Document:

STOCK PURCHASE
AGREEMENT

    

    

    THIS
AGREEMENT made as of this 8th day  of  December, 2008, by
and among Mary Passalaqua of 106 Glenwood Drive S., Liverpool, NY 13090
("Seller"), Xiqun Yu of 58 Heng Shan Road, Kun Lun Shopping Mall, Harbin, the
People’s Republic of China 150090  (“Buyer”) and Tia II, Inc., a
Delaware corporation with a principal address of 7325 Oswego Road, Liverpool, NY
13090 (the “Company”) (Buyer, Seller and Company each a “Party” and collectively
the “Parties”.)

    

    W
I T N E S S E T H:

    

    WHEREAS,
Seller is the owner of One Million (1,000,000) shares of common stock, par value
$0.0001, of Tia II, Inc. (the “Shares”); and

    

    WHEREAS,
Buyer desires to purchase from Seller and Seller desires to sell to Buyer the
Shares upon the terms and conditions hereinafter set forth.

    

    NOW
THEREFORE, in consideration of the mutual covenants and promises herein
contained and upon the terms and conditions hereinafter set forth, the parties
hereto, intending to be legally bound, agree as follows:

    

    1.           PURCHASE
AND SALE OF THE SHARES.

    

    Purchase and
Sale.  Upon the terms and conditions herein contained, at the
Closing (as hereinafter defined), Seller agrees to sell, issue, transfer and
deliver the Shares to Buyer and Buyer agrees to purchase the Shares from Seller,
free and clear of all liens, claims, pledges, mortgages, restrictions,
obligations, security interests and encumbrances of any kind, nature and
description.

    

    2.           CONSIDERATION.

    

    Purchase
Price.  The purchase price for the Shares (the "Purchase
Price") shall be Buyer's payment of Twenty Five Thousand Dollars ($25,000) to
Seller.

    

    3.           CLOSING.

    

    3.1           Time and Place of
Closing.  The closing of the transactions contemplated by this
Agreement (the "Closing") is taking place simultaneously with the execution of
this Agreement, at a location to be mutually agreed by the parties, at the date
first set forth above (hereinafter the "Closing Date").

    

    3.2           Delivery by
Seller.  Seller shall deliver to Buyer, (i) stock
certificate(s) representing the Shares and executed stock power(s) or other
documents satisfactory to Buyer permitting transfer to Buyer of the Shares, (ii)
a fully executed copy of this Agreement and (iii) a letter of resignation from
Seller as director and officer of the Company.  Additionally, Seller
shall also cause the Board of Directors of Tia II, Inc. to execute a resolution
approving the execution and consummation of this Agreement, appointment of Mr.
Xiqun Yu to the Board of Directors and as the Company’s new Chief Executive
Officer, Chief Financial Officer and Secretary and accepting the aforesaid
resignation of Seller as officer and director of the Company with effect from
the date of Closing. Seller shall also deliver to Buyer, to the extent
reasonable available to Seller, original and/or true and correct copies of all
of the Company’s business, financial and corporate records including but not
limited to: correspondence files, bank statements, checkbooks, minutes of
shareholder and directors meetings, financial statements, shareholder listings,
stock transfer records, agreements and contracts.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.3           Delivery by
Buyer.  Upon receipt of the Shares and documents in Section 3.2
above, Buyer shall wire Seller the sum of Twenty Five Thousand Dollars ($25,000)
to Seller’s designated bank account and/or shall pay or cause the payment of the
Purchase Price in such other manner to be agreed upon by Buyer and Seller and
deliver to Seller a fully executed copy of this Agreement.

    

    

    4.           REPRESENTATIONS
AND WARRANTIES OF SELLER.  Seller hereby represents and
warrants to Buyer as follows:

    

    4.1           Organization. The
Company is a corporation duly organized, validly existing, and in good standing
under the laws of the state of Delaware, and is qualified in no other
state.

    

    4.2           No Violation. Neither
the execution and delivery of this Agreement by Seller, nor the consummation by
Seller of the transactions contemplated hereby will: (i) violate any
constitution, statute, regulation, rule, injunction, judgment, order, decree,
ruling, charge or other restriction of any government, governmental agency,
court, administrative panel or other tribunal to which Seller is
subject,  (ii) conflict with, result in a breach of, constitute a
default under, result in the acceleration of, create in any party the right to
accelerate, terminate, modify or cancel, or require any notice under any
agreement, contract, lease, license, instrument or other arrangement to which
Seller is a party or by which she is bound, or to which any of her assets is
subject; or (iii) result in or require the creation or imposition of any
encumbrance of any nature upon or with respect to any of Seller’s assets,
including without limitation the Shares.

    

    4.3           Enforceability. This
Agreement and any other agreement executed by Seller in connection herewith have
been duly executed and delivered by it and constitute the valid, binding and
enforceable obligation of Seller, subject to the applicable bankruptcy,
insolvency and similar laws affecting creditors’ rights generally and rights of
stockholders.

    

    4.4           Authorized Capital.
The authorized capital stock of the Company consists of Two Hundred and Fifty
Million (250,000,000) shares of common stock, par value $0.0001 per share
(“Common Stock”) and Ten Million shares of preferred stock, par value $0.0001
per share (“Preferred Stock), One Million (1,000,000) shares of Common Stock are
validly issued and outstanding, fully paid and non-assessable.  The
Shares have been validly issued, are fully paid and non-assessable, and are
owned beneficially and of record by Seller free and clear of all free and clear
of all liens, claims, charges, encumbrances, pledges, mortgages, security
interests, options, rights to acquire, proxies, voting trusts or similar
agreements, restrictions on transfer or adverse claims of any nature whatsoever,
except any restrictions under applicable federal and state securities laws, and
Seller has not previously entered into any agreement or commitment for the sale
of all or part of the Shares or otherwise conveyed or encumbered Seller’s
interest (voting or otherwise) with respect to the Shares.  The Seller
has the unqualified right to sell, assign, and deliver the Shares, and, upon
consummation of the transactions contemplated by this Agreement, the Buyer will
acquire good, marketable and valid title to the Shares, free and clear of all
liens, claims, charges, encumbrances, pledges, mortgages, security interests,
options, rights to acquire, proxies, voting trusts or similar agreements,
restrictions on transfer or adverse claims of any nature
whatsoever.

     

    
 

    
      
         

      

      
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    4.5           No Default. Seller is
not, and is not alleged to be, in violation of, or (with or without notice or
lapse of time or both) in default under, or in breach of, any term or provision
of any indenture, loan or credit agreement, note, deed of trust, mortgage,
security agreement or other material agreement, lease, license or other
instrument, commitment, obligation or arrangement to which Seller is a party or
by which Seller’s properties, assets or rights are bound or affected.  No
other party to any material contract, agreement, lease, license, commitment,
instrument or other obligation to which Seller is a party is (with or without
notice or lapse of time or both) in default thereunder or in breach of any term
thereof.  Seller is not subject to any obligation or restriction of any
kind or character, nor are there any event or circumstance relating to Seller
that would prevent or make burdensome Seller’s performance of or compliance with
all or any part of this Agreement or the consummation of the transactions
contemplated hereby or thereby. 

    

    4.6           Seller Power;
Authority. Seller has full power and authority to sell and transfer the
Shares to Buyer without obtaining the waiver, consent, order or approval of (i)
any state or federal governmental authority or (ii) any third party or other
person including, but not limited to, other stockholders of the
Company.

    

    4.7           Company Power;
Authority. The Company has the corporate power, authority and capacity to
carry on its business as presently conducted, except where the failure to do so
would not result in a material adverse effect upon the Company.

    

    4.8           Delivery of Certificate of
Incorporation and By-laws. The Seller has heretofore delivered to the
Buyer true and complete copies of the Company’s Certificate of Incorporation, as
amended and By laws, each as currently in effect.

    

    4.9           Non-Violation of Certificate
of Incorporation and By-laws. Neither the execution and delivery of this
Agreement nor the consummation of the transactions contemplated hereby will
constitute a violation or default under any term or provision of the Certificate
of Incorporation or By-laws of the Company, or of any contract, commitment,
indenture, other agreement or restriction of any kind or character to which the
Company or the Seller is a party to or by which the Company or the Seller is
bound.

    

    
      
         

      

      
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    4.10           Nature of
Certificate(s). The certificate(s) representing the Shares delivered
pursuant to this Agreement are subject to certain trading restrictions imposed
by the Securities Act of 1933, as amended (“Securities Act”) and applicable
state securities or “blue sky” laws.

    

    4.11           No Liabilities. The
Company has no outstanding liabilities or obligations to any party except as
reflected on the its Form 10-Q for the quarter ended June 30, 2008, other than
charges since such date occurred in the ordinary course of business, all of
which will be discharged prior to or at the Closing so that, at the Closing, the
Company will have no direct, contingent or other obligations of any kind or any
commitment or contractual obligations of any kind and description.

    

    4.12           No Pre-emptive
Rights. At Closing, no person has any pre-emptive rights or any other
rights to acquire any Shares that have not been waived or exercised. 

    

    4.13           No Litigation. There
is no action, suit, proceeding or investigation (“Action”) pending or, to the
best knowledge of Seller, currently threatened against Seller that may affect
the validity of this Agreement or the right of Seller to enter into this
Agreement  or to consummate the transactions contemplated hereby or
thereby.  There is no Action pending or, to the best knowledge of Seller,
currently threatened against Seller before any court or by or before any
governmental body or any arbitration board or tribunal, nor is there any
judgment, decree, injunction or order of any court, governmental department,
commission, agency, instrumentality or arbitrator against Seller.  Seller
is a party or subject to the provisions of any order, writ, injunction, judgment
or decree of any court or government agency or instrumentality.  There is
no Action by Seller relating to Seller currently pending or which Seller intends
to initiate. 

    

    4.14           Accuracy of Representations
and Warranties.  None of the representations and warranties
made by Seller contained in this Agreement, nor in any statement, document,
certificate, schedule, list, memorandum or other writing (collectively,
"Statements") furnished or to be furnished by Seller pursuant hereto, or in
connection with the transactions contemplated hereby, is or will be incorrect or
incomplete, or contains or will contain any untrue statement of fact, and none
of such representations, warranties and Statements omits or will omit to state a
fact necessary in order to make the statements contained herein or therein not
misleading.  There is no fact known to Seller which Seller has not
disclosed in this Agreement, or in an exhibit hereto, or in a statement, which
adversely affects or may reasonably be expected to affect adversely the business
or assets of Seller.

    

    4.15          Survival.  Each
of the representations and warranties set forth in this Section 4 shall be
deemed represented and made by Seller at the Closing as if made at such time and
shall survive the Closing for a period terminating twenty-four (24) months after
the date of the Closing.

    

    

    
      
         

      

      
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    5.           REPRESENTATIONS AND WARRANTIES OF
COMPANY.

    

    The Company hereby warrants to Buyer
that:

    

    5.1           Organization. The
Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware.  The Company has the
corporate power to own its properties and to carry on its business as now being
conducted and is duly 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 the Company.  The Company is not in
violation of any of the provisions of its Certificate of Incorporation or
By-laws.  No consent, approval or agreement of any individual or
entity is required to be obtained by the Company in connection with the
execution and performance by the Company of this Agreement or the execution and
performance by the Company of any agreements, instruments or other obligations
entered into in connection with this Agreement.  The Company has no
subsidiary, and it does not have any equity investment or other interest, direct
or indirect, in, or any outstanding loans, advances or guarantees to or on
behalf of, any domestic or foreign individual or entity as of the date of the
Closing.

    

    5.2           Authorized
Capital.  The authorized capital stock of the Company consists
of Two Hundred and Fifty Million (250,000,000) shares of common stock, par value
$0.0001 per share (“Common Stock”) and Ten Million shares of preferred stock,
par value $0.0001 (“Preferred Stock), One Million (1,000,000) shares of Common
Stock are validly issued and outstanding, fully paid and non-assessable as set
forth in the Company’s Form 10-Q for the quarter ended June 30,
2008.

    

    5.3           No Agreement to Issue or
Acquire Common Stock. Other than this Agreement, the Company is not a
party to any agreement or understanding pursuant to which any securities of any
class of capital stock are to be issued or created or
transferred.  The Company has not acquired any shares of Common Stock,
and has no formal or informal agreements or understandings pursuant to which it
can or will acquire any shares of Company Common Stock.  The Company
nor any officer, director or 5% stockholder of the Company has any agreements,
plans, understandings or proposals, whether formal or informal or whether oral
or in writing, pursuant to which it granted or may have issued or granted any
individual or entity any convertible security or any interest in the Company or
the Company’s earnings or profits, however defined.  As used in this
Agreement, the term “Convertible Securities” shall mean any options, rights,
warrants, convertible debt, equity securities or other instrument or agreement
upon the exercise or conversion of which or upon the exchange of which or
pursuant to the terms of which additional shares of any class of capital stock
of the Company may be issued.

    

    5.4           No Litigation. There
is no private or governmental action, suit, proceeding, claim, arbitration or
investigation pending before any agency, court or tribunal, foreign or domestic,
or threatened against the Company or any of its properties or any of its
officers or directors (in their capacities as such).  There is no
judgment, decree or order against the Company that could prevent, enjoin, alter
or delay any of the transactions contemplated by this
Agreement.  There are no material claims, actions, suits, proceedings,
inquiries, labor disputes or investigations (whether or not purportedly on
behalf of the Company) pending or threatened against the Company or any of its
assets, at law or in equity or by or before any governmental entity or in
arbitration or mediation.  No bankruptcy, receivership or debt or
relief proceedings are pending or threatened against the Company.

    

    
      
         

      

      
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    5.5           Legal Compliance. The
Company has complied with, is not in violation of, and has not received any
notices of violation with respect to, any federal, state, local or foreign Laws,
judgment, decree, injunction or order, applicable to it, the conduct of its
business, or the ownership or operation of its
business.   References in this Agreement to “Laws” shall refer to
any laws, rules or regulations of any federal, state or local government or any
governmental or quasi-governmental agency, bureau, commission, instrumentality
or judicial body (including, without limitation, any federal or state securities
law, regulation, rule or administrative order).

    

    5.6           Tax Returns. The
Company has properly filed all tax returns (if any) required to be filed and has
paid all taxes shown thereon to be due.  All tax returns previously
filed, if at all, are true and correct in all material respects.

    

    5.7           No Liabilities. The
Company has no outstanding liabilities or obligations to any party except as
reflected on the Company’s Form 10-Q for the quarter ended June 30, 2008, other
than charges since such date occurred in the ordinary course of business, all of
which will be discharged prior to or at the Closing so that, at the Closing, the
Company will have no direct, contingent or other obligations of any kind or any
commitment or contractual obligations of any kind and description.

    

    5.8           Accuracy of Books and
Records. All of the business and financial transactions of the Company
have been fully and properly reflected in the books and records of the Company
in all material respects and in accordance with generally accepted accounting
principles consistently applied.

     

    5.9           SEC Reports. The
Company is current with its reporting obligations under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”).  None of the Company
filings made pursuant to the Exchange Act (collectively, the “Company SEC
Documents”) contain any misstatements of material fact or omit to state a
material fact necessary to make the statements made therein not
misleading.  The Company SEC Documents, as of their respective dates,
complied in all material respects with the requirements of the Exchange Act, and
the rules and regulations of the Commission thereunder, and are available on the
Commission’s EDGAR system.   The financial statements included in
the Company SEC Documents fairly present and reflect in all material respects,
in accordance with generally accepted accounting principles, consistently
applied, the financial condition of the Company on the balance sheet dates and
the results of its operations, cash flows and changes in stockholders’ equity
for the periods then ended in accordance with generally accepted accounting
principles, consistently applied, except as may be otherwise specified in such
financial statements or the notes thereto.  The accountants who
audited the Company’s financial statements are independent, within the meaning
of the Act and are a member of the PCAOB.  There has not occurred any
material adverse change, or any development involving a prospective material
adverse change, in the condition, financial or otherwise, or in the earnings,
business or operations of the Company, from that set forth in the Company’s
Quarterly Report on Form 10-Q for the quarter ended June 30, 2008.

    

    
      
         

      

      
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    5.10           No Violation. The
execution and delivery of this Agreement by the Company and the consummation of
the transactions contemplated by this Agreement will not result in any material
violation of the Company’s Certificate of Incorporation or By-laws.

    

    5.11           Representations and
Warranties. All representations, covenants and warranties of the Company
and Seller contained in this Agreement shall be true and correct on and as of
the Closing with the same effect as though the same had been made on and as of
such date.

    

    5.12           Survival.  Each
of the representations and warranties set forth in this Section 5 shall be
deemed represented and made by the Company at the Closing as if made at such
time and shall survive the Closing for a period terminating twenty-four (24)
months after the date of the Closing.

    

    

    

    6.           REPRESENTATIONS,
WARRANTIES AND ACKNOWLEDGEMENTS OF BUYER.

    

    Buyer
hereby represents, warrants and acknowledges to Seller as follows:

    

    6.1           Investment
Purposes.  Buyer is acquiring the Shares for his own account,
for investment purposes only and not with a view to resale or other distribution
thereof, nor with the intention of selling, transferring or otherwise disposing
of all or any part of such Shares, or any interest therein, for any particular
price, or at any particular time, or upon the happening of any particular event
or circumstances, except selling, transferring, or disposing of such Shares made
in full compliance with all applicable provisions of the Securities Act of 1993
(the "Act") and the Securities Exchange Act of 1934 ("Exchange Act"), and the
Rules and Regulations promulgated by the Securities and Exchange Commission
thereunder, all as amended; and that such Shares must be held indefinitely
unless they are subsequently registered under the Act, or an exemption from such
registration is available.

    

    6.2           Sophisticated
Investor.  Buyer has sufficient knowledge and experience of
financial and business matters, is able to evaluate the merits and risks of
purchasing such Shares and has had substantial experience in previous private
and public purchases of securities.

    

    
      
         

      

      
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    7.           POST-CLOSING
COVENANTS.

    

    7.1           Further
Assurances.  After the Closing, at the request of either party,
the other party shall execute, acknowledge and deliver, without further
consideration, all such further assignments, conveyances, endorsements, deeds,
powers of attorney, consents and other documents and take such other action as
may be reasonably requested to consummate the transactions contemplated by this
Agreement.

    

    8.           INDEMNITY.

    

    8.1           The
Seller agrees to indemnify the Buyer, and hold it harmless from and in respect
of any (i) assessment, loss, damage, liability, cost and expense (including,
without limitation, interest, penalties, and reasonable attorneys’ fees),
imposed upon or incurred by the Buyer resulting from a breach of this Agreement
or the covenants or conditions made by Company and or the Seller; (ii)
inaccuracy in any of the representations and warranties made by Company and/or
the Seller herein in this Agreement; or (iii) any and all liabilities arising
out of or in connection with: (A) any of the assets of Company prior to the
Closing; or (B) the operations of Company prior to the
Closing.  Assertion by the Buyer to its right to indemnification under
this Section 8) shall not preclude assertion by the Buyer of any other rights or
the seeking of any other remedies against the Seller.

    

    

    9.           Miscellaneous

    

    9.1           Binding Effect;
Benefits.  This Agreement shall inure to the benefit of, and
shall be binding upon, the parties hereto and their respective successors and
permitted assigns.  Except as otherwise set forth herein, this
Agreement may not be assigned by any party hereto without the prior written
consent of the other party hereto.  Except as otherwise set forth
herein, nothing in this Agreement, expressed or implied, is intended to confer
on any person other than the parties hereto or their respective successors and
permitted assigns any rights, remedies, obligations or liabilities under or by
reason of this Agreement.

    

    9.2           Notices.  All
notices, requests, demands and other communications which are required to be or
may be given under this Agreement shall be in writing and shall be deemed to
have been duly given when delivered in person, or transmitted by telecopy or
telex, or upon receipt after dispatch by certified or registered first class
mail, postage prepaid, return receipt requested, to the party to whom the same
is so given or made, at the following addresses (or such others as shall be
provided in writing hereinafter):

    

    (a)           If
to the Seller, to:

    Ms. Mary
Passalaqua

    7325 Oswego Road, Suite D,

    Liverpool,
NY 13090

    Tel:
(315) 703 9017

    Fax: (315) 451 3964

     

    
      
         

      

      
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              (b)

            	
              If
      to the Buyer, to:

            

    

    

    Mr. Xiqun Yu

    c/o China Education Alliance,
Inc.

    58 Heng Shan Road

    Kun Lun
Shopping Mall,

    Harbin,
the People’s Republic of China 150090

    Tel: 011
86 451 8233 5794

    

    

    (c)           If
to Tia II Inc. to:

    Ms. Mary
Passalaqua

    7325 Oswego Road, Suite D,

    Liverpool,
NY 13090

    Tel:
(315) 703 9017

    Fax: (315) 451 3964

    

    

    9.3           Entire
Agreement.  This Agreement constitutes the entire agreement and
supersedes all prior agreements and understandings, oral and written, between
the parties hereto with respect to the subject matter hereof.

    

    9.4           Headings.  The
section and other headings contained in this Agreement are for reference
purposes only and shall not be deemed to be a part of this Agreement or to
affect the meaning or interpretation of this Agreement.

    

    9.5           Counterparts.  This
Agreement may be executed in any number of counterparts, each of which, when
executed, shall be deemed to be an original and all of which together shall be
deemed to be one and the same instrument.

    

    9.6           Governing
Law.  This Agreement shall be construed as to both validity and
performance and enforced in accordance with and governed by the laws of the
State of New York, without giving effect to the conflicts of law principles
thereof. Any dispute, disagreement, conflict of interpretation or claim arising
out of or relating to this Agreement, or its enforcement, shall be governed by
the laws of the State of New York.  Buyer and Seller hereby
irrevocably and unconditionally submit for themselves and their property, to the
nonexclusive jurisdiction of Federal and State courts of the State of New York
and any appellate court thereof, in any action or proceeding arising out of or
relating to this Agreement, or for recognition or enforcement of any judgment,
and each of the Parties hereto hereby irrevocably and unconditionally agree that
all claims in respect of any such action or proceeding may be heard and
determined in such New York State court, or, to the extent permitted by law, in
such Federal court.  Each of the Parties hereto agree that a final
judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law. Each of the Parties hereto irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection which it may now or hereafter have to the laying of venue of any suit,
action or proceeding arising out of or relating to this Agreement in any court
referred to above.  Each of the Parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such
court.  Each Party to this Agreement irrevocably consents to service
of process in the manner provided for notices below.  Nothing in this
Agreement will affect the right of any Party to this Agreement to serve process
in any other manner permitted by law.  Each Party hereto hereby
waives, to the fullest extent permitted by applicable law, any right it may have
to a trial by jury in any legal proceeding directly or indirectly arising out of
or relating to this Agreement or the transactions contemplated hereby (whether
based on contract, tort or any other theory).  Each Party hereto
certifies that no representative, agent or attorney of any other Party has
represented, expressly or otherwise, that such other Party would not, in the
event of litigation, seek to enforce the foregoing waiver, and acknowledges that
it and the other Parties hereto have been induced to enter into this Agreement
by, among other things, the mutual waivers and certifications in this Section
7.6.

    

    
      
         

      

      
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    9.7           Severability.  If
any term or provision of this Agreement shall to any extent be invalid or
unenforceable, the remainder of this Agreement shall not be affected thereby,
and each term and provision of the Agreement shall be valid and enforced to the
fullest extent permitted by law.

    

    9.8           Amendments.  This
Agreement may not be modified or changed except by an instrument or instruments
in writing executed by the parties hereto.

    

    

    [Signatures
on following page]

     

     

     

     

     

     

     

     

     

     

    

    
      
        
           

        

        
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    IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date
first above written.

     

     

    
      
        
          	 	 	      
                  SELLER:

                  

                  MARY
      PASSALAQUA

                  

                  /s/
      Mary Passalaqua

                  
                    
      

                   

                   

                  BUYER:

                   

                  XIQUN
      YU

                  

                  /s/
      Xiqun Yu

                  
                    
                      
      

                  

                  TIA
      II, INC.

                  

                  /s/
      Mary Passalaqua

                        
                    
                      
      

                  

                  By:   
      Mary Passalaqua

                  Title:
      President, Secretary and Director

                
	 	 	 

        

      

    

     

    
 

    
      
         

      

      
        -11-Unassociated Document

    THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND HAS BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO,
OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF.  NO SUCH SALE
OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT
RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT.

    

    
      
        	
                US
      $____________

              	
                December
      4, 2008

              

      

    

    

    

    NOVINT
TECHNOLOGIES, INC.

    

    8% SENIOR
SECURED PROMISSORY NOTE

    

    Due
December 4, 2009

    

    FOR VALUE
RECEIVED, the adequacy of which is hereby acknowledged, Novint Technologies,
Inc., a company organized under the laws of the State of Delaware (the “Company”), hereby
promises unconditionally to pay to ________________ (together with any assignee,
“Holder”), in
lawful money of the United States of America (“Dollars” or “$”) and in
immediately available funds, the principal sum of ___________________
($_____________) on the Maturity Date, as hereinafter defined, and to pay
interest on such principal amount of this Senior Secured Promissory Note (the
“Note”).  Capitalized
terms used but not otherwise defined herein have the respective meanings given
to such terms in Section 11
hereof.

    

    1.           Principal.  Unless
earlier repaid in full, the entire unpaid principal amount of this Note shall be
paid on the Maturity Date, subject to Section 6
hereof.  Promptly following the payment in full of this Note, the
Holder shall surrender this Note to the Company for cancellation.

    

    2.           Prepayment.  The
Company shall have the right prior to the Maturity Date to repay all of the
principal amount of this Note and accrued but unpaid interest thereon and all
other sums due hereunder without premium or penalty.

    

    3.           Allocation.  Except
as otherwise provided herein, all payments made hereunder (whether in prepayment
or otherwise) shall be applied first against any sums incurred by the Holder for
the payment of any expenses in enforcing the terms of this Note, then against
any interest then due hereunder and finally against principal.

    

    4.           Interest.  Interest
on the Note shall accrue at a rate of eight percent (8%) per annum from the date
of this Note, and shall be payable on the Maturity Date, subject to Section 6
hereof.  The rate of interest payable under the Note from time to time
shall in no event exceed the maximum rate, if any, permissible under applicable
law.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5.           Payments.  All
payments to be made by the Company in respect of this Note shall be made in U.S.
Dollars by wire transfer to an account designated by the Holder by written
notice to the Company, subject to Section 6
hereof.  If the due date of any payment in respect of this Note would
otherwise fall on a day that is not a Business Day, such due date shall be
extended to the next succeeding Business Day.  All amounts payable
under this Note shall be paid free and clear of, and without reduction by reason
of, any deduction, setoff, or counterclaim.

    

    6.           Refinance.  As
provided by Section A.3 of the Subscription Agreement dated December 4, 2008, in
the event that this Note is not paid in full by the Maturity Date, the Company
shall have the option to refinance this Note and any accrued interest, in whole
or in part, with a 10% Convertible Senior Secured Promissory Note (the
“Convertible Note”).  Promptly following the refinancing and/or payoff
in full of this Note including all accrued and interest, the Holder shall
surrender this Note to the Company for cancellation.

    

    7.           Covenants of the
Company.

    

    (a)          Affirmative Covenants of the
Company.  Until all principal and interest and any other
amounts due and payable under this Note have been paid in full, the Company
shall:

    

    (i)           provide
prompt written notice to the Holder of:  (i) the occurrence of any
Event of Default, or any event which with the giving of notice or lapse of time,
or both, would constitute an Event of Default hereunder, and (ii) any loss or
damage to any Collateral (as hereinafter defined) in excess of
$100,000;

    

    (ii)           do
or cause to be done all things necessary to preserve, renew and keep in full
force and effect its legal existence and the rights, licenses, permits,
privileges and franchises material to the conduct of its business and the
ownership of the Collateral;

    

    (iii)           maintain,
with financially sound and reputable insurance companies, customary insurance
for its insurable properties, including without limitation, the Collateral, all
to such extent and against such risks, including fire, casualty, fidelity,
business interruption and other risks insured against by extended coverage, as
is customary with companies in the same or similar businesses operating in the
same or similar locations;

    

    (iv)           provide
30 days’ prior written notice of its registration of any copyright with the
United States Copyright Office and promptly prepare and file such documentation
as requested by Holder to evidence Holder’s first priority security interest in
such copyrights;

    

    (v)           provide
prompt notice to Holder upon the occurrence of an adverse change in the
financial condition of the Company or reasonable belief that such a change is
imminent; and

    

    (vi)           maintain
the Collateral at the Company’s primary place of business and in a format which
can be accessed and retrieved by Holder.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (b)          Negative Covenants of the
Company.  Until all principal and interest and any other
amounts due and payable under this Note have been paid in full in cash, the
Company shall not:

    

    (i)           declare
or pay any cash dividends on any shares of any class of its capital stock, or
apply any of its property or assets to the purchase, redemption or other
retirement of, or set apart any sum for the payment of any cash dividends on, or
for the purchase, redemption or other retirement of, or make any other
distribution by reduction of capital or otherwise in respect of, any shares of
any class of its capital stock; or

    

    (ii)           sell,
transfer, lease or otherwise dispose (including pursuant to a merger) of any
asset with a value greater than $100,000, except sales, transfers, leases and
other dispositions of inventory, used, obsolete or surplus equipment or other
property and investments in each case in the ordinary course of
business.

    

    8.           Transferability.  This
Note may be transferred by the Holder to any person or entity provided that such
transfer complies with all applicable securities laws.  Such transfer
may be made without any restriction other than compliance with all applicable
securities laws.

    

    9.           Events of
Default.  Subject to Section 6 hereof, the
term “Event of
Default” as used herein means any one of the following events (whatever
the reasons of such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

    

    (a)          Payments.  Any
failure by the Company to pay in full the principal or accrued interest under
the Note on the Maturity Date.

    

    (b)          Breach of Covenant under
this Note.  Any material failure by the Company to observe any
covenant or agreement on its part contained in this Note.

    

    (c)          Breach of Representation and
Warranty or Covenant under other Transaction Document.  The
material breach of any provision of, or the failure of performance of any of the
terms, conditions or covenants under any other document executed and/or
delivered in connection with this Note (including the Subscription Agreement) or
otherwise furnished to Holder in connection with the debt evidenced by this
Note.

    

    (d)          Insolvency.  
(i)  (A) An involuntary proceeding shall be commenced or an
involuntary petition shall be filed in a court of competent jurisdiction seeking
 relief in respect of the Company, or of a substantial part of the property
of the Company, under any Debtor Relief Law and such proceeding or petition
shall continue undismissed for 60 days or an order or decree approving or
ordering any of the foregoing shall be entered; (B) the appointment of a
receiver, trustee, custodian, sequestrator, conservator or similar official for
the Company or for a substantial part of the property of the Company; or
(C) the winding-up or liquidation of the Company.

    

    (ii)              The
Company shall (A) voluntarily commence any proceeding or file any petition
seeking relief under any Debtor Relief Law; (B) consent to the institution
of, or fail to contest in a timely and appropriate manner, any proceeding or the
filing of any petition described in clause (ii) above; (C) apply for
or consent to the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for the Company or for a substantial part of the
property of the Company; (D) file an answer admitting the material
allegations of a petition filed against it in any such proceeding; (E) make
a general assignment for the benefit of creditors; (F) take any action for
the purpose of effecting any of the foregoing; or (G) wind up or
liquidate.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (e)               The
Company shall have defaulted on any secured Indebtedness that ranks pari passu
in right of payment and right of
lien priority with the security interests granted hereunder.

    

    10.           Acceleration of
Note.  If an Event of Default occurs and is continuing, then
and in every such case the Holder may deliver a written notice of default which
shall specify the exact nature of the default and provide the Company thirty
(30) days to cure the default.  If, upon expiration of the thirty (30)
day opportunity to cure the Event of Default shall be continuing, the Holder may
declare the Note to be due and payable immediately, by a further notice in
writing to the Company, and upon any such declaration such Note shall become
immediately due and payable.  At any time after the Note shall become
immediately due and payable as a result of an acceleration thereof, and before a
decree or judgment for payment of the money due has been obtained, the Holder
may, by written notice to the Company, rescind and annul such acceleration and
its consequences.  Further, the Company agrees to pay all fees, costs
and expenses, including reasonable attorneys’ fees and legal expenses, incurred
by the Holder in endeavoring to collect any amounts payable hereunder which are
not paid when due, whether by acceleration or otherwise.

    

    11.           Definitions.  The
following terms shall have the meanings set forth below:

    

    “Business Day” means a
day other than Saturday, Sunday, or any day on which the banks located in the
State of New York are authorized or obligated to close.

    

    “Debtor Relief Law”
means Title 11 of the U.S. Code and any other federal, state or foreign law
relating to insolvency, bankruptcy, receivership or similar law.

    

    “Indebtedness” means
all indebtedness and other
obligations of the Company.

    

    “Maturity Date” means
December 4, 2009 [the date that is one year after the Initial Closing
Date].

    

    “Notes” means the
Notes dated as the date hereof, of which this Note is one, originally issued
pursuant to the Subscription Agreement.

    

    12.           Delay or Omission Not A
Waiver.  No delay or omission of the Holder in exercising any
right, power or privilege hereunder shall impair such right, power or privilege
or be a waiver of any default or an acquiescence therein; and no single or
partial exercise of any such right or power shall preclude other or further
exercise thereof, or the exercise of any other right; and no waiver shall be
valid unless in writing signed by Holder, and then only to the extent
specifically set forth in such writing.  All rights and remedies
hereunder or by law afforded shall be cumulative and shall be available to
Holder until the principal amount of and all interest on this Note have been
paid in full.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    13.           Binding
Effect.  All terms and conditions of this Note and all
covenants of the Company in this Note shall be binding upon the Company and its
successors and permitted assigns.  This Note shall inure to the
benefit of the Holder and its successors and assigns, and any subsequent holder
of this Note.

    

    14.           Delegation.  The
Company may not delegate any of its obligations hereunder without the prior
written consent of the Holder.

    

    15.           Waiver of
Demand.  The Company waives demand, presentment for payment,
notice of dishonor, protest, notice of protest, and notice of non-payment of
this Note.

    

    (a)          Notices.  Any
notice, demand, offer, request or other communication required or permitted to
be given pursuant to the terms of this Note shall be in writing and shall be
deemed effectively given the earlier of (i) when received, (ii) when
delivered personally, (iii) one business day after being delivered by
facsimile (with receipt of appropriate confirmation), or (iv) one business
day after being deposited with an overnight courier service, addressed to the
recipient at the address set forth below unless another address is provided to
the other party in writing:

    
 

    if to the Company,
to:

    

    Novint
Technologies, Inc.

    4601
Paradise Boulevard NW, Suite B

    Albuquerque,
New Mexico 87114

    Attention:  Tom
Anderson, CEO

     

    with a copy to:

     

     

    
      Richardson
& Patel LLP

      10900
Wilshire Boulevard

      Suite
500

      Los
Angeles, CA 90024

      Attention:  Addison
Adams

      Fax:  (310)
208-1154

      Phone:  (310)
208-1182 x721

      Email:
aadams@richardsonpatel.com

       

       

      
        if to Holder, to:

         

        ______________________

        ______________________

        ______________________

        ______________________

      

    

     

     

    
      with a copy to:

       

      ______________________

      ______________________

      ______________________

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    16.           Amendments, Waivers or
Termination.  Neither this Note nor any term hereof may be
changed, waived, discharged or terminated orally, but only by an instrument in
writing signed by the Company and a majority of the holders of the then
outstanding series of Notes issued pursuant to the Subscription
Agreement.  Any such change, waiver, discharge or termination approved
in accordance with this paragraph shall bind all such holders.

    

    17.           Attorneys’ and Collection
Fees.  Should the indebtedness evidenced by this Note or any
part hereof be collected at law or in equity or in bankruptcy, receivership or
other court proceedings, the Company agrees to pay, in addition to the principal
and interest due and payable hereon, all costs of collection, including
reasonable attorneys’ fees and expenses, incurred by the Holder or its agent in
collecting or enforcing this Note.

    

    18.           Governing
Law.  The validity of this Note, the construction of its terms,
and the rights of the Company and Holder shall be determined in accordance with
the laws of the State of Delaware, excluding any principles of conflicts of laws
that would refer the choice of law to another jurisdiction.

    

    19.           Security.

    

    (a)          Creation of Security
Interest.  This Note is a senior secured obligation of the
Company.  In order to secure the payment of the principal and interest
and all other obligations of the Company hereunder now or hereafter owed by the
Company to Holder (the “Secured
Obligations”), the Company hereby grants to Holder (the “Secured Party”) a
security interest in all of the Company’s right, title, and interest in, to and
under, whether now owned or hereafter acquired or arising, the following
property (the “Collateral”):

    

    (i)           
all intellectual property of any kind or nature whatsoever relating to, arising
under or used in connection with products, applications and technologies
in the field of haptics, and any and all other intellectual property including
without limitation patents, patent applications, copyrights, copyright
applications, trademarks and service marks and applications therefor, mask
works, net lists and trade secrets;

    

    (ii)           
all general intangibles, whether now existing or hereafter arising and wherever
arising, creating, evidencing, relating to, arising under or used in connection
with any of the property described in the foregoing item (i), including, but not
limited to, all letters of authorization, permits, licenses, consents, contract
rights, franchises, documents, certificates, records, customer and supplier
contracts, and other rights, privileges and goodwill creating, evidencing,
obtained or used in connection with any of the property described in the
foregoing item (i);

    

    (iii)           all
books, records and documents relating to any and all of the foregoing,
including, without limitation, records of account, whether in the form of
writing, microfilm, microfiche, tape, or electronic media;

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (iv)           all
Accounts;

    

    (v)           
all Chattel Paper;

    

    (vi)           all
Money and all Deposit Accounts, together with all amounts on deposit from time
to time in such Deposit Accounts;

    

    (vii)          all
Documents;

    

    (viii)        
all General Intangibles, including all intellectual property, Payment
Intangibles and Software;

    

    (ix)           all
Goods, including Inventory, Equipment and Fixtures;

    

    (x)           
all Instruments;

    

    (xi)           all
Investment Property;

    

    (xii)          all
Letter-of-Credit Rights and other Supporting Obligations;

    

    (xiii)         all
Records;

    

    (xiv)         all
Commercial Tort Claims;

    

    (xv)          all
Proceeds and Accessions with respect to any of the foregoing Additional
Collateral; and

    

    (xvi)         all
substitutes and replacements for, accessions, attachments, and other additions
to tools, parts, and equipment used in connection with, and all proceeds,
products, and increases of, any and all of the foregoing Collateral, in whatever
form, whether cash or noncash; interest, premium, and principal payments,
redemption proceeds and subscription rights; and, to the extent not otherwise
included, all (A) payments under insurance, or any indemnity, warranty or
guaranty, payable by reason of loss or damage to or otherwise with respect to
any of the foregoing Collateral, (B) cash and (C) security for the payment of
any of the Collateral, and all goods which gave or will give rise to any of the
Collateral or are evidenced, identified, or represented therein or
thereby.

    

    (xvii)        Each
category of Collateral set forth above shall have the meaning set forth in the
Uniform Commercial Code (to the extent such term is defined in the Uniform
Commercial Code), it being the intention of the Company that the description of
the Collateral set forth above be construed to include the broadest possible
range of assets.

    

    (xviii)       The
Company shall file this Note with the U.S. Patent and Trademark Office upon
request by Holder.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (b)          Uniform Commercial Code
Security Agreement.  This Section is intended to be a security
agreement pursuant to the Uniform Commercial Code, as adopted in the State of
Delaware and as amended from time to time, for any of the items specified above
or below as part of the Collateral which, under applicable law, may be subject
to a security interest pursuant to the Uniform Commercial Code, and the Company
hereby grants the Holder a security interest in the Collateral.  The
Company agrees that the Holder may file any appropriate document in the
appropriate index as a financing statement for any of the items specified above
or below as part of the Collateral.  In addition, the Company agrees
to execute and deliver to the Holder, upon the Holder’s request, any financing
statements, as well as extensions, renewals and amendments thereof, and
reproductions of this Agreement in such form as the Holder may reasonably
require to perfect a security interest with respect to the
Collateral.  The Company shall pay all costs of filing such financing
statements and any extensions, renewals, amendments, and releases thereof, and
shall pay all reasonable costs and expenses of any record searches for financing
statements the Holder may reasonably require.  The Company shall also
take such further actions as may be required by Holder, including, without
limitation, modifications to the provisions hereof, to give effect to the intent
hereof and to insure that Holder at all times has a valid, perfected Lien on the
Collateral.  Upon the occurrence of an Event of Default, Secured Party
shall have the remedies of a secured party under the Uniform Commercial Code
and, at Secured Party’s option, may also invoke the other remedies provided in
this Note as to such items.

    

    (c)          Rights of Secured
Party.   (i)  Upon an uncured Event of Default,
Secured Party may require the Company to assemble the Collateral and make it
available to Secured Party at the place to be designated by Secured Party which
is reasonably convenient to the parties.  Secured Party may sell all
or any part of the Collateral as a whole or in parcels by public
auction.  Secured Party may bid at any public sale on all or any
portion of the Collateral.  Secured Party shall give the Company
reasonable notice of the time and place of any public sale or of the time after
which any private sale or other disposition of the Collateral is to be made, and
notice given at least 10 days before the time of the sale or other disposition
shall be conclusively presumed to be reasonable.

    

    (ii)           Upon
any such sale of the Collateral by Secured Party, the proceeds therefrom shall
be allocated in the following order: (i) to pay any and all reasonable expenses
incurred by Secured Party in selling such collateral, (ii) to pay all accrued
but unpaid interest on the Note, (iii) to repay outstanding principal on the
Note, and (iv) the remainder shall be paid to the Company.

    

    20.           Deficiency.  The
Company shall remain liable for any deficiency if the proceeds of any sale or
other disposition of the Collateral are insufficient to pay this Note, including
all Secured Obligations, and the fees and disbursements of any attorneys
employed by Holder to collect such deficiency.

    

    

    

    [Signature
page follows.]

    

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

    

     

    IN
WITNESS WHEREOF, the Company has caused this Note to be signed by its duly
authorized officer and this Note to be dated December __, 2008.

     

     

    
      
        
          
            
              
                	 	

                        COMPANY:

                      	 
	 	 	 
	 	

                        NOVINT
      TECHNOLOGIES, INC. 

                      	 
	 	 	 	 
	
                      	
                        By:
      

                      	                                                                                                           
    	 
	 	Name: 	

                        Thomas
      G. Anderson 

                      	 
	 	Title: 	

                        Chief
      Executive Officer 

                      	 

              

            

          

        

      

    

     

     

     

     

     

     

    

      
        
          
            [8%
SENIOR SECURED PROMISSORY NOTE]

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