Document:

Employment
      Agreement

     

    Decided
      by the Board of Directors, Mr. Liu, Changzhen is appointed as the Chairman
      of
      China Ginseng Holdings, Inc.

    

    The
      monthly wage will be RMB$3,000. Permanent employment period will be three years
      from March 2005 to March 2008. According to the law of the state, employment
      health insurance will be provided.

     

    Employee:
      Liu, Changzhen

    China
      Ginseng Holdings, Inc.

    March
      12,
      2005Employment
      Agreement

     

    Decided
      by the Board of Directors, Mr. Wang, Shuchun is appointed as the Chief Executive
      Officer of China Ginseng Holdings, Inc.

    

    The
      Monthly wage will be RMB $3,000. Employment period will be three years from
      December 2005 to December 2008. According to the law of the state, employment
      health insurance will be provided.

     

    Employee:
      Wang, Shuchun

    China
      Ginseng Holdings, Inc.

    November
      3, 2005Individual
      Farmer Ginseng Growing Contract

     

    Company:
      Jilin Yanbian Huaxing Ginseng Company Ltd.

    Farmer:
      Pan Shang De

    

    In
      order
      to carry out the company’s mission, promote brand name and market acceptance, as
      well as to develop the second environment friendly high-yield ginseng
      plantation, support local economic development; the company decided to provide
      full support and assistance of its man power, farming supplies and technology
      to
      farmers per local government’s request. The contract will be executed according
      to the following terms:

    

    1.
      Based
      on farmer’s terrain, soil condition, Company will provide seed, seedlings based
      on the current market price.

    

    2.
      Provide all around technology from excavation, seeding, planting, fertilization,
      pest control to site management; Company also provides technical training to
      Farmer periodically.

    

    3.
      Company will arrange ginseng inspections and schedule for harvesting, without
      company’s consent, Farmer can not harvest the corps nor alter plantation
      area.

    

    4.
      After
      harvesting, Company will weigh and purchase the total ginseng crops. Company
      will purchase ginseng with the price $1-3 above current market price for every
      kilo, without company’s consent, Farmer can not sell to other parties.

     

    By:
      Jilin
      Yanbian Huaxing Ginseng Company Ltd. (with seal)

    

    By:
      S/S
      Pan Shang De   
Date:
      March 31, 2005US
      China Ginseng Holding,
      Inc

    a
      Nevada
      corporation

    

    $2,000,000

    

    Units
      of Common Stock & Warrants

    

    MANAGING
      PLACEMENT AGENT AGREEMENT

     

    US
      China
      Ginseng Holding, Inc.

    1208
      RM,
      A Ji Yu Building 64 Jei Fang Da Road

    Chang
      Chun City, China

    

    July
      29,
      2005

    

    White
      Pacific Securities, Inc.

    231
      Sansome Street, 4th
      Floor

    San
      Francisco, CA 94104

     

    Gentlemen:

    

    This
      Managing Placement Agent Agreement (this “Agreement”) is entered into as of the
      date set forth above among US China Ginseng Holding, Inc., a Delaware
      corporation (“USCG” or the “Company”), engaged in the business of medical
      imaging and information management in the ginseng
      ,
      and White Pacific Securities, Inc. (“WP” or “you” or the “Managing Placement
      Agent”).

    

    It
      is
      contemplated that the Managing Placement Agent will place, exclusively, and
      on a
      best efforts basis, 6,060,606
      shares of common stock
      of the
      Company and warrants
      to purchase 2,020,202 shares
      of
      common stock of the Company (the “Warrants”). The shares of common stock and
      Warrants to be issued will be combined into 2,020,202
      units
      (the
“Units”). Each Unit will consist of three shares of common stock and a Warrant
      to purchase two shares of common stock. The Units will be sold at a price of
      $0.99
      per unit,
      for
      gross proceeds of up to $2.0
      million.
      The
      Warrants will have an exercise
      price of $0.39
      per
      share of common stock and an expiration
      period of five (5) years.
      There
      shall be a minimum
      offering size of $250,000.
      The
      Offering will be made pursuant to Rule 506 of Regulation D of the Securities
      Act
      of 1933, as amended.

     

    
      
        
        

      

      
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    The
      Holders of the Units shall have certain registration rights more fully described
      in Section 3.16 of this Agreement and in the Memorandum (defined in the
      paragraph below), the related Subscription and Suitability Agreement and the
      related Registration Rights Agreement.

    

    The
      Units
      will be offered and sold in the Offering pursuant to the terms and conditions
      described in the Confidential Private Placement Memorandum, dated no later
      than
      January 31, 2006 (references to which shall be deemed to include any and all
      supplements and amendments thereto and all financial statements, if any, and
      exhibits that are included or incorporated by reference therein, referred to
      collectively herein as the “Memorandum”).
      The
      terms of the Units and the rights of the Holders thereof shall be as described
      in the Memorandum and the documents attached as exhibits or appendices
      thereto.

    

    The
      Units
      will not be registered under the Securities Act of 1933, as amended (the “Act”)
      or any state securities or “blue sky” laws and will be offered and sold in
      reliance upon the exemptions afforded by Section 4(2) of the Act and Rule 506
      of
      Regulation D promulgated thereunder and by similar exemptions afforded by state
      securities or “blue sky” laws. The subscribers for the Units (the “Investors”),
      each of whom will be required to execute and deliver the set of subscription
      documents that accompanies the Memorandum (the “Subscription Documents”), will
      be issued the Units.

    

    All
      capitalized terms not otherwise defined in this Agreement shall have the
      meanings ascribed to them in the Memorandum. This Agreement is intended to
      incorporate as contractual obligations, for the benefit of the Managing
      Placement Agent, its Selected Brokers and any of the Investors in the Offering,
      all the obligations of the Company pursuant to the Memorandum (including,
      without limitation, the obligations of the Company pursuant to any registration
      rights described therein), and constitutes agreement thereto by the Company.
      To
      the extent there is any conflict between the provisions of this Agreement and
      the Memorandum, the terms of this Agreement shall govern.

     

    Section
      1. Appointment
      of Managing Placement Agent and Terms of Offering

    

    1.1  
      Appointment of Managing Placement Agent. You
      are
      hereby appointed as the exclusive Managing Placement Agent for the Offering
      during the term of the Offering Period (as defined in Section 1.4 below) for
      the
      purpose of finding subscribers for the Units for the account of the Company.
      Subject to the performance by the Company of its obligations and to the
      completeness and accuracy of the representations and warranties set forth
      herein, you hereby accept such appointment and agree, upon the terms and
      conditions set forth in this Agreement, to use our best efforts during the
      Offering Period to find subscribers to Units.

    

    1.2
      Appointment of Selected Brokers. You
      may,
      in your sole discretion, retain such other registered broker-dealers who are
      members in good standing of the National Association of Securities Dealers,
      Inc.
      (“NASD”) or banks exempt from broker-dealer registration, to assist you in your
      efforts to place the Offering (the “Selected Brokers”). You will enter into an
      agreement with each Selected Broker in a form that shall be reasonably approved
      by the Company. Each such agreement shall provide for the Selected Broker to
      make the same representations, warranties and covenants as are made by you
      in
      this Agreement and to indemnify the Company in accordance with Section 7.2
      hereof.

     

    
      
        
        

      

      
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    1.3
      Solicitation of Subscriptions. You
      hereby agree to solicit, as an independent contractor and not as an agent of
      the
      Company, Investors acceptable to the Company in accordance with the terms of
      the
      Memorandum, the LOI and this Agreement.

    

    1.4
      Offering Period. The
      Offering shall terminate six (6) months following the first date on which the
      final printed Memorandum (in the form approved by you and ready for delivery
      to
      your clients accompanied by an initial blue sky survey, such survey to be
      provided to the Company upon completion of the Memorandum) is made available
      to
      you (the “Commencement Date”) unless extended by mutual agreement of the
      parties. This period (and any extensions thereof) shall be referred to as the
      “Offering Period”. The date upon which the Offering Period ends shall be
      referred to as the “Termination Date”. However, it is agreed that your
      exclusivity for this Offering will be terminated in the event that at least
      $250,000 in gross proceeds do not result from the Offering within 60 days from
      the Commencement Date. 

     

    
      1.5
        Closings.

       

    

    1.5.1 Closings.
      

     

    1.5.1.a
      For
      the first $250,000 in gross proceeds: WP
      shall
      deliver the investor checks to the banking institution escrow agent described
      in
      Section 1.5.4 below. 

     

    1.5.1.b
      After
      the achievement of the minimum Offering size of $250,000 in gross
      proceeds:
      Within
      five (5) business days of WP’s receipt of an Acceptance Notice, WP and the
      Company shall complete a closing (each one, including the Final Closing (defined
      below), a “Closing”) at which WP shall deliver the Investor checks for the
      purchase of the Units to the Company. 

    

    The
      Company thereafter within ten (10) days of the Closing, shall deliver the
      appropriate Certificates to WP for delivery to the Investors. The first such
      Closing shall be deemed the “Initial Closing” and would represent such closing
      after the initial $250,000 gross proceeds minimum Offering size is achieved,
      whereby the financial institutional escrow agent shall release the gross
      proceeds to the Company.

    

    1.5.2 Final
      Closing. On
      the
      Termination Date (or such earlier date as subscriptions for the maximum number
      of Units have been accepted), all pending accepted subscriptions shall be
      completed at a final Closing (the "Final Closing"). The Company shall fix a
      date
      no later than ten (10) days after the Termination Date on which the Final
      Closing will take place (or, if the tenth day is not a business day, the next
      business day) (the "Final Closing Date"). 

    

    1.5.3 Closing
      Procedures.
      Each
      Closing will take place at your offices, or at such other place as shall be
      mutually agreed upon by the Company and you, at which time Investor checks
      in
      payment of the purchase price for the Units will be made to the Company;
      provided, that the closing of any subscriptions shall not be deemed final unless
      and until such check has cleared and the Company receives good funds for the
      purchase price for any Units sold at such Closing. At each Closing, the Company
      shall pay the Managing Placement Agent the compensation set forth in Section
      1.7.

     

    
      
        
        

      

      
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          3

        
          

        

      

      
        
        

      

    

    

    1.5.4
      Minimum
      Level of Gross Proceeds.
      It is
      agreed that the initial gross proceeds of the Offering will be deposited in
      an
      interest bearing escrow account managed by a mutually acceptable independent
      banking institution escrow agent.. The net proceeds and proper commissions
      and
      fees to the Company and WP, respectively, will be released from this escrow
      account upon the achievement of the minimum Offering size, $250,000 in gross
      proceeds. In the event that the minimum Offering size is not achieved by the
      Termination Date, then the gross proceeds shall be returned to the Investors,
      plus interest earned on the funds. It is mutually agreed that upon achieving
      and
      closing of the initial minimum Offering size, the next $100,000 raised shall
      be
      immediately disbursed to WP and/or its designee(s) for WP’s going public service
      rendered which is more fully described in a separted contract titled OTCBB
      Engagement Letter dated July 16, 2005. 

    

    1.6
      Due Diligence.
      You
      agree to conduct your own due diligence and investigation of the company to
      the
      extent you deem necessary. 

    

    1.7
      Compensation to the Managing Placement Agent.
      

    

    1.7.1 Commissions
      and Fees. Simultaneously
      with the execution of the Managing Placement Agent Agreement, the Company agrees
      to pay WP up-front fees of $12,500 (twelve thousand five hundred dollars) in
      same day funds and, if requested, agree to pay WP’s counsel a retainer of
      $5,000. In addition, WP shall receive upon each closing of the Offering a cash
      commission equal to 10.0% of the gross proceeds raised by WP and a
      non-accountable expense allowance equal to 3.0% of the gross proceeds raised
      by
      WP. Each closing shall occur when at least $25,000 of additional gross proceeds
      (from the previous closing) are received by Managing Placement Agent, but only
      upon the achievement of the minimum Offering size as described in Section 1.5.4
      above. In addition, WP shall be issued warrants to purchase the common stock
      of
      USCG at the rate of 10,000 warrants per 100,000 common stock shares sold by
      WP
      in this Offering, and at an exercise price of $0.39 per share. These warrants
      shall have the same terms and registration rights as the Warrants. The Company
      and WP agree that this Offering is on an exclusive basis.

     

    Provided
      WP raises a minimum of $1,500,000 through the Offering, WP is hereby given
      the
      right of first refusal, for a period of 18 months after the Termination Date
      of
      this Agreement, to act in the capacity of placement agent and/or underwriter
      on
      future private placement offerings and initial and secondary public offerings
      of
      the Company. WP will not be entitled to any consideration on funds raised in
      any
      offering in which it chooses not to participate.

     

    1.7.2
       Expenses.
      USCG
      shall bear all costs and expenses incident to the issuance, offer, sale and
      delivery of the securities in the proposed Offering, defined as all expenses
      and
      fees incident to the preparation and printing of the Private Placement
      Memorandum, the costs and counsel fees of qualification under state securities
      laws, fees and disbursements of counsel and accountants for USCG, Blue Sky
      registration fees, road show and travel related expense and miscellaneous
      out-of-pocket expenses incurred in connection with this engagement. To the
      extent blue-sky work is undertaken by counsel to WP, it shall be separately
      billed to USCG and shall be the financial obligation of USCG. If requested
      to
      perform blue-sky legal services by USCG, USCG will pay a retainer to WP’s
      counsel before such counsel shall commence such blue-sky legal services. Such
      amount shall be credited against the final amount due such counsel for its
      blue-sky fees and expenses. WP shall not be responsible for any expense of
      USCG
      or others for any charges or claims related to the proposed financing or
      otherwise if the sale of securities contemplated
      by
      this letter is not consummated. If the proposed Offering is not completed
      because of USCG’s actions or the failure to take such actions as are reasonably
      required hereunder and WP is prepared to perform in accordance with the terms
      herein, then, in either such case, USCG agrees to promptly pay WP its actual
      expenses. USCG shall pay the expenses of preparation of bound volumes to be
      presented to WP and its counsel and all USCG travel and other expenses related
      to road shows, if any, for the Offering. USCG will be required to pay for all
      expenses in excess of $500 in advance. Any expenses incurred by White Pacific
      on
      behalf of USCG, related to this engagement will be invoiced and due upon
      receipt. Expenses due White Pacific will be deducted from the proceeds of a
      Close. Any out-of-pocket expenses above $1,000 will need the approval of the
      Company in writing. In addition, any out-of-pocket expenses less than $1,000
      that, together with previous expenses, exceed $1,500 for a 7 consecutive day
      period, will need the approval of the Company in writing. Total travel, meals
      and entertainment out-of-pocket expenses shall be limited to a maximum of $3,000
      per month until the minimum of $250,000 in gross proceeds is raised by WP,
      unless mutually agreed upon by WP and the Company.

     

    
      
        
        

      

      
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    1.7.3 Payment
      of Commissions.
      Payment
      of all commissions is subject to the following conditions:

    

    No
      commission will be payable with respect to any subscriptions for Units which
      are
      rejected by the Company; and no commissions will be payable to you with respect
      to any sale of Units sold through you until such time as the Company has
      received the total proceeds of any such sale.

     

    Section
      2. Representations
      and Warranties of the Company 

    

    The
      Company represents, warrants and agrees with you for your benefit that, except
      as specifically disclosed in the Memorandum:

    2.1 Power
      and Authority of the Company.
      The
      Company is duly organized and validly
      existing and in good standing as a corporation under the laws of the State
      of
      Nevada, with full power and authority to conduct business as described in the
      Memorandum. The Company has, and at each Closing will have, full power and
      authority to conduct all the activities conducted by it, to own or lease all
      the
      assets owned or leased by it and to conduct its business as described in the
      Memorandum. The Company is, and at each Closing Date will be, duly licensed
      or
      qualified to do business and in good standing as a foreign corporation in all
      jurisdictions in which the nature of the activities conducted by it or the
      character of the assets owned or leased by it makes such licensing or
      qualification necessary. Complete and correct copies of the Certificate of
      Incorporation and the Bylaws of the Company and all amendments thereto will
      be
      delivered to you and your counsel, and, except as specifically contemplated
      by
      the Memorandum or this Agreement, no changes therein will be made subsequent
      to
      the date hereof and prior to the Final Closing. 

     

    
      
        
        

      

      
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    2.2 Subsidiaries.
      The
      Company has a majority stake in one subsidiary as of the date of this Agreement,
      and is identified as follows:Yan Bian Hua Xing Ginseng Industry., Company
      Limited, located in 1208 RM, A Ji Yu building 64 Jei Fang Da Road, Chang Chun
      City, China. A People’s Republic of China registered company.

     

    2.3
       Validity
      of Issuance of Securities.
      The
      outstanding shares of Common Stock of the Company have been, and the Common
      Stock shares to be issued due to the exercise of Warrants issued by the Company
      pursuant to the Offering upon such issuance will be, when paid for as provided
      in the Memorandum, duly authorized, validly issued, fully paid and
      non-assessable, and, except as provided in Section 3.11 hereof, will not be
      subject to any preemptive or similar rights. Except as specifically described
      in
      Sections 3.11 and 3.12 hereof, the Company does not have outstanding, and at
      each Closing will not have outstanding, any options to purchase, or any rights
      or warrants (other than the Employee Stock Options), to subscribe for, or any
      securities or obligations convertible into (other than the Employee Stock
      Options), or any contracts or commitments to issue or sell, any shares of Common
      Stock or Common Stock or any warrants, convertible securities or
      obligations.

    

    2.4 Adequacy
      of the Memorandum.
      The
      Company will have prepared and delivered to you, within 30 days from the signing
      of this Agreement, the Memorandum. The Memorandum will not, and on any Closing
      Date will not, contain any untrue statement of a material fact or omit to state
      any material fact required to be stated therein or necessary to make the
      statements therein not misleading. Every contract or other document required
      by
      the Act or any regulations promulgated thereunder (the "Regulations") to be
      described in or attached as an exhibit to the Memorandum or otherwise made
      available to Investors will be so described, attached or made available. There
      are no material contracts or other agreements to which the Company is a party
      which will not be described in the Memorandum and/or delivered to the Managing
      Placement Agent for review. All such contracts or other agreements to which
      the
      Company is a party will be duly authorized, executed and delivered by the
      Company, constitute valid and binding agreements of the Company and are
      enforceable against the Company in accordance with the terms
      thereof.

    

    2.5 Financial
      Statements.
      The
      financial statements of the Company (including the related notes and supporting
      schedules, if any, and the disclosure related thereto contained in the
      Memorandum) will be materially true and correct when viewed as a whole, and
      will
      adequately and accurately reflect the financial condition of the Company in
      accordance with past practices at the dates and for the periods
      indicated.

    

    2.6 Tax
      Returns.
      The
      Company has filed all income, franchise, sales and other tax returns required
      to
      be filed through the date hereof and has paid all taxes shown as due thereon,
      and no tax deficiency has been determined adversely to the Company which has
      had
      (nor does the Company have any knowledge of any disputes pending or threatened
      relating to a tax deficiency which, if determined adversely to the Company,
      might have) a material adverse effect on the earnings, affairs or business
      prospects of the Company ("Material Adverse Effect").

     

    
      
        
        

      

      
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    2.7 Due
      Authorization and Enforceability of This Agreement.
      This
      Agreement has been duly and validly authorized, executed and delivered by or
      on
      behalf of the Company and constitutes the valid, binding and enforceable
      agreement of the Company, except to the extent that (i) the enforceability
      of
      this Agreement may be limited by bankruptcy, insolvency, reorganization,
      moratorium or similar laws affecting the rights of creditors generally or by
      general principles of equity (regardless of whether such enforcement is
      considered in a proceeding in equity or at law), and (ii) the indemnification
      provisions of this Agreement may be held to violate public policy (under either
      state or federal law) in the context of the offer or sale of securities. The
      performance of this Agreement and the consummation of the transactions
      contemplated hereby (x) will not result in the creation or imposition of any
      lien, charge or encumbrance upon any of the assets of the Company pursuant
      to
      the terms or provisions of, or result in a breach or violation of any of the
      terms or provisions of, or constitute a default under, or give any other party
      a
      right to terminate any of its obligations under, or result in the acceleration
      of any obligation under, (A) the Certificate of Incorporation or Bylaws of
      the
      Company, (B) any contract or other agreement to which the Company is a party
      or
      by which the Company, or any of its properties is bound or affected, or (y)
      violate or conflict with any judgment, ruling, decree, order, statute, rule
      or
      regulation of any court or other governmental agency or body applicable to
      the
      business or properties of the Company.

    

    2.8 No
      Material Adverse Change.
      Since
      the respective dates as of which information will be given in the Memorandum,
      there will not be any material adverse change in the condition, financial or
      otherwise, except as set forth in or contemplated in the Memorandum, (i) there
      will not be any change in the capitalization of the Company, or any material
      change in the business, properties, business prospects, condition (financial
      or
      otherwise) or results of operations of the Company, arising for any reason
      whatsoever other than in the ordinary course of business; (ii) the Company
      will
      not incur any material liabilities or obligations, direct or contingent, nor
      has
      it entered into nor will it enter into any material transactions other than
      pursuant to this Agreement and the transactions referred to herein or as
      specifically contemplated in the Memorandum; and (iii) the Company has not
      and
      will not have paid or declared any dividends or other distributions of any
      kind
      on any class of its capital stock. The Company does not anticipate any material
      adverse changes in the Company's business, prospects or financial condition,
      taken as a whole, within the next twelve months.

    

    2.9 Absence
      of Legal or Contractual Conflicts.
      The
      execution and delivery of this Agreement by the Company, and the consummation
      of
      the transactions contemplated in the Memorandum, will not, or with the passage
      of time or the giving of notice would not, constitute a breach of, default
      under
      or violation of (i) any statute, indenture, mortgage, deed of trust, voting
      trust, note, lease or other agreement or any instrument to which the Company
      is
      or will be a party or by which it or its property is or will be bound, or (ii)
      any order, rule or regulation applicable to the Company of any court or any
      governmental body or administrative agency having jurisdiction over its
      properties or businesses.

     

    
      
        
        

      

      
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    2.10 Governmental
      Consents.
      No
      consent, approval, authorization or order of any court or governmental agency
      or
      body has been or is required for the performance of this Agreement and the
      consummation of the transactions contemplated in this Agreement or in the
      Memorandum by the Company, the absence of which would have a materially adverse
      impact on the Company, except such as have been or are to be obtained by you
      under state securities or "blue sky" laws.

    

    2.11 Adverse
      Claims.
      Except
      as what will specifically be described in the Memorandum, there is not pending,
      threatened or contemplated any action, suit or proceeding before or by any
      court
      or other governmental body against the Company and no default exists in the
      due
      performance and observance of any material obligation, term, covenant or
      condition of any agreement or instrument to which the Company is or may be
      a
      party, or by which it is bound that is not referred to in the Memorandum and
      that is likely to result in any Material Adverse Effect.

    

    2.12 Investment
      Company.
      On the
      date hereof and on each Closing Date, the Company is not and will not be an
      investment company as that term is defined in the Investment Company Act of
      1940.

    

    2.13 Offers.
      Offers,
      offers to sell, offers for sale, sales or attempt to dispose of any Units to
      any
      person made prior to the Offering Period upon the authority of the Company
      are
      disclosed and attached in Exhibit A.

    

    2.14 Internal
      Accounting Controls.
      The
      Company maintains a system of internal accounting control sufficient to provide
      reasonable assurance that (i) transactions are executed in accordance with
      management's general or specific authorization; (ii) transactions are recorded
      as necessary to permit preparation of financial statements in conformity with
      generally accepted accounting principles and to maintain accountability for
      assets; (iii) access to assets is permitted only in accordance with management's
      general or specific authorization; and (iv) the recorded accountability for
      assets is compared with existing assets at reasonable intervals and appropriate
      action is taken with respect to any differences and will work to continuously
      improve such system. 

    

    2.16 No
      Legal Actions.
      Except
      as will be specifically described in the Memorandum, there are no actions,
      suits
      or proceedings pending or, to the Company's knowledge, threatened against or
      affecting the Company, its assets, or any of its officers in their capacity
      as
      such, before or by any Federal or state court, commission, regulatory body,
      administrative agency or other governmental body, domestic or foreign, wherein
      an unfavorable ruling, decision or finding would be likely to have a Material
      Adverse Effect on the Company.

    
      
        
        

      

      
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    2.17 Compliance
      with Laws and Contracts.
      Except
      as will be disclosed in the Memorandum and/or provided to you, the Company
      has,
      and at each Closing will have: (i) all governmental licenses, permits, consents,
      orders, approvals and other authorizations necessary to carry on its business
      as
      contemplated in the Memorandum, (ii) complied in all material respects with
      all
      laws, regulations and orders applicable to it or its business and (iii)
      performed all of its material obligations required to be performed by it, and
      is
      not, and at each Closing will not be, in default, under any indenture, mortgage,
      deed of trust, voting trust agreement, loan agreement, bond, debenture, note,
      agreement, lease contract, lease, contract or other agreement or instrument
      (collectively, a "contract or other agreement") to which it is a party or by
      which its property is bound or affected. To the best knowledge of the Company,
      no other party under any contract or other agreement to which it is a party
      is
      in default in any respect thereunder. The Company and each Subsidiary is not,
      and at each Closing will not be, in violation of any provision of its
      Certificate of Incorporation or Bylaws.

    

    2.18 Accuracy
      of Representations.
      No
      statement, representation, warranty or covenant made by the Company in this
      Agreement or made in any certificate or document required by this Agreement
      to
      be delivered to you was or will be, when made, inaccurate, untrue or incorrect
      in any material respect.

    

    2.19 Intellectual
      Property.
      The
      Company directly owns, or is licensed or otherwise has the full exclusive right
      to use, all material trademarks and trade names which are used in or necessary
      for the conduct of its business except as may be described in the Memorandum.
      The Company owns or possesses adequate and sufficient rights to use all
      intellectual property as currently used or proposed to be used by the Company
      which is material to its current or proposed business, and no third parties
      have
      any rights to, and there are no infringement actions involving, any such
      intellectual property which could materially adversely affect the use thereof
      by
      the Company. Except as may be specifically described in the Memorandum, no
      claims have been asserted by any person to the use of any such intellectual
      property or challenging or questioning the validity or effectiveness of any
      such
      intellectual property. The use, in connection with the business and operations
      of the Company of such intellectual property does not, to the Company's
      knowledge, infringe on the rights of any person.

    

    2.20 Environmental
      Permits.
      The
      Company has obtained all permits, licenses and other authorizations that are
      required under, and is otherwise in compliance with, all environmental laws
      relating directly to the Company's manufacture, storage, transportation and
      sale, and the use by others as intended by the Company, of the Company's
      products, including but not limited to the Federal Water Pollution Control
      Act
      (33 U.S.C. § 1251 et seq.), Resource Conservation & Recovery Act (42
      U.S.C. § 6901 et seq.), Safe Drinking Water Act (21 U.S.C. § 349, 42
      U.S.C. §§ 201, 300f), Toxic Substances Control Act (15 U.S.C. § 2601
      et seq.), Clean Air Act (42 U.S.C. § 7401 et seq.), Comprehensive
      Environmental Response, Compensation and Liability Act (42 U.S.C. § 9601 et
      seq.), and any other laws relating to emissions, discharges, releases or
      threatened releases of pollutants, contaminants, chemicals or industrial, toxic
      or hazardous substances or wastes into the environment (including, without
      limitation, ambient air, surface water, ground water or land), or otherwise
      relating to the manufacture, processing, distribution, use, treatment, storage,
      disposal, transport or handling of pollutants, contaminants, chemicals or
      industrial, toxic or hazardous substances or wastes, or petroleum and related
      products or under any regulation, code, plan, order, decree, judgment,
      injunction, notice or demand letter issued, entered, promulgated or approved
      thereunder (collectively, the "Environmental Laws"), except as otherwise set
      forth in the Memorandum or to the extent failure to have any such permit,
      license or authorization or failure to comply, individually or in the aggregate,
      does not have a material adverse effect.

     

    
      
        
        

      

      
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    2.21 Environmental
      Compliance.
      To the
      best of the Company's knowledge, there are no past or present events,
      conditions, circumstances, activities, practices, incidents, actions, or plans
      relating to the business as presently being conducted by the Company that
      interfere with or prevent compliance or continued compliance with the
      Environmental Laws, or which would be reasonably likely to give rise to any
      legal liability (whether statutory or common law) or otherwise would be
      reasonably likely to form the basis of any claim, action, demand, suit,
      proceeding, hearing, notice of violation, study, investigation, remediation
      or
      cleanup based on or related to the generation, manufacture, processing,
      distribution, use, treatment, storage, disposal, transport or handling, or
      the
      emission, discharge, release into the workplace, the community or the
      environment of any pollutant, contaminant, chemical or industrial, toxic, or
      hazardous substance or waste, or petroleum and related products, except for
      any
      liabilities or any claims, demands or other actions specified above that will
      not individually or in the aggregate have a Material Adverse Effect, and no
      asbestos-containing material and no underground or above-ground tanks are,
      to
      the best of the Company's knowledge, located on property owned or leased by
      the
      Company and none have been previously removed or filled by the Company or any
      predecessor of the Company.

    

    2.22 No
      Brokers or Finders.
      Other
      than stated in Section 1.7.1 of this Agreement, there are no contracts,
      agreements or understandings between the Company and any person (other than
      the
      Managing Placement Agent) that would give rise to a valid claim against the
      Company or the Managing Placement Agent for a brokerage commission, finder's
      fee
      or like payment in connection with the transactions contemplated by this
      Agreement. The Company does not have any obligations to any party which might
      cause the transactions contemplated herein to be an improper usurpation of
      a
      corporate opportunity owed to another party or any other type of breach of
      an
      obligation to another party.

    

    2.23 No
      NASD Membership.
      No
      officer or director of the Company is a member of the NASD or an employee or
      associated person of a member of the NASD.

    

    2.24 Insurance.
      The
      Company has no D&O Insurance currently, however the Company will make a
      decision shortly after closing of this Offering to determine if such insurance
      would be necessary.

    2.25 Confidentiality
      Agreements.
      Each
      officer, director and stockholder (to the extent that such stockholder has
      been
      involved in the operations of the Company or any predecessor to the Company)
      of
      the Company and each employee of the Company or any predecessor to the Company,
      who is or has been involved in the design and or development of any software,
      website or other intellectual property developed, marketed, licensed or sold
      by
      the Company has, or prior to the Initial Closing shall have, executed a
      confidentiality agreement in a form and substance reasonably satisfactory to
      the
      Managing Placement Agent pursuant to which each such person acknowledges and
      agrees that any and all rights to such software are the sole and exclusive
      property of the Company.

     

    
      
        
        

      

      
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          10

        
          

        

      

      
        
        

      

    

    

    2.26 Certain
      Transactions.
      The
      section of the Memorandum entitled "Management Relationships, Transactions
      and
      Remuneration" will be complete and accurate in all material
      respects.

     

    
      Section
        3.
        Covenants
        of the Company.

    

    

    The
      Company covenants with you as follows:

    

    3.1 Amendment
      of Memorandum.
      Upon
      the occurrence of any event which would cause the Memorandum to include during
      the Offering Period an untrue statement of a material fact or omit to state
      any
      material fact necessary to make the statements therein not misleading, the
      Company will promptly notify you of the event. The Company will immediately
      prepare and furnish to you such number of copies as you may request of an
      amendment or amendments of, or a supplement or supplements to, the Memorandum
      (in form and substance satisfactory to you) which will amend or supplement
      the
      Memorandum so that as amended or supplemented it shall not contain any untrue
      statement of a material fact or omit to state any material fact necessary to
      make the statements therein not misleading.

    

    3.2 Compliance
      with Securities Laws.
      The
      Company shall take all reasonable steps necessary to cause the sale of the
      Units
      to take place in a manner that will permit reliance upon Regulation D
      promulgated under the Act and will file the required Form D in a timely fashion.
      The Company will secure or cause "blue sky" counsel to secure on its behalf
      exemptions from qualification or registration of the Units under the securities
      or "blue sky" laws of such states as may be reasonably designated by you, and
      will make such applications, file such documents, and furnish such information
      as may reasonably be required for that purpose. The Company will cause its
      blue
      sky counsel (which may be counsel to the Managing Placement Agent) to provide
      to
      you for your reliance a true and correct "Blue Sky Memorandum" and supplements
      thereto in customary form upon which you may rely in all respects as to state
      qualifications and conditions for sale of the Units. The officers, directors
      and
      promoters of the Company will comply with applicable "blue sky" escrow
      requirements, including those pertaining to the escrow of Units, provided such
      escrow shall in no event extend beyond a period of two years.

    

    3.3 Due
      Diligence Inquiry.
      Upon
      request by you, the Company will make reasonable effort to furnish you
      information necessary in your judgment, or in the judgment of your counsel,
      to
      confirm the continued fairness, accuracy and completeness of the Memorandum
      in
      all material respects during the Offering Period.

    

    3.4 Reports
      and Other Information.
      The
      Company will, as long as any Units may remain outstanding, furnish directly
      to
      you one (1) copy of each report furnished to Investors at the time such report
      is furnished to the Investors.

     

    
      
        
        

      

      
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          11

        
          

        

      

      
        
        

      

    

     

    3.5 Delivery
      of Sales Material.
      The
      Company will deliver to you, from time to time, all sales material (whether
      designated solely for broker-dealer use or otherwise) proposed to be used or
      delivered in connection with the offering of the Units.

    

    3.6 Limited
      Liability and Company Status.
      The
      Company will take all steps necessary to preserve, to the extent possible,
      the
      limited liability of the Investors and its status and good standing as a
      corporation.

    

    3.7 Notification
      of Changes.
      The
      Company will notify you immediately of any change having or which is likely
      to
      have a Material Adverse Effect relating to any of the Company's representations,
      warranties, covenants or agreements contained herein that occurs at any time
      prior to the Final Closing.

    

    3.8 Use
      of Proceeds.
      The
      Company will use the net proceeds received from the issuance of the Units in
      the
      manner specified in the Memorandum. 

    

    3.9 Communication.
      During
      the Offering Period, the Company shall not communicate directly with potential
      investors introduced by you, except in your presence or as you instruct. All
      inquiries concerning the Offering received by the Company shall be immediately
      referred to you or as you instruct.

    

    3.10 Copies
      and Communications.
      The
      Company shall supply you copies of all intended communications to investors
      twenty-four (24) hours prior to mailing for a period of one (1) year following
      the Termination Date.

    

    3.11 Prior
      Notice.
      During
      the Offering Period, the Company will not sell any equity or debt securities
      or
      securities convertible into equity securities of the Company (or its
      predecessor) without your prior written consent which may not be unreasonably
      withheld. At
      the
      Termination Date, there shall be no more than 31,686,868
      shares
      of the Company's Common Stock outstanding on a fully diluted basis, assuming
      exercise of all options, warrants and convertible securities and of the Units
      and Managing Placement Agent Warrants issued in connection with this Offering.
      

    

    3.12  Warrants
      and Options.
      Company
      has represented to Placement Agent that there
      are
      no current options outstanding and no warrants outstanding. Without the prior
      written consent of WP, USCG will not issue any additional warrants, options
      or
      other rights to acquire stock of USCG from the date of this letter through
      completion of the Offering or termination of the Offering Agreement in
      accordance with the terms thereof. 

    

    3.13 Employment
      Agreements.
      Within
      30 days from the execution of this Agreement, the Company shall enter into
      employment agreements with each of the key personnel in a form and substance
      reasonably satisfactory to the Managing Placement Agent and having terms
      consistent with the description contained in the Memorandum ("Key Employee
      Employment Agreements"). The Company agrees that no material changes to the
      terms of such Key Employee Employment Agreements shall be made during the
      initial terms thereof without the prior consent of the Managing Placement Agent,
      which consent shall not be unreasonably withheld.

    

    
      
        
        

      

      
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    3.14 Reservation
      of Shares.
      The
      Company will set aside and at all times have available a sufficient number
      of
      shares of its Common Stock to allow the exercise of all options, warrants and
      conversion demands then issued and outstanding.

    

    3.15 Confidentiality
      Agreements.
      The
      Company shall cause each officer, director and each employee of the Company
      or
      any predecessor to the Company, who is, has been or becomes involved in the
      design and or development of any software developed, marketed, licensed or
      sold
      by the Company has, or prior to the Initial Closing shall have, executed a
      confidentiality agreement in a form and substance reasonably satisfactory to
      the
      Managing Placement Agent pursuant to which each such person acknowledges and
      agrees that any and all rights to such software are the sole and exclusive
      property of the Company.

    

    3.16   Registration
      Rights.
      The
      registration rights of the purchasers of Units in the Offering shall be
      substantially as set forth in the Memorandum, the Subscription Agreement and
      the
      Registration Rights Agreement. The
      Company will file a Registration Statement covering the Common Stock and Warrant
      Shares. The Company will file the Registration Statement at the latest within
      75
      days after the Final Closing of this private placement. In addition, the Company
      will use its best efforts to have the Registration Statement declared effective
      by the earlier of 10 days after notice by the SEC that it may be declared
      effective or 180 days from the closing date of the equity private placement.
      If
      the Registration Statement is not filed on a timely basis or is not declared
      effective by the SEC for any reason on a timely basis, the Company will be
      required to pay the Investor an amount equal to 1% of the amount invested for
      the first 30 days (or part) after the relevant date and 2% of such amount for
      each subsequent 30 day period (or part), in each case until the Registration
      Statement is filed or declared effective, as the case may be. The Company shall
      maintain the effectiveness of the Registration Statement as provided in the
      Registration Rights Agreement. The Registration Statement will also be subject
      to other provisions of the Registration Rights Agreement.

    
      Section
        4.
        Representations
        and Warranties of the Managing Placement Agent.

    

    

    You
      hereby represent, warrant and agree with the Company for its benefit
      that:

    

    4.1 Power
      and Authority.
      You
      have been duly organized and are validly existing as a corporation in good
      standing under the laws of the State of your formation, with all requisite
      corporate power and authority to conduct your business and to perform the
      obligations contemplated herein.

    

    4.2 Due
      Authorization and Enforceability of this Agreement.
      This
      Agreement has been duly and validly authorized, executed and delivered by you
      or
      on your behalf and constitutes your valid, binding and enforceable agreement,
      except to the extent that (i) the enforceability of this Agreement may be
      limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
      affecting the rights of creditors generally or by general principles of equity
      (regardless of whether such enforcement is considered in a proceeding in equity
      or at law), and (ii) the indemnification provisions of this Agreement may be
      held to violate public policy (under either state or federal law) in the context
      of the offer or sale of securities.

     

    
      
        
        

      

      
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          13

        
          

        

      

      
        
        

      

    

    

    4.3 Absence
      of Legal or Contractual Conflicts.
      Your
      execution and delivery of this Agreement, and the performance of your
      obligations thereunder, will not result in a violation of, be in conflict with
      or constitute a default under any agreement or instrument to which you are
      a
      party or by which you or your properties are bound, or any judgment, decree,
      order or, to your knowledge, any statute, rule or regulation applicable to
      you.

    

    4.4 Broker-Dealer
      Qualifications.
      You are
      (and will continue to be during the term of this Agreement) a member in good
      standing of the NASD and agree to abide by the Rules of Fair Practice of such
      association. You are properly registered or licensed as a broker or dealer
      under
      applicable federal and state securities laws and regulations. You, your
      affiliates, and your or their officers and directors (or any other person
      serving in a similar capacity) have not taken or failed to take any act, and
      are
      not subject to any order or proceedings, that would make unavailable any limited
      offering exemption from registration or qualification requirements of state
      securities laws. 

     

    
      Section
        5.
        Covenants
        of the Managing Placement Agent.

    

    

    You
      covenant with the Company as follows:

    

    5.1 Delivery
      of Offering Materials.
      You or
      a person acting on your behalf shall furnish to each offeree, concurrently
      with
      making an offer to such offeree (and its purchaser representative, if such
      a
      representative has been selected), a numbered copy of the Memorandum, as it
      may
      have been amended or supplemented by the Company, and shall maintain adequate
      records of each person to whom a Memorandum has been delivered.

    5.2 Conduct
      of Solicitation.
      You or
      a person acting on your behalf will cause each person interested in acquiring
      the Units to complete and execute a Subscription Document (a copy of which
      is
      included in the Subscription Documents accompanying the Memorandum) in order
      to
      enable the Company to determine whether such person is qualified to acquire
      the
      Units. You will not execute any Subscription Document or any other certificate
      or document contained in the Subscription Documents for any person and will
      not
      invest in the Units through any person's discretionary trading account without
      the written approval of such person. You will abide by, and take reasonable
      precautions to insure compliance with, all provisions contained in the
      Memorandum and this Agreement regulating the terms and manner of conducting
      the
      Offering.

    

    5.3 Compliance
      with Federal Securities Laws.
      You
      will use your best efforts to comply with all applicable requirements of the
      Act
      and the rules and regulations promulgated thereunder, including Regulation
      D.
      You and any person acting on your behalf will make offers of the Units only
      to
      persons whom you and your agents have reasonable grounds to believe and do
      believe: (a) have such knowledge and experience in business and financial
      matters (either alone or together with a purchaser representative) that they
      are
      capable of evaluating the merits and risks of the prospective investment and
      of
      protecting their own interests in connection with the transaction and (b) meet
      the Investor suitability requirements contained in the Memorandum. You and
      any
      person acting on your behalf will cooperate with the Company so that the Units
      are sold to only "accredited investors" as such term is defined in Rule 501
      of
      Regulation D and you and your agents will exercise reasonable care to ensure
      that a purchaser is not an underwriter within the meaning of Section 2(11)
      of
      the Act.

    

    
      
        
        

      

      
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    5.4 Compliance
      with Blue Sky Laws.
      You
      will comply with all applicable requirements of any state securities or "blue
      sky" law or rule or regulation promulgated thereunder. You will not offer or
      sell any of the Units in any jurisdiction (i) prior to receiving written
      instructions from the Company and the "blue sky" counsel that offers may be
      made
      in such jurisdiction and (ii) except in compliance with all applicable
      securities or "blue sky" laws and in accordance with the Blue Sky Memorandum
      delivered to you by Company's counsel. With respect to any state which limits
      the number of offers and sales which may be made, you shall offer for sale
      no
      more than such number of the Units as we advise you may be offered and/or
      sold.

     

    
      Section
        6.
        Conditions
        to Closings.
        

    

    

    The
      obligations of the Managing Placement Agent hereunder are subject to the
      accuracy when made and at each of the Closings of the representations and
      warranties of the Company contained herein, to the performance by the Company
      of
      its obligations hereunder, and to each of the following additional terms and
      conditions:

    

    6.1  No
      Material Change.
      The
      Managing Placement Agent shall not have discovered on or prior to any Closing
      that the Memorandum contains an untrue statement of a fact which, in the opinion
      of the Managing Placement Agent, is material or omits to state a fact which,
      in
      the opinion of the Managing Placement Agent, is material and is required to
      be
      stated therein or is necessary to make the statements therein in light of the
      circumstances under which they were made not misleading. Each of the
      representations and warranties of the Company shall be true as of the date
      of
      each Closing.

    

    6.2 Corporate
      Proceedings.
      All
      corporate proceedings and other legal matters incident to the authorization,
      form and validity of this Agreement, the certificates representing the Units
      and
      all other legal matters relating to this Agreement and the transactions
      contemplated hereby shall be reasonably satisfactory in all material respects
      to
      counsel for the Managing Placement Agent, and the Company shall have furnished
      to such counsel all documents and information that they may reasonably request
      to enable them to pass upon such matters.

    

    6.3 Opinion
      of Counsel.
      None.

    

    6.4 Agreed
      Upon Procedures.
      None.

     

    
      
        
        

      

      
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    6.5 Compliance
      With Covenants.
      The
      Company shall be in compliance with each of the covenants set forth in Section
      4
      of this Agreement.

    

    6.6 Employment
      Agreements.
      The
      Company shall have agreed in writing to all material terms of the Key Employee
      Employment Agreements.

    

    6.7 Closing
      Certificate. The
      Company shall have furnished to the Managing Placement Agent a certificate,
      dated as of the final Closing Date, of the Chief Executive Officer and the
      President of the Company stating that:

    

    6.7.1 The
      representations, warranties and agreements of the Company contained herein
      are
      true and correct on and as of such Closing Date with the same effect as if
      made
      on such Closing Date; the Company has complied in all material respects with
      all
      its agreements contained herein to be performed on or prior to such Closing
      Date; and the conditions precedent to the obligations of the Managing Placement
      Agent set forth herein have been fulfilled; and

    6.7.2 Such
      officers have reviewed the Memorandum and as of the date hereof, and as of
      such
      Closing Date, the Memorandum did not include any untrue statement of a material
      fact and did not omit to state a material fact required to be stated therein
      or
      necessary to make the statements therein not misleading. 

    

    6.8 Other
      Certificates.
      The
      Company shall have furnished to the Managing Placement Agent such further
      information, certificates and documents as the Managing Placement Agent may
      reasonably request.

    

    6.9  Financial
      Statements.
      All
      financial statements contained in the Memorandum, as amended from time to time,
      will be in form and content reasonably satisfactory to you and to your counsel,
      and will have been prepared and reported on by the Company and will be
      Management’s best estimates of the financial results of the Company as of that
      date.

    

    All
      opinions, letters, evidence and certificates mentioned above or elsewhere in
      this Agreement shall be deemed to be in compliance with the provisions hereof
      only if they are in form and substance reasonably satisfactory to counsel of
      the
      Managing Placement Agent.

     

    
      
        
        

      

      
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      Section
        7. Indemnification.

    

    

    7.1 By
      the Company.
      The
      Company will indemnify and hold harmless you, each Selected Broker, and each
      person, if any, who controls you or any Selected Broker within the meaning
      of
      the Act, against any losses, claims, damages or liabilities, joint or several,
      to which you, a Selected Broker or such controlling person may become subject
      under the Act or otherwise, insofar as such losses, claims, damages or
      liabilities (or actions in respect thereof) arise out of or are based upon
      any
      untrue statement or alleged untrue statement of any material fact contained
      in
      the Memorandum, or in any related sales material (whether designated solely
      for
      broker-dealer use or otherwise) which the Company or any officer thereof
      authorizes in writing for use by you or any Selected Broker, or arise out of
      or
      are based upon the omission or alleged omission to state therein any material
      fact required to be stated therein or necessary to make the statements therein
      not misleading; provided, however, that the Company will not be liable to
      indemnify you, each Selected Broker or such a controlling person thereof
      pursuant to this Section 7.1 to the extent that any such loss, claim, damage
      or
      liability arises out of or is based upon any untrue statement or alleged untrue
      statement or omission or alleged omission made in reliance upon and in
      conformity with written information furnished to the Company by you or any
      Selected Broker specifically for use in the Memorandum or sales material; and
      will reimburse you, each Selected Broker and each such controlling person for
      any legal or other expenses reasonably incurred in connection with investigating
      or defending any such loss, claim, damage, liability or action. Notwithstanding
      the foregoing provisions of this Section 7.1, the Company shall not indemnify
      you, any Selected Broker or any person, if any, who controls you or the Selected
      Broker within the meaning of the Act, for losses, liabilities or expenses
      arising from or out of an alleged violation of federal or state securities
      laws
      unless (i) there has been a successful adjudication on the merits of each count
      involving alleged securities law violations by the particular indemnitee not
      caused by materials supplied by the Company, (ii) such claims have been
      dismissed with prejudice on the merits by a court of competent jurisdiction
      as
      to the particular indemnitee or (iii) a court of competent jurisdiction approves
      the settlement of the claims against the particular indemnitee; nor shall the
      Company indemnify you, any Selected Broker or any person, if any, who controls
      you or the Selected Broker within the meaning of the Act, for losses,
      liabilities or expenses arising from or out of any material misrepresentation
      made by you or your representatives which are inconsistent with any statement
      made in the Memorandum or in any written materials provided to you by the
      Company in connection with your duties hereunder. In any claim against the
      Company for indemnification for federal or state securities law violations,
      the
      party seeking indemnification shall place before the court the position of
      the
      Securities and Exchange Commission and any states that may require it with
      respect to the issue of indemnification for securities law violations. This
      indemnification supersedes the indemnification in the LOI.

    

    If
      for
      any reason the indemnification provided for in the preceding paragraph is held
      by a court of competent jurisdiction to be unavailable to an indemnified party
      with respect to any loss, claim, damage, liability or expense referred to
      therein, then the indemnifying party, in lieu of indemnifying such indemnified
      party thereunder, shall contribute to the amount paid or payable by the
      indemnified party as a result of such loss, claim, damage or liability in such
      proportion as is appropriate to reflect not only the relative benefits received
      by the indemnified party and the indemnifying party. but also the relative
      fault
      of the indemnified party and the indemnifying party.. For purposes of this
      paragraph, “relative benefit” shall mean the amount of net proceeds actually
      received by the Company in the Offering versus the compensation received by
      WP
      for services provided in connection with the Offering, net of its expenses.
      

    

    
      
        
        

      

      
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    7.2 By
      the Managing Placement Agent and Each Selected Broker.
      You and
      each Selected Broker will jointly and severally indemnify and hold harmless
      the
      Company and each other person who controls the Company within the meaning of
      the
      Act, against any losses, claims, damages or liabilities, joint or several,
      to
      which the Company may become subject, under the Act or otherwise, insofar as
      such losses, claims, damages or liabilities (or actions in respect thereof)
      arise out of or are based upon (i) any untrue statement or alleged untrue
      statement of any material fact contained in the Memorandum, or any related
      sales
      material which the Company authorizes in writing for use by you and the Selected
      Brokers, or arise out of or are based upon the omission or the alleged omission
      to state therein any material fact required to be stated therein or necessary
      to
      make the statements therein not misleading, in each case to the extent that
      such
      untrue statement or alleged untrue statement or omission or alleged omission
      was
      made in reliance upon and in conformity with written information furnished
      to
      the Company by you or any Selected Broker specifically for use therein; (ii)
      any
      material misrepresentation made by you or your representatives which are
      inconsistent with any statement made in the Memorandum or in any written
      materials provided to you by the Company in connection with your duties
      hereunder; and (iii) any breach by you or any Selected Broker of any
      representation, warranty or covenant contained in this Agreement,. You or any
      Selected Broker will reimburse any legal or other expenses reasonably incurred
      by the Company or any controlling person in connection with investigating or
      defending any such loss, claim, damage, liability or action, provided that
      you
      or any Selected Broker shall reimburse any such legal or other expenses in
      connection with investigating or defending any such loss, claim, damage,
      liability or action only to the extent that such loss, claim, damage or
      liability results from any action or inaction caused by you. This
      indemnification supercedes the indemnification in the LOI.

    7.3 Notification.
      Promptly after receipt by an indemnified party under this Section 7 of notice
      of
      the commencement of any action, such indemnified party will, if a claim in
      respect thereof is to be made against the indemnifying party under this Section
      7, notify the indemnifying party of the commencement thereof; but the omission
      so to notify the indemnifying party will not relieve it from any liability
      which
      it may have to any indemnified party otherwise than under this Section 7. In
      case any such action is brought against any indemnified party and it notifies
      the indemnifying party of the commencement thereof, the indemnifying party
      will
      be entitled to participate therein and, to the extent that it may wish, jointly
      with any other indemnifying party similarly notified, to assume the defense
      thereof, with counsel satisfactory to such indemnified party, and after notice
      from the indemnifying party to such indemnified party of its election so to
      assume the defense thereof, the indemnifying party will not be liable to such
      indemnified party under this Section 7 for any legal or other expenses
      subsequently incurred by such indemnified party in connection with the defense
      thereof other than reasonable costs of investigation.

    

    
      Section
        8.
        Representation
        on Board of Directors.
        N/A

    

    

    
      Section
        9. Termination
        of this Agreement.

    

     

    9.1 Termination.
      The
      Offering shall terminate six months following the Commencement Date.
If,
      in
      your opinion and on a reasonable basis, the condition of the Company, financial
      or otherwise, and its prospects become materially adverse from what was
      presented to you, based upon information provided by the Company (including
      the
      Company's financial information and projections), you shall have the sole
      discretion, exercised in good faith, to review and determine your continued
      interest in participating in the proposed Offering. In the event you terminate
      the Offering in your sole discretion based upon the preceding sentence prior
      to
      the Company’s receipt of minimum proceeds from the Offering of $250,000, your
      compensation, excluding the $12,500 up-front fee stated in Section 1.7.1,
      hereunder shall be limited to your reasonable expenses incurred to the date
      of
      such termination in connection with the offering, and in no event shall such
      un-reimbursed expenses exceed $5,000.

    
       

      
        
          
          

        

        
          Page
            18

          
            

          

        

        
          
          

        

      

       

    

    9.2 Liability
      of Parties.
      All
      representations, warranties and indemnification agreements contained in this
      Agreement shall remain operative and in full force and effect, regardless of
      any
      termination pursuant to Section 9.1, and shall survive the Final Closing
      Date.

     

    
      Section
        10. Miscellaneous
        Provisions.

    

    

    10.1 Notices.
      All
      notices provided for by this Agreement shall be made in writing either (i)
      by
      actual delivery of the notice to the parties thereunto entitled or (ii) by
      the
      mailing of the notice in the United States mail to the address, as stated below
      (or at such other address as may have been designated by written notice), of
      the
      party entitled thereto, by certified or registered mail, return receipt
      requested. The notice shall be deemed to have been received in case (i) on
      the
      date of its actual receipt by the party entitled thereto and in case (ii) on
      the
      date of deposit in the United States mail.

    All
      communications hereunder, except as herein otherwise specifically provided,
      shall be in writing and, if sent to the Managing Placement Agent shall be sent
      to 231 Sansome Street, 4th
      Floor,
      San Francisco, California 94104, tel. 415-276-2828, and if sent to the Company
      shall be mailed or delivered to the Company at the address shown in the
      Memorandum. 

    

    10.2 Parties.
      This
      Agreement shall inure to the benefit of and be binding upon you, the Company
      and
      each of your and the Company's respective successors and legal representatives.
      Except as otherwise set forth in this Section, nothing expressed or mentioned
      in
      this Agreement is intended or shall be construed to give any other person any
      legal or equitable right, remedy or claim under or in respect of this Agreement,
      or any provision herein contained. No purchaser of Units will be deemed a
      successor because of such purchase. Notwithstanding the foregoing, all of the
      provisions of this Agreement shall also be for the benefit of and may be relied
      upon by the other Selected Brokers and any person or persons who control any
      of
      the Selected Brokers within the meaning of Section 15 of the Act.

    

    10.3 Applicable
      Law; Arbitration.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of California. Any dispute, claim or controversy arising out of this
      Agreement shall be resolved by binding arbitration to be held in California
      in
      accordance with the commercial rules, as then in effect, of the National
      Association of Securities Dealers, Inc.

    

    10.4 Multiple
      Counterparts.
      This
      Agreement may be executed in a number of identical counterparts, each of which
      shall be deemed to be an original, but all of which constitute, collectively,
      one and the same Agreement; but in making proof of this Agreement, it shall
      not
      be necessary to produce or account for more than one such
      counterpart.

     

    
      
        
        

      

      
        Page
          19

        
          

        

      

      
        
        

      

    

    

    10.5 Modification
      or Amendment.
      This
      Agreement may not be modified or amended except by written agreement executed
      by
      the parties hereto.

    

    10.6 Other
      Instruments.
      The
      parties hereto covenant and agree that they will execute such other and further
      instruments and documents as are or may become necessary or convenient to
      effectuate and carry out this Agreement.

    

    10.7 Validity.
      Should
      any portion of this Agreement be declared invalid and unenforceable, then such
      portion shall be deemed to be severable from this Agreement and shall not affect
      the remainder of this Agreement.

    

    10.8 Captions.
      The
      captions used in this Agreement are for convenience only and shall not be
      construed in interpreting this Agreement.

    

    10.9 Currency.
      All
      units of currency of this Agreement are in US Dollar, unless otherwise
      specified..

    

    10.10 Entire
      Agreement.
      This
      Agreement contains the entire understanding between the parties and supersedes
      any prior understandings or written or oral agreements between them respecting
      the subject matter hereof. 

     

    
      
        
        

      

      
        Page
          20

        
          

        

      

      
        
        

      

    

    If
      the
      foregoing is in accordance with our agreement, please sign and return to us
      a
      counterpart hereof, whereupon this instrument along with all counterparts will
      become a binding agreement among you, the Company in accordance with its
      terms.

    

    
      	 	 	 
	 	Very truly yours,
	 	 	 
	 	
              US
                CHINA GINSENG HOLDING, INC.

            
	 
 	 
 By 	
              
 

            
	 	
            	
              
                

              

              Liu Changzhen, Chairman

            
	 	 	 
	 	 By 	 
	 	 	
              
                
Song
                Jiankun, President

            

 

    Confirmed
      and Accepted as of the date

    first
      above written:
       
WHITE
      PACIFIC SECURITIES, INC.

     

    
      	 	 	 	 
	By	 	 	 
	
              
                

              

                     
                Stephen Lee, CEO

            	 	 	
            
	
            	 	 	
            

    

     

    
      
        
        

      

      
        Page
          21

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