Document:

Exhibit
      4.5

     

    REGISTRATION
      RIGHTS AGREEMENT

    

    REGISTRATION
      RIGHTS AGREEMENT, dated as of February 16, 2007 (this “Agreement”),
      among
      the persons executing this Agreement as holders (the “Holders”)
      below
      and CONCEPT VENTURES CORPORATION, a Nevada corporation (the “Company”).

    

    BACKGROUND

    

    The
      Holders made certain loans to the Company’s indirect Chinese subsidiary in the
      aggregate principal amount of approximately $762,500. In order to induce the
      Holders to make those loans Mr. Jiada Hu, the Company’s Chairman, Chief
      Executive Officer and largest stockholder granted to the Holders warrants (the
      “Warrants”)
      to
      purchase an aggregate of 161,408 shares of the Common Stock of the Company
      held
      by Mr. Hu and the Company agreed to grant to the Holders the registration rights
      provided for in this Agreement.

    

    AGREEMENT

    

    NOW,
      THEREFORE, in consideration of the mutual promises herein contained and for
      other good and valuable consideration, the receipt and sufficiency of which
      is
      hereby acknowledged, the parties hereto, hereby agree as follows:

    

    1.  Piggyback
      Registration Rights.
      If the
      Company shall determine to proceed with the preparation and filing of a
      registration statement, in connection with the proposed offer and sale of any
      of
      its securities by it or any of its security holders for cash (other than a
      registration statement on Form S-4, S-8 or other similar limited purpose
      form), the Company will give written notice of its determination to the Holders.
      Upon receipt of a written request from the Holders within thirty calendar days
      after receipt of any such notice from the Company, the Company will, except
      as
      herein provided, cause all the shares of Common Stock issuable upon exercise
      of
      the Warrants (the “Registrable
      Securities”),
      to
      the extent requested by the Holders, to be included in such registration
      statement, all to the extent required to permit the sale or other disposition
      by
      the Holders of such shares of Common Stock. If any registration pursuant to
      this
      Section 1 shall be underwritten in whole or in part, the Company may
      require that the Registrable Securities requested for inclusion pursuant to
      this
      Section 1 be included in the underwriting on the same terms and conditions
      as the securities otherwise being sold through the underwriters. In the event
      that the Registrable Securities requested for inclusion pursuant to this Section
      1 together with any other shares would, in the good faith judgment of the
      managing underwriter of such public offering, reduce the number of shares to
      be
      offered by the Company or interfere with the successful marketing of the
      securities offered by the Company, the Company will include in such registration
      the number of the Holders shares of Common Stock which is pro rata, based on
      the
      number of securities which in the opinion of such underwriters can be sold
      and
      on the number of securities which all holders request be included in the
      registration, provided that any shares of Common Stock proposed to be included
      in such registration statement that are owned by directors or officers of the
      Company or their Affiliates shall be excluded prior to exclusion of any shares
      of Common Stock requested to be included by the Holders. The obligation of
      the
      Company under this Section 1 shall be unlimited as to the number of
      Registration Statements to which it applies. Notwithstanding the foregoing,
      the
      Holders shall not be entitled to exercise the registration rights provided
      for
      under this Section 1 except to the extent that the Holder has exercised his
      or
      her Warrant. 

     

    
      
         

      

      
         

        
          

        

      

       

    

     

    2.  Demand
      Registration Right.
      Upon
      the written request of Holders who hold a majority of the Registrable
      Securities, the Company shall prepare and file a registration statement (the
      “Registration
      Statement”)
      with
      the Securities and Exchange Commission (the “SEC”)
      under
      the Securities Act of 1933, as amended (the “Securities
      Act”)
      to
      register the offer and resale of the Registrable Securities, and shall use
      its
      best efforts to cause such Registration Statement to become effective. The
      Company shall pay all Registration Expenses (as defined below) in connection
      with any registration, qualification or compliance hereunder, and Holders shall
      pay all Selling Expenses (as defined below) and other expenses that are not
      Registration Expenses relating to the Registrable Securities resold by the
      Holders. “Registration
      Expenses”
shall
      mean all expenses, except for Selling Expenses, incurred by the Company in
      complying with the registration provisions herein described, including, without
      limitation, all registration, qualification and filing fees, printing expenses,
      escrow fees, fees and disbursements of counsel for the Company, blue sky fees
      and expenses and the expense of any special audits incident to or required
      by
      any such registration. “Selling
      Expenses”
shall
      mean all selling commissions, underwriting fees and stock transfer taxes
      applicable to the Registrable Securities and all fees and disbursements of
      counsel for the Holders, if any. Notwithstanding the foregoing, the Holders
      shall not be entitled to exercise the registration rights provided for under
      this Section 2 except to the extent that the Holder has exercised his or her
      Warrant.

     

    3.  Company
      Obligations.
      If the
      Registration Statement becomes effective, the Company will use its best efforts
      to: (a) keep such registration effective until the earlier of (i) the second
      anniversary of the date such Registration Statement is declared effective,
      (ii)
      such date as all of the Registrable Securities have been resold pursuant to
      a
      registration statement, or (iii) such date as all Registrable Securities may
      be
      sold pursuant to Rule 144 of the Securities Act (or any successor rule); (b)
      except as otherwise provided herein, prepare and file with the SEC such
      amendments and supplements to the Registration Statement and the prospectus
      used
      in connection with the Registration Statement as may be necessary to comply
      with
      the provisions of the Securities Act with respect to the disposition of the
      Registrable Securities; (c)
      furnish such number of prospectuses and other documents incident thereto,
      including any amendment of or supplement to the prospectus, as Holder from
      time
      to time may reasonably request;
      and (d)
      file the documents required of the Company for normal blue sky clearance in
      states specified in writing by Holder and otherwise use its best efforts to
      maintain such blue sky clearance during the period the Company is required
      to
      maintain the effectiveness of the Registration Statement pursuant to (a) above,
      provided,
      however,
      that
      the Company shall not be required to qualify to do business or consent to
      service of process in any jurisdiction in which it is not now so qualified
      or
      has not so consented.

     

    4.  Suspension
      of Use of Registration Statement.
      Holder
      hereby acknowledges that there may occasionally be times when the Company must
      suspend the use of the prospectus forming a part of the Registration Statement
      until such time as an amendment to such Registration Statement has been filed
      by
      the Company and declared effective by the SEC or until the Company has amended
      or supplemented such prospectus. The Holder hereby covenants that it will not
      sell any securities pursuant to said prospectus during the period commencing
      at
      the time at which the Company gives the Holder notice of the suspension of
      the
      use of said prospectus and ending at the time the Company gives the Holder
      notice that Holder may thereafter effect sales pursuant to said prospectus.
      Notwithstanding anything herein to the contrary, the Company shall not suspend
      use of the Registration Statement by Holder unless such suspension is (a)
      required by any federal or state governmental authority or (b) in the opinion
      of
      the Company’s counsel, necessary to make changes in the Registration Statement
      or prospectus, or any document incorporated or deemed to be incorporated therein
      by reference, so that, in the case of the Registration Statement, it will not
      contain any untrue statement of a material fact or any omission to state a
      material fact required to be stated therein or necessary to make the statements
      therein not misleading, and that in the case of the prospectus, it will not
      contain any untrue statement of a material fact or any omission to state a
      material fact required to be stated therein, in light of the circumstances
      under
      which they were made, not misleading. 

     

    
      
         

      

      
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    5.  Indemnification.
      

     

    (a)  Subject
      to the conditions set forth below, the Company agrees to indemnify and hold
      harmless the Holders, their employees, agents, and counsel, and each person,
      if
      any, who controls any such person within the meaning of Section 15 of the
      Securities Act or Section 20(a) of the Securities and Exchange Act of 1934,
      as
      amended (the “Exchange
      Act”)
      from
      and against any and all loss, liability, charge, claim, damage, and expense
      whatsoever (which shall include, for all purposes of this Section 5, but not
      be
      limited to, attorneys’ fees and any and all reasonable expenses whatsoever
      incurred in investigating, preparing, or defending against any litigation,
      commenced or threatened, or any claim whatsoever, and any and all amounts paid
      in settlement of any claim or litigation) as and when incurred, arising out
      of,
      based upon, or in connection with (i) any untrue statement or alleged untrue
      statement of a material fact contained (A) in any registration statement,
      preliminary prospectus, or final prospectus (as from time to time amended and
      supplemented) or any amendment or supplement thereto, relating to the sale
      of
      any of the Registrable Securities or (B) in any application or other document
      or
      communication (in this Section 5 collectively called an “application”)
      executed by or on behalf of the Company or based upon written information
      furnished by or on behalf of the Company filed in any jurisdiction in order
      to
      register or qualify any of the Registrable Securities under the securities
      or
      blue sky laws thereof or filed with the SEC or any securities exchange; or
      any
      omission or alleged omission to state a material fact required to be stated
      therein or necessary to make the statements made therein not misleading, unless
      (x) such statement or omission was made in reliance upon and in conformity
      with
      written information furnished to the Company with respect to the Holder by
      or on
      behalf of the Holder expressly for inclusion in any registration statement,
      preliminary prospectus, or final prospectus, or any amendment or supplement
      thereto, or in any application, as the case may be, or (y) such loss, liability,
      charge, claim, damage or expense arises out of any Holder’s failure to comply
      with the terms and provisions of this Agreement, or (ii) any breach of any
      representation, warranty, covenant, or agreement of the Company contained in
      this Agreement. The foregoing agreement to indemnify shall be in addition to
      any
      liability the Company may otherwise have, including liabilities arising under
      this Agreement.

     

    (b)  If
      any
      action is brought against a Holder or any of its employees, agents, or counsel,
      or any controlling persons of such person (an “indemnified
      party”)
      in
      respect of which indemnity may be sought against the Company pursuant to the
      foregoing paragraph, such indemnified party or parties shall promptly notify
      the
      Company in writing of the institution of such action (but the failure so to
      notify shall not relieve the Company from any liability other than pursuant
      to
      this Section 5(a)) and the Company shall promptly assume the defense of such
      action, including the employment of counsel provided that the indemnified party
      shall have the right to employ its or their own counsel in any such case, but
      the fees and expenses of such counsel shall be at the expense of such
      indemnified party or parties unless the employment of such counsel shall have
      been authorized in writing by the Company in connection with the defense of
      such
      action or the Company shall not have promptly employed counsel reasonably
      satisfactory to such indemnified party or parties to have charge of the defense
      of such action or such indemnified party or parties shall have reasonably
      concluded that there may be one or more legal defenses available to it or them
      or to other indemnified parties which are different from or additional to those
      available to the Company, in any of which events such fees and expenses shall
      be
      borne by the Company and the Company shall not have the right to direct the
      defense of such action on behalf of the indemnified party or parties. Anything
      in this Section 5 to the contrary not withstanding, the Company shall not be
      liable for any settlement of any such claim or action effected without its
      written consent, which shall not be unreasonably withheld. The Company shall
      not, without the prior written consent of each indemnified party that is not
      released as described in this sentence, settle or compromise any action, or
      permit a default or consent to the entry of judgment in or otherwise seek to
      terminate any pending or threatened action, in respect of which indemnity may
      be
      sought hereunder (whether or not any indemnified party is a party thereto)
      unless such settlement, compromise, consent, or termination includes an
      unconditional release of each indemnified party from all liability in respect
      of
      such action. The Company agrees promptly to notify the Holders of the
      commencement of any litigation or proceedings against the Company or any of
      its
      officers or directors in connection with the sale of any Registrable Securities
      or any preliminary prospectus, prospectus, registration statement, or amendment
      or supplement thereto, or any application relating to any sale of any
      Registrable Securities.

     

    
      
         

      

      
        3

        
          

        

      

       

    

     

    (c)  The
      Holders, severally, but not jointly, agree to indemnify and hold harmless the
      Company, each director of the Company, each officer of the Company who shall
      have signed any registration statement covering Registrable Securities held
      by
      the Holders, each other person, if any, who controls the Company within the
      meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange
      Act, and its or their respective counsel, to the same extent as the foregoing
      indemnity from the Company to the Holders in Section 5(a) but only with respect
      to statements or omissions, if any, made in any registration statement,
      preliminary prospectus, or final prospectus (as from time to time amended and
      supplemented) or any amendment or supplement thereto, or in any application,
      in
      reliance upon and in conformity with written information furnished to the
      Company with respect to the Holders by or on behalf of the Holders, expressly
      for inclusion in any such registration statement, preliminary prospectus, or
      final prospectus, or any amendment or supplement thereto, or in any application,
      as the case may be. If any action shall be brought against the Company or any
      other person so indemnified based on any such registration statement,
      preliminary prospectus, or final prospectus, or any amendment or supplement
      thereto, or in any application, and in respect of which indemnity may be sought
      against the Holders pursuant to this Section 5(b), the Holders shall have the
      rights and duties given to the Company, and the Company and each other person
      so
      indemnified shall have the rights and duties given to the indemnified parties,
      by the provisions of Section 5(a) and 5(b).

    
      
         

      

      
        4

        
          

        

      

       

    

     

    (d)  To
      provide for just and equitable contribution, if (i) an indemnified party makes
      a
      claim for indemnification pursuant to Section 5(a) or 5(c) (subject to the
      limitations thereof) but it is found in a final judicial determination, not
      subject to further appeal, that such indemnification may not be enforced in
      such
      case, even though this Agreement expressly provides for indemnification in
      such
      case, or (ii) any indemnified or indemnifying party seeks contribution under
      the
      Securities Act, the Exchange Act or other wise, then the Company (including
      for
      this purpose any contribution made by or on behalf of any director of the
      Company, any officer of the Company who signed any such registration statement,
      any controlling person of the Company, and its or their respective counsel)
      as
      one entity, and the Holders (including for this purpose any contribution by
      or
      on behalf of an indemnified party) as a second entity, shall contribute to
      the
      losses, liabilities, claims, damages, and expenses whatsoever to which any
      of
      them may be subject, on the basis of relevant equitable considerations such
      as
      the relative fault of the Company and the Holders in connection with the facts
      which resulted in such losses, liabilities, claims, damages, and expenses.
      The
      relative fault, in the case of an untrue statement, alleged untrue statement,
      omission, or alleged omission shall be determined by, among other things,
      whether such statement, alleged statement, omission or alleged omission relates
      to information supplied by the Company or by the Holders, and the parties’
relative intent, knowledge, access to information, and opportunity to correct
      or
      prevent such statement, alleged statement, omission, or alleged omission. The
      Company and the Holders agree that it would be unjust and inequitable if the
      respective obligations of the Company and the Holders for contribution were
      determined by pro rata or per capita allocation of the aggregate losses,
      liabilities, claims, damages, and expenses (even if the Holders and the other
      indemnified parties were treated as one entity for such purpose) or by any
      other
      method of allocation that does not reflect the equitable considerations referred
      to in this Section 5(d). No person guilty of a fraudulent misrepresentation
      (within the meaning of Section 11(f) of the Securities Act) shall be entitled
      to
      contribution from any person who is not guilty of such fraudulent
      misrepresentation. For purposes of this Section 5(d) each person, if any, who
      controls the Holders within the meaning of Section 15 of the Securities Act
      or
      Section 20(a) of the Exchange Act and each employee, agent, and counsel of
      Holders or control person shall have the same rights to contribution as the
      Holders and each person, if any, who controls the Company within the meaning
      of
      Section 15 of the Securities Act or Section 20(a) of the Exchange Act, each
      officer of the Company who shall have signed any such registration statement,
      each director of the Company, and its or their respective counsel shall have
      the
      same rights to contribution as the Company, subject to each case to the
      provisions of this Section 5(d). Anything in this Section 5(d) to the contrary
      notwithstanding, no party shall be liable for contribution with respect to
      the
      settlement of any claim or action effected without its written consent. This
      Section 5(d) is intended to supersede any right to contribution under the
      Securities Act, the Exchange Act or otherwise.

     

    6.  Holder
      Information.
      Holder
      shall provide to the Company such information regarding its ownership of
      Registrable Securities and plan of distribution as shall be required for the
      preparation and filing of the Registration Statement, including customary
      selling stockholder questionnaires. 

     

    7.  Choice
      of Law.
      It is
      the intention of the parties that the internal laws of the State of Nevada,
      without regard to the body of law controlling conflicts of law, shall govern
      the
      validity of this Agreement, the construction of its terms and the interpretation
      of the rights and duties of the parties set forth herein.

     

    
      
         

      

      
        5

        
          

        

      

       

    

     

    8.  Assignment;
      Parties in Interest.
      This
      Agreement may be pledged, assigned or otherwise transferred by the Holder.
      

     

    9.  Amendment.
      No
      amendment, modification, waiver, discharge or termination of any provision
      of
      this Agreement nor consent to any departure by the Holder or the Company
      therefrom shall in any event be effective unless the same shall be in writing
      and signed by the party to be charged with enforcement, and then shall be
      effective only in the specific instance and for the purpose for which given.
      No
      course of dealing between the parties hereto shall operate as an amendment
      of,
      or a waiver of any right under, this Agreement.

     

    10.  Entire
      Agreement.
      This
      Agreement contains the entire understanding of the parties with respect to
      the
      subject matter hereof and supersedes all prior agreements, understandings,
      discussions and representations, oral or written, with respect to such matters,
      which the parties acknowledge have been merged into this Agreement, including,
      without limitation, any provision in any agreement between Mr. Jiada Hu and
      the
      Holders purporting to grant registration or similar rights to the
      Holders.

     

    [Signature
      Page Follows]

    
      
         

      

      
        6

        
          

        

      

       

    

    IN
      WITNESS WHEREOF, the parties have caused this Registration Rights Agreement
      to
      be duly executed and delivered by their proper and duly authorized
      representatives as of the day and year first above written.

     

    
      CONCEPT
        VENTURES CORPORATION

       

    

    
      	 	 	 	 
	By:
/s/
              Jiada Hu	 	 	
            
	
              
                

              

              Name:
                Jiada Hu

              Title:
                CEO and President

            	 	 	
            

    

     

    HOLDERS:

     

    
      	 	 	 	 
	/s/
              Cheng
              Qingbo	 	 	/s/
              Zhang
              Zhihao
	
              

              Cheng
                Qingbo

               

            	 	 	
              

              Zhang
                Zhihao

            
	
              Number
                of Registrable Securities:

              52,920
                Underlying Shares

            	 	 	
              Number
                of Registrable Securities:

              34,398
                Underlying Shares

            

    

     

    
      	 	 	 	 
	/s/
              Yang
              Yi	 	 	/s/
              Gong
              Maoquan
	
              

              
                Yang
                  Yi

              

            	 	 	
              

              
                Gong
                  Maoquan

                 

              

            
	
              
                Number
                  of Registrable Securities:

                13,230
                  Underlying Shares

              

            	 	 	
              
                Number
                  of Registrable Securities:

                7,940
                  Underlying
                  Shares

              

            

    

    
      	 	 	 	 
	 	 	 	 
	/s
              / Li
              Tie	 	 	
            
	
              

              
                
                  Li
                    Tie

                   

                

              

            	 	 	
               

            
	
              
                
                  Number
                    of Registrable Securities:

                  52,920
                    Underlying Shares

                

              

            	 	 	
               

            

    

     

    [Signature
      Page to Registration Rights Agreement]Exhibit
      10.1

    SECURITIES
      PURCHASE AGREEMENT

     

    This
      Securities Purchase Agreement (this “Agreement”)
      is
      dated as of February 16, 2007, by and among Concept Ventures Corporation, a
      Nevada corporation, and all predecessors thereto (collectively, the “Company”),
      the
      selling stockholder identified on the signature page hereto (the “Selling
      Stockholder”)
      and the
      investors identified on the signature pages hereto (each, an “Investor”
      and
      collectively, the “Investors”).

     

    WHEREAS,
      on September 6, 2006, the Company entered into a Share Exchange Agreement,
      which
      is attached to the Company’s September 11, 2006 Current Report on Form 8-K under
      the U.S. Securities Exchange Act of 1934, as amended (the “Exchange
      Agreement”),
      with
      Ritar International Group Limited, a British Virgin Islands company
      (“Ritar”),
      pursuant to which the Company will, subject to the terms and conditions thereof,
      acquire all of the equity interest of Ritar and, indirectly, all of Ritar’s
      subsidiaries, in exchange for at least 50.1% of the Common Stock on a fully
      diluted basis as of the time of the closing of the exchange under the Exchange
      Agreement and as of the Closing under this Agreement (the "Exchange").
      

     

    WHEREAS,
      the closing of the Exchange is conditioned, among other things, on the
      concurrent consummation of the financing contemplated by this
      Agreement.

     

    WHEREAS,
      subject to the terms and conditions set forth in this Agreement and pursuant
      to
      exemptions from registration under the Securities Act (as defined below), the
      Company desires to issue and sell to each Investor and the Selling Stockholder
      desires to sell to each Investor, and each Investor, severally and not jointly,
      desires to purchase from the Company and the Selling Stockholder, shares of
      the
      Company’s Common Stock, as more fully described in this 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, the Selling Stockholder 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:

     

    “2007
      Guaranteed
      ATNI” has
      the
      meaning set forth in Section 4.11.

     

    “2007
      Investor Shares” has
      the
      meaning set forth in Section 4.11.

     

    “2008
      Guaranteed
      ATNI” has
      the
      meaning set forth in Section 4.11.

     

    “2008
      Investor Shares” has
      the
      meaning set forth in Section 4.11. 

     

    “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 or
      administrative agency, regulatory authority (federal, state, county, local
      or
      foreign), 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, as such
      terms are used in and construed under Rule 144.

     

    “Business
      Day”
      means
      any day except Saturday, Sunday and any day which is a federal legal holiday
      or
      a day on which banking institutions in the State of New York, the State of
      Texas
      or the province of Guangdong in the People’s Republic of China are authorized or
      required by law or other governmental action to close.

     

    “Buy-In”
      has
      the
      meaning set forth in Section 4.1(c).

     

    “Closing”
      means
      the closing of the purchase and sale of the Securities pursuant to Article
      II.

     

    “Closing
      Date”
      means
      the Business Day on which all of the conditions set forth in Sections 5.1 and
      5.2 hereof are satisfied, or such other date as the parties may
      agree.

     

    "Closing
      Escrow Agreement"
      means
      the Closing Escrow Agreement, dated as of the date hereof, between the Company,
      the Selling Stockholder, Roth Capital Partners, LLC and the escrow agent (the
      “Escrow
      Agent”)
      identified therein, in the form of Exhibit
      C
      hereto.

     

    “Commission”
      means
      the Securities and Exchange Commission.

     

    “Common
      Stock”
      means
      the common stock of the Company, par value $0.001 per share, and any securities
      into which such common stock may hereafter be reclassified or for which it
      may
      be exchanged as a class.

     

    “Common
      Stock Equivalents”
      means
      any securities of the Company or any Subsidiary which entitle the holder thereof
      to acquire Common Stock at any time, including without limitation, any debt,
      preferred stock, rights, options, warrants or other instrument that is at any
      time convertible into or exchangeable for, or otherwise entitles the holder
      thereof to receive, Common Stock or other securities that entitle the holder
      to
      receive, directly or indirectly, Common Stock.

     

    “Company
      Counsel”
      means
      Thelen Reid Brown Raysman & Steiner LLP.

     

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

     

    “Disclosure
      Materials”
      has the
      meaning set forth in Section 3.1(h).

     

    “Effective
      Date”
      means
      the date that the Registration Statement required by Section 2(a) of the
      Registration Rights Agreement is first declared effective by the
      Commission.

     

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

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    “Exchange”
      has the
      meaning set forth in the recitals to this Agreement.

     

    “Exchange
      Act”
      means
      the Securities Exchange Act of 1934, as amended.

     

    “Exchange
      Agreement”
      has the
      meaning set forth in the recitals to this Agreement.

     

    “Exempt
      Issuance”
means
      the issuance of (a) shares of Common Stock or options to employees, officers
      or
      directors of the Company pursuant to any stock or option plan duly adopted
      by
      the Board of Directors of the Company or a majority of the members of a
      committee of directors established for such purpose, (b) securities upon the
      exercise or exchange of or conversion of any Securities issued hereunder or
      to
      any placement agents in connection with the transactions contemplated hereby
      and/or securities exercisable or exchangeable for or convertible into shares
      of
      Common Stock issued and outstanding on the date of this Agreement, provided
      that
      such securities have not been amended since the date of this Agreement to
      increase the number of such securities or to decrease the exercise, exchange
      or
      conversion price of any such securities, and (c) securities issued pursuant
      to
      acquisitions or strategic transactions, provided any such issuance shall only
      be
      to a Person which is, itself or through its subsidiaries, an operating company
      in a business synergistic with the business of the Company and in which the
      Company receives benefits in addition to the investment of funds, but shall
      not
      include a transaction in which the Company is issuing securities primarily
      for
      the purpose of raising capital or to an entity whose primary business is
      investing in securities.

     

    “GAAP”
      means
      U.S. generally accepted accounting principles.

     

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

     

    “Investment
      Amount”
      means,
      with respect to each Investor, the Investment Amount indicated on such
      Investor’s signature page to this Agreement.

     

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

     

    “Investor
      Party”
      has the
      meaning set forth in Section 4.7.

     

    “Lien”
      means
      any lien, charge, encumbrance, security interest, right of first refusal, right
      of participation or other restrictions of any kind.

     

    “Lockup
      Agreement”
      means
      collectively, the Lockup Agreements, each dated as of the Closing Date, by
      and
      between the Company and each person listed as a signatory thereto, in the form
      attached as Exhibit
      E
      hereto.

     

    “Losses”
      means
      any loss, liability, obligation, claim, contingency, damage, cost or expense,
      including all judgments, amounts paid in settlements, court costs and reasonable
      attorneys’ fees and costs of investigation related thereto.

     

    “Make
      Good Escrow Agreement” means
      the
      Make Good Escrow Agreement, dated as of the date hereof, among the Company,
      Roth
      Capital Partners, LLC, as agent, the escrow agent (the “Make
      Good Escrow Agent”)
      identified therein and Mr. Jiada Hu, in the form of Exhibit
      D
      hereto.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    “Make
      Good Pledgor” means
      Mr.
      Jiada Hu.

     

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

     

    “New
      York Courts”
      means
      the state and federal courts sitting in the City of New York, Borough of
      Manhattan.

     

    “Outside
      Date”
      means
      the sixtieth day following the date of this Agreement.

     

    “Per
      Unit Purchase Price”
      equals
      $2.14.

     

    “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.

     

    “Proceeding”
      means an
      action, claim, suit, investigation or proceeding (including, without limitation,
      an investigation or partial proceeding, such as a deposition), whether commenced
      or threatened.

     

    “Registration
      Rights Agreement”
      means
      the Registration Rights Agreement, dated as of the date of this Agreement,
      among
      the Company and the Investors, in the form of Exhibit
      A
      hereto.

     

    “Registration
      Statement”
      means a
      registration statement meeting the requirements set forth in the Registration
      Rights Agreement and covering the resale by the Investors of the
      Securities.

     

    “Ritar”
      has the
      meaning set forth in the recitals to this Agreement.

     

    “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.

     

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

     

    “Securities”
      means
      the Shares, the Selling Stockholder Shares, the Warrants and the Warrant
      Shares.

     

    “Securities
      Act”
      means
      the Securities Act of 1933, as amended.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    “Selling
      Stockholder Shares”
      means
      the shares of Common Stock being offered and sold by the Selling Stockholder
      to
      the Investors hereunder in such number as is set forth below the Selling
      Stockholder’s signature to this Agreement.

     

    “Share
      Delivery Date”
      has the
      meaning set forth in Section 4.1(c).

     

    “Shares”
      means
      the shares of Common Stock being offered and sold to the Investors by the
      Company hereunder.

     

    “Short
      Sales”
      include,
      without limitation, 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
      any “significant subsidiary” as defined in Rule 1-02(w) of the Regulation S-X
      promulgated by the Commission under the Exchange Act.

     

    “Trading
      Day”
      means
      (i) a day on which the Common Stock is traded on a Trading Market (other than
      the OTC Bulletin Board), or (ii) if the Common Stock is not listed on a Trading
      Market (other than the OTC Bulletin Board), a day on which the Common Stock
      is
      traded in the over-the-counter market, as reported by the OTC Bulletin Board,
      or
      (iii) 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), (ii) and (iii) hereof, then
      Trading Day shall mean a Business Day.

     

    “Trading
      Market”
      means
      whichever of the New York Stock Exchange, the American Stock Exchange, the
      NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market
      or OTC Bulletin Board on which the Common Stock is listed or quoted for trading
      on the date in question.

     

    “Transaction
      Documents”
      means
      this Agreement, the Registration Rights Agreement, the Warrants, the Lockup
      Agreements, the Closing Escrow Agreement, the Make Good Escrow Agreement and
      any
      other documents or agreements executed in connection with the transactions
      contemplated hereunder.

     

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

     

    “Warrant
      Shares” means
      the
      shares of Common Stock issuable upon exercise of the Warrants.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    ARTICLE
      2.

    PURCHASE
      AND SALE

     

    2.1. Closing.
      

     

    (a) Subject
      to the terms and conditions set forth in this Agreement, at the Closing: (i)
      the
      Company shall issue and sell to each Investor, and each Investor shall,
      severally and not jointly, purchase from the Company, Shares in such number
      as
      equals the quotient (rounded down to the nearest whole share) obtained by
      dividing (1) 86.88% of such Investor’s Investment Amount by (2) the Per Unit
      Purchase Price; and (ii) the Selling Stockholder shall sell to each Investor,
      and each Investor shall, severally and not jointly, purchase from the Selling
      Stockholder, Selling Stockholder Shares in such number as equals the quotient
      (rounded down to the nearest whole share) obtained by dividing (1) 13.12% of
      such Investor’s Investment Amount by (2) the Per Unit Purchase Price. The
      Closing shall take place at the offices of Bryan Cave LLP, 1290 Avenue of the
      Americas, New York, NY 10104 or at such other location as the parties may
      agree.

     

    (b) The
      Company and the Selling Stockholder will cooperate with one another, and will
      cause the Selling Stockholder Shares to be issued to the Investors at Closing
      as
      part of a single stock certificate from the Company to each Investor that will
      include all Shares and Selling Stockholder Shares being acquired by such
      Investor under this Agreement. In furtherance thereof, the Selling Stockholder
      hereby (i) instructs the Company to retain and cause to be delivered to the
      Investors at Closing in accordance with Section 2.2 such number of shares of
      Common Stock otherwise deliverable to the Selling Stockholder under the Exchange
      Agreement as equals the total number of Selling Stockholder Shares subject
      to
      sale to Investors hereunder, and (ii) agrees to deliver to the Company such
      documents (including legal opinions) as the Company may require to effect the
      transfer of such shares to the name of the Investors at the Closing, including
      executed stock powers.

     

    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
      single
      certificate representing that number of aggregate Shares and Selling Stockholder
      Shares to be issued and sold at Closing to such Investor, determined under
      Section 2.1(a), registered in the name of such Investor;

     

    (ii) a
      Warrant, registered in the name of such Investor, pursuant to which such
      Investor shall have the right to acquire the number of shares of Common Stock
      equal to 20% of the number of Shares and Selling Stockholder Shares issuable
      to
      such Investor pursuant to Section 2.2(a)(i), at an exercise price per share
      that
      is equal to 130% of the Per Unit Purchase Price;

     

    (iii) the
      Closing Escrow Agreement, duly executed by all parties thereto;

     

    (iv) the
      Make
      Good Escrow Agreement, duly executed by all parties thereto;

     

    
      
        
        

      

      
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    (v) the
      legal
      opinion of Company Counsel, in agreed form, addressed to the Investors;

     

    (vi) the
      Registration Rights Agreement, duly executed by the Company; and

     

    (vii) the
      Lockup Agreements, duly executed by each party thereto.

     

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

     

    (i) to
      the
      Escrow Agent (or
      as
      otherwise instructed by the Company in the case of Investors who are based
      in
      the People’s Republic of China),
      for
      deposit and disbursement in accordance with the Closing Escrow Agreement and
      the
      Flow of Funds Memorandum attached as an exhibit thereto (or as otherwise
      instructed by the Company in the case of Investors who are based in the People’s
      Republic of China), its Investment Amount, in immediately available funds,
      by
      wire transfer to an account designated in writing by the Company for such
      purpose; and

     

    (ii) to
      the
      Company, the Registration Rights Agreement, duly executed by such
      Investor.

     

    2.3. Interim
      Closings. The Company shall have the ability to effectuate interim Closings
      under this Agreement, provided, that the minimum amount upon which the Company
      may effectuate any Closing shall be $8,000,000.

     

    ARTICLE
      3.

    REPRESENTATIONS
      AND WARRANTIES

     

    3.1. Representations
      and Warranties of the Company.
      The
      Company hereby makes the following representations
      and warranties
      to each
      Investor with the intention and understanding that, as to matters pertaining
      to
      Ritar and its subsidiaries and the Exchange, such representations and warranties
      are made as of the Closing Date and assuming that the Exchange shall have been
      consummated immediately prior to the Closing:

     

    (a) Subsidiaries.
      The
      Company has no direct or indirect Subsidiaries other than as specified in the
      Schedule
      3.1(a).
      Except
      as disclosed in Schedule
      3.1(a),
      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, non-assessable and free of preemptive and similar rights. As
      of
      the Closing, the Company shall own 100% of the capital stock of Ritar in
      accordance with the Exchange Agreement, free and clear of all Liens. The term
      “Subsidiaries” shall be deemed to include Ritar
      and its
      subsidiaries as if the Exchange shall have been consummated as of the time
      of
      the execution of this Agreement, with the effect that all references to
      Subsidiaries of the Company in this Agreement shall also refer to Ritar and
      its
      subsidiaries. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    (b) Organization
      and Qualification.
      The
      Company and each Subsidiary are 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. Neither the Company nor any Subsidiary is in violation
      of any of the provisions of its respective certificate or articles of
      incorporation, bylaws or other organizational or charter documents. The Company
      and each Subsidiary are duly qualified to conduct its respective businesses
      and
      are 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.

     

    (c) Authorization;
      Enforcement.
      The
      Company has the requisite corporate power and authority to enter into and to
      consummate the transactions contemplated by each of the Transaction Documents
      and otherwise to carry out its obligations thereunder. The execution and
      delivery of each of the Transaction Documents by the Company and the
      consummation by it 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 therewith. 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
      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.

     

    (d) No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company
      and the consummation by the Company of the transactions contemplated thereby
      and
      the sale of the Selling Stockholder Shares hereunder do not and will not (i)
      conflict with or violate any provision of the Company’s or any Subsidiary’s
      certificate or articles of incorporation, bylaws or other organizational or
      charter documents, 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 a Company or Subsidiary debt
      or
      otherwise) or other understanding to which the Company or any Subsidiary is
      a
      party or by which any property or asset of the Company or any Subsidiary is
      bound or affected, or (iii) result in a violation of any law, 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 the Company or a Subsidiary 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.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    (e) Filings,
      Consents and Approvals.
      The
      Company is not required to obtain any consent, waiver, authorization or order
      of, give any notice to, or make any filing or registration with, any United
      States or People’s Republic of China court or other federal, state, local or
      other governmental authority or other Person in connection with the execution,
      delivery and performance by the Company of the Transaction Documents or by
      reason of the sale of the Selling Stockholder Shares hereunder, other than
      (i)
      the filing with the Commission of one or more Registration Statements in
      accordance with the requirements of the Registration Rights 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 4.5 and (v) those
      that
      have been made or obtained prior to the date of this Agreement. To the knowledge
      of the Company, the Selling Stockholder is not required to obtain any consent,
      waiver, authorization or order of, give any notice to, or make any filing or
      registration with, any United States or People’s Republic of China court or
      other federal, state, local or other governmental authority or any other Person
      in connection with the execution, delivery and performance by them of the
      Transaction Documents or by reason of the sale of the Selling Stockholder Shares
      hereunder.

     

    (f) Issuance
      of the Shares.
      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 Company has reserved from its
      duly authorized capital stock the shares of Common Stock issuable pursuant
      to
      this Agreement and the Warrants in order to issue the Shares and the Warrant
      Shares. When issued, the Selling Stockholder Shares were duly authorized and
      were validly issued, fully paid and nonassessable. The Selling Stockholder
      is
      the sole record owner of the Selling Stockholder Shares to be sold
      hereunder.

     

    (g) Capitalization.
      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 in the SEC
      Reports. Except as specified in the SEC Reports, 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 in the SEC Reports, 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. The issue and sale of the Securities
      hereunder 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 Investors) and will not result in a right of any holder of Company
      securities to adjust the exercise, conversion, exchange or reset price under
      such securities.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    (h) SEC
      Reports; Financial Statements.
      To the
      knowledge of the Company, 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), including, for this purpose, the current report on Form 8-K that
      is
      being filed by the Company on or about the date hereof to disclose the
      transactions contemplated hereby and by the Exchange Agreement (the foregoing
      materials being collectively referred to herein as the “SEC
      Reports”
      and,
      together with the Schedules to this Agreement (if any), the “Disclosure
      Materials”)
      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.
      As
      of their respective dates, the SEC Reports complied 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 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 GAAP applied on a consistent basis during the
      periods involved, except as may be otherwise specified in such financial
      statements or the notes thereto, 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. The Ritar Financial Statements 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. The Ritar Financial Statements have been prepared in accordance with
      GAAP applied on a consistent basis during the periods involved, except as may
      be
      otherwise specified in such financial statements or the notes thereto, and
      fairly present in all material respects the financial position of Ritar 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.

     

    (i) Press
      Releases.
      The
      press releases disseminated by the Company during the twelve months preceding
      the date of this Agreement taken as a whole do not contain any untrue statement
      of a material fact or omit 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 and when made, not
      misleading.

     

    (j) Material
      Changes.
      Since
      the date of the latest audited financial statements included within the SEC
      Reports, except as specifically disclosed in the SEC Reports and except as
      arising as a result of the transactions contemplated by the Transaction
      Documents, including, as a result of the acquisition of Ritar, (i) there has
      been no event, occurrence or development that has had or that could reasonably
      be expected to result in a Material Adverse Effect, (ii) the Company has not
      incurred any liabilities (contingent or otherwise) 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 GAAP or required to
      be disclosed in filings made with the Commission, (iii) the Company has not
      altered its method of accounting or the identity of its auditors, (iv) the
      Company has not declared or made any dividend or distribution of cash or other
      property to its stockholders or purchased, redeemed or made any agreements
      to
      purchase or redeem any shares of its capital stock, and (v) the Company has
      not
      issued any equity securities to any officer, director or Affiliate, except
      pursuant to existing Company stock option plans. The Company does not have
      pending before the Commission any request for confidential treatment of
      information.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    (k) Litigation.
      There
      is no Action which (i) adversely affects or challenges the legality, validity
      or
      enforceability of any of the Transaction Documents or the Shares or (ii) except
      as specifically disclosed in the SEC Reports, 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 Company nor any
      Subsidiary, 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 specifically disclosed in the SEC Reports. There
      has
      not been, and to the knowledge of the Company, there is not pending any
      investigation by the Commission involving the Company or any current or former
      director or officer of the Company (in his or her capacity as such). The
      Commission has not issued any stop order or other order suspending the
      effectiveness of any registration statement filed by the Company or any
      Subsidiary under the Exchange Act or the Securities Act.

     

    (l) Labor
      Relations.
      No
      material labor dispute exists or, to the knowledge of the Company, is imminent
      with respect to any of the employees of the Company.

     

    (m) Compliance.
      Neither
      the Company nor any Subsidiary (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 the Company or any Subsidiary under),
      nor has the Company or any Subsidiary 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 without
      limitation all foreign, 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 as could not,
      individually or in the aggregate, have or reasonably be expected to result
      in a
      Material Adverse Effect. The Exchange Agreement complies with all applicable
      laws, rules and regulations of the United States and the People’s Republic of
      China. The Company is in compliance with all effective requirements of the
      Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations
      thereunder, that are applicable to it, except where such noncompliance could
      not
      have or reasonably be expected to result in a Material Adverse
      Effect.

     

    (n) Regulatory
      Permits.
      The
      Company and the Subsidiaries possess all certificates, authorizations and
      permits issued by the appropriate federal, state, local or foreign regulatory
      authorities necessary to conduct their respective businesses as described in
      the
      SEC Reports, 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 neither the Company nor any Subsidiary has received
      any notice of proceedings relating to the revocation or modification of any
      such
      permits.

     

    
      
        
        

      

      
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    (o) Title
      to Assets.
      The
      Company and the Subsidiaries have valid land use rights for all real property
      owned by them 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 Company and the Subsidiaries. Any real property and facilities held
      under
      lease by the Company and the Subsidiaries are held by them under valid,
      subsisting and enforceable leases of which the Company and the Subsidiaries
      are
      in compliance, except as could not, individually or in the aggregate, have
      or
      reasonably be expected to result in a Material Adverse Effect.

     

    (p) Patents
      and Trademarks.
      The
      Company and the Subsidiaries have, or have rights to use, all patents, patent
      applications, trademarks, trademark applications, service marks, trade names,
      copyrights, licenses and other similar rights that are necessary or material
      for
      use in connection with their respective businesses as described in the SEC
      Reports 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
      (collectively, the “Intellectual
      Property Rights”).
      Neither the Company nor any Subsidiary has received a written notice that the
      Intellectual Property Rights used by the Company or any Subsidiary violates
      or
      infringes upon the rights of any Person. Except as set forth in the SEC Reports,
      to the knowledge of the Company, all such Intellectual Property Rights are
      enforceable and there is no existing infringement by another Person of any
      of
      the Intellectual Property Rights.

     

    (q) Insurance.
      The
      Company and the Subsidiaries are insured by insurers of recognized financial
      responsibility against such losses and risks and in such amounts as are prudent
      and customary in the businesses in which the Company and the Subsidiaries are
      engaged. The Company has no reason to believe that it will not be able to renew
      its and the Subsidiaries’ existing insurance coverage as and when such coverage
      expires or to obtain similar coverage from similar insurers as may be necessary
      to continue its business on terms consistent with market for the Company’s and
      such Subsidiaries’ respective lines of business.

     

    (r) Transactions
      With Affiliates and Employees.
      Except
      as set forth in the SEC Reports, none of the officers or directors of the
      Company and, to the knowledge of the Company, none of the employees of the
      Company is presently a party to any transaction with the Company or any
      Subsidiary (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 officer,
      director or such employee or, to the knowledge of the Company, any entity in
      which any officer, director, or any such employee has a substantial interest
      or
      is an officer, director, trustee or partner.

     

    (s) Internal
      Accounting Controls.
      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 GAAP 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 Form 10-KSB or
      10-QSB, as the case may be, is being prepared. The Company’s certifying officers
      have evaluated the effectiveness of the Company’s controls and procedures in
      accordance with Item 307 of Regulation S-B under the Exchange Act for the
      Company’s most recently ended fiscal quarter or fiscal year-end (such date, the
“Evaluation
      Date”).
      The
      Company presented in its most recently filed Form 10-KSB or Form 10-QSB 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 308(c) of
      Regulation S-B under the Exchange Act) or, to the Company’s knowledge, in other
      factors that could significantly affect the Company’s internal
      controls.

     

    
      
        
        

      

      
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    (t) Solvency.
      Based
      on the financial condition of the Company as of the Closing Date (and assuming
      that the Closing shall have occurred), (i) the Company’s fair saleable value of
      its assets exceeds the amount that will be required to be paid on or in respect
      of the Company’s existing debts and other liabilities (including known
      contingent liabilities) as they mature, (ii) the Company’s assets do not
      constitute unreasonably small capital to carry on its business for the current
      fiscal year as now conducted and as proposed to be conducted including its
      capital needs taking into account the particular capital requirements of the
      business conducted by the Company, and projected capital requirements and
      capital availability thereof, and (iii) the current cash flow of the Company,
      together with the proceeds the Company would receive, were it to liquidate
      all
      of its assets, after taking into account all anticipated uses of the cash,
      would
      be sufficient to pay all amounts on or in respect of its debt when such amounts
      are required to be paid. The Company does not intend to incur debts beyond
      its
      ability to pay such debts as they mature (taking into account the timing and
      amounts of cash to be payable on or in respect of its debt).

     

    (u) Certain
      Fees.
      Except
      as described in Schedule
      3.1(u),
      no
      brokerage or finder’s fees or commissions are or will be payable by the Company
      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 that may be due in connection with the transactions contemplated
      by this Agreement.

     

    (v) Certain
      Registration Matters.
      Assuming the accuracy of the Investors’ representations and warranties set forth
      in Section 3.2(b)-(e), no registration under the Securities Act is required
      for
      the offer and sale of the Shares and Warrants and the offer of the Warrant
      Shares by the Company and the Selling Stockholder Shares (as applicable) by
      the
      Selling Stockholder to the Investors under the Transaction Documents. The
      Company is eligible to register its Common Stock for resale by the Investors
      under Form S-1 promulgated under the Securities Act. Except as specified in
      Schedule
      3.1(v),
      the
      Company has not granted or agreed to grant to any Person any rights (including
      “piggy-back” registration rights) to have any securities of the Company
      registered with the Commission or any other governmental authority that have
      not
      been satisfied.

     

    
      
        
        

      

      
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    (w) Listing
      and Maintenance Requirements.
      Except
      as specified in the SEC Reports, the Company has not, in the two years preceding
      the date hereof, received notice from any Trading Market to the effect that
      the
      Company is not in compliance with the listing or maintenance requirements
      thereof. The Company is, and has no reason to believe that it will not in the
      foreseeable future continue to be, in compliance with the listing and
      maintenance requirements for continued listing of the Common Stock on the
      Trading Market on which the Common Stock is currently listed or quoted. The
      issuance and sale of the Shares under the Transaction Documents does not
      contravene the rules and regulations of the Trading Market on which the Common
      Stock is currently listed or quoted, and no approval of the stockholders of
      the
      Company thereunder is required for the Company to issue and deliver to the
      Investors the Shares contemplated by the Transaction Documents.

     

    (x) Investment
      Company.
      The
      Company is not, and is not an Affiliate of, and immediately following the
      Closing will not have become, an “investment company” within the meaning of the
      Investment Company Act of 1940, as amended.

     

    (y) Application
      of Takeover Protections.
      The
      Company has taken all necessary action, if any, in order to render inapplicable
      any control share acquisition, business combination, poison pill (including
      any
      distribution under a rights agreement) or other similar anti-takeover provision
      under the Company’s Articles of Incorporation (or similar charter documents) or
      the laws of its state of incorporation that is or could become applicable to
      the
      Investors as a result of the Investors and the Company fulfilling their
      obligations or exercising their rights under the Transaction Documents,
      including without limitation the Company’s issuance of the Shares and the
      Investors’ ownership of the Securities.

     

    (z) No
      Additional Agreements.
      The
      Company does not have 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.

     

    (aa) Consultation
      with Auditors.
      The
      Company has consulted its independent auditors concerning the accounting
      treatment of the transactions contemplated by the Transaction Documents, and
      in
      connection therewith has furnished such auditors complete copies of the
      Transaction Documents.

     

    (bb) Make
      Good Shares.
      Make
      Good Pledgor is the sole record and beneficial owner of the 2007
      Investor Shares
      and
2008
      Investor Shares,
      and to
      the knowledge of the Company holds such shares free and clear of all
      Liens.

     

    (cc) Company
      Policies.
      The
      sale of the Selling Stockholder Shares by the Selling Stockholder does not
      violate any policies or procedures established by the Company.

     

    
      
        
        

      

      
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    (dd) Disclosure.
      The
      Company confirms that neither it nor any Person acting on its behalf has
      provided any Investor or its respective agents or counsel with any information
      that the Company believes constitutes material, non-public information
      concerning the Company, the Subsidiaries or their respective businesses, except
      insofar as the existence and terms of the proposed transactions contemplated
      hereunder may constitute such 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. To the knowledge of the
      Company, the representations and warranties of the Selling Stockholder are
      true
      and correct in all material respects. Except as specified below, all disclosure
      provided to the Investors regarding the Company, the Subsidiaries or their
      respective businesses and the transactions contemplated hereby, furnished by
      or
      on behalf of the Company (including the Company’s representations and warranties
      set forth in this Agreement) are true and correct 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. Notwithstanding the foregoing, any draft
      of the Registration Statement to be filed on Form S-1 in connection with the
      transactions contemplated hereby that was provided to the Investors prior to
      the
      date hereof was incomplete in the form distributed, and such Investor is not
      relying on such draft on Form S-1 in making its decision to enter into the
      transactions contemplated hereby.

     

    Each
      Investor acknowledges and agrees that the Company has not made nor makes any
      representations or warranties with respect to the transactions contemplated
      hereby other than those specifically set forth in this Section 3.1.

     

    3.2. Representations
      and Warranties of the Investors.
      Each
      Investor hereby, for itself and for no other Investor, represents and warrants
      to the Company and the Selling Stockholder as follows:

     

    (a) Organization;
      Authority.
      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 of this Agreement and the
      Registration Rights Agreement 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 to or for distributing or reselling
      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.

     

    
      
        
        

      

      
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    (c) Investor
      Status.
      At the
      time such Investor was offered the Securities, it was, and at the date hereof
      it
      is, an “accredited investor” as defined in Rule 501(a) under the Securities Act.
      Such Investor is not a registered broker-dealer under Section 15 of the Exchange
      Act.

     

    (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
      or
      presented at any seminar or any other general solicitation or general
      advertisement.

     

    (e) Access
      to Information.
      Such
      Investor acknowledges that it has reviewed 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
      truth, accuracy and completeness of the Disclosure Materials and the Company’s
      representations and warranties contained in the Transaction Documents. Such
      Investor acknowledges that notwithstanding the foregoing, any draft of the
      Registration Statement to be filed on Form S-1 in connection with the
      transactions contemplated hereby that was provided to such Investor prior to
      the
      date hereof was incomplete in the form distributed, and such Investor is not
      relying on such draft on Form S-1 in making its decision to enter into the
      transactions contemplated hereby.

     

    (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, without limitations, any Short
      Sales involving the Company’s securities) since the earlier to occur of (1) the
      time that such Investor was first contacted by the Company or Roth Capital
      Partners, LLC regarding an investment in the Company and (2) the 30th
      day
      prior to the date of this Agreement. Such Investor covenants that 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.

     

    
      
        
        

      

      
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    (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 Roth Capital Partners, LLC 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.

     

    The
      Company acknowledges and agrees that no Investor has made or makes any
      representations or warranties with respect to the transactions contemplated
      hereby other than those specifically set forth in this Section 3.2.

     

    3.3. Representations
      and Warranties of the Selling Stockholder. The Selling Stockholder hereby
      makes the following representations and warranties to each
      Investor:

     

    (a) Enforcement.
      This
      Agreement has been duly executed and delivered by the Selling Stockholder and
      constitutes the valid and binding obligation of the Selling Stockholder,
      enforceable against him 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) No
      Consents.
      No
      consent, approval, authorization or order of, or any filing or declaration
      with,
      any United States or People’s Republic of China court or governmental agency or
      body or other Person is required in connection with the consummation by the
      Selling Stockholder of the transactions on its part contemplated by the
      Transaction Documents, except (i) filings as may be required under Sections
      13(d) and 16(a) of the Exchange Act, and (ii) those that have been made or
      obtained prior to the date of this Agreement.

     

    (c) No
      Conflicts.
      The
      execution, delivery and performance by the Selling Stockholder of the
      Transaction Documents to which it is a party and the consummation of the
      transactions contemplated thereby do not and will not result in a breach or
      violation of, or constitute a default under (with or without notice or lapse
      of
      time), any stockholders agreement, voting trust agreement, pledge, registration
      rights agreement or other agreement or instrument to which the Selling
      Stockholder or any of his properties are bound or affected, and will not violate
      or conflict with any judgment, decree or order of any United States or People’s
      Republic of China court or other governmental agency or any law, rule or
      regulation applicable to the Selling Stockholder, in each case such as could
      not
      have or result in a Material Adverse Effect.

     

    (d) Certain
      Registration Matters.
      Assuming the accuracy of the Investors’ representations and warranties set forth
      in Sections 3.2(b)-(d), no registration under the Securities Act is required
      for
      the purchase and sale of the Selling Stockholder Shares to the Investors
      hereunder.

     

    (e) Good
      and Marketable Title.
      The
      Selling Stockholder is the sole lawful record and sole beneficial owner of
      all
      of the Selling Stockholder Shares to be sold by it hereunder. The Selling
      Stockholder has good and marketable title to the Selling Stockholder Shares
      to
      be sold by it hereunder, free and clear of any Liens, except for restrictions
      on
      subsequent transfer imposed by United States securities laws. Upon consummation
      of the Closing, the Investors will have good and marketable title to the Selling
      Stockholder Shares purchased by them, free and clear of all Liens created by
      or
      through the Selling Stockholder.

     

    
      
        
        

      

      
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    (f) Certain
      Fees.
      Except
      as described in Schedule
      3.3(f),
      no
      brokerage or finder's fees or commissions are or will be payable by the Selling
      Stockholder 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 that may be due in connection with the transactions contemplated
      by this Agreement. 

     

    (g) No
      Additional Agreements.
      The
      Selling Stockholder does not have any agreement or understanding with any
      Investor or with the Company with respect to the transactions contemplated
      by
      the Transaction Documents other than as specified in the Transaction
      Documents.

     

    (h) Company
      Policies.
      The
      sale of the Selling Stockholder Shares by the Selling Stockholder does not
      violate any policies or procedures established by the Company.

     

    ARTICLE
      4.

    OTHER
      AGREEMENTS OF THE PARTIES

     

    4.1. (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, 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 form and substance of which opinion
      shall be reasonably satisfactory to the Company, to the effect that such
      transfer does not require registration of such transferred Securities under
      the
      Securities Act.

     

    (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 SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES
      HAVE BEEN REGISTERED] [THESE SECURITIES HAVE NOT 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, MAY NOT 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 AND THE SECURITIES ISSUABLE UPON
      EXERCISE OF THESE SECURITIES] [THESE SECURITIES] MAY BE PLEDGED IN CONNECTION
      WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES.

     

    
      
        
        

      

      
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    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 Shares, Selling Stockholder Shares and Warrant Shares shall not
      contain any legend (including the legend set forth in Section 4.1(b)): (i)
      following a sale or transfer of such Shares, Selling Stockholder Shares or
      Warrant Shares pursuant to an effective registration statement (including a
      Registration Statement), or (ii) following a sale or transfer of such Shares,
      Selling Stockholder Shares or Warrant Shares pursuant to Rule 144 (assuming
      the
      transferee is not an Affiliate of the Company), or (iii) while such Shares,
      Selling Stockholder Shares or Warrant Shares are eligible for sale under Rule
      144(k). If an Investor shall make a sale or transfer of Shares, Selling
      Stockholder Shares or Warrant Shares either (x) pursuant to Rule 144 or (y)
      pursuant to a registration statement and in each case shall have delivered
      to
      the Company or the Company’s transfer agent the certificate representing Shares,
      Selling Stockholder Shares or Warrant Shares containing a restrictive legend
      which are the subject of such sale or transfer
      and a representation letter in customary form (the
      date of
      such sale or transfer and Shares, Selling Stockholder Shares or Warrant Shares
      delivery being the “Share
      Delivery Date”)
      and (1)
      the Company shall fail to deliver or cause to be delivered to such Investor
      a
      certificate representing such Shares, Selling Stockholder Shares or Warrant
      Shares that is free from all restrictive or other legends by the third Trading
      Day following the Share Delivery Date and (2) following such third Trading
      Day
      after the Share Delivery Date and prior to the time such Shares, Selling
      Stockholder Shares or Warrant Shares are received free from restrictive legends,
      the Investor, or any third party on behalf of such Investor, purchases (in
      an
      open market transaction or otherwise) shares of Common Stock to deliver in
      satisfaction of a sale by the Investor of such Shares, Selling Stockholder
      Shares or Warrant Shares (a "Buy-In"),
      then
      the Company shall pay in cash to the Investor (for costs incurred either
      directly by such Investor or on behalf of a third party) the amount by which
      the
      total purchase price paid for Common Stock as a result of the Buy-In (including
      brokerage commissions, if any) exceed the proceeds received by such Investor
      as
      a result of the sale to which such Buy-In relates. The Investor shall provide
      the Company written notice indicating the amounts payable to the Investor in
      respect of the Buy-In.

     

    
      
        
        

      

      
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    4.2. Furnishing
      of Information.
      As long
      as any Investor owns the Securities, the Company covenants to timely file (or
      obtain extensions in respect thereof and file within the applicable grace
      period) all reports required to be filed by the Company after the date hereof
      pursuant to the Exchange Act. As long as any Investor owns Securities, if the
      Company is not required to file reports pursuant to such laws, it will prepare
      and furnish to the Investors and make publicly available in accordance with
      Rule
      144(c) such information as is required for the Investors to sell the Securities
      under Rule 144. The Company further covenants that it will take such further
      action as any holder of Securities may reasonably request, all to the extent
      required from time to time to enable such Person to sell the Securities without
      registration under the Securities Act within the limitation of the exemptions
      provided by Rule 144.

     

    4.3. 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.

     

    4.4. Subsequent
      Registrations.
      Other
      than pursuant to the Registration Statement, prior to the Effective Date, the
      Company may not file any registration statement (other than on Form S-8) with
      the Commission with respect to any securities of the Company.

     

    4.5. Securities
      Laws Disclosure; Publicity.
      By 9:00
      a.m. (New York time) on the fourth
      Trading
      Day following the execution of this Agreement, and by 9:00 a.m. (New York time)
      on the fourth Trading Day following any Closing Date, the Company shall issue
      press releases disclosing the transactions contemplated hereby and such Closing.
      On the fourth Trading Day following the execution of this Agreement the Company
      will file a Current Report on Form 8-K disclosing the material terms of the
      Transaction Documents (and attach as exhibits thereto the Transaction
      Documents), and on the fourth Trading Day following any Closing Date the Company
      will file an additional Current Report on Form 8-K to disclose such Closing.
      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
      may be 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 upon which the Common Stock may be listed, without the prior
      written consent of such Investor, except to the extent such disclosure is
      required by law or applicable Trading Market regulations.

     

    
      
        
        

      

      
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    4.6. Limitation
      on Issuance of Future Priced Securities.
      During
      the six months following the Closing Date, the Company shall not issue any
      “Future Priced Securities” as such term is described by NASD
      IM-4350-1.

     

    4.7. Indemnification
      of Investors. In addition to the indemnity provided in the Registration Rights
      Agreement, the Company and the Selling Stockholder hereby agree to the following
      indemnification of the Investors:

     

    (a) The
      Company will indemnify and hold the Investors and their respective directors,
      officers, shareholders, partners, employees and agents (each, an "Investor
      Party")
      harmless from any and all Losses that any such Investor 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 the Company
      in
      any Transaction Document. In addition to the indemnity contained herein, the
      Company will reimburse each Investor 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. 

     

    (b) The
      Selling Stockholder will indemnify and hold each of the Company and each
      Investor Party harmless from any and all Losses that the Company or any such
      Investor 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 the Selling Stockholder in any Transaction
      Document. In addition, the Selling Stockholder will reimburse each of the
      Company and each Investor 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.

     

    (c) Except
      as
      otherwise set forth herein, the mechanics and procedures with respect to the
      rights and obligations under this Section 4.7 shall be the same as those set
      forth in Section 5 of the Registration Rights Agreement.

     

    4.8. Non-Public
      Information.
      Each of
      the Company and the Selling Stockholder covenant and agree that neither they
      nor
      any other Person acting on their behalf will provide any Investor or its agents
      or counsel with any information that the Company believes constitutes material
      non-public information, unless prior thereto such Investor shall have executed
      a
      written agreement regarding the confidentiality and use of such information.
      Each of the Company and the Selling Stockholder understand and confirm that
      each
      Investor shall be relying on the foregoing representations in effecting
      transactions in securities of the Company.

     

    
      
        
        

      

      
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    4.9. Listing
      of Securities.
      The
      Company agrees, (i) if the Company applies to have the Common Stock traded
      on
      any other Trading Market, it will include in such application the Securities,
      and will take such other action as is necessary or desirable to cause the
      Securities to be listed on such other Trading Market as promptly as possible,
      and (ii) it will take all action reasonably necessary to continue the listing
      and trading of its Common Stock on a Trading Market and will comply in all
      material respects with the Company’s reporting, filing and other obligations
      under the bylaws or rules of the Trading Market.

     

    4.10. Use
      of
      Proceeds.
      The
      Company will use the net proceeds from the sale of the Shares and Warrants
      hereunder for working capital purposes and not for the satisfaction of any
      portion of the Company’s debt (other than payment of trade payables and accrued
      expenses in the ordinary course of the Company’s business and consistent with
      prior practices), or to redeem any Common Stock or Common Stock
      Equivalents.

     

    4.11. Make
      Good Shares. 

     

    (a) The
      Make
      Good Pledgor agrees that if the Company’s after tax net income reported in the
      Company’s Annual Report on Form 10-K for the fiscal year ending December 31,
      2007, as filed with the Commission (the “2007
      Annual Report”)
      is less
      than $5,678,000 (the “2007
      Guaranteed ATNI”),
      the
      Make
      Good Pledgor will transfer to each Investor for no additional consideration
      a
      number of shares of Common Stock equal to:

     

    (such
      Investor’s Investment Amount / (7.144 x (2.14 / ($40,562,110 / actual After-Tax
      Net Income reported in the 2007 Annual Report)))) - the number of Shares issued
      in the transaction to such Investor

     

    (the
      “2007
      Investor Shares”).
      Should
      the preceding formula yield a number equal to or less than zero, no transfer
      of
      2007 Make Good Shares (as defined in the Make Good Escrow Agreement) shall
      be
      made to Investors. In no event shall the failure by the Company to achieve
      the
      2007 Guaranteed ATNI result in the delivery by the Make Good Pledgor to the
      Investors of a number of shares that is in excess of the number of 2007 Make
      Good Shares pledged under the Make Good Escrow Agreement. If the 2007 Annual
      Report indicates that the Company shall have satisfied the 2007 Guaranteed
      ATNI test specified above for such period, then no transfer to Investors of
      2007
      Make Good Shares shall be required by this Section and all 2007 Make Good Shares
      deposited with the Make Good Escrow Agent shall be returned to the Make Good
      Pledgor in accordance with the Make Good Escrow Agreement. Transfers of 2007
      Investor Shares required under this Section shall be made to Investors within
      7
      Business Days after the date which the Company’s 2007 Annual Report is filed
      with the Commission and otherwise in accordance with the Make Good Escrow
      Agreement.

     

    (b) The
      Make
      Good Pledgor agrees that if the Company’s after tax net income reported in the
      Company’s Annual Report on Form 10-K for the fiscal year ending December 31,
      2008, as filed with the Commission (the “2008
      Annual Report”)
      is less
      than $8,200,000 (the “2008
      Guaranteed ATNI”),
      the
      Make Good Pledgor will transfer to each Investor for no additional consideration
      a number of shares of Common Stock equal to:

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

       

    

    (such
      Investor’s Investment Amount / (4.986 x (2.14 / ($40,562,110 / actual After-Tax
      Net Income reported in the 2008 Annual Report)))) - the number of Shares issued
      in the transaction to such Investor

     

    (the
      “2008
      Investor Shares”).
      Should
      the preceding formula yield a number equal to or less than zero, no transfer
      of
      2008 Make Good Shares (as defined in the Make Good Escrow Agreement) shall
      be
      made to Investors. In no event shall the failure by the Company to achieve
      the
      2008 Guaranteed ATNI result in the delivery by the Make Good Pledgor to the
      Investors of a number of shares that is in excess of the number of 2008 Make
      Good Shares pledged under the Make Good Escrow Agreement. If the 2008 Annual
      Report indicates that the Company shall have satisfied the 2008 Guaranteed
      ATNI test specified above for such period, then no transfer to Investors of
      2008
      Make Good Shares shall be required by this Section and all 2008 Make Good Shares
      deposited with the Make Good Escrow Agent shall be returned to the Make Good
      Pledgor in accordance with the Make Good Escrow Agreement. Transfers of 2008
      Investor Shares required under this Section shall be made to Investors within
      7
      Business Days after the date which the Company’s 2008 Annual Report is filed
      with the Commission and otherwise in accordance with the Make Good Escrow
      Agreement.

     

    (c) In
      connection with the foregoing, Make Good Pledgor agrees that within three
      Trading Days following the Closing, Make Good Pledgor will deposit all 2007
      Make
      Good Shares and 2008 Make Good Shares into escrow in accordance with the Make
      Good Escrow Agreement along with bank signature stamped stock powers endorsed
      in
      blank (or such other signed instrument of transfer acceptable to the Company’s
      transfer agent), and the handling and disposition of the 2007 Make Good Shares
      and 2008 Make Good Shares shall be governed by this Section 4.11 and such Make
      Good Escrow Agreement. The Make Good Pledgor hereby agrees that its obligation
      to transfer shares of Common Stock to Investors pursuant to this Section 4.11
      shall continue to run to the benefit of an Investor who shall have transferred
      or sold all or any portion of its Securities, and that Investors shall have
      the
      right to assign its rights to receive all or any such shares of Common Stock
      to
      other Persons in conjunction with negotiated sales or transfers of any of its
      Securities.

     

    (d) The
      Company covenants and agrees that upon any transfer under this Section of 2007
      Investor Shares or 2008 Investor Shares to the Investors in accordance with
      Section 4 of the Make Good Escrow Agreement, the Company shall instruct its
      transfer agent to promptly reissue such 2007 Investor Shares or 2008 Investor
      Shares in the applicable Investor’s name and deliver the same as directed by
      such Investor.

     

    (e) Notwithstanding
      the foregoing, the parties agree that for purposes of determining whether or
      not
      the 2007 Guaranteed ATNI or the 2008 Guaranteed ATNI have been achieved, the
      release of the 2007 Make Good Shares or the 2008 Make Good Shares to the Make
      Good Pledgor as a result of the operation of this Section 4.11 shall not be
      deemed to be an expense, charge or other deduction from revenues even though
      GAAP may require contrary treatment and even though the applicable annual report
      on Form 10-K may indicate otherwise.

     

    4.12. Dividends.
      The Company covenants that it shall cause its Subsidiaries not to declare or
      pay
      any form of dividend, or enter into any agreement to effectuate the foregoing.
      

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

       

    

    4.13. Right
      of First Refusal. 

     

    (a) From
      the
      date hereof until the one year anniversary of the Closing Date (the
      "Trigger
      Date"),
      the
      Company will not, directly or indirectly, offer, sell, grant any option to
      purchase, or otherwise dispose of (or announce any offer, sale, grant or any
      option to purchase or other disposition of) any of its or its Subsidiaries'
      equity or equity equivalent securities, including without limitation any debt,
      preferred stock or other instrument or security that is, at any time during
      its
      life and under any circumstances, convertible into or exchangeable or
      exercisable for shares of Common Stock or Common Stock Equivalents (any such
      offer, sale, grant, disposition or announcement being referred to as a
      "Subsequent
      Placement")
      unless
      the Company shall have first complied with this Section 4.13.

     

    (b) The
      Company shall deliver to each Investor hereunder a written notice
      (the "Offer
      Notice")
      of any
      proposed or intended issuance or sale or exchange (the "Offer")
      of the
      securities being offered (the "Offered
      Securities")
      in a
      Subsequent Placement, which Offer Notice shall (w) identify and describe the
      Offered Securities, (x) describe the price and other terms upon which they
      are to be issued, sold or exchanged, and the number or amount of the Offered
      Securities to be issued, sold or exchanged, (y) identify the persons or
      entities (if known) to which or with which the Offered Securities are to be
      offered, issued, sold or exchanged and (z) offer to issue and sell to or
      exchange with such Investors all of the Offered Securities, allocated among
      such
      Investors (a) based on such Investor's pro rata portion of the total Investment
      Amount hereunder (the "Basic
      Amount"),
      and
      (b) with respect to each Investor that elects to purchase its Basic Amount,
      any
      additional portion of the Offered Securities attributable to the Basic Amounts
      of other Investors as such Investor shall indicate it will purchase or acquire
      should the other Investors subscribe for less than their Basic Amounts (the
      "Undersubscription
      Amount"),
      which
      process shall be repeated until the Investors shall have an opportunity to
      subscribe for any remaining Undersubscription Amount.

     

    (c) To
      accept
      an Offer, in whole or in part, such Investor must deliver a written notice
      to
      the Company prior to the end of the fifth (5th)
      Business Day after such Investor's receipt of the Offer Notice (the
      "Offer
      Period"),
      setting forth the portion of such Investor's Basic Amount that such Investor
      elects to purchase and, if such Investor shall elect to purchase all of its
      Basic Amount, the Undersubscription Amount, if any, that such Investor elects
      to
      purchase (in either case, the "Notice
      of Acceptance").
      If
      the Basic Amounts subscribed for by all Investors are less than the total of
      all
      of the Basic Amounts, then each Investor who has set forth an Undersubscription
      Amount in its Notice of Acceptance shall be entitled to purchase, in addition
      to
      the Basic Amounts subscribed for, the Undersubscription Amount it has subscribed
      for; provided,
      however,
      that if
      the Undersubscription Amounts subscribed for exceed the difference between
      the
      total of all the Basic Amounts and the Basic Amounts subscribed for (the
      "Available
      Undersubscription Amount"),
      each
      Investor who has subscribed for any Undersubscription Amount shall be entitled
      to purchase only that portion of the Available Undersubscription Amount as
      the
      Basic Amount of such Investor bears to the total Basic Amounts of all Investors
      that have subscribed for Undersubscription Amounts, subject to rounding by
      the
      Company to the extent its deems reasonably necessary.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

       

    

    (d) The
      Company shall have twenty (20) Business Days from the expiration of the Offer
      Period above to (i) offer, issue, sell or exchange all or any part of such
      Offered Securities as to which a Notice of Acceptance has not been given by
      the
      Investors (the "Refused
      Securities"),
      but
      only to the offerees described in the Offer Notice (if so described therein)
      and
      only upon terms and conditions (including, without limitation, unit prices
      and
      interest rates) that are not more favorable to the acquiring person or persons
      or less favorable to the Company than those set forth in the Offer Notice and
      (ii) to publicly announce (a) the execution of such Subsequent Placement
      Agreement (as defined below), and (b) either (x) the consummation of the
      transactions contemplated by such Subsequent Placement Agreement or (y) the
      termination of such Subsequent Placement Agreement, which shall be filed with
      the Commission on a Current Report on Form 8-K with such Subsequent Placement
      Agreement and any documents contemplated therein filed as exhibits thereto.
      If
      no disclosure has been made by the Company by the end of the twenty (20)
      Business Day period referred to in this subsection (d), the Subsequent Placement
      shall be deemed to have been abandoned and the Investors shall no longer be
      deemed to be in possession of any non-public information with respect to the
      Company.

     

    (e) In
      the
      event the Company shall propose to sell less than all the Refused Securities
      (any such sale to be in the manner and on the terms specified in this Section
      4.13), then each Investor may, at its sole option and in its sole discretion,
      reduce the number or amount of the Offered Securities specified in its Notice
      of
      Acceptance to an amount that shall be not less than the number or amount of
      the
      Offered Securities that such Investor elected to purchase pursuant to Section
      4.13(c) above multiplied by a fraction, (i) the numerator of which shall be
      the
      number or amount of Offered Securities the Company actually proposes to issue,
      sell or exchange (including Offered Securities to be issued or sold to Investors
      pursuant to Section 4.14(c) above prior to such reduction) and (ii) the
      denominator of which shall be the original amount of the Offered Securities.
      In
      the event that any Investor so elects to reduce the number or amount of Offered
      Securities specified in its Notice of Acceptance, the Company may not issue,
      sell or exchange more than the reduced number or amount of the Offered
      Securities unless and until such securities have again been offered to the
      Investors in accordance with Section 4.13(b) above.

     

    (f) Upon
      the
      closing of the issuance, sale or exchange of all or less than all of the Refused
      Securities, the Investors shall acquire from the Company, and the Company shall
      issue to the Investors, the number or amount of Offered Securities specified
      in
      the Notices of Acceptance, as reduced pursuant to Section 4.13(e) above if
      the
      Investors have so elected, upon the terms and conditions specified in the Offer.
      The purchase by the Investors of any Offered Securities is subject in all cases
      to the preparation, execution and delivery by the Company and the Investors
      of a
      purchase agreement relating to such Offered Securities reasonably satisfactory
      in form and substance to the Investors and their respective counsel (such
      agreement, the “Subsequent
      Placement Agreement”).

     

    (g) Any
      Offered Securities not acquired by the Investors or other persons in accordance
      with Section 4.13(f) above may not be issued, sold or exchanged until they
      are
      again offered to the Investors under the procedures specified in this
      Agreement.

     

    (h) In
      exchange for the Company’s willingness to agree to these procedures, each
      Investor hereby irrevocably agrees that it will hold in strict confidence any
      and all Offer Notices, the information contained therein, and the fact that
      the
      Company is contemplating a Subsequent Placement, until such time as the Company
      is obligated to make the disclosures required by Section 4.13(d), or unless
      it
      notifies the Company in writing that it no longer desires to receive Offer
      Notices. 

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

       

    

    (i) Notwithstanding
      the foregoing, this Section 4.13 shall not apply in respect of an Exempt
      Issuance.

     

    4.14. Board
      of Directors. The Company covenants and agrees that no later than six months
      following the Closing Date, the Board of Directors of the Company shall be
      comprised of a minimum of five members, a majority of which shall be
“independent directors” as such term is defined in NASDAQ Marketplace Rule
      4200(a)(15). In the event the Company falls
      greater than 10% below After-Tax Net Income of $5,678,000 for the fiscal year
      ended December 31, 2007,
      or
      falls greater than 10% below After-Tax Net Income of $8,200,000 for the fiscal
      year ended December 31, 2008, then Pope shall have the right to select one
      member of the Board of Directors of the Company.

     

    4.15. Listing.
      The Company covenants to use its reasonable best efforts to have the Common
      Stock listed or quoted for trading on any of the New York Stock Exchange, the
      American Stock Exchange, the NASDAQ Global Select Market, the NASDAQ Global
      Market or the NASDAQ Capital Market within one year following the
      Closing.

     

    ARTICLE
      5.

    CONDITIONS
      PRECEDENT TO CLOSING

     

    5.1. Conditions
      Precedent to the Obligations of the Investors to Purchase
      Securities.
      The
      obligation of each Investor to acquire Securities 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 and the Selling Stockholder
      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;

     

    (b) Performance.
      Each of
      the Company and the Selling Stockholder 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
      or a
      material adverse change with respect to the Subsidiaries;

     

    (e) Ritar
      Financial Statements.
      Ritar
      shall have delivered audited financial statements for the fiscal years ended
      December 31, 2005 and 2004 and unaudited financial statements for the interim
      period (collectively, the “Ritar
      Financial Statements”);

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

       

    

    (f) PRC
      Opinion.
      Ritar
      shall have received an opinion from its legal counsel in the People's Republic
      of China that confirms the legality under Chinese law of the restructuring
      being
      effected by Ritar in connection with the Exchange in form and substance
      satisfactory to the Investors;

     

    (g) Exchange
      Agreement Form 8-K.
      Concurrently with or immediately prior to the Closing, the Company shall have
      acquired all of the outstanding capital stock of Ritar pursuant to the Exchange
      Agreement, and the Company shall provide the Investors with the Current Report
      on Form 8-K to be filed in accordance with the Exchange Agreement, as amended,
      containing the audited financial statements of Ritar and other required
      disclosure with respect to Ritar;

     

    (h) Investor
      Relations.
      Prior
      to the Closing, the Company shall hire Heritage Management Consultants, Inc.
      as
      the Company’s investor relations firm.

     

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

     

    (j) Termination.
      This
      Agreement shall not have been terminated as to such Investor in accordance
      with
      Section 6.5.

     

    5.2. Conditions
      Precedent to the Obligations of the Company and the Selling Stockholder to
      Sell
      Securities.
      The
      obligation of the Company and the Selling Stockholder to sell Securities 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 6.5.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

       

    

    ARTICLE
      6.

    MISCELLANEOUS

     

    6.1. Fees
      and Expenses.
      Each
      party shall pay the fees and expenses of its advisers, counsel, accountants
      and
      other experts, if any, and all other expenses incurred by such party incident
      to
      the negotiation, preparation, execution, delivery and performance of the
      Transaction Documents. The Company shall pay all stamp and other taxes and
      duties levied in connection with the sale of the Securities.

     

    6.2. 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.

     

    6.3. 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 prior to 6:30 p.m. (New York City time) on a Trading Day, (b)
      the
      next Trading Day after the date of transmission, if such notice or communication
      is delivered via facsimile at the facsimile number specified in this Section
      on
      a day that is not a Trading Day or later than 6:30 p.m. (New York City time)
      on
      any Trading Day, (c) upon actual receipt by the party to whom such notice is
      required to be given, if sent by any means other than facsimile transmission.
      The address for such notices and communications shall be as
      follows:

     

    
      	 	
               If
                to the Company:

            	 Concept Ventures
              Corporation
	 	 	 Room 2201 Tower A
	 	 	 Cyber Times Building
	 	 	 Tian’an Cyber Park, Futian
              District
	 	 	 Shenzhen, China 51804
	 	 	 Facsimile: 86-755-8347
              5180
	 	 	 Attn.: Mr. Jiada Hu
	 	 	 
	 	
               With
                a copy to:

            	 Thelen Reid Brown Raysman & Steiner
              LLP
	 	 	 701 8th
              Street NW
	 	 	 Washington, D.C. 20001
	 	 	 Facsimile: (202) 508-4321
	 	 	 Attn.: Louis A. Bevilacqua,
              Esq.
	 	 	 
	 	
               If
                to the Selling Stockholder:

            	 To the address set forth on its
              signature page hereof;
	 	 	 
	 	
               If
                to an Investor:

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

    

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

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

     

    6.4. Amendments;
      Waivers; No Additional Consideration.
      No
      provision of this Agreement may be waived or amended except in a written
      instrument signed by the Company and the Investors holding a majority of the
      Securities and, prior to Closing, the Selling Stockholder. In addition, Sections
      3.3, 4.7(b) and Article VI may not be waived or amended except in a written
      instrument signed by the Investors holding a majority of the Securities, the
      Company and the Selling Stockholder. 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 Securities.

     

    6.5. Termination.
      This
      Agreement may be terminated prior to Closing:

     

    (a) by
      written agreement of the Investors and the Company; and

     

    (b) by
      the
      Company, the Selling Stockholder, 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 6.5(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.

     

    In
      the
      event of a termination pursuant to this Section, the Company shall promptly
      notify all non-terminating Investors. Upon a termination in accordance with
      this
      Section 6.5, the Company, terminating Selling Stockholder and 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 the Transaction Documents as a result
      therefrom.

     

    6.6. Construction.
      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.

     

    6.7. Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and permitted assigns. Neither the Company nor the Selling
      Stockholder may 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.”

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

       

    

    6.8. 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, except as otherwise set
      forth
      in Section 4.7 (as to each Investor Party).

     

    6.9. 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. Each party agrees that all Proceedings
      concerning the interpretations, enforcement and defense of the transactions
      contemplated by this Agreement and any other Transaction Documents (whether
      brought against a party hereto or its respective Affiliates, employees or
      agents) shall be commenced exclusively in the New York Courts. Each party hereto
      hereby irrevocably submits to the exclusive jurisdiction of the New York Courts
      for the adjudication of any dispute hereunder or in connection herewith or
      with
      any transaction contemplated hereby or discussed herein (including with respect
      to the enforcement of the any of the Transaction Documents), and hereby
      irrevocably waives, and agrees not to assert in any Proceeding, any claim that
      it is not personally subject to the jurisdiction of any such New York Court,
      or
      that such Proceeding has been commenced in an improper or inconvenient forum.
      Each party hereto hereby irrevocably waives personal service of process and
      consents to process being served in any such Proceeding by mailing a copy
      thereof via registered or certified mail or overnight delivery (with evidence
      of
      delivery) to such party at the address in effect for notices to it under this
      Agreement and agrees that such service shall constitute good and sufficient
      service of process and notice thereof. Nothing contained herein shall be deemed
      to limit in any way any right to serve process in any manner permitted by law.
      Each party hereto hereby irrevocably waives, to the fullest extent permitted
      by
      applicable law, any and all right to trial by jury in any legal proceeding
      arising out of or relating to this Agreement or the transactions contemplated
      hereby. If either party shall commence a Proceeding to enforce any provisions
      of
      a Transaction Document, then the prevailing party in such Proceeding shall
      be
      reimbursed by the other party for its reasonable attorneys’ fees and other costs
      and expenses incurred with the investigation, preparation and prosecution of
      such Proceeding.

     

    6.10. Survival.
      The
      representations, warranties, agreements and covenants contained herein shall
      survive the Closing and the delivery of the Securities.

     

    6.11. 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.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

       

    

    6.12. 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 and
      the
      parties will attempt to agree upon a valid and enforceable provision that is
      a
      reasonable substitute therefor, and upon so agreeing, shall incorporate such
      substitute provision in this Agreement.

     

    6.13. Rescission
      and Withdrawal Right.
      Notwithstanding anything to the contrary contained in (and without limiting
      any
      similar provisions of) the Transaction Documents, whenever any Investor
      exercises a right, election, demand or option under a Transaction Document
      and
      the Company does not timely perform its related obligations within the periods
      therein provided, then such Investor may rescind or withdraw, in its sole
      discretion from time to time upon written notice to the Company, any relevant
      notice, demand or election in whole or in part without prejudice to its future
      actions and rights.

     

    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. Remedies.
      In
      addition to being entitled to exercise all rights provided herein or granted
      by
      law, including recovery of damages, each of the Investors, the Company and
      the
      Selling Stockholder will be entitled to specific performance under the
      Transaction Documents. The parties agree that monetary damages may not be
      adequate compensation for any loss incurred by reason of any breach of
      obligations described in the foregoing sentence and hereby agrees to waive
      in
      any action for specific performance of any such obligation the defense that
      a
      remedy at law would be adequate.

     

    6.16. Payment
      Set Aside.
      To the
      extent that the Company or any Selling Stockholder makes a payment or payments
      to any Investor pursuant to any Transaction Document or an Investor enforces
      or
      exercises its rights thereunder, and such payment or payments or the proceeds
      of
      such enforcement or exercise or any part thereof are subsequently invalidated,
      declared to be fraudulent or preferential, set aside, recovered from, disgorged
      by or are required to be refunded, repaid or otherwise restored to the Company
      or such Selling Stockholder, a trustee, receiver or any other person under
      any
      law (including, without limitation, any bankruptcy law, state or federal law,
      common law or equitable cause of action), then to the extent of any such
      restoration the obligation or part thereof originally intended to be satisfied
      shall be revived and continued in full force and effect as if such payment
      had
      not been made or such enforcement or setoff had not occurred.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

       

    

    6.17. 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 Investors as a partnership, an association,
      a
      joint venture or any other kind of entity, or create a presumption that the
      Investors are in any way acting in concert or as a group with respect to such
      obligations or the transactions contemplated by the Transaction Documents.
      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 Securities or enforcing its rights under the Transaction
      Documents. Each Investor shall be entitled to independently protect and enforce
      its rights, including without limitation 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. Each of the Company and the Selling Stockholder
      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.

     

    6.18. Limitation
      of Liability.
      Notwithstanding anything herein to the contrary, each of the Company and the
      Selling Stockholder 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]

     

     

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

       

    

    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.

     

    
      	 	 	 
	 	CONCEPT
              VENTURES CORPORATION
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
	 	Title: 

    

     

    
      	 	 	 
	 	Only
              as to Section
              4.11 herein:
	 
 	 
      
              	 
 
	 	 

              
Mr.
              Jiada Hu
	 	
            
	 	 

    

     

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGE FOR SELLING STOCKHOLDER FOLLOWS]

     

     

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Securities Purchase Agreement
      as
      of the date first written above.

     

    
      	 	 

              NAME
                OF SELLING STOCKHOLDER

               

              _________________________________________ 

              Name: 

               

               

              NUMBER
                OF SELLING STOCKHOLDER SHARES

               

              _________________________________________ 

               

              ADDRESS
                FOR NOTICE

               

              c/o:
                ______________________________________

               

              Street:
                ____________________________________

               

              City/State/Zip:
                ______________________________

               

              Attention:
                _________________________________

               

              Tel:
                ______________________________________

               

              Fax:
                ______________________________________

               

              Email:
                _____________________________________

            

    

     

    
    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK 

    SIGNATURE
      PAGES FOR INVESTORS FOLLOW]

     

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    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.

     

    NAME
      OF INVESTOR

     

    _________________________________________

     

    By:
      ______________________________________

          
      Name: 

          
      Title: 

     

    Investment
      Amount:  $ _______________________

     

    Tax
      ID
      No.: ________________________________

     

    ADDRESS
      FOR NOTICE

     

    c/o:
      ______________________________________

     

    Street:
      ____________________________________

     

    City/State/Zip:
       _____________________________

     

    Attention:
      _________________________________

     

    Tel:
      ______________________________________

     

    Fax:
      ______________________________________

     

    DELIVERY
      INSTRUCTIONS

       
      (if different from above)

     

    c/o:
      ______________________________________

     

    Street:
      ____________________________________

     

    City/State/Zip:
       _____________________________

     

    Attention:
      _________________________________

     

    Tel:
      ______________________________________

     

    

     

    
      
        
        

      

      
        35

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