Document:

China TMK Battery Systems Inc. - Exhibit 10.27 - Filed by
   newsfilecorp.com

Exhibit 10.27

 

AMENDMENT TO CONSUMER BATTERY LICENSE AGREEMENT 

           
This Amendment to the Consumer Battery License Agreement of August 8, 2006 (the
“Amendment to CBLA”) effective as of May 22, 2009 (“Amendment Effective Date”),
by and between Ovonic Battery Company, Inc. a corporation of the state of
Delaware, the United States of America, 2983 Waterview Drive, Rochester Hills,
Michigan 48309 (‘OBC”) and TMK Power Industries Ltd, a Chinese company, having a
place of business at San-Jun Industrial Park, Hua-Wang Road, Da-Lang, Long-Hua
Town, Shenzhen 518109, Peoples Republic of China (“TMK”). 

Recitals 

           
WHEREAS, TMK and Ovonic entered into the Consumer Battery License Agreement
(“CBLA”) pursuant to which, among other things, TMK was obligated (i) make the
up-front license fee payments as set forth in Appendix II attached to the CBLA,
and (ii) pay to OBC running royalties on, among other things, its worldwide
sales of Licensed Consumer Batteries; 

           
WHEREAS, as a result of TMK’s delinquent payment to OBC of both up-front license
fees and running royalty payments, OBC and TMK have had discussions to amicably
resolve their differences and relist TMK on Ovonic’s website; and 

           
WHEREAS, pursuant to their discussions, OBC and TMK desire to restructure
Appendix II to the CBLA in the manner and based upon the consideration set forth
herein. 

           
NOW, THEREFORE, based on the premises and mutual promises and obligations set
forth herein, the parties hereto, hereby agree as follows: 

1. Definitions 

1.1            
Capitalized Terms. As used herein, unless specifically
noted, all capitalized terms shall have the meanings set forth in the CBLA. 

2. New Terms and Conditions 

2.1            
New Terms. Appendix II is hereby replaced in its entirety by the
following Amended Appendix II. Pursuant to this Amended Appendix II, effective
upon OBC’s receipt of the initial twenty thousand US dollar (US$20,000) payment,
the 

running royalty to be paid by TMK on the Net Selling Price of
its Licensed Consumer Batteries shall be 2.5% . 

Amended Appendix II 

	  	  	Cumulative 	Running 
	Payment 	Up-front 	Up-front 	Royalty 
	Schedule 	Payment 	Payment 	Rate 
	May, 2009 	US$20K 	US$20K 	2.5% 
	August, 2009 	US$40K 	US$60K 	2.5% 
	December, 2009 	US$40K 	US$100K 	2.5% 
	February 1, 2010*(see Section 2.3)
    	0 	US$100K 	2.0% 

Future Royalty Reductions and Up-front Fees 

	Gross Sales reach $30M/Yr 	US$200K 	US$300K 	1.5% 
	Gross Sales reach $50M/Yr 	US$500K 	US$800K 	0.50% 
	Gross Sales reach $75M/Yr 	US$1M 	US$1.8M 	0.50% 
	Gross Sales reach $150M/Yr 	US$1.5M 	US$3.3M 	0.50% 
	Gross Sales reach $250M/Yr
	US$1.7M 	US$5M 	0.50%

2.2            
Reinstatement. Immediately upon receipt by Ovonic of the first
up-front license fee payment of twenty thousand US dollars (US$20,000), Ovonic
shall reinstate TMK as a licensee in good-standing and to reflect that status,
Ovonic will reinstate TMK’s name on its internet web page of Ovonic licensees.

2.3            
Further Royalty Reduction. In the event that TMK timely makes two
consecutive semiannual royalty payments to Ovonic on or before February 1, 2010,
Ovonic shall further reduce TMK’s running royalty rate to two percent (2%)
without TMK’s payment of any additional up-front fee. 

2.4            
Other Details. 

	 	a) 	
      Retroactive to November 1, 2008, royalties based on TMK’s
      worldwide sales of Licensed Consumer Batteries shall be reported and paid
      semiannually:

	 	 	 	 
	 		i) 	
      Royalties for November 1, 2008 through April 30, 2009
      shall be paid by June 30, 2009; and

	 	 	 	 
	 		ii) 	
      Royalties for May 1, 2009 through October 31, 2009 shall
      be paid by December 31, 2009.

	 	 	 	 
	 	b)	
      The CBLA and this Amendment to CBLA shall cover TMK’s
      worldwide sales of all NIMH batteries for Consumer Applications.
      Specifically, all

	 		
      TMK nickel metal hydride (Ni-MH) products are royalty
      bearing, including sales in the Peoples Republic of China.

	 	 	 
	 	c) 	
      The royalty rates to be paid by TMK to Ovonic on TMK’s
      worldwide sales of Licensed Bicycle Batteries are not effected by the
      reductions set forth in Appendix II above. Those royalty rates shall
      remain fixed at three and one-half percent (3.5%).

2.5            
Integration Clause. This Amendment to CBLA embodies the entire
understanding of the parties with respect to the specifically stated subject
matter set forth herein and supersedes the terms in all other prior agreements
with respect to such specifically stated subject matter; provided, however that
related terms and understandings set forth in the CBLA remain in full force and
effect. 

                 
IN WITNESS WHEREOF, the parties hereto have caused this Amendment CBLA to be
executed by their duly authorized representatives. 

 

	TMK POWER INDUSTRIES LTD. 	OVONIC BATTERY COMPANY, INC. 
	 	 
	 	 
	BY:________________________ 	
      BY:__________________________ 

	  	Michael A. Fetcenko 
	 	 
	 	 
	TITLE:_____________________ 	TITLE: President 
	 	 
	 	 
	DATE: _____________________ 	DATE:________________________China TMK Battery Systems Inc. - Exhibit 10.   - Filed by newsfilecorp.com

OPTION AGREEMENT 

This OPTION AGREEMENT (the “Agreement”) is made
as of February 5, 2010 (the “Effective Date”), between (i) Li
Guifang (Hong Kong ID Number: 2621 2710 5364), a Hong Kong resident (the
“Grantor”); and (ii) Wu Henian, an individual citizen of the
People’s Republic of China (the “Optionee”) (each of the
foregoing, a “Party” and together, the “Parties”).
Capitalized terms not otherwise defined have the meanings assigned to them in
Exhibit A to this Agreement. 

RECITALS 

	A. 	
      The Grantor is the sole shareholder of Unitech
      International Investment Holdings Limited, a company organized and
      existing under the laws of the British Virgin Islands
      (“Unitech”). Unitech in turn is the sole equity holder of
      Leading Asia Pacific Investment Limited, a company organized and existing
      under the laws of the British Virgin Islands (“Leading
      Asia”), which in turn is the sole equity holder of Good Wealth
      Capital Investment Limited, a company organized and existing under the
      laws of Hong Kong, which in turn is the sole equity holder of Shenzhen TMK
      Power Industries Ltd., a wholly foreign-owned company existing under the
      laws of the People’s Republic of China (collectively, the
      “Subsidiaries”).

	 	 
	B. 	
      After the date of this Agreement, Unitech and Leading
      Asia intend to enter into a share exchange agreement (the “Exchange
      Agreement”) with a United States-domiciled public reporting shell
      company whose securities are quoted on the over-the-counter bulletin board
      (the “Shell Company”). Upon consummation of the transactions
      contemplated by the Exchange Agreement (the “Exchange
      Transaction”), the Shell Company will, in exchange for the
      issuance of shares of the common stock of the Shell Company, acquire 100%
      of the issued and outstanding capital stock of Leading Asia, and,
      indirectly, sole ownership of the Subsidiaries.

AGREEMENT 

NOW, THEREFORE, in consideration of the mutual promises and
covenants contained herein, and for other good and valuable consideration, the
receipt and sufficient of which is acknowledged by the Parties, the Parties
agree as follows: 

ARTICLE I 

  OPTION RIGHT 

	1.1 	
      Option Right. The Optionee will have,
      during the Exercise Period, and according to the following schedule, the
      right and option to purchase from the Grantor, and upon the exercise of
      such right and option the Grantor will have the obligation to sell to the
      Optionee, all of Grantor’s Shares (the “Option Right”).
      “Grantor’s Shares” means 50,000 shares of the capital stock
      of the Unitech held by the Grantor. At any time after a date which is six
      (6) months after the date on which the resale registration statement for
      the Shell Company’s shares issued to the investors in an equity financing
      conducted concurrently with the Exchange Transaction is declared effective
      by the United States Securities and Exchange Commission, but before the
      Expiration Date (as defined below), the Optionee may exercise the Option
      Right to Grantor’s Shares.

	 	 
	1.2 	
      Option Period. The Option Right will be
      exercisable by the Optionee by delivering an Exercise Notice at any time
      during the period (the “Exercise Period”) commencing on
      the earliest date on which the Option Right may be exercised
      pursuant to Section 1.1 (the “Initial Option Date”)
      and ending at 6:30 p.m. (New York time) on the fifth anniversary of the
      Initial Option Date (such date or the earlier expiration of the Option
      Right is referred to herein as the “Expiration
  Date”).

	1.3 	
      Exercise Process. In order to exercise the
      Option Right during the Exercise Period, the Optionee must deliver to the
      Grantor a written notice of such exercise substantially in the form
      attached hereto as Exhibit B (the “Exercise Notice”)
      to such address or facsimile number set forth therein. The Exercise Notice
      will indicate the number of the Grantor’s Shares as to which the Optionee
      is then exercising its Option Right and the aggregate Option Price.
      Provided the Exercise Notice is delivered in accordance with Section
      6.2 to the Grantor on or prior to 6:30 p.m. (New York time) on a
      Business Day, the date of exercise (the “Exercise Date”) of
      the Option Right will be the date of such delivery of such Exercise
      Notice. In the event the Exercise Notice is delivered after 6:30 p.m. (New
      York time) on any day or on a date which is not a Business Day, the
      Exercise Date will be deemed to be the first Business Day after the date
      of such delivery of such Exercise Notice. The delivery of an Exercise
      Notice in accordance herewith will constitute a binding obligation (a) on
      the part of the Optionee to purchase and (b) on the part of the Grantor to
      sell, the Grantor’s Shares subject to such Exercise Notice in accordance
      with the terms of this Agreement.

	 	 
	1.4 	
      Option Price. With respect to any exercise
      of the Option Right, the per-share “Option Price” will be
      equal to USD$0.01. Within thirty (30) days after the Expiration Date, or
      upon written termination and release by any Optionee of any unexercised
      Option Rights held by the Optionee, the Grantor will refund to the
      Optionee the amount of the aggregate Option Price corresponding to the
      Grantor’s Shares as to which there is no longer an Option Right, without
      interest

	 	 
	1.5 	
      Delivery of the Shares. Upon the receipt of
      an Exercise Notice and the payment of the Option Price, the Grantor will
      deliver, or take all steps necessary to cause to be delivered, the
      Grantor’s Shares being purchased pursuant to such Exercise
  Notice.

ARTICLE II 

  ENCUMBRANCES; TRANSFERS, SET-OFF; ESCROW 

	2.1 	
      Encumbrances. Upon exercise of the Option
      Right, the Grantor’s Shares being purchased will be sold, transferred and
      delivered to the Optionee free and clear of any claim, pledge, charge,
      lien, preemptive rights, restrictions on transfers (except as required by
      securities laws of the United States), proxies, voting agreements and/or
      any other Encumbrance.

	 	 
	2.2 	
      Lock-up; Transfers. Prior to the Expiration
      Date, the Grantor will not transfer to any other Person and will continue
      to own, free and clear of any Encumbrance, the Grantor’s Shares.

	 	 
	2.3 	
      Legend. The Grantor will cause a
      notification to be made in the share register of Unitech language in
      substantially the form as follows:

2 

  
    
      “THE SHARES REGISTERED IN THE NAME OF LI GUIFANG
        OR REPRESENTED BY THIS CERTIFICATE, AS THE CASE MAY BE, ARE SUBJECT TO
        AN OPTION RIGHT WHICH PROHIBITS THEIR TRANSFER TO ANY PERSON OTHER THAN
        THE HOLDER OF THAT RIGHT PRIOR TO THE EXERCISE OF THE RIGHT OR ITS EXPIRATION.
        ANY PERSON ACCEPTING ANY INTEREST IN THE SHARES SHALL BE DEEMED TO AGREE
        TO AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF THE OPTION AGREEMENT
        IN WHICH THAT OPTION RIGHT IS SET FORTH, AND THE SHARES WILL REMAIN SUBJECT
        TO THE OPTION RIGHT AS PROVIDED THEREIN. A COPY OF THE OPTION AGREEMENT
        WILL BE FURNISHED TO THE RECORD HOLDER OF THIS CERTIFICATE WITHOUT CHARGE
        UPON WRITTEN REQUEST TO THE COMPANY AT ITS PRINCIPAL PLACE OF BUSINESS.”
      

    

  

	2.4 	
      Set-off. The Optionee will be absolutely
      entitled to receive all the Grantor’s Shares subject to the exercise of an
      Option Right, and for the purposes of this Agreement, the Grantor hereby
      waives, as against the Optionee, all rights of set-off or counterclaim
      that would or might otherwise be available to the
  Grantor.

ARTICLE III 

  PRE-EXPIRATION DATE COVENANTS 

	3.1 	
      No Increase of Authorized Shares. Grantor
      will ensure that, prior to the Expiration Date, there will be no increase
      in the number of authorized shares of common or ordinary stock of Unitech
      without the prior written approval of the Optionee.

	 	 
	3.2 	
      Access and Investigation. The Grantor will
      ensure that, prior to the Expiration Date and at the reasonable request of
      the Optionee: (a) Unitech provides the Optionee with reasonable access to
      the personnel and assets and to all existing books, records, work papers
      and other documents and information relating to Unitech, the Subsidiaries
      and their business; (b) Unitech provides the Optionee with such copies of
      existing books, records, work papers and other documents and information
      relating to Unitech, the Subsidiaries and their business as the Optionee
      may request in good faith; and (c) Unitech compiles and provides the
      Optionee with such additional financial, operating and other data and
      information relating to Unitech, the Subsidiaries and their business as
      the Optionee may request in good faith.

	 	 
	3.3 	
      Operation of Business. Unless
      otherwise agreed by the Optionee in advance and in writing, the Grantor
      will ensure that, prior to the Expiration
Date:

	 	(a) 	
      Unitech (i) preserves or causes to preserve intact the
      current business and management organization of Unitech and the
      Subsidiaries, (ii) keeps available the services of current officers and
      employees of Unitech and the Subsidiaries, (iii) uses its best efforts to
      maintain its relations and good will with all suppliers, customers,
      landlords, creditors, licensors, licensees, employees, independent
      contractors and other Persons having business relationships with Unitech
      and the Subsidiaries;

	 	(b) 	
      the officers and directors of Unitech and the
      Subsidiaries confer regularly with the Optionee concerning operational
      matters and otherwise report regularly to the Optionee concerning the
      status of the business, condition, assets, liabilities, operations,
      financial performance and prospects of Unitech and/or the
    Subsidiaries;

	 	(c) 	
      The Optionee is notified immediately of any inquiry,
      proposal or offer from any Person relating to any purchase of any capital
      stock of and any investment into Unitech;

3 

	 	(d) 	
      Unitech and the Subsidiaries do not (i) declare, accrue,
      set aside or pay any dividend or make any other distribution in respect of
      any equity or shares of capital stock or other securities, or (ii)
      repurchase, redeem or otherwise reacquire any equity or shares of capital
      stock or other securities;

	 	 	 
	 	(e) 	
      Unitech and the Subsidiaries will not sell or otherwise
      issue any equity, shares of capital stock or any other
  securities;

	 	 	 
	 	(f) 	
      Unitech and the Subsidiaries do not change any of their
      methods of accounting or accounting practices in any respect;
and

	 	 	 
	 	(g) 	
      Unitech and the Subsidiaries do not agree, commit or
      offer (in writing or otherwise) to take any of the actions described in
      clauses “(a)” through “(f)” of this Section
3.3.

ARTICLE IV 

  REPRESENTATIONS AND WARRANTIES 

	4.1 	
      Representations and Warranties of the Grantor.
      The Grantor represents and warrants to the Optionee
  that:

	 	(a) 	
      Due Authorization. The execution and delivery of
      this Agreement and the consummation of the transactions contemplated
      hereunder to be carried out by it have been duly authorized by all
      necessary action on the part of the Grantor. This Agreement, and all
      agreements and documents executed and delivered pursuant to this
      Agreement, constitute valid and binding obligations of the Grantor,
      enforceable against the Grantor in accordance with its terms, subject to
      applicable Bankruptcy Laws and other laws or equitable principles of
      general application affecting the rights of creditors generally.

	 	 	 
	 	(b) 	
      No Conflicts. Neither the execution or delivery of
      this Agreement by the Grantor nor the fulfillment or compliance by the
      Grantor with any of the terms hereof will, with or without the giving of
      notice and/or the passage of time, (i) conflict with, or result in a
      breach of the terms, conditions or provisions of, or constitute a default
      under, any contract or any judgment, decree or order to which the Grantor
      is subject or by which the Grantor is bound, or (ii) require any consent,
      license, permit, authorization, approval or other action by any Person or
      Governmental Body which has not yet been obtained or received. The
      execution, delivery and performance of this Agreement by the Grantor or
      compliance with the provisions hereof by the Grantor does not, and will
      not, violate any provision of any Law to which the Grantor is subject or
      by which it is bound.

	 	 	 
	 	(c) 	
      No Actions. There are no lawsuits, actions or, to
      the best knowledge of the Grantor, investigations, claims or demands or
      other proceedings pending or, to the best of the knowledge of the Grantor,
      threatened against the Grantor that, if resolved in a manner adverse to
      the Grantor, would adversely affect the right or ability of the Grantor to
      carry out its obligations set forth in this Agreement.

	 	 	 
	 	(d) 	
      Title. The Grantor owns the Grantor’s Shares free
      and clear of any Encumbrance whatsoever, except as contemplated by this
      Agreement. The Grantor has not entered into nor is a party to any
      agreement that would cause the Grantor to not own the Grantor’s Shares
      free and clear of any Encumbrance, except as contemplated by this
      Agreement.

4 

	4.2 	
      Representations and Warranties of the Optionee.
      The Optionee represents and warrants to the Grantor
  that:

	 	(a) 	
      Due Authorization. The execution and delivery of
      this Agreement and the consummation of the transactions contemplated
      hereunder to be carried out by it have been duly authorized by all
      necessary action on the part of the Optionee. This Agreement, and all
      agreements and documents executed and delivered pursuant to this
      Agreement, constitute valid and binding obligations of the Optionee,
      enforceable against the Optionee in accordance with its terms, subject to
      applicable Bankruptcy Laws and other laws or equitable principles of
      general application affecting the rights of creditors generally.

	 	 	 
	 	(b) 	
      No Conflicts. Neither the execution or delivery of
      this Agreement by the Optionee nor the fulfillment or compliance by the
      Optionee with any of the terms hereof will, with or without the giving of
      notice and/or the passage of time, (i) conflict with, or result in a
      breach of the terms, conditions or provisions of, or constitute a default
      under, any contract or any judgment, decree or order to which the Optionee
      is subject or by which the Optionee is bound, or (ii) require any consent,
      license, permit, authorization, approval or other action by any Person or
      Governmental Body which has not yet been obtained or received. The
      execution, delivery and performance of this Agreement by the Optionee or
      compliance with the provisions hereof by the Optionee does not, and will
      not, violate any provision of any Law to which the Optionee is subject or
      by which it is bound.

	 	 	 
	 	(c) 	
      No Actions. There are no lawsuits, actions or, to
      the best knowledge of the Optionee, investigations, claims or demands or
      other proceedings pending or, to the best knowledge of the Optionee,
      threatened against the Optionee that, if resolved in a manner adverse to
      the Optionee, would adversely affect the right or ability of the Optionee
      to carry out its obligations set forth in this
Agreement.

ARTICLE V 

  EVENTS OF DEFAULT AND TERMINATION 

	5.1 	
      Events of Default. The occurrence at any
      time with respect to a Party (the “Defaulting Party”) of any
      of the following events will constitute an event of default (an
      “Event of Default”) with respect to such
  party:

	 	(a) 	
      Failure to Pay or Deliver. The failure by a Party
      to make, when due, any payment under this Agreement or deliver the
      Grantor’s Shares in accordance with this Agreement, if such failure is not
      remedied on or before the third Business Day after notice of such failure
      is given to the Defaulting Party.

	 	 	 
	 	(b) 	
      Breach of Agreement. The failure by a Party to
      comply with or perform any agreement, covenant or obligation (other than a
      failure described in Section 5.1(a), which will be governed by
      Section 5.1(a)) to be complied with or performed by such Party in
      accordance with this Agreement if such failure is not remedied on or
      before the tenth Business Day after notice of such failure is given to the
      Defaulting Party.

	 	 	 
	 	(c) 	
      Bankruptcy. A Party (1) is dissolved (other than
      pursuant to a consolidation, amalgamation or merger); (2) becomes
      insolvent or is unable to pay its debts or fails
or admits in writing its inability
generally to pay its debts as they become due; (3) makes a general assignment,
arrangement or composition with or for the benefit of its creditors; (4)
institutes or has instituted against it a proceeding seeking a judgment of
insolvency or bankruptcy or any relief under any Bankruptcy Law, or a petition
is presented for its winding-up or liquidation, and in the case of any such
proceeding or petition instituted or presented against it, such proceeding or
petition (A) results in a judgment of insolvency or bankruptcy or the entry of
an order for relief or the making of an order for its winding-up or liquidation
or (B) is not dismissed, discharged, stayed or restrained in each case within 30
days of the institution or presentation thereof; (5) has a resolution passed for
its winding-up, official management or liquidation (other than pursuant to a
consolidation, amalgamation or merger); (6) seeks or becomes subject to the
appointment of an administrator, provisional liquidator, conservator, receiver,
trustee, custodian or other similar official for it or for all or substantially
all of its assets; (7) has a secured party take possession of all or
substantially all of its assets or has a distress, execution, attachment,
sequestration or other legal process levied, enforced or sued on or against all
or substantially all of its assets and such secured party maintains possession,
or any such process is not dismissed, discharged, stayed or rescinded, in each
case within 30 days thereafter; (8) causes or is subject to any event with
respect to it that, under applicable Law, has an analogous effect to any of the
events described in clauses (1) through (7); or (9) takes any action in
furtherance of, or indicating its consent to, approval of, or acquiescence in,
any of the foregoing acts. 

5 

	5.2 	
      Termination. If at any time an Event of
      Default with respect to a Party has occurred and is continuing, the other
      party may terminate this Agreement and deem the Expiration Date to have
      occurred by giving written notice to the Defaulting Party specifying the
      relevant Event of Default.

ARTICLE VI 

  MISCELLANEOUS PROVISIONS 

	6.1 	
      Further Assurances. Each Party will
      execute and/or cause to be delivered to each other Party such instruments
      and other documents, and will take such other actions, as such other Party
      may reasonably request for the purpose of carrying out or evidencing any
      of the transactions contemplated by this Agreement.

	 	 
	6.2 	
      Notices. Any notice or other communication
      required or permitted to be delivered to any Party will be in writing and
      will be deemed properly delivered, given and received upon dispatch by
      hand, courier or express delivery service with receipt confirmed by
      signature of the addressee, to the address set forth beneath the name of
      such Party below (or to such other address as such Party may specify in a
      written notice given to the other Parties):

	 	If to the Grantor: 	Guifang Li 
	 	  	Workshop No.10, 6/F, Hewlett Centre 
	 	  	No.52-54 Hoi Yuen Road, Kwun Tong 
	 	  	Kowloon 
	 	  	Hong Kong 

6 

	 	If to the Optionee: 	Henian Wu 
	 	  	No.2, Huawang Road, Dalang Street 
	 	  	Bao’an District, Shenzhen 
	 	  	People’s Republic of China

	6.3 	
      Time of The Essence. Time is of the
      essence of this Agreement.

	 	 
	6.4 	
      Headings, Gender and Usage. The headings
      contained in this Agreement are for convenience of reference only, will
      not be deemed to be a part of this Agreement and will not be referred to
      in connection with the construction or interpretation of this Agreement.
      For purposes of this Agreement: (a) the words “include” and “including”
      will be taken to include the words, “without limitation;” and (b) whenever
      the context requires, the singular number will include the plural, and
      vice versa; and each of the masculine, feminine and neuter genders will
      refer to the others.

	 	 
	6.5 	
      Governing Law and Language. This Agreement,
      including all matters of construction, validity and performance, will in
      all respects be governed by, and construed in accordance with, the laws of
      Hong Kong (without giving effect to principles relating to conflict of
      laws). This Agreement is written in English and the English language will
      govern any interpretation of this Agreement.

	 	 
	6.6 	
      Venue and Jurisdiction. If any legal
      proceeding or other legal action relating to this Agreement is brought or
      otherwise initiated, the venue therefore will be in Hong Kong, which will
      be deemed to be a convenient forum. Each of the Parties hereby expressly
      and irrevocably consents and submits to the jurisdiction of the courts in
      Hong Kong.

	 	 
	6.7 	
      Interpretation. Each Party acknowledges
      that it has participated in the drafting of this Agreement, and any
      applicable rule of construction to the effect that ambiguities are to be
      resolved against the drafting party may not be applied in connection with
      the construction or interpretation of this Agreement.

	 	 
	6.8 	
      Successors and Assigns. Each of the Parties
      will not assign this Agreement or any rights or obligations hereunder
      without the prior written consent of the other Party. The provisions
      hereof will inure to the benefit of, and be binding upon, the successors
      and permitted assigns of the Parties. This Agreement is binding upon,
      inures to the benefit of and is enforceable by the Optionee, Grantor and
      their respective successors and assigns.

	 	 
	6.9 	
      Waiver.

	 	(a) 	
      No failure on the part of any Person to exercise any
      power, right, privilege or remedy under this Agreement, and no delay on
      the part of any Person in exercising any power, right, privilege or remedy
      under this Agreement, will operate as a waiver of such power, right,
      privilege or remedy; and no single or partial exercise of any such power,
      right, privilege or remedy will preclude any other or further exercise
      thereof or of any other power, right, privilege or remedy.

	 	 	 
	 	(b) 	
      No Person will be deemed to have waived any claim arising
      out of this Agreement, or any power, right, privilege or remedy under this
      Agreement, unless the waiver of such claim, power, right, privilege or
      remedy is expressly set forth in a written
instrument duly executed and delivered on behalf
  of such Person; and any such waiver will not be applicable or have any effect
  except in the specific instance in which it is given.

7 

	6.10 	
      Entire Agreement; Amendment. This Agreement
      constitutes the full and entire understanding and agreement between the
      Parties with regard to the subject matter hereof. Any term of this
      Agreement may be amended only with the written consent of each
    Party.

	 	 
	6.11 	
      Severability. In the event that any
      provision of this Agreement, or the application of any such provision to
      any Person or set of circumstances, will be determined to be invalid,
      unlawful, void or unenforceable to any extent, the remainder of this
      Agreement, and the application of such provision to Persons or
      circumstances other than those as to which it is determined to be invalid,
      unlawful, void or unenforceable, will not be impaired or otherwise
      affected and will continue to be valid and enforceable to the fullest
      extent permitted by law.

	 	 
	6.12 	
      Entire Agreement. This Agreement sets forth
      the entire understanding of the Parties relating to the subject matter
      hereof and supersedes all prior agreements and understandings among or
      between any of the parties relating to the subject matter
  thereof.

	 	 
	6.13 	
      Counterparts. This Agreement may be
      executed in several counterparts, each of which will constitute an
      original and all of which, when taken together, will constitute one
      agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

8 

          IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed and
delivered as of the date first set forth above. 

GRANTOR: 

LI GUIFANG, 
a resident of Hong
Kong Special 
Administrative Region 

 

/S/ LI
GUIFANG                                             

 

OPTIONEE: 

HENIAN WU, 
a citizen of the
People’s Republic of China 

 

/S/ HENIAN
WU                                        
 

 

 

 

 

 

[Signature Page to Option Agreement] 

EXHIBIT A 

CERTAIN DEFINITIONS 

For purposes of this Agreement (including this Exhibit
A): 

“Bankruptcy Law” means any Law of any
jurisdiction relating to bankruptcy, insolvency, corporate reorganization,
company arrangement, civil rehabilitation, special liquidation, moratorium,
readjustment of debt, appointment of a conservator, trustee or receiver, or
similar debtor relief. 

“Encumbrance” means any lien, pledge,
hypothecation, charge, mortgage, security interest, encumbrance, equity, trust,
equitable interest, claim, preference, right of possession, lease, tenancy,
license, encroachment, covenant, infringement, interference, order, proxy,
option, right of first refusal, preemptive right, community property interest,
legend, defect, impediment, exception, reservation, limitation, impairment,
imperfection of title, condition or restriction of any nature (including any
restriction on the transfer of any asset, any restriction on the receipt of any
income derived from any asset, any restriction on the use of any asset and any
restriction on the possession, exercise or transfer of any other attribute of
ownership of any asset). 

“Governmental Body” means any: (a) nation,
principality, state, commonwealth, province, territory, county, municipality,
district or other jurisdiction of any nature; (b) federal, state, local,
municipal, foreign or other government; (c) governmental or quasi-Governmental
Body of any nature (including any governmental division, subdivision,
department, agency, bureau, branch, office, commission, council, board,
instrumentality, officer, official, representative, organization, unit, body or
entity and any court or other tribunal); (d) multi-national organization or
body; or (e) individual, entity or body exercising, or entitled to exercise, any
executive, legislative, judicial, administrative, regulatory, police, military
or taxing authority or power of any nature. 

“Law” means any national, federal, state, local,
municipal, foreign or other law, statute, legislation, constitution, principle
of common law, resolution, ordinance, code, edict, decree, proclamation, treaty,
convention, rule, regulation, ruling, directive, pronouncement, requirement,
specification, determination, decision, opinion or interpretation issued,
enacted, adopted, passed, approved, promulgated, made, implemented or otherwise
put into effect by or under the authority of any Governmental Body. 

“Person” means an individual, a corporation, a
partnership, an association, a trust or other entity or organization, including
a government or political subdivision or an agency or instrumentality thereof.

10 

EXHIBIT B 

FORM OF EXERCISE NOTICE 

[Date] 

Li Guifang 

	 	
      Re: 
	
      Option Agreement dated, February 5, 2010 (the “Option
      Agreement”), between Li Guifang (the “Grantor”) and Henian Wu (the
      “Optionee”) 

Dear Sir: 

In accordance with Section 1.3 of the Option Agreement,
the undersigned Optionee hereby provides this notice of exercise of the Option
Right in the manner specified below: 

	 	(a) 	
      The Optionee hereby exercises its Option Right with
      respect to 14,725,400 of the Grantor’s Shares pursuant to the Option
      Agreement.

	 	 	 
	 	(b) 	
      The Optionee will pay the sum of $_147,254.00 to the
      Grantor.

	 	 	 
	 	(d) 	
      Pursuant to this exercise, the Grantor will deliver the
      shares to _Optionee______________in accordance with the instructions
      attached hereto.

 

Dated: _______________________
Wu Henian 

11

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