Document:

Exhibit
      10.1

    

    SECOND
      MODIFICATION AGREEMENT

     

    BY
      THIS
      SECOND MODIFICATION AGREEMENT (the "Agreement"), made and entered into as of
      the
      26th day of October, 2007, by WELLS FARGO BANK, NATIONAL ASSOCIATION, a national
      banking association, whose address is Commercial Banking, MAC S4101-251, 100
      West Washington, Phoenix, Arizona 85003 (hereinafter called "Lender"), and
      UNIVERSAL TECHNICAL INSTITUTE, INC., a Delaware corporation, dba UNIVERSAL
      TECHNICAL INSTITUTE OF DELAWARE ("Borrower"), whose address is 20410 North
      19th
      Avenue, Suite 200, Phoenix, Arizona 85027, in consideration of the mutual
      covenants herein contained and other good and valuable consideration, the
      receipt and sufficiency of which is hereby acknowledged, hereby confirm and
      agree as follows:

     

    SECTION
      1. RECITALS;
      ACKNOWLEDGEMENTS.

     

    1.1 Borrower
      and Lender entered into a Credit Agreement dated October 26, 2004, as
      amended by that certain Modification Agreement dated July 5, 2006 (as amended,
      the "Credit Agreement"), which provided for, among other things, a line of
      credit ("Line of Credit") in the maximum aggregate amount of $30,000,000.00
      (collectively, the "Loans"), all upon the terms and conditions contained
      therein. All undefined capitalized terms used herein shall have the meaning
      given them in the Credit Agreement. The Credit Agreement, the Line of Credit
      Note and all other agreements, documents and instruments relating to the Loans
      are referred to as the Credit Documents.

     

    1.2 Borrower
      and Lender desire to modify the Credit Documents as set forth
      herein.

     

    SECTION
      2. CREDIT
      DOCUMENTS MODIFICATIONS.

     

    2.1 Section
      4.9 of the Credit Agreement is hereby amended to read as follows: 

     

    SECTION
      4.9 FINANCIAL
      CONDITION.
      Maintain Borrower's financial condition at the end of each fiscal year with
      respect to Sections 4.9(a) and 4.9(b) and at the end of each fiscal quarter
      for
      Sections 4.9 (c), (d) and (e) as follows using generally accepted accounting
      principles consistently applied and used consistently with prior practices
      (except to the extent modified by the definitions herein), with compliance
      determined commencing with Borrower's financial statements for the period ending
      December, 2007:

     

    (a) Net
      income after taxes determined for any fiscal year of not less than $7,500,000.00
      for such year.

     

    (b) Net
      income after taxes determined for any two (2) consecutive fiscal quarters of
      not
      less than $0.00 for such consecutive quarters.

     

    (c) Total
      Liabilities divided by Tangible Net Worth determined for any fiscal quarter
      of
      not greater than the DNW Ratio, with "Total Liabilities" defined as the
      aggregate of current liabilities and non-current liabilities excluding EITF
      97-10 Liabilities up to $30,000,000.00 less subordinated debt, with "Tangible
      Net Worth" defined as total assets less Total Liabilities and less any
      intangible assets, and with "DNW Ratio" defined as 3.00 to 1.00.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d) Current
      Ratio determined for any fiscal quarter of less than the CR Requirement.
      "Current Ratio" is defined as total current assets divided by total current
      liabilities which shall include without limitation any outstanding balance
      on
      the Line of Credit, outstanding surety bonds and any outstanding Letters of
      Credit under the Line of Credit Commitment), with "CR Requirement" defined
      as
      0.50 to 1.00.

     

    (e) Tangible
      Net Worth (as defined in Paragraph (c) above) determined as of any fiscal
      quarter of not less than $35,000,000.00.

     

    2.2 The
      following definitions in Exhibit "A" to the Credit Agreement are hereby amended
      to read as follows:

     

    "Line
      of
      Credit Maturity Date" means October 26, 2009.

     

    "Tangible
      Net Worth": See Section 4.9(c).

     

    SECTION
      3. OTHER
      MODIFICATIONS, RATIFICATIONS AND AGREEMENTS.

     

    3.1 All
      references to the Credit Agreement in the Credit Documents are hereby amended
      to
      refer to the Credit Agreement as hereby amended.

     

    3.2 Borrower
      acknowledges that the indebtedness evidenced by the Line of Credit Note is
      just
      and owing, that the balance thereof is correctly shown in the records of Lender
      as of the date hereof, and Borrower agrees to pay the indebtedness evidenced
      by
      the Line of Credit Note according to the terms thereof, as herein
      modified.

     

    3.3 Borrower
      hereby reaffirms to Lender each of the representations, warranties, covenants
      and agreements of Borrower set forth in the Line of Credit Note and the Credit
      Agreement, with the same force and effect as if each were separately stated
      herein and made as of the date hereof.

     

    3.4 Borrower
      hereby ratifies, reaffirms, acknowledges, and agrees that the Line of Credit
      Note and the Credit Agreement, represent valid, enforceable and collectible
      obligations of Borrower, and that there are no existing claims, defenses,
      personal or otherwise, or rights of setoff whatsoever with respect to any of
      these documents or instruments. In addition, Borrower hereby expressly waives,
      releases and absolutely and forever discharges Lender and its present and former
      shareholders, directors, officers, employees and agents, and their separate
      and
      respective heirs, personal representatives, successors and assigns, from any
      and
      all liabilities, claims, demands, damages, action and causes of action, of
      which
      Borrower has, or may reasonably be expected to have knowledge, that Borrower
      may
      now have, or has had prior to the date hereof, or that may hereafter arise
      with
      respect to acts, omissions or events occurring prior to the date hereof and,
      without limiting the generality of the foregoing, from any and all liabilities,
      claims, demands, damages, actions and causes of action, known or unknown,
      contingent or matured, arising out of, or in any way connected with, the Loans.
      Borrower further acknowledges and represents that no event has occurred and
      no
      condition exists that, after notice or lapse of time, or both, would constitute
      a default under this Agreement, the Line of Credit Note or the Credit
      Agreement.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    3.5 All
      terms, conditions and provisions of the Line of Credit Note and the Credit
      Agreement are continued in full force and effect and shall remain unaffected
      and
      unchanged except as specifically amended hereby. The Line of Credit Note and
      the
      Credit Agreement, as amended hereby, are hereby ratified and reaffirmed by
      Borrower, and Borrower specifically acknowledges the validity and enforceability
      thereof.

     

    SECTION
      4. GENERAL.

     

    4.1 This
      Agreement in no way acts as a release or relinquishment of those rights securing
      payment of the Loans. Such rights are hereby ratified, confirmed, renewed and
      extended by Borrower in all respects.

     

    4.2 The
      modifications contained herein shall not be binding upon Lender until Lender
      shall have received all of the following:

     

    (a) An
      original of this Agreement, fully executed by the Borrower.

     

    (b) An
      original Consent and Agreement of Guarantors executed by each
      Guarantor.

     

    (c) Such
      resolutions or authorizations and such other documents as Lender may require
      relating to the existence and good standing of the Borrower and the authority
      of
      any person executing this Agreement or other documents on behalf of the
      Borrower.

     

    4.3 Borrower
      shall execute and deliver such additional documents and do such other acts
      as
      Lender may reasonably require to fully implement the intent of this
      Agreement.

     

    4.4 Borrower
      shall pay all costs and expenses, including, but not limited to, reasonable
      attorneys' fees incurred by Lender in connection herewith, whether or not all
      of
      the conditions described in Paragraph 4.2 above are satisfied. Lender, at its
      option, but without any obligation to do so, may advance funds to pay any such
      costs and expenses that are the obligation of the Borrower, and all such funds
      advanced shall bear interest at the highest rate provided in the Line of Credit
      Note and shall be due and payable upon demand.

     

    4.5 Notwithstanding
      anything to the contrary contained herein or in any other instrument executed
      by
      Borrower or Lender, or in any other action or conduct undertaken by Borrower
      or
      Lender on or before the date hereof, the agreements, covenants and provisions
      contained herein shall constitute the only evidence of Lender's consent to
      modify the terms and provisions of the Credit Agreement. Accordingly, no express
      or implied consent to any further modifications involving any of the matters
      set
      forth in this Agreement or otherwise shall be inferred or implied by Lender's
      execution of this Agreement. Further, Lender's execution of this Agreement
      shall
      not constitute a waiver (either express or implied) of the requirement that
      any
      further modification of the Loans or of the Line of Credit Note or the Credit
      Agreement, shall require the express written approval of Lender; no such
      approval (either express or implied) has been given as of the date
      hereof.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    4.6 Time
      is
      hereby declared to be of the essence hereof of the Loans, of the Line of Credit
      Note and of the Credit Agreement, and Lender requires, and Borrower agrees
      to,
      strict performance of each and every covenant, condition, provision and
      agreement hereof, of the Line of Credit Note and the Credit
      Agreement.

     

    4.7 This
      Agreement shall be binding upon, and shall inure to the benefit of, the parties
      hereto and their heirs, personal representatives, successors and
      assigns.

     

    4.8 This
      Agreement is made for the sole protection and benefit of the parties hereto,
      and
      no other person or entity shall have any right of action hereon.

     

    4.9 This
      Agreement shall be governed by and construed according to the laws of the State
      of Arizona.

     

    IN
      WITNESS WHEREOF, these presents are executed as of the date indicated
      above.

     

    
      	 	
              UNIVERSAL
                TECHNICAL INSTITUTE, INC., a Delaware corporation, dba UNIVERSAL
                TECHNICAL
                INSTITUTE OF DELAWARE

            
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/
                Jennifer L. Haslip

            
	 	
              Name:

            	
              Jennifer
                L. Haslip

            
	 	
              Title:

            	
              Chief
                Financial Officer

            

    

    

    BORROWER

     

    
      	 	
              WELLS
                FARGO BANK, NATIONAL ASSOCIATION, a national banking
                association

            
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/
                Keri M. Tignini

            
	 	
              Name:

            	
              Keri
                M. Tignini 

            
	 	
              Title:
                

            	
              Vice
                President

            

    

    

    LENDER

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    CONSENT
      AND AGREEMENT OF GUARANTORS

     

    Each
      of
      the undersigned Guarantors executed a Continuing Guaranty (each, a "Guaranty")
      as described in the Credit Agreement dated as of October 26, 2004 (as
      amended from time to time, the "Credit Agreement") between WELLS FARGO BANK,
      NATIONAL ASSOCIATION, a national banking association, and UNIVERSAL TECHNICAL
      INSTITUTE, INC., a Delaware corporation, dba UNIVERSAL TECHNICAL INSTITUTE
      OF
      DELAWARE Each of the undersigned Guarantors hereby consents and agrees to the
      modifications and all other matters contained in the foregoing Modification
      Agreement of even date herewith.

     

    
      	 	
              UTI
                HOLDINGS, INC., an Arizona corporation

            
	 	 	 
	 	 	 
	 	
              By

            	
              /s/
                Jennifer L. Haslip

            
	 	
              Name

            	
              Jennifer
                L. Haslip

            
	 	
              Its

            	
              CFO

            
	 	 	 
	 	 	 
	 	
              UNIVERSAL
                TECHNICAL INSTITUTE OF ARIZONA, INC., a Delaware
                corporation

            
	 	 	 
	 	 	 
	 	
              By

            	
              /s/
                Jennifer L. Haslip

            
	 	
              Name

            	
              Jennifer
                L. Haslip

            
	 	
              Its

            	
              CFO

            
	 	 	 
	 	 	 
	 	
              U.T.I.
                OF ILLINOIS, INC., an Illinois corporation

            
	 	 	 
	 	 	 
	 	
              By

            	
              /s/
                Jennifer L. Haslip

            
	 	
              Name

            	
              Jennifer
                L. Haslip

            
	 	
              Its

            	
              CFO

            

    

    

    

    
      	 	
              UNIVERSAL
                TECHNICAL INSTITUTE OF CALIFORNIA, INC., a California
                corporation

            
	 	 	 
	 	 	 
	 	
              By

            	
              /s/
                Jennifer L. Haslip

            
	 	
              Name

            	
              Jennifer
                L. Haslip

            
	 	
              Its

            	
              CFO

            

    

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    
      	 	
              UNIVERSAL
                TECHNICAL INSTITUTE OF NORTH CAROLINA, INC., a Delaware
                corporation

            
	 	 	 
	 	 	 
	 	
              By

            	
              /s/
                Jennifer L. Haslip

            
	 	
              Name

            	
              Jennifer
                L. Haslip

            
	 	
              Its

            	
              CFO

            
	 	 	 
	 	 	 
	 	
              UNIVERSAL
                TECHNICAL INSTITUTE OF TEXAS, INC., a Texas corporation

            
	 	 	 
	 	 	 
	 	
              By

            	
              /s/
                Jennifer L. Haslip

            
	 	
              Name

            	
              Jennifer
                L. Haslip

            
	 	
              Its

            	
              CFO

            
	 	 	 
	 	 	 
	 	
              UNIVERSAL
                TECHNICAL INSTITUTE OF PENNSYLVANIA, INC., a Delaware
                corporation

            
	 	 	 
	 	 	 
	 	
              By

            	
              /s/
                Jennifer L. Haslip

            
	 	
              Name

            	
              Jennifer
                L. Haslip

            
	 	
              Its

            	
              CFO

            

    

    

    

    
      	 	
              UNIVERSAL
                TECHNICAL INSTITUTE OF MASSACHUSETTS, INC., a Delaware
                corporation

            
	 	 	 
	 	 	 
	 	
              By

            	
              /s/
                Jennifer L. Haslip

            
	 	
              Name

            	
              Jennifer
                L. Haslip

            
	 	
              Its

            	
              CFO

            

    

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    
      	 	
              CLINTON
                EDUCATION GROUP, INC., a Delaware corporation

            
	 	 	 
	 	 	 
	 	
              By

            	
              /s/
                Jennifer L. Haslip

            
	 	
              Name

            	
              Jennifer
                L. Haslip

            
	 	
              Its

            	
              CFO

            
	 	 	 
	 	 	 
	 	
              CUSTOM
                TRAINING GROUP, INC., a California corporation

            
	 	 	 
	 	 	 
	 	
              By

            	
              /s/
                Jennifer L. Haslip

            
	 	
              Name

            	
              Jennifer
                L. Haslip

            
	 	
              Its

            	
              CFO

            
	 	 	 
	 	 	 
	 	
              UNIVERSAL
                TECHNICAL INSTITUTE OF NORTHERN CALIFORNIA, INC., a California
                corporation

            
	 	 	 
	 	 	 
	 	
              By

            	
              /s/
                Jennifer L. Haslip

            
	 	
              Name

            	
              Jennifer
                L. Haslip

            
	 	
              Its

            	
              CFO

            

    

    

    

    
      	 	
              UNIVERSAL
                TECHNICAL INSTITUTE OF PHOENIX, INC., a Delaware
                corporation

            
	 	 	 
	 	 	 
	 	
              By

            	
              /s/
                Jennifer L. Haslip

            
	 	
              Name

            	
              Jennifer
                L. Haslip

            
	 	
              Its

            	
              CFO

            

    

    

    GUARANTOR

    Dated
      as
      of October 26, 2007

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      "D"

    COMPLIANCE
      CERTIFICATE FOR

    PERIOD
      ENDING

    _____________,
      20___

    ("Reporting
      Period")

    

    

    Wells
      Fargo Bank, National Association

    MAC
      S4101-251

    100
      West
      Washington

    Phoenix,
      Arizona 85004

    Date:                          
      1 

    Dear
      Ladies and Gentlemen:

     

    This
      Compliance Certificate refers to the Credit Agreement dated as of
      October 26, 2004 (as it may hereafter be amended, modified, extended or
      restated from time to time, the "Credit Agreement"), between Universal Technical
      Institute, Inc., a Delaware corporation ("Borrower"), and Wells Fargo Bank,
      National Association ("Bank"). Capitalized terms used and not otherwise defined
      herein shall have the meanings assigned to such terms in the Credit
      Agreement.

     

    Pursuant
      to Section 4.3(c) of the Credit Agreement, the undersigned, the chief financial
      officer of Borrower, hereby certifies that:

     

    Enclosed
      are the required financial statements for the [fiscal quarter] [fiscal year]
      ending for the Borrower as required under Section 4.3 of the Credit Agreement,
      which fairly and accurately present in all material respects the financial
      condition and results of the operation of the Borrower.

     

    To
      the
      best of the undersigned's knowledge, no "Event of Default" and/or other event
      that with the passing of time or the giving of notice or both would become
      an
      Event of Default has occurred [or if so, specifying the nature and extent
      thereof and any corrective actions taken or to be taken].

     

    As
      of the
      last day of the Reporting Period, the computations below were true and
      correct:

     

    
      
        

      

      
        1 To
          be
          submitted within forty-five (45) days after the end of each fiscal quarter
          and
          (120) days after the end of each fiscal year).

      

    

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    
      	I.	
              Section
                4.9(a) - Net
                Income After Taxes (measured annually)

            	 	 	 
	 	 	 	 	 
	 	
              Net
                Income After Taxes

            	 	
              $

            	
                
                

            	 
	 	
               

            	 	 	 	 
	 	
              Net
                Income After Taxes Minimum Requirement

            	 	
              $

            	
              7,500,000

            	 
	 	 	 	 	 	 
	II.	
              Section
                4.9(b) - Net
                Income After Taxes (measured annually
                for each quarter)

            	 	 	 	 
	 	 	 	 	 	 
	 	
              Net
                Income After Taxes (quarter 1)

            	 	
              $

            	
                
                

            	 
	 	 	 	 	 	 
	 	
              Net
                Income After Taxes Minimum Requirement

            	 	
              $

            	
              0.00

            	 
	 	 	 	 	 	 
	 	
              Net
                Income After Taxes (quarter 2)

            	 	
              $

            	
                
                

            	 
	 	 	 	 	 	 
	 	
              Net
                Income After Taxes Minimum Requirement

            	 	
              $

            	
              0.00

            	 
	 	 	 	 	 	 
	 	
              Net
                Income After Taxes (quarter 3)

            	 	
              $

            	
                
                

            	 
	 	 	 	 	 	 
	 	
              Net
                Income After Taxes Minimum Requirement

            	 	
              $

            	
              0.00

            	 
	 	 	 	 	 	 
	 	
              Net
                Income After Taxes (quarter 4)

            	 	
              $

            	
                
                

            	 
	 	 	 	 	 	 
	 	
              Net
                Income After Taxes Minimum Requirement

            	 	
              $

            	
              0.00

            	 
	 	 	 	 	 	 
	II.	
              Section
                4.9(c) - Total
                Liabilities to Tangible Net Worth

            	 	 	 	 
	 	 	 	 	 	 
	 	
              Liabilities:

            	 	 	 	 
	 	 	 	 	 	 
	 	
              Current
                Liabilities

            	 	
              $

            	
               
                

            	 
	 	 	 	 	 	 
	 	
              Plus:
                Noncurrent Liabilities

            	 	
              $

            	
               
                

            	 
	 	 	 	 	 	 
	 	
              Less:
                EITF 97-10 Liabilities up to $30,000,000

            	 	($	  
	
              )

            
	 	 	 	 	 	 
	 	
              Less:
                Subordinated Debt

            	 	($	  
	
              )

            
	 	 	 	 	 	 
	 	
              Equals:
                Total Liabilities

            	 	
              $

            	
              A

            	 
	 	 	 	 	 	 
	 	
              Tangible
                Net Worth:

            	 	 	 	 
	 	 	 	 	 	 
	 	
              Total
                Assets

            	 	
              $

            	
                
                

            	 
	 	 	 	 	 	 
	 	
              Less:
                Total Liabilities

            	 	($	  
	
              )

            
	 	 	 	 	 	 
	 	
              Less:
                Intangible Assets

            	 	($	  
	
              )

            
	 	 	 	 	 	 
	 	
              Equals:
                Tangible Net Worth

            	 	
              $

            	
              B

            	 
	 	 	 	 	 	 
	 	
              DNW
                Ratio (A divided by B) Equals

            	 	 	
              :1.00

            	 
	 	 	 	 	 	 
	 	
              DNW
                Ratio Maximum Requirement

            	 	 	
              3.00:1.00

            	 

    

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    
      	III.	
              Section
                4.9(d) - Current
                Ratio

            	 	 
	 	 	 	 	 
	 	
              Numerator:

            	Current
              Assets	
              $

            	
              A

            	 
	 	 	 	 	 	 
	 	 	
              divided
                by 

            	 	 	 
	 	 	 	 	 	 
	 	
              Denominator:

            	
              Current
                Liabilities (including Line of Credit balance outstanding
                

              surety
                bonds and outstanding Letters of Credit 

              under
                The Line of Credit Commitment)

            	
              $

            	
              B

            	 
	 	  	 	 	 	 
	 	 	 	 	 	 
	 	
              Current
                Ratio

            	equals	 	
              A/B

            	 
	 	 	 	 	 	 
	 	
              Current
                Ratio Minimum Requirement.

            	 	50:1.00	 
	 	 	 	 	 	 
	IV.	
              Section
                4.9(e) - Tangible
                Net Worth

            	 	 	 
	 	 	 	 	 	 
	 	
              Amount

            	 	$	  
    
	 
	 	 	 	 	 	 
	 	
              Minimum
                Requirement

            	
              $

            	
              35,000,000.00

            	 

    

    

    

    
      	 	
              UNIVERSAL
                TECHNICAL INSTITUTE, INC., a Delaware corporation

            
	 	 	 
	 	 	 
	 	
              By:

            	        

	 	
              Name:

            	        

	 	
              Title:

            	        
              

    

     

    
      
        
        

      

      
        -10-Unassociated Document

    STOCK
      PURCHASE AGREEMENT

    

     

    Party
      A:
      Kexin
      Xiao

     

    Party
      B:
Wei
      Li

     

    Party
      C:
Kiwa
      Bio-Tech Products Group Corporation

     

    This
      Stock
      Purchase Agreement
      (this
      "Agreement")
      is
      made and entered into as of
      24th day
      of
October
      2007, by
      and between Kexin Xiao (the “Party
      A”),
      Wei
      Li (the “Party
      B”)
      and
      Kiwa Bio-Tech Products Group Corporation (the “Company”),
      a
      company incorporated under the laws of the State of Delaware in the United
      States of America whose registered office is at 415 W. Foothill Blvd, Suite#
      206, Claremont CA 91711, USA.

     

    Background

     

    Party
      B
      owes Party A money and the Company owes Party B money. The Company, Party A
      and
      Party B are willing to enter into a three-way agreement wherein the Company
      will
      issue a total of 2,000,000 newly issued, restricted shares (the "Shares") of
      the
      Common Stock of the Company, par value $0.001 per share to Party A, Party A
      will
      cancel a portion of the debt owed to it by Party B, and Party B will cancel
      a
      portion of the debt owed to it by the Company.

     

    Now,
      Therefore, for and in consideration of the premises and mutual covenants and
      agreements contained herein and other good and valuable consideration, the
      receipt and sufficiency of which are hereby acknowledged, the parties hereto
      do
      hereby represent, warrant, covenant, and agree as follows:

     

    Article
      1.
      Issuance and Sale of Shares

     

    Based
      upon the representations, warranties, and covenants and subject to the terms,
      provisions, and conditions contained in this Agreement, the Company agrees
      to
      sell and deliver the Shares to Party
      A,
      free and clear of all liens, pledges, encumbrances, and adverse claims, and
      Party A agrees to purchase the Shares from the Company for the consideration
      hereinafter set forth. 

     

    Article
      2.
      Purchase Price

     

    The
      total
      purchase price for the Shares is US$150,200
      (the "Purchase Price"). The Purchase Price is discounted 30% based on an average
      of the close prices of the Company’s common stock on the OTC Bulletin Board
      during the thirty (30) Trading Day period ending on October 19,
      2007.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    Article
      3.
      Three-Way Agreement and Mutual Consideration

     

    The
      Company agrees to issue the Shares to
      Party
      A. In consideration, Party A agrees to cancel debt owed to him by Party B in
      the
      amount of US$150,200. In consideration of Party A’s cancellation of such debt,
      Party B agrees to cancel debt owed by the Company to him in the amount of
      US$150,200. All three parties acknowledge that the benefits to them of
      participating in the three-way transaction are sufficient consideration for
      performing their part of the transaction.

     

    Article
      4. Deliveries

     

    The
      Shares will be deemed issued, and the debt of Party A and Party B will deemed
      cancelled, as of the effective date of this Agreement, which is the date first
      written above. Upon execution and delivery of this Agreement by each party
      to
      the other parties, this Agreement will be effective. The parties agree to tender
      appropriate documentation to the other parties evidencing the cancellation
      of
      the debt.

     

    Article
      5.
      Trading Restriction

     

    Party
      A
      acknowledges that
      the
      Shares have not been, and will not be registered under the Securities Act of
      1933, as amended (the “Securities Act”), by reason of a specific exemption from
      the registration provisions of the Securities Act that depends upon, among
      other
      things, the bona fide nature of the investment intent and the accuracy of Party
      A’s representations expressed in this Agreement. Party A understands that the
      Shares are “restricted securities” under applicable U.S. federal and state
      securities laws and that, pursuant to these laws, such Party A must hold the
      Shares indefinitely unless they are registered with the Securities and Exchange
      Commission and qualified by state authorities, or an exemption from such
      registration and qualification requirements is available.

     

    Each
      certificate representing the Shares will be stamped or otherwise imprinted
      with
      a legend in substantially the following form (in addition to any legends
      required by agreement or by applicable state securities laws):

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).
      SUCH SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH A
      REGISTRATION UNLESS THE COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY
      ACCEPTABLE TO IT STATING THAT SUCH SALE OR TRANSFER IS EXEMPT FROM THE
      REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE
      ACT.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Article
      6.
      Risk factors

     

    Party
      A
      agrees
      that investment in the Common Stock of the Company involves a high degree of
      risk and should be regarded as speculative. Party A further represents and
      agrees that it can afford a loss of its entire investment. In addition to the
      other information contained in this document, Party A has considered carefully
      the following factors.

     

    
      	a)	 	
              Limited
                Operating History.
                The Company has only a limited operating history from which Party
                A can
                evaluate its business and prospects for future success. The Company
                has
                recognized only very limited revenues to date.

            

    

     

    
      	b)	 	
              Full
                Disclosure.
                Party A acknowledges that it has reviewed the Company’s public disclosure
                documents filed with the SEC which can be found at
                www.sec.gov.

            

    

     

    
      	c)	 	
              Lack
                of Transferability, Marketability and Liquidity of the
                Shares.
                The Common Stock is currently quoted for trading on the OTC Bulletin
                Board, but trading volume is low and liquidity is limit. Consequently,
                Party A is prepared to remain a shareholder of the Company for long
                time.
                The Shares may not be sold in the public market except pursuant to
                an
                effective registration statement or an exemption from registration
                under
                the Securities Act.

            

    

     

    
      	d)	 	
              Minimal
                Capital.
                The Company currently believes it will need additional capital to
                sustain
                its operation. There can be no assurances we will be successful in
                obtaining this financing. If the amount of funding is not sufficient
                to
                obtain profitable business operations and the Company is liquidated,
                there
                will very likely not be any assets in the Company for payment to
                the
                shareholders.

            

    

     

    
      	e)	 	
              Dependence
                on Key Personnel.
                The Company’s development of its concept and business is dependent on its
                management team and the loss of any one of these persons could have
                a
                material adverse effect on the
                Company.

            

    

     

    Article
      7.
      Representations and Warranties of Party A

     

    In
      connection with the transactions contemplated hereby, Party A hereby represents
      and warrants to the Company that:

    

      
        	
                a)

              	
                Party
                  A understands that the Common Stock of the Company is quoted on
                  the OTC
                  Bulletin Board of the NASD, and that the Shares have not been registered
                  under the Securities Act. At the present trading of the Company’s stock is
                  subject to rules governing trading in penny
                  stock.

              

      

       

      
        	
                b)

              	
                Party
                  A has such knowledge and experience in financial and business matters
                  that
                  it is capable of seeking out and evaluating the information relevant
                  to
                  evaluating the Company, the proposed activities thereof, and the
                  merits
                  and risks of the prospective investment, and to make an informed
                  investment decision in connection
                  therewith.

              

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
        	
                c)

              	
                Party
                  A will hold the Shares subject to all of the applicable provisions
                  of the
                  Securities Act, and Party A will not at any time make any sale,
                  transfer,
                  or other disposition of the Shares in contravention of the Securities
                  Act.
                  Party A’s overall commitment to investments which are not readily
                  marketable is not disproportionate to Party A’s net worth; Party A’s
                  investment in the Company will not cause such overall commitment
                  to become
                  excessive; and Party A can afford to bear the loss of Party A’s entire
                  investment in the Company.

              

      

       

      
        	
                d)

              	
                Party
                  A understands that all information which Party A has provided to
                  the
                  Company concerning Party A, Party A’s financial position and knowledge of
                  financial and business matters is correct and complete as of the
                  date set
                  forth above and, if there should be any material change in such
                  information prior to the acceptance of this subscription, Party
                  A shall
                  promptly notify the Company
                  thereof.

              

      

       

      
        	
                e)

              	
                If
                  Party A is a United States person or entity, Party A represents
                  that Party
                  A satisfies any suitability or other applicable requirements of
                  Party A’s
                  state of residence and/or state in which the Common Stock are
                  purchased.

              

      

       

      
        	
                f)

              	
                If
                  Party A is not a United States person or entity, such Party A hereby
                  represents that he, she or it has satisfied himself, herself or
                  itself as
                  to the full observance of the laws of his, her or its jurisdiction
                  in
                  connection with any invitation to subscribe for the Common Stock
                  or any
                  use of this Agreement, including (i) the legal requirements within
                  his, her or its jurisdiction for the purchase of the Common Stock,
                  (ii) any foreign exchange restrictions applicable to such purchase,
                  (iii) any governmental or other consents that may need to be
                  obtained, and (iv) the income tax and other tax consequences, if any,
                  that may be relevant to the purchase, holding, redemption, sale
                  or
                  transfer of the Common Stock. Such Party A’s subscription and payment for,
                  and his, her or its continued beneficial ownership of the Common
                  Stock,
                  will not violate any applicable securities or other laws of his,
                  her or
                  its jurisdiction.

              

      

       

      
        	
                g)

              	
                If
                  an individual, Party A is over 21 years of
                  age.

              

      

       

      
        	
                h)

              	
                Party
                  A understands that the Shares have not been registered under the
                  Securities Act by reason of a claimed exemption under the provisions
                  of
                  the Securities Act which depends, in part, upon Party A’s investment
                  intention.

              

      

       

      
        	
                i)

              	
                Party
                  A understands that no securities administrator of any state or
                  any other
                  jurisdiction has made any finding or determination relating to
                  the
                  fairness of this investment and that no securities administrator
                  of any
                  state or any other jurisdiction has recommended or endorsed, or
                  will
                  recommend or endorse, the offering of the Common
                  Stock.

              

      

       

      
        	
                j)

              	
                Party
                  A has relied solely upon the advice of Party A’s own tax and legal
                  advisors with respect to the tax and other legal aspects of the
                  investment.

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	
                k)

              	
                Party
                  A warrants that Party A is an “accredited investor” within the meaning of
                  Rule 501(a) of Regulation D promulgated by the Securities and Exchange
                  Commission under the Act.

              

      

       

      
        	
                l)

              	
                The
                  sale of the Shares to Party A is being made without any public
                  solicitation or
                  advertisements.

              

      

    

    
       

      Article
        8.
        Representations and Warranties of the Company 

       

      In
        connection with the transactions contemplated hereby, the Company hereby
        represents and warrants to Party
        A
        as follows:

       

      8.1.
        Organization, Standing and Power.

       

      The
        Company is duly organized, validly existing and in good standing under the
        laws
        of the jurisdiction (the State of
        Delaware in the United States of America) in which it is incorporated and
        has
        the requisite corporate power and authority to carry on its business as now
        being conducted. The Company is duly qualified or licensed to do business
        and is
        in good standing in each jurisdiction in which the nature of its business
        or the
        ownership or leasing of its properties makes such qualification or licensing
        necessary, other than in such jurisdictions where the failure to be so qualified
        or licensed (individually or in the aggregate) would not have a Company Material
        Adverse Effect. For purposes of this Agreement, the term "Company Material
        Adverse Effect" means any material adverse effect with respect to the Company,
        taken as a whole, or any change or effect that adversely, or is reasonably
        expected to adversely, affect the ability of the Company to maintain its
        current
        business operations or to consummate the transactions contemplated by this
        Agreement in any
        material
        respect.

       

      8.2.
        Validity of Transaction.

       

      This
        Agreement is valid and legally binding obligations of the Company, enforceable
        in accordance with their respective terms against the Company, except as
        limited
        by bankruptcy, insolvency and similar laws affecting creditors generally,
        and by
        general principles of equity. At the time that the Shares are sold, assigned,
        transferred and conveyed to Party A pursuant to this Agreement, the Shares
        will
        be duly authorized, validly issued, fully paid and non-assessable. 

       

      The
        execution, delivery and performance of this Agreement have been duly authorized
        by the Company and will not violate any applicable federal or state law,
        any
        order of any court or government agency or the articles or certificate of
        incorporation of the Company.

       

      8.3.
        Capital Structure.

       

      The
        authorized stock of the Company consists of 200,000,000 shares of common
        stock,
        par value $0.001 per share and 20,000,000 shares of preferred stock, par
        value
        $0.001 per share.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      As
        of the
        date of this Agreement, the Company has approximately 76,800,000 shares of
        Common Stock outstanding, and there is no preferred stock outstanding. No
        share
        of Company
        Common Stock
        is held
        by the Company in its treasury. No bonds debentures, notes or other indebtedness
        of the Company having the right to vote. There are no outstanding stock
        appreciation rights or similar derivative securities or rights of the
        Company.

       

      There
        are
        approximately 17,700,000 shares of warrants in relation to consultant services
        and several loans outstanding. Under the Company’s 2004 Stock Incentive Plan, as
        amended, 1,410,007 shares of Company Common Stock are reserved for issuance,
        1,637,900 have been granted under the Plan.

       

      In
        addition, in the second half of 2006 the Company issued several 3-year
        convertible notes in the aggregate principal amount of $2,450,000 (the “6%
        Notes”). The conversion price of the 6% Notes is discounted 40% based on an
        average of the trading price of the Company’s common stock on the OTC Bulletin
        Board. As of the Closing date here, the outstanding principal balance of
        6%
        Notes is approximately $2,120,000.

       

      8.4.
        Authority: Non-contravention.

       

      The
        Company has the requisite corporate power and authority to enter into this
        Agreement and to consummate the transactions contemplated by this Agreement.
        The
        execution and delivery of this Agreement by the Company and the consummation
        by
        the Company of the transactions contemplated hereby have been duly authorized
        by
        all necessary corporate action on the part of the Company.

       

      8.5.
        Litigation, etc.

       

      As
        of the
        date hereof, (a) there is no suit, claim, action or proceeding (at law or
        in
        equity) pending or, to the knowledge of the Company, threatened against the
        Company (including, without limitation, any product liability claims) before
        any
        court or governmental or regulatory authority or body, and (b) the Company
        is
        not subject to any outstanding order, writ, judgment, injunction, order,
        decree
        or arbitration order that, in any such case described in clauses (a) and
        (b),
        (i) could reasonably be expected to have, individually or in the aggregate,
        a
        Company Material Adverse Effect or (ii) involves an allegation of criminal
        misconduct or a violation of the Racketeer and Influenced Corrupt Practices
        Act,
        as amended. As of the date hereof, there are no suits, actions, claims or
        proceedings pending or, to the Company's knowledge, threatened, seeking to
        prevent, hinder, modify or challenge the transactions contemplated by this
        Agreement.

       

      Article
        9.
        Survival of Representations and Warranties

       

      All
        representations, warranties, covenants, and agreements contained herein shall
        not be discharged or dissolved upon, but shall survive the closing.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      Article
        10.
        Entirety and Modification

       

      This
        Agreement constitutes the entire agreement between the parties hereto with
        respect to the subject matter hereof and supersedes any and all prior agreements
        and understandings, whether oral or written, between the parties hereto relating
        to such subject matter. No modification, alteration, amendment, or supplement
        to
        this Agreement shall be valid or effective unless the same is in writing
        and
        signed by all parties hereto.

       

      Article
        11.
        Successors and Assigns

       

      This
        Agreement shall be binding upon and inure to the benefit of the respective
        parties hereto, their successors and permitted assigns, heirs, and personal
        representatives.

       

      Article
        12.
        Governing Law.

       

      This
        Agreement shall be governed by and construed and enforced in accordance with
        the
        laws of the State of Delaware.

       

      In
        relation to any legal action or proceedings arising out of or in connection
        with
        this Agreement (“Proceedings”), each party irrevocably submits to the
        jurisdiction of the courts of the state of Delaware and waives any objection
        to
        Proceedings in any such court on the grounds of venue or on the grounds that
        the
        Proceedings have been brought in an inconvenient forum.

       

      IN
        WITNESS WHEREOF, the parties hereto have duly executed this agreement as
        of the
        date first written above.

       

      

      PARTY
        A:

       

      /S/:
        Kexin
        Xiao

       

      Name:
        Kexin Xiao

      

      PARTY
        B:

       

      /s/:
        Wei
        Li

       

      Name:
        Wei
        Li

      

      Party
        C:
Kiwa
        Bio-Tech Products Group Corporation

       

      /s/:
        Lianjun
        Luo

       

      Name:
        Lianjun Luo

       

      Title:
        Director and CFO

    

     

    
      
        
        

      

      
        7

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