Document:

ex10a.htm

    Exhibit 10-a

     

    
      AMENDED
AND RESTATED

      MERGER
AGREEMENT

      

      

      by
and among

      

      Wincroft,
Inc.

      

      and

      

      Apollo
Solar Energy, Inc. (a Nevada corporation)

      

      and

      

      

      Apollo
Solar Energy, Inc. (a Delaware corporation)

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      Dated
as of October 14, 2008

      

    

     

    
 

    
      
        
        

      

      
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    MERGER
AGREEMENT

     

    This
Amended and Restated Merger Agreement (the “Agreement”)
is made and entered into as of October 14, 2008 by and among Wincroft, Inc., a
corporation formed under the laws of the State of Nevada (“WCRF”),
Apollo Solar Energy, Inc, a corporation newly formed under the laws of the State
of Nevada and a wholly owned subsidiary of WCRF (the “Merger
Sub”), and Apollo Solar Energy, Inc., a corporation formed under the laws
of the State of Delaware (“Apollo”).  Each
of WCRF, the Merger Sub and Apollo is referred to herein individually as a
“Party”
and all are referred to collectively as the “Parties.”

     

     

    PREAMBLE

     

    WHEREAS,
the parties hereto entered into that certain merger agreement (the “Prior
Agreement”) dated as of August 8, 2008 in connection with the Merger and
wish to amend and restate the Prior Agreement in its entirety by virtue of this
Agreement;

     

    WHEREAS,
Apollo owns 100% of the equity of Sichuan Apollo Solar Science and Technology
Co. Ltd. (“Sichuan
Apollo”), a wholly foreign-owned enterprise (WOFE) organized under the
laws of the People’s Republic of China (“Sichuan
Apollo”);

     

    WHEREAS,
the Boards of Directors of each of WCRF, Merger Sub and Apollo have determined
that a business combination between Apollo and Merger Sub through the statutory
merger of Merger Sub with and into Apollo (the “Merger”),
is advisable and in the best interests of their respective companies and
stockholders and in furtherance thereof have approved the Merger;
and

     

    WHEREAS,
pursuant to the Merger, all issued and outstanding shares of common stock of
Apollo, $0.0001 par value (the “Apollo
Shares”), shall be cancelled and converted into the right to receive
shares of WCRF Common Stock, $0.001 par value (“Merger
Shares”), at the rate set forth herein, which shall represent 96.87% of
the voting stock of WCRF after the Merger;

     

    NOW,
THEREFORE, in consideration of the premises and the mutual covenants,
representations and warranties contained herein, the Parties, intending to be
legally bound, hereby agree as follows:

     

    CERTAIN
DEFINITIONS

     

    As used
in this Agreement, the following terms shall have the meanings set forth
below:

     

    “Acquired
Entities” means Apollo and Sichuan Apollo collectively.

     

     

    
      
        
        

      

      
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    “Applicable
Law” means any domestic or foreign law, statute, regulation, rule,
policy, guideline or ordinance applicable to the businesses of the Parties, the
Merger and/or the Parties.

     

    “Apollo
Shares” has the meaning set forth in the Preamble.

     

    “Closing”
has the meaning set forth in Section 1.02.

     

    “Dissenting
Shares” has the meaning set forth in Section 1.01(c)(ii).

     

    “DGCL”
means the Delaware General Corporation Law.

     

    “Effective
Time” has the meaning set forth in Section 1.03.

     

    “Knowledge”
means, in the case of WCRF or Apollo, a particular fact or other matter of which
its Chief Executive Officer or Chief Financial Officer is actually aware or
which a prudent individual serving in such capacity could be expected to
discover or otherwise become aware of in the course of conducting a reasonable
review or investigation of the corporation and its business and
affairs.

     

    “Lien”
means, with respect to any property or asset, any mortgage, lien, pledge,
charge, security interest, claim, encumbrance, royalty interest, any other
adverse claim of any kind in respect of such property or asset, or any other
restrictions or limitations of any nature whatsoever.

     

    “Merger”
has the meaning set forth in the Preamble.

     

    “Merger
Shares” has the meaning set forth in the Preamble.

     

    “Material
Adverse Effect” with respect to any entity or group of entities means any
event, change or effect that has or would have a materially adverse effect on
the financial condition, business or results of operations of such entity or
group of entities, taken as a whole.

     

    “NGCL”
means the Nevada General Corporation Law.

     

    “Person”
means any individual, corporation, partnership, trust or unincorporated
organization or a government or any agency or political subdivision
thereof.

     

    “Surviving
Entity” shall mean Apollo as the surviving entity in the Merger as
provided in Section 1.03.

     

    “Tax”
(and, with correlative meaning, “Taxes”
and “Taxable”)
means:

     

    (i) any
income, alternative or add-on minimum tax, gross receipts tax, sales tax, use
tax, ad valorem tax, transfer tax, franchise tax, profits tax, license tax,
withholding tax, payroll tax, employment tax, excise tax, severance tax, stamp
tax, occupation tax, property tax, environmental or windfall profit tax, custom,
duty or other tax, impost, levy, governmental fee or other like assessment or
charge of any kind whatsoever together with any interest or any penalty,
addition to tax or additional amount imposed with respect thereto by any
governmental or Tax authority responsible for the imposition of any such tax
(domestic or foreign), and

     

     

    
      
        
        

      

      
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    (ii) any
liability for the payment of any amounts of the type described in clause (i)
above as a result of being a member of an affiliated, consolidated, combined or
unitary group for any taxable period, and

     

    (iii) any
liability for the payment of any amounts of the type described in clauses (i) or
(ii) above as a result of any express or implied obligation to indemnify any
other person.

     

    “Tax
Return” means any return, declaration, form, claim for refund or
information return or statement relating to Taxes, including any schedule or
attachment thereto, and including any amendment thereof.

     

    ARTICLE
I

    THE
MERGER

     

    
      	
              SECTION
      1.01

            	
              THE
      MERGER

            

    

     

    Subject
to the terms and conditions set forth in this Agreement and in accordance with
applicable provisions the DGCL and the NGCL, at the Effective Time, all Apollo
Shares shall be cancelled and converted into the right to receive the Merger
Shares. In connection therewith, the following terms shall apply:

     

    
      	 
      	
              (a)

            	
              Conversion
      of Securities.

            

    

     

    (i)   Conversion
of Apollo Securities. At the Effective Time, by virtue of the Merger and
without any action on the part of WCRF, Apollo or the Merger Sub, or the holders
of any of their respective securities:

     

    (A)   Each
of the issued and outstanding shares of common stock of Apollo immediately prior
to the Effective Time shall be canceled and extinguished and each shall be
converted automatically into the right to receive Four Thousand (4,000) Merger
Shares.  The allocation of the Merger Shares among the shareholders of
Apollo is set forth in Schedule 1.01 hereto.

     

    (B)   All
Apollo Shares shall no longer be outstanding and shall automatically be canceled
and extinguished and shall cease to exist, and each holder of a certificate
representing any such shares shall cease to have any rights with respect
thereto, except the right to receive the Merger Shares to be issued pursuant to
this Section 1.01(a)(i) upon the surrender of such certificate in accordance
with Section 1.07.

     

    (C)   The
Merger Shares shall represent 96.87%, on a fully diluted basis, of the voting
stock of all classes of issued and outstanding stock of WCRF at the Effective
Time.

     

     

     

    
      
        
        

      

      
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    (ii)   Conversion
of Merger Sub Stock. At the Effective Time, by virtue of the Merger and
without any action on the part of Apollo, WCRF, the Merger Sub, or the holders
of any of their respective securities, each share of capital stock of Merger Sub
outstanding immediately prior to the Effective Time shall be converted into one
share of the common stock of the Surviving Entity and the Surviving Entity shall
be a wholly owned subsidiary of WCRF.   The shares of common
stock of the Surviving Entity so issued in such conversion shall constitute the
only outstanding shares of capital stock of the Surviving Entity.

     

    (b)   Exemption
from Registration. The Parties intend that the issuance of the Merger
Shares to Apollo shall be exempt from the registration requirements of the
Securities Act pursuant to Section 4(2) of the Securities Act and the rules and
regulations promulgated thereunder.

     

              (c)           Shares
Subject to Appraisal Rights.

     

    (i) Notwithstanding
Section 1.01, Dissenting Shares shall not be converted into a right to receive
Merger Shares and the holders thereof shall be entitled only to such rights as
are granted by Delaware Law. Each holder of Dissenting Shares who becomes
entitled to payment for such shares pursuant to Delaware Law shall receive
payment therefor from the Surviving Entity in accordance with the Delaware Law,
provided, however, that (i) if any stockholder of  Company who
asserts appraisal rights in connection with the Merger (a “Dissenter”)
has failed to establish his entitlement to such rights as provided in Delaware
Law, or (ii) if any such Dissenter has effectively withdrawn his demand for
payment for such shares or waived or lost his right to payment for his shares
under the appraisal rights process under Delaware Law the Apollo Shares held by
such Dissenter shall be treated as if they had been converted, as of the
Effective Time, into a right to receive Merger Shares and as provided in Section
1.01. Apollo shall give WCRF prompt notice of any demands for payment received
by Apollo from a person asserting appraisal rights, and WCRF shall have the
right to participate in all negotiations and proceedings with respect to such
demands. Apollo shall not, except with the prior written consent of WCRF, make
any payment with respect to, or settlement or offer to settle, any such
demands.

     

    (ii) As used
herein, “Dissenting
Shares” means any shares of Apollo Common Apollo held by stockholders of
Apollo who are entitled to appraisal rights under Delaware Law, and who have
properly exercised, perfected and not subsequently withdrawn or lost or waived
their rights to demand payment with respect to their shares in accordance with
Delaware Law.

     

    
      	
              SECTION
      1.02

            	
              CLOSING

            

    

     

    The
closing of the Merger (the “Closing”)
will take place as soon as practicable after the satisfaction or waiver of the
conditions precedent set forth in Article V or at such other date as WCRF and
Apollo shall agree (the “Closing
Date”), but in any event no later than October 31, 2008, unless extended
by a written agreement of WCRF and Apollo.   The Closing shall
take place at the offices of Kramer Levin Naftalis & Frankel LLP, 1177
Avenue of the Americas, New York, New York 10036, or at such other location as
the parties hereto agree.

     

     

    
      
        
        

      

      
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              SECTION
      1.03

            	
              MERGER;
      EFFECTIVE TIME

            

    

     

    At the
Effective Time, and subject to and upon the terms and conditions of this
Agreement, Merger Sub shall merge with and into Apollo in accordance with the
applicable provisions of the DGCL and the NGCL, the separate corporate existence
of Merger Sub shall cease and Apollo shall continue as the Surviving Entity. The
Effective Time shall occur upon the later of (a) the filing with the Secretary
of State of the State of Nevada of a Certificate of Merger, executed in
accordance with the applicable provisions of the NGCL and (b) the filing with
the Secretary of State of the State of Delaware of a Certificate of Merger,
executed in accordance with the applicable provisions of the DGCL (the “Effective
Time”). The date on which the Effective Time occurs is referred to as the
“Effective
Date.” Provided that this Agreement has not been terminated pursuant to
Article VI, the Parties will cause the Certificates of Merger to be filed as
soon as practicable after the Closing.

     

    
      	
              SECTION
      1.04

            	
              EFFECT
      OF THE MERGER

            

    

     

    The
Merger shall have the effect set forth in Section 92A.250 of the Nevada Revised
Statutes. Without limiting the generality of the foregoing, and subject thereto,
at the Effective Time, all the properties, rights, privileges, powers and
franchises of Apollo and Merger Sub shall vest in the Surviving Entity, and all
debts, liabilities and duties of Apollo and Merger Sub shall become the debts,
liabilities and duties of the Surviving Entity.

     

    
      	
              SECTION
      1.05

            	
              CERTIFICATE
      OF INCORPORATION AND BYLAWS; DIRECTORS AND
  OFFICERS

            

    

     

    Pursuant
to the Merger:

     

    (a)   The
Articles of Incorporation and Bylaws of Merger Sub as in effect immediately
prior to the Effective Time shall be the Certificate of Incorporation and Bylaws
of the Surviving Entity immediately following the Merger.

     

    (b)   The
directors and officers of Apollo immediately prior to the Merger shall be the
directors and officers of the Surviving Entity subsequent to the
Merger.

     

    
      	
              SECTION 1.06

            	
              RESTRICTIONS
      ON RESALE

            

    

     

    The
Merger Shares issued pursuant to the Merger will not be registered under the
Securities Act or the securities laws of any state, and cannot be transferred,
hypothecated, sold or otherwise disposed of until: (i) a registration statement
with respect to such securities is declared effective under the Securities Act,
or (ii) WCRF receives an opinion of counsel for the holders of the shares
proposed to be transferred, reasonably satisfactory to counsel for WCRF, that an
exemption from the registration requirements of the Securities Act is
available.

     

     

    
      
        
        

      

      
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    The
certificates representing the Merger Shares which are being issued hereunder
shall contain a legend substantially as follows:

     

    “THE
SECURITIES WHICH ARE REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED,
HYPOTHECATED OR OTHERWISE DISPOSED OF UNTIL A REGISTRATION STATEMENT WITH
RESPECT THERETO IS DECLARED EFFECTIVE UNDER SUCH ACT, OR WINCROFT, INC. RECEIVES
AN OPINION OF COUNSEL FOR THE HOLDER REASONABLY SATISFACTORY TO COUNSEL FOR
WINCROFT, INC. THAT AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT
IS AVAILABLE.”

     

    
      	
              SECTION
      1.07

            	
              EXCHANGE
      OF CERTIFICATES

            

    

     

    (a)           Exchange
of Certificates.  After the Effective Time, the holders of the
Apollo Shares shall be required to surrender all their Apollo Shares to the
Exchange Agent, and the holders shall be entitled upon such surrender to receive
in exchange therefor certificates representing the proportionate number of
Merger Shares into which the Apollo Shares theretofore represented by the stock
certificates so surrendered. Until so surrendered, each outstanding certificate
that, prior to the Effective Time, represented Apollo Shares shall be deemed for
all corporate purposes, subject to the further provisions of this Article I, to
evidence the ownership of the number of whole Merger Shares for which such
Apollo Shares have been so exchanged. No dividend payable to holders of Merger
Shares of record as of any date subsequent to the Effective Time shall be paid
to the owner of any certificate which, prior to the Effective Time, represented
Apollo Shares, until such certificate or certificates representing all the
relevant Apollo Shares, together with a stock transfer form, are surrendered as
provided in this Article I or pursuant to letters of transmittal or other
instructions with respect to lost certificates provided by the Exchange
Agent.

     

    (b)           Exchange
Procedures.

     

    (i)           Empire
Stock Transfer, Inc., WCRF’s transfer agent, shall
act as exchange agent (the “Exchange
Agent”) in the Merger.

     

    (ii)           Promptly
after the Effective Time, WCRF shall make available to the Exchange Agent for
exchange in accordance with this Article I, through such reasonable
procedures as WCRF may adopt, the Merger Shares issuable pursuant to
Section 1.01(a) in exchange for Apollo Shares outstanding immediately prior
to the Effective Time.

     

    (iii) Promptly
after the Effective Time, WCRF shall cause the Exchange Agent to mail to each
holder of record of a certificate or certificates (the “Certificates”)
which immediately prior to the Effective Time represented outstanding Apollo
Shares, whose shares were converted into the right to receive shares of Merger
Shares pursuant to Section 1.01, (i) a letter of transmittal (which shall
specify that delivery shall be effected, and risk of loss and title to the
Certificates shall pass, only upon receipt of the Certificates by the Exchange
Agent, and shall be in such form and have such other provisions as WCRF may
reasonably specify) and (ii) instructions for use in effecting the surrender of
the Certificates in exchange for certificates representing Merger Shares. Upon
surrender of a Certificate for cancellation to the Exchange Agent or to such
other agent or agents as may be appointed by WCRF, together with such letter of
transmittal, duly completed and validly executed in accordance with the
instructions thereto, the holder of such Certificate shall be entitled to
receive in exchange therefor a certificate representing the number of Merger
Shares which such holder has the right to receive pursuant to Section 1.01, and
the Certificate so surrendered shall forthwith be canceled.

     

     

    
      
        
        

      

      
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    (iv) Notwithstanding
anything to the contrary in this Section 1.07, none of the Exchange Agent, the
Surviving Entity, WCRF or any party hereto shall be liable to any person for any
amount properly paid to a public official pursuant to any applicable abandoned
property, escheat or similar law.

     

    (c)   Full
Satisfaction of Rights. All Merger Shares for which the Apollo Shares
shall have been exchanged pursuant to this Article I shall be deemed to have
been issued in full satisfaction of all rights pertaining to the Apollo
Shares.

     

    (d)   
Exchange
of Certificates. All certificates representing Apollo Shares converted
into the right to receive Merger Shares pursuant to this Article I shall be
furnished to WCRF subsequent to delivery thereof to the Exchange Agent pursuant
to this Agreement.

     

    (e)   
Closing
of Transfer Books. On the Effective Date, the stock transfer book of
Apollo shall be deemed to be closed and no transfer of Apollo Shares shall
thereafter be recorded thereon.

     

     

    ARTICLE
II

    REPRESENTATIONS
AND WARRANTIES OF WCRF AND MERGER SUB

     

    WCRF and,
where applicable, the Merger Sub hereby jointly and severally represent and
warrant to Apollo, as of the date of this Agreement, as of the Closing Date and
as of the Effective Time except at otherwise indicated, and except in each case
as disclosed in the WCRF disclosure letter delivered as of the date hereof, as
follows:

     

    
      	
              SECTION
      2.01

            	
              ORGANIZATION,
      STANDING AND POWER

            

    

     

    WCRF is a
corporation duly incorporated, validly existing and in good standing under the
laws of the State of Nevada, and has corporate power and authority to conduct
its business as presently conducted by it and to enter into and perform this
Agreement and to carry out the transactions contemplated by this Agreement.
Merger Sub is a corporation duly incorporated, validly existing and in good
standing under the laws of the State of Nevada, and has corporate power and
authority to enter into and perform this Agreement and to carry out the
transactions contemplated by this Agreement.   Each of WCRF and
Merger Sub has the power to own its properties and to carry on its business as
now being conducted and as presently proposed to be conducted and is duly
authorized and qualified to do business and is in good standing in each
jurisdiction in which the failure to be so qualified and in good standing would
have a Material Adverse Effect on WCRF. WCRF has delivered or made available to
Apollo a true and correct copy of the Articles of Incorporation (the “Articles
of Incorporation”), and the Bylaws, or other charter documents, as
applicable, of WCRF and Merger Sub, each as amended to date. Neither WCRF nor
Merger Sub is in violation of any of the provisions of its respective charter or
bylaws or equivalent organization documents. There are no outstanding
subscriptions, options, warrants, puts, calls, rights, exchangeable or
convertible securities or other commitments or agreements of any character
relating to the issued or unissued capital stock or other securities of WCRF or
Merger Sub, or otherwise obligating WCRF or Merger Sub to issue, transfer, sell,
purchase, redeem or otherwise acquire any such securities. WCRF does not
directly or indirectly own any equity or similar interest in, or any interest
convertible or exchangeable or exercisable for, any equity or similar interest
in, any corporation, partnership, joint venture or other business association or
entity.

     

     

    
      
        
        

      

      
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              SECTION
      2.02

            	
              SUBSIDIARIES

            

    

     

    WCRF owns
all of the outstanding capital stock of the Merger Sub.
All of the outstanding shares of capital stock of Merger Sub are owned by WCRF
free and clear of all liens, charges, claims or encumbrances or rights of
others.   Other than its ownership of the Merger Sub, WCRF does
not have an ownership interest in any Person.  
Merger Sub is a recently formed corporation and prior to the date hereof and
through the Effective Date, Merger Sub has not and shall not have conducted any
business operations, become a party to any agreements, or incurred any
liabilities or obligations.

     

    
      	
              SECTION
      2.03

            	
              CAPITALIZATION

            

    

     

    (a)   There
are 125,000,000 shares of capital stock of WCRF authorized, consisting of
100,000,000 shares of common stock, $.001 par value per share (the “WCRF
Common Shares”), and 25,000,000 shares of preferred stock, $0.001 par
value per share (“WCRF
Preferred Shares”). As of the date of this Agreement, there are 555,013
WCRF Common Shares issued and outstanding, and no WCRF Preferred Shares
outstanding.

     

    (b)   No
WCRF Common Shares or WCRF Preferred Shares have been reserved for issuance to
any Person.   There are no contracts, commitments or agreements
relating to voting, purchase or sale of WCRF’s capital stock (i) between or
among WCRF and any of its stockholders and (ii) to the best of WCRF’s knowledge,
between or among any of WCRF’s stockholders.

     

    (c)   All
outstanding WCRF Common Shares are validly issued, fully paid, non-assessable,
not subject to pre-emptive rights and have been issued in compliance with all
state and federal securities laws or other Applicable Law.

     

    
      	
              SECTION
      2.04

            	
              AUTHORITY
      FOR AGREEMENT

            

    

     

    The
execution, delivery, and performance of this Agreement by each of WCRF and
Merger Sub has been duly authorized by all necessary corporate and shareholder
action, and this Agreement, upon its execution by the Parties, will constitute
the valid and binding obligation of each of WCRF and the Merger Sub, enforceable
against each of them in accordance with and subject to its terms, except as
enforceability may be affected by bankruptcy, insolvency or other laws of
general application affecting the enforcement of creditors' rights. The
execution and consummation of the transactions contemplated by this Agreement
and compliance with its provisions by WCRF and Merger Sub will not violate any
provision of Applicable Law and will not conflict with or result in any breach
of any of the terms, conditions, or provisions of, or constitute a default
under, WCRF's or Merger Sub’s Articles of Incorporation, or either of their
Bylaws, in each case as amended, or, in any material respect, any indenture,
lease, loan agreement or other agreement or instrument to which WCRF is a party
or by which it or any of its properties is bound, or any decree, judgment,
order, statute, rule or regulation applicable to WCRF or Merger
Sub.  No consent, approval, order or authorization of, or
registration, declaration or filing with, any court, administrative agency or
commission or other governmental authority or instrumentality (“Governmental
Entity”) is required by or with respect to WCRF or Merger Sub in
connection with the execution and delivery of this Agreement, or the
consummation of the transactions contemplated hereby and thereby, except for (i)
the filing of the Certificate of Merger as provided in Section 1.03;
(ii) such consents, approvals, orders, authorizations, registrations,
declarations and filings as may be required under applicable state securities
laws and the securities laws of any foreign country; (iii) such filings, if any,
as may be required under the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended (“HSR”);
and (iv) such other consents, authorizations, filings, approvals and
registrations which, if not obtained or made, would not have a Material Adverse
Effect on WCRF and would not prevent, or materially alter or delay any of the
transactions contemplated by this Agreement.

     

     

     

    
      
        
        

      

      
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              SECTION
      2.05

            	
              SEC
      DOCUMENTS; FINANCIAL CONDITION

            

    

     

    WCRF has
made available to Apollo a true and complete copy of each statement, report,
registration statement (with the prospectus in the form filed pursuant to Rule
424(b) of the Securities Act), definitive proxy statement, and other filings
filed with the SEC by WCRF since July 11, 2008, and, prior to the Effective
Time, WCRF will have furnished or made available to Apollo true and complete
copies of any additional documents filed with the SEC by WCRF prior to the
Effective Time (collectively, the “WCRF
SEC Documents”). WCRF has timely filed all forms, statements and
documents required to be filed by it with the SEC since July 11, 2008. In
addition, WCRF has made available to Apollo all exhibits to the WCRF SEC
Documents filed prior to the date hereof, and will promptly make available to
Apollo all exhibits to any additional WCRF SEC Documents filed prior to the
Effective Time. All documents required to be filed as exhibits to the WCRF SEC
Documents have been so filed, and all material contracts so filed as exhibits
are in full force and effect, except those that have expired in accordance with
their terms, and neither WCRF nor any of its subsidiaries is in material default
thereunder. As of their respective filing dates, the WCRF SEC Documents complied
in all material respects with the requirements of the Exchange Act and the
Securities Act, and none of the WCRF SEC Documents contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements made therein, in light of the
circumstances in which they were made, not misleading, except to the extent
corrected by a subsequently filed WCRF SEC Document. The financial statements of
WCRF, including the notes thereto, included in the WCRF SEC Documents (the
“WCRF
Financial Statements”) were complete and correct in all material respects
as of their respective dates, complied as to form in all material respects with
applicable accounting requirements and with the published rules and regulations
of the SEC with respect thereto as of their respective dates, and have been
prepared in accordance with GAAP applied on a basis consistent throughout the
periods indicated and consistent with each other (except as may be indicated in
the notes thereto or, in the case of unaudited statements included in Quarterly
Reports on Form 10-QSB, as permitted by Form 10-QSB of the SEC). The WCRF
Financial Statements fairly present the financial condition and operating
results of WCRF at the dates and during the periods indicated therein (subject,
in the case of unaudited statements, to normal, recurring year-end
adjustments).

     

    
      	
              SECTION
      2.06

            	
              SARBANES-OXLEY
      ACT OF 2002

            

    

     

     There
has been no change in WCRF accounting policies since June 30, 2008 except as
described in the notes to the WCRF Financial Statements. Each required form,
report and document containing financial statements that has been filed with or
submitted to the SEC since August 31, 2002, was accompanied by the
certifications required to be filed or submitted by WCRF’s chief executive
officer and chief financial officer pursuant to the Sarbanes-Oxley Act of 2002
(the “Sarbanes-Oxley
Act”), and at the time of filing or submission of each such
certification, such certification was true and accurate and materially complied
with the Sarbanes-Oxley Act and the rules and regulations promulgated
thereunder. Since June 30, 2008, neither WCRF nor, to the knowledge of the WCRF,
any director, officer, employee, auditor, accountant or representative of WCRF
or any of its subsidiaries has received or otherwise had or obtained knowledge
of any complaint, allegation, assertion or claim, whether written or oral,
regarding the accounting or auditing practices, procedures, methodologies or
methods of WCRF or their respective internal accounting controls, including any
complaint, allegation, assertion or claim that WCRF has engaged in questionable
accounting or auditing practices, except for (A) any complaint, allegation,
assertion or claim as has been resolved without any resulting change to WCRF’s
accounting or auditing practices, procedures methodologies or methods of WCRF or
its internal accounting controls and (b) questions regarding such matters raised
and resolved in the ordinary course in connection with the preparation and
review of WCRF’s financial statements and periodic reports. To the knowledge of
WCRF, no attorney representing WCRF, whether or not employed by WCRF, has
reported evidence of a material violation of securities laws, breach of
fiduciary duty or similar violation by WCRF or any of its officers, directors,
employees or agents to the Board of Directors of WCRF or any committee thereof
or to any director or officer of WCRF. To the knowledge of WCRF, no employee of
WCRF has provided or is providing information to any law enforcement agency
regarding the commission or possible commission of any crime or the violation or
possible violation of any applicable law.

     

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
 

    
      	
              SECTION
      2.07

            	
              ABSENCE
      OF CERTAIN CHANGES OR
EVENTS 

            

    

     

    Since
June 30, 2008,

     

    (a)   there
has not been any Material Adverse Change in the business, operations,
properties, assets, or condition of WCRF;

     

    (b)   WCRF
has not (i) amended its Articles of Incorporation; (ii) declared or made, or
agreed to declare or make, any payment of dividends or distributions of any
assets of any kind whatsoever to stockholders or exchanged or redeemed, or
agreed to exchange or redeem, any outstanding capital stock; (iii) made any
material change in its method of management, operation, or accounting; (iv)
entered into any material transaction; or (v) made any accrual or arrangement
for payment of bonuses or special compensation of any kind or any severance or
termination pay to any present or former officer or employee;

     

    (c)   WCRF
has not (i) borrowed or agreed to borrow any funds or incurred, or become
subject to, any material obligation or liability (absolute or contingent) except
liabilities incurred in the ordinary course of business; (ii) paid any material
obligation or liability (absolute or contingent) other than current liabilities
reflected in or shown on the most recent WCRF balance sheet, and current
liabilities incurred since that date in the ordinary course of business; (iii)
sold or transferred, or agreed to sell or transfer, any material assets,
properties, or rights, or canceled, or agreed to cancel, any material debts or
claims; or (iv) made or permitted any material amendment or termination of any
contract, agreement, or license to which it is a party.

     

    
      	
              SECTION
      2.08

            	
              ABSENCE
      OF UNDISCLOSED LIABILITIES

            

    

     

    WCRF has
no material obligations or liabilities of any nature (matured or unmatured,
fixed or contingent) other than (i) those set forth or adequately provided for
in the Balance Sheet included in WCRF’s Quarterly Report on Form 10-KSB for
the year ended June 30, 2008 (the “WCRF
Balance Sheet”), (ii) those incurred in the ordinary course of business
and not required to be set forth in the WCRF Balance Sheet under GAAP, (iii)
those incurred in the ordinary course of business since the WCRF Balance Sheet
date and not reasonably likely to have a Material Adverse Effect on WCRF, and
(iv) those incurred in connection with this Agreement.

     

    
      	
              SECTION
      2.09

            	
              GOVERNMENTAL
      AND THIRD PARTY CONSENTS

            

    

     

    No
consent, waiver, approval, order or authorization of, or registration,
declaration or filing with, any court, administrative agency or commission or
other federal, state, county, local or other foreign governmental authority,
instrumentality, agency or commission or any third party, including a party to
any agreement with WCRF or Merger Sub, is required by or with respect to WCRF or
Merger Sub in connection with the execution and delivery of this Agreement or
the consummation of the transactions contemplated hereby, except for such
consents, waivers, approvals, orders, authorizations, registrations,
declarations and filings as may be required under (i) applicable securities
laws, or (ii) the NGCL.

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
 

    
      	
              SECTION
      2.10

            	
              LITIGATION

            

    

     

    There is
no action, suit, investigation, audit or proceeding pending against, or to the
Knowledge of WCRF, threatened against or affecting WCRF or the Merger Sub or any
of their respective assets or properties before any court or arbitrator or any
governmental body, agency or official.  There is no injunction,
judgment, decree, order or regulatory restriction imposed upon WCRF or Merger
Sub or any of their respective assets or business, or, to the knowledge of WCRF
and Merger Sub, any of their respective directors or officers (in their
capacities as such), that would prevent, enjoin, alter or materially delay any
of the transactions contemplated by this Agreement, or that could reasonably be
expected to have a Material Adverse Effect on WCRF.

     

    
      	
              SECTION
      2.11

            	
              INTERESTED
      PARTY TRANSACTIONS

            

    

     

    Except as
disclosed in its SEC filings or on Schedule 2.11 hereto, WCRF is not indebted to
any officer or director of WCRF (except for amounts due as normal salaries and
bonuses and in reimbursement of ordinary expenses), and no such person is
indebted to WCRF, and there are no other transactions of the type required to be
disclosed pursuant to Items 402 or 404 of Regulation S-K under the Securities
Act and the Exchange Act.

     

    
      	
              SECTION
      2.12

            	
              COMPLIANCE
      WITH APPLICABLE LAWS

            

    

     

    To the
Knowledge of WCRF, the business of each of WCRF and the Merger Sub has not been,
and is not being, conducted in violation of any Applicable Law.

     

    
      	
              SECTION
      2.13

            	
              TAX
      RETURNS AND PAYMENT

            

    

     

    WCRF has
duly and timely filed all material Tax Returns required to be filed by it and
has duly and timely paid all Taxes shown thereon to be due. There is no claim
for Taxes that is a Lien against the property of WCRF other than Liens for Taxes
not yet due and payable. WCRF has not received written notification of any audit
of any Tax Return of WCRF being conducted or pending by a Tax authority, no
extension or waiver of the statute of limitations on the assessment of any Taxes
has been granted by WCRF which is currently in effect, and WCRF is not a party
to any agreement, contract or arrangement with any Tax authority or otherwise,
which may result in the payment of any material amount in excess of the amount
reflected on the above referenced WCRF Financial Statements.

     

    
      	
              SECTION
      2.14

            	
              SECURITY
      LISTING

            

    

     

    WCRF is a
fully compliant reporting company under the Securities Exchange Act of 1934, as
amended (the “Exchange
Act”), and all WCRF public filings required under the Exchange Act have
been made. The common stock of WCRF is listed for quotation on the OTC Bulletin
Board. To the Knowledge of WCRF, WCRF has not been threatened or is not subject
to removal of its common stock from the OTC Bulletin Board.

     

    
      	
              SECTION
      2.15

            	
              FINDERS’
      FEES

            

    

     

    WCRF has
not incurred, nor will it incur, directly or indirectly, any liability for
brokers’ or finders’ fees or agents’ commissions or investment bankers’ fees or
any similar charges in connection with this Agreement or any transaction
contemplated hereby.

     

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
 

    
      	
              SECTION
      2.16

            	
              MINUTE
      BOOKS

            

    

     

    The
minute books of WCRF made available to Apollo contain in all material respects a
complete and accurate summary of all meetings of directors and stockholders or
actions by written consent of WCRF during the past three years and through the
date of this Agreement, and reflect all transactions referred to in such minutes
accurately in all material respects.

     

    
      	
              SECTION
      2.17

            	
              VOTE
      REQUIRED

            

    

     

    The
approval of WCRF’s Board of Directors and the affirmative vote of WCRF as sole
stockholder of Merger Sub are the only approvals or votes necessary to approve
this Agreement and the transactions contemplated hereby on behalf of such
entities.

     

    
      	
              SECTION
      2.18

            	
              BOARD
      APPOVAL

            

    

     

    The Board
of Directors of WCRF has (i) approved this Agreement and the Merger, and (ii)
approved the issuance of the Merger Shares pursuant to Section 1.01. The Board
of Directors of Merger Sub has approved this Agreement and the Merger, and
recommended that the sole stockholder of Merger Sub approve this Agreement and
the Merger.

     

    
      	
              SECTION
      2.19

            	
              EMPLOYEE
      BENEFIT PLANS

            

    

     

    Except as
disclosed in the WCRF SEC Documents, there are no Benefit Plans maintained by
WCRF covering only WCRF executive officers. Each Benefit Plan maintained by WCRF
has been operated and administered in accordance with its terms and applicable
law, except where failure to do so would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect on WCRF. The execution
of this Agreement and the consummation of the Merger will not constitute an
event under any Benefit Plan maintained by WCRF that will or may result in any
payment, acceleration, termination, forgiveness of indebtedness, vesting,
distribution, increase in compensation or benefits or obligation to fund
benefits with respect to any WCRF employee with such exceptions which,
individually or in the aggregate, would not reasonably be expected to have a
Material Adverse Effect on WCRF.

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

     

    ARTICLE
III

    REPRESENTATIONS
AND WARRANTIES OF APOLLO

     

    Apollo
hereby represents and warrants to WCRF and to Merger Sub, as of the date of this
Agreement, as of the Closing Date and as of the Effective Time (except as
otherwise indicated, and except in each case as disclosed in the Apollo
disclosure letter delivered as of the date hereof), as follows:

     

    
      	
              SECTION
      3.01

            	
              ORGANIZATION,
      STANDING AND POWER

            

    

     

    Apollo is
a privately held corporation duly incorporated, validly existing and in good
standing under the laws of the State of Delaware, and has full corporate power
and authority to conduct its business as presently conducted by it and to enter
into and perform this Agreement and to carry out the transactions contemplated
by this Agreement. Apollo is duly qualified to do business as a foreign
corporation in each state in which the nature of the business conducted by it or
the character or location of the properties and assets owned or leased by it
make such qualification necessary. Each of Apollo and its subsidiaries has the
power to own its properties and to carry on its business as now being conducted
and as presently proposed to be conducted and is duly authorized and qualified
to do business and is in good standing in each jurisdiction in which the failure
to be so qualified and in good standing would have a Material Adverse Effect on
Apollo. Apollo has delivered or made available to WCRF a true and correct copy
of the Certificate of Incorporation (the “Certificate
of Incorporation”), and the Bylaws, or other charter documents, as
applicable, of Apollo and its subsidiaries, each as amended to date. Neither
Apollo nor its subsidiaries is in violation of any of the provisions of its
respective charter or bylaws or equivalent organization documents. There are no
outstanding subscriptions, options, warrants, puts, calls, rights, exchangeable
or convertible securities or other commitments or agreements of any character
relating to the issued or unissued capital stock or other securities of Merger
Sub, or otherwise obligating Apollo or its subsidiaries to issue, transfer,
sell, purchase, redeem or otherwise acquire any such securities. Apollo does not
directly or indirectly own any equity or similar interest in, or any interest
convertible or exchangeable or exercisable for, any equity or similar interest
in, any corporation, partnership, joint venture or other business association or
entity.

     

    
      	
              SECTION
      3.02

            	
              CAPITALIZATION

            

    

     

    There are
100,000,000 shares of Apollo capital stock authorized, consisting of 100,000,000
shares of common stock with $0.0001 par value (the “Apollo
Common Shares”). As of the date of this Agreement, there are 4,300 issued
and outstanding Apollo Common Shares. No Apollo Common Shares have been reserved
for issuance to any Person, and there are no outstanding rights, warrants,
options or agreements for the exchange of Apollo Common Shares. There are no
contracts, commitments or agreements relating to voting, purchase or sale of
Apollo’s capital stock (i) between or among Apollo and any of its stockholders
and (ii) to the best of Apollo’s Knowledge, between or among any of Apollo’s
stockholders. No Person is entitled to any rights with respect to the
conversion, exchange or delivery of the Apollo Common Shares. The Apollo Common
Shares have been issued in compliance with Applicable Law.

     

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
 

    
      	
              SECTION
      3.03

            	
              AUTHORITY
      FOR AGREEMENT

            

    

     

    The
execution, delivery and performance of this Agreement by Apollo has been duly
authorized by all necessary corporate action, and this Agreement constitutes the
valid and binding obligation of Apollo, enforceable against Apollo in accordance
with its terms, except as enforceability may be affected by bankruptcy,
insolvency or other laws of general application affecting the enforcement of
creditors' rights. The execution and consummation of the transactions
contemplated by this Agreement and compliance with its provisions by Apollo will
not violate any provision of Applicable Law and will not conflict with or result
in any breach of any of the terms, conditions, or provisions of, or constitute a
default under, Apollo’s Certificate of Incorporation or Bylaws, in each case as
amended, or, to the Knowledge of Apollo, in any material respect, any indenture,
lease, loan agreement or other agreement instrument to which Apollo is a party
or by which it or any of its properties are bound, or any decree, judgment,
order, statute, rule or regulation applicable to Apollo.   No
consent, approval, order or authorization of, or registration, declaration or
filing with, any court, administrative agency or commission or other
Governmental Entity is required by or with respect to Apollo in connection with
the execution and delivery of this Agreement, or the consummation of the
transactions contemplated hereby and thereby, except for (i) the filing of the
Certificate of Merger as provided in Section 1.03; (ii) such consents,
approvals, orders, authorizations, registrations, declarations and filings as
may be required under applicable state securities laws and the securities laws
of any foreign country; (iii) such filings, if any, as may be required under the
HSR and (iv) such other consents, authorizations, filings, approvals and
registrations which, if not obtained or made, would not have a Material Adverse
Effect on Apollo and would not prevent, or materially alter or delay any of the
transactions contemplated by this Agreement.

     

    
      	
              SECTION
      3.04

            	
              GOVERNMENTAL
      OR THIRD PARTY CONSENT

            

    

     

    No
consent, waiver, approval, order or authorization of, or registration,
declaration or filing with, any court, administrative agency or commission or
other federal, state, county, local or other foreign governmental authority,
instrumentality, agency or commission or any third party, including a party to
any agreement with Apollo, is required by or with respect to Apollo in
connection with the execution and delivery of this Agreement or the consummation
of the transactions contemplated hereby, except for such consents, waivers,
approvals, orders, authorizations, registrations, declarations and filings as
may be required under (i) applicable securities laws, or (ii) the
DGCL.

     

    
      	
              SECTION
      3.05

            	
              BUSINESS
      OPERATIONS AND LIABILITIES -
      APOLLO.

            

    

     

    Apollo
has conducted no business operations other than the acquisition of ownership of
the capital stock of Sichuan Apollo. Apollo has 26,60 RMB promissory Note
liabilities on the Closing Date.

     

    
      	
              SECTION
      3.06.

            	
              ORGANIZATION
      AND STANDING – SUBSIDIARIES

            

    

     

    Sichuan
Apollo is a corporation duly organized, validly existing and in good standing
under the laws of the People’s Republic of China. Sichuan
Apollo has full power and authority to carry on its business as now conducted
and to own and operate its assets, properties and
business.

     

    
      	
              SECTION
      3.07

            	
              OWNERSHIP
      OF
SUBSIDIARIES. 

            

    

     

    Apollo is
the owner of one hundred percent (100%) the registered capital stock of Sichuan
Apollo, free and clear of all Liens, encumbrances, and restrictions whatsoever.
No Person other than Apollo has any equity interest in the registered capital of
Sichuan Apollo, whether by tender of consideration or
otherwise.

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
 

    
      	
              SECTION
      3.08.

            	
              CORPORATE
      RECORDS. 

            

    

     

    All of
the books and records of each of the Acquired Entities including, without
limitation, its books of account, corporate records, minute book, stock
certificate books and other records are up-to-date, complete and reflect
accurately and fairly the conduct of its business in all material respects since
its date of incorporation. All reports, returns and statements currently
required to be filed by any of the Acquired Entities with any government agency
with respect to its business and operations have been filed or valid extensions
have been obtained in accordance with normal procedures and all governmental
reporting requirements have been complied with.

     

    
      	
              SECTION
      3.09

            	
              FINANCIAL
      STATEMENTS – APOLLO

            

    

     

    The
financial statements of Apollo for the year ended June 30, 2008 that will be
delivered to WCRF prior to the Closing will have been prepared in accordance
with accounting principles generally accepted in the United States and will
fairly present the financial condition of Apollo at the date presented and the
results of operations of Apollo for the period presented.  The
financial statements shall be accompanied by an audit opinion rendered by an
independent accountant registered with the PCAOB.

     

    
      	
              SECTION
      3.10

            	
              FINANCIAL
      STATEMENTS - SICHUAN APOLLO

            

    

     

    The
financial statements of Sichuan Apollo for the year ended June 30, 2008 that
will be delivered to WCRF prior to the Closing will have been prepared in
accordance with accounting principles generally accepted in the United States
and will fairly present the financial condition of Sichuan Apollo at the dates
presented and the results of operations of Sichuan Apollo for the periods
presented.  The financial statements for the year ended June 30, 2008
shall be accompanied by an audit opinion rendered by an independent accountant
registered with the PCAOB.

     

    
      	
              SECTION
      3.11

            	
              TAXES.

            

    

     

    Each of
the Acquired Entities has filed all Tax Returns that it is required to file with
all governmental agencies, wherever situate, and has paid or accrued for payment
all Taxes as shown on such returns except for Taxes being contested in good
faith. There is no material claim for Taxes that is a Lien against the property
of any of the Acquired Entities other than Liens for Taxes not yet due and
payable. All Taxes due and owing by any of the Acquired Entities have been paid.
None of the Acquired Entities is the beneficiary of any extension of time within
which to file any tax return.

     

    
      	
              SECTION
      3.12

            	
              PENDING
      ACTIONS. 

            

    

     

    There are
no material legal actions, lawsuits, proceedings or investigations, either
administrative or judicial, pending or threatened, against or affecting any of
the Acquired Entities, or against their Officers or Directors that arose out of
their operation of any of the Acquired Entities.  None of the Acquired
Entities nor any of their Officers or Directors is subject to any order, writ,
judgment, injunction, decree, determination or award of any court, arbitrator or
administrative, governmental or regulatory authority or body which would be
likely to have a Material Adverse Effect on the business of any of the Acquired
Entities.   There is no injunction, judgment, decree, order or
regulatory restriction imposed upon Apollo or any of the Acquired Entities or
any of their respective assets or business, or, to the knowledge of Apollo, any
of its respective directors or officers (in their capacities as such), that
would prevent, enjoin, alter or materially delay any of the transactions
contemplated by this Agreement, or that could reasonably be expected to have a
Material Adverse Effect on Apollo or any of the Acquired Entities.

     

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
 

    
      	
              SECTION
      3.12

            	
              INTELLECTUAL
      PROPERTY AND INTANGIBLE ASSETS.

            

    

     

    To the
Knowledge of Apollo, Sichuan Apollo has full legal right, title and interest in
and to all of the intellectual property utilized in the operation of its
business. Sichuan Apollo has not received any written notice that the rights of
any other person are violated by the use by Sichuan Apollo of the intellectual
property. None of the intellectual property has ever been declared invalid or
unenforceable, or is the subject of any pending or, to the Knowledge of Apollo,
threatened action for opposition, cancellation, declaration, infringement, or
invalidity, unenforceability or misappropriation or like claim, action or
proceeding.

     

    
      	
              SECTION
      3.13.

            	
              COMPLIANCE
      WITH LAWS.

            

    

     

    Sichuan
Apollo’s operations have been conducted in all material respects in accordance
with all applicable statutes, laws, rules and regulations. Sichuan Apollo is not
in violation of any law, ordinance or regulation of the People’s Republic of
China or of any other jurisdiction. Sichuan Apollo holds all the environmental,
health and safety and other permits, licenses, authorizations, certificates and
approvals of governmental authorities (collectively, "Permits") necessary or
proper for the current use, occupancy or operation of its business, and all of
the Permits are now in full force and effect.

     

    
      	
              SECTION
      3.14

            	
              FINDERS’
      FEES

            

    

     

    Neither
Apollo nor Sichuan Apollo has incurred, nor will it incur, directly or
indirectly, any liability for brokers’ or finders’ fees or agents’ commissions
or investment bankers’ fees or any similar charges in connection with this
Agreement or any transaction contemplated hereby.

     

    
      	
              SECTION
      3.15

            	
              MINUTE
      BOOKS

            

    

     

    The
minute books of Apollo and the Acquired Entities made available to WCRF contain
in all material respects a complete and accurate summary of all meetings of
directors and stockholders or actions by written consent of Apollo and the
Acquired Entities during the past three years and through the date of this
Agreement, and reflect all transactions referred to in such minutes accurately
in all material respects.

     

    
      	
              SECTION
      3.16

            	
              VOTE
      REQUIRED

            

    

     

    The
approval of Apollo’s Board of Directors and the affirmative vote of a majority
of the stockholders of Apollo are the only approvals or votes necessary to
approve this Agreement and the transactions contemplated hereby on behalf of
Apollo.

     

    
      	
              SECTION
      3.17

            	
              BOARD
      APPOVAL

            

    

     

    The Board
of Directors of Apollo has (i) approved this Agreement and the Merger, and (ii)
approved the exchange of the Apollo Shares pursuant to Section
1.01.

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    ARTICLE
IV

    CERTAIN
COVENANTS AND AGREEMENTS

     

    
      	
              SECTION
      4.01

            	
              COVENANTS
      OF APOLLO

            

    

     

    Apollo
covenants and agrees that, during the period from the date of this Agreement
until the Closing Date, other than as contemplated by this Agreement or for the
purposes of effecting the Closing pursuant to this Agreement, Apollo shall
conduct and shall cause Sichuan Apollo to conduct its business as presently
operated and solely in the ordinary course, and consistent with such operation,
and, in connection therewith, without the written consent of WCRF, none of the
Acquired Entities shall:

     

    
      	 
      	
              (a)

            	
              Amend
      its Certificate of Incorporation or
Bylaws;

            

    

     

    
      	 
      	
              (b)

            	
              pay
      or agree to pay to any employee, officer or director compensation that is
      in excess of the current compensation level of such employee, officer or
      director other than salary increases or payments made in the ordinary
      course of business or as otherwise provided in any contracts or agreements
      with any such employees;

            

    

     

    
      	 
      	
              (c)

            	
              merge
      or consolidate with any other entity or acquire or agree to acquire any
      other entity;

            

    

     

    
      	 
      	
              (d)

            	
              sell,
      transfer, or otherwise dispose of any material assets required for the
      operations of Apollo’s or Sichuan Apollo’s business, except in the
      ordinary course of business consistent with past
  practices;

            

    

     

    
      	 
      	
              (e)

            	
              declare
      or pay any dividends on or make any distribution of any kind with respect
      to the Apollo Shares (provided that the Sichuan Apollo may pay dividends
      or distributions of any kind to Apollo);
and

            

    

     

    
      	 
      	
              (f)

            	
              use
      commercially reasonable efforts to comply with and not be in default or
      violation under any known law, regulation, decree or order applicable to
      Apollo’s or Sichuan Apollo’s business, operations or assets where such
      violation would have a Material Adverse Effect on Apollo or Sichuan
      Apollo.

            

    

     

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    
 

    
      	
              SECTION
      4.02

            	
              COVENANTS
      OF WCRF

            

    

     

    WCRF
covenants and agrees that, during the period from the date of this Agreement
until the Closing Date, WCRF shall, other than as contemplated by this Agreement
or for the purposes of effecting the Closing pursuant to this Agreement, conduct
its business as presently operated and solely in the ordinary course, and
consistent with such operation, and, in connection therewith, without the
written consent of Apollo shall not:

     

    
      	 
      	
              (a)

            	
              amend
      its Articles of Incorporation or
Bylaws;

            

    

     

    
      	 
      	
              (b)

            	
              pay
      or agree to pay to any employee, officer or director compensation of any
      kind or amount;

            

    

     

    
      	 
      	
              (c)

            	
              merge
      or consolidate with any other entity or acquire or agree to acquire any
      other entity;

            

    

     

    
      	 
      	
              (d)

            	
              create,
      incur, assume, or guarantee any material indebtedness for money borrowed
      except in the ordinary course of business, or create or suffer to exist
      any mortgage, Lien or other encumbrance on any of its material
      assets;

            

    

     

    
      	 
      	
              (e)

            	
              make
      any material capital expenditure or series of capital expenditures except
      in the ordinary course of business;

            

    

     

    
      	 
      	
              (f)

            	
              declare
      or pay any dividends on or make any distribution of any kind with respect
      to WCRF;

            

    

     

    
      	 
      	
              (g)

            	
              issue
      any additional shares of WCRF capital stock or take any action affecting
      the capitalization of WCRF or the WCRF Common Shares;
  and

            

    

     

    
      	 
      	
              (h)

            	
              grant
      any severance or termination pay to any director, officer or any other
      employees of WCRF.

            

    

     

    
      	
              SECTION
      4.03

            	
              COVENANTS
      OF THE PARTIES

            

    

     

    (a)   Tax-free
Reorganization. The Parties intend that the Merger qualify as a Tax-free
“reorganization” under Sections 368(a) of the Code, as amended, and the Parties
will take the position for all purposes that the Merger shall qualify as a
reorganization under such Section. In addition, the Parties covenant and agree
that they will not engage in any action, or fail to take any action, which
action or failure to take action would reasonably be expected to cause the
Merger to fail to qualify as a Tax-free “reorganization” under Section 368(a) of
the Code, whether or not otherwise permitted by the provisions of this
Agreement.

     

    (b)   Announcement.
Neither Apollo, on the one hand, nor WCRF on the other hand, shall issue any
press release or otherwise make any public statement with respect to this
Agreement or the transactions contemplated hereby without the prior consent of
the other Party (which consent shall not be unreasonably withheld), except as
may be required by applicable law or securities regulation. Upon execution of
this Agreement, WCRF shall issue a press release, which shall be approved by
Apollo, and file a Current Report on Form 8-K reporting the execution of the
Agreement.

     

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    
 

    (c)   Notification
of Certain Matters. Apollo shall give prompt written notice to WCRF, and
WCRF shall give prompt written notice to Apollo, of:

     

    (i)   The
occurrence or nonoccurrence of any event the occurrence or nonoccurrence of
which would be reasonably likely to cause any representation or warranty
contained in this Agreement to be untrue or inaccurate in any material respect
at or prior to the Effective Time; and

     

    (ii)   Any
material failure of Apollo, on the one hand, or WCRF, on the other hand, to
comply with or satisfy any covenant, condition or agreement to be complied with
or satisfied by it hereunder.

     

    (d)   Reasonable
Best Efforts. Before Closing, upon the terms and subject to the
conditions of this Agreement, the Parties agree to use their respective
reasonable best efforts to take, or cause to be taken, all actions, and to do,
or cause to be done, all things necessary, proper or advisable (subject to
applicable laws) to consummate and make effective the Merger and other
transactions contemplated by this Agreement as promptly as practicable
including, but not limited to:

     

    (i)   The
preparation and filing of all forms, registrations and notices required to be
filed to consummate the Merger, including without limitation, any approvals,
consents, orders, exemptions or waivers by any third party or governmental
entity; and

     

    (ii)   The
satisfaction of the Party's conditions precedent to Closing.

     

    (e)   Access
to Information 

     

    (i)   Inspection
by Apollo. WCRF will make available for inspection by Apollo, during
normal business hours and in a manner so as not to interfere with normal
business operations, all of WCRF’s records (including tax records), books of
account, premises, contracts and all other documents in WCRF’s possession or
control that are reasonably requested by Apollo to inspect and examine the
business and affairs of WCRF. WCRF will cause its managerial employees and
regular independent accountants to be available upon reasonable advance notice
to answer questions of Apollo concerning the business and affairs of WCRF.
Apollo will treat and hold as confidential any information it receives from WCRF
in the course of the reviews contemplated by this Section 4.03(e). No
examination by Apollo will, however, constitute a waiver or relinquishment by
Apollo of its rights to rely on WCRF’s covenants, representations and warranties
made herein or pursuant hereto.

     

    (ii)   Inspection
by WCRF. Apollo will, if requested, make available for inspection by
WCRF, during normal business hours and in a manner so as not to interfere with
normal business operations, all of the Acquired Entities’ records (including tax
records), books of account, premises, contracts and all other documents in
Apollo’s possession or control that are reasonably requested by WCRF to inspect
and examine the business and affairs of the Acquired Entities. Apollo will cause
its managerial employees and regular independent accountants to be available
upon reasonable advance notice to answer questions of WCRF concerning the
business and affairs of the Acquired Entities. WCRF will treat and hold as
confidential any information it receives from Apollo in the course of the
reviews contemplated by this Section 4.03(e). No examination by WCRF will,
however, constitute a waiver or relinquishment by WCRF of its rights to rely on
Apollo’s covenants, representations and warranties made herein or pursuant
hereto.

     

    (f)           WCRF
Board of Directors. As promptly as possible after the Effective Time of
the Merger or in accordance with applicable law, all of the officers and members
of the board of directors of WCRF shall tender their resignations as officers
and directors of WCRF, and the vacancies created on the WCRF board of directors
shall be filled by persons designated by the Board of Directors of
Apollo.

     

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    
 

    ARTICLE
V

    CONDITIONS
PRECEDENT

     

    
      	
              SECTION
      5.01

            	
              CONDITIONS
      PRECEDENT TO THE PARTIES'
OBLIGATIONS

            

    

     

    The
obligations of the Parties as provided herein shall be subject to each of the
following conditions precedent, unless waived in writing by both WCRF and
Apollo:

     

    (a)   Consents,
Approvals. The Parties shall have obtained all necessary consents and
approvals of their respective boards of directors, and all consents, approvals,
permits and authorizations required under their respective charter documents,
and, except as set forth on Schedule 5.01(a), all consents, including any
material consents and waivers by the Parties’ respective lenders and other
third-parties, if necessary, to the consummation of the transactions
contemplated by this Agreement.

     

    (b)   Shareholder
Approval. This Agreement and the transactions contemplated hereby shall
have been approved by the shareholders of Apollo in accordance with the
applicable provisions of the DGCL and its bylaws.

     

    (c)   Absence
of Certain Litigation. No action or proceeding shall be threatened or
pending before any governmental entity or authority which is likely to result
(i) in a restraint, prohibition or the obtaining of damages or other relief in
connection with this Agreement or the consummation of the transactions
contemplated hereby, or (ii) in limiting or restricting Apollo or WCRF’s conduct
or operation of the business of Apollo or WCRF or any of their subsidiaries,
following the Merger.

     

    
      	
              SECTION
      5.02

            	
              CONDITIONS
      PRECEDENT TO THE OBLIGATIONS OF
WCRF

            

    

     

    The
obligations of WCRF on the Closing Date as provided herein shall be subject to
the satisfaction, on or prior to the Closing Date, of the following conditions
precedent, unless waived in writing by WCRF:

     

    (a)   Consents
and Approvals. Apollo shall have obtained all material consents,
including any material consents and waivers by Apollo's lenders and other third
parties, if necessary, to the consummation of the transactions contemplated by
this Agreement.

     

    (b)   Representations
and Warranties. The representations and warranties by Apollo in Article
III herein shall be true and accurate in all material respects on and as of the
Closing Date with the same force and effect as though such representations and
warranties had been made at and as of the Closing Date, except to the extent
that any changes therein are specifically contemplated by this
Agreement.

     

    (c)   Performance.
Apollo shall have performed and complied in all material respects with all
agreements to be performed or complied with by it pursuant to this Agreement at
or prior to the Closing.

     

    (d)   Proceedings
and Documents. All corporate, company and other proceedings in connection
with the transactions contemplated by this Agreement and all documents and
instruments incident to such transactions shall be reasonably satisfactory in
substance and form to WCRF and its counsel, and WCRF and its counsel shall have
received all such counterpart originals (or certified or other copies) of such
documents as they may reasonably request.

     

    (e)   Certificate
of Good Standing. Apollo shall have delivered to WCRF a certificate as to
the good standing of Apollo certified by the Secretary of State of the State of
Delaware on or within five (5) business days prior to the Closing
Date.

     

    (f)   Material
Changes. Except as contemplated by this Agreement, since the date hereof,
none of the Acquired Entities shall have suffered a Material Adverse Effect,
and, without limiting the generality of the foregoing, there shall be no pending
litigation to which any of the Acquired Entities is a party which is reasonably
likely to have a Material Adverse Effect on any of the Acquired
Entities.

     

     

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    
 

    (g)   Due
Diligence. WCRF shall have satisfactorily completed its due diligence
investigation of Apollo; provided,
however, that this Section 5.02(g) shall cease to be a condition precedent to
the Merger unless on or prior to August 13, 2008 
WCRF shall have delivered a written notice to Apollo stating that it is not
satisfied with the results of its due diligence.

     

    (h)   SEC
Filing. No less than one week prior to the Closing, Apollo shall have
delivered to WCRF the financial statements, report of Apollo’s independent
registered public accountant, and other information required for inclusion in
the Current Report that WCRF will file with the SEC within four business days
after the Closing.

     

    (i)    Certificate
of Apollo.  WCRF shall have been provided with a certificate
executed on behalf of Apollo by its President and Chief Financial Officer
certifying that the condition set forth in Section 5.02(b) shall have been
fulfilled.

     

    
      	
              SECTION
      5.03

            	
              CONDITIONS
      PRECEDENT TO THE OBLIGATIONS OF
APOLLO

            

    

     

    The
obligations of Apollo on the Closing Date as provided herein shall be subject to
the satisfaction, on or prior to the Closing Date, of the following conditions
precedent, unless waived in writing by Apollo:

     

    (a)   Consents
and Approvals. WCRF and the Merger Sub shall have obtained all material
consents, including any material consents and waivers of its respective lenders
and other third parties, if necessary, to the consummation of the transactions
contemplated by this Agreement.

     

    (b)   Representations
and Warranties. The representations and warranties by WCRF and Merger Sub
in Article II herein shall be true and accurate in all material respects on and
as of the Closing Date with the same force and effect as though such
representations and warranties had been made at and as of the Closing Date,
except to the extent that any changes therein are specifically contemplated by
this Agreement.

     

    (c)   Performance.
Each of WCRF and Merger Sub shall have performed and complied in all material
respects with all agreements to be performed or complied with by it pursuant to
this Agreement prior to or at the Closing.

     

    (d)   Proceedings
and Documents. All corporate, company and other proceedings in connection
with the transactions contemplated by this Agreement and all documents and
instruments incident to such transactions shall be reasonably satisfactory in
substance and form to Apollo and its counsel, and Apollo and its counsel shall
have received all such counterpart originals (or certified or other copies) of
such documents as they may reasonably request.

     

    (e)   Certificates
of Good Standing. WCRF shall have delivered to Apollo a certificate as to
its and the Merger Sub’s good standing in the State of Nevada, in each case
certified by the Secretary of State not more than five (5) business days prior
to the Closing Date.

     

    (f)   Material
Changes. Except as contemplated by this Agreement, since the date hereof,
neither WCRF nor the Merger Sub shall have suffered a Material Adverse Effect
and, without limiting the generality of the foregoing, there shall be no pending
litigation to which WCRF or the Merger Sub is a party which is reasonably likely
to have a Material Adverse Effect on WCRF or the Merger Sub.

     

    (g)   Due
Diligence. Apollo shall have satisfactorily completed its due
diligence investigation of WCRF; provided,
however, that this Section 5 .03(g) shall cease to be a condition precedent to
the Merger unless on or prior to August 13, 2008 Apollo shall have delivered a
written notice to WCRF stating that it is not satisfied with the results of its
due diligence.

     

    (h)   Status
of WCRF. As at the Effective Time of the Merger, WCRF (i) shall be a
fully compliant reporting public company under the Exchange Act, and shall be
current in all of its reports required to be filed under the Exchange Act, (ii)
shall not have been threatened or subject to delisting from the OTC Bulletin
Board, and (iii) shall have outstanding 555,013 WCRF Common Shares; and there
shall be no other WCRF Common Shares outstanding nor, except as provided
hereunder, any options, warrants or rights to acquire capital stock of WCRF
whether for additional consideration or on conversion.

     

    (i)   Certificate
of WCRF.  Apollo shall have been provided with a certificate
executed on behalf of WCRF by its President and Chief Financial Officer
certifying that the condition set forth in Section 5.03(b) shall have been
fulfilled.

     

     

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    
 

    ARTICLE
VI

    TERMINATION

     

    
      	
              SECTION
      6.01

            	
              TERMINATION

            

    

     

    This
Agreement may be terminated and the Merger may be abandoned at any time prior to
the Effective Time by:

     

    (a)   The
mutual written consent of the Boards of Directors of WCRF and
Apollo;

     

    (b)   Either
WCRF, on the one hand, or Apollo, on the other hand, if any governmental entity
or court of competent jurisdiction shall have issued an order, decree or ruling
or taken any other action (which order, decree, ruling or other action the
Parties shall use their commercially reasonable best efforts to lift), which
restrains, enjoins or otherwise prohibits the Merger or the issuance of the
Merger Shares as contemplated herein and such order, decree, ruling or other
action shall have become final and non-appealable;

     

    (c)   WCRF,
if Apollo shall have breached in any material respect any of its
representations, warranties, covenants or other agreements contained in this
Agreement, and the breach cannot be or has not been cured within thirty (30)
calendar days after the giving of written notice by WCRF to Apollo, or by WCRF,
if it is not satisfied with the results of its due diligence investigation and
it so notifies Apollo on or before August 13, 2008;

     

    (d)   Apollo,
if WCRF shall have breached in any material respect any of its representations,
warranties, covenants or other agreements contained in this Agreement, and the
breach cannot be or has not been cured within thirty (30) calendar days after
the giving of written notice by Apollo to WCRF, or by Apollo if it is not
satisfied with the results of its due diligence investigation and it so notifies
WCRF on or before August 13, 2008; or

     

    (e)   Without
any action on the part of the Parties if required by Applicable Law or if the
Closing shall not be consummated by August 31, 2008, unless extended by written
agreement of WCRF and Apollo.

     

    
      	
              SECTION
      6.02

            	
              EFFECT
      OF TERMINATION

            

    

     

    If this
Agreement is terminated as provided in Section 6.01, written notice of such
termination shall be given by the terminating Party to the other Party
specifying the provision of this Agreement pursuant to which such termination is
made, this Agreement shall become null and void and there shall be no liability
on the part of WCRF or Apollo, provided,
however, that (a) the provisions of Article VII hereof shall survive the
termination of this Agreement; (b) nothing in this Agreement shall relieve any
Party from any liability or obligation with respect to any willful breach of
this Agreement; and (c) termination shall not affect accrued rights or
liabilities of any party at the time of such termination.

     

    ARTICLE
VII

    CONFIDENTIALITY

     

    
      	
              SECTION
      7.01

            	
              CONFIDENTIALITY

            

    

     

    WCRF, on
the one hand, and Apollo, on the other hand, will keep confidential all
information and documents obtained from the other, including but not limited to
any information or documents provided pursuant to Section 4.03(e) hereof (except
for any information disclosed to the public pursuant to a press release
authorized by the Parties); and in the event the Closing does not occur or this
Agreement is terminated for any reason, will promptly return such documents and
all copies of such documents and all notes and other evidence thereof, including
material stored on a computer, and will not use such information for its own
advantage, except to the extent that (i) the information must be disclosed by
law, (ii) the information becomes publicly available by reason other than
disclosure by the Party subject to the confidentiality obligation, (iii) the
information is independently developed without use of or reference to the other
Party’s confidential information, (iv) the information is obtained from another
source not obligated to keep such information confidential, or (v) the
information is already publicly known or known to the receiving Party when
disclosed as demonstrated by written documentation in the possession of such
Party at such time.

     

     

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    
 

    ARTICLE
VIII

    INDEMNIFICATION

     

    
      	
              SECTION
      8.01

            	
              INDEMNIFICATION
      BY WCRF

            

    

     

    WCRF
agrees to indemnify, defend and hold harmless each of Apollo, any subsidiary or
affiliate thereof and each person who is now, or has been at any time prior to
the date hereof or who becomes prior to the Closing, a shareholder, officer,
director or partner of Apollo, any subsidiary or affiliate thereof or an
employee of Apollo, any subsidiary or affiliate thereof and their respective
heirs, legal representatives, successors and assigns (the “Apollo
Indemnified Parties”) against all losses, claims, damages, costs,
expenses (including reasonable attorneys’ fees), liabilities or judgments or
amounts that are paid in settlement of or in connection with any threatened or
actual third party claim, action, suit, proceeding or investigation based in
whole or in part on or arising in whole or in part out of (i) any material
breach of this Agreement by WCRF, or any subsidiary or affiliate thereof,
including but not limited to failure of any representation or warranty to be
true and correct at or before the Closing, or (ii) any willful or grossly
negligent act, omission or conduct of any officer, director or agent of WCRF or
any subsidiary or affiliate thereof prior to the Closing, whether asserted or
claimed prior to, at or after, the Closing. Any Apollo Indemnified Party wishing
to claim indemnification under this Section 8.01, upon learning of any such
claim, action, suit, proceeding or investigation, shall notify WCRF in writing,
but the failure to so notify shall not relieve WCRF from any liability that it
may have under this Section 8.01, except to the extent that such failure would
materially prejudice WCRF.

     

    
      	
              SECTION
      8.02

            	
              INDEMNIFICATION
      BY APOLLO

            

    

     

    Apollo
shall indemnify, defend and hold harmless each of WCRF, any subsidiary or
affiliate thereof and each person who is now, or has been at any time prior to
the date hereof or who becomes prior to the Closing, a shareholder, officer,
director or partner of WCRF, any subsidiary or affiliate thereof or an employee
of WCRF, any subsidiary or affiliate thereof and their respective heirs, legal
representatives, successors and assigns (the “WCRF
Indemnified Parties”) against all losses, claims, damages, costs,
expenses (including reasonable attorneys’ fees), liabilities or judgments or
amounts that are paid in settlement of or in connection with any threatened or
actual third party claim, action, suit, proceeding or investigation based in
whole or in part on or arising in whole or in part out of (i) any material
breach of this Agreement by Apollo or any subsidiary or affiliate thereof,
including but not limited to failure of any representation or warranty to be
true and correct at or before the Closing, or (ii) any willful or negligent act,
omission or conduct of any officer, director or agent of Apollo or any
subsidiary or affiliate thereof prior to the Closing, whether asserted or
claimed prior to, at or after, the Closing. Any WCRF Indemnified Party wishing
to claim indemnification under this Section 8.02, upon learning of any such
claim, action, suit, proceeding or investigation, shall notify Apollo in
writing, but the failure to so notify shall not relieve Apollo from any
liability that it may have under this Section 8.02, except to the extent that
such failure would materially prejudice Apollo.

     

    
      	
              SECTION
      8.03

            	
              INDEMNIFICATION
      OF EXCHANGE AGENT

            

    

     

    WCRF,
Apollo, and Merger Sub (for the purposes of this Section 8.03, the “Indemnitors”)
agree to indemnify the Exchange Agent and its employees and agents
(collectively, the “Indemnitees”)
against, and hold them harmless of and from, any and all loss, liability, cost,
damage and expense, including without limitation, reasonable counsel fees, which
the Indemnitees, or any of them, may suffer or incur by reason of any action,
claim or proceeding brought against the Indemnitees, or any one of them, arising
out of or relating in any way to the Exchange Agent’s service in such capacity,
unless such action, claim or proceeding is the result of the willful misconduct
or gross negligence of any of the Indemnitees.

     

     

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    
 

     

    ARTICLE
IX

    MISCELLANEOUS

     

    
      	
              SECTION
      9.01

            	
              EXPENSES

            

    

     

    All costs
and expenses incurred in connection with this Agreement and the consummation of
the transactions contemplated by this Agreement shall be paid by the Party
incurring such expenses.

     

    
      	
              SECTION
      9.02

            	
              APPLICABLE
      LAW

            

    

     

    This
Agreement shall be governed by the laws of the State of Nevada, without giving
effect to the principles of conflicts of laws thereof, as applied to agreements
entered into and to be performed in such state.

     

    
      	
              SECTION
      9.03

            	
              NOTICES

            

    

     

    All
notices and other communications under this Agreement shall be in writing and
shall be deemed to have been duly given or made as follows:

     

    (a)   If
sent by reputable overnight air courier (such as Federal Express), one business
day after being sent;

     

    (b)   If
sent by facsimile transmission, with a copy mailed on the same day in the manner
provided in clause (a) above, when transmitted and receipt is confirmed by the
fax machine; or

     

    (c)   If
otherwise actually personally delivered, when delivered.

     

    All
notices and other communications under this Agreement shall be sent or delivered
as follows:

     

    If to
Apollo, to:

     

    Huakang
Zhou

    Apollo
Solar Energy, Inc.

    c/o
American Union Securities, Inc.

    100 Wall
Street – 15th
Floor

    New York,
NY 10005

    Telephone:
212-232-0120

    Facsimile:  212-785-5867

     

    with a
copy to (which shall not constitute notice):

     

    Peter
Smith, Esq.

    Kramer
Levin Naftalis & Frankel LLP

    1177
Avenue of the America

    New York,
NY 10036

    Tel:
212-715-9100

    Fax:
212-715-8000

     

     

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    
 

    If to
WCRF, to:

     

    Xiaojin
Wang

    Wincroft,
Inc.

    18
Kimberly Court

    East
Hanover, NY

    Telephone:
973-495-8221

    Facsimile:  973-966-8870

     

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

            

    

     

    Robert
Brantl, Esq.

    52
Mulligan Lane

    Irvington,
NY 10533

    Telephone:
914-693-3026

    Facsimile:
914-693-1807

     

    Each
Party may change its address by written notice in accordance with this
Section.

     

    
      	
              SECTION
      9.04

            	
              ENTIRE
      AGREEMENT

            

    

     

    This
Agreement (including the documents and instruments referred to in this
Agreement) contains the entire understanding of the Parties with respect to the
subject matter contained in this Agreement, and supersedes and cancels all prior
agreements, negotiations, correspondence, undertakings and communications of the
Parties, oral or written, respecting such subject matter including the Letter of
Intent made by Apollo and WCRF dated August15, 2008.

     

    
      	
              SECTION
      9.05

            	
              ASSIGNMENT

            

    

     

    Neither
this Agreement nor any of the rights, interests or obligations under this
Agreement shall be assigned by any of the Parties (whether by operation of law
or otherwise) without the prior written consent of the other Parties; provided
that in no event may the right to indemnification provided by Article VIII
hereto be assigned by any of the Parties, with or without consent, except by
operation of law. Subject to the immediately foregoing sentence of this Section
9.05, this Agreement will be binding upon, inure to the benefit of and be
enforceable by, the Parties and their respective successors, assigns, heirs and
representatives.

     

    
      	
              SECTION
      9.06

            	
              COUNTERPARTS

            

    

     

    This
Agreement may be executed in one or more counterparts, each of which shall be
deemed to be an original but all of which shall be considered one and the same
agreement.

     

    
      	
              SECTION
      9.07

            	
              NO
      THIRD PARTY BENEFICIARIES

            

    

     

    Except as
expressly provided by this Agreement, nothing herein is intended to confer upon
any person or entity not a Party to this Agreement any rights or remedies under
or by reason of this Agreement.

     

    
      	
              SECTION
      9.08

            	
              RULES
      OF CONSTRUCTION 

            

    

     

    The
Parties agree that they have been represented by counsel during the negotiation
and execution of this Agreement and, therefore, waive the application of any
law, regulation, holding or rule of construction providing that ambiguities in
an agreement or other document will be construed against the party drafting such
agreement or document.

     

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

     

     

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

     

    WINCROFT,
INC.

     

    
      	      
              By:

            	/s/ Xiaojin
      Wang	 
	Name:	      
              Xiaojin
      Wang

            	 
	      
              Title:

            	      
              Chief
      Executive Officer

            	 

    

     

     

    APOLLO  SOLAR
ENERGY, INC.

     

    
      
        	      
                By:

              	/s/ Xiaojin
      Wang	 
	Name:	      
                Xiaojin
      Wang

              	 
	      
                Title:

              	      
                Chief
      Executive Officer

              	 

      

       

       

    

    APOLLO
SOLAR ENERGY, INC.

     

    
      
        	      
                By:

              	/s/ Huakang	 
	Name:	      
                Huakang
      Zhou

              	 
	      
                Title:

              	      
                      
                  President

                

              	 

      

       

       

    

    EXHIBITS
AND SCHEDULES:

     

    
      	
              Schedule
      1.01

            	
              Allocation
      of Merger Shares among Apollo
Shareholders

            

    

     

     

     

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    
 

    Merger
Agreement

     

    Schedule
1.01

     

    Allocation
of Merger Shares among Apollo shareholders

     

    
      	
              Name

            	 	
              Shares
      of Common Stock of ASE

            	 	 	
              %
      Ownership Interest in Apollo

            	 	 	
              Shares
      of Common Stock of WCRF

            	 	 	
              %
      Ownership Interest in WCRF

            	 
	
              New
      Greatwall Limited

            	 	 	2,150	 	 	 	50.00	%	 	 	8,600,000	 	 	 	48.43	%
	
              Li
      Yuanqing

            	 	 	25	 	 	 	0.06	%	 	 	100,000	 	 	 	0.56	%
	
              Warner
      Tech

            	 	 	1,087.5	 	 	 	25.29	%	 	 	4,350,000	 	 	 	24.50	%
	
              David
      Dong

            	 	 	4.5	 	 	 	0.10	%	 	 	18,000	 	 	 	0.10	%
	
              Mariana
      Lo

            	 	 	4.5	 	 	 	0.10	%	 	 	18,000	 	 	 	0.10	%
	
              Huakang
      Zhou

            	 	 	200	 	 	 	4.65	%	 	 	800,000	 	 	 	4.50	%
	
              Xiaojin
      Wang

            	 	 	180	 	 	 	3.76	%	 	 	720,000	 	 	 	4.05	%
	
              ASE
      Group

            	 	 	648.5	 	 	 	15.08	%	 	 	2,594,000	 	 	 	14.61	%
	
              Apollo
      sub total

            	 	 	4,300	 	 	 	100.00	%	 	 	17,200,000	 	 	 	96.87	%
	
              WCRF
      shell

            	 	 	 	 	 	 	 	 	 	 	555,013	 	 	 	3.13	%
	
              WCRF
      total after merger close

            	 	 	 	 	 	 	 	 	 	 	17,755,103	 	 	 	100.00	%

    

     

     

     

     

     

     

     

     

     

     

     

     

     

    28ex-10.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
10.1

    Form
8-K

    Bio-Path
Holdings, Inc.

    File No.
000-53404

    

    Drug
Product Development and Clinical Supply Agreement

    

    

    THIS AGREEMENT is effective as
of the 24th day of
June, 2008 (“Effective Date”).

    

    BY
AND BETWEEN:

    

    Bio-Path
Holdings, Inc., a corporation organized and existing under the laws of the State
of Utah, with its principal offices located at 3293 Harrison Blvd., Suite 230,
Ogden, UT 84403 (hereinafter referred to
as “CLIENT”).

    

    AND:

    

    ALTHEA TECHNOLOGIES, INC., a
Delaware corporation, with a place of business located at 11040 Roselle Street,
San Diego, CA 92121 (hereinafter referred to as “ALTHEA”);

    

    WHEREAS CLIENT has
formulations and/or know-how related to each Drug Product, as defined
below;

    

    WHEREAS ALTHEA has the
expertise and the manufacturing facility suitable for the Production of Drug
Product;

    

    WHEREAS, CLIENT wishes to have
ALTHEA Produce Drug Product and ALTHEA wishes to Produce Drug Product for
CLIENT;

    

    NOW, THEREFORE, in
consideration of the premises and the undertakings, terms, conditions and
covenants set forth below, the parties hereto agree as follows:

    

    

    Article
1, DEFINITIONS.

    

    
      	
               
      

            	
              1.1

            	
              AFFILIATE of a party
      hereto shall mean any entity that controls or is controlled by such party,
      or is under common control with such party.  For purposes of
      this definition, an entity shall be deemed to control another entity if it
      owns or controls, directly or indirectly, at least fifty percent (50%) of
      the voting equity of another entity (or other comparable interest for an
      entity other than a corporation).

            

    

    

    
      	
               
      

            	
              1.2

            	
              ALTHEA SOPs shall mean
      ALTHEA’S Standard Operating Procedures which shall be deemed reviewed and
      approved by CLIENT unless prior to manufacture of CLIENT’s Drug Product
      CLIENT’s representative audits ALTHEA’s SOPS and has modifications deemed
      necessary for the manufacture of CLIENT’s Drug
  Product.

            

    

    

    
      	
               
      

            	
              1.3

            	
              BATCH shall mean a
      specific quantity of a Drug Product comprising a number of units mutually
      agreed upon between CLIENT and ALTHEA, and that (a) is intended to have
      uniform character and quality within specified limits, and (b) is produced
      according to a single manufacturing order during the same cycle of
      manufacture.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              1.4

            	
              BULK DRUG SUBSTANCE
      shall mean the active compound, as set forth in the Project Plan,
      to be supplied by CLIENT for use in Production of Drug
      Product.

            

    

    

    
      	
               
      

            	
              1.5

            	
              cGMP shall mean current
      Good Manufacturing Practices as defined in the FDA rules and regulations,
      21 CFR Parts 210-211.

            

    

    

    
      	
               
      

            	
              1.6

            	
              CANCELLATION FEES shall
      mean the fees payable by CLIENT in the event that CLIENT cancels the
      Production of any Batch of Drug Product set forth in the Project Plan,
      except in the event of a default by ALTHEA as set forth in Section
      3.3.

            

    

    

    
      	
               
      

            	
              1.7

            	
              COMPONENTS shall mean
      all Components used by ALTHEA in Production of Drug Product under this
      Agreement.   Components are listed in the Project Plan,
      such Components identified as Components supplied by CLIENT (“CLIENT
      Supplied Components”) and Components supplied by ALTHEA (“ALTHEA Supplied
      Components”).

            

    

     

    

      
        	
                 
      

              	
                1.8

              	
                CONFIDENTIAL INFORMATION
      shall mean all information and data provided by one party to the other
      party except any portion of such information and data
    which:

              

      

      

      
        	
                 
      

              	
                (i)

              	
                is
      known to the recipient as evidenced by its written records before receipt
      thereof from the disclosing party;

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                is
      disclosed to the recipient by a third person who has the right to make
      such disclosure;

              

      

      

      
        	
                 
      

              	
                (iii)

              	
                is
      or becomes part of the public domain through no fault of the recipient;
      or

              

      

      

      
        	
                 
      

              	
                (iv)

              	
                the
      recipient can reasonably establish has been independently developed by
      recipient without use of the information disclosed by the disclosing
      party.

              

      

       

    

     

    
      	
               
      

            	
              1.9

            	
              DEVELOPMENT shall mean
      studies conducted by ALTHEA to develop a process to Produce Drug Product,
      in accordance with the Specifications and cGMP.  Development
      activities shall be identified in the Project
  Plan.

            

    

    

    
      	
               
      

            	
              1.10

            	
              DRUG PRODUCT shall mean
      each pharmaceutical product set forth in a development & regulatory
      Plan, if applicable, and a Project Plan to be Produced by ALTHEA in bulk
      or finished dosage form for development and/or clinical use
      only.

            

    

    

    
      	
               
      

            	
              1.11

            	
              FDA shall mean the
      United States Food and Drug Administration or any successor entity
      thereto.

            

    

    

    
      	
               
      

            	
              1.12

            	
              FD&C ACT shall mean
      the United States Federal Food, Drug and Cosmetic Act, as may be amended
      from time to time.

            

    

    

    
      	
               
      

            	
              1.13

            	
              IND shall mean an
      Investigational New Drug Application for Drug Product, as defined in the
      United States Food and Drug Administration (FDA) rules and regulations, 21
      CFR.

            

    

    

    
      	
               
      

            	
              1.14

            	
              LABELING shall mean all
      labels and other written, printed, or graphic matter upon: (i) Drug
      Product or any container, carton, or wrapper utilized with Drug Product or
      (ii) any written material accompanying Drug
  Product.

            

    

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              1.15

            	
              MASTER BATCH RECORD (MBR)
      shall mean the formal set of instructions for Production of Drug
      Product.  The MBR shall be developed and maintained in ALTHEA’s
      standard format by ALTHEA, using CLIENT’s master formula and technical
      support.

            

    

    

    
      	
               
      

            	
              1.16

            	
              PRODUCTION or PRODUCE
      shall mean the formulation, filling, packaging, inspection,
      labeling, and testing of Drug Product by
ALTHEA.

            

    

    

    
      	
               
      

            	
              1.17

            	
              PRODUCT SPECIFICATION
      SHEET shall mean a listing of the analytical testing and
      corresponding Specifications, to be performed on the Bulk Drug Substance
      and Drug Product in connection with the stability
  program.

            

    

    

    
      	
               
      

            	
              1.18

            	
              PROJECT PLAN shall mean
      the document containing the parameters for Production of Drug Product
      which shall be developed by ALTHEA and agreed to in writing by CLIENT for
      each Drug Product under this Agreement.  Prior to commencing
      Production of any Drug Product, ALTHEA shall deliver two (2) signed
      originals of the Project Plan to CLIENT.  CLIENT shall sign both
      originals of the Project Plan and return one (1) fully executed original
      to ALTHEA.  Each fully executed Project Plan shall be
      incorporated herein by reference and made a part of this
      Agreement.  ALTHEA shall have no obligation for Production of a
      Drug Product until CLIENT has executed and returned the Project Plan for
      such Drug Product to ALTHEA.

            

    

    

    
      	
               
      

            	
              1.19

            	
              PURCHASE PRICE shall
      mean the amount to be paid by CLIENT as specified in each Project
      Plan.

            

    

    

    
      	
               
      

            	
              1.20

            	
              REGULATORY AUTHORITY
      shall mean those agencies or authorities responsible for regulation
      of Drug Product in the United States and overseas.  ALTHEA shall
      have no obligation to Produce Drug Product in compliance with the
      requirements of a Regulatory Authority not specified in the applicable
      Project Plan.

            

    

    

    
      	
               
      

            	
              1.21

            	
              RELEASED EXECUTED BATCH
      RECORD shall mean the completed batch record and associated
      deviation reports, investigation reports, and Certificates of Analysis
      created for each Batch of Drug
Product.

            

    

    

    
      	
               
      

            	
              1.22

            	
              SPECIFICATIONS shall
      mean those specifications set forth in Product Specification Sheet and the
      Master Batch Record for Drug Product, and to the extent that ALTHEA is
      required to test the Bulk Drug Substance, for the Bulk Drug
      Substance.

            

    

    

    

    Article
2, DEVELOPMENT AND PRODUCTION OF DRUG PRODUCT.

    

    
      	
               
      

            	
              2.1

            	
              Initiation:  Upon
      execution of this Agreement and the corresponding Project Plan for each
      Drug Product, ALTHEA shall commence Development of such Drug Product
      pursuant to the timeline set forth in the Project Plan.  Upon
      execution of this Agreement and the corresponding Project Plan for each
      Drug Product, ALTHEA shall commence Production of such Drug Product
      pursuant to the Project Plan.  ALTHEA shall diligently perform
      the work necessary to complete the Development and Production of such Drug
      Product in accordance with the Project
Plan.

            

    

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              2.2

            	
              Documentation:  The
      Master Batch Record shall be reviewed and approved by ALTHEA and by CLIENT
      prior to commencement of Production.  Any material change to an
      approved Master Batch Record will be reviewed and approved by ALTHEA and
      by CLIENT prior to said change being implemented.  Each Batch of
      Drug Product shall be Produced by using a copy of the Master Batch
      Record.  Each copy of the Master Batch Record for such Batch of
      Drug Product shall be assigned a unique batch number.  Any
      deviation from the manufacturing process specified in the Master Batch
      Record must be documented in the copy of the Master Batch Record for that
      Batch.  ALTHEA shall provide CLIENT with required supporting
      Development and Production documentation in a form reasonably suitable for
      CLIENT's submission to the FDA.

            

    

    

    
      	
               
      

            	
              2.3

            	
              Bulk Drug Substance and
      Components Supply:

            

    

    

    
      	
               
      

            	
              2.3.1 CLIENT
      Responsibilities: CLIENT, at its sole cost and expense (including,
      without limitation, shipping costs), shall supply to ALTHEA, in a timely
      manner, (a) all Bulk Drug Substance required to satisfy the terms of this
      Agreement and (b) all other CLIENT Supplied Components, all to be
      delivered to ALTHEA as set forth in the applicable Project Plan for
      Production of such Drug Product.  Except as may specifically be
      set forth in the Project Plan, on receipt of the Bulk Drug Substance and
      CLIENT Supplied Components as set forth above, ALTHEA’s sole obligation
      with respect to evaluation of the Bulk Drug Substance and CLIENT Supplied
      Components shall be to review the accompanying certificate of analysis to
      confirm that the Bulk Drug Substance and CLIENT Supplied Components (if
      applicable) conform with the Specifications and component specifications,
      respectively.

            

    

    

    
      	
               
      

            	
              2.3.2  ALTHEA
      Responsibilities: ALTHEA, at its sole cost and expense (including,
      without limitation, shipping costs), shall supply, in a timely manner, all
      ALTHEA Supplied Components as set forth in the applicable Project Plan for
      Production of such Drug Product.

            

    

    

    
      	
               
      

            	
              2.4

            	
              Bulk Drug Substance and
      Component Delivery Delays:  ALTHEA shall have no
      responsibility for delays in delivery of Drug Product caused by delays in
      receipt of Bulk Drug Substance or CLIENT Supplied Components.
      Notwithstanding anything in this Agreement to the contrary, in the event
      that ALTHEA receives the Bulk Drug Substance for Production of Drug
      Product from CLIENT with less time than requested in the applicable
      Project Plan prior to the scheduled date of Production of such Drug
      Product, but within sufficient time to Produce such Drug Product on such
      scheduled date as determined by ALTHEA in its sole discretion, ALTHEA
      shall Produce such Drug Product as per the original
      schedule.  Notwithstanding anything in this Agreement to the
      contrary, in the event that ALTHEA receives the Bulk Drug Substance for
      Production of Drug Product from CLIENT with less time than requested in
      the applicable Project Plan prior to the scheduled date of Production of
      such Drug Product, and without sufficient time to Produce such Drug
      Product on the scheduled date as determined by ALTHEA in its sole
      discretion, ALTHEA shall reschedule Production of such Drug Product and
      shall charge CLIENT the applicable Cancellation Fee, provided, however, in
      the event CLIENT has provided notice to ALTHEA a minimum of forty five
      (45) days prior to the date scheduled for Production that delivery of the
      Bulk Drug Substance to Althea will be delayed, Althea shall reschedule the
      date for Production based on the new date for delivery of the drug
      substance and no fees will be owed by
CLIENT.

            

    

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              2.5

            	
              Importer of
      Record:  In the event any material or equipment to be
      supplied by CLIENT, including without limitation CLIENT Supplied
      Components and Bulk Drug Substance, is imported into the United States for
      delivery to ALTHEA ("Imported Goods"), CLIENT shall be the “Importer of
      Record” of such Imported Goods.   As the Importer of
      Record, CLIENT shall be responsible for all aspects of the Imported Goods
      including, without limitation (a) customs and other regulatory clearance
      of Imported Goods, (b) payment of all tariffs, duties, customs, fees,
      expenses and charges payable in connection with the importation and
      delivery of the Imported Goods, and (c) keeping all records, documents,
      correspondence and tracking information required by applicable laws, rules
      and regulations arising out of or in connection with the importation or
      delivery of the Imported Goods.

            

    

    

    
      	
               
      

            	
              2.6

            	
              Material Safety Data
      Sheet:  CLIENT shall provide ALTHEA a Material Safety
      Data Sheet for Bulk Drug Substance and for each Drug
      Product.  ALTHEA shall immediately notify CLIENT of any unusual
      health or environmental occurrence relating to Drug Product, including,
      but not limited to any claim or complaint by any employee of ALTHEA or any
      of its Affiliates or third party that the operations of ALTHEA pursuant to
      this Agreement have resulted in any adverse health or safety effect on an
      employee or third party.  ALTHEA agrees to advise CLIENT
      immediately of any safety or toxicity problems of which it becomes aware
      regarding the Drug Product.

            

    

    

    
      	
               
      

            	
              2.7

            	
              Vendor and Supplier Audit and
      Certification:  CLIENT shall certify and audit all Drug
      Product- related vendors and suppliers, or approve ALTHEA’S selection of
      vendors and suppliers by way of signing this
  agreement.

            

    

    

    
      	
               
      

            	
              2.8

            	
              ALTHEA Progress
      Reports:   ALTHEA shall provide CLIENT with at least
      monthly written Microsoft Project reports on the progress of the
      Development and Production of a Drug Product, comparing actual
      accomplishments to the objectives set forth in the applicable Project
      Plan..

            

    

    

    
      	
               
      

            	
              2.9

            	
              Delivery
      Terms:  ALTHEA shall ship all Drug Product to CLIENT or
      to CLIENT's designated consignee.  All shipments shall be
      shipped FOB ALTHEA, by a common carrier designated by CLIENT, at CLIENT’s
      expense; provided, however, ALTHEA shall be responsible for the loading of
      the Drug Product on departure and shall bear risk of loss and all costs of
      such loading. CLIENT shall procure, at its cost, insurance covering damage
      or loss of Drug Product during shipping.  All shipping
      instructions of CLIENT shall be accompanied by the name and address of the
      recipient and the shipping date.

            

    

    

    
      	
               
      

            	
              2.10

            	
              Exporter of
      Record:  CLIENT shall be the exporter of record for any
      Product shipped out of the United States, as CLIENT remains the owner of
      the Product.  CLIENT warrants that all shipments of Product
      exported from the United States will be made in compliance
      with all applicable United States export laws and regulations and all
      applicable import laws and regulations into the country of
      deportation.

            

    

    

    CLIENT
shall be responsible for obtaining and paying for any licenses or other
governmental authorization(s) necessary for the exportation from the United
States.  CLIENT shall select and pay the freight forwarder who shall
solely be CLIENT’s agent.  CLIENT and its freight forwarder shall be
solely responsible for preparing and filing the Shipper’s Export Declaration and
any other documentation required for the export.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              2.11

            	
              Foreign Corrupt Practices
      Act.  CLIENT acknowledges that it is not the agent of
      ALTHEA and represents and warrants that it has not, and covenants that it
      will not, pay anything of value to any government employee in connection
      with the resale of the Product.

            

    

    

    
      	
               
      

            	
              2.12

            	
              Deposits and Payment for Drug
      Product and Development: Promptly upon execution of each Project
      Plan, CLIENT shall pay to ALTHEA forty percent (40%) of the total fees of
      this agreement, and thereafter will be invoiced monthly based on the
      specific services completed during the month.  The final invoice
      for the Drug Product will be issued upon the delivery of released Drug
      Product to CLIENT by ALTHEA CLIENT shall pay all invoices within thirty
      (30) days of the invoice date therefore.  Any payment due under
      this Agreement not received within the times noted above shall bear
      interest at the lesser of (a) the maximum rate permitted by law, and (b)
      1.5% per month on the outstanding balance compounded
    monthly.

            

    

    

    
      	
               
      

            	
              2.13

            	
              Default in Payment Obligations:
      In addition to all other remedies available to ALTHEA in the event
      of a CLIENT default, if CLIENT fails to make payments as required
      hereunder, ALTHEA may take appropriate measures to assure prompt and full
      payment, including refusal to Produce any Drug Product until CLIENT’s
      account is paid in full, modify the foregoing terms of payment, place the
      account on a letter of credit basis, require full or partial payment in
      advance, suspend deliveries of Drug Product until CLIENT provides
      assurance of performance reasonably satisfactory to ALTHEA, and/or take
      other reasonable means as ALTHEA may
determine.

            

    

    

    
      	
               
      

            	
              2.14

            	
              Returns: Drug Product
      returned by third parties is the responsibility of
  CLIENT.

            

    

    

    

    Article
3, TERM AND TERMINATION.

    

    
      	
               
      

            	
              3.1

            	
              Term:  This Agreement shall commence
      on the date first above written and will continue until the Development
      and Production, as described in the Project Plan, have been completed,
      unless sooner terminated pursuant to Section 3.2 herein (the
      “Term”).

            

    

    

    
      	
               
      

            	
              3.2

            	
              Termination:  This
      Agreement may be terminated at any time upon the occurrence of any of the
      following events:

            

    

    

    
      	
               
      

            	
              3.2.1

            	
              Termination for
      Breach:  Either party may terminate this Agreement upon
      the breach of any provision of this Agreement by the other party if such
      breach is not cured by the breaching party within thirty (30) calendar
      days (or such additional time not to exceed ninety (90) days reasonably
      necessary to cure such default provided the breaching party has commenced
      a cure within the thirty (30) day period and is diligently pursuing
      completion of such cure) after receipt by the breaching party of written
      notice of such default.  At the option of the non-breaching
      party, such termination may be with respect to the entire Agreement, or
      only with respect to the Drug Product that is subject to the
      breach.

            

    

    

    
      	
               
      

            	
              3.2.2

            	
              Termination for Financial
      Matters:  This Agreement may be terminated immediately by
      either party by giving the other party written notice thereof in the event
      such other party makes a general assignment for the benefit of its
      creditors, or proceedings of a case are commenced in any court of
      competent jurisdiction by or against such party seeking (a) such party’s
      reorganization, liquidation, dissolution, arrangement or winding up, or
      the composition or readjustment of its debts, (b) the appointment of a
      receiver or trustee for or over such party’s property,
  or

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (c)
similar relief in respect of such party under any law relating to bankruptcy,
insolvency, reorganization, winding up or composition or adjustment of debt, and
such proceedings shall continue undismissed, or an order with respect to the
foregoing shall be entered and continue unstated, for a period of more than
sixty (60) days.

    

    
      	
               
      

            	
              3.2.3

            	
              Termination by
      Client:  This Agreement may be terminated by CLIENT at
      any time by giving ALTHEA notice thereof and payment to ALTHEA of the
      Cancellation Fee set forth in Section
3.3.

            

    

    

    
      	
               
      

            	
              3.3

            	
              Payment on
      Termination:  In the event of the termination of this
      Agreement by ALTHEA pursuant to Section 3.2.1, CLIENT shall reimburse
      ALTHEA for (a) all Components ordered prior to termination and not
      cancelable at no cost to ALTHEA, (b) all work-in-process commenced by
      ALTHEA, and (c) all finished Drug Product.  In the event of
      cancellation by CLIENT of the Production of any Batch set forth in a
      Project Plan or in the event of termination of this Agreement, except for
      termination in the event of a default by ALTHEA pursuant to Section 3.2.1,
      CLIENT shall pay  the Cancellation Fees as hereinafter set
      forth:  (i) CLIENT is subject to a 20% charge if the Batch is
      canceled less than nine (9) weeks from the scheduled fill date, (ii) a 30%
      charge if the Batch is canceled less than six (6) weeks from the scheduled
      fill date, and (iii) a 50% charge if the Batch is canceled less than three
      (3) weeks from the scheduled fill date.  In addition, CLIENT
      must compensate ALTHEA for any materials ordered or testing
      completed.  For purposes of the foregoing, one (1) week is
      equivalent to seven (7) days.  Following expiration or
      termination, ALTHEA shall ship such materials to CLIENT at CLIENT's cost
      and per CLIENT's instructions.  CLIENT shall make payment for
      all expenses described in Section 3.3 thirty (30) days from the invoice
      date.  In the event of termination by CLIENT for a breach by
      ALTHEA pursuant to Section 3.2.1, CLIENT shall not owe any Cancellation
      Fees.

            

    

    

    
      	
               
      

            	
              3.4

            	
              Survival:  Termination,
      expiration, cancellation or abandonment of this Agreement through any
      means or for any reason, except as set forth in Section 12.1, shall be
      without prejudice to the rights and remedies of either party with respect
      to any antecedent breach of any of the provisions of this
      Agreement.  The provisions of Sections 3, 6, 9, 10, 11, 12, 13,
      14, and 15 hereof shall survive expiration or termination of this
      Agreement.

            

    

    

    

    Article
4, CERTIFICATES OF ANALYSIS AND MANUFACTURING COMPLIANCE.

    

    
      	
               
      

            	
              4.1

            	
              Certificates of
      Analysis:  At CLIENT’s cost and expense, ALTHEA shall
      test, or cause to be tested by third parties, in accordance with the
      Specifications, each Batch of Drug Product Produced pursuant to this
      Agreement before delivery to CLIENT.  A certificate of analysis
      for each Batch delivered shall set forth the items tested, Specifications,
      and test results.  ALTHEA shall also indicate on the final page
      of the Executed Batch Record that all batch Production and control records
      have been reviewed and approved by the appropriate quality control
      unit.  ALTHEA shall send, or cause to be sent, such certificates
      to CLIENT prior to the shipment of Drug Product (unless Drug Product is
      shipped under quarantine).  CLIENT shall test, or cause to be
      tested, for final release, each Batch of Drug Product as meeting the
      Specifications.  As required by the FDA (see Section 5.2 below),
      CLIENT assumes full responsibility for final release of each Batch of Drug
      Product.

            

    

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              4.2

            	
              Manufacturing
      Compliance:  ALTHEA shall advise CLIENT immediately if an
      authorized agent of any Regulatory Authority visits ALTHEA's manufacturing
      facility and makes an inquiry or inspection regarding ALTHEA's Production
      of Drug Product for CLIENT.  ALTHEA will also forward to CLIENT
      any documents of findings of violations, including but not limited to FDA
      Form 483.  Manufacturing deviations and investigations which
      occur during Production of Drug Product and which do not cause the
      Production to be non-compliant with cGMP, shall not be deemed to cause
      such Drug Product to be non-conforming as set forth in Section
      5.1.

            

    

    

    
      	
               
      

            	
              4.3

            	
              Reserve
      Samples:  CLIENT shall be responsible for obtaining and
      maintaining sufficient quantities of Bulk Drug Substance and Drug Product
      reserve samples pursuant to cGMP.

            

    

    

    
      	
               
      

            	
              4.4

            	
              Annual Quality
      Review:  CLIENT shall be responsible for evaluating, at
      least annually, the quality standards of Drug Product to determine the
      need for changes in Specifications, manufacturing processes, and/or
      controlled documents.  CLIENT shall supply ALTHEA a copy of the
      evaluation and recommendations, if
any.

            

    

    

    
      	
               
      

            	
              4.5

            	
              Distribution
      Records:  ALTHEA shall maintain distribution records that
      contain all of the appropriate information as specified in
      cGMP.

            

    

    

    
      	
               
      

            	
              4.6

            	
              Customer
      Complaints:  CLIENT, as required by cGMP, shall maintain
      complaint files.  All specific CLIENT Drug Product-related
      complaints received by ALTHEA shall be forwarded to
      CLIENT.  CLIENT shall be responsible for the review of the
      complaint to determine the need for an investigation or the need to report
      to the FDA as required by cGMP.  CLIENT shall send to ALTHEA all
      Drug Product performance or manufacturing-related complaints which require
      investigation.  ALTHEA shall conduct an investigation for each
      Drug Product performance or manufacturing-related complaint and shall
      report findings and follow-up of each investigation to
      CLIENT.  CLIENT shall make these complaint files available to
      ALTHEA in the event they are required during an FDA
      inspection.

            

    

    

    
      	
               
      

            	
              4.7

            	
              Audits: CLIENT, upon
      prior written notice and during normal business hours, shall have the
      right to inspect, once annually for not more than two (2) days, ALTHEA
      batch records and the portions of ALTHEA’s facility used for Production of
      Drug Product.  If CLIENT chooses to audit ALTHEA more than one
      (1) time in a calendar year or for more than two (2) days, CLIENT agrees
      to reimburse ALTHEA for ALTHEA’s reasonable expenses incurred in hosting
      the audit.  All audited data will be treated as Confidential
      Information of ALTHEA and CLIENT shall not be permitted to remove or copy
      data without ALTHEA’s prior
consent.

            

    

    

    
      	
               
      

            	
              4.8

            	
              Regulatory
      Compliance:  Unless otherwise stated, ALTHEA is
      responsible for compliance with all Federal, State and local laws and
      regulations (“Regulations”) as they apply generally to Production, quality
      and specifications of pharmaceutical products.  CLIENT shall be
      responsible for compliance with all Regulations as they apply to all other
      aspects of the Production, use, and sale of Drug Product, which
      responsibility shall include, without limitation, all contact and
      communications with the FDA regarding the
  foregoing.

            

    

    

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    Article
5, ACCEPTANCE OF DRUG PRODUCT.

    

    
      	
               
      

            	
              5.1

            	
              Non-Conforming Drug
      Product: Within fifteen
      (15) calendar days from the date of Production of any Batch pursuant to
      the Project Plan, ALTHEA shall promptly forward to CLIENT, or CLIENT’s
      designee, samples of such Batch. Within thirty (30) calendar days after
      receipt by CLIENT of the samples or fifteen (15) calendar days after
      receipt by CLIENT of the Released Executed Batch Record, whichever is
      later, CLIENT shall determine whether Drug Product conforms to ALTHEA’s
      Drug Product Specifications, Master Batch Record, ALTHEA’s current SOPs,
      and the Project Plan (collectively the “Product
      Requirements”).

            

    

    

    
      	
               
      

            	
              5.1.1

            	
              If
      (a) any Batch of Drug Product conforms to the Product Requirements, or (b)
      CLIENT fails to notify ALTHEA within the applicable time period that any
      Batch of Drug Product does not conform to the Product Requirements, then
      CLIENT shall be deemed to have accepted the Drug Product and waived its
      right to revoke acceptance.

            

    

    

    
      	
               
      

            	
              5.1.2

            	
              If
      CLIENT believes any Batch of Drug Product does not conform to the Product
      Requirements, it shall notify ALTHEA by telephone, including a detailed
      explanation of the non-conformity, and shall confirm such notice in
      writing via overnight delivery to ALTHEA.  Upon receipt of such
      notice, ALTHEA will investigate such alleged non-conformity, and (i) if
      ALTHEA agrees such Drug Product is non-conforming, deliver to CLIENT a
      corrective action plan within thirty (30) calendar days after receipt of
      CLIENT’s written notice of non-conformity, or such additional time as is
      reasonably required if such investigation or plan requires data from
      sources other than CLIENT or ALTHEA, or (ii) if ALTHEA disagrees with
      CLIENT’s determination that the Batch of Drug Product is
      non-conforming,  ALTHEA shall so notify CLIENT by telephone
      within the thirty (30) calendar day period and confirm such notice in
      writing by overnight delivery.

            

    

    

    
      	
               
      

            	
              5.1.3

            	
              If
      the parties dispute whether Batch of Drug Product is conforming or
      non-conforming, samples of the Batch of Drug Product will be submitted to
      a mutually acceptable laboratory or consultant for resolution, whose
      determination of conformity or non-conformity, and the cause thereof if
      non-conforming, shall be binding upon the parties.   CLIENT
      shall bear the costs of such laboratory or consultant, except as set forth
      in Section 5.2.

            

    

    

    
      	
               
      

            	
              5.2

            	
              Remedies for Non Conforming
      Product:  In the event ALTHEA agrees that the Batch of
      Drug Product is non-conforming solely as a result of the negligence or any
      other fault of ALTHEA or the laboratory determines that the shipment of
      Drug Product is non-conforming solely as a result of the negligence or any
      other fault of ALTHEA, then ALTHEA, at its option, shall either (i) at its
      expense, and subject to CLIENT, at its expense, supplying the replacement
      Bulk Drug Substance and upon payment for the non-conforming Drug Product
      by CLIENT, replace such non-conforming Drug Product within sixty (60)
      calendar days from receipt of replacement Bulk Drug Substance from CLIENT,
      or (ii) refund the Purchase Price of the non-conforming Drug
      Product.

            

    

    

    
      	
               
      

            	
              5.3

            	
              Non-conforming Bulk Drug
      Substance:  If Drug Product is rejected by CLIENT, and
      such Drug Product’s failure to meet the Product Requirements is the result
      of non-conforming Bulk Drug Substance, then such non-conformity shall be
      deemed not to be non-conforming solely as a result of the negligence of
      ALTHEA.

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    Article
6, DRUG PRODUCT RECALLS.

    

    
      	
               
      

            	
              6.1

            	
              Drug Product
      Recalls:  In the event CLIENT shall be required to recall
      any Drug Product because such Drug Product may violate local, state or
      federal laws or regulations, the laws or regulations of any applicable
      foreign government or agency or the Drug Product Specifications, or in the
      event that CLIENT elects to institute a voluntary recall, CLIENT shall be
      responsible for coordinating such recall.  CLIENT promptly shall
      notify ALTHEA if any Drug Product is the subject of a recall and provide
      ALTHEA with a copy of all documents relating to such
      recall.  ALTHEA shall cooperate with CLIENT in connection with
      any recall, at CLIENT’s expense. CLIENT shall be responsible for all of
      the costs and expenses of such
recall.

            

    

    

    

    Article
7, FORCE MAJEURE; FAILURE TO SUPPLY.

    

    
      	
               
      

            	
              7.1

            	
              Force Majeure
      Events:  Failure of either party to perform under this
      Agreement (except the obligation to make payments) shall not subject such
      party to any liability to the other if such failure is caused by acts of
      God, acts of terrorism, fire, explosion, flood, drought, war, riot,
      sabotage, embargo, strikes or other labor trouble, compliance with any
      order or regulation of any government entity, or by any cause beyond the
      reasonable control of the affected party, whether or not foreseeable,
      provided that written notice of such event is promptly given to the other
      party.

            

    

    

    
      	
               
      

            	
              7.2

            	
              Failure to
      Supply:  If ALTHEA fails to supply all or any material
      part of Drug Product ordered by CLIENT, CLIENT may require ALTHEA to
      supply the undelivered Drug Product or a lesser quantity at a future date
      agreed upon by ALTHEA and CLIENT.  The provisions of this
      Section 7.2 shall be without prejudice to CLIENT's rights under Section
      3.2 and remedies provided for
thereunder.

            

    

    

    

    Article
8, CHANGES IN PRODUCTION.

    

    
      	
               
      

            	
              8.1

            	
              Changes to Master Batch Records
      and Product Specifications:  ALTHEA agrees to inform
      CLIENT within fifteen (15) days of the result of any regulatory
      development or changes to Drug Product-specific SOPs that materially
      affect the Production of Drug Product.  ALTHEA shall notify
      CLIENT of and require written approval from CLIENT for changes to Master
      Batch Records and Drug Product Specifications prior to the Production of
      subsequent Batches of Drug Product.

            

    

    
      	
               
      

            	
              8.2

            	
              Facility
      Changes

            

    

    

    
      	
               
      

            	
              8.2.1

            	
              Product-Specific
      Changes:  If facility, equipment, process or system
      changes are required of ALTHEA as a result of requirements set forth by
      the FDA or any other Regulatory Authority, and such regulatory changes
      apply primarily to the Production and supply of one or more Drug Products,
      then CLIENT and ALTHEA will review such requirements and agree in writing
      to such regulatory changes, and CLIENT shall bear 100% of the reasonable
      costs thereof.

            

    

    

    
      	
               
      

            	
              8.2.2

            	
              General
      Changes:  If such regulatory changes apply generally to
      one or more Drug Products as well as to other products Produced by ALTHEA
      for itself or for third parties, then CLIENT shall pay a pro rata amount
      of the reasonable cost of such regulatory changes based upon the
      proportion of time that such facility is dedicated to the Production of
      Drug Products relative to the Production of such other
      products.

            

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    Article
9, CONFIDENTIALITY.

    

    
      	
               
      

            	
              9.1

            	
              Confidentiality:  It
      is contemplated that in the course of the performance of this Agreement
      each party may, from time to time, disclose Confidential Information to
      the other.  Each party agrees to take all reasonable steps to
      prevent disclosure of Confidential Information to third
      parties.  No provision of this Agreement shall be construed so
      as to preclude disclosure of Confidential Information as may be reasonably
      necessary to secure from any governmental agency necessary approvals or
      licenses or to obtain patents with respect to the Drug
      Product.

            

    

    

    
      	
               
      

            	
              9.2

            	
              Prior Confidentiality
      Agreement:  This Agreement, by reference, incorporates
      the Confidentiality Agreement signed by CLIENT and ALTHEA on February
      12th,
      2008, and is made a part hereof as though fully set forth
      herein.

            

    

    

    
      	
               
      

            	
              9.3

            	
              Third Party
      Disclosure:  ALTHEA shall be permitted to disclose Drug
      Product information to third party developmental and analytical service
      providers in connection with performance of its obligations hereunder
      provided such providers shall be subject to confidentiality
      agreements.  Either party may disclose Confidential Information
      of the disclosing party to those Affiliates, agents and consultants who
      need to know such information to accomplish the purposes of this Agreement
      (collectively, “Permitted Recipients”); provided such Permitted Recipients
      are bound to maintain such Confidential Information in
      confidence.

            

    

    

    
      	
               
      

            	
              9.4

            	
              Litigation and Governmental
      Disclosure:  Each party may disclose Confidential
      Information hereunder to the extent such disclosure is reasonably
      necessary for prosecuting or defending litigation, complying with
      applicable governmental regulations or conducting pre-clinical or clinical
      trials, provided that if a party is required by law or regulation to make
      any such disclosure of the other party’s Confidential Information it will,
      except where impractical for necessary disclosures, for example in the
      event of a medical emergency, give reasonable advance notice to the other
      party of such disclosure requirement and will use good faith efforts to
      assist such other party to secure a protective order or confidential
      treatment of such Confidential Information required to be
      disclosed.

            

    

    

    
      	
               
      

            	
              9.5

            	
              Limitation of
      Disclosure:  The parties agree that, except as otherwise
      may be required by applicable laws, regulations, rules or orders,
      including without limitation the rules and regulations promulgated by the
      United States Securities and Exchange Commission, and except as may be
      authorized in Section 9.4, no information concerning this Agreement and
      the transactions contemplated herein shall be made public by either party
      without the prior written consent of the
other.

            

    

    

    
      	
               
      

            	
              9.6

            	
              Publicity and SEC
      Filings.  The parties agree that the public announcement
      of the execution of this Agreement shall only be by one or more press
      releases mutually agreed to by the parties.  The failure of a
      party to return a draft of a press release with its proposed amendments or
      modifications to such press release to the other party within five (5)
      days of such party’s receipt of such press release shall be deemed as such
      party’s approval of such press release as received by such
      party.  Each party agrees that it shall cooperate fully and in a
      timely manner with the other with respect to all disclosures to the
      Securities and Exchange Commission and any other governmental or
      regulatory agencies, including requests for confidential treatment of
      Confidential Information of either party included in any such
      disclosure.

            

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              9.7

            	
              Duration of
      Confidentiality:  All obligations of confidentiality and
      non-use imposed upon the parties under this Agreement shall expire ten
      (10) years after the expiration or earlier termination of this Agreement;
      provided, however, that Confidential Information which constitutes the
      trade secrets of a party shall be kept confidential indefinitely, subject
      to the limitations set forth in Sections 9.4 through
  9.5.

            

    

    

    

    Article
10, INVENTIONS.

    

    
      	
               
      

            	
              10.1

            	
              Existing Intellectual
      Property:  Except as the parties may otherwise expressly
      agree in writing, each party shall continue to own its existing patents,
      trademarks, copyrights, trade secrets and other intellectual property,
      without conferring any interests therein on the other party. Without
      limiting the generality of the preceding sentence, CLIENT shall retain all
      right, title and interest arising under the United States Patent Act, the
      United States Trademark Act, the United States Copyright Act and all other
      applicable laws, rules and regulations in and to all Drug Products, Bulk
      Drug Substance, Labeling and trademarks associated therewith
      (collectively, “CLIENT’s Intellectual Property”).   Neither
      ALTHEA nor any third party shall acquire any right, title or interest in
      CLIENT’s Intellectual Property by virtue of this Agreement or otherwise,
      except to the extent expressly provided
herein.

            

    

    

    
      	
               
      

            	
              10.2

            	
              Individually Owned Inventions:
      Except as the parties may otherwise agree in writing, all
      Inventions (as defined herein) which are conceived, reduced to practice,
      or created by a party in the course of performing its obligations under
      this Agreement shall be solely owned and subject to use and exploitation
      by the inventing party without a duty to account to the other party,
      provided, however, any Inventions or changes to CLIENT’s Drug Product
      formulation shall be owned solely by CLIENT.  For purposes of
      this Agreement, “Invention” shall mean information relating to any
      innovation, improvement, development, discovery, computer program, device,
      trade secret, method, know-how, process, technique or the like, whether or
      not written or otherwise fixed in any form or medium, regardless of the
      media on which contained and whether or not patentable or
      copyrightable.

            

    

    

    
      	
               
      

            	
              10.3

            	
              Jointly Owned Inventions:
      All Inventions which are conceived, reduced to practice, or created
      jointly by the parties and/or their respective agents (i.e., employees or
      agents who would be or are properly named as co-inventors under the laws
      of the United States on any patent application claiming such inventions)
      in the course of the performance of this Agreement shall be owned jointly
      by the parties. Each party shall have full rights to exploit such
      Inventions for its own commercial purposes without any obligation to the
      other. The parties shall share equally in the cost of mutually agreed
      patent filings with respect to all such jointly owned Inventions. The
      decision to file for patent coverage on jointly owned Inventions shall be
      mutually agreed upon, and the Parties shall select a mutually acceptable
      patent counsel to file and prosecute patent applications based on such
      joint Inventions.

            

    

    

    
      	
               
      

            	
              10.4

            	
              Disclaimer:  Except
      as otherwise expressly provided herein, nothing contained in this
      Agreement shall be construed or interpreted, either expressly or by
      implication, estoppel or otherwise, as: (i) a grant, transfer or other
      conveyance by either party to the other of any right, title, license or
      other interest of any kind in any of its Inventions or other intellectual
      property, (ii) creating an obligation on the part of either party to make
      any such grant, transfer or other conveyance or (iii) requiring either
      party to participate with the other party in any cooperative development
      program or project of any kind or to continue with any such program or
      project.

            

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              10.5

            	
              Rights in
      IP:  The party owning any IP shall have the world wide
      right to control the drafting, filing, prosecution and maintenance of
      patents covering the Inventions relating to such IP, including decisions
      about the countries in which to file patent
      applications.  Patent costs associated with the patent
      activities described in this Section shall be borne by the sole
      owner.  Each party will cooperate with the other party in the
      filing and prosecution of patent applications. Such cooperation will
      include, but not be limited to, furnishing supporting data and affidavits
      for the prosecution of patent applications and completing and signing
      forms needed for the prosecution, assignment and maintenance of patent
      applications.

            

    

    

    
      	
               
      

            	
              10.6

            	
              Confidentiality of
      IP:  IP shall be deemed to be the Confidential
      Information of the party owning such IP.  The protection of each
      party’s Confidential Information is described in Article 9.  Any
      disclosure of information by one party to the other under the provisions
      of this Section 10 shall be treated as the disclosing party’s Confidential
      Information under this Agreement.  It shall be the
      responsibility of the party preparing a patent application to obtain the
      written permission of the other party to use or disclose the other party’s
      Confidential Information in the patent application before the application
      is filed and for other disclosures made during the prosecution of the
      patent application.

            

    

    

    

    Article
11, REPRESENTATIONS AND WARRANTIES.

    

    
      	
               
      

            	
              11.1

            	
              Mutual
      Representations:  Each party hereby represents and
      warrants to the other party that (a) the person executing this Agreement
      is authorized to execute this Agreement; (b) this Agreement is legal and
      valid and the obligations binding upon such party are enforceable by their
      terms; and (c) the execution, delivery and performance of this Agreement
      does not conflict with any agreement, instrument or understanding, oral or
      written, to which such party may be bound, nor violate any law or
      regulation of any court, governmental body or administrative or other
      agency having jurisdiction over it.

            

    

    

    
      	
               
      

            	
              11.2

            	
              ALTHEA
      Warranty:  ALTHEA represents and warrants that Drug
      Product shall be Produced in accordance with cGMP and the Drug Product
      Specifications at the time of release.  ALTHEA represents and
      warrants that it has obtained (or will obtain prior to Producing Drug
      Product), and will remain in compliance with during the term of this
      Agreement, all permits, licenses and other authorizations (the “Permits”)
      which are required under federal, state and local laws, rules and
      regulations applicable to the Production only of Drug Product as specified
      in the Project Plan; provided, however, ALTHEA shall have no obligation to
      obtain Permits relating to the sale, marketing, distribution or use of
      Bulk Drug Substance or Drug Product or with respect to the Labeling
      of  Drug Product.  ALTHEA makes no representation or
      warranty with respect to the sale, marketing, distribution or use of the
      Bulk Drug Substance or as to printed materials supplied by CLIENT or its
      consignee.  At the time of release, of the Drug Product, ALTHEA
      represents and warrants that such Drug Product shall be free from defects
      in design and workmanship.

            

    

    

    
      	
               
      

            	
              11.3

            	
              Disclaimer of
      Warranties:  Except for those warranties set forth in
      Sections 11.1 and 11.2 of this Agreement, ALTHEA makes no warranties,
      written, oral, express or implied, with respect to Drug Product or the
      Development and Production of Drug Product.  ALL OTHER
      WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, THE IMPLIED
      WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND
      NONINFRINGEMENT HEREBY ARE DISCLAIMED BY ALTHEA.  NO WARRANTIES
      OF ALTHEA MAY BE CHANGED BY ANY REPRESENTATIVES OF
      ALTHEA.  CLIENT accepts Drug Product subject to the terms
      hereof.

            

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              11.4

            	
              CLIENT
      Warranties:  CLIENT warrants that (a) it has the right to
      give ALTHEA any information provided by CLIENT hereunder, and that ALTHEA
      has the right to use such information for the Production of Drug Product,
      and (b) CLIENT has no knowledge of any (i) patents or other intellectual
      rights that would be infringed by ALTHEA’s Production of Drug Product
      under this Agreement, or (ii) proprietary rights of third parties which
      would be violated by ALTHEA’s performance hereunder.  CLIENT
      further warrants that the Bulk Drug Substance provided to ALTHEA hereunder
      (1) conforms to the Bulk Drug Substance Specifications and (2) is not
      adulterated or misbranded within the meaning of the FD&C
      Act.

            

    

    

    

    Article
12,  LIMITATION OF LIABILITY AND WAIVER OF SUBROGATION.

    

    
      	
               
      

            	
              12.1

            	
              Limitation of
      Liability:  CLIENT’s sole and exclusive remedy for breach
      of this Agreement is limited to those remedies set forth in Article 5 and
      at ALTHEA’s decision, in ALTHEA’s sole discretion, to either replace the
      non-conforming Drug Product or reimburse CLIENT for the Purchase Price for
      the non-conforming Drug Product.  Under no circumstances shall
      ALTHEA be liable for loss of use or profits or other collateral, special,
      consequential or other damages, losses, or expenses, including but not
      limited to the cost of cover or the cost of a recall in connection with,
      or by reason of the Production and delivery of Drug Product under this
      Agreement whether such claims are founded in tort or
      contract.  The foregoing constitutes the sole and exclusive
      remedy of CLIENT and the sole and exclusive liability of
      ALTHEA.  All claims by CLIENT for breach or default under this
      Agreement shall be brought within one (1) year after the cause of action
      accrued or shall be deemed waived.

            

    

    

    
      	
               
      

            	
              12.2

            	
              Waiver of
      Subrogation:  All ALTHEA Supplied Components and
      equipment used by ALTHEA in the Production of Drug Product (collectively,
      “ALTHEA Property”) shall at all times remain the property of ALTHEA and
      ALTHEA assumes risk of loss for such property until delivery of Drug
      Product to a common carrier as specified under Section
      2.10.  ALTHEA hereby waives any and all rights of recovery
      against CLIENT and its Affiliates, and against any of their respective
      directors, officers, employees, agents or representatives, for any loss or
      damage to ALTHEA Property to the extent the loss of damage is covered or
      could be covered by insurance (whether or not such insurance is described
      in this Agreement). CLIENT assumes all risk of loss for all CLIENT
      Supplied Components, all Bulk Drug Substance supplied by CLIENT, and all
      Drug Product (collectively, “CLIENT Property”).  CLIENT hereby
      waives any and all rights of recovery against ALTHEA and its Affiliates,
      and against any of their respective directors, officers, employees, agents
      or representatives, for any loss or damage to the CLIENT Property to the
      extent the loss of damage is covered or could be covered by insurance
      (whether or not such insurance is described in this
      Agreement).

            

    

    

    
      	
               
      

            	
              12.3

            	
              Waiver of
      Claims:  In connection with providing Development
      services, ALTHEA represents only that it will use reasonable care in
      providing such information solely as it relates to development studies,
      formulation, primary packaging and manufacturing process
      development.  ALTHEA makes no representation or warranty, and
      CLIENT expressly waives all claims against ALTHEA and its Affiliates, and
      any of their respective agents or employees, arising out of or in
      connection with any claims relating to the stability, efficacy, safety, or
      toxicity of Drug Product developed, formulated, packaged or manufactured
      in accordance with the Development services provided by
      ALTHEA.

            

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              Article
      13, INDEMNIFICATION.

            

    

    

    
      	
               
      

            	
              13.1

            	
              CLIENT
      Indemnification:  CLIENT shall indemnify, defend and hold
      harmless ALTHEA and its Affiliates, and any of their respective directors,
      officers, employees, subcontractors and agents (collectively the
      “Indemnified Parties”) from and against any and all liabilities,
      obligations, penalties, claims, judgments, demands, actions, disbursements
      of any kind and nature, suits, losses, damages, costs and expenses
      (including, without limitation, reasonable attorney’s fees) arising out of
      or in connection with property damage or personal injury (including
      without limitation death) of third parties (collectively “Claims”)
      including without limitation Claims allegedly resulting in whole or in
      part by the negligent acts or omission of the Indemnified Parties or for
      acts or omissions for which the Indemnified Parties otherwise would be
      strictly liable,  in connection with (a) CLIENT’s storage,
      promotion, labeling, marketing, distribution, use or sale of Bulk Drug
      Substance or Drug Product, (b) CLIENT’s negligence or willful misconduct,
      (c) CLIENT’s breach of this Agreement, or (d) any claim that the use,
      sale, Production, marketing or distribution of Bulk Drug Substance or Drug
      Product by ALTHEA or CLIENT violates the patent, trademark, copyright or
      other proprietary rights of any third party, except to the extent any of
      the foregoing (a) or (d) is caused solely by the negligence or willful
      misconduct of the Indemnified Parties or solely by the breach by ALTHEA of
      its obligations under this
Agreement.

            

    

    

    
      	
               
      

            	
              13.2

            	
              ALTHEA
      Indemnification:  ALTHEA shall indemnify, defend and hold
      harmless CLIENT and its Affiliates and any of their respective directors,
      officers, employees, subcontractors and agents from and against any and
      all Claims resulting solely from the Indemnified Parties’ negligence or
      willful misconduct or solely from the ALTHEA’s breach of its obligations
      under this Agreement.

            

    

    

    
      	
               
      

            	
              13.3

            	
              Indemnitee
      Obligations:  A party (the “Indemnitee”) which intends to
      claim indemnification under this Article 13 shall promptly notify the
      other party (the “Indemnitor”) in writing of any action, claim or other
      matter in respect of which the Indemnitee or any of its Affiliates, or any
      of their respective directors, officers, employees, subcontractors, or
      agents, intend to claim such indemnification; provided, however, that
      failure to provide such notice within a reasonable period of time shall
      not relieve the Indemnitor of any of its obligations hereunder except to
      the extent the Indemnitor is prejudiced by such failure.  The
      Indemnitee shall permit, and shall cause its Affiliates, and their
      respective directors, officers, employees, subcontractors and agents to
      permit, the Indemnitor, at its discretion, to settle any such action,
      claim or other matter, and the Indemnitee agrees to the complete control
      of such defense or settlement by the
      Indemnitor.  Notwithstanding the foregoing, the Indemnitor shall
      not enter into any settlement that would adversely affect the Indemnitee’s
      rights hereunder, or impose any obligations on the Indemnitee in addition
      to those set forth herein, in order for it to exercise such rights,
      without Indemnitee’s prior written consent, which shall not be
      unreasonably withheld or delayed.  No such action, claim or
      other matter shall be settled without the prior written consent of the
      Indemnitor, which shall not be unreasonably withheld or
      delayed.  The Indemnitee, its Affiliates, and their respective
      directors, officers, employees, subcontractors and agents shall fully
      cooperate with the Indemnitor and its legal representatives in the
      investigation and defense of any action, claim or other matter covered by
      the indemnification obligations of this Article 13.  The
      Indemnitee shall have the right, but not the obligation, to be represented
      in such defense by counsel of its own selection and at its own
      expense.

            

    

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              13.4

            	
              Injunction:  In
      the event that the Production or sale of a Drug Product is enjoined due to
      alleged infringement by either party of the proprietary rights of a third
      party, such action shall be deemed a breach of this Agreement by CLIENT
      and subject to the terms of Article
3.

            

    

    

    

    Article
14, INSURANCE.

    

    
      	
               
      

            	
              14.1

            	
              CLIENT
      Insurance:  CLIENT shall procure and maintain, during the
      Term of this Agreement and for a period one (1) year beyond the expiration
      date of Drug Product, Commercial General Liability Insurance, including
      without limitation, Product Liability and Contractual Liability coverage
      (the “CLIENT Insurance”).  The CLIENT Insurance shall cover
      amounts not less than one million dollars ($1,000,000) combined single
      limit and shall be with an insurance carrier reasonably acceptable to
      ALTHEA.  ALTHEA shall be named as an additional insured on the
      CLIENT Insurance and CLIENT promptly shall deliver a certificate of CLIENT
      Insurance and endorsement of additional insured to ALTHEA evidencing such
      coverage.  If CLIENT fails to furnish such certificates or
      endorsements, or if at any time during the Term of this Agreement ALTHEA
      is notified of the cancellation or lapse of the CLIENT Insurance, and
      CLIENT fails to rectify the same within ten (10) calendar days after
      notice from ALTHEA, in addition to all other remedies available to ALTHEA
      hereunder, ALTHEA, at its option, may obtain the CLIENT Insurance and
      CLIENT promptly shall reimburse ALTHEA for the cost of the same. Any
      deductible and/or self insurance retention shall be the sole
      responsibility of CLIENT.

            

    

    

    
      	
               
      

            	
              14.2

            	
              ALTHEA
      Insurance:  ALTHEA shall procure and maintain, during the
      Term of this Agreement and for a period of one (1) year beyond the
      expiration date of Drug Product, Commercial General Liability Insurance,
      including without limitation, Product Liability and Contractual Liability
      coverage (the “ALTHEA Insurance”).  The ALTHEA Insurance shall
      cover amounts not less than one million dollars ($1,000,000) combined
      single limit.  CLIENT shall be named as an additional insured on
      the ALTHEA Insurance.

            

    

    

    

    Article
15, GENERAL PROVISIONS.

    

    
      	
               
      

            	
              15.1

            	
              Notices:  All
      notices hereunder shall be delivered by facsimile (confirmed by overnight
      delivery), or by overnight delivery with a reputable overnight delivery
      service, to the following address of the respective
    parties:

            

    

    

    
      	
               
      

            	
              If
      to CLIENT:

            	
              Bio-Path
      Holdings, Inc.

            

    

    12
Greenway Plaza, Suite 1100

    Houston,
TX 77046

    Attn:  Peter
Nielsen

    President
and Chief Executive Officer

    

    
      	
               
      

            	
              Telephone:

            	
              (832)
      971-6616

            

    

    
      	
               
      

            	
              Facsimile:

            	
              (713)
      425-4999

            

    

    

    

    If to
ALTHEA:                      Althea
Technologies, Inc.

    11040
Roselle Street

    San
Diego, CA  92121

    Attn:  Alan
Moore

    Executive
Vice President and Chief Business Officer

    

    
      	
               
      

            	
              Telephone:

            	
              (858)
      882-0123

            

    

    
      	
               
      

            	
              Facsimile:

            	
              (858)
      882-0133

            

    

    

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    For
specific inquiries, the following ALTHEA responsible parties may be contacted
directly:

    

    
      	 
      	
              Project
      Manager

            	
              Chris
      Duffy

            	 
      
	 
      	
              Quality
      Control Manager

            	
              Niels
      King

            	 
      
	 
      	
              Quality
      Assurance Manager

            	
              Elaine
      Sapinoso

            	 
      
	 
      	
              Materials
      Manager

            	
              Melissa
      Rosness

            	 
      

    

    

    For
specific inquiries, the following CLIENT responsible parties may be contacted
directly:

    

    Quality
Assurance/Regulatory Director: Dai-Shan Wong

    

    Notices
shall be effective on the day following the date of transmission if sent by
facsimile, and on the second business day following the date of delivery to the
overnight delivery service if sent by overnight delivery.  A party may
change its address listed above by notice to the other party given in accordance
with this section.

    

    
      	
               
      

            	
              15.2

            	
              Entire Agreement;
      Amendment:  The parties hereto acknowledge that this
      Agreement sets forth the entire agreement and understanding of the parties
      and supercedes all prior written or oral agreements or understandings with
      respect to the subject matter hereof.  No modification of any of
      the terms of this Agreement, or any amendments thereto, shall be deemed to
      be valid unless in writing and signed by an authorized agent or
      representative of both parties hereto.  No course of dealing or
      usage of trade shall be used to modify the terms and conditions
      herein.

            

    

    

    
      	
               
      

            	
              15.3

            	
              Waiver:  None
      of the provisions of this Agreement shall be considered waived by any
      party hereto unless such waiver is agreed to, in writing, by authorized
      agents of both parties.  The failure of a party to insist upon
      strict conformance to any of the terms and conditions hereof, or failure
      or delay to exercise any rights provided herein or by law shall not be
      deemed a waiver of any rights of any party
  hereto.

            

    

    

    
      	
               
      

            	
              15.4

            	
              Obligations to Third
      Parties:  Each party warrants and represents that this
      Agreement is not inconsistent with any contractual obligations, expressed
      or implied, undertaken with any third
party.

            

    

    

    
      	
               
      

            	
              15.5

            	
              Assignment:  This
      Agreement shall be binding upon and inure to the benefit of the successors
      or permitted assigns of each of the parties and may not be assigned or
      transferred by either party without the prior written consent of the
      other, which consent will not be unreasonably withheld or delayed, except
      that no consent shall be required in the case of a transfer to a
      wholly-owned subsidiary or transaction involving the merger, consolidation
      or sale of substantially all of the assets of the party seeking such
      assignment or transfer and such transaction relates to the business
      covered by this Agreement and the resulting entity assumes all the
      obligations under this Agreement.  ALTHEA may, without such
      consent, assign this Agreement to an Affiliate of ALTHEA, provided that
      the assignee assumes all obligations of ALTHEA under this
      Agreement.  No assignment shall relieve any party of
      responsibility for the performance of its obligations
      hereunder.

            

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              15.6

            	
              Successors and
      Assigns:  This Agreement shall be binding upon and shall
      inure to the benefit of the parties hereto, their successors and permitted
      assigns.

            

    

    

    
      	
               
      

            	
              15.7

            	
              Taxes:  CLIENT
      shall pay all national, state, municipal or other sales, use excise,
      import, property, value added, or other similar taxes, assessments or
      tariffs assessed upon or levied against the sale of Drug Product to CLIENT
      pursuant to this Agreement or the sale or distribution of Drug Product by
      CLIENT (or at CLIENT’s sole expense, defend against the imposition of such
      taxes and expenses).  ALTHEA shall notify CLIENT of any such
      taxes that any governmental authority is seeking to collect from ALTHEA,
      and CLIENT may assume the defense thereof in ALTHEA’s name, if necessary,
      and ALTHEA agrees to fully cooperate in such defense to the extent of the
      capacity of ALTHEA, at CLIENT’s expense.  ALTHEA shall pay all
      national, state, municipal or other taxes on the income resulting from the
      sale by ALTHEA of the Drug Product to CLIENT under this Agreement,
      including but not limited to, gross income, adjusted gross income,
      supplemental net income, gross receipts, excess profit taxes, or other
      similar taxes.

            

    

    

    
      	
               
      

            	
              15.8

            	
              Independent
      Contractor:  ALTHEA shall act as an independent
      contractor for CLIENT in providing the services required hereunder and
      shall not be considered an agent of, or joint venturer with,
      CLIENT.  Unless otherwise provided herein to the contrary,
      ALTHEA shall furnish all expertise, labor, supervision, machining and
      equipment necessary for performance hereunder and shall obtain and
      maintain all building and other permits and licenses required by public
      authorities.

            

    

    

    
      	
               
      

            	
              15.9

            	
              Governing
      Law:  This Agreement is being delivered and executed in
      the State of California. In any action brought regarding the validity,
      construction and enforcement of this Agreement, it shall be governed in
      all respects by the laws of the State of California, without regard to the
      principals of conflicts of laws.  The courts of the State of
      California shall have personal jurisdiction over the parties hereto in all
      matters arising hereunder, and venue for such suit will be in a state or
      federal court for the City of San Francisco,
  California.

            

    

     

    
       

      
        	 	
                15.10

              	
                Attorney’s
      Fees:  The successful party in any litigation or other
      dispute resolution proceeding to enforce the terms and conditions of this
      Agreement shall be entitled to recover from the other party reasonable
      attorney’s fees and related costs involved in connection with such
      litigation or dispute resolution
proceeding.

              

      

       

      

      
        	 	
                15.11

              	
                Severability:  In
      the event that any term or provision of this Agreement shall violate any
      applicable statute, ordinance, or rule of law in any jurisdiction in which
      it is used, or otherwise be unenforceable, such provision shall be
      ineffective to the extent of such violation without invalidating any other
      provision hereof.

              

      

      

      
        	 	
                15.11

              	
                Headings,
      Interpretation:  The headings used in this Agreement are
      for convenience only and are not part of this
  Agreement.

              

      

      

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
parties hereto have each caused this Drug Product Development and Clinical
Supply Agreement to be executed by their duly-authorized representatives as of
the Effective Date above written.

    

    
      	
              BIO-PATH
      HOLDINGS, INC.

               

              By:           /s/
      Peter H. Nielsen

               

              Name:                      Peter
      H. Nielsen

               

              Title:                      CEO
      and President

            	
              ALTHEA
      TECHNOLOGIES, INC.

               

              By:           /s/
      W. Alan Moore

               

              Name:                      W.
      Alan Moore

               

              Title:                      Executive
      Vice President and CBO

            

    

    

    

    

    

     

    
      
         

      

      
        19

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