Document:

Unassociated Document

    AS
      THE CORPORATION IS NOT A REPORTING ISSUER IN ANY JURISDICTION OF CANADA, UNLESS
      PERMITTED UNDER CANADIAN SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY
      MUST NOT TRADE THE SECURITY IN CANADA AND MAY HAVE TO HOLD THE SECURITY FOR
      AN
      INDEFINITE PERIOD.

    

    NEITHER
      THESE WARRANTS NOR THE COMMON SHARES ISSUABLE UPON EXERCISE THEREOF HAVE BEEN
      REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
      "U.S.
      SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.
      THESE WARRANTS MAY NOT BE EXERCISED WITHIN THE UNITED STATES OR BY OR ON BEHALF
      OF A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT),
      EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S.
      SECURITIES ACT, AND EXEMPTIONS FROM APPLICABLE STATE SECURITIES LAWS, IN EACH
      CASE AFTER PROVIDING AN OPINION OF COUNSEL OR OTHER EVIDENCE SATISFACTORY TO
      THE
      CORPORATION TO SUCH EFFECT.

    

    NEITHER
      THESE WARRANTS NOR THE COMMON SHARES ISSUABLE UPON EXERCISE THEREOF MAY BE
      OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR DISPOSED OF
      EXCEPT: (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S.
      SECURITIES ACT; (B) IN A TRANSACTION OUTSIDE THE UNITED STATES MEETING THE
      REQUIREMENTS OF RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT OR (C)
      IN
      A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND, IN
      EACH CASE, IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS. PRIOR TO
      THE
      COMPLETION OF ANY SUCH TRANSACTION PURSUANT TO THE FOREGOING CLAUSES (B) OR
      (C),
      THE TRANSFEROR SHALL DELIVER TO THE CORPORATION A WRITTEN OPINION OF COUNSEL
      OR
      OTHER EVIDENCE SATISFACTORY TO THE CORPORATION TO THE EFFECT THAT SUCH
      TRANSACTION IS IN COMPLIANCE WITH THE REGISTRATION REQUIREMENTS OF ALL
      APPLICABLE UNITED STATES FEDERAL AND STATE SECURITIES LAWS. HEDGING TRANSACTIONS
      WITH RESPECT TO THESE WARRANTS AND THE COMMON SHARES ISSUABLE UPON EXERCISE
      THEREOF ARE PROHIBITED UNLESS THEY ARE CONDUCTED IN COMPLIANCE WITH THE U.S.
      SECURITIES ACT.

    

    This
      warrant certificate is void if not exercised on or before 5:00 p.m. (Edmonton
      time) on June 22, 2012.

    

    WARRANT
      CERTIFICATE

    DEEP
      WELL OIL & GAS, INC.

    

    (Incorporated
      under the laws of the State of Nevada and extra-provincially registered in
      the
      Province of Alberta, Canada)

     

    
 

    
      	
              WARRANT
                CERTIFICATE  

              NO. ___

            	 	__________  WARRANTS, each
              entitling the Holder to acquire one Common Share for each Warrant
              represented hereby 
	
            	 	 
	 	 	 

    

     

    

    THIS
      IS TO CERTIFY THAT, FOR VALUE RECEIVED

    

    Name

    Address
      

    

    (hereinafter
      referred to as the "Holder" or the "Warrantholder") is entitled to acquire
      for
      each Warrant represented hereby, in the manner and subject to the restrictions
      and adjustments set forth herein, at any time and from time to time until
      5:00 p.m. (Edmonton time) (the "Time of Expiry") on the Expiry Date (as
      hereinafter defined), one fully paid and non-assessable common share ("Common
      Share") of DEEP WELL OIL & GAS, INC. (the "Corporation"), at the Exercise
      Price (as hereinafter defined), subject to adjustment as herein
      provided.

     

    These
      Warrants may only be exercised at the principal office of the Corporation at
      510
      Royal Bank Building, 10117 Jasper Avenue, Edmonton, Alberta, T5J 1W8, or such
      other office as the Corporation may advise the Holder in writing. These Warrants
      are issued subject to the terms and conditions appended hereto as Schedule "A".

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Corporation has caused this Warrant Certificate to be
      executed by a duly authorized officer.

     

    
      	DATED
              this 22nd
              day of June, 2007. 	 	 
	 	
              DEEP
                WELL OIL & GAS, INC.

            
	 	 
	 	 
	 	Per:
              ____________________________________
	 	 	 

    

     

     

    (See
      terms and conditions attached hereto)

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    SCHEDULE
      "A"

    

    TERMS
      AND CONDITIONS FOR WARRANT

    

    ARTICLE 1 

    INTERPRETATION

    

    	1.1  	
            Definitions

          

     

    In
      these
      Terms and Conditions, unless there is something in the subject matter or context
      inconsistent therewith:

    

    	(a)  	
            "Common
              Shares" means the common shares in the capital of the
              Corporation;

          

     

    	(b)  	
            "Corporation"
              means Deep Well Oil & Gas, Inc.;

          

     

    	(c)  	
            "Current
              Market Price" of the Common Shares at any date means the simple average
              of
              the closing price per share for the Common Shares for any 10 consecutive
              trading days selected by the Corporation commencing not more than 45
              trading days before such date on the stock exchange on which the Common
              Shares are listed or, if such Common Shares are not listed on a stock
              exchange, such over-the-counter market on which the Common Shares are
              quoted or trade (provided that if on any day in such period no closing
              price per share for the Common Shares is reported on by such exchange
              or
              over-the-counter market for such day, the average of the reported closing
              bid and asked prices on such exchange or over-the-counter market on
              such
              day shall be deemed to be the closing price per share for the Common
              Shares for such day) of if the Common Shares are not listed or quoted
              on
              any stock exchange or over-the-counter market, a price determined by
              the
              board of directors of the Corporation acting
              reasonably;

          

     

    	(d)  	
            "Dividend
              Paid in the Ordinary Course" means a dividend declared payable on the
              Common Shares in any four consecutive quarters of the Corporation,
              whether
              in (1) cash, (2) securities of the Corporation, including rights, options
              or warrants (other than rights, options or warrants referred to in
              subsection 4.2(b))
              to purchase any securities of the Corporation or property or other
              assets
              of the Corporation, or (3) property or other assets of the Corporation,
              to
              the extent that the amount or value of such dividend together with
              the
              amount or value of all other dividends theretofore paid during such
              financial year (any such securities, property or other assets so
              distributed to be valued at the fair market value of such securities,
              property or other assets, as the case may be, as determined by the
              Corporation, which determination shall be conclusive, provided that,
              for
              the purposes of this definition, the fair market value of any Common
              Share
              distributed by way of dividend shall be conclusively determined by
              reference to the Current Market Price per Common Share on the date
              prior
              to the declaration of such dividend) does not exceed the greater
              of:

          

     

    	(i)  	
            150%
              of the aggregate amount and/or value of dividends declared payable
              by the
              Corporation on the Common Shares in the period of four consecutive
              financial quarters ended immediately prior to the first day of such
              financial year; and

          

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    	(ii)  	
            100%
              of the consolidated net income of the Corporation before extraordinary
              items (but after dividends payable on all shares ranking prior to or
              on a
              parity with respect to the payment of dividends with the Common Shares)
              in
              respect of the period of four consecutive financial quarters ended
              immediately prior to the first day of the current financial quarter
              (such
              consolidated net income, extraordinary items and dividends to be shown
              in
              the audited consolidated financial statements of the Corporation for
              such
              period of four consecutive financial quarters or if there are no audited
              consolidated financial statements for such period, computed in accordance
              with generally accepted accounting principles, consistent with those
              applied in the preparation of the most recent audited consolidated
              financial statements of the Corporation);

          

     

    	(e)  	
            "Exercise
              Price" means the price of US$1.20 per Common Share (subject to adjustment
              in certain events);

          

     

    	(f)  	
            "Expiry
              Date" means the 22nd
              day of June, 2012;

          

     

    	(g)  	
            "herein",
              "hereby" and similar expressions refer to these Terms and Conditions
              as
              the same may be amended or modified from time to time; and the expression
              "Article" and "Section" followed by a number refer to the specified
              Article or Section of these Terms and
              Conditions;

          

     

    	(h)  	
            "person"
              means an individual, corporation, partnership, trustee or any
              unincorporated organization and words importing persons have a similar
              meaning;

          

     

    	(i)  	
            "Time
              of Expiry" means 5:00 p.m. (Edmonton time) on the Expiry
              Date;

          

     

    	(j)  	
            "Warrant"
              means the warrant to acquire Common Shares evidenced by the Warrant
              Certificate issued to the Holder; and

          

     

    	(k)  	
            "Warrant
              Certificate" means the certificate to which these Terms and Conditions
              are
              attached.

          

     

    	1.2  	
            Gender

          

     

    Words
      importing the singular number include the plural and vice versa and words
      importing the masculine gender include the feminine and neuter
      genders.

    

    	1.3  	
            Interpretation
              Not Affected by Headings

          

     

    The
      division of these Terms and Conditions into Articles, Sections and Subsections
      and the insertion of headings are for convenience of reference only and shall
      not affect the construction or interpretation thereof.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    	1.4  	
            Applicable
              Law

          

     

    The
      terms
      hereof and of the Warrant shall be construed in accordance with the laws of
      the
      Province of Alberta and the laws of Canada applicable thereto.

    

    ARTICLE 2

     

    ISSUE
      OF WARRANT

    

    	2.1  	
            Issue
              of Warrants

          

     

    That
      number of Warrants set out on the Warrant Certificate are hereby created and
      authorized to be issued.

    

    	2.2  	
            Additional
              Warrants

          

     

    Subject
      to any other written agreement between the Corporation and the Warrantholder,
      the Corporation may at any time and from time to time undertake further equity
      or debt financing and may issue additional securities of any kind including
      Common Shares, warrants or grant options or similar rights to purchase Common
      Shares to any person.

    

    	2.3  	
            Issue
              in Substitution for Lost Warrants

          

     

    If
      the
      Warrant Certificate becomes mutilated, lost, destroyed or stolen:

    

    	(a)  	
            the
              Corporation shall, subject to subsection 2.3(b)
              hereof, issue and deliver a new Warrant Certificate of like date and
              tenor
              as the one mutilated, lost, destroyed or stolen, in exchange for and
              in
              place of and upon cancellation of such mutilated, lost, destroyed or
              stolen Warrant Certificate; and

          

     

    	(b)  	
            the
              Holder shall bear the cost of the issue of a new Warrant Certificate
              hereunder and in the case of the mutilation, loss, destruction or theft
              of
              the Warrant Certificate, shall, as a condition precedent to the issuance
              of a new Warrant Certificate, furnish to the Corporation such evidence
              of
              mutilation, loss, destruction, or theft as shall be satisfactory to
              the
              Corporation in its sole discretion and, if required by the Corporation,
              an
              indemnity in an amount and form satisfactory to the Corporation, in
              its
              discretion, and shall pay the reasonable charges of the Corporation
              in
              connection therewith.

          

     

    	2.4  	
            Warrantholder
              Not a Shareholder

          

     

    The
      Warrant Certificate shall not constitute the Holder a shareholder of the
      Corporation, nor entitle it to any right or interest in respect thereof except
      as may be expressly provided in the Warrant Certificate. The Corporation may
      deem and treat the Holder of the Warrant Certificate as the absolute owner
      thereof for all purposes and the Corporation shall not be affected by any notice
      to the contrary.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    	2.5  	
            Register
              of Warrants 

          

     

    At
      all
      times while Warrants are outstanding, the Corporation shall maintain a register
      of all holders of Warrants on which shall be entered the names, latest known
      addresses of all holders and if available, the telecopier numbers of such
      holders and particulars of the Warrants held by them and a register of transfers
      in which shall be entered the particulars of all transfers of Warrants, such
      registers to be kept by and at the office of the Corporation.

     

    	2.6  	
            Transfer

          

     

    Warrants
      may only be transferred on the register of the Corporation by the Holder thereof
      or its legal representatives or its attorney duly appointed by an instrument
      in
      writing in form and execution satisfactory to the Corporation in accordance
      with
      applicable laws. The Warrants and the Common Shares issuable thereunder are
      and
      may continue to be subject to resale restrictions and hold periods, and holders
      should consult their legal advisors in respect of the same. Such transfer will
      be effected upon surrender to the Corporation of this Warrant Certificate for
      cancellation and the duly completed and executed Transfer Form attached hereto
      as Appendix
      1
      and upon
      compliance, to the reasonable satisfaction of the Corporation,
      with:

    

    	(a)  	
            the
              conditions herein;

          

     

    	(b)  	
            such
              reasonable requirements as the Corporation may require;
              and

          

     

    	(c)  	
            all
              applicable securities legislation and requirements of regulatory
              authorities and all stock exchanges upon which the Common Shares are
              listed from time to time, as applicable.

          

     

    	2.7  	
            Default
              on Issuance of Common Shares

          

     

    Notwithstanding
      anything contained in this Warrant Certificate, if for any reason, other than
      the failure or default of the Holder of the Warrants, the Corporation is unable
      to issue and deliver the Common Shares as contemplated within this Warrant
      Certificate to the Holder upon the proper exercise by the Holder of the right
      to
      purchase any of the Common Shares covered by this Warrant Certificate, the
      corporation, at the option of the Holder, must pay to the Holder, in cash,
      an
      amount equal to the difference between the Exercise Price and the Current Market
      Price of the Common Shares on the Exercise Date, for each Common Share that
      is
      not delivered, in complete satisfaction of its obligations with respect to
      the
      particular Warrant for which the Common Share was not issued.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE 3  

     

    EXERCISE
      OF THE WARRANT

     

    
      	3.1  	
              No
                Registration under U.S. Securities
                Act

            

    

     

    The
      Warrants may not be exercised within the United States, or by or on behalf
      of a
“U.S. Person” (as defined in Regulation S under the United States Securities Act
      of 1933, as amended (the “U.S. Securities Act”)), nor will certificates
      representing Common Shares issuable upon exercise of the Warrants be delivered
      in the United States, except pursuant to an exemption from the registration
      requirements of the U.S. Securities Act and exemptions from applicable state
      securities laws. Any person who proposes to exercise a Warrant shall provide
      to
      the Corporation, as contemplated in Appendix
      2,
      either
      (i) written certification that, among other things, the Warrant is not being
      exercised within the United States or by or on behalf of a U.S. Person, (ii)
      a
      written opinion of counsel or other evidence satisfactory to the Corporation
      to
      the effect that the issuance of Common Shares upon exercise of such Warrant
      is
      not required to be registered under the U.S. Securities Act and applicable
      state
      securities laws or (iii) written confirmation by the person exercising the
      Warrant that it is the original purchaser thereof and reaffirming, as of the
      date of such exercise, the representations, warranties made by it in the
      subscription agreement pursuant to which it purchased the Warrant. Common Shares
      issuable upon exercise of Warrants by a person in the United States or by or
      on
      behalf of a U.S. Person may, if so determined by the Corporation in its sole
      discretion, bear a legend restricting transfer.

     

    	3.2  	
            Method
              of Exercise of The Warrant

          

     

    The
      Holder may exercise the right hereby conferred on the Holder to acquire Common
      Shares (subject to the provisions of this Article 3) by:

     

    	(a)  	
            duly
              completing and executing the Warrant Exercise Form attached hereto
              as
              Appendix 2;
              and

          

     

    	(b)  	
            certifying
              that the Holder or (if different) the recipient of the Common Shares
              to be
              issued upon exercise of the Warrant either: (i) is not (a) a "U.S.
              Person", (b) exercising the Warrant(s) on behalf of a "U.S. Person",
              and
              (c) in the United States at the time that the Warrant(s) are exercised
              and
              did not execute or deliver the Warrant Exercise Form in the United
              States;
              or (ii) at or prior to the time of such exercise, has delivered to
              the
              Corporation a written opinion of counsel or other evidence satisfactory
              to
              the Corporation to the effect that the issuance of Common Shares upon
              such
              exercise is not required to be registered under the U.S. Securities
              Act
              and applicable state securities laws; or (iii) is the original purchaser
              of the Warrants and confirms as of the date of such exercise, the
              representations, warranties and agreements made by it in the subscription
              agreement pursuant to which the Warrant was purchased by it;
              and

          

     

    	(c)  	
            surrendering
              this certificate, together with the Holder’s certified cheque or a bank
              draft, money order or wire transfer in the full amount of the total
              aggregate Exercise Price of the Common Shares being purchased, together
              with the duly completed and executed Warrant Exercise Form, to the
              Corporation at its offices,

          

     

    at
      any
      time up until the Time of Expiry. This Warrant Certificate shall be deemed
      to be
      surrendered only upon personal delivery thereof to, or if sent by mail or other
      means of transmission, upon actual receipt thereof by, the Corporation at its
      offices.

    

    	3.3  	
            Effect
              of Exercise of the Warrant

          

     

    	(a)  	
            Upon
              surrender and payment as aforesaid the Common Shares so subscribed
              for
              shall be issued as fully paid and non-assessable shares, free from
              all
              liens, charges and encumbrances and the Holder shall become the Holder
              of
              record of such Common Shares on the date of such surrender and
              payment;

          

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    	(b)  	
            Within
              ten (10) business days after surrender and payment as aforesaid, the
              Corporation shall forthwith cause the issuance of and mail to the Holder
              a
              certificate for the Common Shares purchased as
              aforesaid;

          

     

    	(c)  	
            Notwithstanding
              anything herein contained including any adjustment provided for in
              Article 4,
              the Corporation shall not be required, upon the exercise of any Warrants,
              to issue fractions of Common Shares or to distribute certificates which
              evidence fractional Common Shares. Any fractional Common Shares that
              would
              otherwise be issuable upon the exercise of Warrants shall be cancelled
              by
              the Corporation without compensation to the Holder thereof;
              and

          

     

    	(d)  	
            Notwithstanding
              anything herein contained, no Common Shares will be issued pursuant
              to the
              exercise of any Warrant if the issuance of such Common Shares would
              constitute a violation of the securities laws of any applicable
              jurisdiction or the requirements of any applicable stock exchange,
              and
              without limiting the generality of the foregoing, in the event that
              any of
              the Warrants are exercised prior to expiry of any hold period or other
              resale restriction placed thereon by such laws or requirements, the
              certificates evidencing the Common Shares thereby issued will bear
              such
              legend as is required under applicable securities laws and that, in
              the
              opinion of legal counsel to the Corporation, is necessary in order
              to
              avoid a violation of any such laws or requirements.

          

     

    	3.4  	
            Subscription
              for Less than Entitlement

          

     

    The
      Holder may subscribe for and purchase a number of Common Shares less than the
      number which it is entitled to purchase pursuant to the surrendered Warrant
      Certificate. In the event of any purchase of a number of Common Shares less
      than
      the number which can be purchased pursuant to the Warrant Certificate, the
      Corporation shall forthwith issue and deliver to the Holder a new Warrant
      Certificate containing the same terms and conditions as disclosed herein to
      purchase that number of Common Shares with respect to which such partial
      exercise did not apply.

    

    	3.5  	
            Resale
              Restrictions

          

     

    As
      the
      Corporation is not a reporting issuer in any jurisdiction of Canada, unless
      permitted under Canadian securities legislation, the Holder of this security
      must not trade the security in Canada and may have to hold the security for
      an
      indefinite period.

     

    	3.6  	
            Expiration
              of the Warrant

          

     

    After
      the
      Time of Expiry, all rights hereunder shall wholly cease and terminate and the
      Warrant Certificate and the Warrants shall be void and of no further force
      and
      effect.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE 4

     

    ADJUSTMENTS

    

    	4.1  	
            Adjustment
              of Number of Common Shares

          

     

    The
      acquisition rights in effect at any date attaching to the Warrants shall be
      subject to adjustment from time to time as follows:

    

    	(a)  	
            If
              and whenever at any time after the date hereof and prior to the Time
              of
              Expiry, any adjustment in the Exercise Price or in the calculation
              thereof
              pursuant to Section 4.2
              shall occur as a result of:

          

     

    	(i)  	
            an
              event referred to in subsection 4.2(a);

          

     

    	(ii)  	
            the
              fixing by the Corporation of a record date for an event referred to
              in
              subsection 4.2(b);
              or

          

     

    	(iii)  	
            the
              fixing by the Corporation of a record date for an event referred to
              in
              subsection 4.2(c)
              if
              such event constitutes the issue or distribution to the holders of
              all or
              substantially all of its outstanding Common Shares
              of:

          

     

    	(A)  	
            Common
              Shares, or

          

     

    	(B)  	
            securities
              exchangeable for or convertible into Common Shares at less than the
              Current Market Price of the Common Shares on such record date,
              or

          

     

    	(C)  	
            rights,
              options or warrants to acquire Common Shares at an exercise, exchange
              or
              conversion price per Common Share less than the Current Market Price
              of
              the Common Shares on such record date,

          

     

    the
      number of Common Shares obtainable upon the subsequent exercise of the Warrant
      shall be adjusted simultaneously with the adjustment in the Exercise Price
      pursuant to Section 4.2
      by
      multiplying the number of Common Shares theretofore obtainable on the exercise
      thereof immediately prior to such adjustment by a fraction of which the
      numerator shall be the total number of Common Shares outstanding immediately
      after such date and the denominator shall be the total number of Common Shares
      outstanding immediately prior to such date. To the extent that any adjustment
      in
      subscription rights occurs pursuant to this subsection 4.1(a)
      as a
      result of the distribution of securities convertible into or exchangeable for
      Common Shares referred to in subsection 4.2(a)
      or as a
      result of the fixing by the Corporation of a record date for the distribution
      of
      rights, options or warrants referred to in subsection 4.2(b),
      the
      number of Common Shares purchasable upon exercise of a Warrant shall be
      readjusted immediately after the expiration of any relevant exchange, conversion
      or exercise right to the number of Common Shares which would be purchasable
      based upon the
      number of Common Shares actually issued and remaining issuable immediately
      after
      such expiration, and shall be further readjusted in such manner upon expiration
      of any further such right. To the extent that any such adjustment in
      subscription rights occurs pursuant to this subsection 4.1(a)
      as a
      result of the fixing by the Corporation of a record date for the distribution
      referred to in subsection 4.2(c)
      of
      rights, options or warrants or exchangeable or convertible securities, the
      number of Common Shares purchasable upon exercise of a Warrant shall be
      readjusted immediately after the expiration of any relevant exchange, conversion
      or exercise right to the number which would be purchasable pursuant to this
      subsection 4.1(a)
      if the
      fair market value of such rights, options or warrants or other exchangeable
      or
      convertible securities had been determined for the purposes of the adjustment
      pursuant to this subsection 4.1(a)
      on the
      basis of the number of Common Shares issued and remaining issuable immediately
      after such expiration, and shall be further readjusted in such manner upon
      expiration of any further right.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    	(b)  	
            If
              and whenever at any time after the date hereof and prior to the Time
              of
              Expiry there is a reclassification of the Common Shares or a capital
              reorganization of the Corporation other than as described in subsection
              4.2(a)
              or
              a consolidation, amalgamation or merger of the Corporation (including,
              without limitation, by way of plan of arrangement) with or into any
              other
              body corporate, trust, partnership or other entity, or a sale or
              conveyance of the property and assets of the Corporation as an entirety or
              substantially as an entirety to any other body corporate, trust,
              partnership or other entity, any Warrantholder who has not exercised
              his
              right of acquisition prior to the effective date of such reclassification,
              reorganization, consolidation, amalgamation, merger, sale or conveyance,
              upon the exercise of such right thereafter, shall be entitled to receive
              and shall accept, in lieu of the number of Common Shares then sought
              to be
              acquired by it, the kind and number of shares or other securities or
              property of the Corporation or of the body corporate, trust, partnership
              or other entity resulting from such reclassification, reorganization,
              consolidation, amalgamation or merger, or to which such sale or conveyance
              may be made, as the case may be, that such Holder would have been entitled
              to receive as a result of such reclassification, reorganization,
              consolidation, amalgamation, merger, sale or conveyance, if, on the
              record
              date or the effective date thereof, as the case may be, the Warrantholder
              had been the registered Holder of the number of Common Shares to which
              the
              Holder was theretofore entitled upon exercise. If determined appropriate
              by the board of directors of the Corporation to give effect to or to
              evidence the provisions of this subsection 4.1(b),
              the Corporation, its successor, or such purchasing body corporate,
              partnership, trust or other entity, as the case may be, shall prior
              to or
              contemporaneously with any such reclassification, reorganization,
              consolidation, amalgamation, merger, sale or conveyance, enter into
              an
              agreement or new Warrant Certificate which shall provide, to the extent
              possible, for the application of the provisions set forth in this Warrant
              Certificate with respect to the rights and interests thereafter of
              the
              Warrantholder to the end that the provisions set forth in this Warrant
              shall thereafter correspondingly be made applicable, as nearly as may
              reasonably be, with respect to any shares, other securities or property
              to
              which a Warrantholder is entitled on the exercise of its acquisition
              rights thereafter and upon entering into such new Warrant Certificate
              or
              agreement, the Corporation shall cease to have any obligations (including
              the obligation to issue any Common Shares) hereunder and the Holder
              shall
              cease to have any rights hereunder. Any Warrant Certificate or agreement
              entered into pursuant to the provisions of this subsection 4.1(b)
              shall be an agreement entered into pursuant to the provisions of
              Article 6.
              Any Warrant Certificate or agreement entered into between the Corporation,
              any successor to the Corporation or such purchasing body corporate,
              partnership, trust or other entity shall provide for adjustments which
              shall be as nearly equivalent as may be practicable to the adjustments
              provided in this Article 4
              and which shall apply to successive reclassifications, reorganizations,
              consolidations, amalgamations, mergers, sales or
              conveyances.

          

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    	4.2  	
            Adjustment
              of
              Exercise Price

          

     

    The
      Exercise Price in effect at any date attaching to the Warrants shall be subject
      to adjustment from time to time as follows:

    

    	(a)  	
            If
              and whenever after the date hereof and at any time prior to the Time
              of
              Expiry, the Corporation shall:

          

     

    	(i)  	
            subdivide,
              divide or change its outstanding Common Shares into a greater number
              of
              Common Shares;

          

     

    	(ii)  	
            consolidate,
              reduce or combine its outstanding Common Shares into a lesser number
              of
              Common Shares;

          

     

    	(iii)  	
            make
              any distribution, other than by way of Dividend Paid in the Ordinary
              Course, to the holders of all or substantially all of the outstanding
              Common Shares payable in Common Shares;

          

     

    
      	 	
              the
                Exercise Price in effect on the effective date of such events referred
                to
                in subsections 4.2(a)(i),
                4.2(a)(ii),
                or 4.2(a)(iii)
                shall be adjusted to equal the price determined by multiplying the
                Exercise Price in effect immediately prior to such effective date
                by a
                fraction of which the numerator shall be the total number of Common
                Shares
                outstanding immediately prior to such date and the denominator shall
                be
                the total number of Common Shares immediately after such date. Such
                adjustment shall be made successively whenever any event referred
                to in
                this subsection 4.2(a)
                shall occur.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    	(b)  	
            If
              and whenever at any time after the date hereof, the Corporation shall
              fix
              a record date which is prior to the Time of Expiry for the issue of
              rights, options or warrants to all or substantially all the holders
              of
              outstanding Common Shares under which such holders are entitled during
              a
              period expiring not more than sixty (60) days after the record date
              for
              such issue to subscribe for or purchase Common Shares, or securities
              convertible into or exchangeable for Common Shares, at a price per
              Common
              Share or having a conversion or exchange price per Common Share less
              than
              the Current Market Price per Common Share on such record date, the
              Exercise Price shall be adjusted immediately after such record date
              so
              that it shall equal the price determined by multiplying the Exercise
              Price
              in effect on such record date by a fraction of which the numerator
              shall
              be the total number of Common Shares outstanding on such record date
              plus
              a number of Common Shares equal to the number arrived at by dividing
              the
              aggregate price of the total number of additional Common Shares offered
              for subscription or purchase, or the aggregate conversion or exchange
              price of the convertible securities so offered, by such Current Market
              Price per Common Share, and of which the denominator shall be the total
              number of Common Shares outstanding on such record date plus the total
              number of additional Common Shares offered for subscription or purchase
              (or into which the convertible securities so offered are convertible
              or
              exchangeable). If by the terms of the rights, options or warrants referred
              to in this subsection 4.2(b),
              there is more than one purchase, conversion or exchange price per Common
              Share, the aggregate price of the total number of additional Common
              Shares
              offered for subscription or purchase, or the aggregate conversion or
              exchange price of the convertible securities so offered, shall be
              calculated for purposes of the adjustment on the basis of the lowest
              purchase, conversion or exchange price per Common Share, as the case
              may
              be. Any Common Shares owned by or held for the account of the Corporation
              or any subsidiary of the Corporation shall be deemed not to be outstanding
              for the purpose of any such computation. To the extent that any adjustment
              in Exercise Price occurs pursuant to this subsection 4.2(b)
              as
              a result of the fixing by the Corporation of a record date for the
              distribution of rights, options or warrants referred to in this subsection
              4.2(b),
              the Exercise Price shall be readjusted immediately after the expiration
              of
              any relevant exchange, conversion or exercise right to the Exercise
              Price
              which would then be in effect based upon the number of Common Shares
              actually issued and remaining issuable after such expiration, and shall
              be
              further readjusted in such manner upon expiration of any further such
              right.

          

     

    	(c)  	
            If
              and whenever at any time prior to the Time of Expiry, the Corporation
              shall fix a record date which is prior to the Time of Expiry for the
              issue
              or distribution to all or substantially all the holders of its outstanding
              Common Shares of:

          

     

    	(i)  	
            shares
              of any class other than Common Shares (excluding Dividends Paid in
              the
              Ordinary Course);

          

     

    	(ii)  	
            rights,
              options or warrants (excluding those referred to in subsection
              4.2(b));

          

     

    	(iii)  	
            evidences
              of its indebtedness; or

          

     

    	(iv)  	
            any
              other property or assets (excluding Dividends Paid in the Ordinary
              Course);

          

     

    then,
      and
      in each such case, the Exercise Price shall be adjusted immediately after such
      record date so that it shall equal the price determined by multiplying the
      Exercise Price in effect on such record date by a fraction, of which the
      numerator shall be the total number of Common Shares outstanding on such record
      date multiplied by the Current Market Price on such record date, less the
      aggregate fair market value (as determined by the Corporation, which
      determination shall be conclusive) of such shares, rights, options, warrants,
      evidences of indebtedness or assets so issued or distributed, and of which
      the
      denominator shall be the total number of Common Shares outstanding on such
      record date multiplied by such Current Market Price, and any Common Shares
      owned
      by or held for the account of the Corporation or any subsidiary of the
      Corporation shall be deemed not to be outstanding for the purpose of any such
      computation. Such adjustment shall be made successively whenever such a record
      date is fixed, and to the extent that such distribution is not so made, the
      Exercise Price shall then be readjusted to the Exercise Price which would then
      be in effect if such record date had not been fixed or to the Exercise Price
      which would then be in effect based upon such shares, rights, options, warrants,
      evidences of indebtedness or assets actually distributed, as the case may
      be.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    	4.3  	
            General
              Adjustments

          

     

    	(a)  	
            If
              necessary, appropriate adjustments shall be made in the application
              of the
              provisions set forth in this Article 4
              with respect to the rights and interests thereafter of the holders
              of
              Warrants to the end that the provisions set forth in this Article 4
              shall thereafter correspondingly be made applicable as nearly as may
              reasonably be possible in relation to any shares or other securities
              or
              property thereafter deliverable upon the exercise of any Warrant. Any
              such
              adjustments shall be made by and set forth in an amendment to this
              Warrant
              Certificate hereto approved by the directors of the Corporation and
              shall
              for all purposes conclusively be deemed to
              be
              an appropriate adjustment.

          

     

    	(b)  	
            If
              any case in which this Article 4
              shall require that an adjustment shall become effective immediately
              after
              a record date for an event referred to herein, the Corporation may
              defer,
              until the occurrence of such event, issuing to the Holder of any Warrant
              exercised after such event the additional Common Shares issuable upon
              such
              conversion by reason of the adjustment required by such event before
              giving effect to such adjustment; provided, however, that the Corporation
              shall deliver to such Holder an appropriate instrument evidencing such
              Holder's right to receive such additional Common Shares upon the
              occurrence of the event requiring such adjustment and the right to
              receive
              any distributions made on such additional Common Shares declared in
              favour
              of holders of record of Common Shares on and after the relevant date
              of
              exercise or such later date as such Holder would, but for the provisions
              of this subsection 4.3(b),
              have become the Holder of record of such additional Common Shares as
              a
              result of the exercise of the Warrants.

          

     

    	(c)  	
            No
              adjustment in the Exercise Price or in the number of shares to be issued
              pursuant to the exercise of the Warrants shall be required unless such
              adjustment would result in a change of at least 1% in the Exercise
              Price
              then in effect or unless the number of shares to be issued would change
              by
              at least 1/100th of a share, provided, however, that any adjustments
              which, except for the provisions of this subsection 4.3(c)
              would otherwise have been required to be made, shall be carried forward
              and taken into account in any subsequent
              adjustment.

          

     

    	(d)  	
            The
              adjustments provided for in this Article 4
              in
              the Exercise Price and in the number and classes of shares which are
              to be
              received on the exercise of Warrants are cumulative. After any adjustment
              pursuant to this Section, the term "Common Shares" where used in this
              Warrant shall be interpreted to mean the shares or other securities
              or
              property of the Corporation which, as a result of all prior adjustments
              pursuant to this Section, the Warrantholder is entitled to receive
              upon
              the exercise of his Warrant, and the number of Common Shares indicated
              in
              any subscription made pursuant to a Warrant shall be interpreted to
              mean
              the number and kind of securities or property which, as a result of
              all
              prior adjustments pursuant to this Article 4,
              a
              Warrantholder is entitled to receive upon the full exercise of a Warrant
              entitling the Holder thereof to purchase the number of Common Shares
              so
              indicated.

          

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    	(e)  	
            All
              securities and property which a Warrantholder is at the time in question
              entitled to receive on the full exercise of his Warrant, whether or
              not as
              a result of adjustments made pursuant to this Section, shall, for the
              purposes of the interpretation of this Warrant be deemed to be securities
              and property which such Warrantholder is entitled to purchase pursuant
              to
              such Warrant.

          

     

    	4.4  	
            Notice
              of Adjustment

          

     

    Whenever
      the number of Common Shares purchasable upon the exercise of each Warrant or
      the
      Exercise Price of such Common Shares is adjusted, as herein provided, the
      Corporation shall promptly send to the Warrantholder by first class mail,
      postage prepaid, notice of such adjustment or adjustments.

     

    ARTICLE 5  

     

    COVENANTS
      BY THE CORPORATION

    

    	5.1  	
            Covenants
              by the Corporation

          

     

    The
      Corporation hereby covenants and agrees as follows:

    

    	(a)  	
            it
              will at all times maintain its corporate existence and will carry on
              its
              business as currently carried on;

          

     

    	(b)  	
            it
              will reserve and there will remain unissued out of its authorized capital
              a sufficient number of Common Shares to satisfy the rights of acquisition
              provided for in the Warrant Certificate;
              and

          

     

    	(c)  	
            all
              Common Shares issued upon exercise of the right to purchase provided
              for
              herein shall, upon payment of the Exercise Price therefor, be issued
              as
              fully paid and non-assessable shares.

          

     

    ARTICLE 6  

     

    MERGER
      AND SUCCESSORS

    

    	6.1  	
            Corporation
              May Consolidate, etc. on Certain Terms

          

     

    Nothing
      herein contained shall prevent any consolidation, reorganization, amalgamation,
      arrangement or merger of the Corporation with or into any other body corporate,
      trust, partnership or other entity, or a conveyance or transfer of all or
      substantially all the properties and assets of the Corporation as an entirety
      or
      substantially as an entirety to any other body corporate, trust, partnership
      or
      other entity lawfully entitled to acquire and operate same, provided, however,
      that the other body corporate, trust, partnership or other entity formed by
      such
      reorganization, consolidation, amalgamation, arrangement or merger or which
      acquires by conveyance or transfer all or substantially all the properties
      and
      assets of the Corporation shall, simultaneously with such reorganization,
      consolidation, amalgamation, arrangement, merger, conveyance or transfer, assume
      the due and punctual performance and observance of all the covenants and
      conditions hereof to be performed or observed by the Corporation.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    	6.2  	
            Successor
              Corporation Substituted

          

     

    In
      case
      the Corporation, pursuant to Section 6.1,
      shall
      be reorganized, consolidated, amalgamated, arranged, or merged with or into
      any
      other body corporate, trust, partnership or other entity, or shall convey or
      transfer all or substantially all of its properties and assets as an entirety
      or
      substantially as an entirety to any other body corporate, trust, partnership
      or
      other entity, the successor formed by such reorganization, consolidation,
      amalgamation, arrangement or merger or into which the Corporation shall have
      been reorganized, consolidated, amalgamated, arranged or merged or which shall
      have received a conveyance or transfer as aforesaid, shall succeed to and be
      substituted for the Corporation hereunder and such changes in phraseology and
      form (but not in substance) may be made in the Warrant Certificate and herein
      as
      may be appropriate in view of such reorganization, consolidation, amalgamation,
      arrangement, merger, conveyance or transfer.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

      APPENDIX 1 

       

    

    TRANSFER
      FORM

    

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers to
      _____________________________________, __________________ Warrants of
Deep
      Well Oil & Gas, Inc. registered
      in the name of the undersigned on the records of Deep
      Well Oil & Gas, Inc. represented
      by the Warrant Certificate attached hereto and irrevocably appoints Deep
      Well Oil & Gas, Inc. the
      attorney of the undersigned to transfer the said securities on the books or
      register with full power of substitution. 

    

    DATED
      the
      ______ day of ________________, 200__.

    

    

    
      	 	 	 
	Signature Guaranteed 	 	Signature of Holder 
	 	 	 

    

    

    Instructions:

    

    
      	
              1.

            	
              The
                signature of the Holder must be the signature of the person appearing
                on
                the face of this Certificate.

            

    

    

    
      	
              2.

            	
              If
                the Transfer Form is signed by a trustee, executor, administrator,
                curator, guardian, attorney, officer of a corporation or any person
                acting
                in a judiciary or representative capacity, the certificate must be
                accompanied by evidence of authority to sign satisfactory to the
                Corporation.

            

    

    

    
      	
              3.

            	
              The
                signature on the Transfer Form must be guaranteed by an authorized
                officer
                of a chartered bank, trust Corporation or an investment dealer who
                is a
                member of a recognized stock
                exchange.

            

    

    

    
      	
              4.

            	
              Warrants
                shall only be transferable in accordance with applicable laws. The
                Warrants and the Common Shares issuable thereunder are subject to
                resale
                restrictions and hold periods which will prevent the Holder, except
                in
                very limited circumstances from trading such securities. Holders
                should
                consult their legal advisors in this
                regard.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    APPENDIX 2

     

    WARRANT
      EXERCISE FORM

    

    TO: Deep
      Well
      Oil & Gas, Inc.

    

    The
      undersigned Holder of the within Warrant(s) hereby subscribes for
      _______________ Common Shares of Deep Well Oil & Gas, Inc. (the
      "Corporation") (or such number of Common Shares or other securities or property
      to which such exercise entitles the undersigned in lieu thereof or in addition
      thereto under the provisions of the Warrant Certificate) pursuant to the within
      Warrant(s) at US$1.20 per share (or the adjusted dollar amount per share at
      which the undersigned is entitled to purchase such shares under the provisions
      of the Warrant(s) subscribed for above) prior to 5:00 p.m. (Edmonton time)
      on
      the Expiry Date on the terms specified in the said Warrant Certificate, which
      certificate is surrendered to the Corporation and which will, upon the issuance
      of the Common Shares referred to above and the issuance of a new Warrant for
      any
      outstanding rights of the surrendered Warrant, be null and void. The undersigned
      also encloses herewith a certified cheque, bank draft or money order or has
      transmitted good same day funds by wire or other similar transfer, in lawful
      money of the United States, payable to or to the order of Deep Well Oil &
Gas, Inc. in payment of the exercise price.

    

    In
      order
      to exercise any Warrants represented by this certificate, the person exercising
      Warrant(s) must check one of the following:

     

    [PLEASE
      CHECK ONE]

     

    	o 	
            The
              undersigned Holder (i) at the time of exercise of these Warrants is
              not in
              the United States; (ii) is not a "U.S. person" as defined in Regulation
              S
              under the United States Securities Act of 1933, as amended (the "U.S.
              Securities Act"), and is not exercising these Warrants on behalf of
              a
              "U.S. person"; (iii) did not acquire the Warrants in the United States;
              (iv) did not execute or deliver this Warrant Exercise Form in the United
              States; or

          

    	 	 

    	o 	
            The
              undersigned certifies that an exemption from registration under the
              U.S.
              Securities Act and any applicable state securities laws is available,
              and
              attached hereto is an opinion of counsel to such effect, it being
              understood that any opinion of counsel tendered in connection with
              the
              exercise of these Warrants must be in form and substance satisfactory
              to
              the Corporation; or

          

    	 	 

    	o 	
            The
              undersigned certifies that the undersigned is the original purchaser
              of
              the Warrant(s) being exercised and confirms as of the date hereof,
              the
              representations, warranties and agreements made by the undersigned
              in the
              subscription agreement pursuant to which such Warrant(s) was acquired
              by
              it.

          

    

    The
      undersigned directs that the said Common Shares hereby exercised, be issued
      and
      delivered as follows:

    

    
      	Name in full 	 	Address(es) (Include Postal
              Code) 	 	# of Common
              Shares 
	 	 	 	 	 
	 	 	 	 	 
	(Please print full name
              in which
              certificates are to be issued. If any of the securities are to be issued
              to a person or persons other than the undersigned, the undersigned
              Holder
              must pay to the Corporation all requisite taxes or other governmental
              charges.)

    

      

    
      
        	
                DATED
                  this
                  

              	
                 day
                  of

              	
                ,
                  200

              	
                 .

              
	 	 	 	 
	 	 	 
	
                Witness

              	 	
                 Signature
                  of Warrantholder (or its representative if not an
                  individual).

              
	 	 	 	 
	 	 	 	
                 

              
	
                Print
                  name and address of Warrantholder in full

              	 	 
	 	 	 	 
	
                Name:

              	 	
                 Address:
                  

              
	 	 	 
	
                Title
                  of person signing on behalf of Holder (if

              	 	 
	
                subscriber
                  is not an individual):

              	 	 
	 	 	 
	 	 	 
	
              	 	
                Signature
                  Guaranteed

              

      

    

      

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    	1.  	
            If
              the Warrant Exercise Form indicates that Common Shares are to be issued
              to
              a person or persons other than the registered Holder of the certificate,
              the signature of such Holder of the Warrant Exercise Form must be
              guaranteed by an authorized officer of a chartered bank, trust corporation
              or an investment dealer who is a member of a recognized stock
              exchange.

          

     

    	2.  	
            If
              the Warrant Exercise Form is signed by a trustee, executor, administrator,
              curator, guardian, attorney, officer of a corporation or any person
              acting
              in a judiciary or representative capacity, the certificate must be
              accompanied by evidence of authority to sign satisfactory to the
              Corporation.

          

     

    	3.  	
            If
              the registered Holder exercises its right to receive Common Shares
              prior
              to expiry of any hold period or other resale restriction placed on
              the
              Warrants by the securities laws of any applicable jurisdiction or the
              requirements of any applicable stock exchange, the certificates evidencing
              the Common Shares thereby issued will bear such legend as is required
              under applicable securities laws and that, in the opinion of legal
              counsel
              to the Corporation, be necessary in order to avoid a violation of any
              such
              laws or requirements.Unassociated Document

    EXHIBIT
      4.1

     

    SECURITIES
      PURCHASE AGREEMENT

     

    This
      Securities Purchase Agreement (this “Agreement”)
      is
      dated as of October 24, 2006, among Asian Financial, Inc., a Wyoming corporation
      (the “Company”)
      and the
      investors identified on the signature pages hereto (each, an “Investor”
      and
      collectively, the “Investors”).

     

    WHEREAS,
      subject to the terms and conditions set forth in this Agreement and pursuant
      to
      Section 4(2) of the Securities Act (as defined below) and Rule 506 promulgated
      thereunder, the Company desires to issue and sell to each Investor, and each
      Investor, severally and not jointly, desires to purchase from the Company
      certain securities of the Company, as more fully described in this
      Agreement.

     

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

     

    ARTICLE
      1.

    DEFINITIONS

     

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

     

    “2006
      Make Good Shares” has
      the
      meaning set forth in Section 4.10(a).

     

    “2007
      ATNI” has
      the
      meaning set forth in Section 4.10(b).

     

    “2007
      EPS” has
      the
      meaning set forth in Section 4.10(b).

     

    “2007
      Make Good Shares” has
      the
      meaning set forth in Section 4.10(b).

     

    “2008
      ATNI” has
      the
      meaning set forth in Section 4.10(b).

     

    “2008
      EPS” has
      the
      meaning set forth in Section 4.10(b).

     

    “2008
      Make Good Shares” has
      the
      meaning set forth in Section 4.10(b).

     

    “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.

     

    “Additional
      Shares”
      has the
      meaning set forth in Section 4.16. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Adjusted
      Unaudited Working Capital Amount” has
      the
      meaning set forth in Section 4.16.

     

    “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 or the State of
      California 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 Shares 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.

     

    “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.

     

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

     

    “Current
      Assets”
      means
      the current assets of the Company, as determined in accordance with GAAP
      applying consistent principles, practices, methodologies and policies, as set
      forth in the audited consolidated financial statements of the Company for the
      fiscal year ended June 30, 2006.

     

    “Current
      Liabilities”
      means
      the current Liabilities of the Company, as determined in accordance with GAAP
      applying consistent principles, practices, methodologies and policies, as set
      forth in the audited consolidated financial statements of the Company for the
      fiscal year ended June 30, 2006.

     

    “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.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    "Escrow
      Agreement"
      means
      the Escrow Agreement, dated as of the date hereof, between the Company and
      the
      escrow agent (the “Escrow
      Agent”)
      set
      forth therein, in the form of Exhibit
      A
      hereto.

     

    “Event
      Date”
      has the
      meaning set forth in Section 4.11.

     

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

     

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

     

    “Guaranteed
      NI” has
      the
      meaning set forth in Section 4.10(a).

     

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

     

    “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 4.6.

     

    “June
      30th
      Audited Working Capital Amount”
      means
      the dollar amount of Current Assets minus Current Liabilities, as reflected
      in
      the audited consolidated financial statements of the Company for the fiscal
      year
      ended June 30, 2006.

     

    “Liabilities”
      means
      any and all debts, liabilities, commitments and obligations of any kind of
      the
      Company, whether fixed, contingent or absolute, matured or unmatured, liquidated
      or unliquidated, accrued or not accrued, asserted or not asserted, known or
      unknown, determined, determinable or otherwise, whenever or however arising
      (including, whether arising out of any contract or tort based on negligence
      or
      strict liability) and whether or not the same would be required by GAAP to
      be
      reflected in financial statements or disclosed in the notes
      thereto.

     

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

     

    “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”)
      set
      forth therein and Wenhua Guo, in the form of Exhibit
      B
      hereto.

     

    “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) a material and adverse impairment to the Company’s ability to perform
      on a timely basis its material obligations under any Transaction
      Document.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

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

     

    “Outside
      Date”
      means
      November 17, 2006.

     

    “Per
      Share Purchase Price”
      equals
      $1.43182.

     

    “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 to the knowledge of the Company 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
      C
      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
      Shares.

     

    “Reorganization”
means
      the transfer by Duoyuan Investments Limited, a British Virgin Islands company
      (“DIL”)
      of all
      of its equity interest in Duoyuan Digital Printing Technology Industry (China)
      Co., Ltd. (“Duoyuan
      China”)
      to the
      Company pursuant to the Equity Transfer Agreement, dated August 31, 2006,
      entered into by and among the Company (for purposes hereof, including the
      predecessor of the Company) and DIL, as a result of which Duoyuan China and
      its
      subsidiaries became a wholly-owned subsidiary of the Company, and Wenhua Guo,
      the sole shareholder of DIL, became the controlling shareholder of the
      Company.

     

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

     

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

     

    “Shares”
      means
      the shares of Common Stock issued or issuable to the Investors pursuant to
      this
      Agreement.

     

    “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.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    “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 Escrow Agreement, the
      Make Good Escrow Agreement and any other documents or agreements executed in
      connection with the transactions contemplated hereunder.

     

    ARTICLE
      2.

    PURCHASE
      AND SALE

     

    2.1.  Closing.
      Subject
      to the terms and conditions set forth in this Agreement, at the Closing the
      Company shall issue and sell to each Investor, and each Investor shall,
      severally and not jointly, purchase from the Company, the Shares representing
      such Investor’s Investment Amount. The Closing shall take place at the offices
      of Bryan Cave LLP, 1290 Avenue of the Americas, New York, NY 10104 on the
      Closing Date or at such other location or time as the parties may
      agree.

     

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

     

    (i)  a
      certificate evidencing a number of Shares equal to such Investor’s Investment
      Amount divided by the Per Share Purchase Price, registered in the name of such
      Investor;

     

    (ii)  the
      legal
      opinions, in agreed form, addressed to the Investors (which will include
      opinions reasonably acceptable to the Investors with respect to the
      Reorganization);

     

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

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (iv) the
      Make
      Good Escrow Agreement, duly executed by the Company; and

     

    (v) the
      Escrow Agreement, duly executed by the Company.

     

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

     

    (i)  the
      Registration Rights Agreement, duly executed by such Investor; and

     

    (ii) a
      completed Investor Questionnaire in the form attached to this Agreement as
      Exhibit
      D.

     

    (c)  Within
      one Business Day following the date of this Agreement, each Investor shall
      cause
      to be delivered to the Escrow Agent, its Investment Amount, in United States
      dollars and in immediately available funds, by wire transfer to an account
      designated in writing by the Company for such purpose in accordance with the
      terms of the Escrow Agreement.

     

    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:

     

    (a)  Subsidiaries.
      The
      Company has no direct or indirect Subsidiaries other than as disclosed in the
      SEC Reports. Except as disclosed in the SEC Reports, 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.

     

    (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.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (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
      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 and which is filed as an exhibit to the
      SEC
      Reports, 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.

     

    (e)  Filings,
      Consents and Approvals.
      Neither
      the Company nor any Subsidiary is required to obtain any consent, waiver,
      authorization or order of, give any notice to, or make any filing or
      registration with, any 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, other
      than
      (i) the filing by the Company 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
      by
      the Company 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, (v) those that have been made or obtained prior
      to
      the date of this Agreement, (vi) registrations, notices or filings required
      to
      be made in order to comply with the currency and exchange control requirements
      imposed by the Chinese government and/or Chinese law, if any, and (vii)
      post-closing securities filings or notifications required to be made under
      federal or state securities laws. Duoyuan China and the Company (as applicable)
      have made all filings and received all approvals required under the laws of
      the
      People’s Republic of China to duly effect the Reorganization.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (f)  Issuance
      of the Shares.
      The
      Shares 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. As of the Closing, the Company
      has
      reserved from its duly authorized capital stock the shares of Common Stock
      issuable pursuant to this Agreement in order to issue the Shares.

     

    (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 Shares
      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.

     

    (h)  SEC
      Reports; Financial Statements.
      Except
      as disclosed in the SEC Reports, the Company has filed all reports required
      to
      be filed by it under the Securities Act and the Exchange Act, including pursuant
      to Section 13(a) or 15(d) thereof, for the twelve months preceding the date
      hereof (or such shorter period as the Company was required by law to file such
      reports) (the foregoing materials being collectively referred to herein as
      the
“SEC
      Reports”
      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, to the knowledge of the Company, 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 in connection
      with
      the Subsidiaries. The financial statements of the Company and the Subsidiaries
      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 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.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (i)  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 Subsidiary or
      any
      current or former director or officer of the Company or any Subsidiary (in
      his
      or her capacity as such).

     

    (j)  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 or any
      Subsidiary.

     

    (k)  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.

     

    (l)  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.

     

    (m)  Title
      to Assets.
      The
      Company and the Subsidiaries have good and marketable title to 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.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (n)  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. 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.

     

    (o)  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 and in the country in which the Company and
      the
      Subsidiaries operate. 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.

     

    (p)  Transactions
      With Affiliates and Employees.
      Except
      as set forth on Schedule
      3.1(p),
      none of
      the officers or directors of the Company or any Subsidiary and, to the knowledge
      of the Company, none of the employees of the Company or any Subsidiary 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 or any Subsidiary, any entity in which any officer,
      director, or any such employee has a substantial interest or is an officer,
      director, trustee or partner.

     

    (q)  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 is establishing disclosure
      controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
      15d-15(e)) for the Company and is designing 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.

     

    (r)  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 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 (ii) 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
      generally be sufficient to pay the amounts on or in respect of its debt. 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).

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (s)  Certain
      Fees.
      Except
      as described in Schedule
      3.1(s),
      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.

     

    (t)  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 by the Company to the Investors under the
      Transaction Documents. The Company is eligible to register its Common Stock
      for
      resale by the Investors under Form SB-2 promulgated under the Securities Act.
      Except as specified in Schedule
      3.1(t),
      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.

     

    (u)  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.

     

    (v)  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 Shares.

     

    (w)  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.

     

    (x)  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.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (y)  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, 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. All disclosure provided
      to
      the Investors regarding the Company, its business 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.

     

    3.2.  Representations
      and Warranties of the Investors.
      Each
      Investor hereby, for itself and for no other Investor, represents and warrants
      to the Company as 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 Shares as principal for its own account for investment
      purposes only and not with a view to or for distributing or reselling such
      Shares 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 Shares
      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 Shares for any period
      of
      time. Such Investor is acquiring the Shares 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
      Shares.

     

    (c)  Investor
      Status.
      At the
      time such Investor was offered the Shares, 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. Such Investor has such experience in business and financial matters that
      it
      is capable of evaluating the merits and risks of an investment in the Shares.
      Such Investor acknowledges that an investment in the Shares is speculative
      and
      involves a high degree of risk.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (d)  General
      Solicitation.
      Such
      Investor is not purchasing the Shares as a result of any advertisement, article,
      notice, meeting or other communication regarding the Shares 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 Shares and the merits and risks
      of
      investing in the Shares; (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.

     

    (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.

     

    (g)  Independent
      Investment Decision.
      Such
      Investor has independently evaluated the merits of its decision to purchase
      the
      Shares 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.

     

    (h)  Rule
      144.
      Such
      Investor understands that the Shares (including the Additional Shares) must
      be
      held indefinitely unless such Shares and/or Additional Shares are registered
      under the Securities Act or an exemption from registration is available. Such
      Investor acknowledges that it is familiar with Rule 144 and that such Investor
      has been advised that Rule 144 permits resales only under certain circumstances.
      Such Investor understands that to the extent that Rule 144 is not available,
      such Investor will be unable to sell any Shares and/or Additional Shares without
      either registration under the Securities Act or the existence of another
      exemption from such registration requirement.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

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

     

    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.

     

    ARTICLE
      4.

    OTHER
      AGREEMENTS OF THE PARTIES

     

    4.1.  Transferability;
      Certificate. Shares
      may only be disposed of in compliance with state and federal securities laws.
      In
      connection with any transfer of the Shares 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 Shares under the Securities Act.
      Certificates evidencing the Shares will contain the following legend, until
      such
      time as they are not required under Section 4.1(c):

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE 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 MAY BE PLEDGED IN CONNECTION WITH
      A
      BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    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 Shares 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 Shares 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 Shares may reasonably
      request in connection with a pledge or transfer of the Shares 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 Shares 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 shall not contain any legend (including the legend set forth
      in Section 4.1(b)): (i) following a sale or transfer of such Shares pursuant
      to
      an effective registration statement (including a Registration Statement), or
      (ii) following a sale or transfer of such Shares pursuant to Rule 144 (assuming
      the transferee is not an Affiliate of the Company), or (iii) while such Shares
      are eligible for sale under Rule 144(k). If an Investor shall make a sale or
      transfer of 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 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 Share 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 that is free from all restrictive or other
      legends by the fifth Trading Day following the Share Delivery Date and (2)
      following such fifth Trading Day after the Share Delivery Date and prior to
      the
      time such 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 (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.

     

    4.2.  Furnishing
      of Information.
      As long
      as any Investor owns the Shares, 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 Shares, 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 Shares under Rule
      144.
      The Company further covenants that it will take such further action as any
      holder of Shares may reasonably request, all to the extent required from time
      to
      time to enable such Person to sell the Shares without registration under the
      Securities Act within the limitation of the exemptions provided by Rule
      144.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    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 Shares in a manner
      that would require the registration under the Securities Act of the sale of
      the
      Shares to the Investors, or that would be integrated with the offer or sale
      of
      the Shares for purposes of the rules and regulations of any Trading Market
      in a
      manner that would require stockholder approval of the sale of the Shares 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 Trading Day following the execution of this
      Agreement, and by 9:00 a.m. (New York time) on the Trading Day following the
      Closing Date, the Company shall issue press releases disclosing the transactions
      contemplated hereby and the Closing. On the 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 Trading Day following the Closing Date
      the Company will file an additional Current Report on Form 8-K to disclose
      the
      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 is listed. Notwithstanding the foregoing, the Company shall
      not
      publicly disclose the name of any Investor, or include the name of any Investor
      in any filing with the Commission (other than the Registration Statement and
      any
      exhibits to filings made in respect of this transaction in accordance with
      periodic filing requirements under the Exchange Act) or any regulatory agency
      or
      Trading Market, without the prior written consent of such Investor, except
      to
      the extent such disclosure is required by law or Trading Market
      regulations.

     

    4.6.  Indemnification
      of Investors.
      In
      addition to the indemnity provided in the Registration Rights Agreement, the
      Company will indemnify and hold the Investors and their directors, officers,
      shareholders, partners, employees and agents (each, an “Investor
      Party”)
      harmless from any and all losses, liabilities, obligations, claims,
      contingencies, damages, costs and expenses, including all judgments, amounts
      paid in settlements, court costs and reasonable attorneys’ fees and costs of
      investigation (in respect thereof, only those that lead to an allegation of
      indemnity hereunder) (collectively, “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 if an
      allegation for indemnity hereunder follows) incurred in connection therewith,
      as
      such expenses are incurred. Except as otherwise set forth herein, the mechanics
      and procedures with respect to the rights and obligations under this Section
      4.6
      shall be the same as those set forth in Section 5 of the Registration Rights
      Agreement.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    4.7.  Non-Public
      Information.
      The
      Company covenants and agrees that neither it nor any other Person acting on
      its
      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. The Company understands and
      confirms that each Investor shall be relying on the foregoing representations
      in
      effecting transactions in securities of the Company.

     

    4.8.  Listing
      of Securities.
      The
      Company shall apply to have the Common Stock, including the Shares, traded
      on a
      Trading Market, and will take such other action as is necessary or desirable
      to
      cause the Shares to be listed on such Trading Market as promptly as possible,
      but in no event later than the Effective Date. The Company further covenants
      and
      agrees that following the time that the Common Stock, including the Shares,
      is
      traded on a Trading Market and before all the Shares are sold pursuant to a
      Registration Statement or applicable exemption under securities law, the Company
      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 such Trading Market.

     

    4.9.  Use
      of
      Proceeds.
      The
      Company will use the net proceeds from the sale of the Shares 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.

     

    4.10.    
      Make
      Good Shares.
      (a)
      Wenhua Guo agrees that in the event the consolidated financial statements of
      the
      Company reflect less than $12,000,000.00 of After-Tax Net Income for the fiscal
      year ended June 30, 2006 (the “Guaranteed
      NI”),
      he
      will transfer to the Investors (through the Make Good Escrow Agent) on a pro
      rata basis for no consideration other than their part of their respective
      Investment Amount at Closing 37.5% of the number of Shares issued at Closing
      (the “2006
      Make Good Shares”).
      In
      the event the audited consolidated financial statements of the Company reflect
      $12,000,000 or more of After-Tax Net Income for the fiscal year ended June
      30,
      2006, no transfer of the 2006 Make Good Shares shall be required by Wenhua
      Guo
      (through the Make Good Escrow Agent) to the Investors under this Section and
      such 2006 Make Good Shares shall be returned to Wenhua Guo in accordance with
      the Make Good Escrow Agreement. Any such transfer of the 2006 Make Good
      Shares under this Section shall be made to an Investor within 10 Business Days
      after the date which the 2006 audit report for the Company is filed with the
      Commission and otherwise in accordance with the Make Good Escrow
      Agreement.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (b) Wenhua
      Guo agrees that in the event that either (i) the earnings per share reported
      in
      the Annual Report on Form 10-KSB of the Company for the fiscal year ending
      June
      30, 2007, as filed with the Commission, is less than $0.60 on a fully diluted
      basis (the “2007
      EPS”)
      or
      (ii) the after tax net income reported in the Annual Report on Form 10-KSB
      of
      the Company for the fiscal year ending June 30, 2007, as filed with the
      Commission, is less than $16,000,000.00 (the “2007
      ATNI”),
      he
      will transfer to the Investors (through the Make Good Escrow Agent) on a pro
      rata basis for no consideration other than their part of their respective
      Investment Amount at Closing 37.5% of the number of Shares issued at Closing
      (the “2007
      Make Good Shares”).
      In
      the event that either (i) the earnings per share reported in the Annual Report
      on Form 10-KSB of the Company for the fiscal year ending June 30, 2008, as
      filed
      with the Commission, is less than $0.89 on a fully diluted basis (the
“2008
      EPS”)
      or
      (ii) the after tax net income reported in the Annual Report on Form 10-KSB
      of
      the Company for the fiscal year ending June 30, 2008, as filed with the
      Commission, is less than $23,900,000.00 (the “2008
      ATNI”),
      Wenhua Guo agrees to transfer to the Investors (through the Make Good Escrow
      Agent) on a pro rata basis for no consideration other than their part of their
      respective Investment Amount at Closing 37.5% of the number of Shares issued
      at
      Closing (the “2008
      Make Good Shares”).
      In
      the event that both the earnings per share reported in the Annual Report on
      Form
      10-KSB of the Company for the fiscal year ending June 30, 2007, as filed with
      the Commission, is equal to or greater than the 2007 EPS and the after tax
      net
      income reported in the Annual Report on Form 10-KSB of the Company for the
      fiscal year ending June 30, 2007, as filed with the Commission, is equal to
      or
      greater than the 2007 ATNI, no transfer of the 2007 Make Good Shares shall
      be
      required by Wenhua Guo (through the Make Good Escrow Agent) to the Investors
      under this Section and such 2007 Make Good Shares shall be returned to Wenhua
      Guo in accordance with the Make Good Escrow Agreement. In the event that
      both the earnings per share reported in the Annual Report on Form 10-KSB of
      the
      Company for the fiscal year ending June 30, 2008, as filed with the Commission,
      is equal to or greater than the 2008 EPS and the after tax net income reported
      in the Annual Report on Form 10-KSB of the Company for the fiscal year ending
      June 30, 2008, as filed with the Commission, is equal to or greater than the
      2008 ATNI, no transfer of the 2008 Make Good Shares shall be required by Wenhua
      Guo (through the Make Good Escrow Agent) to the Investors under this Section
      and
      such 2008 Make Good Shares shall be returned to Wenhua Guo in accordance with
      the Make Good Escrow Agreement. Any such transfer of the 2007 Make Good Shares
      or the 2008 Make Good Shares under this Section shall be made to an Investor
      within 10 Business Days after the date which the 2007, or 2008, as applicable,
      Annual Report on Form 10-KSB for the Company is filed with the Commission and
      otherwise in accordance with the Make Good Escrow Agreement.

     

    (c) In
      connection with the foregoing, Wenhua Guo agrees that prior to the Closing,
      Wenhua Guo will deposit all potential 2006 Make Good Shares, 2007 Make Good
      Shares and 2008 Make Good Shares into escrow in accordance with the Make Good
      Escrow Agreement and the handling and disposition of the 2006 Make Good Shares,
      2007 Make Good Shares and 2008 Make Good Shares shall be governed by this
      Section 4.10 and such Make Good Escrow Agreement.

     

    4.11.  Related
      Party Transactions.
      By 9:00
      a.m. (New York time) on the first Trading Day following December 31, 2006 (the
      “Event
      Date”),
      the
      Company shall issue a press release disclosing that any receivables and/or
      payables which are owing or owed to the Company by any related parties as of
      the
      date hereof shall have been satisfied in full. Following the Event Date, the
      Company shall no longer be a party to, or take part in, any related party
      transactions except those which (i) may be existing on the date hereof and
      (ii)
      which are set forth on Schedule 4.11. In the event of a failure to comply with
      the terms of this Section 4.11, then in addition to any other rights the
      Investors may have hereunder or under applicable law: on each monthly
      anniversary of the Event Date (if not cured by such date) until the Company
      is
      in compliance with this Section 4.11, the Company shall pay to each Investor
      an
      amount in cash, as partial liquidated damages and not as a penalty, equal to
      1.0% of the aggregate Investment Amount paid by such Investor for Shares
      pursuant to this Agreement; provided, however, that the total amount of partial
      liquidated damages payable by the Company pursuant to this Section 4.11 shall
      be
      capped at an aggregate of 4% of the aggregate Investment Amount paid by the
      Investors under this Agreement. In no event will the Company be liable for
      liquidated damages under this Agreement in excess of 1.0% of the aggregate
      Investment Amount of the Investors in any 30-day period.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    4.12.  Independent
      Board of Directors.
      The
      Company covenants and agrees that no later than (i) 180 days following the
      Closing Date and (ii) 30 days following the Effective Date, the Board of
      Directors of the Company shall be comprised of a majority of “independent
      directors” as such term is defined in NASDAQ Marketplace Rule
      4200(a)(15).

     

    4.13.  Chief
      Financial Officer.
      No
      later than 120 days following the Closing Date, the Company will hire a chief
      financial officer who is an expert in (i) United States generally accepted
      accounting principles and (ii) auditing procedures and compliance for United
      States public companies who has either previously acted as chief financial
      officer of a United States public company or been a partner in a United States
      accounting firm including its’ overseas offices and in such capacity was an
      audit partner for United States public companies. Such chief financial officer
      shall be entitled to an annual salary of no less than $130,000.00. By 9:00
      a.m.
      (New York time) on the first Trading Day following the hiring of such chief
      financial officer, the Company will file a Current Report on Form 8-K disclosing
      the information required by Item 5.02 of Form 8-K.

     

    4.14.  Investor
      Relations Firm.
      The
      Company will use commercially reasonable efforts to retain, by the
      90th
      day
      following the Closing Date, a nationally recognized investor relations firm,
      including its’ overseas offices or subsidiaries.

     

    4.15.  Dividends.
      Prior
      to the Closing Date, the Company shall not issue dividends on any of its capital
      stock.

     

    4.16.  Additional
      Shares.
      If the
      June 30th
      Audited
      Working Capital Amount is less than $3,500,000 (the “Adjusted
      Unaudited Working Capital Amount”)
      then
      the Company shall immediately issue additional shares of Common Stock (the
      “Additional
      Shares”)
      to
      each Investor for no additional consideration, determined as follows: (a) the
      amount by which the Adjusted Unaudited Working Capital Amount exceeds the June
      30th
      Audited
      Working Capital Amount, divided by (b) the Per Share Purchase Price.
      The number of Additional Shares issuable to each Investor shall be determined
      on
      a pro rata basis based on such Investor's Investment Amount. The Company shall
      notify the Investors in writing, no later than the Trading Day following the
      date on which the audit yielding the June 30th
      Audited
      Working Capital Amount has been completed, indicating therein the June
      30th
      Audited
      Working Capital Amount and the amount, if any, of Additional Shares resulting
      therefrom.  The Additional Shares shall be entitled to the registration and
      other rights set forth in the Registration Rights Agreement and any Additional
      Shares not registered for resale shall also be afforded piggyback registration
      rights pursuant to Section 6(e) of the Registration Rights Agreement such that
      such Additional Shares may be included in any registration statement (other
      than
      on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their
      then equivalents relating to equity securities to be issued solely in connection
      with any acquisition of any entity or business or equity securities issuable
      in
      connection with stock option or other employee benefit plans) filed by the
      Company.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      5.

    CONDITIONS
      PRECEDENT TO CLOSING

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    (g)  Equity
      Transfer.
      The
      Company shall have publicly disclosed via Edgar in a Form 8-K that the equity
      transfer contemplated by that certain Equity Transfer Agreement, dated August
      31, 2006, by and between the Company (for purposes hereof, including the
      predecessor of the Company) and DIL, shall have occurred and the transactions
      contemplated by such Equity Transfer Agreement shall have closed;
      and

     

    (h) Make
      Good Shares.
      Wenhua
      Guo shall deliver, or cause to be delivered, (i) to the Make Good Escrow Agent
      a
      stock certificate evidencing 18,502,896 shares of the Company's Common Stock,
      along with a stock power executed in blank and (ii) to the Company, the Make
      Good Escrow Agreement, duly executed by Mr. Guo.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    5.2.  Conditions
      Precedent to the Obligations of the Company to sell Shares.
      The
      obligation of the Company to sell Shares 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.

     

    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 Shares.

     

    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.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    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 (i) facsimile (provided the sender receives a machine-generated
      confirmation of successful transmission) at the facsimile number specified
      in
      this Section or (ii) electronic mail (i.e., Email) 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 (i) facsimile at
      the facsimile number specified in this Section or (ii) electronic mail (i.e.,
      Email) 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) the Trading Day following the date of mailing,
      if
      sent by U.S. nationally recognized overnight courier service, or (d) upon actual
      receipt by the party to whom such notice is required to be given. The address
      for such notices and communications shall be as follows:

     

    
      	 	
              If
                to the Company:

            	
              Asian
                Financial, Inc.

              No.
                3 Jinyuan Road

              Daxing
                District Industrial Development Zone

              Beijing,
                China 102600

              Facsimile:
                861060216825

              Email:
                fionaicey@vip.sina.com

              Attn.:
                Fiona Feng

            
	
               

            	
               

            	
               

            
	
               

            	
              With
                a copy to:

            	
              Heller
                Ehrman LLP

              35th
                Floor

              One
                Exchange Square 

              8
                Connaught Place 

              Central

              Hong
                Kong

              Facsimile:
                852 2292-2200

              Email:
                Simon.Luk@hellerehrman.com

              Attn.:
                Simon Luk

            
	
               

            	
               

            	
               

            
	
               

            	
              If
                to an Investor:

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

            

    

     

    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
      Shares. No waiver of any default with respect to any provision, condition or
      requirement of this Agreement shall be deemed to be a continuing waiver in
      the
      future or a waiver of any subsequent default or a waiver of any other provision,
      condition or requirement hereof, nor shall any delay or omission of either
      party
      to exercise any right hereunder in any manner impair the exercise of any such
      right. No consideration shall be offered or paid to any Investor to amend or
      consent to a waiver or modification of any provision of any Transaction Document
      unless the same consideration is also offered to all Investors who then hold
      Shares.

     

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

     

    (a)  by
      written agreement of the Investors and the Company, a copy of which shall be
      provided to the Escrow Agent; and

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    (b)  by
      the
      Company or an Investor (as to itself but no other Investor) upon written notice
      to the other and to the Escrow Agent, 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 and the terminating Investor(s) shall not have any
      further obligation or liability (including as arising from such termination)
      to
      the other and no Investor will have any liability to any other Investor under
      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. The Company may not assign this
      Agreement or any rights or obligations hereunder without the prior written
      consent of the Investors. Any Investor may assign any or all of its rights
      under
      this Agreement to any Person to whom such Investor assigns or transfers any
      Shares, provided such transferee agrees in writing to be bound, with respect
      to
      the transferred Shares, by the provisions hereof that apply to the
“Investors.”

     

    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 4.6 (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.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

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

     

    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.

     

    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 Shares 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 Shares.
      If a
      replacement certificate or instrument evidencing any Shares 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.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    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 and the Company 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 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, 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.

     

    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 Shares 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 Shares 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. The Company acknowledges that each of the Investors
      has been provided with the same Transaction Documents for the purpose of closing
      a transaction with multiple Investors and not because it was required or
      requested to do so by any Investor.

     

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

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES FOLLOW]

    

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    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.

     

    
      	
              ASIAN
                FINANCIAL, INC.

            	 	 	 
	 	 	 	 	 
	By: 	/s/
              Wenhua
              Guo	 	 	 
	
            	
              
Name:
              Wenhua Guo	 	 	
            
	 	
              Title: Chief
                Executive Officer

            	 	 	 

    

     

    Only
      as
      to representations and warranties contained in Section 3.1 which are applicable
      to it as a Subsidiary:

     

    
      
        	
                DUOYUAN
                  DIGITAL PRINTING TECHNOLOGY INDUSTRY(CHINA) CO.,
                  LTD.

              	 	 	 
	 	 	 	 	 
	By: 	/s/
                Wenhua
                Guo	 	 	 
	
              	
                
Name:
                Wenhua Guo	 	 	
              
	 	
                Title: Chief
                  Executive Officer

              	 	 	 

      

       

    

    
      	
              Only
                as to Section 4.10 and Section 5.1(h) herein:

            	 	 	 
	 	 	 	 
	/s/ Wenhua
              Guo	 	 	 
	
              
Wenhua
              Guo	 	 	
            

    

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES FOR INVESTORS FOLLOW]

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    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:_______________________________________

     

    Email:______________________________________

     

    DELIVERY
      INSTRUCTIONS

    (if
      different from above)

     

    c/o:_______________________________________

     

    Street:_____________________________________

     

    City/State/Zip:_______________________________

     

    Attention:__________________________________

     

    Tel:_______________________________________

     

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    
       

      EXHIBIT
        A

       

      ESCROW
        AGREEMENT

      

      THIS
        ESCROW AGREEMENT,
        dated
        October __, 2006 (“Escrow Agreement”), is entered into by and between Asian
        Financial, Inc., a Wyoming corporation (the "Company") and Wells Fargo Bank,
        National Association (the "Escrow Agent").

      

      WHEREAS,
        the
        Company and Investors are entering into concurrently herewith a Securities
        Purchase Agreement, dated as of the date hereof (the "Purchase Agreement"),
        pursuant to which each Investor has agreed to purchase from the Company,
        and the
        Company has agreed to sell to each Investor, the number of Shares identified
        therein (capitalized terms used and not otherwise defined herein shall have
        the
        meanings given such terms on Annex
        A
        to this
        Escrow Agreement);

      

      WHEREAS, pursuant
        to the Purchase Agreement, the Company and the Investors have agreed to
        establish an escrow on the terms and conditions set forth in this Escrow
        Agreement; and

      

      WHEREAS,
        the
        Escrow Agent is willing to accept appointment as Escrow Agent for only the
        expressed duties outlined herein.

      

      NOW,
        THEREFORE,
        in
        consideration of the premises set forth above and other good and valuable
        consideration, the receipt of which is hereby acknowledged, the parties hereto
        agree as follows:

      

      1.
        Proceeds to be Escrowed. A
        copy of
        the Purchase Agreement is attached as Exhibit
        A.
        All
        amounts provided by the Investors in connection with their acquisition of
        the
        Shares as set forth in the Purchase Agreement shall be deposited with the
        Escrow
        Agent in immediately available funds by federal wire transfer, such funds
        being
        referred to herein as the “Escrow Funds.” In addition, certificates representing
        the Shares (the “Escrowed Certificates”) shall be deposited by the Company with
        the Escrow Agent. The Escrow Funds shall be retained in escrow by the Escrow
        Agent in a separate account and invested as stated below. Pursuant to the
        Purchase Agreement, the Investors will be required to deposit their respective
        Escrow Funds directly to the Escrow Agent.

      

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      2.
        Identity of Investors. Concurrently
        with the execution of the Escrow Agreement, the Company shall furnish to
        the
        Escrow Agent the information comprising the identity of the Investors in
        the
        format set forth in the “List of Investors”, attached as Exhibit
        B,
        or in
        electronic spreadsheet format with the same information. All Escrow Funds
        shall
        remain the property of the Investors and shall not be subject to any liens
        or
        charges by the Company, or the Escrow Agent, or judgments or creditors' claims
        against the Company, until released to the Company as hereinafter provided.
        Escrow Agent will not use the information provided to it by the Company for
        any
        purpose other than to fulfill its obligations as Escrow Agent. The Company
        and
        the Escrow Agent will treat all Investor information as
        confidential.

      

      3.
        Disbursement of Funds.

      

      (a) The
        Escrow Agent shall continue to hold the Escrow Funds (other than the
        $4,000,000.00 referenced in Section 3(c) below) delivered for deposit hereunder
        by an Investor until the earlier of: (1) receipt of such Investor’s written
        notice evidencing termination under Section 6.5 of the Purchase Agreement
        (a
“Termination Election”), and (2) receipt of both (x) written notice from the
        Company that the conditions to closing under Section 5.1 of the Purchase
        Agreement shall have been satisfied and (y) joint written notice from the
        Company and Roth Capital Partners, LLC, who acted as placement agent in
        connection with the transactions contemplated by the Purchase Agreement,
        to
        effect the Closing.

      

      (b) If
        the
        Escrow Agent shall receive the Termination Election of an Investor prior
        to its
        receipt of the notices contemplated under Section 3(a)(2), then the Escrow
        Agent
        shall return the Escrow Funds delivered by such Investor as directed by such
        Investor and shall return the Escrowed Certificates in respect of such Investor
        to the Company. If the Escrow Agent shall receive the notices contemplated
        under
        Section 3(a)(2) prior to the Termination Election of an Investor, then the
        Escrow Agent shall disburse the portion of the Escrow Funds for which the
        foregoing is the case in accordance with Exhibit
        C
        to this
        Escrow Agreement and shall deliver the Escrowed Certificates as per the
        instructions of the non-terminated Investors to the address for each such
        Investor specified in Exhibit
        B
        to this
        Escrow Agreement.

      

      (c) Following
        the Closing, if any, an aggregate of $4,000,000.00 (which shall form a part
        of
        the Escrow Funds) shall continue to be held in the escrow account following
        disbursement of the balance of the Escrow Funds in accordance with Exhibit
        C
        to this
        Escrow Agreement. The $4,000,000.00 shall be released and disbursed as follows:
        (i) $2,000,000.00 shall be released by the Escrow Agent to the Company upon
        the
        Escrow Agent’s receipt of joint written notice from the Company and Roth Capital
        Partners, LLC that the Company has complied with Section 4.12 of the Purchase
        Agreement (the “Director Escrow Amount”) and (ii) $2,000,000.00 shall be
        released by the Escrow Agent to the Company upon the Escrow Agent’s receipt of
        joint written notice from the Company and Roth Capital Partners, LLC that
        the
        Company has complied with Section 4.13 of the Purchase Agreement (the “CFO
        Escrow Amount”). If for any reason, or for no reason whatsoever, the Escrow
        Agent does not receive the joint written notice relating to the Director
        Escrow
        Amount prior to the two year anniversary of the Closing Date, the Escrow
        Agent
        shall disburse such Director Escrow Amount pro-rata among the Investors in
        accordance with their relative Investment Amounts on the Closing Date as
        set
        forth on Exhibit
        B
        to this
        Escrow Agreement. If for any reason, or for no reason whatsoever, the Escrow
        Agent does not receive the joint written notice relating to the CFO Escrow
        Amount prior to the two year anniversary of the Closing Date, the Escrow
        Agent
        shall disburse such CFO Escrow Amount pro-rata among the Investors in accordance
        with their relative Investment Amounts on the Closing Date as set forth on
        Exhibit
        B
        to this
        Escrow Agreement.

      

      (d) This
        Escrow Agreement shall terminate and be of no further force or effect on
        the
        earlier of (i) disbursement of both the Director Escrow Amount and the CFO
        Escrow Amount to the Company and (ii) the two year anniversary of the Closing
        Date.

      

      4.
        Duty and Limitation on Liability of the Escrow Agent. The
        sole
        duty of the Escrow Agent shall be to receive the Escrow Funds and the Escrowed
        Certificates and to hold them subject to release, in accordance herewith,
        and
        the Escrow Agent shall be under no duty to determine whether the Company
        is
        complying with requirements of the Escrow Agreement or the Purchase Agreement.
        The Escrow Agent may conclusively rely upon and shall be protected in acting
        upon any statement, certificate, notice, request, consent, order or other
        document believed by it to be genuine and to have been signed or presented
        by
        the proper party or parties. The Escrow Agent shall have no duty or liability
        to
        verify any such statement, certificate, notice, request, consent, order or
        other
        document, and its sole responsibility shall be to act only as expressly set
        forth in the Escrow Agreement. The Escrow Agent shall be under no obligation
        to
        institute or defend any action, suit or proceeding in connection with the
        Escrow
        Agreement unless first indemnified to its satisfaction. The Escrow Agent
        may
        consult counsel of its own choice with respect to any question arising under
        the
        Escrow Agreement and the Escrow Agent shall not be liable for any action
        taken
        or omitted in good faith upon advice of such counsel.

      

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

      In
        no
        event shall the Escrow Agent be liable, directly or indirectly, for any (i)
        damages or expenses arising out of the services provided hereunder, other
        than
        damages which result from the Escrow Agent’s gross negligence or willful
        misconduct, or (ii) special or consequential damages, even if the Escrow
        Agent
        has been advised of the possibility of such damages.

      

      The
        Escrow Agent shall be obligated only to perform the duties specifically set
        forth in this Escrow Agreement, which shall be deemed purely ministerial
        in
        nature, and shall under no circumstances be deemed to be a fiduciary to the
        Company, Roth Capital Partners, LLC or any other person. The Escrow Agent
        shall
        not assume any responsibility for the failure of the Company to perform in
        accordance with this Escrow Agreement. This Escrow Agreement sets forth all
        matters pertinent to the escrow contemplated hereunder, and no additional
        obligations of the Escrow Agent shall be implied by nor inferred from the
        terms
        of any other agreement, including, without limitation, the Purchase
        Agreement.

      

      Under
        no
        circumstances shall the Escrow Agent be expected or required to use, risk
        or
        advance its own funds in the performance of its duties or exercise of its
        rights
        hereunder.

      

      5.
        Escrow Agent's Fee. The
        Escrow Agent shall be entitled to compensation for its services as stated
        in the
        fee schedule attached hereto as Exhibit
        D,
        which
        compensation shall be paid by the Company. The fee agreed upon for the services
        rendered hereunder is intended as full compensation for the Escrow Agent's
        services as contemplated by the Escrow Agreement; provided,
        however,
        that in
        the event that the conditions for the disbursement of funds under the Escrow
        Agreement are not fulfilled, or the Escrow Agent renders any material service
        not contemplated in the Escrow Agreement, or there is any assignment of interest
        in the subject matter of the Escrow Agreement, or any material modification
        hereof, or if any material controversy arises hereunder, or the Escrow Agent
        is
        made a party to any litigation pertaining to the Escrow Agreement, or the
        subject matter hereof, then the Escrow Agent shall be reasonably compensated
        by
        the Company for such extraordinary services and reimbursed for all costs
        and
        expenses, including reasonable attorney's fees, occasioned by any delay,
        controversy, litigation or event, and the same shall be recoverable from
        the
        Company.

      

      6.
        Investment of Proceeds.  The
        Escrow Funds shall be credited by Escrow Agent and recorded in an escrow
        account. During the period of this escrow as contemplated in Section 3(d),
        Escrow Agent is hereby authorized by the Company to deposit, transfer, hold
        and
        invest all funds received under this Escrow Agreement, including principal
        and
        interest in Wells Fargo Money Market Deposit Account Fund in accordance with
        Exhibit
        F
        to this
        Escrow Agreement. Escrow Agent may invest the Escrow Funds in alternative
        investments in accordance with written instructions as may from time to time
        be
        provided to Escrow Agent and signed by the Company. Any interest received
        by
        Escrow Agent with respect to the Escrow Funds, including reinvested interest
        shall become part of the Escrow Funds, and shall be disbursed to the Company
        as
        directed in writing by the Company. For tax reporting purposes, all interest
        or
        other taxable income earned on the Escrow Funds in any tax year shall be
        taxable
        to the Company.

       

      The
        Company shall within thirty (30) days after the date hereof, provide Escrow
        Agent with certified tax identification numbers by furnishing appropriate
        IRS
        forms W-9 or W-8 and other forms and documents that Escrow Agent may reasonably
        request. The Company understands that if such tax reporting documentation
        is not
        so certified to Escrow Agent, Escrow Agent may be required by the Internal
        Revenue Code of 1986, as amended, to withhold a portion of any interest or
        other
        income earned on the Escrow Funds pursuant to this Escrow
        Agreement.

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

      To
        the
        extent that Escrow Agent becomes liable for the payment of any taxes in respect
        of income derived from the investment of funds held or payments made hereunder,
        Escrow Agent shall satisfy such liability to the extent possible from the
        Escrow
        Funds. The Company agrees to indemnify and hold Escrow Agent harmless from
        and
        against any taxes, additions for late payment, interest, penalties and other
        expenses that may be assessed against Escrow Agent on or with respect to
        any
        payment or other activities under this Escrow Agreement unless any such tax,
        addition for late payment, interest, penalties and other expenses shall arise
        out of or be caused by the gross negligence or willful misconduct of the
        Escrow
        Agent.

       

      The
        Company acknowledges that Escrow Agent is not providing investment supervision,
        recommendations or advice.

       

      7.
        Notices. All
        notices, requests, demands, and other communications under the Escrow Agreement
        shall be in writing and shall be deemed to have been duly given (a) on the
        date
        of service if served personally on the party to whom notice is to be given,
        (b)
        on the day of transmission if sent by facsimile/email transmission to the
        facsimile number/email address given below, and telephonic confirmation of
        receipt is obtained promptly after completion of transmission, (c) on the
        day
        after delivery to Federal Express or similar overnight courier or the Express
        Mail service maintained by the United States Postal Service, or (d) on the
        fifth
        day after mailing, if mailed to the party to whom notice is to be given,
        by
        first class mail, registered or certified, postage prepaid, and properly
        addressed, return receipt requested, to the party as follows:

      

      
        	 	If to the Company: 	
                Asian
                  Financial, Inc.

                No.
                  3 Jinyuan Road

                Daxing
                  District Industrial Development Zone

                Beijing,
                  China 102600

                Attention:
                  Fiona Feng

                Facsimile:
                  861060216825

              
	 	 	 
	 	If to Escrow Agent:	Wells Fargo Bank, National Association
                Corporate
                  Trust Services

                707
                  Wilshire Blvd., 17th
                  Floor

                Los
                  Angeles, CA 90017

                Attention:
                  Kyle Lim

                Facsimile: (213)
                  614-3355

              

      

       

      Any
        party
        may change its address for purposes of this paragraph by giving the other
        party
        written notice of the new address in the manner set forth above.

      

      8.
        Indemnification of Escrow Agent: The
        Company hereby indemnifies and holds harmless the Escrow Agent from and against,
        any and all loss, liability, cost, damage and expense, including, without
        limitation, reasonable counsel fees, which the Escrow Agent may suffer or
        incur
        by reason of any action, claim or proceeding brought against the Escrow Agent
        arising out of or relating in any way to the Escrow Agreement or any transaction
        to which the Escrow Agreement relates unless such action, claim or proceeding
        is
        the result of the willful misconduct or gross negligence of the Escrow Agent.
        

      

      9.
        Successors and Assigns. Except
        as
        otherwise provided in the Escrow Agreement, no party hereto shall assign
        the
        Escrow Agreement or any rights or obligations hereunder without the prior
        written consent of the other parties hereto, each Investor and Roth Capital
        Partners, LLC and any such attempted assignment without such prior written
        consent shall be void and of no force and effect. The Escrow Agreement shall
        inure to the benefit of and shall be binding upon the successors and permitted
        assigns of the parties hereto.

      

      10.
        Governing Law; Jurisdiction. The
        Escrow Agreement shall be construed, performed, and enforced in accordance
        with,
        and governed by, the internal laws of the State of New York, without giving
        effect to the principles of conflicts of laws thereof.

      

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      11.
        Severability. In
        the
        event that any part of the Escrow Agreement is declared by any court or other
        judicial or administrative body to be null, void, or unenforceable, said
        provision shall survive to the extent it is not so declared, and all of the
        other provisions of the Escrow Agreement shall remain in full force and
        effect.

      

      12.
        Amendments; Waivers. The
        Escrow Agreement may be amended or modified, and any of the terms, covenants,
        representations, warranties, or conditions hereof may be waived, only by
        a
        written instrument executed by each of the Company, the Escrow Agent, Roth
        Capital Partners, LLC and each Investor. Any waiver by any party of any
        condition, or of the breach of any provision, term, covenant, representation,
        or
        warranty contained in the Escrow Agreement, in any one or more instances,
        shall
        not be deemed to be nor construed as further or continuing waiver of any
        such
        condition, or of the breach of any other provision, term, covenant,
        representation, or warranty of the Escrow Agreement.

      

      13.
        Entire Agreement. The
        Escrow Agreement contains the entire understanding among the parties hereto
        with
        respect to the escrow contemplated hereby and supersedes and replaces all
        prior
        and contemporaneous agreements and understandings, oral or written, with
        regard
        to such escrow.

      

      14.
        Section Headings. The
        section headings in the Escrow Agreement are for reference purposes only
        and
        shall not affect the meaning or interpretation of the Escrow
        Agreement.

      

      15.
        Counterparts. The
        Escrow Agreement may be executed in counterparts, each of which shall be
        deemed
        an original, but all of which shall constitute the same instrument.

      

      16.
        Resignation. Escrow
        Agent may resign upon 30 days advance written notice to the Company. If a
        successor escrow agent is not appointed within the 30-day period following
        such
        notice, Escrow Agent may petition any court of competent jurisdiction to
        name a
        successor escrow agent or interplead the Escrow Funds with such court, whereupon
        Escrow Agent’s duties hereunder shall terminate.

      

      17.
        Authorized Signers.
        The
        Company will execute Exhibit
        E-1
        and
        deliver an executed Exhibit
        E-2
        to this
        Escrow Agreement concurrent with the execution hereof.

      

      18.
        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 or entity, except for the
        Investors and Roth Capital Partners, LLC.

       

      [Signature
        page follows]

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        the
        parties hereto have caused the Escrow Agreement to be executed the day and
        year
        first set forth above.

      

      Asian
        Financial, Inc.

      

       

        
          

        

      

      By:
        Wenhua Guo

      Its:
        Chief Executive Officer

      

      

      Wells
        Fargo Bank, National Association, as Escrow Agent

       

      

      
        

      

      By:
        Kyle
        Lim

      Its:
        Assistant Vice President

      

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        B 

       

      MAKE
        GOOD ESCROW AGREEMENT 

       

      This
        Make
        Good Escrow Agreement (the "Make Good Agreement"), dated effective as of
        October
        __, 2006, is entered into by and among Asian Financial, Inc., a Wyoming
        corporation (the "Company"), Roth Capital Partners, LLC, as agent (“Roth”),
        Wenhua Guo in his individual capacity ("Guo"), and Wells Fargo Bank, National
        Association (hereinafter referred to as "Escrow Agent"). 

       

      WHEREAS,
        each of the investors (the “Investors”) to the private offering of securities of
        the Company has entered into a Securities Purchase Agreement, dated October
        __,
        2006 (the "SPA"), evidencing their participation in the Company's private
        offering (the "Offering") of securities. As an inducement to the Investors
        to
        participate in the Offering and as set forth in the SPA, Guo agreed to place
        the
        "Escrow Shares" (as hereinafter defined) into escrow for the benefit of the
        Investors in the event the Company failed to satisfy certain earnings per
        share
        and/or After-Tax Net Income thresholds. 

       

      WHEREAS,
        pursuant to the requirements of the SPA, the Company and Guo have agreed
        to
        establish an escrow on the terms and conditions set forth in this Make Good
        Agreement; 

       

      WHEREAS,
        Roth has agreed to act as agent for the Investors in connection with this
        Make
        Good Agreement pursuant to the terms and conditions of that certain Agency
        Agreement, dated as of the date hereof, by and among Roth and the
        Investors;

       

      WHEREAS,
        the Escrow Agent has agreed to act as escrow agent pursuant to the terms
        and
        conditions of this Make Good Agreement; and 

       

      WHEREAS,
        all capitalized terms used but not defined herein shall have the meanings
        assigned them in the SPA; 

       

      NOW,
        THEREFORE, in consideration of the mutual promises of the parties and the
        terms
        and conditions hereof, the parties hereby agree as follows: 

       

      1.
        Appointment of Escrow Agent.
        Guo and
        the Company hereby appoint Wells Fargo Bank, National Association as Escrow
        Agent to act in accordance with the terms and conditions set forth in this
        Make
        Good Agreement, and Escrow Agent hereby accepts such appointment and agrees
        to
        act in accordance with such terms and conditions. 

       

      2.
        Establishment of Escrow.
        Upon the
        execution of this Make Good Agreement, Guo shall deliver, or cause to be
        delivered, to the Escrow Agent a stock certificate evidencing 18,502,896
        shares
        (the "Escrow Shares") of the Company's common stock, par value $0.001 per
        share,
        along with a stock power executed in blank. 

       

      3. Representations
        of Guo.
        Guo
        hereby represents and warrants to Roth as follows: 

       

      (i)
        The
        Escrow Shares are validly issued, fully paid and nonassessable shares of
        the
        Company, and free and clear of all pledges, liens and encumbrances.

       

      (ii)
        Performance
        of this Make Good Agreement and compliance with the provisions hereof will
        not
        violate any provision of any applicable law and will not conflict with or
        result
        in any breach of any of the terms, conditions or provisions of, or constitute
        a
        default under, or result in the creation or imposition of any lien, charge
        or
        encumbrance upon, any of the properties or assets of Guo pursuant to the
        terms
        of any indenture, mortgage, deed of trust or other agreement or instrument
        binding upon Guo, other than such breaches, defaults or liens which would
        not
        have a material adverse effect taken as a whole. 

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

      4.
        Disbursement of Escrow Shares. 

       

      a. Fiscal
        Year Ended June 30, 2006.
        Guo
        agreed with the Investors that in the event the consolidated financial
        statements of the Company reflect less than $12,000,000.00
        of
        After-Tax Net Income for the fiscal year ended June 30, 2006 (the "Guaranteed
        NI"), Guo would transfer, or cause to be transferred, to the Investors on
        a pro
        rata basis for no consideration other than their part of their respective
        Investment Amount at Closing 37.5% of the number of Shares issued at Closing.
        In
        the event that the Guaranteed NI is not achieved based on the Company's
        consolidated financial statements for the fiscal year ended June 30, 2006,
        as
        filed with the Commission, the Company has agreed that Roth will provide
        written
        instruction to the Escrow Agent to issue and deliver certificates evidencing
        a
        total of 6,167,632 of the Escrow Shares to the Investors, in an amount to
        each
        Investor as set forth on Exhibit
        A
        attached
        hereto, on a pro rata basis (based upon each Investor’s Investment Amount
        indicated on such Investor’s signature page to the SPA) within ten (10) business
        days after the date which the 2006 audit report for the Company is filed
        with
        the Commission. The Escrow Agent need only rely on the letter of instruction
        from Roth in this regard and will disregard any contrary instructions. If
        the
        consolidated financial statements of the Company reflect $12,000,000 or more
        of
        After-Tax Net Income for the fiscal year ended June 30, 2006, Roth shall
        provide
        written instructions to the Escrow Agent for the release of 6,167,632 of
        the
        Escrow Shares to Guo or to the registered holder of such shares who originally
        deposited such shares with the Escrow Agent.

       

      b. Fiscal
        Year Ending June 30, 2007.
        Guo
        agreed with the Investors that in the event either: (i) the earnings
        per share reported in the Annual Report on Form 10-KSB of the Company for
        the
        fiscal year ending June 30, 2007, as filed with the Commission, is less than
        $0.60 on a fully diluted basis (the “2007 EPS”) or (ii) the after tax net income
        reported in the Annual Report on Form 10-KSB of the Company for the fiscal
        year
        ending June 30, 2007, as filed with the Commission, is less than $16,000,000.00
        (the “2007 ATNI”),
        Guo
        would transfer, or cause to be transferred, to the Investors on a pro rata
        basis
for
        no
        consideration other than their part of their respective Investment Amount
        at
        Closing 37.5%
        of
        the number of Shares issued at Closing. In the event that either (i) the
        earnings per share reported in the Annual Report on Form 10-KSB of the Company
        for the fiscal year ending June 30, 2007, as filed with the Commission, is
        less
        than the 2007 EPS or (ii) the after tax net income reported in the Annual
        Report
        on Form 10-KSB of the Company for the fiscal year ending June 30, 2007,
        as
        filed with the Commission, is less than the 2007 ATNI,
        the
        Company has agreed that Roth will provide written instruction to the Escrow
        Agent instructing the Escrow Agent to issue and deliver certificates evidencing
        a total of 6,167,632 of the Escrow Shares to the Investors, in an amount
        to each
        Investor as set forth on Exhibit
        A
        attached
        hereto, on a pro rata basis (based upon each Investor’s Investment Amount
        indicated on such Investor’s signature page to the SPA) within 10
        Business
        Days after
        the date
which
        the
        Annual Report on Form 10-KSB for the
        Company
        for the
        fiscal year ending June 30, 2007 is filed with the Commission. The Escrow
        Agent
        need only rely on the letter of instruction from Roth in this regard and
        will
        disregard any contrary instructions. In the event that both the (i) earnings
        per
        share reported in the Annual Report on Form 10-KSB of the Company for the
        fiscal
        year ending June 30, 2007, as filed with the Commission, is equal to or greater
        than the 2007 EPS and (ii) the after tax net income reported in the Annual
        Report on Form 10-KSB of the Company for the fiscal year ending June 30,
        2007,
        as filed with the Commission, is equal to or greater than the 2007 ATNI,
        Roth
        shall provide written instructions to the Escrow Agent for the release of
        6,167,632 of the Escrow Shares to Guo or to the registered holder of such
        shares
        who originally deposited such shares with the Escrow Agent.

       

      c.
        Fiscal
        Year Ending June 30, 2008.
        Guo
        agreed with Investors that in the event either: (i) the earnings
        per share reported in the Annual Report on Form 10-KSB of the Company for
        the
        fiscal year ending June 30, 2008, as filed with the Commission, is less than
        $0.89 on a fully diluted basis (the “2008 EPS”) or (ii) the after tax net income
        reported in the Annual Report on Form 10-KSB of the Company for the fiscal
        year
        ending June 30, 2008, as filed with the Commission, is less than $23,900,000.00
        (the “2008 ATNI”),
        Guo
        would transfer, or cause to be transferred, to the Investors on a pro rata
        basis
        for no consideration other than their part of their respective Investment
        Amount
        at Closing 37.5% of the number of Shares issued at Closing. In the event
        that
        either (i) the earnings per share reported in the Annual Report on Form 10-KSB
        of the Company for the fiscal year ending June 30, 2008,
        as
        filed with the Commission, is less than the 2008 EPS or (ii) the after tax
        net
        income reported in the Annual Report on Form 10-KSB of the Company for the
        fiscal year ending June 30, 2008, as filed with the Commission, is less than
        the
        2008 ATNI,
        the
        Company has agreed that Roth will provide written instruction to the Escrow
        Agent instructing the Escrow Agent to issue and deliver certificates evidencing
        a total of 6,167,632 of the Escrow Shares to the Investors, in an amount
        to each
        Investor as set forth on Exhibit
        A
        attached
        hereto, on a pro rata basis (based upon each Investor’s Investment Amount
        indicated on such Investor’s signature page to the SPA) within 10 Business Days
        after the date which the Annual Report on Form 10-KSB for the Company for
        the
        fiscal year ending June 30, 2008 is filed with the Commission. The Escrow
        Agent
        need only rely on the letter of instruction from Roth in this regard and
        will
        disregard any contrary instructions. In the event that both the (i) earnings
        per
        share reported in the Annual Report on Form 10-KSB of the Company for
        the
        fiscal year ending June 30, 2008, as filed with the Commission, is equal
        to or
        greater than the 2008 EPS and (ii) the after tax net income reported in the
        Annual Report on Form 10-KSB of the Company for the fiscal year ending June
        30,
        2008, as filed with the Commission, is equal to or greater than the 2008
        ATNI,
        Roth
        shall provide written instructions to the Escrow Agent for the release of
        6,167,632 of the Escrow Shares to Guo or to the registered holder of such
        shares
        who originally deposited such shares with the Escrow Agent.

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

      5.
        Duration.
        This
        Make Good Agreement shall terminate on the sooner of (i) the distribution
        of all
        the Escrow Shares or (ii) three years from the date hereof. The Company agrees
        to provide the Escrow Agent written notice of the filing with the Commission
        of
        any financial statements or reports referenced herein.

       

      6.
        Escrow Shares.
        If any
        Escrow Shares are deliverable to the Investors pursuant to the SPA and in
        accordance with this Make Good Agreement, (i) Guo covenants and agrees to
        execute all such instruments of transfer (including stock powers and assignment
        documents) as are customarily executed to evidence and consummate the transfer
        of the Escrow Shares from Guo to the Investors and (ii) following its receipt
        of
        the documents referenced in Section 6(i), the Company covenants and agrees
        to
        promptly reissue such Escrow Shares in the applicable Investor’s name and
        deliver the same as directed by such Investor. Until such time as (if at
        all)
        the Escrow Shares are required to be delivered pursuant to the SPA and in
        accordance with this Make Good Agreement, any dividends payable in respect
        of
        the Escrow Shares and all voting rights applicable to the Escrow Shares shall
        be
        retained by Guo.

       

      7.
        Interpleader. Should
        any controversy arise among the parties hereto with respect to this Make
        Good
        Agreement or with respect to the right to receive the Escrow Shares, Escrow
        Agent and/or Roth shall have the right to consult counsel and/or to institute
        an
        appropriate interpleader action to determine the rights of the parties. Escrow
        Agent and/or Roth are also each hereby authorized to institute an appropriate
        interpleader action upon receipt of a written letter of direction executed
        by
        the parties so directing either Escrow Agent or Roth. If Escrow Agent or
        Roth is
        directed to institute an appropriate interpleader action, it shall institute
        such action not prior to thirty (30) days after receipt of such letter of
        direction and not later than sixty (60) days after such date. Any interpleader
        action instituted in accordance with this Section 7 shall be filed in any
        court
        of competent jurisdiction in the State of New York or the State of California,
        and the Escrow Shares in dispute shall be deposited with the court and in
        such
        event Escrow Agent and Roth shall be relieved of and discharged from any
        and all
        obligations and liabilities under and pursuant to this Make Good Agreement
        with
        respect to the Escrow Shares and any other obligations hereunder. 

       

      8. Exculpation
        and Indemnification of Escrow Agent and Roth. 

       

      (a)
        Escrow
        Agent is not a party to, and is not bound by or charged with notice of any
        agreement out of which this escrow may arise. Escrow Agent acts under this
        Make
        Good Agreement as a depositary only and is not responsible or liable in any
        manner whatsoever for the sufficiency, correctness, genuineness or validity
        of
        the subject matter of the escrow, or any part thereof, or for the form or
        execution of any notice given by any other party hereunder, or for the identity
        or authority of any person executing any such notice. Escrow Agent will have
        no
        duties or responsibilities other than those expressly set forth herein. Escrow
        Agent will be under no liability to anyone by reason of any failure on the
        part
        of any party hereto (other than Escrow Agent) or any maker, endorser or other
        signatory of any document to perform such person's or entity's obligations
        hereunder or under any such document. Except for this Make Good Agreement
        and
        instructions to Escrow Agent pursuant to the terms of this Make Good Agreement,
        Escrow Agent will not be obligated to recognize any agreement between or
        among
        any or all of the persons or entities referred to herein, notwithstanding
        its
        knowledge thereof. Roth’s sole obligation under this Make Good Agreement is to
        provide written instruction to Escrow Agent (following such time as the Company
        files certain periodic financial reports as specified in Section 4 hereof)
        directing the distribution of the Escrow Shares. Roth will provide such written
        instructions upon review of the relevant earnings per share and/or After-Tax
        Net
        Income amount reported in such periodic financial reports as specified in
        Section 4 hereof. Roth is not charged with any obligation to conduct any
        investigation into the financial reports or make any other investigation
        related
        thereto. In the event of any actual or alleged mistake or fraud of the Company,
        its auditors or any other person (other than Roth) in connection with such
        financial reports of the Company, Roth shall have no obligation or liability
        to
        any party hereunder.

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

       

      (b)
        Escrow
        Agent will not be liable for any action taken or omitted by it, or any action
        suffered by it to be taken or omitted, absent gross negligence or willful
        misconduct. Escrow Agent may rely conclusively on, and will be protected
        in
        acting upon, any order, notice, demand, certificate, or opinion or advice
        of
        counsel (including counsel chosen by Escrow Agent), statement, instrument,
        report or other paper or document (not only as to its due execution and the
        validity and effectiveness of its provisions, but also as to the truth and
        acceptability of any information therein contained) which is reasonably believed
        by Escrow Agent to be genuine and to be signed or presented by the proper
        person
        or persons. The duties and responsibilities of the Escrow Agent hereunder
        shall
        be determined solely by the express provisions of this Make Good Agreement
        and
        no other or further duties or responsibilities shall be implied, including,
        but
        not limited to, any obligation under or imposed by any laws of the State
        of New
        York upon fiduciaries. 

       

      (c)
        The
        Company and Guo each hereby, jointly and severally, indemnify and hold harmless
        each of Escrow Agent, Roth and any of their principals, partners, agents,
        employees and affiliates from
        and
        against any expenses, including reasonable attorneys' fees and disbursements,
        damages or losses suffered by Escrow Agent or Roth in connection with any
        claim
        or demand, which, in any way, directly or indirectly, arises out of or relates
        to this Make Good Agreement or the services of Escrow Agent or Roth hereunder;
        except, that if Escrow Agent or Roth is guilty of willful misconduct, gross
        negligence or fraud under this Make Good Agreement, then Escrow Agent or
        Roth,
        as the case may be, will bear all losses, damages and expenses arising as
        a
        result of such willful misconduct, gross negligence or fraud. Promptly after
        the
        receipt by Escrow Agent or Roth of notice of any such demand or claim or
        the
        commencement of any action, suit or proceeding relating to such demand or
        claim,
        Escrow Agent or Roth, as the case may be, will notify the other parties hereto
        in writing. For the purposes hereof, the terms "expense" and "loss" will
        include
        all amounts paid or payable to satisfy any such claim or demand, or in
        settlement of any such claim, demand, action, suit or proceeding settled
        with
        the express written consent of the parties hereto, and all costs and expenses,
        including, but not limited to, reasonable attorneys' fees and disbursements,
        paid or incurred in investigating or defending against any such claim, demand,
        action, suit or proceeding. The provisions of this Section 8 shall survive
        the
        termination of this Make Good Agreement. 

       

      9.
        Compensation of Escrow Agent.
        Escrow
        Agent shall be entitled to compensation for its services as stated in the
        fee
        schedule attached hereto as Exhibit
        B,
        which
        compensation shall be paid by the Company. The fee agreed upon for the services
        rendered hereunder is intended as full compensation for Escrow Agent's services
        as contemplated by this Make Good Agreement; provided,
        however,
        that in
        the event that Escrow Agent renders any material service not contemplated
        in
        this Make Good Agreement, or there is any assignment of interest in the subject
        matter of this Make Good Agreement, or any material modification hereof,
        or if
        any material controversy arises hereunder, or Escrow Agent is made a party
        to
        any litigation pertaining to this Make Good Agreement, or the subject matter
        hereof, then Escrow Agent shall be reasonably compensated by the Company
        for
        such extraordinary services and reimbursed for all costs and expenses, including
        reasonable attorney's fees, occasioned by any delay, controversy, litigation
        or
        event, and the same shall be recoverable from the Company. Prior
        to
        incurring any costs and/or expenses in connection with the foregoing sentence,
        Escrow Agent shall be required to provide written notice to the Company of
        such
        costs and/or expenses and the relevancy thereof and Escrow Agent shall not
        be
        permitted to incur any such costs and/or expenses prior to receiving written
        approval from the Company, which approval shall not be unreasonably
        withheld.

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

      10.
        Resignation of Escrow Agent.
        At any
        time, upon ten (10) days' written notice to the Company, Escrow Agent may
        resign
        and be discharged from its duties as Escrow Agent hereunder. As soon as
        practicable after its resignation, Escrow Agent will promptly turn over to
        a
        successor escrow agent appointed by the Company the Escrow Shares held hereunder
        upon presentation of a document appointing the new escrow agent and evidencing
        its acceptance thereof. If, by the end of the 10-day period following the
        giving
        of notice of resignation by Escrow Agent, the Company shall have failed to
        appoint a successor escrow agent, Escrow Agent may interplead the Escrow
        Shares
        into the registry of any court having jurisdiction. 

       

      11.
        Records.
        Escrow
        Agent shall maintain accurate records of all transactions hereunder. Promptly
        after the termination of this Make Good Agreement or as may reasonably be
        requested by the parties hereto from time to time before such termination,
        Escrow Agent shall provide the parties hereto, as the case may be, with a
        complete copy of such records, certified by Escrow Agent to be a complete
        and
        accurate account of all such transactions. The authorized representatives
        of
        each of the parties hereto shall have access to such books and records at
        all
        reasonable times during normal business hours upon reasonable notice to Escrow
        Agent and at the requesting party’s expense. 

       

      12.
        Notice.
        All
        notices, communications and instructions required or desired to be given
        under
        this Make Good Agreement must be in writing and shall be deemed to be duly
        given
        if sent by registered or certified mail, return receipt requested, or overnight
        courier, to the addresses listed on the signature page hereto.

       

      13.
        Execution in Counterparts.
        This
        Make Good Agreement may be executed in counterparts, each of which shall
        be
        deemed an original, but all of which together shall constitute one and the
        same
        instrument. 

       

      14.
        Assignment and Modification.
        This
        Make Good Agreement and the rights and obligations hereunder of any of the
        parties hereto may not be assigned without the prior written consent of the
        other parties hereto. Subject to the foregoing, this Make Good Agreement
        will be
        binding upon and inure to the benefit of each of the parties hereto and their
        respective successors and permitted assigns. No other person will acquire
        or
        have any rights under, or by virtue of, this Make Good Agreement. No portion
        of
        the Escrow Shares shall be subject to interference or control by any creditor
        of
        any party hereto, or be subject to being taken or reached by any legal or
        equitable process in satisfaction of any debt or other liability of any such
        party hereto prior to the disbursement thereof to such party hereto in
        accordance with the provisions of this Make Good Agreement. This Make Good
        Agreement may be amended or modified only in writing signed by all of the
        parties hereto. 

       

      15.
        Applicable Law.
        This
        Make Good Agreement shall be governed by and construed in accordance with
        the
        laws of the State of New York without giving effect to the principles of
        conflicts of laws thereof. 

       

      16.
        Headings.
        The
        headings contained in this Make Good Agreement are for convenience of reference
        only and shall not affect the construction of this Make Good Agreement.

       

      17.
        Attorneys' Fees.
        If any
        action at law or in equity, including an action for declaratory relief, is
        brought to enforce or interpret the provisions of this Make Good Agreement,
        the
        prevailing party shall be entitled to recover reasonable attorneys' fees
        from
        the other party (unless such other party is the Escrow Agent), which fees
        may be
        set by the court in the trial of such action or may be enforced in a separate
        action brought for that purpose, and which fees shall be in addition to any
        other relief that may be awarded.

       

      18.
        Authorized Signers.
        The
        Company will execute Exhibit
        C-1
        and
        deliver an executed Exhibit
        C-2
        to this
        Make Good Agreement concurrent with the execution hereof.

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

       

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

      

       

      IN
        WITNESS WHEREOF, the parties have duly executed this Make Good Agreement
        as of
        the date set forth opposite their respective names.

       

      
        	 	 	 
	 	
                COMPANY:

                 

                ASIAN
                  FINANCIAL, INC.

              
	 
 	 
 	 

	
              	By:  	
              
	 	
                

                Name:
                  Wenhua Guo

                Title:
                  Chief Executive Officer

              

      

      
        
          	 	 	 
	 	
                  
                    Address:

                     

                    
                      WENHUA
                        GUO:
                        

                       

                      
                        

                      

                      
                        Address:

                      

                    

                  

                
	
                	       	
                

        

      

       

      [REMAINDER
        OF THIS PAGE INTENTIONALLY LEFT BLANK SIGNATURE PAGE FOR OTHER PARTIES
        FOLLOWS]

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

         

      

      
        	 	 	 
	 	ESCROW
                AGENT:
                 

                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION

              
	 
 	 
 	 
 
	
              	By:  	
              
	 	
                

                Name:
                  Kyle Lim

                Title:
                  Assistant Vice President

              

      

      
         

        	 	 	 
	 	
                
                  Address:
                    707 Wilshire Blvd, 17th
                    Floor

                  Los
                    Angeles, CA 90017 

                   

                  
                    AGENT:

                     

                    ROTH
                      CAPITAL PARTNERS, LLC

                  

                

              
	 
 	 
 	 
 
	
              	By:  	
              
	 	
                

                
                  Name:

                  Title:

                

              

        
           

          	 	 	 
	 	
                  
                    
                      Address:

                    

                  

                
	
                	        	
                

      

      
         

        
          
            
            

          

          
            35

            
              

            

          

          
            
            

          

        

      

      
         

      

       EXHIBIT
        C

       

      Registration
        Rights Agreement

      

      (Filed
        as
        Exhibit 4.1 to the Form 8-K dated October 25, 2006.)

       

      
        
          
          

        

        
          C-1

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        D

       

      Investor
        Questionnaire

      

      (ALL
        INFORMATION WILL BE TREATED CONFIDENTIALLY)

      

      To:
        [Investor’s name and address] 

       

       

      This
        Investor Questionnaire (“Questionnaire”) must be completed by each potential
        investor in connection with the offer and sale of the shares of the common
        stock, par value $0.001 per share, (the “Common Stock”) of Asian Financial, Inc.
        (the “Shares”). The Shares are being offered and sold by Asian Financial, Inc.
        (the “Company”) without registration under the Securities Act of 1933, as
        amended (the “Act”), and the securities laws of certain states, in reliance on
        the exemptions contained in Section 4(2) of the Act and on Regulation D
        promulgated thereunder and in reliance on similar exemptions under applicable
        state laws. The Company must determine that a potential investor meets certain
        suitability requirements before offering or selling Shares to such investor.
        The
        purpose of this Questionnaire is to assure the Company that each investor
        will
        meet the applicable suitability requirements. The information supplied by
        you
        will be used in determining whether you meet such criteria, and reliance
        upon
        the private offering exemption from registration is based in part on the
        information herein supplied.

      

      This
        Questionnaire does not constitute an offer to sell or a solicitation of an
        offer
        to buy any security. Your answers will be kept strictly confidential. However,
        by signing this Questionnaire you will be authorizing the Company to provide
        a
        completed copy of this Questionnaire to such parties as the Company deems
        appropriate in order to ensure that the offer and sale of the Shares will
        not
        result in a violation of the Act or the securities laws of any state and
        that
        you otherwise satisfy the suitability standards applicable to purchasers
        of the
        Shares. All potential investors must answer all applicable questions and
        complete, date and sign this Questionnaire. Please print or type your responses
        and attach additional sheets of paper if necessary to complete your answers
        to
        any item.

      

      
        
          
          

        

        
          D-1

          
            

          

        

        
          
          

        

      

      IMPORTANT:
        FAILURE TO COMPLETELY AND ACCURATELY ANSWER ALL OF THESE QUESTIONS WILL DELAY
        THE ISSUANCE OR REGISTRATION OF YOUR SHARES OR MAKE SUCH ISSUANCE OR
        REGISTRATION IMPOSSIBLE.

      

      A. BACKGROUND
        INFORMATION

      

      Name
        [EXACT NAME AS IT WILL APPEAR ON THE STOCK CERTIFICATE; IF MULTIPLE CERTIFICATES
        ARE TO BE PROVIDED, PLEASE
        SPECIFY]:_______________________________________________________________________________________________________

      

      Business
        Address:__________________________________________________________________________________________________________

                                                                                               
        (Number and Street)

       

      _________________________________________________________________________________________________________________________

      (City)                                                                                  (State)     (Zip
        Code)

      

      Telephone
        Number: (___) ____________________________________________________________________________________________________

      

      Residence
        Address:_________________________________________________________________________________________________________

                                                                                               (Number
        and Street)

       

      ________________________________________________________________________________________________________________________________

      (City)                                                                                
        (State)     (Zip
        Code)

       

      Telephone
        Number: (___)
        ____________________________________________________________________________________________________

      

       

      
        
          
          

        

        
          D-2

          
            

          

        

        
          
          

        

      

       

      If
        an
        individual:

       

      Age:_________   
        Citizenship:_________  Where
        registered to vote:________________ 

      

      If
        a
        corporation, partnership, limited liability company, trust or other
        entity:

       

      Type
        of
        entity:______________________________________________________________________________

       

      State
        of
        formation:________________________          Date
        of
        formation: ___________________________

      

      Social
        Security or Taxpayer Identification
        No.____________________________________________________

      

      Send
        all
        correspondence to (check one): ____ Residence
        Address              
 ____
        Business Address

      

      Email
        address of contact person: ___________________________

      

      Current
        ownership of securities of the Company:

       

      __________
        shares of common stock, par value $0.001 per share (the “Common Stock”)
options
        to purchase __________ shares of Common Stock.

      

      Please
        identify the number of shares that you or your organization will beneficially
        own immediately after Closing, identifying the Shares purchased by your or
        your
        organization pursuant to this Purchase Agreement and those shares purchased
        by
        your or your organization through other transactions:

      

      Shares
        purchased pursuant to this Purchase Agreement: _______________

       

      Shares
        purchased by your or your organization through other transactions:
        _______________

       

      Total:
        ________________

      

      
        
          
          

        

        
          D-3

          
            

          

        

        
          
          

        

      

      BENEFICIAL
        OWNERSHIP INFORMATION: Please describe the beneficial ownership of the shares
        owned by you or your organization. If the Investor is a partnership, limited
        liability company or similar entity, please identify the individual
        or
individuals
        with
        ultimate voting and dispositive power over such shares, typically the investment
        manager or investment advisor with primary responsibility for this investment.
        This information is available from your compliance officer or general counsel.
        THE COMPANY WILL NOT BE ABLE TO REGISTER YOUR SHARES WITHOUT THIS IMPORTANT
        INFORMATION.

      

      Exception:
        This information need not be provided if the Investor is a publicly traded
        company. 

      ____________________________________________________________________________________________________________________________

      ____________________________________________________________________________________________________________________________

      ____________________________________________________________________________________________________________________________

      ____________________________________________________________________________________________________________________________

      ____________________________________________________________________________________________________________________________

      ____________________________________________________________________________________________________________________________

      ____________________________________________________________________________________________________________________________

      

      Have
        you
        or your organization had any position, office or other material relationship
        within the past three years with the Company or its affiliates? 

       

      
        	
                o
                  Yes                                    o
                  No

              
	
                 

              
	
                If
                  yes, please indicate the nature of any such relationships
                  below:

              

      

      ____________________________________________________________________________________________________________________________

      ____________________________________________________________________________________________________________________________

      ____________________________________________________________________________________________________________________________

      ____________________________________________________________________________________________________________________________

      ____________________________________________________________________________________________________________________________

      ____________________________________________________________________________________________________________________________

      ____________________________________________________________________________________________________________________________

       

      
        
          
          

        

        
          D-4

          
            

          

        

        
          
          

        

      

       

      B. STATUS
        AS ACCREDITED INVESTOR

      

      The
        undersigned is an “accredited investor” as such term is defined in Regulation D
        under the Act, as at the time of the sale of the Shares the undersigned falls
        within one or more of the following categories (Please
        initial one or more, as applicable):1

       

      ____ (1) a
        bank as
        defined in Section 3(a)(2) of the Act, or a savings and loan association or
        other institution as defined in Section 3(a)(5)(A) of the Act whether
        acting in its individual or fiduciary capacity; a broker or dealer registered
        pursuant to Section 15 of the Securities Exchange Act of 1934; an insurance
        company as defined in Section 2(13) of the Act; an investment company
        registered under the Investment Corporation Act of 1940 or a business
        development company as defined in Section 2(a)(48) of that Act; a Small
        Business Investment Corporation licensed by the U.S. Small Business
        Administration under Section 301(c) or (d) of the Small Business Investment
        Act of 1958; a plan established and maintained by a state, its political
        subdivisions, or any agency or instrumentality of a state or its political
        subdivisions for the benefit of its employees, if such plan has total assets
        in
        excess of $5,000,000; an employee benefit plan within the meaning of the
        Employee Retirement Income Security Act of 1974 if the investment decision
        is
        made by a plan fiduciary, as defined in Section 3(21) of such Act, which is
        either a bank, savings and loan association, insurance company, or registered
        investment adviser, or if the employee benefit plan has total assets in excess
        of $5,000,000 or, if a self-directed plan, with the investment decisions
        made
        solely by persons that are accredited investors;

      

      ____ (2) a
        private
        business development company as defined in Section 202(a)(22) of the
        Investment Adviser Act of 1940;

      

      ____ (3) an
        organization described in Section 501(c)(3) of the Internal Revenue Code of
        1986, as amended, corporation, Massachusetts or similar business trust, or
        partnership, not formed for the specific purpose of acquiring the Shares
        offered, with total assets in excess of $5,000,000;

      

      ____ (4) a
        natural
        person whose individual net worth1 ,
        or joint net worth1 
        with that person’s spouse, at the time of such person’s purchase of the Shares
        exceeds $1,000,000;

      

      ____ (5) a
        natural
        person who had an individual income in excess of $200,000 in each of the
        two
        most recent years or joint income with that person’s spouse in excess of
        $300,000 in each of those years and has a reasonable expectation of reaching
        the
        same income level in the current year;

      

      ____ (6) a
        trust,
        with total assets in excess of $5,000,000, not formed for the specific purpose
        of acquiring the Shares offered, whose purchase is directed by a sophisticated
        person as described in Rule 506(b)(2)(ii) of Regulation D; and

      

      ____ (7) an
        entity
        in which all of the equity owners are accredited investors (as defined
        above).

      

      C. REPRESENTATIONS

      

      The
        undersigned hereby represents and warrants to the Company as
        follows:

      _______________

      1 As
        used in this Questionnaire, the term "net worth" means the excess of total
        assets over total liabilities. In computing net worth for the purpose of
        subsection (4), the principal residence of the investor must be valued at
        cost,
        including cost of improvements, or at recently appraised value by an
        institutional lender making a secured loan, net of encumbrances. In determining
        income, the investor should add to the investor's adjusted gross income any
        amounts attributable to tax exempt income received, losses claimed as a limited
        partner in any limited partnership, deductions claimed for deception,
        contributions to an IRA or KEOGH retirement plan, alimony payments, and any
        amount by which income from long-term capital gains has been reduced in arriving
        at adjusted gross income.

       

      
        
          
          

        

        
          D-5

          
            

          

        

        
          
          

        

      

       

      
        	
                1.

              	
                Any
                  purchase of the Shares would be as principal for the account of
                  the
                  undersigned and not for the account of any other person or with
                  a view to
                  any resale, fractionalization, division, or distribution
                  thereof.

              

      

      

      
        	
                2.

              	
                The
                  information contained herein is complete and accurate and may be
                  relied
                  upon by the Company, and the undersigned will notify the Company
                  immediately of any material change in any of such information occurring
                  prior to the closing, if any, with respect to the purchase of Shares
                  by
                  the undersigned.

              

      

      

      
        	
                3.

              	
                There
                  are no suits, pending litigation, or claims against the undersigned
                  that
                  could materially affect the net worth of the undersigned as reported
                  in
                  this Questionnaire.

              

      

      

      
        	
                4.

              	
                The
                  undersigned acknowledges that there may occasionally be times when
                  the
                  Company determines that it must suspend the use of the prospectus
                  forming
                  a part of the Registration Statement (as such terms are defined
                  in the
                  Securities Purchase Agreement to which this Questionnaire is attached),
                  subject to the provisions in Section 2(c) of the Registration Rights
                  Agreement, which is attached as Exhibit A to the Securities Purchase
                  Agreement. The undersigned is aware that, in such event, the Shares
                  will
                  not be subject to ready liquidation, and that any Shares purchased
                  by the
                  undersigned would have to be held during such suspension. The overall
                  commitment of the undersigned to investments which are not readily
                  marketable is not excessive in view of the undersigned’s net worth and
                  financial circumstances, and any purchase of the Shares will not
                  cause
                  such commitment to become excessive. The undersigned is able to
                  bear the
                  economic risk of an investment in the
                  Shares.

              

      

      

      
        	
                5.

              	
                The
                  undersigned has carefully considered the potential risks relating
                  to the
                  Company and a purchase of the Shares, and fully understands that
                  the
                  Shares are speculative investments which involve a high degree
                  of risk of
                  loss of the undersigned’s entire investment. Among others, the undersigned
                  has carefully considered each of the risks identified in the Transaction
                  Documents.

              

      

      

      IN
        WITNESS WHEREOF, the undersigned has executed this Questionnaire this ____
        day
        of [________], 2006, and declares under oath that it is truthful and
        correct.

       

      
        	
                 

              	
                 

              	
                __________________________________________

              
	
                 

              	
                 

              	
                Print
                  Name

              
	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                By:
                  _______________________________________________

              
	
                 

              	
                 

              	
                Signature

              
	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                Title:
                  _____________________________________________

              
	
                 

              	
                 

              	
                (required
                  for any purchaser that is a corporation, partnership, trust or
                  other
                  entity)

              

      

       

      
        
          
          

        

        
          D-6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]