust Co.

    Address;
      6201 15th
      Avenue,
      Brooklyn, NY 11219

    Telephone: 

    Facsimile:  

    Attention:
      Mr. Wilbert Myles  

    Email:
      

    

    If
      to a
      Buyer, to its address, facsimile number and email address set forth on the
      Schedule of Buyers, with copies to such Buyer's representatives as set forth
      on
      the Schedule of Buyers, 

     

    with
      a
      copy (for informational purposes only, and which shall not constitute notice)
      to:

    

    
      	
              Secore
                & Waller, L.L.P.

            
	
              Attention:

            	
              Joan
                Conway Waller

            
	
              Address:

            	
              12222
                Merit Drive, Suite 1350, Dallas, Texas 75254

            
	
              Telephone:

            	
              (972)
                776-0200

            
	
              Fax:

            	
              (972)
                776-0200

            
	
              Email:
                

            	
              jo@secorewaller.com

            

    

    

    or
      to
      such other address, facsimile number and/or email address and/or to the
      attention of such other Person as the recipient party has specified by written
      notice given to each other party five (5) days prior to the effectiveness of
      such change. Written confirmation of receipt (A) given by the recipient of
      such
      notice, consent, waiver or other communication, (B) mechanically or
      electronically generated by the sender's facsimile machine containing the time,
      date, recipient facsimile number and an image of the first page of such
      transmission or (C) provided by an overnight courier service shall be rebuttable
      evidence of personal service, receipt by facsimile or receipt from an overnight
      courier service in accordance with clause (i), (ii) or (iii) above,
      respectively.

     

    (g) Currency.
      Unless
      otherwise indicated, all dollar amounts referred to in this Agreement are in
      United States Dollars. All amounts owing under this Agreement or any Transaction
      Document shall be paid in US dollars. All amounts denominated in other
      currencies shall be converted in the US dollar equivalent amount in accordance
      with the Exchange Rate on the date of calculation. “Exchange
      Rate”
means,
      in relation to any amount of currency to be converted into US dollars pursuant
      to this Agreement, the US dollar exchange rate as published in the Wall Street
      Journal on the relevant date of calculation.

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    (h) Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their respective successors and assigns, including any purchasers of the Common
      Shares or the Warrants. The Company shall not assign this Agreement or any
      rights or obligations hereunder without the prior written consent of the holders
      of Common Shares representing at least a majority of the number of the Common
      Shares, including by merger or consolidation. A Buyer may assign some or all
      of
      its rights hereunder without the consent of the Company, in which event such
      assignee shall be deemed to be a Buyer hereunder with respect to such assigned
      rights.

     

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

     

    (j) Survival.
      Unless
      this Agreement is terminated under Section 8, the representations and warranties
      of the Company and the Buyers contained in Sections 2 and 3, the agreements
      and
      covenants set forth in Sections 4, 5 and 9 shall survive the Closing and the
      delivery and exercise of Securities, as applicable. Each Buyer shall be
      responsible only for its own representations, warranties, agreements and
      covenants hereunder.

     

    (k) Further
      Assurances.
      Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as any other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

     

    (l) Indemnification.
      In
      consideration of each Buyer's execution and delivery of the Transaction
      Documents and acquiring the Securities thereunder and in addition to all of
      the
      Company's other obligations under the Transaction Documents, the Company shall
      defend, protect, indemnify and hold harmless each Buyer and each other holder
      of
      the Securities and all of their stockholders, partners, members, officers,
      directors, employees and direct or indirect investors and any of the foregoing
      Persons' agents or other representatives (including, without limitation, those
      retained in connection with the transactions contemplated by this Agreement)
      (collectively, the “Indemnitees”)
      from
      and against any and all actions, causes of action, suits, claims, losses, costs,
      penalties, fees, liabilities and damages, and expenses in connection therewith
      (irrespective of whether any such Indemnitee is a party to the action for which
      indemnification hereunder is sought), and including reasonable attorneys' fees
      and disbursements (the “Indemnified
      Liabilities”),
      incurred by any Indemnitee as a result of, or arising out of, or relating to
      (a)
      any misrepresentation or breach of any representation or warranty made by the
      Company in the Transaction Documents or any other certificate, instrument or
      document contemplated hereby or thereby, (b) any breach of any covenant,
      agreement or obligation of the Company contained in the Transaction Documents
      or
      any other certificate, instrument or document contemplated hereby or thereby
      or
      (c) any cause of action, suit or claim brought or made against such Indemnitee
      by a third party (including for these purposes a derivative action brought
      on
      behalf of the Company) and arising out of or resulting from (i) the execution,
      delivery, performance or enforcement of the Transaction Documents or any other
      certificate, instrument or document contemplated hereby or thereby, (ii) any
      transaction financed or to be financed in whole or in part, directly or
      indirectly, with the proceeds of the issuance of the Securities, or (iii) the
      status of such Buyer or holder of the Securities as an investor in the Company.
      To the extent that the foregoing undertaking by the Company may be unenforceable
      for any reason, the Company shall make the maximum contribution to the payment
      and satisfaction of each of the Indemnified Liabilities which is permissible
      under applicable law. Except as otherwise set forth herein, the mechanics and
      procedures with respect to the rights and obligations under this Section 9(k)
      shall be the same as those set forth in Section 6 of the Registration Rights
      Agreement.

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    (m) No
      Strict Construction.
      The
      language used in this Agreement will be deemed to be the language chosen by
      the
      parties to express their mutual intent, and no rules of strict construction
      will
      be applied against any party.

     

    (n) Remedies.
      Each
      Buyer and each holder of the Securities shall have all rights and remedies
      set
      forth in the Transaction Documents and all rights and remedies which such
      holders have been granted at any time under any other agreement or contract
      and
      all of the rights which such holders have under any law. Any Person having
      any
      rights under any provision of this Agreement shall be entitled to enforce such
      rights specifically (without posting a bond or other security), to recover
      damages by reason of any breach of any provision of this Agreement and to
      exercise all other rights granted by law. Furthermore, the Company recognizes
      that in the event that it fails to perform, observe, or discharge any or all
      of
      its obligations under the Transaction Documents, any remedy at law may prove
      to
      be inadequate relief to the Buyers. The Company therefore agrees that the Buyers
      shall be entitled to seek temporary and permanent injunctive relief in any
      such
      case without the necessity of proving actual damages and without posting a
      bond
      or other security.

     

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

     

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

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    (q) Independent
      Nature of Buyers' Obligations and Rights.
      The
      obligations of each Buyer under any Transaction Document are several and not
      joint with the obligations of any other Buyer, and no Buyer shall be responsible
      in any way for the performance of the obligations of any other Buyer under
      any
      Transaction Document. Nothing contained herein or in any other Transaction
      Document, and no action taken by any Buyer pursuant hereto or thereto, shall
      be
      deemed to constitute the Buyers as a partnership, an association, a joint
      venture or any other kind of entity, or create a presumption that the Buyers
      are
      in any way acting in concert or as a group with respect to such obligations
      or
      the transactions contemplated by the Transaction Documents and the Company
      acknowledges that the Buyers are not acting in concert or as a group with
      respect to such obligations or the transactions contemplated by the Transaction
      Documents. Each Buyer confirms that it has independently participated in the
      negotiation of the transaction contemplated hereby with the advice of its own
      counsel and advisors. Each Buyer shall be entitled to independently protect
      and
      enforce its rights, including, without limitation, the rights arising out of
      this Agreement or out of any other Transaction Documents, and it shall not
      be
      necessary for any other Buyer to be joined as an additional party in any
      proceeding for such purpose.

     

    (r) Judgment
      Currency.

     

    If
      for
      the purpose of obtaining or enforcing judgment against the Company in any court
      in any jurisdiction it becomes necessary to convert into any other currency
      (such other currency being hereinafter in this Section 9(r) referred to as
      the
“Judgment
      Currency”)
      an
      amount due in US dollars under this Agreement, the conversion shall be made
      at
      the Exchange Rate prevailing on the Business Day immediately
      preceding:

     

    (1) the
      date
      of actual payment of the amount due, in the case of any proceeding in the courts
      of New York or in the courts of any other jurisdiction that will give effect
      to
      such conversion being made on such date: or 

     

    (2) the
      date
      on which the foreign court determines, in the case of any proceeding in the
      courts of any other jurisdiction (the date as of which such conversion is made
      pursuant to this Section being hereinafter referred to as the “Judgment
      Conversion Date”).

     

    If
      in the
      case of any proceeding in the court of any jurisdiction referred to in Section
      9(r)(i)(2) above, there is a change in the Exchange Rate prevailing between
      the
      Judgment Conversion Date and the date of actual payment of the amount due,
      the
      applicable party shall pay such adjusted amount as may be necessary to ensure
      that the amount paid in the Judgment Currency, when converted at the Exchange
      Rate prevailing on the date of payment, will produce the amount of US dollars
      which could have been purchased with the amount of Judgment Currency stipulated
      in the judgment or judicial order at the Exchange Rate prevailing on the
      Judgment Conversion Date.

     

    Any
      amount due from the Company under this provision shall be due as a separate
      debt
      and shall not be affected by judgment being obtained for any other amounts
      due
      under or in respect of this Agreement.

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    [Signature
      Pages Follow]

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      each
      Buyer and the Company have caused its respective signature page to this
      Securities Purchase Agreement to be duly executed as of the date first written
      above.

     

    
      	
              COMPANY:

            
	 
	
              UNIVERSAL
                TRAVEL GROUP

            
	 	 
	
              By:

            	 

	 	
              Name:
                Jiangping Jiang

            
	 	
              Title:
                Chief Executive Officer

            

    

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      each
      Buyer and the Company have caused their respective signature page to this
      Securities Purchase Agreement to be duly executed as of the date first written
      above.

    

    
      	
              BUYER:

            
	 
	
              ACCESS
                AMERICA FUND, LP

            
	 	 
	
              By:

            	
               

            
	 	
              Name:

            
	 	
              Title:

            
	 	 
	
              BUYER:

            
	 
	
              CHINAMERICA
                FUND LP

            
	 	 
	
              By:

            	
               

            
	 	
              Name:

            
	 	
              Title:

            
	 	 
	
              BUYER:

            
	 
	
              POPE
                INVESTMENT II LLC

            
	 	 
	
              By:

            	
               

            
	 	
              Name:

            
	 	
              Title:

            

    

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    
      	
              BUYER:

            
	 
	
              HELLER
                CAPITAL INVESTMENTS, LLC

            
	 	 
	
              By:

            	
               

            
	 	
              Name:

            
	 	
              Title:

            
	 	 
	
              BUYER:

            
	 
	
              CGM
                as C/F RONALD I. HELLER IRA

            
	 	 
	
              By:

            	
               

            
	 	
              Name:

            
	 	
              Title:

            
	 	 
	
              BUYER:

            
	 
	
              INVESTMENT
                HUNTER, LLC

            
	 	 
	
              By:

            	
               

            
	 	
              Name:

            
	 	
              Title:

            

    

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    
      	
              BUYER:

            
	 
	
              MARED
                INVESTMENTS

            
	 	 
	
              By:

            	
               

            
	 	
              Name:

            
	 	
              Title:

            
	 	 
	
              BUYER:

            
	 
	
              HIGH
                CAPITAL FUNDING, LLC

            
	 	 
	
              By:

            	
               

            
	 	
              Name:

            
	 	
              Title:

            
	 	 
	
              BUYER:

            
	 
	
              MERRILL
                LYNCH, PIERCE, FENNER & 

              SMITH,
                FBO BEAU L. JOHNSON

            
	 	 
	
              By:

            	
               

            
	 	
              Name:

            
	 	
              Title:

            

    

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      OF BUYERS

    

    

      
        	
                Buyer

              	 	
                Address and Facsimile

                Number

              	 	
                Number of Common
                  Shares

              	 	
                Number of Warrant
                  Shares

              	 	
                Purchase Price

              	 	
                Legal Representative’s

                Address and Facsimile

                Number

              	 
	
                Access
                  America Fund, LP

                 

              	 	 
                	
                
                

                1800
                  West Loop South, Suite 485, Houston, TX 77027

                Fax:

              	 	 	
                
                

                645,161

              	 	 	
                
                

                322,581

              	 
                	
                
                

                $

              	
                
                

                1,000,000

              	 	 	
                Access
                  America Fund, LP

                1800
                  West Loop South, Suite 485, Houston, TX 77027

                Fax:

              	 
	
                Chinamerica
                  Fund LP

              	 	 	
                
                

                2909
                  At. Andrews Drive, Richardson, TX 75082

                Fax:

              	 	 	
                
                

                645,161

              	 	 	
                
                

                322,581

              	 
                	
                
                

                $

              	
                
                

                1,000,000

              	 	 	
                Access
                  America Fund, LP

                1800
                  West Loop South, Suite 485, Houston, TX 77027

                Fax:

              	 
	
                Pope
                  Investments II LLC

              	 	 	
                
                

                5100
                  Poplar Avenue, Suite 805, Memphis, TN 38137

                Fax:
                  

              	 
                 	 
                	
                
                

                1,935,484

              	 
                 	  	
                
                

                967,742

              	 
                 	
                
                

                $

              	
                
                

                3,000,000

              	 
                	 	
                Access
                  America Fund, LP

                1800
                  West Loop South, Suite 485, Houston, TX 77027

                Fax:

              	 
	
                Heller
                  Capital Investments, LLC

              	 	 	
                
                

                700
                  E. Palisade Avenue, Englewood Cliffs, NJ 07632

                Fax:

              	 	 	
                
                

                350,000

              	 	 	
                
                

                175,000

              	 	
                
                

                $

              	
                
                

                542,500

              	 	 	
                Access
                  America Fund, LP

                1800
                  West Loop South, Suite 485, Houston, TX 77027

                Fax:

              	 
	
                CGM
                  as C/F Ronald I. Heller IRA

              	 	 	
                
                

                700
                  E. Palisade Avenue, Englewood Cliffs, NJ 07632

                Fax:

              	 	 	
                
                

                150,000

              	 	 	
                
                

                75,000

              	 	
                
                

                $

              	
                
                

                232,500

              	 	 	
                Access
                  America Fund, LP

                1800
                  West Loop South, Suite 485, Houston, TX 77027

                Fax:

              	 
	
                Investment
                  Hunter, LLC

              	 	 	
                
                

                1048
                  Texan Trail, Grapevine, TX 76051

                Fax:

              	 	 	
                
                

                645,161

              	 	 	
                
                

                322,581

              	 	
                
                

                $

              	
                
                

                1,000,000

              	 	 	
                Access
                  America Fund, LP

                1800
                  West Loop South, Suite 485, Houston, TX 77027

                Fax:

              	 

      

       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

       

      
        	
                MARed
                  Investments

              	 	 	
                
                

                29719
                  High Eschelon, Fair Oaks Ranch, TX 78015

                Fax:

              	 	 	
                
                

                129,032

              	 	 	
                
                

                64,516

              	 
                 	
                
                

                $

              	
                
                

                200,000

              	 
                 	 	
                Access
                  America Fund, LP

                1800
                  West Loop South, Suite 485, Houston, TX 77027

                Fax:

              	 
	
                High
                  Capital Funding. LLC

              	 	 	
                
                

                333
                  Sandy Springs Circle, Suite 230, Atlanta, GA 30328

                Fax:

              	 	 	
                
                

                75,806

              	 	 	
                
                

                37,903

              	 
                	
                
                

                $

              	
                
                

                117,500

              	 
                	 	
                Access
                  America Fund, LP

                1800
                  West Loop South, Suite 485, Houston, TX 77027

                Fax:

              	 
	
                Merrill
                  Lynch, Pierce, Fenner & Smith, FBO Beau L. Johnson

              	 	 	
                
                

                150
                  Fauyetteville St., Suite 2000, Raleigh, NC 27601-2919

                Fax:

              	 	 	
                
                

                12,903

              	 	 	
                
                

                6,452

              	 
                	
                
                

                $

              	
                
                

                20,000

              	 
                	 	
                Access
                  America Fund, LP

                1800
                  West Loop South, Suite 485, Houston, TX 77027

                Fax:

              	 
	
                TOTAL

              	 	 	  	 	 	
                
                

                4,588,708

              	 	 	
                
                

                2,294,356

              	 
                	
                
                

                $

              	
                
                

                7,112,500

              	  	 
                	
                 

              	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

      

    

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

     

    EXHIBITS

    

    
      	
              Exhibit
                A

            	
              Form
                of Warrant

            
	
              Exhibit
                B

            	
              Form
                of Registration Rights Agreement

            
	
              Exhibit
                C

            	
              Form
                of Closing Escrow Agreement

            
	
              Exhibit
                D

            	
              Form
                of Make Good Escrow Agreement

            
	
              Exhibit
                E

            	
              Form
                of Lock-Up Agreement

            
	
              Exhibit
                F

            	
              Form
                of Irrevocable Transfer Agent Instructions

            
	
              Exhibit
                G

            	
              Form
                of Company Counsel Opinion

            
	
              Exhibit
                H

            	
              Form
                of Secretary's Certificate

            
	
              Exhibit
                I

            	
              Form
                of Officer's Certificate

            
	
              Exhibit
                J

            	
              List
                of Stock Option Grantees

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULES

     

    Schedule
      3(a) -
      List of
      Subsidiaries

    Schedule
      3(l) - Absence of Certain Changes

    Schedule
      3(r) - Equity Capitalization

    Schedule
      3(s) - Indebtedness and Other Contracts

    Schedule
      3(t) - Absence of Litigation

    Schedule
      3(u) - InsuranceMAKE
      GOOD SECURITIES ESCROW AGREEMENT

    

    THIS
      MAKE
      GOOD SECURITIES ESCROW AGREEMENT (the “Make
      Good Agreement”),
      dated
      as of August 28, 2008, is entered into by and among Universal Travel Group,
      a
      Nevada corporation (the “Company”),
      the
      investors listed on the Schedule of Buyers in the Securities Purchase Agreement
      dated August 28,
      2008
      (the
“Buyers”),
      Jiangping Jiang (the “Principal
      Shareholder”)
      and
      Sichenzia Ross Friedman Ference LLP with an address at 61 Broadway,
      32nd
      Floor,
      New York, NY 10006 (the “Escrow
      Agent”).

    

    Capitalized
      terms used but not defined herein shall have the meanings set forth in the
      Securities Purchase Agreement (as defined below).

    

    WITNESSETH:

    

    WHEREAS,
      the Buyers will be purchasing from the Company and the Company will be selling
      to the Buyers an aggregate of 4,588,708 shares of the Company’s common stock,
      par value $0.001 per share (“Common
      Stock”),
      and
      warrants to acquire 2,294,356 shares of Common Stock for a total aggregate
      purchase price of approximately $7,112,500 in a private placement financing
      transaction (the “Financing
      Transaction”)
      pursuant to a Securities Purchase Agreement dated as of the date hereof (the
      “Closing
      Date”)
      by and
      among the Company and the Buyers (the “Securities
      Purchase Agreement”);

    

    WHEREAS,
      as an inducement to the Buyers to enter into the Securities Purchase Agreement,
      the Principal Shareholder has agreed to place the Escrow Shares (as hereinafter
      defined) into escrow for the benefit of the Buyers in the event the Company
      fails to achieve the following financial performance thresholds for the 12-month
      periods ended December 31, 2008 (“2008”)
      and
      December 31, 2009 (“2009”):

    

    (a)
       In
      2008,
      Net Income, as defined in accordance with United States generally accepted
      accounting principles (“US
      GAAP”)
      and
      reported by the Company in its audited financial statements for 2008 (the
“2008
      financial statements”)
      exceeds $12,000,000 (the “2008
      Performance Threshold”);

    

    (b)
       In
      2009,
      Net Income, as defined in accordance with US GAAP and reported by the Company
      in
      its audited financial statements for 2008 (the “2009
      financial statements”)
      exceeds $15,600,000 (the “2009
      Performance Threshold”);
      and

    

    WHEREAS,
      the Company, the Buyers and the Principal Shareholder have requested that the
      Escrow Agent hold the Escrow Shares on the terms and conditions set forth in
      this Agreement and the Escrow Agent has agreed to act as escrow agent pursuant
      to the terms and conditions of this Agreement.

    

    NOW,
      THEREFORE, in consideration of the covenants and mutual promises contained
      herein and other good and valuable consideration, the receipt and legal
      sufficiency of which are hereby acknowledged and intending to be legally bound
      hereby, the parties agree as follows:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      I

    

    TERMS
      OF
      THE ESCROW

    

    1.1. The
      parties hereby agree to establish an escrow account with the Escrow Agent
      whereby the Escrow Agent shall hold the Escrow Shares as contemplated by this
      Agreement.

    

    1.2. Upon
      the
      execution of this Agreement, the Escrow Agreement shall open a brokerage account
      with JP Morgan Chase (the “Escrow Agent Brokerage Account”) whereupon the
      Principal Shareholder shall deposit or cause to be deposited at
      least
      5,000,000 shares of Common Stock into the Escrow Agent Brokerage Account. The
      Escrow Agent Brokerage Account shall be in the sole name of the Escrow Agent
      and
      only the Escrow Agent shall have sole authority to transact the shares placed
      therein. In the event that the Principal Shareholder deposits shares in excess
      if 5,000,00 shares of Common Stock into the Escrow Agent Brokerage Account,
      the
      parties agree and hereby irrevocably authorize the Escrow Agent to transfer
      such
      excess shares back to the Principal Shareholder’s brokerage account upon
      instructions from the Principal Shareholder without requiring further
      authorization or approval from the Company and the Buyers,In addition, the
      Principal Shareholder shall deliver to the Escrow Agent her options to purchase
      2,000,000 shares of Common Stock, along with undatedstock powers executed in
      blank with signature medallion guaranteed within seven (7) days of the grant
      of
      the same to her pursuant to Section 4(o) of the Securities Purchase Agreement.
      For the avoidance of any doubt, the Escrow Agent shall not be responsible for
      procuring the deposit of the options and stock powers from the Principal
      Shareholder. The said 5,000,000 shares of Common Stock and the options to
      purchase 2,000,000 shares of Common Stock shall collectively be referred to
      as
“Escrow
      Shares”.

    

    1.3. The
      Company will provide the Buyers with (i) the Company’s audited financial
      statements for 2008, prepared in accordance with US GAAP, on or before March
      31,
      2009 and (ii) the Company’s audited financial statements for 2009, prepared in
      accordance with US GAAP, on or before March 31, 2010, so as to allow the Buyers
      the opportunity to evaluate whether the 2008 Performance Threshold and the
      2009
      Performance Threshold were attained. In the event that any Buyer receives the
      financial information prior to its dissemination by the Company in either a
      press release or in the Company’s SEC Documents, the Company shall issue a press
      release announcing the information or file a Form 8-K within one trading day
      of
      a request by the Buyer to make such information public.

    

    1.4. The
      parties hereby agree that the Escrow Shares shall be delivered to the Buyers
      as
      set forth below:

    

    (i) If
      Net
      Income for 2008 shall be at least ten per cent (10%) less than the 2008
      Performance Threshold, then (x) the 2008 Escrow Shares (defined below) shall
      be
      distributed on a pro rata basis to the Buyers based on the number of shares
      of
      Common Stock purchased by each Buyer pursuant to the Securities Purchase
      Agreement, and (y) within five (5) business
      days after March 31, 2009, the Company shall provide written instructions to
      the
      Escrow Agent instructing the Escrow Agent to issue and deliver the 2008 Escrow
      Shares to each Buyer on a pro rata basis based on the number of shares of Common
      Stock purchased by that Buyer pursuant to the Securities Purchase Agreement,
      and
      shall provide a copy of such instructions to each Buyer. “2008
      Escrow Shares”
shall
      be number of Escrow Shares equivalent to the percentage by which the Company
      missed the 2008 Performance Threshold. For example, if the Company were to
      miss
      the 2008 Performance Threshold by 15%, the 2008 Escrow Shares shall comprise
      750,000 shares of Common Stock and options to purchase 300,000 shares of Common
      Stock. For the avoidance of any doubt, no 2008 Escrow Shares shall be
      transferred to any Buyer in the event the Company misses the 2008 Performance
      Threshold by less than 10%.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (ii) If
      Net
      Income for 2009 shall be at least ten per cent (10%) less than the 2009
      Performance Threshold, then (x) the 2009 Escrow Shares (defined below) shall
      be
      distributed on a pro rata basis to the Buyers based on the number of shares
      of
      Common Stock purchased by each Buyer pursuant to the Securities Purchase
      Agreement, and (y) within five (5) business
      days after March 31, 2010, the Company shall provide written instructions to
      the
      Escrow Agent instructing the Escrow Agent to issue and deliver the 2009 Escrow
      Shares to each Buyer on a pro rata basis based on the number of shares of Common
      Stock purchased by that Buyer pursuant to the Securities Purchase Agreement,
      and
      shall provide a copy of such instructions to each Buyer. “2009
      Escrow Shares”
shall
      be the number of Escrow Shares equivalent to the percentage by which the Company
      missed the 2009 Performance Threshold. For example, if the Company were to
      miss
      the 2009 Performance Threshold by 25%, the 2009 Escrow Shares shall comprise
      1,250,000 shares of Common Stock and options to purchase 500,000 shares of
      Common Stock. For the avoidance of any doubt, no 2009 Escrow Shares shall be
      transferred to any Buyer in the event the Company misses the 2009 Performance
      Threshold by less than 10%.

    

    1.5 In
      the
      event 2008 Escrow Shares are delivered to the Buyers, the Principal Shareholder
      shall forthwith deposit in Escrow Agent Brokerage Account, in the case of shares
      of Common Stock, and deliver to the Escrow Agent, in the case of options, such
      additional number of shares of Common Stock and stock options along with undated
      stock powers executed in blank with signature medallion guaranteed to Escrow
      Agent so as to ensure that the Escrow Shares include 5,000,000 shares of Common
      Stock together with options to purchase an additional 2,000,000 shares of Common
      Stock or an additional number of shares of Common Stock.

    

    1.6 The
      parties hereby agree that in determining the 2008 Performance Threshold and
      the
      2009 Performance Threshold, the parties shall not
      take
      into account (and such amounts shall not be included in determining Net
      Income):

    

    (i) the
      offering and transactional costs associated with the Financing Transaction,
      including without limitation, legal and audit costs, registration and filing
      fees;

    

    (ii) losses
      the Company has suffered or reasonably calculated to have suffered as a result
      of a force majeure event, which shall mean (i) acts of God such as earthquakes
      with an intensity of more than 7.0 on the Richter scale in geographic areas
      where the Company derives more than 50% of
      its
      revenue, or (ii) snow storms, rainstorms, floods and other natural catastrophes
      of such intensity and/or duration that exceed the average monthly amount for
      that geographic area by more than 100% in geographic areas in which the Company
      derives more than 50% of its revenue;

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    (iii)
      the
      costs and expense incurred by the Company in 2008 and incurred in 2009 in
      establishing an employee stock option plan pursuant to Section 4(o) of the
      Securities Purchase Agreement and granting stock options to the Principal
      Shareholder thereunder; and

    

    (iv)
      any
      compensation expense incurred by the Company in connection with the release
      of
      any Escrow Shares to the Principal Shareholder.

    

    1.7 If
      the
      Company does not achieve either the 2008 Performance Threshold or the 2009
      Performance Threshold, the Company shall use its commercially reasonable efforts
      to promptly cause the 2008 Escrow Shares or the 2009 Escrow Shares, as the
      case
      may be, to be delivered to the Buyers, including causing its transfer agent
      promptly to issue the certificates in the names of the Buyers and causing its
      securities counsel to provide any written instruction required by the Escrow
      Agent in a timely manner so that the issuances and delivery contemplated above
      can be achieved within ten (10) business days after March 31, 2009 or March
      31,
      2010, as applicable. For the avoidance of any doubt, the Escrow Agent shall
      not
      be responsible to procure written instructions from the Company to transfer
      the
      2008 Escrow Shares or the 2009 Escrow Shares to the Buyers.

    

    1.8 Upon
      the
      written instructions of the Company, the Escrow Agent shall deliver the 2008
      Escrow Shares and the 2009 Escrow Shares, as applicable, to each Buyer or the
      Principal Shareholder, and shall be held harmless from any claim, loss or
      expense regarding such delivery regardless of whether the other provisions
      of
      this Make Good Securities Escrow Agreement are complied with or
      met.

    

    1.9 The
      Escrow Agent shall upon the delivery of 2008 Escrow Shares and 2009 Escrow
      Shares to the Buyers, but in no event no later than April 15, 2010, return
      to
      the Principal Shareholder any Escrow Shares not required to be delivered to
      the
      Buyers pursuant to the terms hereof.

    

    ARTICLE
      II

    

    REPRESENTATIONS
      OF THE PRINCIPAL SHAREHOLDER

    

    2. The
      Principal Shareholder hereby represents and warrants to the Buyers as
      follows:

    

    (i) The
      Escrow Shares placed into escrow hereunder by the Principal Shareholder are
      validly issued, fully paid and nonassessable shares of the Company. The
      Principal Shareholder is the record and beneficial owner of the Escrow Shares
      placed into escrow pursuant to this Agreement by the Principal Shareholder
      and
      has good title to such Escrow Shares, free and clear of all pledges, liens,
      claims and encumbrances, except encumbrances created by this Agreement. There
      are no restrictions on the ability of the Principal Shareholder to transfer
      the
      Escrow Shares placed into escrow pursuant to this Agreement by the Principal
      Shareholder or to enter into this Agreement other than transfer restrictions
      under the Lock-Up Agreement and/or applicable federal and state securities
      laws.
      While any Escrow Shares remain in escrow, the Principal Shareholder will not
      pledge any Escrow Shares and will not create or permit to be created or to
      exist
      any lien, claim or encumbrance upon any Escrow Share. Upon any delivery of
      Escrow Shares placed into escrow pursuant to this Agreement by the Principal
      Shareholder to the Buyers hereunder, the Buyers will acquire good and valid
      title to such Escrow Shares, free and clear of any pledges, liens, claims and
      encumbrances.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (ii) The
      performance of this Agreement and compliance with the provisions hereof will
      not
      violate any provision of any law applicable to the Principal Shareholder and
      will not conflict with or result in any breach of any of the terms, conditions
      or provisions of, or constitute a default under, or result in the creation
      or
      imposition of any lien, charge or encumbrance upon, any of the properties or
      assets of the Principal Shareholder pursuant to the terms of the certificate
      of
      incorporation or by-laws of the Company or any indenture, mortgage, deed of
      trust or other agreement or instrument binding upon the Principal Shareholder
      or
      affecting the Escrow Shares. No notice to, filing with, or authorization,
      registration, consent or approval of any governmental authority or other person
      is necessary for the execution, delivery or performance of this Agreement or
      the
      consummation of the transactions contemplated hereby by the Principal
      Shareholder.

    

    ARTICLE
      III

    

    MISCELLANEOUS

    

    3.1 The
      Company will pay Escrow Agent a total of $1,000 for all services rendered by
      Escrow Agent hereunder.

    

    3.2 No
      waiver
      or any breach of any covenant or provision herein contained shall be deemed
      a
      waiver of any preceding or succeeding breach thereof, or of any other covenant
      or provision herein contained. No extension of time for performance of any
      obligation or act shall be deemed an extension of the time for performance
      of
      any other obligation or act.

    

    3.3 All
      notices, demands, consents, requests, instructions and other communications
      to
      be given or delivered or permitted under or by reason of the provisions of
      this
      Agreement or in connection with the transactions contemplated hereby shall
      be in
      writing and shall be deemed to be delivered and received by the intended
      recipient as follows: (i) if personally delivered, on the business day of such
      delivery (as evidenced by the receipt of the personal delivery service), (ii)
      if
      mailed certified or registered mail return receipt requested, two (2) business
      days after being mailed, (iii) if delivered by overnight courier (with all
      charges having been prepaid), on the business day of such delivery (as evidenced
      by the receipt of the overnight courier service of recognized standing), or
      (iv)
      if delivered by facsimile transmission, on the business day of such delivery
      if
      sent by 6:00 p.m. in the time zone of the recipient, or if sent after that
      time,
      on the next succeeding business day (as evidenced by the printed confirmation
      of
      delivery generated by the sending party’s telecopier machine). If any notice,
      demand, consent, request, instruction or other communication cannot be delivered
      because of a changed address of which no notice was given (in accordance with
      this Section 3.3), or the refusal to accept same, the notice, demand, consent,
      request, instruction or other communication shall be deemed received on the
      second business day the notice is sent (as evidenced by a sworn affidavit of
      the
      sender). All such notices, demands, consents, requests, instructions and other
      communications will be sent to the following addresses or facsimile numbers
      as
      applicable.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      
        	
                If
                  to Escrow Agent:

              	
                Sichenzia
                  Ross Friedman Ference LLP

              
	 	
                61
                  Broadway, 32nd
                  Floor,

              
	 	
                New
                  York, NY 10006

              
	 	
                Attention:    Benjamin
                  Tan, Esq.

              
	 	
                Tel
                  No.:212-930-9700

              
	 	
                Fax
                  No.: 212-930-9725

              

      

    

    

    If
      to the
      Company or the Principal Shareholder:

    

    
      	 	
              Universal
                Travel Group

            
	 	
              Attention:

            	
              Ms.
                Jiangping Jiang

            
	 	
              Address:

            	
              3/F
                Hualian Building, No. 2008 Shennan Road, Central Futian
                District,

            
	 	
              City
                & State: 

            	
              Shenzhen,
                The People’s Republic of China

            
	 	
              Telephone:

            	
              86-755-83668559

            
	 	
              Fax:

            	
              86-755-83668556

            
	 	
              Email:

            	
              01@cnutg.cn

            

    

    

    With
      a
      copy to:

    

      
        	 	
                Sichenzia
                  Ross Friedman Ference LLP

              
	 	
                61
                  Broadway, 32nd
                  Floor

              
	 	
                New
                  York, NY 10006

              
	 	
                Attention:
                  Benjamin Tan, Esq.

              
	 	
                Tel.
                  No.: (212) 930-9700

              
	 	
                Fax
                  No.: (212) 930-9725

              
	 	 
	
                If
                  to the Buyers:

              	
                to
                  each Buyer at the address and facsimile numbers set out below that
                  Buyers
                  signature

              

      

    

     

    or
      to
      such other address and to the attention of such other person as any of the
      above
      may have furnished to the other parties in writing and delivered in accordance
      with the provisions set forth above.

    

    3.4 This
      Escrow Agreement shall be binding upon and shall inure to the benefit of the
      permitted successors and permitted assigns of the parties hereto.

    

    3.5 This
      Escrow Agreement is the final expression of, and contains the entire agreement
      between, the parties with respect to the Escrow Shares, and the subject matter
      hereof and supersedes all prior understandings with respect to the Escrow
      Shares. This Escrow Agreement is one of a series of agreements relating to
      the
      Financing Transaction, and the terms hereof shall not relate to any aspect
      of
      the Financing Transaction other than the Escrow Shares and the escrow hereby
      created. This Escrow Agreement may not be modified, changed, supplemented or
      terminated, nor may any obligations hereunder be waived, except by written
      instrument signed by the parties to be charged or by its agent duly authorized
      in writing or as otherwise expressly permitted herein.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    3.6 Whenever
      required by the context of this Escrow Agreement, the singular shall include
      the
      plural and each gender shall include all other genders. This Escrow Agreement
      shall not be construed as if it had been prepared by one of the parties, but
      rather as if both parties had prepared the same. Unless otherwise indicated,
      all
      references to Articles are to articles of this Escrow
      Agreement.

    

    3.7 The
      parties hereto expressly agree that this Escrow Agreement shall be governed
      by,
      interpreted under and construed and enforced in accordance with the laws of
      the
      State of New York, without regard to conflicts of law principles that would
      result in the application of the substantive laws of another jurisdiction.
      Any
      action to enforce, arising out of, or relating in any way to, any provisions
      of
      this Escrow Agreement shall only be brought in a state or Federal court sitting
      in New York City, Borough of Manhattan.

    

    3.8 The
      Escrow Agent’s duties hereunder may be altered, amended, modified or revoked
      only by a writing signed by the Company, the Principal Shareholder, each Buyer
      and the Escrow Agent.

    

    3.9 The
      Escrow Agent shall be obligated only for the performance of such duties as
      are
      specifically set forth herein and may rely and shall be protected in relying
      or
      refraining from acting on any instrument reasonably believed by the Escrow
      Agent
      to be genuine and to have been signed or presented by the proper party or
      parties. The Escrow Agent shall not be personally liable for any act the Escrow
      Agent may do or omit to do hereunder as the Escrow Agent while acting in good
      faith and in the absence of gross negligence, fraud and willful misconduct,
      and
      any act done or omitted by the Escrow Agent pursuant to the advice of the Escrow
      Agent’s attorneys-at-law shall be conclusive evidence of such good faith, in the
      absence of gross negligence, fraud and willful misconduct.

    

    3.10 The
      Escrow Agent is hereby expressly authorized to disregard any and all warnings
      given by any of the parties hereto or by any other person or corporation,
      excepting only orders or process of courts of law and is hereby expressly
      authorized to comply with and obey orders, judgments or decrees of any court.
      In
      case the Escrow Agent obeys or complies with any such order, judgment or decree,
      the Escrow Agent shall not be liable to any of the parties hereto or to any
      other person, firm or corporation by reason of such decree being subsequently
      reversed, modified, annulled, set aside, vacated or found to have been entered
      without jurisdiction.

    

    3.11 The
      Escrow Agent shall not be liable in any respect on account of the identity,
      authorization or rights of the parties executing or delivering or purporting
      to
      execute or deliver any documents or papers deposited or called for hereunder
      in
      the absence of gross negligence, fraud and willful
      misconduct.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    3.12 The
      Escrow Agent shall be entitled to employ such legal counsel and other experts
      as
      the Escrow Agent may deem necessary properly to advise the Escrow Agent in
      connection with the Escrow Agent’s duties hereunder, may rely upon the advice of
      such counsel, and may pay such counsel reasonable compensation therefor which
      shall be paid by the Escrow Agent. The
      Escrow Agent has acted as legal counsel for the Company and the Principal
      Shareholder and may continue to act as legal counsel for the Company and the
      Principal Shareholder from time to time, notwithstanding its duties as the
      Escrow Agent hereunder. The Buyers consent to the Escrow Agent in such capacity
      as legal counsel for the Company and the Principal Shareholder and waive any
      claim that such representation represents a conflict of interest on the part
      of
      the Escrow Agent. The Buyers understand that the Escrow Agent is relying
      explicitly on the foregoing provision in entering into this Escrow
      Agreement.

    

    3.13 The
      Escrow Agent’s responsibilities as escrow agent hereunder shall terminate if the
      Escrow Agent shall resign by giving written notice to the Company and the
      Buyers. In the event of any such resignation, the Buyers and the Company shall
      appoint a successor Escrow Agent and the Escrow Agent shall deliver to such
      successor Escrow Agent any Escrow Shares and other documents held by the Escrow
      Agent.

    

    3.14 If
      the
      Escrow Agent reasonably requires other or further instruments in connection
      with
      this Escrow Agreement or obligations in respect hereto, the necessary parties
      hereto shall join in furnishing such instruments.

    

    3.15 It
      is
      understood and agreed that should any dispute arise with respect to the delivery
      and/or ownership or right of possession of the documents or the Escrow Shares
      held by the Escrow Agent hereunder, the Escrow Agent is authorized and directed
      in the Escrow Agent’s sole discretion (1) to retain in the Escrow Agent’s
      possession without liability to anyone all or any part of said documents or
      the
      Escrow Shares until such disputes shall have been settled either by mutual
      written agreement of the parties concerned or by a final order, decree or
      judgment or a court of competent jurisdiction after the time for appeal has
      expired and no appeal has been perfected, but the Escrow Agent shall be under
      no
      duty whatsoever to institute or defend any such proceedings or (2) to deliver
      the Escrow Shares and any other property and documents held by the Escrow Agent
      hereunder to a state or Federal court having competent subject matter
      jurisdiction and located in the City of New York, Borough of Manhattan, in
      accordance with the applicable procedure therefor.

    

    3.16 The
      Company agrees to indemnify and hold harmless the Escrow Agent and its partners,
      employees, agents and representatives from any and all claims, liabilities,
      costs or expenses in any way arising from or relating to the duties or
      performance of the Escrow Agent hereunder or the transactions contemplated
      hereby or by the Securities Purchase Agreement other than any such claim,
      liability, cost or expense to the extent the same shall have been determined
      by
      final, unappealable judgment of a court of competent jurisdiction to have
      resulted from the gross negligence, fraud or willful misconduct of the Escrow
      Agent.

    

    [Signature
      Page Follows]

    

    [SIGNATURE
      PAGE TO SECURITIES ESCROW AGREEMENT]

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of
      this 28th day of August, 2008.

    

    
      	 	
              UNIVERSAL
                TRAVEL GROUP

            
	 	 
	 	
              By:

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            
	 	 
	 	
              ESCROW
                AGENT:

            
	 	 
	 	
              Sichenzia
                Ross Friedman Ference LLP

            
	 	 
	 	
              By:

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            
	 	 
	 	
              PRINCIPAL
                SHAREHOLDER:

            
	 	 
	 	
              By:

            	 
	 	
              Name:

            
	 	
              Title:

            
	 	 
	 	
              BUYER:

            
	 	 
	 	
              ACCESS
                AMERICA FUND, LP

            
	 	 
	 	
              By:     

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    
      	 	
              BUYER:

            
	 	 
	 	
              CHINAMERICA
                FUND LP

            
	 	 
	 	
              By:

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            
	 	 
	 	
              BUYER:

            
	 	 
	 	
              POPE
                INVESTMENT II LLC

            
	 	 
	 	
              By:

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            
	 	 
	 	
              BUYER:

            
	 	 
	 	
              HELLER
                CAPITAL INVESTMENTS, LLC

            
	 	 
	 	
              By:

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            
	 	 
	 	
              BUYER:

            
	 	 
	 	
              CGM
                as C/F RONALD I. HELLER IRA

            
	 	 
	 	
              By:

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	 	
              BUYER:

            
	 	 
	 	
              INVESTMENT
                HUNTER, LLC

            
	 	 
	 	
              By:

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            
	 	 
	 	
              BUYER:

            
	 	 
	 	
              MARED
                INVESTMENTS

            
	 	 
	 	
              By:

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            
	 	 
	 	
              BUYER:

            
	 	 
	 	
              HIGH
                CAPITAL FUNDING, LLC

            
	 	 
	 	
              By:

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    
      	 	
              BUYER:

            
	 	 
	 	
              MERRILL
                LYNCH, PIERCE, FENNER &

              SMITH,
                FBO BEAU L. JOHNSON

            
	 	 
	 	
              By:

            	 
	 	 	
              Name:

            

    

    
      
        
        

      

      
        12

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