Document:

Jinhao Motor Company: Exhibit 10.13 - Filed by newsfilecorp.com

Exhibit 10.13 
(English Translation) 

TECHNOLOGY LICENSE CONTRACT 

This contract (the “Contract”) is entered by and between
the following two parties on July 23, 2010 in Zhaoqing City, Guangdong Province,
China: 

Licensor: Lin Xiangzhong (the “Licensor”) 
Licensee:
Guangdong Jinhao Motorcycle Company Limited (the “Licensee”) 

Whereas, the Licensor is the legal owner of a new type
permanent magnetism brushless direct current electric motor technology and the
Licensee is the investor of all expenses of the research and development of
product and technology of a new type permanent magnetism brushless direct
current electric motor; 

Whereas, the Licensor has right and is willing to license the
Licensee to manufacture, use, sell, promise to sell and import a new type
permanent magnetism brushless direct current electric motor and use the
technology of a new type permanent magnetism brushless direct current electric
motor; 

Whereas, the Licensee may use the Technology to manufacture and
sell Patent Product (as defined below); 

The parties through friendly consultation and reach the
following agreement subject to the terms and conditions hereto: 

Article 1. Definition  

1.1 “Patent Product” means the new type permanent magnetism
brushless direct current electric motor as specified in the attachment one of
this Contract; such product has been certified as utility model patent (the
“Patent”) by State Intellectual Property Office of the PRC with the
patent No. of ZL 200520095349.4. 

Exhibit 10.13 
(English Translation) 

1.2 “Technology” means the technology to produce the Patent
Product. 

Article 2. The Contract scope  

2.1 The Licensor agrees to license the Licensee to manufacture,
use, sell, promise to sell and import Patent Product and the Licensee agrees to
obtain license from the Licensor to o manufacture, use, sell, promise to sell
and import Patent Product. 

2.2 The Licensor agrees to license the Licensee to use the
Technology and the Licensee agrees to obtain license from the Licensor to use
the Technology. 

2.3 The license the Licensee obtains from the Licensor pursuant
to clause 2.1 and 2.2 of this Contract shall be an exclusive license. Within the
valid term of this Contract, the Licensor himself shall not manufacture Patent
Product, or use the Technology, or license or transfer or sell or mortgage or
pledge the Technology or the Patent to any third party. 

2.4 The Licensor hereby agrees, (1) the Licensee per se has
right to use the Patent or the Technology, and (2) the Licensee has right to
license any third party at its sole discretion to use the Patent or the
Technology without the Licensor’s consent and/or any fee payable to the
Licensor. 

2.5 The licensed district of the exclusive license of the
Patent and the Technology the Licensor gives to the Licensee is China (for the
purpose of this Contract, China does not include Hong Kong, Macau and Taiwan).

2.6 The Licensor shall provide to the Licensee the materials of
the Technology, including the name, content, application status and application
number. 

Exhibit 10.13 
(English Translation) 

2.7 The Licensor shall provide to the Licensee sufficient and
timely technical support, guidance and training for the use of the Technology
and the Patent. 

2.8 During the performance of this Contract, if the Licensee
needs the Licensor to provide technical service or update or develop new
technology, the Licensor shall cooperate to make research and development in
accordance with the Licensee’s requirements at the expenses of the Licensee. The
Licensor and Licensee shall enter into an agreement with respect to the research
and development under this clause. 

Article 3. The price of the Contract  

3.1 The exclusive license under this Contract licensed by the
Licensor to the Licensee is free. The Licensee shall not be obligated to pay any
fee or expense to the Licensor for such license. 

Article 4. Delivery and modification of the materials  

4.1 The Licensor shall provide to the Licensee the name and
content of materials of the Technology and the status and relevant situations in
relation to the Patent applied by the Licensor. 

4.2 The Licensor shall immediately delivery the materials of
the Technology as set forth in clause 4.1 upon execution of this Contract. 

4.3 Within the valid term of this Contract, if the Licensor
makes any improvement or development of the Technology and the Patent, he shall
deliver all the technical achievements and materials of such improvement and
development to the Licensee for free and the Licensee is entitled to the
ownership, patent application right and patent right of such technical
achievements. The Licensor shall not apply such technical achievement for patent or transfer or license it to
any third party. 

Exhibit 10.13 
(English Translation) 

4.4 Within the valid term of this Contract, if the Licensor
makes any improvement or development of the Technology and the Patent, the
intellectual properties such as patent application right and patent right of all
the technical achievements made therefrom and the technical achievements per se
shall belong to the Licensee; the Licensor shall not use such technical
achievements unless (1) the Licensor has obtained the prior written consent of
the Licensee, and (2) such technical achievements are only used to further
development by the Licensor, as authorized by the Licensee. 

Article 5. Infringement and covenants  

5.1 The Licensor covenants that he is the legal owner of the
Patent, the Technology and relevant materials and has right to license the
Licensee to use the Patent and the Technology. If there is any third party
claims infringement against the Licensee for the Licensee’s use of the Patent or
the Technology in or outside China, the Licensor shall be responsible for
negotiation with such third party and assume all legal and economic liabilities
resulting therefrom. If the Licensee is therefore liable to pay compensation to
the third party or subject to other legal obligations according to relevant
effective court judgement, verdict, award or reconciliation agreement, the
Licensor shall, before the Licensee undertakes such liabilities and obligation
to the third party, compensate all the loss of the Licensee including such
liabilities and obligation the Licensee is subject to. 

5.2 Within the valid term of this Contract, the Licensor shall
keep the Patent valid and legal and pay the patent annual fees and other
relevant fees in accordance with relevant regulation to maintain the validity of
the Patent. 

5.3 Within the valid term of this Contract, Licensor shall
immediately notice Licensee in writing for any change of the nature of the Patent
or the Technology. The parties shall consult the performance of this Contract
then. 

Exhibit 10.13 
(English Translation) 

5.4 Within the valid term of this Contract, if the Licensor
plans to waive the Patent, he shall notice the Licensee in writing at least
thirty (30) days in advance; the Licensor shall transfer the Patent to Licensee
for free, if required by the Licensee, and execute all necessary documents and
provide all necessary assistance for such transfer to complete the patent
transfer registration and announcement in State Intellectual Property Office of
the PRC. 

Article 6. Tax  

6.1 Each party shall undertake its own taxes under this
agreement in accordance with relevant laws and regulations. 

Article 7. Dispute Resolution  

7.1 Any dispute arising from or related to this Contract shall
be submitted to the court which is located in the execution place of this
Contract. 

Article 8. Valid Term  

8.1 Both parties acknowledge that this Contract constitutes the
entire agreement of both Parties with respect to license of Patent and the
Technology, and replaces all prior agreements, contracts, memorandums, documents
and discussion with respect to the license of the Patent and the Technology. The
Patent Technology Use Right Transfer Agreement signed by both parties as of
October 1, 2008, shall be terminated on the effective date of this Contract.

8.2 This Contract shall be effective upon the execution by the
Licensor and the 

Exhibit 10.13 
(English Translation) 

Licensee. The license under this Contract can be traced back to
the date of initiative use by Licensee. The term of this Contract shall
terminate on the earliest of the following: 

(1) expiration of the Patent; 

(2) the Patent is terminated before expiration; or 

(3) bankruptcy of the Licensee, or Licensee is subject to a
winding up or dissolution. 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 

Exhibit 10.13 
(English Translation) 

Signature Page 

Licensee: Guangdong Jinhao Motorcycle Company Limited 

Signature: (company seal of Guangdong Jinhao Motorcycle Co.,
Ltd.) 

Date of execution: July 23, 2010 

Licensor: Lin Xiangzhong 

Signature: /s/ Lin Xiangzhong                          

Date of execution: July 23, 2010Jinhao Motor COmpany: Exhibit 10.1 - Filed by newsfilecorp.com

Exhibit 10.1 

SECURITIES PURCHASE AGREEMENT 

     This Securities Purchase
Agreement (this “Agreement”) is dated as of August 11, 2010 among Jinhao
Motor Company, a Nevada corporation (the “Company”), the investors listed
on the Schedule of Buyers attached hereto as Exhibit A and identified on
the signature pages hereto (each, an “Investor” and collectively, the
“Investors”), Mr. Tsoi Chak Shing (the “Major Shareholder”),
Jinhao Power Holdings Limited, a British Virgin Islands company (the “BVI
Company”), Jinhao Motorcycle Company Limited, a Hong Kong company (the
“HK Company”), Guangdong Jinhao Motorcycle Co., Ltd., a Sino-Foreign
Joint Venture organized under the laws of the PRC (“SFJV”) and Jinhao New
Energy (Zhaoqing) Development Co, Ltd., a wholly foreign-owned enterprise
organized under the laws of the PRC (the “WFOE,” and together with the
Company, the BVI Company, the HK Company and SFJV, the “Existing Company
Entities”). 

     WHEREAS, subject to the terms and
conditions set forth in this Agreement, and effected in reliance upon the
exemption from securities registration afforded by the provisions of Regulation
D (as defined below) or Regulation S (as defined below), as the case may be, as
promulgated by the Commission (as defined below) under the Securities Act (as
defined below), the Company desires to issue and sell to each Investor, and each
Investor, severally and not jointly, desires to purchase from the Company
certain securities of the Company, as more fully described in this Agreement.

AGREEMENT 

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

ARTICLE 1 
DEFINITIONS 

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

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

     “Affiliate” means any
Person that, directly or indirectly through one or more intermediaries, controls
or is controlled by or is under common control with a Person. 

     “Balance Sheet Date” has
the meaning set forth in Section 3.1(h)(ii) . 

     “Big Four Accounting Firm”
means KPMG, PricewaterhouseCoopers, Deloitte Touche Tohmatsu or Ernst &
Young, including their respective member firms in the PRC and Hong Kong, or any
other global accounting firm agreed to by the Investors and the Company, in each
case so long as it is registered with the Public Company Accounting Oversight
Board. 

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

     “Certificate of
Designation” means a Certificate of Designation to be filed prior to the
Closing by the Company with the Secretary of State of the State of Nevada,
setting forth the rights, preferences and privileges of the Series A Preferred
Stock, in the form attached as Exhibit B hereto. 

     “Closing” means the
closing of the purchase and sale of the Units pursuant to Article 2. 

     “Closing Date” means the
date on which the Closing occurs. 

     “Commission” means the
United States Securities and Exchange Commission. 

     “Common Stock” means the
common stock of the Company, par value $0.001, per share. 

     “Common Stock Equivalents”
has the meaning set forth in Section 3.1(g) . 

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

     “Company Entities” means
the Company, the HK Company, SFJV, WFOE and all existing Subsidiaries of any
such entities and any other entities which hereafter become Subsidiaries of any
such entities. 

     “Conversion Shares”
means shares of Common Stock issuable upon conversion of the Series A
Preferred Stock. 

     “Environmental Laws” means
all applicable Legal Requirements, or other legally binding requirements, of the
PRC or any other applicable jurisdiction, relating to: (1) the Release or
threatened Release of Hazardous Substances; (2) the reporting, licensing and/or
clean-up of such Release or otherwise relating to the generation, use, storage,
disposal, transport or handling of Hazardous Substances; (3) occupational health
and safety statutes and regulations; and (4) product related health and safety
Laws and regulations. 

     “Escrow Account” has the
meaning set forth in Section 2.1(b) . 

     “Escrow Agreement” means
the escrow agreement by and among the Company, the Placement Agent and Citibank,
N.A., Hong Kong Branch. 

     “EV” has the meaning set
forth in Section 4.4. 

2 

     “EV Laws” means all
applicable Legal Requirements, or other legally binding requirements, of the PRC
or any other applicable jurisdiction, relating to EVs. 

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

     “Exchange Cap” has
the meaning set forth in Section 6.2 hereof. 

     “Exchange Act” means the
Securities Exchange Act of 1934, as amended. “Existing Company Entities”
has the meaning set forth in the preamble. “Financial Statements” has the
meaning set forth in Section 3.1(h)(ii) . 

     “Governmental Body” shall
mean any: (a) nation, state, commonwealth, province, territory, county,
municipality, district or other jurisdiction or political subdivision of any
nature; (b) federal, state, local, municipal, foreign or other government; or
(c) governmental or quasi-governmental authority of any nature (including any
governmental or administrative division, department, board, agency, commission,
instrumentality, official, organization, unit, body or entity) and any court,
arbitrator or other tribunal, and any self regulatory organization. 

     “Haoyan” means Zhaoqing
Haoyan Industrial Co., Ltd., a PRC company. 

     “Hazardous Substances”
means (1) any oil, petroleum or petroleum product or petroleum derivatives,
radioactive materials, asbestos, any equipment containing polychlorinated
biphenyls and radon gas, and (2) any chemicals, materials or substances referred
to as being toxic substances, hazardous wastes, hazardous materials, or
hazardous substances, contaminants or pollutants or words of similar import
under any Environmental Laws. 

     “Hong Kong” means the Hong
Kong Special Administrative Region of the PRC. 

     “HK Company” has the
meaning set forth in the preamble. 

     “IFRS” means International
Financial Reporting Standards adopted by the International Accounting Standards
Board (IASB). 

     “Incentives” has the
meaning set forth in Section 3.1(t)(ii) . 

     “Indemnification
Agreement” means the Indemnification Agreement entered into by and among the
Company and the Investor Director, in the form attached hereto as Exhibit
F. 

     “Indemnifying Party” and
“Indemnifying Parties” have the meanings set forth in Section 4.5(a) .

     “Indemnified Party” and
“Indemnified Parties” have the meanings set forth in Section 4.5(a) .

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

3 

     “Investment Amount” means,
with respect to each Investor, the Investment Amount indicated on such
Investor’s signature page and set forth opposite such Investor’s name on
Exhibit A to this Agreement. 

     “Investment Company Act”
means the Investment Company Act of 1940, as amended. 

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

     “Investor Director” means
a member of the board of directors of the Company who, pursuant to the terms of
the Investors Rights Agreement and the Certificate of Designation, is
exclusively appointed by the Lead Investor. 

     “Investors’ Rights
Agreement” means the Investors’ Rights Agreement entered into by and among
the Company, the Major Shareholder and the Investors, in the form attached
hereto as Exhibit E. 

     “Knowledge”, “to the
Knowledge” or words of similar import means the actual and constructive
knowledge, that would have been acquired when exercising the duties and
responsibilities of the position of the relevant Person in a reasonable and
diligent manner. 

     “Lead Investor” means DBS
Nominees (Private) Limited, a Singapore Company. 

     “Legal Requirement”
shall mean (i) any national, international, supra-national, federal state,
local, municipal, foreign or other law, statute, constitution, principle of
common law, resolution, ordinance, code, edict, decree, rule, regulation,
interpretation, ruling or requirement issued, enacted, adopted, promulgated,
implemented or otherwise put into effect by or under the authority of any
Governmental Body (or under the authority of any national securities exchange
upon which the Common Stock is then listed or traded) and (ii) final judgments,
orders, determinations or awards of any court, arbitral body, administrative
body or tribunal from which there is no right of appeal or if there is a right
of appeal such appeal is not prosecuted within the allowable time. Reference to
any Legal Requirement means such Legal Requirement as amended, modified,
codified, replaced or reenacted, in whole or in part, and in effect from time to
time, and reference to any section or other provision of any Legal Requirement
means that provision of such Legal Requirement from time to time in effect and
constituting the substantive amendment, modification, codification, replacement
or reenactment of such section or other provision. 

     “Lien” means any mortgage,
lien, charge, encumbrance, security interest, pledge, easements, rights of first
refusal, options, restrictions, defect of title, encumbrance or other charge of
any kind. 

     “Losses” has the meaning
set forth in Section 4.5(a) . 

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

4 

     “Material Contract” has
the meaning set forth in Section 3.1(v) . 

     “OFAC” means the Office of
Foreign Assets Control of the United States Treasury Department. 

     “Outside Date” means the
ninety (90) calendar day (if such calendar day is a Trading Day and if not, then
the first Trading Day following such ninety (90) calendar day) following the
date of this Agreement. 

     “Per Unit Purchase Price”
equals $4.37496. 

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

     “Placement Agent”
means Hudson Securities, Inc. 

     “Pledge Agreement” means
the Pledge Agreement entered into by and among the Major Shareholder and the
Investors, in the form attached hereto as Exhibit G. 

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

     “PRC Entities” means SFJV
or the WFOE. 

     “Proceeding” means an
action, claim, suit, investigation or proceeding (including an investigation or
partial proceeding, such as a deposition), whether commenced or threatened. 

     “Regulation D”
means Regulation D under the Securities Act or any successor provision. 

     “Regulation S”
means Regulation S under the Securities Act or any successor provision. 

     “Reimbursable Fees and
Expenses” means, with respect to each Investor, fees and expenses of such
Investor and its advisors relating to the transactions contemplated by the
Transaction Documents, which shall be agreed on between the Investors and the
Company before the Closing. 

     “Release” means any
release, spill, leak, emission, discharge, injection, escape, leach, emptying,
pumping, pouring, dumping or other disposal. 

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

     “SAIC” means the State
Administration for Industry and Commerce of the PRC or, with respect to the
issuance of any business license or filing or registration to be effected with
or by the State Administration for Industry and Commerce, any
Governmental Body which is similarly competent to issue such business license or
accept such filing or registration under the laws of the PRC, including its
relevant local bureaus, as applicable. 

5 

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

     “Securities” means the
Series A Preferred Stock and the Warrants. 

     “Securities Act” means the
United States Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder. 

     “Series A Preferred
Stock” means the Series A Redeemable Convertible Preferred Stock of
the Company, par value $0.001 per share. 

     “SFJV” has the meaning set
forth in the preamble. 

     “Shares” means the
Conversion Shares and the Warrant Shares. 

     “Short Sales” include all
“short sales” as defined in Rule 200 promulgated under Regulation SHO under the
Exchange Act and all types of direct and indirect stock pledges, forward sale
contracts, options, puts, calls, swaps and similar arrangements (including on a
total return basis), and sales and other transactions through non-US broker
dealers or foreign regulated brokers. 

     “Subsidiary” means with
respect to any specified Person, any Person of which the specified Person,
directly or indirectly, owns more than fifty percent (50%) of the issued and
outstanding authorized capital, share capital, voting interests or registered
capital. 

     “Tax” (and, with
correlative meaning, “Taxes” and “Taxable”) means any and all
taxes including, without limitation, (i) any income, alternative or add-on
minimum tax, gross income, gross receipts, sales, use, ad valorem, transfer,
franchise, profits, value added, net worth, license, withholding, payroll,
employment, excise, severance, stamp, occupation, premium, property,
environmental or windfall profit tax, custom, duty, governmental fee or other
like assessment or charge in the nature of tax, or other tax of any kind
whatsoever, together with any interest or any penalty, addition to tax or
additional amount imposed by any Tax Authority, (ii) any liability for the
payment of any amounts of the type described in (i) as a result of being a
member of an affiliated, consolidated, combined or unitary group for any taxable
period or as the result of being a transferee or successor thereof and (iii) any
liability for the payment of any amounts of the type described in (i) or (ii) as
a result of any express or implied obligation to indemnify any other person.

     “Tax Authority” means any
United States, British Virgin Islands, PRC, Hong Kong or other local or foreign
Governmental Body or regulatory body responsible for the imposition of any
Taxes. 

     “Tax Return” means any
return, declaration, report, claim for refund, information return or similar
statement filed or required to be filed with respect to any Taxes, including any
schedule or attachment thereto, and including any amendment thereof. 

6 

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

     “Trading Market” means
whichever of the New York Stock Exchange, NYSE Amex, the NASDAQ Global Select
Market, the NASDAQ Global Market, the NASDAQ Capital Market, OTC Bulletin Board,
or the Hong Kong Stock Exchange (main board), the Singapore Exchange, on which
the Common Stock is listed or quoted for trading on the date in question. 

     “Transaction Documents”
means this Agreement, the Certificate of Designation, the Warrants, the
Indemnification Agreement and the Investors’ Rights Agreement. 

     “Units” has the
meaning set forth in Section 2.1(a) . 

     “VIE Documents” means the
following documents: (i) exclusive option agreement by and between the WFOE,
Haoyan and SFJV dated as of July 19, 2010, (ii) Shareholder’s Right Proxy and
Operation Management Service Agreement by and between the WFOE, Haoyan and SFJV
dated as of July 19, 2010, and (iii) share pledge agreement by and between the
WFOE, Haoyan and SFJV dated as of July 19, 2010. 

     “Warrants” means
the Common Stock purchase warrants in the form of Exhibit C, which are
issuable to the Investors at the Closing. 

     “Warrant Shares”
means shares of Common Stock issuable upon exercise of the Warrants, subject
to adjustments as set forth in the Warrants. 

     “WFOE” has the meaning set
forth in the preamble. 

ARTICLE 2 
PURCHASE AND SALE 

     2.1 Purchase Price and
Closing. 

          (a)
Subject to the terms and conditions hereof, the Company agrees to issue and sell
to the Investors and, in consideration of and in express reliance upon the
representations, warranties, covenants, terms and conditions of this Agreement,
the Investors, severally but not jointly, agree to purchase, an aggregate of
6,857,204 of Units (the “Units”), each consisting of (i) one (1) share of
Series A Preferred Stock convertible into one (1) share of Common Stock and (ii)
a Warrant to purchase one-half (0.5) share of Common Stock. 

          (b)
The Closing of the purchase and sale of the Units to be acquired by the
Investors from the Company under this Agreement shall take place at the offices
of Simpson Thacher & Bartlett LLP, 35th Floor, ICBC Tower, 3 Garden Road,
Central Hong Kong, at 10 a.m., Hong Kong time on such date as the Investors and
the Company may agree upon; provided, that all of the conditions set forth in
Article 5 hereof and applicable to the Closing shall have been fulfilled or waived in accordance herewith. Subject to the
terms and conditions of this Agreement, at the Closing the Company shall deliver
or cause to be delivered to each Investor (x) a certificate evidencing a number
of shares of Series A Preferred Stock as determined pursuant to Section
2.2(a)(i) hereof, and (y) a Warrant to purchase such number of shares of Common
Stock as determined pursuant to Section 2.2(a)(ii) hereof. At or prior to the
Closing, each Investor shall deliver its Investment Amount, after deducting its
Reimbursable Fees and Expenses, by wire transfer to the escrow account (the
“Escrow Account”) mutually agreed by the Company and the Placement Agent: 

7 

Pay to: Citibank, N.A., New York 
SWIFT code: CITIUS33

For Account of: Citibank, N.A., Hong Kong 
SWIFT Code: CITIHKHX 
For
Further Credit to: Citi AT Escrow Jinhao/Hudson 
Account Number: 61704857

Reference: Attn : Regional Loans Agency, Jinhao/Hudson escrow acc 

          For
the avoidance of doubt, receipt of the aforementioned amounts by the Company
shall constitute receipt of the full purchase price for the Units. 

          (c)
No Fractional Shares. Notwithstanding anything to the contrary herein, no
certificate or scrip representing fractional shares of the Series A Preferred
Stock or Warrant shall be issued and any such fractional share will be rounded
up to the nearest whole number. 

          (d)
Regulation D and Regulation S. The Company and the Investors are
executing and delivering this Agreement in accordance with and in reliance upon
the exemption from securities registration afforded by Regulation D or
Regulation S, as the case may be, as promulgated by the Commission under the
Securities Act. 

     2.2 Closing Deliveries.

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

               (i)
a certificate representing the shares of Series A Preferred Stock equal to such
Investor’s Investment Amount divided by the Per Unit Purchase Price as is set
forth opposite the name of such Investor on Exhibit A attached hereto;

               (ii)
a Warrant to purchase such number of shares of Common Stock equal to 50% of such
Investor’s Investment Amount divided by the Per Unit Purchase Price, as is set
forth opposite the name of such Investor on Exhibit A attached hereto;

               (iii)
an officer’s certificate, in agreed form, certifying the satisfaction of each of
the conditions precedent to the Investors’ obligation to purchase Shares; 

8 

               (iv)
the Investors’ Rights Agreement, duly executed by the Company, the Major
Shareholder and the Investors; 

               (v)
the Pledge Agreement, duly executed by the Major Shareholder and the Investors;
and 

               (vi)
the Indemnification Agreement, duly executed by the Company and the Investor
Director. 

          (b)
At or prior to the Closing, each Investor shall deliver or cause to be delivered
to the Company the following (the “Investor Deliverables”): 

               (i)
Such Investor’s investor questionnaire substantially in the form of Exhibit
D hereto; 

               (ii)
such Investor’s Investment Amount, after deducting such Investors’ Reimbursable
Fees and Expenses, in immediately available funds, by wire transfer to the
Escrow Account; and 

               (iii)
the Investors’ Rights Agreement, duly executed by such Investor. 

ARTICLE 3 
REPRESENTATIONS AND WARRANTIES 

     3.1 Representations and
Warranties of the Company. Subject to exceptions set forth on the Disclosure
Schedules attached hereto as Schedule 1 (the “Disclosure
Schedules”) or in the SEC Reports (as hereinafter defined), each of the the
Major Shareholder and the Existing Company Entities (the “Warrantors”)
jointly and severally makes the following representations and warranties to each
Investor as of the date hereof and as of the Closing Date: 

          (a)
Subsidiaries. The Existing Company Entities have no direct or indirect
Subsidiaries other than as disclosed in Section 3.1(a) of the Disclosure
Schedules. Except as disclosed in Section 3.1(a) of the Disclosure Schedules,
the Company owns, directly or indirectly, all of the capital stock of each
Subsidiary free and clear of any and all Liens, and all the issued and
outstanding shares of capital stock of each Subsidiary are validly issued and
are fully paid except as permitted under PRC laws, non-assessable and free of
preemptive and similar rights. 

          (b)
Organization and Qualification. Except as disclosed in Section 3.1(b) of
the Disclosure Schedules, each of the Existing Company Entities is duly
incorporated or otherwise organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation or organization (as
applicable), with the requisite power and authority to own and use its
properties and assets and to carry on its business as currently conducted. No
Existing Company Entity is in violation of any of the provisions of its
respective certificate or articles of incorporation, bylaws or other
organizational or charter documents. Each Existing Company Entity is duly
qualified to conduct its respective businesses and is in good standing as a
foreign corporation or other entity in each jurisdiction in which the nature of
the business conducted or property owned by it makes such qualification
necessary, except where the failure to be so qualified or in good standing, as the case may be,
could not, individually or in the aggregate, have or reasonably be expected to
result in a Material Adverse Effect. 

9 

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

          (d)
No Conflicts. Except as set forth on Section 3.1(d) of the Disclosure
Schedules, the execution, delivery and performance of the Transaction Documents
by the Company and the consummation by the Company of the transactions
contemplated thereby do not and will not (i) conflict with or violate any
provision of the Company’s, or any Existing Company Entity’s certificate of
incorporation or bylaws, or (ii) conflict with, or constitute a default (or an
event that with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or
cancellation (with or without notice, lapse of time or both) of, any agreement,
credit facility, debt or other instrument (evidencing any of the debt of any
Existing Company Entity’s debt or otherwise) or other understanding to which any
of the Existing Company Entities is a party or by which any property or asset of
any of the Existing Company Entities is bound or affected, or (iii) result in a
violation of any Legal Requirement, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority
to which the Company or a Subsidiary is subject (including federal and state
securities laws and regulations), or by which any property or asset of any
Existing Company Entity is bound or affected; except in the case of each of
clauses (ii) and (iii), such as could not, individually or in the aggregate,
have or reasonably be expected to result in a Material Adverse Effect. It is
understood that the failure by the Company to timely make payments of cash
dividends on the Series A Preferred Stock would be a Material Adverse Effect for
purposes of the foregoing sentence and Section 3.1(d) of the Disclosure
Schedules contains an explanation of the Company’s intended method of
transmitting dividend payment funds from the PRC to the holders from time to
time of the Series A Preferred Stock. 

          (e)
Filings, Consents and Approvals. None of the Existing Company Entities is
required to obtain any consent, waiver, authorization or order of, give any
notice to, or make any filing or registration with, any Governmental Body in
connection with the execution, delivery and performance by the Company of the
Transaction Documents, other than (i) the filing with the Commission of one or
more registration statements in accordance with the requirements of this
agreement, (ii) filings required by state securities laws, (iii) the filing of a
Notice of Sale of Securities on Form D with the Commission under Regulation D of
the Securities Act, (iv) the filings required in accordance with Section 4.3,
(v) such filing as required to be made under the rules and regulations of the applicable
Trading Market, and (vi) those that have been made or obtained prior to the date
of this Agreement. 

10 

          (f)
Issuance of the Securities. The Securities have been duly authorized and
when issued and paid for in accordance with the Transaction Documents, will be
duly and validly issued, fully paid and nonassessable, free and clear of all
Liens. The Warrants are valid and binding obligations of the Company,
enforceable in accordance with their terms. The Company has reserved from its
duly authorized capital stock the shares of Common Stock issuable pursuant to
all Securities sold to the Investors. 

          (g)
Capitalization. 

                    (i)
The number of shares and type of all authorized, issued and outstanding capital
stock of the Company, and all shares of Common Stock reserved for issuance under
the Company’s various option and incentive plans, is specified on Section
3.1(g)(i) of the Disclosure Schedules. Except as specified on Section 3.1(g)(i)
of the Disclosure Schedules, no securities of the Company are entitled to
preemptive or similar rights, and no Person has any right of first refusal,
preemptive right, right of participation, or any similar right to participate in
the transactions contemplated by the Transaction Documents. Except as specified
on Section 3.1(g)(i) of the Disclosure Schedules, there are no outstanding
options, warrants, scrip rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities, rights or obligations
convertible into or exchangeable for, or giving any Person any right to
subscribe for or acquire, any shares of Common Stock, or contracts, commitments,
understandings or arrangements by which the Company or any Subsidiary is or may
become bound to issue additional shares of Common Stock, or securities or rights
convertible or exchangeable into shares of Common Stock (“Common Stock
Equivalents”). The sale of Shares to the Investors will not, immediately or
with the passage of time, obligate the Company to issue shares of Common Stock
or other securities to any Person (other than the Placement Agent pursuant to
the placement agent agreement dated as of November 16, 2009) or result in a
right of any holder of Company securities to adjust the exercise, conversion,
exchange or reset price under such securities. 

               (ii)
Immediately before the Closing, the authorized capital of the Company shall
consist of 200,000,000 shares of Common Stock with a par value of US$0.001 each,
48,000,436 of which will be issued and outstanding, and 7,000,000 shares of
Series A Preferred Stock with a par value of US$0.001 each, none of which will
be issued and outstanding. Section 3.1(g)(ii) of the Disclosure Schedules sets
forth the capitalization of the Company immediately before the Closing,
including the number of shares of the following: (1) issued and outstanding
Common Stock (or other equity interests (whether in the form of securities
convertible into, exchangeable or exercisable for shares of Common Stock or
other equity interests)), (2) issued and outstanding share options, (3) share
options not yet issued but reserved for issuance, including vesting schedule and
exercise price and (4) issued and outstanding warrants. 

          (h)
SEC Reports; Financial Statements. 

11 

               (i)
The Company has filed all reports required to be filed by it under the
Securities Act and the Exchange Act, including pursuant to Section 13(a) or
15(d) thereof, for the twelve months preceding the date hereof (or such shorter
period as the Company was required by law to file such reports) (the foregoing
materials being collectively referred to herein as the “SEC Reports”) on
a timely basis or has timely filed a valid extension of such time of filing and
has filed any such SEC Reports prior to the expiration of any such extension.
The Company is not aware of any event occurring or expected to occur on or prior
to the Closing Date (other than the transactions contemplated by the Transaction
Documents and quarterly releases of financial results) that would require the
filing of, or with respect to which the Company intends to file, a Form 8-K
after the Closing. All documents required to be filed as exhibits to the SEC
Reports have been filed as required. As of their respective dates, the SEC
Reports complied, as to form, in all material respects with the requirements of
the Securities Act and the Exchange Act and the rules and regulations of the
Commission promulgated thereunder, and none of the SEC Reports, when filed,
contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading. The financial statements of the Company and each Subsidiary included
in the SEC Reports comply in all material respects with applicable accounting
requirements and the rules and regulations of the Commission with respect
thereto as in effect at the time of filing. Such financial statements have been
prepared in accordance with IFRS applied on a consistent basis during the
periods involved, except as may be otherwise specified in such financial
statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by IFRS for full year financial
statements, and fairly present in all material respects the financial position
of the Company and its consolidated Subsidiaries as of and for the dates thereof
and the results of operations and cash flows for the periods then ended,
subject, in the case of unaudited statements, to normal, immaterial, year-end
audit adjustments. 

               (ii)
Each Existing Company Entity has delivered to the Lead Investor (x) its
consolidated financial statements (including balance sheet, income statement and
statement of cash flow, and the notes thereto) as at and for the fiscal years
ended December 31, 2007, 2008 and 2009; and (y) its consolidated management
account for the six months ended June 30, 2010 (the “Balance Sheet Date”)
(collectively, the “Financial Statements”). The foregoing has been
prepared in accordance with IFRS throughout the periods indicated. The Financial
Statements are complete and correct in all material respects and fairly present
the financial condition and operating results of the Company as of the dates,
and for the periods, indicated therein, subject in the case of the unaudited
Financial Statements to normal year end audit adjustments. 

          (i)
Material Changes. Since the Balance Sheet Date, except as disclosed in
the SEC Reports and the Disclosure Schedules, there has been not been: 

               (i)
any event, occurrence, fact, condition, change, effect or development that,
individually or in the aggregate, has or could become or result in a Material
Adverse Effect; 

               (ii)
any liabilities (contingent or otherwise) incurred by any Existing Company
Entity other than (A) trade payables, accrued expenses and other liabilities
incurred in the ordinary course of business consistent with past practice
and (B) liabilities not required to be reflected in the Company’s financial
statements pursuant to IFRS; 

12 

               (iii)
any alteration of any method of accounting or the identity of any auditors,
legal counsels, brokers, and consultants of any Existing Existing Company
Entity; 

               (iv)
any declaration, setting aside or payment or other distribution in respect of
any of the capital stock of any Existing Company Entity, or any direct or
indirect redemption, purchase, or other acquisition of any of such capital stock
by any Existing Company Entity; 

               (v)
any material damage, destruction or loss, whether or not covered by insurance;

               (vi)
any waiver or compromise by any Existing Company Entity of a valuable right or
of a material debt owed to it; 

               (vii)
any satisfaction or discharge of any Lien or claim or payment of any obligation
by any Existing Company Entity, except in the ordinary course of business; 

               (viii)
any material change to a contract or agreement by which any Existing Company
Entity or any of its assets is bound or subject; 

               (ix)
any material change in any compensation arrangement or agreement with any
employee, officer, or director of any Existing Company Entity; 

               (x)
any resignation or termination of employment of any senior officer, executive or
other key employee of any Existing Company Entity; 

               (xi)
any mortgage, pledge, transfer of a security interest in, or other Lien, created
by any Existing Company Entity, with respect to any of its properties or assets,
except Liens for taxes not yet due or payable and Liens that arise in the
ordinary course of business and do not materially impair such Existing Company
Entity’s ownership or use of such property or assets; 

               (xii)
any loans or guarantees made by any Existing Company Entity to or for the
benefit of its employees, officers or directors, or any members of their
immediate families, other than travel advances and other advances made in the
ordinary course of its business; 

               (xiii)
any sale, assignment or transfer of any intellectual property owned by any
Existing Group Entity outside the ordinary course of business; 

               (xiv)
receipt of notice that there has been a loss of, or material order cancellation
by, any major customer of any Existing Group Entity; or 

               (xv)
any arrangement or commitment by any Existing Group Entity to do any of the
things described in this Section 3.1(i) . 

13 

          (j)
Litigation. There is no Action which (i) adversely affects or challenges
the legality, validity or enforceability of any of the Transaction Documents or
the Securities or (ii) except as disclosed in the SEC Reports and the Disclosure
Schedules, could, if there were an unfavorable decision, individually or in the
aggregate, have or reasonably be expected to result in a Material Adverse
Effect. Neither the Existing Company Entities, nor any director or officer
thereof (in his or her capacity as such), is or has been the subject of any
Action involving a claim of violation of or liability under federal or state
securities laws or a claim of breach of fiduciary duty, except as disclosed in
the SEC Reports and the Disclosure Schedules. There has not been and to the
Knowledge of the Company, there is not pending any investigation by the
Commission involving any Existing Company Entity or any current or former
director or officer of an Existing Company Entity (in his or her capacity as
such). 

          (k)
Labor Relations. No material labor dispute exists or, to the Knowledge of
the Existing Company Entities, is imminent with respect to any of the employees
of the Existing Company Entities. 

          (l)
Compliance. Except as disclosed in Section 3.1(l) of the Disclosure
Schedules, none of the Existing Company Entities (i) is in default under or in
violation of (and no event has occurred that has not been waived that, with
notice or lapse of time or both, would result in a default by an Existing
Company Entity under), nor has any Existing Company Entity received notice of a
claim that it is in default under or that it is in violation of, any indenture,
loan or credit agreement or any other agreement or instrument to which it is a
party or by which it or any of its properties is bound (whether or not such
default or violation has been waived), (ii) is in violation of any order of any
court, arbitrator or governmental body, or (iii) is or has been in violation of
any statute, rule or regulation of any governmental authority, including all
federal, state and local laws relating to taxes, environmental protection,
occupational health and safety, product quality and safety and employment and
labor matters, except in each case, such as could not, individually or in the
aggregate, have or reasonably be expected to result in a Material Adverse
Effect. 

          (m)
Regulatory Permits. Except as disclosed in Section 3.1(m) of the
Disclosure Schedules, the Existing Company Entities possess all certificates,
authorizations and permits issued by the appropriate federal, state, local or
foreign regulatory authorities necessary to conduct their respective businesses,
except where the failure to possess such permits could not, individually or in
the aggregate, have or reasonably be expected to result in a Material Adverse
Effect, and the Existing Company Entities have not received any notice of
proceedings relating to the revocation or modification of any such permits. 

          (n)
Title to Assets. Except as disclosed in Section 3.1(n) of the Disclosure
Schedules, the Existing Company Entities own or have valid land use rights to
all real property that is material to their respective businesses and good and
marketable title in all personal property owned by them that is material to
their respective businesses, in each case free and clear of all Liens, except
for Liens as do not materially affect the value of such property and do not
materially interfere with the use made and proposed to be made of such property
by the Existing Company Entities. Except as disclosed in Section 3.1(n) of the
Disclosure Schedules, the Existing Company Entities have paid all land grant
premiums in full (and there are no such amounts outstanding), obtained all
granted land use rights as listed on Section 3.1(n) of the Disclosure Schedules and complied with all land grant
conditions and land use conditions in relation to its properties, and all such
land use rights are valid, binding and enforceable in accordance with their
respective terms. Any real property and facilities held under lease by the
Existing Company Entities are held by them under valid, subsisting and
enforceable leases. 

14 

          (o)
Patents and Trademarks. The Existing Company Entities have, or have
rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, copyrights, licenses and other similar
rights (collectively, the “Intellectual Property Rights”) that are
necessary or material for use in connection with their respective businesses and
which the failure to so have could, individually or in the aggregate, have or
reasonably be expected to result in a Material Adverse Effect. No Existing
Company Entity has received a written notice that the Intellectual Property
Rights used by such Existing Company Entity violates or infringes upon the
rights of any Person. Except as set forth in SEC Reports and the Disclosure
Schedules, to the Knowledge of the Existing Company Entities, all such
Intellectual Property Rights are enforceable and there is no existing
infringement by another Person of any of the Intellectual Property Rights. 

          (p)
Insurance. Section 3.1(p) of the Disclosure Schedules contains a true and
complete list (including the names and addresses of the insurers, the expiration
date thereof, the annual premiums and payment terms thereof and a brief
description of the interests insured thereby) of property and other insurance
policies currently in effect that insure the business, operations or employees
of each Existing Company Entity or affect or relate to the ownership, use or
operation of any of the material assets or properties of any Existing Company
Entity and that (i) have been issued to any Existing Company Entity or (ii) have
been issued to any Person (other than a Existing Company Entity) for the benefit
of any Existing Company Entity. The insurance coverage provided by the policies
described in clause (i) above will not terminate or lapse by reason of the
transactions contemplated by the Transaction Documents to be delivered or
executed on or prior to the Closing. Each policy listed in Section 3.1(p) of the
Disclosure Schedules is valid and binding and in full force and effect, no
premiums due thereunder have not been paid and none of the respective Company
Entities to whom any such policy has been issued has received any notice of
cancellation or termination in respect of any such policy or is in default
thereunder. The insurance policies listed in Section 3.1(p) of the Disclosure
Schedules were placed with financially sound and reputable insurers at the
relevant time when the insurance policies were placed and, in light of the
respective assets and properties of the Existing Company Entities, are in
amounts and have coverages that are reasonable and customary for the assets and
properties of similar businesses and operations in the PRC. None of the Existing
Company Entities has received any notice that any insurer under any policy
referred to in this Section 3.1(p) is denying liability with respect to a claim
thereunder or defending under a reservation of rights clause. The insurance
policies listed in Section 3.1(p) of the Disclosure Schedules are sufficient in
term of coverage amount and to the extent required by all applicable Legal
Requirements, and to the extent it is normal to do so by companies engaged in
business of a nature and scale similar to the Existing Company Entities for the
assets and properties. 

          (q)
Certain Registration Matters. Assuming the accuracy of the Investors’
representations and warranties set forth in Section 3.2, no registration under
the Securities Act is required for the offer and sale of the Securities by the
Company to the Investors under the Transaction Documents. The Company is eligible to register its
Common Stock underlying the Securities for resale by the Investors under the
Securities Act. 

15 

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

          (s)
Transactions with Affiliates and Employees. Except as described in the
SEC Reports and the Disclosure Schedules, none of the officers or directors of
the Company, and none of the employees of the Company, is presently a party to
any transaction of a value of $50,000 or greater with the Company or any of its
Subsidiaries which would be required to be reported under Item 404 Regulation
S-K (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of
services to or by, providing for rental of real or personal property to or from,
or otherwise requiring payments to or from any such Person or any entity in
which any officer, director, or such employee or 5% or more shareholder has a
substantial interest or is an officer, director, trustee or partner. None of the
Existing Company Entities owes any money or other compensation to any of their
respective officers or directors or shareholders, except to the extent of
ordinary course compensation arrangements and reimbursement for expenses
incurred on behalf of the Company. 

          (t)
Tax Returns and Payments. 

               (i)
Except as disclosed in Section 3.1(t)(i) of the Disclosure Schedules, each of
the Existing Company Entities, has timely filed all Tax Returns required
pursuant to applicable Legal Requirement to be filed with any Tax Authority, all
such Tax Returns are accurate, complete and correct in all material respects,
and each Existing Company Entity, has timely paid all Taxes due and owing. Since
their respective date of incorporation, none of the Existing Company Entities
has incurred any Taxes or assessments other than in the ordinary course of
business. Each Existing Company Entity (1) has timely, properly and accurately
withheld and collected, from payments made to any employee, independent
contractor, creditor, shareholder or any other applicable person, the amount of
Taxes (including, but not limited to, United States, the British Virgin Islands,
the PRC and Hong Kong income Taxes and other local or foreign Taxes) required to
be withheld or collected therefrom that, individually or in the aggregate, would
have a Material Adverse Effect, and (2) has timely paid the same to the proper
Tax Authority. 

               (ii)
Section 3.1(t) of the Disclosure Schedules lists each jurisdiction in which any
Existing Company Entity benefits from Incentives and describes the details of
such Incentives. No non-compliance with the terms and conditions of any of such
Incentives exists which would result in any Existing Company Entity losing any of
the benefits of any of such Incentives or such Incentives not being available to
any of the Existing Company Entities in the future, and no Existing Company
Entity has received any written notice from any Governmental Authority claiming
that such Incentives were not, or will not in the future, be available. To the
Company’s Knowledge, the consummation of the transactions contemplated by this
Agreement will not have any adverse effect on the continued validity and
effectiveness of any such Incentives, nor will it cause any such Incentive to
lapse or result in a requirement to repay any Incentives already received. For
purposes of this Agreement, the term “Incentives” means exemptions from
taxation, Tax holidays, reduction in Tax rate or similar Tax reliefs and other
financial grants, subsidies or similar incentives granted by a Governmental
Authority, solely relating to Taxes. 

16 

               (iii)
There are no federal, state, local or foreign audits, actions, suits,
proceedings, investigations or claims relating to Taxes or any Tax Returns of
the Existing Company Entities (or in which the Existing Company Entities are
included) now pending, and none of the Existing Company Entities has received
any written notice, or has Knowledge of any threatened or proposed Tax audit,
examination, refund litigation, investigation, claim, administrative proceeding
or adjustment in controversy relating to Taxes with respect to any of the
Existing Company Entities. There is no agreement in effect to extend the period
of limitations for the assessment or collection of any Tax for which each
Existing Company Entity may be liable. 

               (iv)
The Company has made available to the Lead Investor true and correct copies of
all material income Tax Returns filed by the Existing Company Entities for the
fiscal years starting from 2007. Each of the Existing Company Entities has made
available to the Lead Investor copies of all examination or audit reports, and
statements of deficiencies assessed against or agreed to by any of the Existing
Company Entities received since 2007, and each of Existing Company Entities will
make available to the Lead Investor all materials with respect to the foregoing
for all matters arising after the date hereof through the Closing Date. 

               (v)
No claim, which remains unresolved, has ever been made by any authority in any
jurisdiction where none of the Existing Company Entities files Tax Returns that
an Existing Company Entity is required to file Tax Returns or that it is or may
be subject to taxation by that jurisdiction. 

               (vi)
None of the Existing Company Entities has any liability (including potential
liability) for any Tax or any portion of a Tax (or any amount calculated with
reference to any portion of a Tax) of any Person other than each of the Existing
Company Entities as transferee or successor, by contract, intercompany account
system or otherwise. 

               (vii)
None of the Existing Company Entities has any liability for the Taxes of any
Person under U.S. Treasury Regulation Section 1.1502 -6 (or any similar
provision of state, local or foreign Legal Requirements). 

          (u)
Customers and Suppliers 

17 

               (i)
Section 3.1(u)(i) of the Disclosure Schedules sets forth a true, correct and
complete list of the Company’s twenty (20) most significant customers (excluding
export agents and as measured by annual revenue) during the twelve (12) month
period ended on December 31, 2009 and the six (6) month period ended on June 30,
2010. No material customer of any of the Existing Company Entities has indicated
their intention to diminish their relationship with such Existing Company Entity
and none of the Existing Company Entities has any Knowledge from which it could
reasonably conclude that any such customer relationship may be adversely
affected. 

               (ii)
Section 3.1(u)(ii) of the Disclosure Schedules sets forth a true, correct and
complete list of the Company’s twenty (20) most significant suppliers (as
measured by annual spending) during the twelve (12) month period ended on
December 31, 2009 and the six (6) month period ended on June 30, 2010. No
material supplier of any of the Existing Company Entities has indicated their
intention to diminish their relationship with such Existing Company Entity and
none of the Existing Company Entities has any Knowledge from which it could
reasonably conclude that any such supplier relationship may be adversely
affected. 

          (v)
Material Contracts. 

               (i)
Section 3.1(v) of the Disclosure Schedules lists all contracts to which any
Existing Company Entity is a party or by which any of their respective
properties or assets may be bound or affected that (1) cannot be terminated on
less than thirty (30) days notice and involves payment of US$500,000 (or the
equivalent thereof in another currency), (2) involves payments (or a series of
payments), contingent or otherwise, of US$1,000,000 (or the equivalent thereof
in another currency) or more with respect to a series of related agreements, in
cash, property or services, (3) is with a Governmental Body, (4) limits or
restricts any Existing Company Entity’s ability to compete or otherwise conduct
its business as now conducted and as presently proposed to be conducted in any
manner, time or place, or that contains any exclusivity provision, (5) grants a
power of attorney, agency or similar authority, in each case, in written form
other than out of the ordinary course of business, (6) relates to indebtedness
of US$3,800,000 or more for money borrowed, provides for an extension of credit,
provides for indemnification or any guaranty, or provides for a “keep well” or
other agreement to maintain any financial condition of another Person, (7)
relates to Intellectual Property Rights (other than “shrink-wrap” or
“off-the-shelf” commercially available software), (8) is an insurance policy
other than out of the ordinary course of business, (9) grants the right to
manufacture, produce, assemble, market or sells its products to any other Person
other than out of the ordinary course of business or affect the exclusive right
of the Existing Company Entity to develop, manufacture, assemble, distribute,
market or sell its products, (10) is otherwise outside the ordinary course of
business, (11) is otherwise material to any Existing Company Entity or is an
agreement on which any Existing Company Entity is substantially dependent, or
(12) is a commitment to enter into any of the agreements identified in (1)
through (11) above (each of the foregoing, a “Material Contract”). 

               (ii)
A true, fully-executed copy of each Material Contract has been made available
for review to the Lead Investor. Each Material Contract is a valid and binding
agreement of the Existing Company Entity that is a party thereto, the
performance of which does not and will not violate any applicable Legal
Requirement, and is in full force and effect, and such Existing Company Entity has duly performed in all material
respects all of its obligations under each Material Contract to the extent that
such obligations to perform have accrued or not waived by the contracting party
of such Material Contract, and no breach or default, alleged breach or alleged
default, or event which would (with the passage of time, notice or both)
constitute a material breach or default thereunder by such Existing Company
Entity or to the Knowledge of the Company, any other party or obligor with
respect thereto, has occurred, or to the Knowledge of the Company as a result of
this Agreement or performance hereof will occur. No Existing Company Entity has
given notice (whether or not written) that it intends to terminate a Material
Contract. No Existing Company Entity has received any notice (whether or not
written) that (1) it has breached, violated or defaulted under any Material
Contract or (2) any other party thereto intends to terminate such Material
Contract. 

18 

          (w)
No Additional Agreements. None of the Existing Company Entities has any
agreement or understanding with any Investor with respect to the transactions
contemplated by the Transaction Documents other than as specified in the
Transaction Documents. 

          (x)
Undisclosed Liabilities. No Existing Company Entity has any liabilities
or obligations of any nature (absolute, accrued, contingent or otherwise) which
are not properly reflected or reserved against in the financial statements
described in Section 3.1(h) hereof to the extent required to be so reflected or
reserved against in accordance with IFRS as of the Balance Sheet Date. 

          (y)
Environmental, Health and Safety Laws. 

               (i)
The Existing Company Entities are in compliance in all material respects with
Environmental Laws. 

               (ii)
None of the Existing Company Entities has Released, generated or disposed of any
Hazardous Substance in a manner which would reasonably be expected to give rise
to a material liability under or relating to any Environmental Laws. To the
Knowledge of the Company after due inquiry, no Release of any Hazardous
Substances has occurred on or from the properties or other assets owned by any
Existing Company Entity or otherwise leased or used by any Existing Company
Entity which would reasonably be expected to give rise to a material liability
under or relating to any Environmental Laws. 

               (iii)
There is no claim, notice of violation or administrative proceeding under or
relating to Environmental Laws pending or, to the Knowledge of the Company after
due inquiry, threatened against any Existing Company Entity or, to the Knowledge
of the Company after due inquiry, pending or threatened against any other Person
whose liability for any environmental claim any Existing Company Entity has
retained or assumed either contractually or by operation of law (including any
capital or operating expenditures required for clean-up, closure of properties
or compliance with such Environmental Laws or to acquire or comply with the
terms and conditions of any permit, certificate, authorization, registration, or
approval under any such Laws, any constraints on operating activities and any
potential liabilities to third parties). To the Knowledge of the Company after
due inquiry, no facts or circumstances exist which would give rise to such
claim, notice of violation or administrative proceeding. Except as would not
reasonably be expected to give rise to a material liability under or relating to
any Environmental Laws, to the Knowledge of the Company after due
inquiry (i) no real property currently or formerly owned, occupied, operated or
leased by any Existing Company Entity has been impacted by any Release or
threatened Release of any Hazardous Substance, and (ii) no such real property or
other assets or equipment currently or formerly owned, occupied, operated, used
or leased by any Existing Company Entity have involved the use or storage of
radioactive substances, asbestos or any polychlorinated biphenyl. 

19 

          (z)
Foreign Corrupt Practices Act. None of the Existing Company Entities nor
to the Knowledge of the Company, any agent or other person acting on behalf of
the Existing Company Entities, has, directly or indirectly, (i) used any funds,
or will use any proceeds from the sale of the Securities, for unlawful
contributions, gifts, entertainment or other unlawful expenses related to
foreign or domestic political activity, (ii) made any unlawful payment to
foreign or domestic government officials or employees or to any foreign or
domestic political parties or campaigns from corporate funds, (iii) failed to
disclose fully any contribution made by the Company, or any such Existing
Company Entity (or made by any Person acting on their behalf of which the
Company is aware) or, to the Knowledge of the Existing Company Entities, any
members of their respective management which is in violation of any Legal
Requirement, or (iv) has violated in any material respect any provision of the
Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations
thereunder which was applicable to the Existing Company Entities. 

          (aa)
Investment Company Status. The Company is not, and immediately after
receipt of payment for the Securities issued under this Agreement will not be,
an “investment company” or an entity “controlled” by an “investment company”
within the meaning of the Investment Company Act, and shall conduct its business
in a manner so that it will not become subject to the Investment Company Act.

          (bb)
OFAC. No Existing Company Entity, or, to the Knowledge of the Company,
any other Existing Company Entity Affiliate is currently subject to any
regulation or statute administered by OFAC (“U.S. Economic Sanctions”).
The Existing Company Entities derive no revenues from the governments, entities
or nationals of Cuba, Sudan, Iran, Myanmar or any other country with respect to
which U.S. persons, as defined in U.S. Economic Sanctions, are prohibited from
doing business and the Existing Company Entities have no assets located in any
such countries. The Existing Company Entities will not take any action with
respect to the use of the proceeds from the sale of the Securities that would
result in a violation by any Investor of any U.S. Economic Sanctions, including,
without limitation, using the proceeds of the sale of the Securities to fund,
any business activities with, or for the benefit of, a government, national,
resident or legal entity of Cuba, Sudan, Iran, Myanmar, or any other country
with respect to which U.S. persons, as defined in U.S. Economic Sanctions, are
prohibited from doing business. 

          (cc)
Sarbanes-Oxley; Internal Accounting Controls. The Company is in material
compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are
applicable to it as of the Closing Date. The Company and the Subsidiaries
maintain a system of internal accounting controls sufficient to provide
reasonable assurance that (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with
IFRS and to maintain asset accountability, (iii) access to assets is permitted
only in accordance with management’s general or specific authorization, and (iv) the
recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences. The Company has established disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and
designed such disclosure controls and procedures to ensure that material
information relating to the Company, including its Subsidiaries, is made known
to the certifying officers by others within those entities, particularly during
the period in which the Company’s most recently filed periodic report under the
Exchange Act, as the case may be, is being prepared. The Company’s certifying
officers have evaluated the effectiveness of the Company’s controls and
procedures as of the date prior to the filing date of the most recently filed
periodic report under the Exchange Act (such date, the “Evaluation
Date”). The Company presented in its most recently filed periodic report
under the Exchange Act the conclusions of the certifying officers about the
effectiveness of the disclosure controls and procedures based on their
evaluations as of the Evaluation Date. Since the Evaluation Date, there have
been no significant changes in the Company’s internal controls (as such term is
defined in Item 307(b) of Regulation S-K under the Exchange Act) or, to the best
Knowledge of the Company, in other factors that could significantly affect the
Company’s internal controls. 

20 

          (dd)
Other Representations and Warranties Relating to WFOE. 

               (i)
All material consents, approvals, authorizations or licenses requisite under PRC
Legal Requirements for the due and proper establishment and operation of WFOE
have been duly obtained from the relevant PRC Governmental Bodies and are in
full force and effect. 

               (ii)
All filings and registrations with the PRC Governmental Bodies required in
respect of WFOE and its capital structure and operations including, without
limitation, the registration with the Ministry of Commerce, the State
Administration of Industry and Commerce and or their respective local divisions
of Commerce, the State Administration of Foreign Exchange, tax bureau and
customs authorities have been duly completed in accordance with the relevant PRC
Legal Requirements, except where, the failure to complete such filings and
registrations does not, and would not, individually or in the aggregate, have a
Material Adverse Effect. 

               (iii)
Except as disclose in Section 3.1(dd)(iii) of the Disclosure Schedules, WFOE has
complied with all relevant PRC Legal Requirements regarding the contribution and
payment of its registered share capital, the payment schedule of which has been
approved by the relevant PRC Governmental Bodies. There are no outstanding
commitments made by the Company or any Subsidiary (or any of their shareholders)
to sell any equity interest in WFOE. 

               (iv)
WFOE has not received any letter or notice from any relevant PRC Governmental
Body notifying it of revocation of any licenses or qualifications issued to it
or any subsidy granted to it by any PRC Governmental Body for non-compliance
with the terms thereof or with applicable PRC Legal Requirements, or the lack of
compliance or remedial actions in respect of the activities carried out by WFOE.

21 

               (v)
WFOE has conducted its business activities within the permitted scope of
business or has otherwise operated its business in compliance with all relevant
Legal Requirements and with all requisite licenses and approvals granted by
competent PRC Governmental Bodies in all material respects. As to licenses,
approvals and government grants and concessions requisite or material for the
conduct of any material part of WFOE’s business which is subject to periodic
renewal, the Company has no Knowledge of any reasons related to the WFOE for
which such requisite renewals will not be granted by the relevant PRC
Governmental Bodies. 

               (vi)
With regard to employment and staff or labor, WFOE has complied with all
applicable PRC Legal Requirements in all material respects, including without
limitation, those pertaining to welfare funds, social benefits, medical
benefits, insurance, retirement benefits, pensions or the like. 

          (ee)
Other Representations and Warranties Relating to SFJV. 

               (i)
All material consents, approvals, authorizations or licenses requisite under PRC
Legal Requirements for the due and proper establishment and operation of SFJV
have been duly obtained from the relevant PRC Governmental Bodies and are in
full force and effect. 

               (ii)
All filings and registrations with the PRC Governmental Bodies required in
respect of SFJV and its capital structure and operations including, without
limitation, the registration with the National Development and Reform
Commission, Ministry of Commerce, the State Administration of Industry and or
their respective local divisions of Commerce, the State Administration of
Foreign Exchange, tax bureau and customs authorities have been duly completed in
accordance with the relevant PRC Legal Requirements, except where, the failure
to complete such filings and registrations does not, and would not, individually
or in the aggregate, have a Material Adverse Effect. 

               (iii)
SFJV has complied with all relevant PRC Legal Requirements regarding the
contribution and payment of its registered share capital, the payment schedule
of which has been approved by the relevant PRC Governmental Bodies. Except for
those transactions as a necessity to comply with PRC’s foreign investment
restrictions subject to and contingent on the Closing, there are no outstanding
commitments made by the Company or any Subsidiary (or any of their shareholders)
to sell any equity interest in SFJV. 

               (iv)
SFJV has not received any letter or notice from any relevant PRC Governmental
Body notifying it of revocation of any licenses or qualifications issued to it
or any subsidy granted to it by any PRC Governmental Body for non-compliance
with the terms thereof or with applicable PRC Legal Requirements, or the lack of
compliance or remedial actions in respect of the activities carried out by SFJV.

               (v)
Except as disclosed in Section 3.1(ee)(v) of the Disclosure Schedules, SFJV has
conducted its business activities within the permitted scope of business or has
otherwise operated its business in compliance with all relevant Legal
Requirements and with all requisite licenses and approvals granted by competent
PRC Governmental Bodies in all material respects. As to licenses, approvals and government
grants and concessions requisite or material for the conduct of any material
part of SFJV’s business which is subject to periodic renewal, the Company has no
Knowledge of any reasons related to the SFJV for which such requisite renewals
will not be granted by the relevant PRC Governmental Bodies. 

22 

               (vi)
Except as set forth on Section 3.1(ee)(vi) of the Disclosure Schedules, with
regard to employment and staff or labor, SFJV has complied with all applicable
PRC Legal Requirements in all material respects, including without limitation,
those pertaining to welfare funds, social benefits, medical benefits, insurance,
retirement benefits, pensions or the like. 

          (ff)
Acknowledgement Regarding Investors’ Trading Activity. Except as set
forth in Section 3.2(f), anything in this Agreement or elsewhere herein to the
contrary notwithstanding, but subject to compliance by the Investors with
applicable law, it is understood and agreed by the Company (i) that past or
future open market or other transactions by any Investor, including Short Sales,
and specifically including, without limitation, Short Sales or “derivative”
transactions, before or after the closing of this or future private placement
transactions, may negatively impact the market price of the Company’s
publicly-traded securities; (ii) that any Investor, and counter parties in
“derivative” transactions to which any such Investor is a party, directly or
indirectly, presently may have a “short” position in the Common Stock, and (iv)
that each Investor shall not be deemed to have any affiliation with or control
over any arm’s length counter-party in any “derivative” transaction. The Company
further understands and acknowledges that (a) one or more Investors may engage
in hedging activities at various times during the period that the Securities are
outstanding, including, without limitation, during the periods that the value of
the shares deliverable with respect to Securities are being determined and (b)
such hedging activities (if any) could reduce the value of the existing
shareholders’ equity interests in the Company at and after the time that the
hedging activities are being conducted. 

          (gg)
Manipulation of Price. The Company has not, and to its Knowledge no one
acting on its behalf has, (i) taken, directly or indirectly, any action designed
to cause or to result in the stabilization or manipulation of the price of any
security of the Company to facilitate the sale or resale of any of the
Securities, (ii) sold, bid for, purchased, or, paid any compensation for
soliciting purchases of, any of the Securities (other than for the Placement
Agent’s placement of the Securities), or (iii) paid or agreed to pay to any
person any compensation for soliciting another to purchase any other securities
of the Company, other than commissions payable to the Placement Agent. 

          (hh)
Disclosure. Other than the Transactions contemplated by the Transaction
Documents, the Company confirms that neither it nor, to its Knowledge, any other
Person acting on its behalf has provided any of the Investors or their agents or
counsel with any information that constitutes or might constitute material,
nonpublic information. The Company understands and confirms that the Investors
will rely on the foregoing representations and covenants in effecting
transactions in securities of the Company. All disclosure provided to the
Investors in connection with the transactions contemplated hereunder regarding
the Company, its business and the transactions contemplated hereby, including
the Disclosure Schedules to this Agreement, furnished by or on behalf of the
Company with respect to the representations and warranties made herein are true and correct in all material respects with
respect to such representations and warranties and do not contain any untrue
statement of a material fact or omit to state any material fact necessary in
order to make the statements made therein, in light of the circumstances under
which they were made, not misleading. 

23 

               (ii)
Other Representations and Warranties Relating to Major Shareholder.
Except as set forth in Section 3.1(ii) of the Disclosure Schedule, none of
Jiangmen Jinhao Motorcycle Co., Ltd. ( ) or Shenzhen Jinhao Dawang Export &
Import Co., Ltd. ( ) competes, or has ever competed, with the business of
manufacture of motorcycle, motor and components, electric vehicle, electric
vehicle components (including without limitation frequency-variable controller),
battery, agricultural machine, diesel engine, generator, stern engine and
agricultural tractor. 

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

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

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

          (c)
Investor Status. At the time such Investor was offered the Securities, it
was an “accredited investor” as defined in Rule 501(a) under the Securities Act
or is not a “U.S. person” within the meaning of Regulation S. Such Investor is
not a registered broker dealer under Section 15 of the Exchange Act. 

24 

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

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

          (f)
Certain Trading Activities. Such Investor has not directly or indirectly, nor
has any Person acting on behalf of or pursuant to any understanding with such
Investor, engaged in any transactions in the securities of the Company
(including any Short Sales involving the Company’s securities) since the time
that such Investor was first contacted by the Company, the Placement Agent, or
any other Person acting on behalf of the Company regarding the investment in the
Company contemplated by this Agreement. Such Investor covenants that, other than
the transactions contemplated under the Transaction Documents, neither it nor
any Person acting on its behalf or pursuant to any understanding with it will
engage in any transactions in the securities of the Company (including Short
Sales) prior to the time that the transactions contemplated by this Agreement
are publicly disclosed. 

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

          (h)
Rule 144. Such Investor understands that the Securities cannot be sold unless
such Securities are registered under the Securities Act, an exemption from
registration is available or such sale is not subject to the Securities Act.
Such Investor acknowledges that it is familiar with Rule 144 and that such
Investor has been advised that Rule 144 permits resales only under certain
circumstances. 

25 

          (i)
General. Such Investor understands that the Securities are being offered
and sold in reliance on a transactional exemption from the registration
requirements of federal and state securities laws and the Company is relying
upon the truth and accuracy of the representations, warranties, agreements,
acknowledgments and understandings of such Investor set forth herein in order to
determine the applicability of such exemptions and the suitability of such
Investor to acquire the Securities. Such Investor understands that no United
States federal or state agency or any Governmental Body has passed upon or made
any recommendation or endorsement of the Securities. 

          (j)
Regulation S. If such Investor is not a U.S. Person (as such term is
defined in Section 902(a) of Regulation S), such Investor (i) acknowledges that
the certificate(s) representing or evidencing the Securities contain a customary
restrictive legend restricting the offer, sale or transfer of any Securities
except in accordance with the provisions of Regulation S, pursuant to
registration under the Securities Act, or pursuant to an available exemption
from registration, (ii) agrees that all offers and sales by such Investor of the
Securities shall be made pursuant to an effective registration statement under
the Securities Act or pursuant to an exemption from, or a transaction not
subject to the registration requirements of, the Securities Act, (iii)
represents that the offer to purchase the Securities was made to such Investor
outside of the United States, and such Investor was, at the time of the offer
and will be, at the time of the sale and is now, outside the United States, (iv)
has not engaged in or directed any unsolicited offers to purchase Securities in
the United States, (v) is neither a U.S. Person nor a Distributor (as such terms
are defined in Section 902(a) and 902(c), respectively, of Regulation S), (vi)
has purchased the Securities for its own account and not for the account or
benefit of any U.S. Person, (vii) has not pre-arranged any sale with an investor
in the United States, and (ix) is familiar with and understands the terms and
conditions and requirements contained in Regulation S, specifically, without
limitation, each Investor understands that the statutory basis for the exemption
claimed for the sale of the Securities would not be present if the sale,
although in technical compliance with Regulation S, is part of a plan or scheme
to evade the registration provisions of the Securities Act. 

ARTICLE 4 
OTHER AGREEMENTS OF THE PARTIES 

     4.1 Compliance with Securities
Laws. 

          (a)
Securities may only be disposed of in compliance with state and federal
securities laws. In connection with any transfer of the Securities, other than
pursuant to an effective registration statement, pursuant to Rule 144, or to the
Company, to an Affiliate of an Investor or in connection with a pledge as
contemplated in Section 4.1(b), the Company may require the transferor thereof
to provide to the Company an opinion of counsel selected by the transferor, the
substance of which opinion shall be reasonably acceptable to the Company, to the
effect that such transfer does not require registration of such transferred
Securities under the Securities Act. Notwithstanding the foregoing, the Company
hereby consents to and agrees to register on the books of the Company and with
its transfer agent, without any such legal opinion, any transfer of Securities
by an Investor to an Affiliate of such Investor, provided that the transferee
certifies to the Company that it is an “accredited investor” as defined in Rule
501(a) under Regulation D or is not a “U.S. person” within the meaning of
Regulation S. 

26 

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

NEITHER THESE SECURITIES NOR THE SHARES OF COMMON STOCK
ISSUABLE PURSUANT HERETO HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, NEITHER THESE SECURITIES NOR ANY SUCH
SHARES OF COMMON STOCK MAY BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT SECURED BY SUCH SECURITIES. 

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

          (c)
Certificates evidencing Securities shall not contain any legend (including the
legend set forth in Section 4.1(b)): 

               (i)
following a sale or transfer of such Securities pursuant to an effective
registration statement, or 

               (ii)
following a sale or transfer of such Securities pursuant to Rule 144 (assuming
the transferee is not an Affiliate of the Company), or 

27 

               (iii)
when the restriction described in such legend otherwise cease to be applicable
to such Securities. 

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

     4.3 Securities Laws
Disclosure; Publicity. By (i) 9:30 a.m. (New York time) on the Trading Day
following the Closing Date, the Company shall issue a press release, in a form
acceptable to the Lead Investor, disclosing the transactions contemplated by the
Transaction Documents and the Closing and by (ii) 5:30 p.m. (New York time) on
the Trading Day following the Closing Date, the Company will file a Current
Report on Form 8-K, disclosing the material terms of the Transaction Documents
(and attach as exhibits thereto any Transaction Documents required to be filed
under the Securities Act and the Exchange Act). The Company covenants that
following such disclosure, the Investors shall no longer be in possession of any
material, non-public information with respect to any of the Existing Company
Entities. In addition, the Company will make such other filings and notices in
the manner and time required by the Commission and the Trading Market on which
the Common Stock is listed. Notwithstanding the foregoing, the Company shall not
publicly disclose the name of any Investor, or include the name of any Investor
in any filing with the Commission (other than the registration statement and any
exhibits to filings made in respect of this transaction in accordance with
periodic filing requirements under the Exchange Act) or any regulatory agency or
Trading Market, without the prior written consent of such Investor, except to
the extent such disclosure is required by law or Trading Market regulations.

     4.4 Use of Proceeds. The
Company will use the net proceeds from the sale of the Securities hereunder for
expansion of its electric vehicles (“EV”) manufacturing capacity,
marketing of new EV products and for working capital purposes, acquisitions
and/or capital expenditures. 

     4.5 Indemnification of
Investors. 

          (a)
The Company Entities and the Major Shareholder (each, an “Indemnifying
Party” and together, the “Indemnifying Parties”) will jointly and
severally indemnify, defend and hold harmless each of the Investors
and its Affiliates and their respective directors, officers, shareholders,
subsidiaries, members, controlling persons, partners, employees and agents
(each, an “Indemnified Party” and together, the “Indemnified
Parties”) to the fullest extent permitted by Legal Requirement from any and
all losses, liabilities, obligations, claims, contingencies, damages, costs and
expenses (including reasonable fees, disbursements and other charges of counsel
incurred by any Indemnified Party in any action between the Indemnifying Parties
and such Indemnified Party or between any Indemnified Party and any third party
or otherwise), including all judgments, disbursements, amounts paid in
settlements, court costs and costs of investigation in respect thereof
(collectively, “Losses”) that any such Indemnified Party may suffer or
incur as a result of or relating to any misrepresentation, breach or inaccuracy
of any representation, warranty, covenant or agreement made by any of the
Company Entities in any Transaction Document. The foregoing indemnification
shall be subject to the following: (i) no claims made under this Section 4.5
shall be brought against the Company unless such claims exceed in the aggregate
$50,000, at which point claims may be made for the full amount of any losses or
damages, (ii) the maximum aggregate amount of indemnity under this Section 4.5
shall not exceed the aggregate Investment Amount of the Investor on whose behalf
the claim is being made except with respect to fraud and willful
misrepresentation, in which case the Company Entities and the Major Shareholder
shall be jointly and severally liable for all such Losses. In addition to the
indemnity contained herein, the Company will reimburse each Indemnified Party
for its reasonable legal and other expenses (including the cost of any
investigation, preparation and travel in connection therewith) incurred in
connection therewith, as such expenses are incurred. 

28 

          (b)
Each Indemnified Party under this Section 4.5 shall, promptly after the receipt
of notice of the commencement of any claim against such Indemnified Party in
respect of which indemnity may be sought from the Indemnifying Parties under
this Section 4.5, notify the Indemnifying Parties of the commencement thereof.
The omission of any Indemnified Party to so notify the Indemnifying Parties of
any such action shall not relieve the Indemnifying Parties from any liability
which it may have to such Indemnified Party (i) other than pursuant to this
Section 4.5 or (ii) under this Section 4.5 unless, and only to the extent that,
such omission results in the Indemnifying Parties’ forfeiture of substantive
and/or procedural rights or defenses. In case any such claim shall be brought
against any Indemnified Party, and it shall notify the Indemnifying Parties of
the commencement thereof, the Indemnifying Parties shall be entitled to assume
the defense thereof at its own expense, with counsel satisfactory to such
Indemnified Party in its reasonable judgment; provided, however, that any
Indemnified Party may, at its own expense, retain separate counsel to
participate in such defense. Notwithstanding the foregoing, in any claim in
which both the Indemnifying Parties, on the one hand, and an Indemnified Party,
on the other hand, are, or are reasonably likely to become, a party, such
Indemnified Party shall have the right to employ separate counsel and to control
its own defense of such claim if, in the reasonable opinion of counsel to such
Indemnified Party, either (1) one or more defenses are available to the
Indemnified Party that are not available to the Indemnifying Parties or (2) a
conflict or potential conflict exists between the Indemnifying Parties, on the
one hand, and such Indemnified Party, on the other hand that would make such
separate representation advisable; provided, however, that the Indemnifying
Parties (x) shall not be liable for the fees and expenses of more than one
counsel to all Indemnified Parties and (y) shall reimburse the Indemnified
Parties for all of such reasonable fees and expenses of such counsel incurred in
any action between the Indemnifying Parties and the Indemnified Parties or
between the Indemnified Parties and any third party, as such expenses are
incurred. Each of the Indemnifying Parties agrees that it will not, without the
prior written consent of the relevant Indemnified Party, settle, compromise or
consent to the entry of any judgment in any pending or threatened claim relating
to the matters contemplated hereby (if any Indemnified Party is a party thereto
or has been actually threatened to be made a party thereto) unless such
settlement, compromise or consent includes an unconditional release of each
Indemnified Party from all liability arising or that may arise out of such
claim. The Indemnifying Parties shall not be liable for any settlement of any
claim effected against an Indemnified Party without its written consent, which
consent shall not be unreasonably withheld. Nothing in this Section 4.5 shall
restrict or limit any rights that any Indemnified Party may have to seek
equitable relief. 

29 

     4.6 Conversion Shares. At
the Closing, the Company shall have authorized and reserved and shall continue
to reserve, free of preemptive rights and other similar contractual rights of
stockholders, a number of shares of Common Stock equal to one hundred thirty
percent (130%) of the number of shares of Common Stock as shall from time to
time be sufficient to effect the conversion of all of the Series A Preferred
Stock and exercise of the Warrants then outstanding. 

     4.7 Trading Market Rules and
Regulations. The Company shall, if applicable: (i) in the time and manner
required by the Trading Market, prepare and file with such Trading Market an
additional shares listing application covering a number of shares of Common
Stock at least equal to one hundred percent (100%) of the number of shares of
Common Stock as shall be sufficient to effect the conversion of all of the
Series A Preferred Stock and exercise of the Warrants on the date of such
application, (ii) take all steps necessary to cause such shares of Common Stock
to be approved for listing on the Trading Market as soon as possible thereafter,
(iii) provide to the Investors evidence of such listing, and (iv) maintain the
listing of such Common Stock on any date on such Trading Market or another
Trading Market. Prior to the Closing Date, the Company shall obtain the
Shareholder Approval, and the Company shall, within thirty (30) calendar days
after the Closing Date, file a Preliminary Information Statement on Schedule 14C
with the Commission, and, if such Preliminary Information Statement is not
reviewed by the Commission, ten (10) calendar days thereafter, shall mail a
Definitive Information Statement on Schedule 14C to the non-consenting
shareholders in connection therewith (if such Preliminary Information Statement
is reviewed by the Commission, the Company shall use their best efforts to
respond to any comments the Commission may have to such Preliminary Information
Statement and shall mail a Definitive Information Statement to the
non-consenting shareholders as soon as practicable following the date such
Preliminary Information Statement is cleared by the Commission). 

     4.8 [Intentional Omitted]. 

     4.9 Compliance Covenants
Relating to Interim Operations. The Company and the Major Shareholder
undertake to the Investors that, unless otherwise approved by the Investors, the
Company shall, and the Company and the Major Shareholder shall cause the other
Existing Company Entities to, conduct their respective businesses in the
ordinary course consistent with past practices and in a prudent manner. From the
date hereof and up to Closing, the Existing Company Entities and the Major
Shareholder shall inform the Lead Investor of and discuss with the Lead Investor
on a regular and ongoing basis (i) any material developments or decisions with
respect to the management of the business and assets of the Existing Company
Entities or prospects, including, without limitation, any significant new
agreements or transactions proposed to be entered into or persons proposed to be
employed or terminated in executive management positions, and any other
significant developments relating to the business, assets or prospects of the
Existing Company Entities and (ii) the status of the Existing Company Entities’
and the Major Shareholder’s progress in fulfilling the closing conditions set
forth in Section 4 and consents and/or waivers of third parties, if any. Without
limiting the generality of the foregoing, from the date hereof and up to
Closing, the Company and the Major Shareholder undertake to the Investors that, unless otherwise approved by
the Investors having interest in at least 66 2/3% of the aggregate Investment
Amounts, the Company shall not, and the Company and the Major Shareholder shall
cause the other Existing Company Entities not to: (i) declare, set aside, make
or pay any dividend or other distribution (whether in cash, shares or property
or otherwise) or make any other payment on or in respect of its shares; or (ii)
incur any indebtedness (other than trade payables and other payables out of the
ordinary course of business) of an aggregate amount in excess of US$2 million.
From the date hereof and up to Closing, the Company and the Existing Company
Entities shall, and the Company and the Existing Company Entities shall within
its power cause each other Existing Company Entity to, enter into and conduct
any material transactions with any Interested Party on no worse (from Company’s
perspective) than an arm’s length basis unless approved by the Investors. 

30 

     4.10 Commitment Fee. The
Company agrees to pay the Lead Investor a commitment fee of US$290,000. The
commitment fee shall be included as a portion of the Reimbursable Fees and
Expenses and shall be deducted from the Lead Investor’s Investment Amount
pursuant to Section 2.1(b) . 

     4.11 EV Qualification.

          (a)
Company agrees to cause an appropriate PRC Entity to acquire a car manufacturing
company (the “Car Manufacturer”) through acquisition or otherwise within
six (6) months after the Closing. Such Car Manufacturer must be listed in the
Public Notice on Road Motor Vehicle Production Enterprises and Products (»)
approved by the Ministry of Industry and Information Technology. 

          (b)
Each Existing Company Entity agrees to materially comply with any and all EV
Laws (including, without limitation, export regulations) applicable to such
Existing Company Entity. 

     4.12 VIE Documents. The
Company agrees to cause the revision of the VIE Documents promptly following any
change in the equity interest in SFJV held by Haoyan. 

     4.13 Construction. Within
six (6) months of the Closing Date, the Company shall obtain the following in
connection with the finished products warehouse ( ), dormitory ( ) and office
building ( ) of the PRC Entities: (1) the construction project planning permits
(») from the competent planning authority; and (2) the project construction
permits (») with the Zhaoqing High-and-New Technology Development Zone Planning
and Construction Bureau. Within eighteen (18) months of the Closing Date, the
Company shall obtain the requisite property ownership certificates with respect
to the foregoing properties. 

     4.14 Environment. Within
six (6) months of the Closing Date, the Company shall obtain the specification
approval certificates of National Standard III for pollutants emissions for all
its currently manufactured motorcycles specifications for domestic sale 

31 

     4.15 Off-road All-terrain
Vehicles. Within six (6) months of the Closing Date, the Company shall
obtain Special Purpose Equipment Production Permit ( ) for off-road all-terrain
vehicles sold within territory of the PRC. 

     4.16 Security Pledge.
Within forty-five (45) days of the Closing, the Major Shareholder shall cause
the charge over shares evidenced by the a stock pledge agreement relating to up
to 51% of the outstanding equity in Haoyan to be approved by the Zhaoqing MOFCOM
and the Foreign Trade and Economic Bureau in Zhaoqing High-and-New Technology
Development Zone and to be registered with the local branch of SAIC. 

     4.17 Auditors. Within
thirty (30) days of the Closing, the Company shall appoint a Big Four Accounting
Firm to serve as the Company’s independent registered public accounting firm.
All necessary stockholder ratifications related thereto shall be obtained and
all necessary SEC Reports related thereto shall be properly filed. 

     4.18 D&O Insurance.
Within thirty (30) days of the Closing, the Company shall (i) purchase and
maintain directors’ and officers’ liability insurance policies for the benefit
of the Investor Director for an insured amount to be reasonably determined by
the Lead Investor; and (ii) deliver to the Investor Director (or his alternate),
a copy of the policy documents in relation to such insurance. 

     4.19 Jiangmen Jinhao.
Within sixty (60) days of the Closing, the Company and the Major Shareholder
shall cause the completion of the dissolution of Jiangmen Jinhao Motorcycle Co.,
Ltd. ( ). 

     4.20 Compliance with Companies
Ordinance. As soon as possible, but in any event within ninety (90) days,
following the Closing, the HK Company shall, and the other Warrantors shall
cause the HK Company to, report to the Hong Kong Companies Registry the failure
by the sole director of the HK Company to lay before the HK Company at the HK
Company’s annual general meetings the profit and loss accounts and balance
sheets of the Company and use its best efforts to obtain from the Hong Kong
Companies Registry a decision as to whether enforcement actions will be pursued
by the Hong Kong Companies Registry in connection with such failure. The HK
Company shall, and the other Warrantors shall cause the HK Company to, comply
with applicable provisions of the Hong Kong Companies Ordinance (Chapter 32,
Laws of Hong Kong) in all material respects. 

ARTICLE 5 
CONDITIONS PRECEDENT TO CLOSING 

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

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

32 

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

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

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

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

          (f)
Series A Certificate of Designation. The Company shall have filed with
the Secretary of State of Nevada the Series A Certificate of Designation
substantially in the form of Exhibit B attached hereto; 

          (g)
Opinion of PRC Counsel. The Investors shall have received an opinion of
PRC counsel to the Company in form and substance reasonably satisfactory to the
Investors; 

          (h)
Opinion of Hong Kong Counsel. The Investors shall have received an
opinion of Hong Kong counsel to the Investors in form and substance reasonably
satisfactory to the Investors; 

          (i)
Opinion of Nevada Counsel. The Investors shall have received an opinion
of Nevada counsel to the Company in form and substance reasonably satisfactory
to the Investors; 

          (j)
Opinion of BVI Counsel. The Investors shall have received an opinion of
BVI counsel to the Investors in form and substance reasonably satisfactory to
the Investors; 

          (k)
Opinion of New York Counsel. The Investors shall have received an opinion
of New York counsel to the Company in form and substance reasonably satisfactory
to the Investors; 

          (l)
Completion of Due Diligence. The Lead Investor shall have completed
satisfactory financial, legal and accounting due diligence; 

          (m)
Stockholder Approval. If the Common Stock is listed on a Trading Market
and the issuance of the Shares as contemplated under the Transaction Documents
would exceed that number of shares of Common Stock which the Company may issue
without breaching the Company’s obligations under the rules or regulations of
the Trading Market on which it is listed, then the Company shall have obtained
the approval of its stockholders as required by the applicable rules of the Trading Market for
issuances of the Shares in excess of such amount; 

33 

          (n)
Investment Committee Approval. The Lead Investor shall have obtained the
approvals from its Investment Committee, if any, on the purchase of the
Securities; 

          (o)
Termination. This Agreement shall not have been terminated as to such
Investor in accordance with Section 6.6; 

          (p)
Completion of RTO. The acquisition of the BVI Company by the Company and
the issuance of controlling stake of no less than 95% in the Company to the
Major Shareholder shall have been completed. 

          (q)
Investors’ Rights Agreement. The Company and the Major Shareholder shall
have executed and delivered an Investors’ Rights Agreement, substantially in the
form of Exhibit E. 

          (r)
Director Indemnification Agreement. The Company shall have executed with
and delivered to the Investor Director an Indemnification Agreement, in the form
of Exhibit F. 

          (s)
Intellectual Property. 

               (i)
The Company shall have stopped paying all patent use fees and terminated three
patent contracts with Lin Xiangzhong and Zhu Mingao entered into on October 1,
2008 (the “Patent Contracts”) and shall have entered into a license
agreement with Lin Xiangzhong, pursuant to which the Company shall be licensed
to use the patents referenced in the Patent Contracts free of charge. 

               (ii)
Each key employee, senior management and employee who is or was involved in the
research and development or other technical aspects of any Existing Company
Entity has executed an agreement with such Existing Company Entity regarding
confidentiality, proprietary information, assignment of inventions and
non-competition in the form or forms delivered to the counsel for the Lead
Investor. 

          (t)
Reporting System. The Company shall provide to the Lead Investor, and the
Lead Investor shall approve, an improvement plan on the accounting and reporting
system of the Company. 

          (u)
Security Pledge. Each of the Major Shareholder and the Investors shall
have executed and delivered the Pledge Agreement. 

          (v)
Insurance Coverage. The Company shall obtain the insurance policies to
the extent required by all applicable Legal Requirements, and to the extent it
is normal to do so by companies engaged in business of a nature and scale
similar to the Company. 

34 

          (w)
Shenzhen Jinhao. The Major Shareholder shall have caused the transfer of
Shenzhen Jinhao Dawang Export & Import Co., Ltd. ( ) to an unrelated third
party. 

          (x)
Compliance Certificate. The Chief Executive Officer of the Company shall
deliver to the Investors at Closing a certificate certifying that the conditions
set forth in Sections 5.1(a), 5.1(b), 5.1(d), 5.1(f), 5.1(l), 5.1(p), and 5.1(s)
to 5.1(w) have been fulfilled. 

          (y)
Officer’s Certificate. The Chief Executive Officer of the Company shall
deliver to the Investors at the Closing a certificate attaching (i) a certified
copy of the Certificate of Designation as then in effect, (ii) copies of all
resolutions approved by the shareholders and board of directors of the Company
related to the transactions contemplated hereby, (iii) certificate of incumbency
of the Company, and (iv) such other documents or certificates as the Investors
may reasonably request. 

          (z)
Escrow Agreement and Payment Instruction. The Company, the Placement
Agent and the Escrow Agent shall have executed and delivered the Escrow
Agreement. The Company and the Placement Agent shall have executed and delivered
to the Escrow Agent an irrevocable payment instruction pursuant to the Escrow
Agreement and such irrevocable payment instruction is in form and substance
reasonably satisfactory to the Investors. 

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

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

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

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

          (d)
Investors Deliverables. Each Investor shall have delivered its Investors
Deliverables in accordance with Section 2.2(b); and 

          (e)
Termination. This Agreement shall not have been terminated as to such
Investor in accordance with Section 6.6. 

35 

ARTICLE 6 
MISCELLANEOUS 

     6.1 Fees and Expenses.

          (a)
Upon the occurrence of the Closing, the Company shall be responsible for all
fees, expenses and/or consideration due to: (i) the Investors as provided in the
Transaction Documents, (ii) the Placement Agent as provided in the Syndication
Engagement Letter for Guangdong JinHao Motorcycle Company, Ltd. dated November
16, 2009 by and between the Company and the Placement Agent (the “Placement
Agent Agreement”), and (iii) to the respective accountants, attorneys or
other experts of the Company and the Investors, in the amounts specified in a
schedule provided to the Company before the Closing (the “Closing
Disbursements Schedule”), which shall be attached with all the invoices
evidencing such expenses. In the event that there are additional fees, expenses
and/or consideration in connection with the transactions contemplated herein due
to the Investors, Placement Agent, or their respective accountants, attorneys or
other experts, the Company shall pay such amounts within seven (7) days of the
receipt of an invoice from such party pursuant to this Section 6.1(a) . 

          (b)
In the event the Closing shall have not occurred as elected by the Company or
due to the non-fulfillment by the Company of the closing conditions set forth in
Section 5.1, the Company shall be responsible for all fees, expenses and/or
consideration due to: (i) the Investors as provided in the Transaction Documents
(to the extent such fees, expenses and/or consideration are payable regardless
of failure to close due to the events set forth herein), (ii) the Placement
Agent as provided in the Placement Agent Agreement (to the extent such fees,
expenses and/or consideration are payable regardless of failure to close due to
the events set forth herein), and (iii) to the respective accountants, attorneys
or other experts of the Company and the Investors, in the amounts specified in a
schedule (the “Company Non-Closing Disbursement Schedule”) provided to
the Company, which shall be attached with all the invoices evidencing such
expenses, on the date (the “Company Non-Closing Date”) that is the
earliest of (i) the date on which the Company elects not to proceed with the
Closing, (ii) the Investors have reasonably determined that the closing
conditions set forth in Section 5.1 cannot be satisfied by the Company, and
(iii) the Outside Date, and shall pay such costs within seven (7) days of the
Company Non-Closing Date. In the event that there are additional fees, expenses
and/or consideration in connection with the transactions contemplated herein due
to the Investors, Placement Agent, or their respective accountants, attorneys or
other experts, the Company shall pay such amounts within seven (7) days of the
receipt of an invoice from such party pursuant to this Section 6.1(b) . 

          (c)
In the event the Closing shall have not occurred as elected by the Investors or
due to the non-fulfillment by any Investor of the closing conditions set forth
in Section 5.2, the Company shall be responsible for: all the fees, expenses
and/or consideration due to: (i) the Investors as provided in the Transaction
Documents (to the extent such fees, expenses and/or consideration are payable
regardless of failure to close due to the events set forth herein), (ii) the
Placement Agent as provided in the Placement Agent Agreement (to the extent such
fees, expenses and/or consideration are payable regardless of failure to close
due to the events set forth herein), and (iii) to the respective accountants,
attorneys or other experts of the Company and the Investors, in the amounts
specified in the a schedule (the “Investor Non-Closing Disbursement Schedule”) provided to the Company, which
shall be attached with all the invoices evidencing such expenses, on the date
(the “Investor Non-Closing Date”) that is the earlier of (i) the date on
which the Investors elect not to proceed with the Closing, (ii) the Company has
reasonably determined that the closing conditions set forth in Section 5.2
cannot be satisfied by the Investors, and (iii) the Outside Date, and shall pay
such costs within seven (7) days of the Investor Non-Closing Date. In the event
that there are additional fees, expenses and/or consideration in connection with
the transactions contemplated herein due to the Investors, Placement Agent, or
their respective accountants, attorneys or other experts, the Company shall pay
such amounts within seven (7) days of the of the receipt of an invoice from such
party pursuant to this Section 6.1(c) . 

36 

          (d)
All amounts that any Investor or its accountants, attorneys or other experts are
entitled to pursuant to the Closing Disbursements Schedule shall be included as
a portion of the Reimbursable Fees and Expenses and shall be deducted from such
Investor’s Investment Amount pursuant to Section 2.1(b) . The deduction of such
accountable Reimbursable Fees and Expenses shall relieve the Company from any
liability for such accountable Reimbursable Fees and Expenses of each respective
Investor or to the attorneys, accountants, or other experts of such Investor.

     6.2 Share Issuance
Limitations. In the event (i) upon conversion of the Series A Preferred
Stock, or (ii) upon exercise of the Warrants, the aggregate number of shares of
Common Stock issued thereunder would exceed 9,599,607 shares of Common Stock
(the “Exchange Cap”), the Company will undertake all actions in order to
avoid breaching the Company’s obligations under the rules or regulations of any
applicable Trading Market, including, but not limited to: (A) obtaining the
approval of its stockholders as required by the applicable rules of such Trading
Market for issuances of Common Stock in excess of such amount or (B) obtaining a
written opinion from outside counsel to the Company that such approval is not
required, which opinion shall be reasonably satisfactory to the Investors. 

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

     6.4 Notices. Any and all
notices or other communications or deliveries required or permitted to be
provided hereunder shall be in writing and shall be deemed given and effective
on the earliest of (a) the date of transmission, if such notice or communication
is delivered via facsimile (provided the sender receives a machine-generated
confirmation of successful transmission) at the facsimile number specified in
this Section 6.4 prior to 5:30 p.m. (New York City time) on a Business Day, (b)
the next Business Day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number specified in
this Section 6.4 on a day that is not a Business Day or later than 5:30 p.m.
(New York City time) on any Business Day, (c) the Business Day following the
date of mailing, if sent by U.S. nationally recognized overnight courier
service, or (d) upon actual receipt by the party to whom such notice is required
to be given. The address for such notices and communications shall be as
follows: 

37 

If to the Company: 

Jinhao Motor Company 
Dawang Industrial Park 
Zhaoqing
Hi-Tech Exploit Area 
Guangdong Province, PRC 
Facsimile: (86)
0758-3625311 
Attention: Chief Executive Officer 

With a copy to: 

Pillsbury Winthrop Shaw Pittman LLP 
50 Fremont 
San
Francisco, CA 94105-2228 
Facsimile: (415)983-1200 
Attn.: Scott Kline,
Esq. 

If to an Investor: 

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

If to the Major Shareholder: 

Mr. Tsoi Chak Shing 
Jinhao Motor Company 
Dawang
Industrial Park 
Zhaoqing Hi-Tech Exploit Area 
Guangdong Province, PRC

Facsimile: (86) 0758-3625311 

With a copy to: 

Pillsbury Winthrop Shaw Pittman LLP 
50 Fremont 
San
Francisco, CA 94105-2228 
Facsimile: (415)983-1200 
Attn.: Scott Kline,
Esq. 

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

     6.5 Amendments; Waivers; No
Additional Consideration. No provision of this Agreement may be waived or
amended except in a written instrument signed by the Company, the Major
Shareholder and the Investors holding a 66 2/3% majority of the Securities
subscribed for by Investors (excluding any Investors that are Affiliates of the
Company). No waiver of any default with respect to any provision, condition or
requirement of this Agreement shall be deemed to be a continuing waiver in the
future or a waiver of any subsequent default or a waiver of any other provision,
condition or requirement hereof, nor shall any delay or omission of either party
to exercise any right hereunder in any manner impair the exercise of any such
right. No consideration shall be offered or paid to any Investor to amend
or consent to a waiver or modification of any provision of any Transaction
Document unless the same consideration is also offered to all Investors who then
hold Shares. With prior written approval from the Lead Investor, a Person can,
without the need for approval by any other Investors to this Agreement, become a
Party to this Agreement by executing and delivering a joinder signature page
hereto before the Outside Date, whereupon such Person will be deemed an Investor
for all purposes of this Agreement and will be automatically added to Exhibit
A hereto. 

38 

     6.6 Termination. This
Agreement may be terminated, and the transactions contemplated thereby may be
abandoned at any time prior to Closing: 

          (a)
by written agreement of an Investor (as to itself but no other Investor) and the
Company; 

          (b)
by the Company or an Investor (as to itself but no other Investor) upon written
notice to the other, if the Closing shall not have taken place by 6:30 p.m.
Eastern time on the Outside Date; provided, that the right to terminate this
Agreement under this Section 6.6(b) shall not be available to any Person whose
failure to comply with its obligations under this Agreement has been the cause
of or resulted in the failure of the Closing to occur on or before such time;

          (c)
by either the Company or any Investor in the event that any Governmental Body
restraining, enjoining or otherwise prohibiting the transactions contemplated by
this Agreement shall have become final and non-appealable; or 

          (d)
upon written notice from an Investor (as to itself but no other Investor), in
the event of a material breach of this Agreement by the Company or the Major
Shareholder, if such breach has not been cured within five (5) Business Days
following notification thereof. 

     In the event of a termination
pursuant to this Section 6.6, the Company shall promptly notify all
non-terminating Investors. Upon a termination in accordance with this Section
6.6, the Company and the terminating Investor(s) shall not have any further
obligation or liability (including as arising from such termination) to the
other and no Investor will have any liability to any other Investor under this
Agreement as a result therefrom (other than for those obligations which are
intended, expressly or implicitly, to survive the termination of this
Agreement); provided, however, that no such termination of this Agreement shall
relieve any party of any liability for breaches of this Agreement occurring
prior to the date of termination. 

     6.7 Construction;
Interpretation. The headings herein are for convenience only, do not
constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof. The language used in this Agreement will be deemed
to be the language chosen by the parties to express their mutual intent, and no
rules of strict construction will be applied against any party. This Agreement
shall be construed as if drafted jointly by the parties, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any provisions of this Agreement or any of the Transaction
Documents. The words “including,” “include” and other words of similar import
shall be deemed to be followed by the words “without limitation.” 

39 

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

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

     6.10 Governing Law. All
questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by and construed and enforced in accordance
with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Any dispute, controversy or claim
arising out of or relating to this Agreement or the transactions contemplated
hereof, or the breach, termination or invalidity thereof, shall be settled by
arbitration in Hong Kong under the UNCITRAL Arbitration Rules in accordance with
the Hong Kong International Arbitration Centre Procedures for the Administration
of International Arbitration in force at the date hereof. The place of the
arbitration shall be Hong Kong and the language of the arbitration shall be
English. There shall be only one arbitrator. 

     6.11 Survival. The
representations, warranties, agreements and covenants contained in or made
pursuant to Section 3.1(a) through Section 3.1(g) shall survive the execution
and delivery of this Agreement and the Closing indefinitely, (ii) the
warranties, representations and covenants of the contained in or made pursuant
to Section 3.1(h) through Section 3.1(ii) (other than Section 3.1(t)), shall
survive the execution and delivery of this Agreement and the Closing the until
the date which is twenty-four (24) months from the date of this Agreement, (iii)
the warranties, representations and covenants of the Warrantors contained in or
made pursuant to Section 3.1(t) shall survive the execution and delivery of this
Agreement and the Closing the until the expiration of the applicable statute of
limitations (including all periods of extension, whether automatic or
permissive) with respect to matters covered by such Section 3.1(t), and (iv) the
warranties, representations and covenants contained in or made pursuant to
Section 3.2 shall survive the execution and delivery of this Agreement and the
Closing until the date which is twenty-four (24) months from the date of this
Agreement. 

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

40 

     6.13 Severability. If any
provision of this Agreement is held to be invalid or unenforceable in any
respect, the validity and enforceability of the remaining terms and provisions
of this Agreement shall not in any way be affected or impaired thereby. 

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

     6.15 Independent Nature of
Investors’ Obligations and Rights. The obligations of each Investor under
any Transaction Document are several and not joint with the obligations of any
other Investor, and no Investor shall be responsible in any way for the
performance of the obligations of any other Investor under any Transaction
Document. The decision of each Investor to purchase Securities pursuant to the
Transaction Documents has been made by such Investor independently of any other
Investor. Nothing contained herein or in any Transaction Document, and no action
taken by any Investor pursuant thereto, shall be deemed to constitute the
parties hereto as a partnership, an association, a joint venture or any other
kind of entity, or create a presumption that the parties hereto are in any way
acting in concert or as a group with respect to such obligations or the
transactions contemplated by the Transaction Documents. Nothing in this
Agreement shall be deemed to constitute any party the trustee or agent of any
other party for any other purpose, or entitle any party to commit or bind any
other party (or its Affiliates) in any manner. Each Investor acknowledges that
no other Investor has acted as agent for such Investor in connection with making
its investment hereunder and that no Investor will be acting as agent of such
Investor in connection with monitoring its investment in the Shares or enforcing
its rights under the Transaction Documents. Each Investor shall be entitled to
independently protect and enforce its rights, including the rights arising out
of this Agreement or out of the other Transaction Documents, and it shall not be
necessary for any other Investor to be joined as an additional party in any
proceeding for such purpose. The Company acknowledges that each of the Investors
has been provided with the same Transaction Documents for the purpose of closing
a transaction with multiple Investors and not because it was required or
requested to do so by any Investor. 

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

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK -- 
SIGNATURE
PAGES FOLLOW] 

41 

Exhibit 10.1 

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

	JINHAO MOTOR COMPANY 
	  	  
	  	  
	By: 	/s/
      Tsoi Chak Shing 
	Name: 	Tsoi Chak Shing 
	Title: 	Chairman 
	  	  
	  	  
	  	  
	  	  
	JINHAO POWER HOLDINGS LIMITED 
	  	  
	  	  
	By: 	/s/
      Tsoi Chak Shing 
	Name: 	Tsoi Chak Shing 
	Title: 	Director 
	  	  
	  	  
	  	  
	  	  
	JINHAO MOTORCYCLE COMPANY LIMITED
    
	  	  
	  	  
	By: 	/s/
      Tsoi Chak Shing 
	Name: 	Tsoi Chak Shing 
	Title: 	Director 
	  	  
	  	  
	  	  
	  	  
	GUANGDONG JINHAO MOTORCYCLE CO.,
      LTD. 
	  	  
	  	  
	By: 	/s/
      Tsoi Chak Shing 
	Name: 	Tsoi Chak Shing 
	Title: 	Director 

JINHAO MOTOR COMPANY – SERIES A SECURITIES PURCHASE AGREEMENT

SIGNATURE PAGE 

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

	JINHAO NEW ENERGY (ZHAOQING) 
	DEVELOPMENT CO., LTD. 
	  	  
	  	  
	By: 	/s/
      Tsoi Chak Shing 
	Name: 	Tsoi Chak Shing 
	Title: 	Director 
	  	  
	  	  
	  	  
	  	  
	TSOI CHAK SHING 
	  	  
	  	  
	  	  
	  	  
	/s/
      Tsoi Chak Shing

JINHAO MOTOR COMPANY – SERIES A SECURITIES PURCHASE AGREEMENT

SIGNATURE PAGE 

Exhibit 10.1 

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

	4,342,896 Units 	Aggregate 	Subscription 	Price: 
	  	US$19,000,000 	  	  

	Name and Address of Investor: 	Registration Instructions (if
      different): 
	  	  
	DBS Nominees (Private) Limited 	  
	Name of Investor (please print) 	Name 
	  	  
	By: /s/ Stanley Leung 	  
	Authorized Signature 	Account Reference, if applicable 
	Senior Vice President 	  
	Official Capacity or Title (please print) 	  
	  	  
	  	  
	Stanley Leung 	  
	(Please print name of signatory if different 	Address, including postal code 
	from the name of the Investor printed above.) 	  
	  	Delivery Instructions (if different):
  
	Investor’s Address: 	  
	  	  
	  	Name 
	6 Shenton Way, DBS Building Tower One, 	  
	  	  
	#30-01, Singapore 068809 	Account Reference, if applicable 
	  	  
	  	  
	  	  
	Telephone Number: (+65)6878-6446 	  
	  	  
	Fax Number: (+65)6220-7487 	  
	  	Address, including postal code 
	E-mail Address: 	  
	  	Telephone Number 

JINHAO MOTOR COMPANY – SERIES A SECURITIES PURCHASE AGREEMENT

SIGNATURE PAGE 

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

	1,142,867 Units 	Aggregate 	Subscription 	Price: 
	  	US$5,000,000 	  	  

	Name and Address of Investor: 	Registration Instructions (if
      different): 
	  	  
	The Islamic Bank of Asia Limited 	DBS NOMINEES (PRIVATE) LIMITED 
	Name of Investor (please print) 	Name 
	  	  
	By: /s/ Tan Jeh Wuan 	The Islamic Bank of Asia Limited
    
	       Authorized Signature 	SG0700071323 
	Managing Director 	Account Reference, if applicable 
	Official Capacity or Title (please print) 	  
	  	  
	  	DBS NOMINEES (PRIVATE) LIMITED 
	  	60 ALEXANDRA TERRACE 
	  	#05-27 THE COMTECH 
	  	SINGAPORE 118502 
	Tan Jeh Wuan 	  
	(Please print name of signatory if different 	Address, including postal code 
	from the name of the Investor printed above.) 	  
	  	Delivery Instructions (if different):
  
	Investor’s Address: 	  
	  	  
	6 Shenton Way, DBS Building Tower One, 	Name 
	  	  
	#01-01/02, Singapore 068809 	Account Reference, if applicable 
	  	  
	  	  
	  	  
	Telephone Number: +65 6878 9826 	  
	  	  
	  	DBS NOMINEES (PRIVATE) LIMITED 
	  	60 ALEXANDRA TERRACE 
	Fax Number: +65 6878 8208 	#05-27 THE COMTECH, LOBBY C 
	  	SINGAPORE 118502 
	  	  
	  	Address, including postal code 
	  	  
	E-mail Address: 	+65-68788257 
	  	Telephone Number 
	  	  
	Name and Address of Investor: 	Registration Instructions (if different):

	  	  
	The Islamic Bank of Asia Limited 	DBS NOMINEES (PRIVATE) LIMITED
  

JINHAO MOTOR COMPANY – SERIES A SECURITIES PURCHASE AGREEMENT

SIGNATURE PAGE 

	Name of Investor (please print) 	Name 
	  	  
	By: /s/ Tan Jeh Wuan 	The Islamic Bank of Asia Limited 
	Authorized Signature 	SG0700071323 
	Managing Director 	Account Reference, if applicable 
	Official Capacity or Title (please print) 	  
	  	  
	  	DBS NOMINEES (PRIVATE) LIMITED 
	  	60 ALEXANDRA TERRACE 
	  	#05-27 THE COMTECH 
	  	SINGAPORE 118502 
	Tan Jeh Wuan 	  
	(Please print name of signatory if different 	Address, including postal code 
	from the name of the Investor printed above.) 	  
	  	Delivery Instructions (if different):
  
	Investor’s Address: 	  
	  	  
	6 Shenton Way, DBS Building Tower One, 	Name 
	  	  
	#01-01/02, Singapore 068809 	Account Reference, if applicable 
	  	  
	  	  
	  	  
	Telephone Number: +65 6878 9826 	  
	  	  
	  	DBS NOMINEES (PRIVATE) LIMITED 
	  	60 ALEXANDRA TERRACE 
	  	#05-27 THE COMTECH, LOBBY C 
	Fax Number: +65 6878 8208 	SINGAPORE 118502 
	  	  
	  	Address, including postal code 
	  	  
	E-mail Address: 	+65-68788257 
	  	Telephone Number 

JINHAO MOTOR COMPANY – SERIES A SECURITIES PURCHASE AGREEMENT

SIGNATURE PAGE 

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

	1,371,441 Units 	Aggregate 	Subscription 	Price: 
	  	US$6,000,000 	  	  

	Name and Address of Investor: 	Registration Instructions (if
      different): 
	  	  
	Profit Tone Global Investments 	  
	Name of Investor (please print) 	Name 
	  	  
	By: /s/ Liu, Hao 	  
	Authorized Signature 	Account Reference, if applicable 
	  	  
	Sole Owner 	  
	Official Capacity or Title (please print) 	  
	  	  
	  	  
	Liu, Hao 	  
	(Please print name of signatory if different 	Address, including postal code 
	from the name of the Investor printed above.) 	  
	  	Delivery Instructions (if different):
  
	Investor’s Address: 	  
	  	  
	Suites 3702-04. 37/F, Tower 6, The 	Name 
	Gateway, Harbour City, TST, Kowloon 	  
	Hong Kong, China 	  
	  	  
	  	Account Reference, if applicable 
	  	  
	  	  
	  	  
	Telephone Number: 852.3719.9399 	  
	  	  
	Fax Number: 852.3719.9328 	  
	  	Address, including postal code 
	  	  
	  	  
	  	  
	E-mail Address: 	  
	  	Telephone Number 

JINHAO MOTOR COMPANY – SERIES A SECURITIES PURCHASE AGREEMENT

SIGNATURE PAGE 

Exhibit 10.1 

EXHIBIT A 

______________________________________________ 

SCHEDULE OF BUYERS 

	  	  	  	Investment 	  	Shares of Series A Redeemable
    	  
	No. 	Investor Name 	Investor Address 	Amount (US$) 	Units Purchased 	Convertible Preferred Stock 	Warrants 
	1. 

	DBS Nominees 
(Private)
      Limited 
	6 Shenton Way, #30-01 
DBS
      Building Tower One 
Singapore 068809 	19,000,000 

	4,342,896 

	4,342,896 

	2,171,448 

	2. 

	The Islamic Bank of 
Asia Limited

	6 Shenton Way 
#01-01/02 
DBS Building
      Tower 1 
Singapore 068809 	5,000,000 

	1,142,867 

	1,142,867 

	571,433 

	3. 

	Profit Tone Global
      
Investments 
	Suites 3702-04. 37/F, Tower 6,
      
The Gateway, Harbour City, TST, 
Kowloon Hong Kong, China 	6,000,000 

	1,371,441 

	1,371,441 

	685,720

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