Document:

PROMISSORY
        NOTE

       

      $500,000.00

      February
        28, 2008

      

      Asia
        Special Situation Acquisition Corp.

      PO
        Box
        309 GT

      Ugland
        House South Church Street 

      George
        Town E9 00000

      (Hereinafter
        referred to as "Borrower")

      

      Wachovia
        Bank, National Association

      301
        South
        College Street

      One
        Wachovia Center, NC 0600

      Charlotte,
        North Carolina 28288

      (Hereinafter
        referred to as the "Bank")

      

      Borrower
        promises to pay to the order of Bank, in lawful money of the United States
        of
        America, at its office indicated above or wherever else Bank may specify,
        the
        sum of Five Hundred Thousand and No/100 Dollars ($500,000.00), or such lesser
        sum as may be advanced and outstanding from time to time, with interest on
        the
        unpaid principal balance at the rate and on the terms provided in this
        Promissory Note (including all renewals, extensions or modifications hereof,
        this "Note").

      

      LOAN
        AGREEMENT.
        This
        Note is subject to the provisions of that certain Loan and Security Agreement
        (“Loan Agreement”) between Bank and Borrower of even date herewith, as modified
        from time to time. Capitalized terms used in this Note and not defined herein
        shall have the meaning given such terms in the Loan Agreement.

      

      LINE
        OF CREDIT.
        Pursuant
        to the terms and conditions of the Loan Agreement, Borrower may borrow, repay
        and reborrow, and, upon the request of Borrower, Bank shall advance and
        readvance under
        this Note
        from
        time to time until the maturity hereof (each an "Advance" and together the
        "Advances"), so long as the total principal balance outstanding under
        this Note
        at
        any
        one time does not exceed the principal amount stated on the face of
        this Note,
        subject
        to the limitations described in the Loan Agreement to which this Note is
        subject.
        Bank's
        obligation to make Advances under
        this Note
        shall terminate if
        Borrower is in Default (as defined below). As
        of the
        date of each proposed Advance, Borrower shall be deemed to represent that
        each
        representation made in the Loan Documents is true as of such date. All requests
        for Advances shall be made
        no later
        than 11:00 a.m. on the business day for which such Advance is requested to
        be
        made. Each Advance shall be in a minimum principal amount of $10,000 and
        integral multiples of $5,000 in excess thereof. 

      

      Borrower
        shall have the right to repay (without premium or penalty) a portion or all
        of
        the Advances outstanding
        upon one
        business day’s prior notice by remitting to Bank an amount equal to the Advance
        to be repaid plus all other expenses and fees and amounts due hereunder and
        under the other Loan Documents. Each repayment shall be in a minimum aggregate
        amount of $10,000 and integral multiples of $5,000 in excess
        thereof.

      

      If
        Borrower subscribes to Bank's cash management services and such services
        are
        applicable to this line of credit, the terms of such service shall control
        the
        manner in which funds are transferred between the applicable demand deposit
        account and the line of credit for credit or debit to the line of
        credit.

      

      USE
        OF PROCEEDS.
        Borrower
        shall use the proceeds of the loans evidenced by this Note for working capital
        and general corporate purposes, including, without limitation, the payment
        of
        operating expenses, premiums on directors and officers liability insurance,
        reimbursement of advances made to the Borrower by certain officers and
        directors, consulting and professional fees and disbursements incurred in
        connection with the location, negotiation and consummation of a business
        combination and other matters incidental to the foregoing and the operation
        of
        Borrower’s business. Borrower shall provide to Bank written evidence of any such
        expenses as Bank may request from time to time and Bank’s obligation to make
        Advances is subject to prior receipt and satisfactory review of such materials
        by Bank. 

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      SECURITY. 
        Borrower has caused certain pledgors to grant Bank a security interest in
        certain Collateral described in the Loan Agreement.

      

      INTEREST
        RATE.
        Interest
        shall accrue on the unpaid principal balance of this Note from the date
hereof at
        the
        Prime Rate (“Interest Rate") where
        “Prime Rate” means the rate of interest per annum publicly announced from time
        to time by Wachovia Bank, National Association as its prime rate in effect
        for
        dollars at its principal office in Charlotte, North Carolina; each change
        in the
        Prime Rate shall be effective from and including the date such change is
        publicly announced as being effective. The Prime Rate is a reference rate
        and
        does not necessarily represent the lowest or best rate actually charged to
        any
        customer. Bank may make commercial loans or other loans at rates of interest
        at,
        above or below the Prime Rate. Notwithstanding the foregoing, in no event
        shall
        the interest rate exceed 24.99% per annum.

      

      DEFAULT
        RATE.
        In
        addition to all other rights contained in this Note, if a Default
        (as defined herein) occurs and as long as a Default continues,
        all
        outstanding Obligations,
        other
        than Obligations under any swap agreements (as defined in 11 U.S.C. § 101, as in
        effect from time to time) between Borrower and Bank or its
        affiliates,
        shall
        bear interest at the Interest Rate plus 2% ("Default Rate"). The Default
        Rate
        shall also apply from acceleration
        until
        the Obligations or any judgment thereon is paid in full.

      

      INTEREST
        AND FEE(S) COMPUTATION (ACTUAL/360).
        Interest
        and fees, if any, shall be computed on the basis of a 360-day year for the
        actual number of days in the applicable period ("Actual/360 Computation").
        The
        Actual/360 Computation determines the annual effective interest yield by
        taking
        the stated (nominal) rate for a year's period and then dividing said rate
        by 360
        to determine the daily periodic rate to be applied for each day in the
        applicable period. Application of the Actual/360 Computation produces an
        annualized effective rate exceeding the nominal rate.

      

      REPAYMENT
        TERMS.
        This
        Note shall be due and
        payable
        in consecutive payments of accrued interest only, commencing on June 1, 2008,
        and continuing on the first day of each month thereafter until fully paid.
        In
        any event, all principal and accrued interest shall be due and payable on
        the
        earlier to occur of (i) any termination or liquidation of the assets of the
        Trust pursuant to the terms of the Trust Agreement or (ii) September 1, 2008.
        The first payment due hereunder shall include all accrued and unpaid interest
        outstanding as of June 1, 2008.

      

      APPLICATION
        OF PAYMENTS.
        Monies
        received by Bank from any source for application toward payment of the
        Obligations (as defined below) shall be applied to accrued interest and then
        to
        principal. If
        a
        Default occurs, monies
        may be
        applied to the Obligations in any manner or order deemed appropriate by
        Bank.

      

      If
        any
        payment received by Bank under this Note or other Loan Documents is rescinded,
        avoided or for any reason returned by Bank because of any adverse claim or
        threatened action, the returned payment shall remain payable as an obligation
        of
        all persons liable under this Note or other Loan Documents as though such
        payment had not been made.

      

      DEFINITIONS.
        Loan Documents.
        The term
        "Loan Documents", as used in this Note and the other Loan Documents, refers
        to
        all documents executed in connection with or related to the loan evidenced
        by
        this Note and any prior notes which evidence all or any portion of the loan
        evidenced by this Note, and may include, without limitation, security
        instruments, financing statements, and any renewals or modifications, whenever
        any of the foregoing are executed, but does not include swap agreements (as
        defined in 11 U.S.C. § 101, as in effect from time to time). Obligations.
        The term
        "Obligations", as used in this Note and the other Loan Documents, refers
        to any
        and all indebtedness and other obligations under this Note and all other
        obligations under any other Loan Document between Borrower and Bank,
        or its
        affiliates,
        whenever
        executed. Certain
        Other Terms.
        All
        terms that are used but not otherwise defined in any of the Loan Documents
        shall
        have the definitions provided in the Uniform Commercial Code.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

      ATTORNEYS'
        FEES AND OTHER COLLECTION COSTS, INDEMNITY. All
        reasonable legal fees and related expenses shall be payable by the Borrower
        and
        due on the date hereof. Borrower will pay all reasonable out-of-pocket expenses
        incurred by Bank in connection with the Loan Documents, including without
        limitation, expenses incurred in connection with the underwriting, negotiation,
        documentation, execution of the Loan Documents of up to $5,000. In addition,
        Borrower
        shall pay all of Bank's reasonable expenses actually
        incurred
        to enforce or collect any of the Obligations including, without limitation,
        reasonable arbitration, paralegals', attorneys' and experts' fees and expenses,
        whether incurred without the commencement of a suit, in any trial, arbitration,
        or administrative proceeding, or in any appellate or bankruptcy proceeding.
        Borrower
        shall indemnify Bank and each of its affiliates, officers, directors, employees,
        and agents (each, and “Indemnified Party”) from and against any and all damages,
        losses, claims, liabilities and related costs and expenses arising out of
        or in
        connection with the Loan Documents; provided, however, that no such indemnity
        shall be available to the Indemnified Party if such losses, liabilities,
        claims,
        damages, penalties or fine which gave rise to such indemnification claim
        were
        caused by or resulted from the gross negligence or willful misconduct of
        any
        Indemnified Party.

      

      USURY.
        If at
        any time the effective interest rate under this Note would, but for this
        paragraph, exceed the maximum lawful rate, the effective interest rate under
        this Note shall be the maximum lawful rate, and any amount received by Bank
        in
        excess of such rate shall be applied to principal and then to fees and expenses,
        or, if no such amounts are owing, returned to Borrower.

      

      GRACE
        PERIOD.
        Grace Period.
        The
        failure of timely payment of the Obligations shall not be a Default until
        5 days
        after such payment is due. 

      

      DEFAULT.
        If any
        of the following occurs and is not cured within the applicable Cure Period,
        a
        default ("Default") under this Note and the other Loan Documents shall exist:
        Nonpayment;
        Nonperformance.
        The
        failure (a) to timely pay the Obligations under this Note or any other Loan
        Documents or (b) to duly observe or perform in any material respect any other
        duties or covenants under the Loan Documents which failure shall continue
        unremedied for a period of thirty (30) days (if such failure can be remedied)
        after the earlier to occur of: (i) the date on which written notice of such
        failure is given to Borrower by Bank, or (ii) the date on which a senior
        officer
        of Borrower obtains actual knowledge thereof. False
        Warranty.
        A
        warranty or representation made or deemed made in the Loan Documents or
        furnished Bank in connection with the loan evidenced by this Note proves
        materially false, or if of a continuing nature, becomes materially false.
        Cross
        Default.
        At
        Bank's option, any default in payment or performance of any obligation under
        any
        other loans, material contracts or material agreements of Borrower, any
        Subsidiary or Affiliate of Borrower with Bank or its affiliates ("Affiliate"
        shall have the meaning as defined in 11 U.S.C. § 101, as in effect from time to
        time, except that the term "Borrower" shall be substituted for the term "Debtor"
        therein; "Subsidiary" shall mean any business in which Borrower holds, directly
        or indirectly, a controlling interest). Cessation;
        Bankruptcy.
        The
        termination of existence of, loss of good standing status by, appointment
        of a
        receiver for, assignment for the benefit of creditors of, or commencement
        of any
        bankruptcy or insolvency proceeding by or against Borrower or its
        Subsidiaries.
        Material Capital Structure or Business Alteration.
        Without
        prior written consent of Bank, (i) a material alteration in the kind or type
        of
        Borrower's business, or (ii) should any Borrower enter into any merger or
        consolidation. Material
        Adverse Effect. The
        occurrence of any event, change, circumstance or condition which has or could
        reasonably be expected to have a “Material Adverse Effect”. For the purpose
        hereof, “Material Adverse Effect” means, with respect to any event or
        circumstance, a material adverse effect on (i) the business, condition
        (financial or otherwise), operations, performance, assets or properties of
        Borrower, (ii) the validity or enforceability of the Loan Documents, (iii)
        the
        rights and remedies of Bank under any Loan Document, (iv) the ability of
        Borrower to perform its obligations under any Loan Document, or (v) the status,
        existence, perfection, priority or enforceability of Bank’s interest in any
        Collateral securing the Obligations.

      

      REMEDIES
        UPON DEFAULT.
        If a
        Default occurs and is continuing under this Note or any Loan Documents, Bank
        may
        at any time thereafter, take one or more of the following actions: 
Bank
        Lien.
        Foreclose its security interest or lien against Borrower's accounts and the
        Collateral without notice. Termination
        of Commitment.
        Terminate Bank’s commitment to make Advances without notice. Acceleration
        Upon Default.
        Accelerate the maturity of this Note and, at Bank’s option, any or all other
        Obligations; whereupon
        this Note and the accelerated Obligations shall be immediately due and payable;
        provided, however, if the Default is based upon a bankruptcy or insolvency
        proceeding commenced by or against Borrower or any guarantor or endorser
        of this
        Note, all Obligations shall automatically and immediately be due and payable
        and
        Bank’s Commitment to make Advances shall terminate. Cumulative.
        No
        failure
        on the part of Bank to exercise, and no delay in exercising, any right hereunder
        shall operate as a waiver thereof, nor shall any single or partial exercise
        of
        any right hereunder preclude any other or further exercise thereof or the
        exercise of any other right. The remedies herein provided are cumulative
        and not
        exclusive of any remedies provided by law.

      
        
           

        

        
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      WAIVER
        OF JURY TRIAL.
        TO THE
        EXTENT PERMITTED BY APPLICABLE LAW, BORROWER BY
        EXECUTION HEREOF AND BANK BY ACCEPTANCE HEREOF, KNOWINGLY, VOLUNTARILY AND
        INTENTIONALLY WAIVES ANY RIGHT EACH MAY HAVE TO A TRIAL BY JURY IN RESPECT
        OF
        ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS
        NOTE, THE LOAN DOCUMENTS OR ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN
        CONNECTION WITH THIS NOTE,
        OR
        ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN)
        OR ACTIONS OF ANY PARTY WITH RESPECT HERETO. THIS PROVISION IS A MATERIAL
        INDUCEMENT TO BANK TO ACCEPT THIS NOTE. EACH
        OF
        THE PARTIES AGREES THAT THE TERMS HEREOF SHALL SUPERSEDE AND REPLACE ANY
        PRIOR
        AGREEMENT RELATED TO ARBITRATION OF DISPUTES BETWEEN THE PARTIES CONTAINED
        IN
        ANY LOAN DOCUMENT OR ANY OTHER DOCUMENT OR AGREEMENT HERETOFORE EXECUTED
        IN
        CONNECTION WITH, RELATED TO OR BEING REPLACED, SUPPLEMENTED, EXTENDED OR
        MODIFIED BY, THIS NOTE.

      

      [Balance
        of page intentionally left blank - signature page
        follows]

      
        
           

        

        
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      IN
        WITNESS WHEREOF,
        Borrower, on the day and year first above written, has caused this Note to
        be
        executed.

      

      
        	 	
                ASIA
                  SPECIAL SITUATION ACQUISITION CORP.

              
	 	 	 
	 	 	 
	 	
                By:
                  

              	
                /s/
                  Gary T. Hirst

              
	 	
                Name:
                  

              	
                Gary
                  T. Hirst

              
	 	
                Title:
                  

              	
                PresidentUnassociated Document

    SECURITIES
      PURCHASE AGREEMENT

     

    This
      Securities Purchase Agreement (this “Agreement”)
      is
      dated as of February 25, 2008, by and among China Solar & Clean Energy
      Solutions, Inc., a Nevada corporation (collectively with its predecessors,
      the
“Company”),
      and
      the investors listed on the Schedule of Buyers attached hereto as Annex
      A
      and
      identified on the signature pages hereto (each, an “Investor”
      and
      collectively, the “Investors”).

     

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

     

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

     

    ARTICLE
      1.

    DEFINITIONS

     

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

     

    “2008
      Annual
      Report”
      means
      the
      Annual Report of the Company for the fiscal year ending December 31, 2008,
      as
      filed with the Commission on Form 10-K (or such other form appropriate for
      such
      purpose as promulgated by the Commission).

     

    “2008
      Guaranteed
      ATNI” has
      the meaning set forth in Section 4.11.

     

    “2008
      Make Good Shares” has
      the
      meaning set forth in Section 4.11.

     

    “2009
      Annual
      Report”
      means
      the
      Annual Report of the Company for the fiscal year ending December 31, 2009,
      as
      filed with the Commission on Form 10-K (or such other form appropriate for
      such
      purpose as promulgated by the Commission).

     

    “2009
      Guaranteed
      ATNI” has
      the meaning set forth in Section 4.11.

     

    “2009
      Make Good Shares” has
      the
      meaning set forth in Section 4.11.

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

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

     

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

     

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

     

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

     

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

     

    “Commission”
      means
      the Securities and Exchange Commission.

     

    “Common
      Stock”
      means
      the common stock of the Company, par value $0.001 per share, and any securities
      into which such common stock may hereafter be reclassified.

     

    “Common
      Stock Equivalents”
      means
      any securities of the Company or any Subsidiary which entitle the holder thereof
      to acquire Common Stock at any time, including without limitation, any debt,
      preferred stock, rights, options, warrants or other instrument that is at any
      time convertible into or exchangeable for, or otherwise entitles the holder
      thereof to receive, Common Stock or other securities that entitle the holder
      to
      receive, directly or indirectly, Common Stock.

     

    “Company
      Counsel”
      means
      Guzov Ofsink, LLC.

     

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

     

    “Disclosure
      Materials”
      has the
      meaning set forth in Section 3.1(h).

     

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

     

    "Escrow
      Agreement"
      means
      the Escrow Agreement, dated as of the date hereof, between the Company and
      the
      escrow agent (the “Escrow
      Agent”)
      set
      forth therein, in the form of Exhibit
      A
      hereto.

     

    “Evaluation
      Date”
      has the
      meaning set forth in Section 3.1(s).

     

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

     

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

     

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

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

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

     

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

     

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

     

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

     

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

     

    “Losses”
      has the
      meaning set forth in Section 4.7.

     

    “Make
      Good Escrow Agreement” means
      the
      Make Good Escrow Agreement, dated as of the date hereof, among the Company,
      the
      escrow agent identified therein (the “Make
      Good Escrow Agent”)
      and the
      Investors, in the form of Exhibit
      C
      hereto.

     

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

     

    “Money
      Laundering Laws”
has
      the
      meaning set forth in Section 3.1(ee).

     

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

     

    “OFAC”
      has the
      meaning set forth in Section 3.1(dd).

     

    “Outside
      Date”
      means
      the thirtieth (30th)
      calendar day following the date of this Agreement; provided,
      that if
      such day should fall on a day that is not a Business Day, the Outside Date
      shall
      be deemed the next day that is a Business Day.

     

    "Per
      Share Purchase Price"
      equals
      $2.40.

     

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

     

    “PRC”
means
      the People’s Republic of China, not including Taiwan, Hong Kong and
      Macau.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

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

     

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

     

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

     

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

     

    “SEC
      Reports”
      has the
      meaning set forth in Section 3.1(h).

     

    “Securities”
      has
      the
      meaning set forth in Section 4.1(c).

     

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

     

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

     

    “Shares”
      means
      the shares of Common Stock issued or issuable to the Investors pursuant to
      this
      Agreement.

     

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

     

    “Subsidiary”
      means,
      as to the Company, any “subsidiary” as defined in Rule 1-02(x) of the Regulation
      S-X promulgated by the Commission under the Exchange Act.

     

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

     

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

     

    
      
        
        

      

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

     

    ARTICLE
      2.

    PURCHASE
      AND SALE

     

    2.1. Closing.
      Subject
      to the terms and conditions set forth in this Agreement, at the Closing the
      Company shall issue and sell to each Investor, and each Investor shall,
      severally and not jointly, purchase from the Company, the Shares representing
      such Investor’s Investment Amount. The Closing shall take place at the offices
      of Winston & Strawn LLP, 200 Park Avenue, New York, NY 10166 on the Closing
      Date or at such other location or time as the parties may agree.

     

    2.2. Closing
      Deliveries. (a)
      At the
      Closing, the Company shall deliver or cause to be delivered to each Investor
      the
      following (the “Company
      Deliverables”):

     

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

     

    (ii) the
      legal
      opinion of Company Counsel, in agreed form, addressed to the
      Investors.

     

    (b) By
      the
      Closing, each Investor shall deliver or cause to be delivered the agreements
      specified in Section 5.2(d), each duly signed by such Investor (collectively,
      the “Investor
      Deliverables”).

     

    (c) Within
      one Business Day following the date of this Agreement, each Investor shall
      cause
      to be delivered to the Escrow Agent, its Investment Amount, in United States
      dollars and in immediately available funds, by wire transfer to an account
      designated in writing by the Company for such purpose in accordance with the
      terms of the Escrow Agreement.

     

    ARTICLE
      3.

    REPRESENTATIONS
      AND WARRANTIES

     

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

     

    (a) Subsidiaries.
      The
      Company has no direct or indirect Subsidiaries other than as specified in the
      SEC Reports. Except as disclosed in Schedule
      3.1(a),
      the
      Company owns, directly or indirectly, all of the capital stock of each
      Subsidiary free and clear of any and all Liens, and all the issued and
      outstanding shares of capital stock of each Subsidiary are validly issued and
      are fully paid, non-assessable and free of preemptive and similar
      rights.

     

    
      
        
        

      

      
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    (b) Organization
      and Qualification.
      The
      Company and each Subsidiary are duly incorporated or otherwise organized,
      validly existing and in good standing under the laws of the jurisdiction of
      its
      incorporation or organization (as applicable), with the requisite power and
      authority to own and use its properties and assets and to carry on its business
      as currently conducted. Neither the Company nor any Subsidiary is in violation
      of any of the provisions of its respective certificate or articles of
      incorporation, bylaws or other organizational or charter documents. The Company
      and each Subsidiary are duly qualified to conduct its respective businesses
      and
      are in good standing as a foreign corporation or other entity in each
      jurisdiction in which the nature of the business conducted or property owned
      by
      it makes such qualification necessary, except where the failure to be so
      qualified or in good standing, as the case may be, could not, individually
      or in
      the aggregate, have or reasonably be expected to result in a Material Adverse
      Effect.

     

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

     

    (d) No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company
      and the consummation by the Company of the transactions contemplated thereby
      do
      not and will not (i) conflict with or violate any provision of the Company’s or
      any Subsidiary’s certificate or articles of incorporation, bylaws or other
      organizational or charter documents, or (ii) except as set forth in Schedule
      3.1(d)(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 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), or by which any property or asset of the
      Company or a Subsidiary is bound or affected; except in the case of each of
      clauses (ii) and (iii), such as could not, individually or in the aggregate,
      have or reasonably be expected to result in a Material Adverse
      Effect.

     

    (e) Filings,
      Consents and Approvals.
      Except
      as set forth in Schedule
      3.1(e),
      neither
      the Company nor any Subsidiary is required to obtain any consent, waiver,
      authorization or order of, give any notice to, or make any filing or
      registration with, any United States or PRC court or other federal, state,
      local
      or other governmental authority or other Person in connection with the
      execution, delivery and performance by the Company of the Transaction Documents,
      other than (i) the filing with the Commission of one or more Registration
      Statements in accordance with the requirements of the Registration Rights
      Agreement, (ii) filings required by state securities laws, (iii) the filing
      of a
      Notice of Sale of Securities on Form D with the Commission under Regulation
      D of
      the Securities Act, (iv) the filings required in accordance with Section 4.5
      hereof and (v) those that have been made or obtained prior to the date of this
      Agreement.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    (f) Issuance
      of the Shares.
      The
      Shares have been duly authorized and, when issued and paid for in accordance
      with the Transaction Documents, will be duly and validly issued, fully paid
      and
      nonassessable, free and clear of all Liens. The Company has reserved from its
      duly authorized capital stock the shares of Common Stock issuable pursuant
      to
      this Agreement in order to issue the Shares, the 2008 Make Good Shares and
      the
      2009 Make Good Shares.

     

    (g) Capitalization.
      The
      number of shares and type of all authorized, issued and outstanding capital
      stock of the Company, and all shares of Common Stock reserved for issuance
      under
      the Company’s various option and incentive plans, is specified in Schedule
      3.1(g).
      Except
      as specified in Schedule
      3.1(g),
      no
      securities of the Company are entitled to preemptive or similar rights, and
      no
      Person has any right of first refusal, preemptive right, right of participation,
      or any similar right to participate in the transactions contemplated by the
      Transaction Documents. Except as specified in Schedule
      3.1(g),
      there
      are no outstanding options, warrants, scrip rights to subscribe to, calls or
      commitments of any character whatsoever relating to, or securities, rights
      or
      obligations convertible into or exchangeable for, or giving any Person any
      right
      to subscribe for or acquire, any shares of Common Stock, or contracts,
      commitments, understandings or arrangements by which the Company or any
      Subsidiary is or may become bound to issue additional shares of Common Stock,
      or
      securities or rights convertible or exchangeable into shares of Common Stock.
      The issue and sale of the Shares will not, immediately or with the passage
      of
      time, obligate the Company to issue shares of Common Stock or other securities
      to any Person (other than the Investors) and will not result in a right of
      any
      holder of Company securities to adjust the exercise, conversion, exchange or
      reset price under such securities. Except for the private placement disclosed
      in
      the Current Report on Form 8-K filed by the Company on June 19, 2007 (the
      "June
      2007 Financing"),
      or as
      set forth in Schedule
      3.1(g),
      during
      the twelve months preceding the date hereof neither the Company nor any
      Subsidiary has issued any capital stock in a private placement transaction
      in
      the PRC, including, without limitation, in a transaction commonly referred
      to in
      the PRC as a “1 1⁄2 transaction.”

     

    (h) SEC
      Reports; Financial Statements.
      Except
      as set forth in Schedule
      3.1(h),
      the
      Company has filed all reports required to be filed by it under the Securities
      Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
      for the twelve months preceding the date hereof (or such shorter period as
      the
      Company was required by law to file such reports) (the foregoing materials
      being
      collectively referred to herein as the “SEC
      Reports”
      and,
      together with the Schedules to this Agreement (if any), the “Disclosure
      Materials”)
      on a
      timely basis or has timely filed a valid extension of such time of filing and
      has filed any such SEC Reports prior to the expiration of any such extension.
      As
      of their respective dates, the SEC Reports complied in all material respects
      with the requirements of the Securities Act and the Exchange Act and the rules
      and regulations of the Commission promulgated thereunder, and none of the SEC
      Reports, when filed, 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 light of the circumstances under which
      they were made, not misleading. The financial statements of the Company included
      in the SEC Reports comply in all material respects with applicable accounting
      requirements and the rules and regulations of the Commission with respect
      thereto as in effect at the time of filing. Such financial statements have
      been
      prepared in accordance with GAAP applied on a consistent basis during the
      periods involved, except as may be otherwise specified in such financial
      statements or the notes thereto, and fairly present in all material respects
      the
      financial position of the Company and its consolidated Subsidiaries as of and
      for the dates thereof and the results of operations and cash flows for the
      periods then ended, subject, in the case of unaudited statements, to normal,
      immaterial, year-end audit adjustments.

     

    
      
        
        

      

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

     

    (j) Material
      Changes.
      Since
      the date of the latest audited financial statements included within the SEC
      Reports, except as specifically disclosed in the SEC Reports, (i) there has
      been
      no event, occurrence or development that has had or that could reasonably be
      expected to result in a Material Adverse Effect, (ii) neither the Company nor
      any Subsidiary has incurred any liabilities (direct, indirect, contingent,
      or
      otherwise) other than (A) trade payables, accrued expenses and other liabilities
      incurred in the ordinary course of business consistent with past practice and
      (B) liabilities not required to be reflected in the Company’s financial
      statements pursuant to GAAP or required to be disclosed in filings made with
      the
      Commission, (iii) the Company has not altered its method of accounting or the
      identity of its auditors, (iv) the Company has not declared or made any dividend
      or distribution of cash or other property to its stockholders or purchased,
      redeemed or made any agreements to purchase or redeem any shares of its capital
      stock, and (v) the Company has not issued any equity securities to any Company
      or Subsidiary officer, director or Affiliate, except pursuant to existing
      Company stock option plans. The Company does not have pending before the
      Commission any request for confidential treatment of information.

     

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

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

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

     

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

     

    (n) Regulatory
      Permits.
      The
      Company and the Subsidiaries possess all certificates, authorizations and
      permits issued by the appropriate United States and PRC federal, state, local
      or
      foreign regulatory authorities necessary to conduct their respective businesses
      as described in the SEC Reports, except where the failure to possess such
      permits could not, individually or in the aggregate, have or reasonably be
      expected to result in a Material Adverse Effect, and neither the Company nor
      any
      Subsidiary has received any notice of proceedings relating to the revocation
      or
      modification of any such permits.

     

    (o) Title
      to Assets.
      The
      Company and the Subsidiaries have valid land use rights for all real property
      that is material to their respective businesses and good and marketable title
      in
      all personal property owned by them that is material to their respective
      businesses, in each case free and clear of all Liens, except for Liens as do
      not
      materially affect the value of such property and do not materially interfere
      with the use made and proposed to be made of such property by the Company and
      the Subsidiaries. Any real property and facilities held under lease by the
      Company and the Subsidiaries are held by them under valid, subsisting and
      enforceable leases of which the Company and the Subsidiaries are in compliance,
      except as could not, individually or in the aggregate, have or reasonably be
      expected to result in a Material Adverse Effect.

     

    (p) Patents
      and Trademarks.
      Schedule
      3.1(p)
      sets forth all of the patents, patent applications, trademarks, trademark
      applications, service marks, trade names, copyrights, licenses and other similar
      rights that the Company and its Subsidiaries owns or has the rights to use
      (collectively, the “Intellectual
      Property Rights”).
      The Intellectual Property Rights constitute all of the patents, patent
      applications, trademarks, trademark applications, service marks, trade names,
      copyrights, licenses and other similar rights that are necessary for use by
      the
      Company and its Subsidiaries in connection with their respective businesses
      as
      described in the SEC Reports. Neither the Company nor any of its Subsidiaries
      has received a written or oral notice that the Intellectual Property Rights
      used
      by any of them violates or infringes upon the rights of any Person. Except
      as
      set forth in Schedule
      3.1(p),
      all such Intellectual Property Rights are enforceable and to the knowledge
      of
      the Company and its Subsidiaries, there is no existing infringement by another
      Person of any of the Intellectual Property Rights. To the knowledge of the
      Company and its Subsidiaries, no former or current employee, no former or
      current consultant, and no third-party joint developer of the Company or its
      Subsidiaries has any Intellectual Property Rights made, developed, conceived,
      created or written by the aforesaid employee, consultant or third-party joint
      developer during the period of his or her retention by, or joint venture with,
      such Company or Subsidiary which can be asserted against any of the Company
      or
      any such Subsidiary. The
      Intellectual Property Rights and the owner thereof or agreement through which
      they are licensed to any of the
      Company or its Subsidiaries
      are set
      forth on Schedule
      3.1(p).
      By the
      Closing, the Company shall have entered into agreements by which it is granted
      irrevocable, exclusive, royalty-free licenses on all Intellectual Property
      Rights that are registered to or owned by any Person other than the Company
      or
      its predecessor. Such agreements together with the agreements referenced in
      Schedule
      3.1(p)
      are
      collectively the “Intellectual
      Property Rights Licensing Agreements.”
The
      Company
      and its Subsidiaries
      will
      take such action as may be required, including making
      and maintaining the filings set forth in Schedule
      3.1(p)
      and
      shall cause any such transfers of Intellectual Property Rights to the
      Company to be granted as is required in order for the Company to become the
      registered owner (in its current name) of all such Intellectual Property Rights
      (including, without limitation, the entering into of any Intellectual Property
      Rights Licensing Agreements as may be necessary and the filing and maintaining
      of any information with the relevant PRC authority which relate to the change
      of
      name for those Intellectual Property Rights currently in the name of an entity
      other than the Company).

     

    
      
        
        

      

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

     

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

     

    
      
        
        

      

      
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    (s) Internal
      Accounting Controls.
      The
      Company and the Subsidiaries maintain a system of internal accounting controls
      sufficient to provide reasonable assurance that (i) transactions are executed
      in
      accordance with management’s general or specific authorizations, (ii)
      transactions are recorded as necessary to permit preparation of financial
      statements in conformity with GAAP and to maintain asset accountability, (iii)
      access to assets is permitted only in accordance with management’s general or
      specific authorization, and (iv) the recorded accountability for assets is
      compared with the existing assets at reasonable intervals and appropriate action
      is taken with respect to any differences. The Company has established disclosure
      controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
      15d-15(e)) for the Company and designed such disclosure controls and procedures
      to ensure that material information relating to the Company, including its
      Subsidiaries, is made known to the certifying officers by others within those
      entities, particularly during the period in which the Company’s Form 10-KSB or
      10-QSB, as the case may be, is being prepared. The Company’s certifying officers
      have evaluated the effectiveness of the Company’s controls and procedures in
      accordance with Item 307 of Regulation S-B under the Exchange Act for the
      Company’s most recently ended fiscal quarter or fiscal year-end (such date, the
“Evaluation
      Date”).
      The
      Company presented in its most recently filed Form 10-KSB or Form 10-QSB the
      conclusions of the certifying officers about the effectiveness of the disclosure
      controls and procedures based on their evaluations as of the Evaluation Date.
      Since the Evaluation Date, there have been no significant changes in the
      Company’s internal controls (as such term is defined in Item 308(c) of
      Regulation S-B under the Exchange Act) or, to the Company’s knowledge, in other
      factors that could significantly affect the Company’s internal
      controls.

     

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

     

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

     

    
      
        
        

      

      
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    (v) Certain
      Registration Matters.
      Assuming the accuracy of the Investors’ representations and warranties set forth
      in Section 3.2(b)-(e), no registration under the Securities Act is required
      for
      the offer and sale of the Shares by the Company to the Investors under the
      Transaction Documents. The Company is eligible to register its Common Stock
      for
      resale by the Investors under Form S-1 promulgated under the Securities Act.
      Except as set forth on Schedule
      3.1(v),
      the
      Company has not granted or agreed to grant to any Person any rights (including
      “piggy-back” registration rights) to have any securities of the Company
      registered with the Commission or any other governmental authority that have
      not
      been satisfied.

     

    (w) Listing
      and Maintenance Requirements.
      Except
      as specified in the SEC Reports, the Company has not, in the two years preceding
      the date hereof, received notice from any Trading Market to the effect that
      the
      Company is not in compliance with the listing or maintenance requirements
      thereof. The Company is, and has no reason to believe that it will not in the
      foreseeable future continue to be, in compliance with the listing and
      maintenance requirements for continued listing of the Common Stock on the
      Trading Market on which the Common Stock is currently listed or quoted. The
      issuance and sale of the Shares under the Transaction Documents does not
      contravene the rules and regulations of the Trading Market on which the Common
      Stock is currently listed or quoted, and no approval of the shareholders of
      the
      Company thereunder is required for the Company to issue and deliver to the
      Investors the Shares contemplated by Transaction Documents.

     

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

     

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

     

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

     

    (aa) Consultation
      with Auditors.
      The
      Company has consulted its independent auditors concerning the accounting
      treatment of the transactions contemplated by the Transaction Documents, and
      in
      connection therewith has furnished such auditors complete copies of the
      Transaction Documents.

     

    
      
        
        

      

      
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    (bb) Foreign
      Corrupt Practices Act.
      Neither
      the Company nor any Subsidiary, nor to the knowledge of the Company, any agent
      or other person acting on behalf of any of the Company or any Subsidiary, has,
      directly or indirectly, (i) used any funds, or will use any proceeds from the
      sale of the Shares, for unlawful contributions, gifts, entertainment or other
      unlawful expenses related to foreign or domestic political activity, (ii) made
      any unlawful payment to foreign or domestic government officials or employees
      or
      to any foreign or domestic political parties or campaigns from corporate funds,
      (iii) failed to disclose fully any contribution made by the Company or any
      Subsidiary (or made by any Person acting on their behalf of which the Company
      is
      aware) which is in violation of law, or (iv) has violated in any material
      respect any provision of the Foreign Corrupt Practices Act of 1977, as amended,
      and the rules and regulations thereunder.

     

    (cc) PFIC.
      Neither
      the Company nor any Subsidiary is or intends to become a “passive foreign
      investment company” within the meaning of Section 1297 of the U.S. Internal
      Revenue Code of 1986, as amended.

     

    (dd) OFAC.
      Neither
      the Company nor any Subsidiary nor, to the knowledge of the Company, any
      director, officer, agent, employee, Affiliate or Person acting on behalf of
      the
      Company or any Subsidiary is currently subject to any U.S. sanctions
      administered by the Office of Foreign Assets Control of the U.S. Treasury
      Department (“OFAC”);
      and
      the Company will not directly or indirectly use the proceeds of the sale of
      the
      Shares, or lend, contribute or otherwise make available such proceeds to any
      Subsidiary, joint venture partner or other Person or entity, towards any sales
      or operations in Cuba, Iran, Syria, Sudan, Myanmar or any other country
      sanctioned by OFAC or for the purpose of financing the activities of any Person
      currently subject to any U.S. sanctions administered by OFAC.

     

    (ee) Money
      Laundering Laws.
      The
      operations of each of the Company and any Subsidiary are and have been conducted
      at all times in compliance with the money laundering statutes of applicable
      jurisdictions, the rules and regulations thereunder and any related or similar
      rules, regulations or guidelines, issued, administered or enforced by any
      applicable governmental agency (collectively, the “Money
      Laundering Laws”)
      and no
      action, suit or proceeding by or before any court or governmental agency,
      authority or body or any arbitrator involving the Company and/or any Subsidiary
      with respect to the Money Laundering Laws is pending or, to the best knowledge
      of the Company, threatened.

     

    (ff) Additional
      PRC Representations and Warranties.
      

     

    (i) All
      material consents, approvals, authorizations or licenses requisite under PRC
      law
      for the due and proper establishment and operation of the Company
      and the Subsidiaries
      have
      been duly obtained from the relevant PRC governmental authorities and are in
      full force and effect.

     

    (ii) All
      filings and registrations with the PRC governmental authorities required in
      respect of the Company and the Subsidiaries and their operations including,
      without limitation, the registration with the Ministry of Commerce, the State
      Administration of Industry and Commerce, the State Administration for Foreign
      Exchange, tax bureau and customs authorities have been duly completed in
      accordance with the relevant PRC rules and regulations, except where, the
      failure to complete such filings and registrations does not, and would not,
      individually or in the aggregate, have a Material Adverse Effect.

     

    
      
        
        

      

      
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    (iii) The
      Company and the Subsidiaries have complied with all relevant PRC laws and
      regulations regarding the contribution and payment of its registered share
      capital, the payment schedule of which has been approved by the relevant PRC
      governmental authorities. There are no outstanding rights of, or commitments
      made by the Company or any Subsidiary to sell any of their respective equity
      interests.

     

    (iv) Neither
      the Company nor any Subsidiary is in receipt of any letter or notice from any
      relevant PRC governmental authority notifying it of the revocation, or otherwise
      questioning the validity, of any licenses or qualifications issued to it or
      any
      subsidy granted to it by any PRC governmental authority for non-compliance
      with
      the terms thereof or with applicable PRC laws, or the need for compliance or
      remedial actions in respect of the activities carried out by the Company or
      such
      Subsidiary, except such revocation as does not, and would not, individually
      or
      in the aggregate, have a Material Adverse Effect.

     

    (v) The
      Company and the Subsidiaries have conducted their respective business activities
      within their permitted scope of business or have otherwise operated their
      respective businesses in compliance with all relevant legal requirements and
      with all requisite licenses and approvals granted by competent PRC governmental
      authorities other than such non-compliance that do not, and would not,
      individually or in the aggregate, have a Material Adverse Effect. As to
      licenses, approvals and government grants and concessions requisite or material
      for the conduct of any part of the Company or any Subsidiaries’ business which
      is subject to periodic renewal, neither the Company nor such Subsidiary has
      any
      knowledge of any grounds on which such requisite renewals will not be granted by
      the relevant PRC governmental authorities.

     

    (vi) With
      regard to employment and staff or labor, the Company and the Subsidiaries have
      complied with all applicable PRC laws and regulations in all material respects,
      including without limitation, laws and regulations pertaining to welfare funds,
      social benefits, medical benefits, insurance, retirement benefits, pensions
      or
      the like, other than such non-compliance that do not, and would not,
      individually or in the aggregate, have a Material Adverse Effect.

     

    (gg) Independent
      Board.
      The
      Company has a Board of Directors consisting of at least five members, the
      majority of which are independent directors, as defined by the rules of the
      Nasdaq Stock Market.

     

    (hh) Compliance
      with June 2007 Financing.
      Except
      as set forth on Schedule
      3.1(hh),
      the
      Company is in compliance with all covenants and provisions set forth in the
      documents governing the June 2007 Financing.

     

    (ii) Disclosure.
      The
      Company confirms that neither it nor any Person acting on its behalf has
      provided any Investor or its respective agents or counsel with any information
      that the Company believes constitutes material, non-public information
      concerning the Company, the Subsidiaries or their respective businesses, except
      insofar as the existence and terms of the proposed transactions contemplated
      hereunder may constitute such information. The Company understands and confirms
      that the Investors will rely on the foregoing representations and covenants
      in
      effecting transactions in securities of the Company. All disclosure provided
      to
      the Investors regarding the Company, the Subsidiaries or their respective
      businesses and the transactions contemplated hereby, furnished by or on behalf
      of the Company (including the Company’s representations and warranties set forth
      in this Agreement and any business plan or investor presentation provided by
      the
      Company or any Person acting on the Company's behalf) are 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 light
      of the circumstances under which they were made, not misleading.

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

    (f) Certain
      Trading Activities.
      Such
      Investor has not directly or indirectly, nor has any Person acting on behalf
      of
      or pursuant to any understanding with such Investor, engaged in any transactions
      in the securities of the Company (including, without limitations, any Short
      Sales involving the Company’s securities) since the earlier to occur of (1) the
      time that such Investor was first contacted by the Company or Roth Capital
      Partners, LLC regarding an investment in the Company and (2) the 30th
      day
      prior to the date of this Agreement. Such Investor covenants that neither it
      nor
      any Person acting on its behalf or pursuant to any understanding with it will
      engage in any transactions in the securities of the Company (including Short
      Sales) prior to the time that the transactions contemplated by this Agreement
      are publicly disclosed.

     

    (g) Independent
      Investment Decision.
      Such
      Investor has independently evaluated the merits of its decision to purchase
      Shares pursuant to the Transaction Documents, and such Investor confirms that
      it
      has not relied on the advice of any other Investor’s business and/or legal
      counsel in making such decision. Such Investor has not relied on the business
      or
      legal advice of Roth Capital Partners, LLC or any of its agents, counsel or
      Affiliates in making its investment decision hereunder, and confirms that none
      of such Persons has made any representations or warranties to such Investor
      in
      connection with the transactions contemplated by the Transaction
      Documents.

     

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

     

    ARTICLE
      4.

    OTHER
      AGREEMENTS OF THE PARTIES

     

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

     

    
      
        
        

      

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

     

    THESE
      SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
      OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
      REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
      EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
      AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
      TO
      SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
      COMPANY. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
      ACCOUNT SECURED BY SUCH SECURITIES.

     

    The
      Company acknowledges and agrees that an Investor may from time to time pledge,
      and/or grant a security interest in some or all of the Securities pursuant
      to a
      bona fide margin agreement in connection with a bona fide margin account and,
      if
      required under the terms of such agreement or account, such Investor may
      transfer pledged or secured Shares to the pledgees or secured parties. Such
      a
      pledge or transfer would not be subject to approval or consent of the Company
      and no legal opinion of legal counsel to the pledgee, secured party or pledgor
      shall be required in connection with the pledge, but such legal opinion may
      be
      required in connection with a subsequent transfer following default by the
      Investor transferee of the pledge. No notice shall be required of such pledge.
      At the appropriate Investor’s expense, the Company will execute and deliver such
      reasonable documentation as a pledgee or secured party of Securities may
      reasonably request in connection with a pledge or transfer thereof including
      the
      preparation and filing of any required prospectus supplement under Rule
      424(b)(3) of the Securities Act or other applicable provision of the Securities
      Act to appropriately amend the list of selling stockholders thereunder. Except
      as otherwise provided in Section 4.1(c), any Securities subject to a pledge
      or
      security interest as contemplated by this Section 4.1(b) shall continue to
      bear
      the legend set forth in this Section 4.1(b) and be subject to the restrictions
      on transfer set forth in Section 4.1(a).

     

    
      
        
        

      

      
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    (c) Certificates
      evidencing Shares and Make Good Shares, if ever Make Good Shares are due to
      be
      delivered pursuant to the Transaction Documents (collectively with the Shares,
      the “Securities”),
      shall
      not contain any legend (including the legend set forth in Section 4.1(b)):
      (i)
      following a sale or transfer of such Securities pursuant to an effective
      registration statement, or (ii) following a sale or transfer of such Securities
      pursuant to Rule 144 (assuming the transferee is not an Affiliate of the
      Company), or (iii) while such Securities are eligible for sale by the selling
      Investor without volume restrictions under Rule 144. The Company agrees that
      following the Effective Date or such other time as legends are no longer
      required to be set forth on certificates representing Securities under this
      Section 4.1(c), it will, no longer than three Trading Days following the
      delivery by an Investor to the Company or the Transfer Agent of a certificate
      representing such Securities containing a restrictive legend, deliver or cause
      to be delivered to such investor Securities which are free of all restrictive
      and other legends. If the Company is then eligible, certificates for Securities
      subject to legend removal hereunder shall be transmitted by the Transfer Agent
      to an Investor by crediting the prime brokerage account of such Investor with
      the Depository Trust Company System as directed by such Investor. If an Investor
      shall make a sale or transfer of Securities either (x) pursuant to Rule 144
      or
      (y) pursuant to a registration statement and in each case shall have delivered
      to the Company or the Company’s transfer agent the certificate representing the
      applicable Securities containing a restrictive legend which are the subject
      of
      such sale or transfer and a representation letter in customary form (the
      date
      of such sale or transfer and Securities delivery being the “Share
      Delivery Date”)
      and (1)
      the Company shall fail to deliver or cause to be delivered to such Investor
      a
      certificate representing such Securities that is free from all restrictive
      or
      other legends by the third Trading Day following the Share Delivery Date and
      (2)
      following such third Trading Day after the Share Delivery Date and prior to
      the
      time such Securities are received free from restrictive legends, the Investor,
      or any third party on behalf of such Investor, purchases (in an open market
      transaction or otherwise) shares of Common Stock to deliver in satisfaction
      of a
      sale by the Investor of such Securities (a "Buy-In"),
      then,
      in addition to any other rights available to the Investor under the Transaction
      Documents and applicable law, the Company shall pay in cash to the Investor
      (for
      costs incurred either directly by such Investor or on behalf of a third party)
      the amount by which the total purchase price paid for Common Stock as a result
      of the Buy-In (including brokerage commissions, if any) exceed the proceeds
      received by such Investor as a result of the sale to which such Buy-In relates.
      The Investor shall provide the Company written notice indicating the amounts
      payable to the Investor in respect of the Buy-In. The Company may not make
      any
      notation on its records or give instructions to any transfer agent of the
      Company that enlarge the restrictions on transfer set forth in this
      Section.

     

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

     

    
      
        
        

      

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

     

    4.4. Subsequent
      Registrations.
      Other
      than pursuant to the Registration Rights Agreement and as set forth on Schedule
      4.4, prior to the first to occur of (a) the Effective Date of a Registration
      Statement resulting in all Registrable Securities (as defined in the
      Registration Rights Agreement) being registered for resale pursuant to one
      or
      more effective Registration Statements or (b) such time as all Registrable
      Securities may be sold by the Investors without volume restrictions pursuant
      to
      Rule 144, the Company may not file any registration statement (other than on
      Form S-8) with the Commission with respect to any securities of the
      Company.

     

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

     

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

     

    4.7. Indemnification
      of Investors.
      In
      addition to the indemnity provided in the Registration Rights Agreement, the
      Company will indemnify and hold the Investors and their directors, officers,
      shareholders, partners, employees and agents (each, an “Investor
      Party”)
      harmless from any and all losses, liabilities, obligations, claims,
      contingencies, damages, costs and expenses, including all judgments, amounts
      paid in settlements, court costs and reasonable attorneys’ fees and costs of
      investigation (collectively, “Losses”)
      that
      any such Investor Party may suffer or incur as a result of or relating to any
      misrepresentation, breach or inaccuracy of any representation, warranty,
      covenant or agreement made by the Company in any Transaction Document. In
      addition to the indemnity contained herein, the Company will reimburse each
      Investor Party for its reasonable legal and other expenses (including the cost
      of any investigation, preparation and travel in connection therewith) incurred
      in connection therewith, as such expenses are incurred. Except as otherwise
      set
      forth herein, the mechanics and procedures with respect to the rights and
      obligations under this Section 4.7 shall be the same as those set forth in
      Section 5 of the Registration Rights Agreement.

     

    
      
        
        

      

      
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    4.8. Non-Public
      Information.
      The
      Company covenants and agrees that neither it nor any other Person acting on
      its
      behalf will provide any Investor or its agents or counsel with any information
      that the Company believes constitutes material non-public information, unless
      prior thereto such Investor shall have executed a written agreement regarding
      the confidentiality and use of such information. The Company understands and
      confirms that each Investor shall be relying on the foregoing representations
      in
      effecting transactions in securities of the Company.

     

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

     

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

     

    4.11. Make
      Good Shares. 

     

    (a) The
      Company agrees that in the event that the After Tax Net Income (as defined
      below) reported in the 2008 Annual Report is less than $4,800,000 (the
“2008
      Guaranteed ATNI”),
      the
      Company will transfer to each Investor on a pro-rata basis (determined by
      dividing each Investor’s Investment Amount by the aggregate of all Investment
      Amounts delivered to the Company by the Investors hereunder) for no
      consideration other than their respective Investment Amounts paid to the Company
      at Closing, the 2008 Make Good Shares. The “2008
      Make Good Shares”
      means
      1,000,000 shares of Common Stock (as equitably adjusted for any stock splits,
      stock combinations, stock dividends or similar transactions) required to be
      deposited with the Make Good Escrow Agent pursuant to the Make Good Escrow
      Agreement. 

     

    In
      the
      event that the After Tax Net Income reported in the 2009 Annual Report is less
      than $8,000,000 (the “2009
      Guaranteed ATNI”),
      the
      Company will transfer to each Investor on a pro-rata basis (determined by
      dividing each Investor’s Investment Amount by the aggregate of all Investment
      Amounts delivered to the Company by the Investors hereunder) for no
      consideration other than their respective Investment Amounts paid to the Company
      at Closing, the 2009 Make Good Shares. The “2009
      Make Good Shares”
      means
      1,000,000 shares of Common Stock (as equitably adjusted for any stock splits,
      stock combinations, stock dividends or similar transactions) required to be
      deposited with the Make Good Escrow Agent pursuant to the Make Good Escrow
      Agreement. In the event that the After Tax Net Income reported in the 2008
      Annual Report is equal to or greater than the 2008 Guaranteed ATNI, no transfer
      of the 2008 Make Good Shares shall be required by the Company to the Investors
      and such 2008 Make Good Shares be returned to the Company in accordance with
      the
      Make Good Escrow Agreement. In the event that the After Tax Net Income reported
      in the 2009 Annual Report is equal to or greater than the 2009 Guaranteed ATNI,
      no transfer of the 2009 Make Good Shares shall be required by the Company to
      the
      Investors and such 2009 Make Good Shares shall be returned to the Company in
      accordance with the Make Good Escrow Agreement. 

     

    
      
        
        

      

      
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    (b) Any
      required transfer of 2008 Make Good Shares or 2009 Make Good Shares shall be
      made to the Investors or the Company, as applicable, within 10 Business Days
      after the date which the 2008 Annual Report or 2009 Annual Report, as
      applicable, is filed. 

     

    (c) Notwithstanding
      anything to the contrary contained herein, in determining whether the Company
      has achieved either the 2008 Guaranteed ATNI or 2009 Guaranteed ATNI, the
      Company may disregard any compensation charge or expense required to be
      recognized by the Company under GAAP resulting from the release of the 2008
      Make
      Good Shares or 2009 Make Good Shares (as relevant) to the Company if and to
      the
      extent such charge or expense is specified in the Company’s independent
      auditor’s report for the relevant year, as filed with the Commission. In
      determining whether the Company has achieved either the 2008 Guaranteed ATNI
      or
      2009 Guaranteed ATNI (as the case may be), any liquidated damages payable
      pursuant to the Transaction Documents shall not be included as expenses of
      the
      Company. If prior to the third anniversary of the filing of either of the 2008
      Annual Report or the 2009 Annual Report (as the case may be), the Company or
      their auditors report or recognize that the financial statements contained
      in
      such report are subject to amendment or restatement such that the Company would
      recognize or report adjusted After Tax Net Income of less than either of the
      2008 Guarantee ATNI or the 2009 Guaranteed ATNI (as the case may be), then
      notwithstanding any prior return of 2008 Make Good Shares or 2009 Make Good
      Shares to the Company, the Company will, within 10 Business Days following
      the
      earlier of the filing of such amendment or restatement or recognition, deliver
      the relevant 2008 Make Good Shares or 2009 Make Good Shares to the Investors.
      “After
      Tax Net Income”
      shall
      mean the Company’s income after taxes for the fiscal year ending December 31,
      2008 or December 31, 2009 (as the case may be) in each case determined in
      accordance with GAAP as reported in the 2008 Annual Report or 2009 Annual Report
      (as the case may be). 

     

    (d) The
      Company shall notify the Investors as soon as the 2008 Make Good Shares and
      2009
      Make Good Shares have been deposited with the Make Good Escrow Agent. The
      Company understands and agrees that the Investors’ right to receive 2008 and
      2009 Make Good Shares pursuant to this Section 4.11 and the Make Good Escrow
      Agreement shall continue to run to the benefit of each Investor even if such
      Investor shall have transferred or sold all or any portion of its Shares, and
      that each Investor shall have the right to assign its rights to receive all
      or
      any such shares of Common Stock to other Persons in conjunction with negotiated
      sales or transfers of any of its Shares. The Company represents and warrants
      that it has carefully considered and understands its obligations and rights
      under this Section 4.11 and the Make Good Escrow Agreement, and in furtherance
      thereof (x) has consulted with its legal and other advisors with respect thereto
      and (y) hereby forever waives and agrees that it may not assert any equitable
      defenses in any Proceeding involving the Make Good Shares.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

       

    

    (e) The
      Company covenants and agrees that upon any transfer of 2008 Make Good Shares
      or
      2009 Make Good Shares to the Investors in accordance with the Make Good Escrow
      Agreement, the Company shall promptly instruct its transfer agent to reissue
      such 2008 Make Good Shares or 2009 Make Good Shares in the applicable Investor’s
      name and deliver the same as directed by such Investor.

     

    (f) If
      any
      term or provision of this Section 4.11 contradicts or conflicts with any term
      or
      provision of the Make Good Escrow Agreement, the terms of the Make Good Escrow
      Agreement shall control.

     

    4.12. Chief
      Financial Officer. Within 45 days of the Closing Date, the Company will hire
      a new full-time chief financial officer who is fluent in English and an expert
      in (x) GAAP and (y) auditing procedures and compliance for United States public
      companies. Following the hiring of such Qualified CFO, the Company will timely
      file a Current Report on Form 8-K disclosing the information required by Item
      5.02 of Form 8-K.

     

    ARTICLE
      5.

    CONDITIONS
      PRECEDENT TO CLOSING

     

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

     

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

     

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

     

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

     

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

     

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

     

    (f) Company
      Agreements.
      The
      Company shall have delivered: 

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

       

    

    (i) The
      Closing Escrow Agreement, duly executed by the Company and the Escrow Agent;
      

     

    (ii) The
      Make
      Good Escrow Agreement, duly executed by the Company and the Make Good Escrow
      Agent; and

     

    (iii) The
      Registration Rights Agreement, duly executed by the Company.

     

    (g) Company
      Deliverables.
      The
      Company shall have delivered the Company Deliverables in accordance with Section
      2.2(a); 

     

    (h) Deposit
      of Make Good Shares.
      The
      Company shall have deposited 2,000,000 shares of Common Stock (as equitably
      adjusted for any stock splits, stock combinations, stock dividends or similar
      transactions) into escrow in accordance with the Make Good Escrow Agreement
      along with bank signature stamped stock powers executed in blank (or such other
      signed instrument of transfer acceptable to the Company’s transfer agent);
      and

     

    (i) Termination.
      This
      Agreement shall not have been terminated as to such Investor in accordance
      with
      Section 6.5.

     

    5.2. Conditions
      Precedent to the Obligations of the Company to sell Shares.
      The
      obligation of the Company to sell Shares at the Closing is subject to the
      satisfaction or waiver by the Company, at or before the Closing, of each of
      the
      following conditions:

     

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

     

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

     

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

     

    (d) Investor
      Deliverables.
      Each
      Investor shall have delivered the Registration Rights Agreement, the Closing
      Escrow Agreement and the Make Good Escrow Agreement, each duly executed by
      such
      Investor; and

     

    (e) Termination.
      This
      Agreement shall not have been terminated as to such Investor in accordance
      with
      Section 6.5.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      6.

    MISCELLANEOUS

     

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

     

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

     

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

    

      
        	
                If
                  to the Company:

              	
                China
                  Solar & Clean Energy Solutions, Inc.

              
	
                 

              	
                Building
                  3 No. 28, Feng Tai North Road, Beijing 

              
	
                 

              	
                People’s
                  Republic of China 100071

              
	 	
                Attn:
                  Chief Executive Officer

              
	 	
                Facsimile:

              
	 	 
	
                With
                  a copy to:

              	
                Guzov
                  Ofsink, LLC

              
	 	
                600
                  Madison Avenue, 14th
                  Floor

              
	 	
                New
                  York, NY 10022

              
	 	
                Facsimile:
                  (212) 688-7273

              
	 	
                Attn.:
                  Darren L. Ofsink, Esq.

              
	 	 
	
                If
                  to an Investor:

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

              

      

    

     

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

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

       

    

    6.4. Amendments;
      Waivers; No Additional Consideration.
      No
      provision of this Agreement may be waived or amended except in a written
      instrument signed by the Company and the Investors holding a majority of the
      Shares. No waiver of any default with respect to any provision, condition or
      requirement of this Agreement shall be deemed to be a continuing waiver in
      the
      future or a waiver of any subsequent default or a waiver of any other provision,
      condition or requirement hereof, nor shall any delay or omission of either
      party
      to exercise any right hereunder in any manner impair the exercise of any such
      right. No consideration shall be offered or paid to any Investor to amend or
      consent to a waiver or modification of any provision of any Transaction Document
      unless the same consideration is also offered to all Investors who then hold
      Shares. Without the written consent or the affirmative vote of each Investor
      affected thereby, an amendment or waiver under this Section 6.4 may not waive
      or
      amend any Transaction Document the effect of which would be to permit the
      Company to (1) name any Investor as an underwriter in a Registration Statement
      without such Investor’s specific written consent thereto, or (2) not include any
      Registrable Securities (as defined in the Registration Rights Agreement) of
      an
      Investor in a Registration Statement due to their refusal to be named as an
      underwriter therein, in each case, other than in accordance with Article 2
      of
      the Registration Rights Agreement.

     

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

     

    (a) by
      written agreement of the Investors and the Company, a copy of which shall be
      provided to the Escrow Agent; and

     

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

     

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

     

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

     

    6.7. Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and permitted assigns. The Company may not assign this
      Agreement or any rights or obligations hereunder without the prior written
      consent of the Investors. Any Investor may assign any or all of its rights
      under
      this Agreement to any Person to whom such Investor assigns or transfers any
      Shares, provided such transferee agrees in writing to be bound, with respect
      to
      the transferred Shares, by the provisions hereof that apply to the
“Investors.”

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

       

    

    6.8. No
      Third-Party Beneficiaries.
      This
      Agreement is intended for the benefit of the parties hereto and their respective
      successors and permitted assigns and is not for the benefit of, nor may any
      provision hereof be enforced by, any other Person, except as otherwise set
      forth
      in Section 4.7 (as to each Investor Party) and that Roth Capital Partners,
      LLC
      is a third party beneficiary of the Company's representations and warranties
      contained herein.

     

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

     

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

     

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

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

       

    

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

       

    

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

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES FOLLOW]

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

       

    

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

     

    
      	 	 	 
	 	CHINA
              SOLAR & CLEAN ENERGY SOLUTIONS, INC.
	 
 	 
 	 
 
	 	By:  	/S/ Deli
              Du
	 	Name: Deli Du
	 	Title:
              Chief
              Executive Officer and President 

    

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES FOR INVESTORS FOLLOW]

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    
      
        
          
            
               

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

            

            
              
                
                  
                    
                       

                      
                        
                          
                            	 	 	 
	 	NAME
                                    OF
                                    INVESTOR
	 	 
	 	Hua-Mei
                                    21st
                                    Century Partners, LP
	 
 	 
 	 
 
	 	By:  	/S/
                                    Peter Siris
	 	Name:
                                    Peter Siris
	 	Title:
                                    Managing
                                    Director

                          

                        

                        
                          
                            	 	 	 
	 	Investment
                                    Amount: $  	240,000
	 	 	 
	 	Tax
                                    ID
                                    No.:	 
	 	 	 

                          

                        

                         

                        
                          
                            
                              	 	 	 
	 	ADDRESS
                                      FOR NOTICE
	 
 	 
 	 
 
	 	c/o:  	Guerrilla
                                      Capital Management, LLC
	 	 	 
	 	Street:	237
                                      Park Avenue, 9th
                                      Floor
	 	 	 
	 	City/State/Zip:	New
                                      York, NY 10017
	 	 	 
	 	Attention:	Peter
                                      Siris; Jivra Hriston
	 	 	 
	 	Tel:	212-692-7692
	 	 	 
	 	Fax:	212-692-7624

                            

                          

                          
                             

                          

                          
                            
                              
                                
                                  	 	 	 
	 	DELIVERY
                                          INSTRUCTIONS
	 	
                                          (if
                                            different from above)

                                        
	 
 	 
 	 
 
	 	c/o:  	 
	 	 	 
	 	Street:	 
	 	 	 
	 	City/State/Zip:	 
	 	 	 
	 	Attention:	 
	 	 	 
	 	Tel:	 

                                

                                 

                                
                                  
                                    
                                      
                                      

                                    

                                    
                                      30

                                      
                                        

                                      

                                    

                                    
                                      
                                      

                                    

                                  

                                

                              

                              
                                
                                   

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

                                   

                                  
                                    
                                      
                                        	 	 	 
	 	NAME
                                                OF
                                                INVESTOR
	 	 
	 	Guerrilla
                                                Partners, LP
	 
 	 
 	 
 
	 	By:  	/S/
                                                Peter Siris
	 	Name:
                                                Peter Siris
	 	Title:
                                                Managing
                                                Director

                                      

                                    

                                    
                                      
                                        	 	 	 
	 	Investment
                                                Amount: $  	60,000
	 	 	 
	 	Tax
                                                ID
                                                No.:	 
	 	 	 

                                      

                                    

                                     

                                    
                                      
                                        
                                          	 	 	 
	 	ADDRESS
                                                  FOR NOTICE
	 
 	 
 	 
 
	 	c/o:  	Guerrilla
                                                  Capital Management, LLC
	 	 	 
	 	Street:	237
                                                  Park Avenue, 9th
                                                  Floor
	 	 	 
	 	City/State/Zip:	New
                                                  York, NY 10017
	 	 	 
	 	Attention:	Peter
                                                  Siris; Jivra Hriston
	 	 	 
	 	Tel:	212-692-7692
	 	 	 
	 	Fax:	212-692-7624

                                        

                                      

                                      
                                         

                                      

                                      
                                        
                                          
                                            
                                              	 	 	 
	 	DELIVERY
                                                      INSTRUCTIONS
	 	
                                                      (if
                                                        different from above)

                                                    
	 
 	 
 	 
 
	 	c/o:  	 
	 	 	 
	 	Street:	 
	 	 	 
	 	City/State/Zip:	 
	 	 	 
	 	Attention:	 
	 	 	 
	 	Tel:	 

                                            

                                            
                                               

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

          
            
              
                
                  
                  

                

                
                  31

                  
                    

                  

                

                
                  
                  

                

              

            

            
               

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

               

              
                
                  
                    	 	 	 
	 	NAME
                            OF
                            INVESTOR
	 	 
	 	Ancora
                            Greater China Fund, LP
	 
 	 
 	 
 
	 	By:  	John
                            P. Micklitsch
	 	Name: John
                            P.
                            Micklitsch
	 	Title:
                            Managing
                            Partner

                  

                

                
                  
                    	 	 	 
	 	Investment
                            Amount: $  	399,998.40
	 	 	 
	 	Tax
                            ID
                            No.:	 
	 	 	 

                  

                

                 

                
                  
                    
                      	 	 	 
	 	ADDRESS
                              FOR NOTICE
	 
 	 
 	 
 
	 	c/o:  	Ancora
                              Advisors, LLC
	 	 	 
	 	Street:	One
                              Chagrin Highlands, 200 Auburn Drive, Suite 300
	 	 	 
	 	City/State/Zip:	Cleveland,
                              OH 44122
	 	 	 
	 	Attention:	John
                              P. Micklitsch
	 	 	 
	 	Tel:	216-593-5074
	 	 	 
	 	Fax:	216-825-4001

                    

                  

                  
                     

                  

                  
                    
                      
                        
                          	 	 	 
	 	DELIVERY
                                  INSTRUCTIONS
	 	
                                  (if
                                    different from above)

                                
	 
 	 
 	 
 
	 	c/o:  	 
	 	 	 
	 	Street:	 
	 	 	 
	 	City/State/Zip:	 
	 	 	 
	 	Attention:	 
	 	 	 
	 	Tel:	 

                        

                         

                      

                    

                  

                

              

            

            
              
                
                  
                  

                

                
                  32

                  
                    

                  

                

                
                  
                  

                

              

            

            
               

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

               

              
                
                  
                    	 	 	 
	 	NAME
                            OF
                            INVESTOR
	 	 
	 	Ardsley
                            Offshore Fund, Ltd.
	 
 	 
 	 
 
	 	By:  	/S/
                            Steve Napoli
	 	Name: Steve
                            Napoli
	 	Title:
                            Agent/Advisor

                  

                

                
                  
                    	 	 	 
	 	Investment
                            Amount: $  	1,179,600
	 	 	 
	 	Tax
                            ID
                            No.:	 
	 	 	 

                  

                

                 

                
                  
                    
                      	 	 	 
	 	ADDRESS
                              FOR NOTICE
	 
 	 
 	 
 
	 	c/o:  	Ardsley
                              Partners
	 	 	 
	 	Street:	262
                              Harbor Drive
	 	 	 
	 	City/State/Zip:	Stamford,
                              CT 06902
	 	 	 
	 	Attention:	Steve
                              Napoli
	 	 	 
	 	Tel:	203-355-0700
	 	 	 
	 	Fax:	203-355-0715

                    

                  

                  
                     

                  

                  
                    
                      
                        
                          	 	 	 
	 	DELIVERY
                                  INSTRUCTIONS
	 	
                                  (if
                                    different from above)

                                
	 
 	 
 	 
 
	 	c/o:  	 
	 	 	 
	 	Street:	 
	 	 	 
	 	City/State/Zip:	 
	 	 	 
	 	Attention:	 
	 	 	 
	 	Tel:	 

                        

                         

                      

                    

                  

                

              

            

            
              
                
                  
                  

                

                
                  33

                  
                    

                  

                

                
                  
                  

                

              

            

             

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

             

            
              
                
                  	 	 	 
	 	NAME
                          OF
                          INVESTOR
	 	 
	 	Marion
                          Lynton
	 
 	 
 	 
 
	 	By:  	/S/
                          Steve Napoli
	 	Name: Steve
                          Napoli
	 	Title:
                          Agent/Advisor

                

              

              
                
                  	 	 	 
	 	Investment
                          Amount: $  	42,000.00
	 	 	 
	 	Tax
                          ID
                          No.:	 
	 	 	 

                

              

               

              
                
                  
                    	 	 	 
	 	ADDRESS
                            FOR NOTICE
	 
 	 
 	 
 
	 	c/o:  	Ardsley
                            Partners
	 	 	 
	 	Street:	262
                            Harbor Drive
	 	 	 
	 	City/State/Zip:	Stamford,
                            CT 06902
	 	 	 
	 	Attention:	Steve
                            Napoli
	 	 	 
	 	Tel:	203-355-0700
	 	 	 
	 	Fax:	203-355-0715

                  

                

                
                   

                

                
                  
                    
                      
                        	 	 	 
	 	DELIVERY
                                INSTRUCTIONS
	 	
                                (if
                                  different from above)

                              
	 
 	 
 	 
 
	 	c/o:  	 
	 	 	 
	 	Street:	 
	 	 	 
	 	City/State/Zip:	 
	 	 	 
	 	Attention:	 
	 	 	 
	 	Tel:	 

                      

                       

                    

                  

                

              

            

            
              
                
                  
                  

                

                
                  34

                  
                    

                  

                

                
                  
                  

                

              

            

            
               

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

               

              
                
                  
                    	 	 	 
	 	NAME
                            OF
                            INVESTOR
	 	 
	 	Ardsley
                            Partners Institutional Fund, L.P. 
	 
 	 
 	 
 
	 	By:  	/S/
                            Steve Napoli
	 	Name: Steve
                            Napoli
	 	Title:
                            Agent/Advisor

                  

                

                
                  
                    	 	 	 
	 	Investment
                            Amount: $  	1,092,000.00
	 	 	 
	 	Tax
                            ID
                            No.:	 
	 	 	 

                  

                

                 

                
                  
                    
                      	 	 	 
	 	ADDRESS
                              FOR NOTICE
	 
 	 
 	 
 
	 	c/o:  	Ardsley
                              Partners
	 	 	 
	 	Street:	262
                              Harbor Drive
	 	 	 
	 	City/State/Zip:	Stamford,
                              CT 06902
	 	 	 
	 	Attention:	Steve
                              Napoli
	 	 	 
	 	Tel:	203-355-0700
	 	 	 
	 	Fax:	203-355-0715 

                    

                  

                  
                     

                  

                  
                    
                      
                        
                          	 	 	 
	 	DELIVERY
                                  INSTRUCTIONS
	 	
                                  (if
                                    different from above)

                                
	 
 	 
 	 
 
	 	c/o:  	 
	 	 	 
	 	Street:	 
	 	 	 
	 	City/State/Zip:	 
	 	 	 
	 	Attention:	 
	 	 	 
	 	Tel:	 

                        

                         

                      

                    

                  

                

              

            

            
              
                
                  
                  

                

                
                  35

                  
                    

                  

                

                
                  
                  

                

              

            

             

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

             

            
              
                
                  	 	 	 
	 	NAME
                          OF
                          INVESTOR
	 	 
	 	Ardsley
                          Partners Fund II, L.P
	 
 	 
 	 
 
	 	By:  	/S/
                          Steve Napoli
	 	Name: Steve
                          Napoli
	 	Title:
                          Agent/Advisor

                

              

              
                
                  	 	 	 
	 	Investment
                          Amount: $  	1,686,000
	 	 	 
	 	Tax
                          ID
                          No.:	 
	 	 	 

                

              

               

              
                
                  
                    	 	 	 
	 	ADDRESS
                            FOR NOTICE
	 
 	 
 	 
 
	 	c/o:  	Ardsley
                            Partners
	 	 	 
	 	Street:	262
                            Harbor Drive
	 	 	 
	 	City/State/Zip:	Stamford,
                            CT 06902
	 	 	 
	 	Attention:	Steve
                            Napoli
	 	 	 
	 	Tel:	203-355-0700
	 	 	 
	 	Fax:	203-355-0715 

                  

                

                
                   

                

                
                  
                    
                      
                        	 	 	 
	 	DELIVERY
                                INSTRUCTIONS
	 	
                                (if
                                  different from above)

                              
	 
 	 
 	 
 
	 	c/o:  	 
	 	 	 
	 	Street:	 
	 	 	 
	 	City/State/Zip:	 
	 	 	 
	 	Attention:	 
	 	 	 
	 	Tel:	 

                      

                       

                    

                  

                

              

            

            
              
                
                  
                  

                

                
                  36

                  
                    

                  

                

                
                  
                  

                

              

            

            
               

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

               

              
                
                  
                    	 	 	 
	 	NAME
                            OF
                            INVESTOR
	 	 
	 	Chestnut
                            Ridge Partners, LP
	 
 	 
 	 
 
	 	By:  	/S/
                            Kenneth Holz
	 	Name: Kenneth
                            Holz
	 	Title:
                            CFO

                  

                

                
                  
                    	 	 	 
	 	Investment
                            Amount: $  	240,000.00
	 	 	 
	 	Tax
                            ID
                            No.:	 
	 	 	 

                  

                

                 

                
                  
                    
                      	 	 	 
	 	ADDRESS
                              FOR NOTICE
	 
 	 
 	 
 
	 	c/o:  	Chestnut
                              Ridge Capital, LLC
	 	 	 
	 	Street:	50
                              Tice Boulevard
	 	 	 
	 	City/State/Zip:	Woodcliff
                              Lake, NJ 07677
	 	 	 
	 	Attention:	Kenneth
                              Holz
	 	 	 
	 	Tel:	201-802-9494
	 	 	 
	 	Fax:	201-802-9450

                    

                  

                  
                     

                  

                  
                    
                      
                        
                          	 	 	 
	 	DELIVERY
                                  INSTRUCTIONS
	 	
                                  (if
                                    different from above)

                                
	 
 	 
 	 
 
	 	c/o:  	Goldman
                                  Sachs & Co.
	 	 	 
	 	Street:	1
                                  New
                                  York Plaza, 44th
                                  Floor
	 	 	 
	 	City/State/Zip:	New
                                  York, NY 10004
	 	 	 
	 	Attention:	Simba
                                  Mhungu
	 	 	 
	 	Tel:	212-902-8059

                        

                         

                      

                    

                  

                

              

            

            
              
                
                  
                  

                

                
                  37

                  
                    

                  

                

                
                  
                  

                

              

            

            
               

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

               

              
                
                  
                    	 	 	 
	 	NAME
                            OF
                            INVESTOR
	 	 
	 	Jayhawk
                            Private Equity Fund, LP
	 
 	 
 	 
 
	 	By:  	/S/
                            Michael D. Schmitz
	 	Name: Michael
                            D.
                            Schmitz
	 	Title:
                            CFO of GD
                            of GP

                  

                

                
                  
                    	 	 	 
	 	Investment
                            Amount: $  	470,383
	 	 	 
	 	Tax
                            ID
                            No.:	 
	 	 	 

                  

                

                 

                
                  
                    
                      	 	 	 
	 	ADDRESS
                              FOR NOTICE
	 
 	 
 	 
 
	 	c/o:  	 
	 	 	 
	 	Street:	5410
                              West 61st
                              Place, Suite 100
	 	 	 
	 	City/State/Zip:	Mission,
                              KS 66205
	 	 	 
	 	Attention:	Michael
                              D. Schmitz
	 	 	 
	 	Tel:	913-642-2611
	 	 	 
	 	Fax:	913-642-8661

                    

                  

                  
                     

                  

                  
                    
                      
                        
                          	 	 	 
	 	DELIVERY
                                  INSTRUCTIONS
	 	
                                  (if
                                    different from above)

                                
	 
 	 
 	 
 
	 	c/o:  	 
	 	 	 
	 	Street:	 
	 	 	 
	 	City/State/Zip:	 
	 	 	 
	 	Attention:	 
	 	 	 
	 	Tel:	 

                        

                         

                      

                    

                  

                

              

            

            
              
                
                  
                  

                

                
                  38

                  
                    

                  

                

                
                  
                  

                

              

            

            

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

               

              
                
                  
                    	 	 	 
	 	NAME
                            OF
                            INVESTOR
	 	 
	 	Jayhawk
                            Private Equity Co-Invest Fund, LP 
	 
 	 
 	 
 
	 	By:  	/S/
                            Michael D. Schmitz
	 	Name: Michael
                            D.
                            Schmitz
	 	Title:
                            CFO of GD
                            of GP

                  

                

                
                  
                    	 	 	 
	 	Investment
                            Amount: $  	29,617
	 	 	 
	 	Tax
                            ID
                            No.:	 
	 	 	 

                  

                

                 

                
                  
                    
                      	 	 	 
	 	ADDRESS
                              FOR NOTICE
	 
 	 
 	 
 
	 	c/o:  	 
	 	 	 
	 	Street:	5410
                              West 61st
                              Place, Suite 100
	 	 	 
	 	City/State/Zip:	Mission,
                              KS 66205
	 	 	 
	 	Attention:	Michael
                              D. Schmitz
	 	 	 
	 	Tel:	913-642-2611
	 	 	 
	 	Fax:	913-642-8661 

                    

                  

                  
                     

                  

                  
                    
                      
                        
                          	 	 	 
	 	DELIVERY
                                  INSTRUCTIONS
	 	
                                  (if
                                    different from above)

                                
	 
 	 
 	 
 
	 	c/o:  	 
	 	 	 
	 	Street:	 
	 	 	 
	 	City/State/Zip:	 
	 	 	 
	 	Attention:	 
	 	 	 
	 	Tel:	 

                        

                        
                           

                        

                      

                    

                  

                

              

            

            
              
                
                  
                  

                

                
                  39

                  
                    

                  

                

                
                  
                  

                

              

            

            
               

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

               

              
                
                  
                    	 	 	 
	 	NAME
                            OF
                            INVESTOR
	 	 
	 	The
                            USX China Fund
	 
 	 
 	 
 
	 	By:  	/S/
                            Stephen L. Parr
	 	Name: Stephen
                            L. Parr
	 	Title:
                            President

                  

                

                
                  
                    	 	 	 
	 	Investment
                            Amount: $  	480,000
	 	 	 
	 	Tax
                            ID
                            No.:	 
	 	 	 

                  

                

                 

                
                  
                    
                      	 	 	 
	 	ADDRESS
                              FOR NOTICE
	 
 	 
 	 
 
	 	c/o:  	Parr
                              Financial Group
	 	 	 
	 	Street:	5100
                              Poplar Avenue, Suite 3117
	 	 	 
	 	City/State/Zip:	Memphis,
                              TN 38137
	 	 	 
	 	Attention:	Steve
                              Parr
	 	 	 
	 	Tel:	901-680-5266
	 	 	 
	 	Fax:	901-680-5587

                    

                  

                  
                     

                  

                  
                    
                      
                        
                          	 	 	 
	 	DELIVERY
                                  INSTRUCTIONS
	 	
                                  (if
                                    different from above)

                                
	 
 	 
 	 
 
	 	c/o:  	 
	 	 	 
	 	Street:	 
	 	 	 
	 	City/State/Zip:	 
	 	 	 
	 	Attention:	 
	 	 	 
	 	Tel:	 

                        

                         

                      

                    

                  

                

              

            

            
              
                
                  
                  

                

                
                  40

                  
                    

                  

                

                
                  
                  

                

              

            

            
               

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

               

              
                
                  
                    	 	 	 
	 	NAME
                            OF
                            INVESTOR
	 	 
	 	Punch
                            Micro Cap Partners, LLC
	 
 	 
 	 
 
	 	By:  	/S/
                            Howard Punch
	 	Name: Howard
                            Punch
	 	Title:
                            President

                  

                

                
                  
                    	 	 	 
	 	Investment
                            Amount: $  	100,000
                            shares
	 	 	 
	 	Tax
                            ID
                            No.:	 
	 	 	 

                  

                

                 

                
                  
                    
                      	 	 	 
	 	ADDRESS
                              FOR NOTICE
	 
 	 
 	 
 
	 	c/o:  	Punch
                              & Associates Investment Mgmt.
	 	 	 
	 	Street:	3601
                              W 76th
                              St., Ste 225
	 	 	 
	 	City/State/Zip:	Edina,
                              MN 55435
	 	 	 
	 	Attention:	Howard
                              D. Punch Jr.
	 	 	 
	 	Tel:	952-224-4350
	 	 	 
	 	Fax:	952-224-4351

                    

                  

                  
                     

                  

                  
                    
                      
                        
                          	 	 	 
	 	DELIVERY
                                  INSTRUCTIONS
	 	
                                  (if
                                    different from above)

                                
	 
 	 
 	 
 
	 	c/o:  	 
	 	 	 
	 	Street:	 
	 	 	 
	 	City/State/Zip:	 
	 	 	 
	 	Attention:	 
	 	 	 
	 	Tel:	 

                        

                         

                      

                    

                  

                

              

            

            
              
                
                  
                  

                

                
                  41

                  
                    

                  

                

                
                  
                  

                

              

            

             

          

        

      

    

    
      Disclosure
        Schedules to the Securities Purchase Agreement, dated as of February_, 2008
        (the
“Agreement”), by and between China Solar & Clean Energy, Inc., a Nevada
        corporation (the “Company”), and the investors listed on the Schedule of Buyers
        attached hereto as Annex
        A
        and identified on the signature pages hereto (each, an “Investor” and
        collectively, the “Investors”).

       

      All
        capitalized terms used but not defined herein shall have the meanings as
        defined
        in the Agreement, unless otherwise provided herein.

       

      This
        Disclosure Schedule shall be construed with and be deemed as an integral
        part of
        the Agreement to the same extent as if the same had been set forth in their
        entirety therein. This Disclosure Schedule is intended only to qualify and
        limit
        the representations and warranties of the Company in the Agreement and shall
        not
        be deemed to expand in any way the scope or effect of any such representations
        and warranties.

       

      The
        Disclosure Schedule indicates the section and, if applicable, the subsection
        of
        the Agreement to which it relates, but shall also qualify such other sections
        or
        subsections in the Agreement provided the disclosure is in sufficient detail
        to
        enable a reasonable person to identify such other section or subsection to
        which
        such information is responsive.

       

      Headings
        have been inserted in the sections of this Disclosure Schedule for convenience
        of reference only and shall to no extent have the effect of amending or changing
        the express language of the corresponding sections in the
        Agreement.

       

      Where
        the
        terms of a contract, lease, or agreement have been summarized or described
        in
        this Disclosure Schedule, such summary or description does not purport to
        be a
        complete statement of the material terms of such contract, lease, agreement
        or
        other disclosure item but is a sufficient statement of the matters required
        to
        be disclosed in such description.

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

      SCHEDULE
        3.1(a) 

      

      Corporate
        Structure

      

      The
        following diagram sets forth our current corporate structure:

      

      

       

      SCHEDULE
        3.1(d)(ii) 

      

      June
        2007 Private Placement

      

      Reference
        is made to the Current Report on Form 8-K filed on June 19, 2007 for a
        description of the private financing completed on June13, 2007 and the
        transaction documents pertaining thereto. 

      

      As
        described in that 8-K, under the Securities Purchase Agreement dated June
        13,
        2007 between the Company, Barron Partners, LP and the other investors (the
        “June
        07 SPA”)
        the
        Company cannot enter into any transaction that have any reset features that
        could result in additional shares being issued. In addition, each investor
        in
        that transaction has the right to participate pro rata in any financing within
        eighteen months subsequent to the closing. Accordingly, the consent of those
        investors is required for this transaction.  

      

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

         

      

      Under
        the
        Registration Rights Agreement dated as of June 13, 2007, by and among the
        Company and the investors (the “June
        07 Registration Rights Agreement”),
        the
        Company was required to prepare and file a registration statement covering
        the
        sale of covering the sale of all of the “registrable securities” as defined
        therein. On February 7, 2008 a registration statement with respect to certain
        of
        the “registrable securities” was declared effective. The Company is required to
        file additional registration statements to register the remaining “registrable
        securities” on the earliest date permissible under SEC guidelines. The Company
        is not permitted to file any registration statement with respect to other
        securities if the effect thereof would be to impair the ability of the investors
        to have registered the maximum number of “registrable securities” which are
        permitted based on SEC Guidance. In addition, under the terms of the June
        07
        Registration Rights Agreement, the investors have certain piggyback registration
        rights with respect to any other registration statements. Accordingly the
        consent of those investors is required. 

      Under
        the
        June 07 Registration Rights Agreement “Registrable
        Securities”
is
        defined to mean and include the Shares issuable upon conversion of the Series
        A
        Preferred Stock and upon exercise of the Warrants issued pursuant to the
        June 07
        SPA. As to any particular Registrable Securities, such securities cease to
        be
        Registrable Securities when (a) they have been effectively registered under
        the
        1933 Act and disposed of in accordance with the registration statement covering
        them, or (b) they are or may be freely traded without registration pursuant
        to
        Rule 144, or (c) ... 

       

      Rights
        under Trenwith Placement Agent Agreement

      

      Reference
        is made to that certain Agreement, dated as of March 21, 2007 (the “Trenwith
        Agreement”),
        by and
        among Trenwith Securities, LLC (“Trenwith”) and the Company.  Under
        the
        terms of the Trenwith Agreement, Trenwith was granted certain rights (including,
        without limitation, the right to act as placement agent in connection with
        a
        subsequent private placement of the Company’s securities within a period of 24
        months after the closing of the June 2007 financing). Trenwith believes that
        it
        had the right to act as placement agent with respect to this offering but
        the
        Company has disputed that right. 

       

      SCHEDULE
        3.1(e)

      

      See
        SCHEDULE 3.1(d)(ii) 

      

      SCHEDULE
        3.1(g)

      

      Authorized
        capital

       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

         

      

      
        	
                China
                  Solar & Clean Energy Solutions, Inc.

              	 
	
                Capitalization

              	 
	 	 	 	 	 	 	 	 
	
                Authorized
                  Common Shares (par $.001)

              	 	 	
                66,666,667

              	 	 	 	 	 	 	 
	
                Authorized
                  Preferred Shares (par $.001)

              	 	 	
                25,000,000

              	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                Outstanding
                  Common Shares as of Feb. 9, 2008

              	 	 	 	 	 	
                6,255,290

              	 	 	 	 
	
                Preferred
                  Shares as of Feb.9, 2008 (1)

              	 	 	 	 	 	
                1,774,194

              	 	 	 	 
	
                Outstanding
                  Warrants as of Feb.9. 0028

              	 	 	 	 	 	
                5,505,559

              	 	 	 	 
	
                Outstanding
                  Options as of Feb. 9, 2008

              	 	 	 	 	 	
                0

              	 	 	 	 
	
                Any
                  Other Securities 

              	 	 	 	 	 	
                0

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                Fully
                  diluted shares

              	 	 	 	 	 	
                13,535,043

              	 	 	 	 
	
                Plus
                  acquisition shares

              	 	 	 	 	 	
                919,705

              	 	 	 	 
	
                Total

              	 	 	 	 	 	
                14,454,748

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                Note
                  (1): the Preferred Shares excludes 900,000 shares of preferred
                  escrowed by
                  Tri-state

              
	
                Total
                  outstanding Series A Preferred Shares as of Feb.9, 2008

              	 	 	 	
                1,774,194

              	 

      

       

      We
        are
        authorized to issue 66,666,667 shares of common stock, par value $.001 per
        share
        and 25,000,000 shares of preferred stock, par value $.001 per share, of which
        3,500,000 shares have been designated as Series A Preferred Stock. 

       

      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

      

      Series
        A Preferred Stock Outstanding: Class A Warrants and Class B Warrants:

      

      On
        June 13, 2007 we raised $2,750,000 in a private placement providing
        for the sale to the investors for an aggregate purchase price of $2,750,000
        (or
        $1.55 per share) of 

      

      
        	
                (i)   
                   

              	
                1,774,194
                  shares of Series A Preferred Stock (with each share convertible
                  into one
                  (1) share of common stock, subject to
                  adjustment)

              

      

       

      
        	
                (ii)   
                   

              	
                five
                  year class A warrants to purchase 1,774,194 shares of common stock
                  at an
                  exercise price $1.90 per share (subject to adjustment), and
                  

              

      

       

      
        	
                (iii)    
                   

              	
                five
                  year class B warrants to purchase an additional 1,774,194 shares
                  of Common
                  Stock at an exercise price of $2.40 per share (subject to adjustment).
                  

              

      

      

      Additional
        shares of Series A Preferred Stock (not to exceed 900,000) are required to
        be
        delivered to the investors in the event that we fail to achieve “pre tax income”
targets for of $3,000,000 the fiscal year ended December 31, 2007 and $5,500,000
        for the fiscal year ended December 31, 2008. 

       

      Trenwith
        Warrants:

      

      Under
        the
        placement agent agreement between the Company and Trenwith Securities LLC,
        the
        Company paid Trenwith a transaction fee of $165,000 at the closing of the
        June
        07 transaction and issued Trenwith five year warrants to purchase 106,452
        shares
        of common stock with an exercise price of $1.71 per share. Trenwith had also
        been issued on execution of the placement agreement five year warrants to
        purchase 75,000 shares of common stock with an exercise price of $2.90. Under
        the terms of the placement agent agreement if any additional transaction
        is
        completed between the Company and the June investors within 12 months of
        the
        closing Trenwith is entitled to receive an additional fee equal to 4% of
        the
        aggregate consideration paid by the investors. 

      

      HCI
        Warrants:

      

      Pursuant
        to a consulting agreement entered on July 23, 2007 between the Company and
        Hayden Communications International, Inc. (“HCI”), an investor relations firm
        owned by Matt Hayden we are required to pay HCI $8,500 per month and HCI
        was
        issued 175,000 warrants at an exercise price of $2.40, half of which vest
        on
        January 23, 2008 and the other half vests on July 23, 2008. 

       

      See
        SCHEDULE 3.1(d)(ii) for a description of rights of first refusal.

      

      
        
          
          

        

        
          46

          
            

          

        

        
          
          

        

         

      

      Other
        Outstanding Warrants: In
        connection with a private placement completed on March 31, 2005 we issued
        warrants to purchase 1,825,719 shares of Common stock. The warrants have
        an
        effective exercise price of $3.01. 

      

      There
        are
        no outstanding options.

      

      SCHEDULE
        3.1(h)

      

      8-K:
        

      

      On
        May
        18, 2007 Deli Solar (Beijing) entered into an agreement with Tianjin Municipal
        Ji County State-owned Assets Administration Commission (the “SAAC”) to purchase
        51% of the equity in Tianjin Huaneng Group Energy Equipment Co., Ltd. (“Tianjin
        Huaneng”) for a purchase price of RMB24,100,000 (approximately $3,149,147). The
        transaction closed on July 1, 2007. In connection with this transaction we
        were
        required to file an 8-K under Item 2.10 disclosing the closing within 4 business
        days of the transaction. We filed an 8-K disclosing this transaction on
        September 14, 2007. 

       

      SCHEDULE
        3.1(p)

      

      INTELLECTUAL
        PROPERTY

       

      Trademarks
        

      

      Deli
        Solar (Bazhou) is the holder of the following trademarks registered with
        the
        Trademark Offices of the PRC National Industrial and Commerce Administrative
        Bureau (the “PRC Trademark Offices”): 

      

      
        	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                Trademark

              	
                 

              	
                Authorized
                  Scope

              	
                 

              	
                Valid
                  Term

              	
                 

              	
                Certificate
                  Number

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                Deli
                  Solar

              	
                 

              	
                Boiler
                  (Space Heating Utility);

              	
                 

              	
                03/14/2003

              	
                 

              	
                to
                  1978396

              
	
                 

              	
                 

              	
                Solar
                  Hot Water Utility;

              	
                 

              	
                03/13/2013

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                Solar
                  Stove and Solar Energy

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                Collection
                  Heater

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                Du
                  Deli

              	
                 

              	
                The
                  same as the above

              	
                 

              	
                01/28/2003

              	
                 

              	
                to
                  1978532

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                01/27/2013

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                De
                  Yu

              	
                 

              	
                Solar
                  Energy Collection Heat

              	
                 

              	
                07/28/1998

              	
                 

              	
                to
                  1195609

              
	
                 

              	
                 

              	
                and
                  Boiler (Not machine accessory)

              	
                 

              	
                07/27/2008

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                Aili
                  Solar (to replace our brand "Ailiyang")

              	
                 

              	
                Approved,
                  pending the trademark certificate delivery

              
	 	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	 	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              

      

       

      
        
          
          

        

        
          47

          
            

          

        

        
          
          

        

         

      

      A
        registered trademark is protected for a term of ten years, renewable for
        another
        term of ten years under the
        trademark law of the PRC, so long as an application for renewal is submitted
        to
        the PRC Trademark Offices within six months prior to the expiration of the
        initial term. 

       

      We
        submitted our trademark application on "Aili yang" in April 2007. We anticipate
        that the PRC trademark offices will issue the notice later this year.

      

      Patents.
        

      

      Currently,
        none of our products or technology is patented.

       

      Domain
        names. 

      

      We
        own
        and operate a website under the internet domain name http://www.deli-group.com
        .
        Traffic to our other internet domain names www.delisolar.com and
        www.AiLiYang.com are directed to that website.

      

      SCHEDULE
        3.1(q)

      

      We
        currently do not carry any product liability or other similar insurance,
        nor do
        we have property insurance covering our plants, manufacturing equipment and
        office buildings. While product liability lawsuits in the PRC are rare and
        we
        have never experienced significant failures of its products, we cannot assure
        you that we would not face liability in the event of any failure of any of
        its
        products. 

       

      SCHEDULE
        3.1(u)

      

      We
        have
        entered into a placement agreement Roth Capital under which we are required
        to
        pay certain brokerage fees with respect to this transaction. 

      

      See
        also
        Schedule 3.1(d) (ii). 

      

      SCHEDULE
        3.1(v)

      

      Under
        the
        Registration Rights Agreement dated as of 13th
        day of
        June, 2007, by and among the Company and the investors (the “June
        07 Registration Rights Agreement”),
        the
        Company was required to prepare and file a registration statement covering
        the
        sale of covering the sale of all of the “registrable securities” as defined
        therein. On February 7, 2008 a registration statement with respect to certain
        of
        the “registrable securities” was declared effective. The Company is required to
        file additional registration statements to register the remaining “registrable
        securities” on the earliest date permissible under SEC guidelines. The Company
        is not permitted to file any registration statement with respect to other
        securities if the effect thereof would be to impair the ability of the investors
        to have registered the maximum number of “registrable securities” which are
        permitted based on SEC Guidance. In addition, under the terms of the June
        07
        Registration Rights Agreement, the investors have certain piggyback registration
        rights with respect to any other registration statements. Accordingly the
        consent of those investors is required. 

      Under
        the
        June 07 Registration Rights Agreement “Registrable
        Securities”
is
        defined to mean and include the Shares issuable upon conversion of the Series
        A
        Preferred Stock and upon exercise of the Warrants issued pursuant to the
        June 07
        SPA. As to any particular Registrable Securities, such securities cease to
        be
        Registrable Securities when (a) they have been effectively registered under
        the
        1933 Act and disposed of in accordance with the registration statement covering
        them, (b) they are or may be freely traded without registration pursuant
        to Rule
        144, or (c) they have been otherwise transferred and new certificates for
        them
        not bearing a restrictive legend have been issued by the Company and the
        Company
        shall not have “stop transfer” instructions against them. 

      

      
        
          
          

        

        
          48

          
            

          

        

        
          
          

        

      

      

      SCHEDULE
        3.1(hh),

      

      Under
        the
        terms of the Securities Purchase Agreement, prior to July 13, 2007, we were
        required to increase the size of our Board of Directors to five or seven
        and
        cause the appointment of a majority of the board to be “independent directors,”
as defined by the rules of the Nasdaq Stock Market. We did not comply with
        obligation until November 1, 2007. Under the terms of the Securities Purchase
        Agreement we are required to pay the investors liquidated damages equal to
        one
        percent (1%) per month of the purchase price of the then outstanding shares
        of
        Series A Preferred Stock, in cash or in Series A Preferred Stock, at the
        option
        of the investors, based on the number of days that such obligation is not
        met
        beyond certain grace periods. Accordingly through November 1, 2007 we were
        delinquent by 110 days in meeting this obligation. In addition, under the
        terms
        of the securities purchase agreement, we were required, prior to August 12,2007
        to appoint (i) an audit committee comprised solely of not less than three
        independent directors and a (ii) compensation committee comprised of not
        less
        than three directors, a majority of whom are independent directors. Our audit
        and compensation currently each consists of two members both of whom are
        independent. Accordingly, we are delinquent in our obligation. However, under
        the terms of the securities purchase agreement no liquidated damages are
        required to be paid for this breach during any period for which liquidated
        damages are payable for failing to have an independent board. Accordingly,
        damages began to accrue for breach of this provision on November 1, 2007.
        As of
        January 15, 2008 we were delinquent by 76 days in meeting this obligation
        and we
        are required to pay investors a total of approximately $68,750.Accordingly,
        we
        are required to pay the investors a total of approximately
        $167,750.

      

      Under
        the
        terms of the registration rights agreement we are required, among other things,
        to use our commercially reasonable best efforts to have a registration declared
        relating to the June 2007 transaction effective by January 10, 2008. The
        registration statement was declared effective on February 7, 2007. As a result
        of our failure to meet this schedule we are required to pay liquidated damages,
        which are payable through the issuance of additional shares of Series A
        Preferred Stock at the rate of 17,742 shares of Series A Preferred Stock
        per
        month. 

      

      SCHEDULE
        4.4.

      

      See
        SCHEDULE 3.1(v).

       

      
        
          
          

        

        
          49

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