LOTUS PACIFIC INC
EX-10.9
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<p align="right" style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit 10.9</font></b></p>

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<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">EQUITY PURCHASE
AGREEMENT</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This <b><font style="font-weight:bold;">EQUITY PURCHASE AGREEMENT</font></b>,
dated as of </font>December 20,
2003 (this &#147;Agreement&#148;), is made and entered into by and among Lotus Pacific,
Inc., a Delaware corporation (&#147;Seller&#148;), TCL Information Technology Industrial (Group)
Ltd., a corporation incorporated in the British Virgin Islands (&#147;Buyer&#148;) and
TCL Digital Technologies, Ltd., a corporation incorporated in the People&#146;s
Republic of China (the &#147;Company&#148;) with reference to the following facts:</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">RECITALS</font></u></b></p>

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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Seller is the record and beneficial owner of 50% of the
equity (the &#147;Equity&#148;) of the Company.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Seller desires to sell the Equity, which represents all
of the Equity of the Company held by Seller, to Buyer and Buyer desires to
purchase the Equity from Seller upon the terms and conditions set forth herein.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in
consideration of the above premises, and the representations, warranties,
covenants, conditions, and promises exchanged by the parties hereto, Buyer and
Seller hereby agree as follows:</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 1<br>
<br>
DEFINITIONS</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Defined Terms</u>.&#160; Unless otherwise defined in this Agreement,
the capitalized terms used in the above premises and throughout this Agreement
shall have the meanings set forth in this Section 1.1.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Claim</font></u>:&#160; Any claim, legal or equitable cause of
action, suit, litigation, proceeding (including a regulatory or administrative
proceeding), grievance, complaint, demand, charge, investigation, audit,
arbitration, mediation, or other process for settling disputes or
disagreements, including without limitation, any of the foregoing processes or
procedures in which injunctive or equitable relief is sought.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Liability</font></u>:&#160; Any liability, loss, cost, debt,
indebtedness, lien, Claim, expense, loss of tax benefits or deductions,
assessment, fine, penalty, deficiency, interest, payment, contract, judgment,
damages of every kind and nature or other obligation (whether due or payable,
absolute or contingent, liquidated or unliquidated, secured or unsecured).</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Person</font></u>:&#160; Any individual, trustee, corporation, general
or limited partnership, limited liability company or partnership, joint
venture, joint stock company, bank, firm, Governmental Authority, trust,
association, organization or unincorporated entity of any kind.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>


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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Use of Defined Terms</u>.&#160; Any defined term used in the plural shall
refer to all members of the relevant class and any defined term used in the
singular shall refer to any one or more of the members of the relevant class.</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 2<br>
<br>
PURCHASE OF THE EQUITY</font></p>

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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Sale of the Equity</u>.&#160; Upon the terms and subject to the conditions
contained in this Agreement, as of the Closing, Seller shall fully and
irrevocably sell, assign, transfer, convey, and deliver to Buyer the Equity,
free and clear of any all encumbrances, pledges, Claims, restrictions,
judgments, defects in title, limitations, Liabilities, restrictions on
transferability, or other liens, together with all of the right, title,
interest, and other incidents of ownership in and to such Equity which Seller
may have or possess.&#160; Such sale,
assignment, transfer, conveyance, and delivery shall be effected by Seller&#146;s
delivery at Closing (as defined in Section 6.1) to Buyer of (i)&nbsp;the
certificates representing the Equity held by such Seller, all duly endorsed in
blank, if any, and with all necessary documentary stamps affixed thereto, or
(ii) such other assignments, documents of transfer, instruments, or other items
as reasonably requested by Buyer for the purpose of assigning, assuming,
transferring, conveying, perfecting, confirming, and/or reducing to possession
the Equity held by Seller.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Purchase of the Equity</u>.&#160; Upon the terms and subject to the conditions
contained in this Agreement, as of the Closing, Buyer shall purchase, all and
not less than all, of the Equity and, in consideration of and in exchange for
the purchase of the Equity, Buyer shall pay Seller the Purchase Price for the
Equity held by Seller in the amount and in the manner hereinafter set forth:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.2.1&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Purchase Price</u>.&#160; At Closing, Buyer shall pay Seller cash in
the aggregate amount of US$5,622,000 (the &#147;Purchase Price&#148;).</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.2.2&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Manner of Payment</u>.&#160; Payment of the Purchase Price shall, at
Buyer&#146;s election, be paid via wire transfer or other form of electronic funds
transmission pursuant to payment instructions delivered by Seller to Buyer no
later than two (2) business days prior to the Closing Date (as defined in
Section 6.2).</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Disclaimer</u>.&#160; EXCEPT AS EXPRESSLY SET FORTH IN THIS
AGREEMENT, SELLER HAS NOT MADE AND DOES NOT MAKE (NOR SHALL SELLER BE DEEMED TO
HAVE MADE OR TO MAKE BY VIRTUE OF THE SALE OF THE EQUITY TO BUYER OR ANY OTHER
FACT OR CIRCUMSTANCE WHATSOEVER) TO BUYER OR ANY OTHER PERSON ANY
REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO OR IN CONNECTION
WITH THE EQUITY, INCLUDING, WITHOUT LIMITATION, ANY REPRESENTATION OR WARRANTY
OF TITLE, WHICH IS EXPRESSLY DISCLAIMED AND EXCLUDED.&#160; THERE ARE NO SUCH REPRESENTATIONS OR WARRANTIES WHATSOEVER OF
SELLER OTHER THAN THE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN
THIS AGREEMENT, WHICH REPRESENTATIONS AND WARRANTIES ARE EXCLUSIVE AND IN LIEU
OF ALL OTHER REPRESENTATIONS AND WARRANTIES OF SELLER</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>


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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WITH RESPECT TO THE SALE
OF THE SHARES, ANY ASSET OR PROPERTY OF THE COMPANY OR ITS BUSINESS, WHETHER
STATUTORY, WRITTEN, ORAL OR IMPLIED.</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 3<br>
<br>
REPRESENTATIONS AND WARRANTIES OF BUYER</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Buyer represents,
warrants, and covenants to Seller the accuracy and completeness of the matters
set forth in this Article 3 as of the date hereof and as of the Closing Date.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Corporate Authority</u>.&#160; Buyer has the requisite corporate power and
authority to enter into this Agreement and any related documents to which Buyer
is a party and to carry out its obligations hereunder and thereunder.&#160; The execution, delivery, and performance of
this Agreement and any related documents, and the consummation of the
transactions contemplated hereby and thereby have been duly and validly authorized
by all necessary corporate action on the part of Buyer.&#160; This Agreement and any related documents
will have been duly and validly executed and delivered by Buyer, and are the
valid and binding agreements of Buyer, enforceable against Buyer in accordance
with their terms, subject to (i) laws of general application relating to
bankruptcy, insolvency, and the relief of debtors, and (ii) rules of law
governing specific performance, injunctive relief, and other equitable
remedies.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>No Violation</u>.&#160; The execution, delivery, and performance of
this Agreement and any related document, and the consummation of the
transactions contemplated hereby and thereby will not constitute, nor with
notice or lapse of time or both would constitute: (i) a violation of Buyer&#146;s
charter documents (as amended or restated to date), bylaws or operating
agreements (as amended or restated to date) or resolutions or actions of
Buyer&#146;s owners or governing body or duly authorized committees thereof, or (ii)
a breach of or default under any contract or judgment to which Buyer is subject
or bound.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Investment</u>.&#160; Buyer is acquiring the Equity for investment
purposes only for its own account, and not with a view to, or for resale in
connection with, any distribution thereof, and it has no present intention of
selling or distributing any such securities.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>No Public Market</u>. Buyer
understands that no public market now exists for any of the Securities issued
by the Company and that it is uncertain whether a public market will ever exist
for the Equity.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Access to Data</u>.&#160; Buyer has had an opportunity to discuss the
Company&#146;s business, management and financial affairs with its management and to
obtain any additional information necessary or appropriate for deciding whether
or not to purchase the Equity.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Knowledge And Experience</u>.&#160; Buyer has such knowledge and experience in
financial and business matters that it is capable of evaluating the merits and
risks of an investment in the Equity, and it is able to bear the economic risk
of such investment.&#160; Further, Buyer has
such knowledge and experience in financial and business matters that he, she or
it is capable of utilizing the information made available to him, her or it in
connection with the</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">purchase of the Equity,
of evaluating the merits and risks of an investment in the Equity and of making
an informed investment decision with respect to the Equity.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 4<br>
<br>
REPRESENTATIONS AND WARRANTIES OF THE COMPANY</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company
represents, warrants, and covenants to Buyer and Seller the accuracy and
completeness of the matters set forth in this Article 4 as of the date hereof
and as of the Closing Date.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Organization and Corporate Power</u>.&#160; The Company is a corporation duly organized,
validly existing and in good standing under the laws of the People&#146;s Republic
of China and is qualified in all jurisdictions in which the nature of its
property owned or leased by it or the conduct of its business requires such
qualification, except for such jurisdictions where the failure to so qualify
would not individually or in the aggregate materially and adversely affect the
business, operations or financial condition of the Company.&#160; The Company has all requisite corporate
power and authority necessary to own and operate its properties and to carry on
its business as now conducted and to enter into and to carry out the provisions
of this Agreement and the transactions contemplated hereby.&#160; The Company has no subsidiaries or
affiliated companies and does not otherwise directly or indirectly control or
own any other corporation, association, partnership, joint venture or other
business entity or arrangement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Capitalization</u>.&#160; Immediately prior to the Closing, the
Company&#146;s equity is held by the following entities and individuals in the
following respective percentages: Seller (50%), five individuals, Liu Dongyuan
(29.8279%), Cheng Fei (10.1528%), Gao Jianou (3.1379%), Wang Huansheng
(1.6745%), and Han Jingzhe (0.2069%), and TCL Computer Technology (5%).</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Title to Property</u>.&#160; The Company has good and marketable title to
all of its properties and assets, free and clear of restrictions or conditions
on transfer or assignment and free and clear of mortgages, liens, pledges,
charges, encumbrances, equities, claims, easements, rights of way, covenants,
conditions or restrictions, except for current taxes and assessments not
delinquent and for matters that are not material, individually or in the
aggregate, and do not materially detract from or interfere with the present or
intended use of any of these assets, nor materially impair the business,
operation or proposed operation of the Company.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Patents and Other Intangible
Rights</u>.&#160; The Company has good title
(without any unlawful misappropriation) to all Intellectual Property (as
defined hereinafter) of the Company, or adequate licenses and rights to use the
Intellectual Property of others, which is necessary for the conduct of the
business of the Company as now conducted, and, to the knowledge of the Company,
no individual or entity (other than the Company) owns any interest in, or has
made any claim with respect to any Intellectual Property.&#160; To the knowledge of the Company, the Company
is not infringing upon or otherwise acting adversely to the right or claimed
right of any person with respect to any of the foregoing.&#160; None of the Intellectual Property is subject
to any mortgage, pledge, lien, charge, security interest or encumbrance or
lease or license or any claim or litigation proceedings alleging a violation of
the right of any third party.&#160; To the
knowledge of the Company, no officer, director or employee of the Company is
under any restriction, whether</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>


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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">contractual, or by virtue
of previous employment or otherwise, that would prevent him from performing his
duties for the Company or prevent the Company from using the Intellectual
Property.&#160; For the purposes of this
Section 4.4, the term &#147;Intellectual Property&#148; means, with respect to the
Company, (a) inventions, whether or not reduced to practice and whether or not
yet made the subject of a pending patent application or applications, (b) ideas
and conceptions of potentially patentable subject matter, including, without
limitation, any patent disclosures, whether or not reduced to practice and whether
or not yet made the subject of a pending patent application or applications,
(c) statutory invention registrations, patents, patent registrations and patent
applications and all improvements to the inventions covered in each such
registration, patent or application, (d) trademarks, service marks, trade
dress, logos, symbols, trade names and corporate names and registrations and
applications for registration thereof, (e) copyrights (registered or otherwise)
and registrations and applications for registration thereof, (f) computer
software, source code, data and documentation, (g) trade secrets and
confidential business information (including ideas, formulas, compositions,
inventions, and conceptions of inventions whether patentable or unpatentable
and whether or not reduced to practice), technology (including know-how and
show-how), manufacturing and production processes and techniques, research and
development information, drawings, specifications, designs, plans, proposals,
technical data, copyrightable works, financial, marketing and business data,
pricing and cost information, business and marketing plans and customer and
supplier lists and information, (h) copies and tangible embodiments of all of
the foregoing, in whatever form or medium, (i) all rights to obtain and rights
to apply for patents, and to register trademarks and copyrights, and (j) all
rights to sue for present and past infringement of any of the Intellectual
Property rights hereinabove set out.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Litigation</u>.&#160; There are no (and the Company is not aware
of any basis for any) (a) actions, proceedings or investigations pending or any
threat thereof, or verdicts or judgments entered against the Company or any of
its officers, directors or affiliates before any court or before any administrative
agency or officer which questions the validity of the Agreement or the right of
the Company to enter into them or to consummate the transactions contemplated
thereby, or which might result, individually or in the aggregate, in any
material adverse change in the business, properties or condition, financial or
otherwise, of the Company or (b) violations by the Company of any foreign,
federal, state or local laws, rules, regulations or orders.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Financial Statements</u>.&#160; A copy of the Company&#146;s unaudited monthly
balance sheets from March 2003 (the month the Company started its operations)
through the end of June 2003 (the &#147;Financial Statements&#148;) has previously been
provided to Buyer and Seller.&#160; The
Financial Statements (a) are complete and correct in all material respects; and
(b) fairly present, in all material respects, the financial position of the
Company as of the date thereof and the results of the operations of the Company
for the periods covered thereby.&#160; Since
the date of the last Financial Statement, there has been no material adverse
changes to the Company&#146;s business, finances or prospects and the Company has
operated its business in the ordinary course.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Fees, Commissions and Expenses</u>.&#160; The Company has made no agreements or
arrangements for brokerage commissions, finders&#146; fees or similar compensation
in connection with the transactions contemplated by this Agreement.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Government and Equity Holder
Consents</u>.&#160; Other than final approval
for the change of ownership of the Equity from the relevant authorities or
regulatory bodies in China, and the filing and registration incidental thereto,
no consent, approval, order, authorization, registration, qualification,
designation, license, declaration or filing with any local, state or municipal
authority is required on the part of the Company in connection with the
consummation of the transactions contemplated herein.&#160; This Agreement or the transactions consummated hereby do not
require approval or consent from the other equity holders of the Company who
are not party to this Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.9&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>No Violation</u>.&#160; The execution, delivery, and performance of
this Agreement and any related document, and the consummation of the
transactions contemplated hereby and thereby will not constitute, nor with
notice or lapse of time or both would constitute: (i) a violation of Company&#146;s
charter documents (as amended or restated to date), bylaws or operating
agreements (as amended or restated to date) or resolutions or actions of
Company&#146;s owners or governing body or duly authorized committees thereof, or
(ii) a breach of or default under any contract or judgment to which Company is
subject or bound.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.10&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Validity of Issuance</u>.&#160; The Equity, when transferred, sold, and delivered,
and, assuming the accuracy and completeness of Seller&#146;s representations
hereunder, will be free and clear of any pledges, security interests, claims,
liens or encumbrances and, assuming the accuracy and completeness of Buyer&#146;s
representations hereunder, and will have been issued in compliance with all
applicable state and federal securities laws.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.11&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Disclosure</u>.&#160; Neither this Agreement nor any of the
materials relating hereto, or relating to the transactions contemplated hereby,
contain any untrue statements of a material fact or omit a material fact
necessary to make the statements contained herein or therein not
misleading.&#160; The financial and similar
projections provided to Buyer with respect to the Company are merely
descriptions and estimates made by the Company and are not intended to be
commitments of the Company.&#160; There is no
fact known to the Company which (individually or in the aggregate) materially
adversely affects the business, operations, affairs, condition, properties,
assets or prospects of the Company which has not been set forth in this
Agreement, or any other related transaction agreements.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.12&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Material Contracts</u>.&#160; The Company has made available to Buyer all
material contracts, agreements or instruments of the Company.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.13&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>No Debt</u>.&#160; Except for the amounts set forth on the
Financial Statements, as of the Closing, the Company shall have no Indebtedness
(defined below).&#160; &#147;Indebtedness,&#148; for
the purposes hereof, shall mean, without duplication, the outstanding principal
amount of, and all interest, penalties, premiums and other amounts accrued in
respect of, (i) all indebtedness for borrowed money of the Company, whether or
not recourse to the Company, (ii) every obligation of the Company evidenced by
bonds, debentures, notes or other similar instruments, (iii) every
reimbursement obligation of the Company with respect to letters of credit,
banker&#146;s acceptances or similar facilities issued for the account of the
Company, (iv) every obligation of the Company issued or assumed as the deferred
purchase price of property or services of any type, (v) every capital lease
obligation of the Company, (vi) all obligations of the Company upon which
interest charges are customarily paid (but excluding trade accounts payable
arising in the ordinary course</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of business consistent
with past practice), and (vii) every obligation of the type referred to in
clauses (i) through (vi) of another person, the payment of which the Company
has guaranteed, or for which the Company is responsible or liable, directly or
indirectly, jointly or severally, as obligor, guarantor or otherwise.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.14&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Transactions with Affiliates</u>.&#160; The Company has no agreements,
understandings or proposed transactions, including any agreements,
understandings or proposed transactions between the Company and any of its
officers, directors, affiliates or any affiliate thereof.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.15&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Permits</u>.&#160;&#160; The Company has all franchises, permits,
licenses, orders, certificates, authorizations, approvals and any similar
authority necessary for the conduct of its business as it is planned to be
conducted, the lack of which could materially affect the business, properties
prospects or financial condition of the Company.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 5<br>
<br>
REPRESENTATIONS AND WARRANTIES OF SELLER</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Seller represents,
warrants, and covenants to Buyer the accuracy and completeness of the matters
set forth in this Article 5 as of the date hereof and as of the Closing Date:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Authority</u>.&#160; Seller has the requisite corporate, entity,
or other power and authority to enter into this Agreement and any related
documents to which it is a party and to carry out its obligations hereunder and
thereunder. The execution, delivery, and performance of this Agreement and any
related documents and the consummation of the transactions contemplated hereby
and thereby have been duly and validly authorized by all necessary corporate,
entity, or other action on the part of Seller.&#160;
This Agreement and any related documents will have been duly and validly
executed and delivered by Seller and are the valid and binding agreements of
such Seller, enforceable against it in accordance with their terms, subject to
(i) laws of general application relating to bankruptcy, insolvency and the
relief of debtors, and (ii) rules of law governing specific performance,
injunctive relief and other equitable remedies.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>No Consents</u>. Other than final
approval for the change of ownership of the Equity from the relevant
authorities or regulatory bodies in China and the filing and registration
incidental thereto of the Chinese government, there are no approvals,
authorizations, consents, orders, licenses, permits, or other actions of,
declarations, filings, or registrations with or notices to be furnished to any
Person in connection with the execution, delivery, or performance of this
Agreement by Seller or Seller&#146;s sale of the Equity to Buyer as contemplated
hereby which will not have been made, obtained, or furnished prior to the
Closing.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>No Violation</u>.&#160; The execution, delivery, and performance of
this Agreement and any related document to which Seller is a party, and the
consummation of the transactions contemplated hereby and thereby will not
constitute, nor with notice or lapse of time or both would constitute:&#160; (i) a violation of such Seller&#146;s certificate
of incorporation (as amended or restated to date), bylaws (as amended or
restated to date); or (ii) the creation or imposition of any lien or
encumbrance affecting or encumbering the Equity held by such Seller.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Ownership of the Equity</u>.
Seller is the sole and exclusive record, legal, and beneficial owner of, and
has good, valid, and indefeasible title to the Equity and has fulfilled its
obligation to pay or contribute additional capital or fund in the aggregate
amount of US$1,842,216.71 under the Articles of Association of the Company
dated January 18 2003 (&#147;Capital Contribution&#148;), and upon payment of the
Purchase Price for the Equity, Buyer will acquire the Equity free and clear of
any encumbrances, pledges, Claims, restrictions, judgments, defects in title,
limitations, Liabilities, restrictions on transferability, or other liens of
any kind or nature, together with all of the right, title, interest, and other
incidents of ownership in and to such Equity which Seller may have or possess.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 6<br>
<br>
CLOSING; CLOSING CONDITIONS</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>The Closing</u>.&#160;&#160; The parties acknowledge and agree that the
consummation of the transactions contemplated under this Agreement shall occur
contemporaneously with the execution of this Agreement.&#160; Only when all such transactions have been
consummated and the Purchase Price has been paid shall the closing (the
&#147;Closing&#148;) of the transactions under this Agreement have occurred.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Closing Logistics</u>.&#160; The Closing shall occur at the offices of
the Company, on August &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2003
(the &#147;Closing Date&#148;) or such other time, date and place, as mutually agreed
upon by all of the parties.&#160;&#160; All acts,
deliveries, and confirmations comprising the Closing, including satisfaction of
all conditions precedent to Closing, regardless of chronological sequence,
shall be deemed to occur contemporaneously and simultaneously as of 11:59 p.m.
on the Closing Date and no such act, delivery, confirmation, or condition shall
be effective unless and until the last of all such items shall have
occurred.&#160; The parties shall use good
faith efforts to effectuate the Closing on the day on which this Agreement is
fully executed by all parties.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Buyer&#146;s Closing Conditions</u>.&#160; The obligations of Buyer to proceed to
Closing are subject to the full satisfaction, at or prior to Closing, of the
following conditions precedent:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.3.1&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Representations and Warranties are
True</u>.&#160; The representations and
warranties made by Company in Article 4 and Seller in Article 5 of this
Agreement shall be true and correct as of the Closing Date as though made on
and as of the Closing Date.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.3.2&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Deliver Share Certificates; Perform
Covenants</u>.&#160; Seller shall have
delivered to Buyer the certificates representing the Equity and shall have
satisfied their other covenants, obligations, and agreements set forth in this
Agreement which are required to be fulfilled by Seller prior to or at the
Closing.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.3.3&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Delivery of Signature Page</u>.&#160; Seller and the Company shall have delivered
to Buyer an executed signature page to this Agreement and such other
instruments, assignments, and documents as Buyer&#146;s legal counsel may reasonably
request, consistent with the intent and purposes of this Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.3.4&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Examination of Books and Records</u>.&#160; The Company will have made available to
Buyer (who may appoint representatives to perform such inspection) during
normal</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">business hours, for
inspection and copying, all of the Company&#146;s books, records, contracts and
documents of or relating to the Company.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.3.5&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Suits/Proceedings</u>.&#160; No action, suit, proceeding or investigation
by or before any court, administrative agency or other governmental authority
shall have been instituted or threatened to restrain, prohibit or invalidate
the transactions contemplated by this Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.3.6&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Performance</u>.&#160; The Company and Seller will have duly
performed and complied in all material respects with each of the terms,
agreements and conditions required by this Agreement to be performed and
complied with by it prior to or at the Closing.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.3.7&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Compliance with Laws and Regulations</u>.&#160; The sale of the Equity to Buyer shall be
permitted by all applicable laws and regulations.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.3.8&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Deliver proof of Capital Contribution.</u>&#160; Seller shall have delivered to Buyer
satisfactory documentary evidence that Seller has fully fulfilled its Capital
Contribution obligations.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Seller&#146;s Closing Conditions</u>.&#160; The obligations of Seller to proceed to
Closing are subject to the full satisfaction, at or prior to Closing, of the
following conditions precedent:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.4.1&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Representations and Warranties are
True</u>. The representations and warranties of Buyer made in Article 3 and the
Company in Article 4 of this Agreement shall be true and correct as of the
Closing Date as though made on and as of the Closing Date.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.4.2&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Purchase Price; Perform Covenants</u>.&#160; Buyer shall have paid to Seller the Purchase
Price and satisfied Buyer&#146;s other covenants, obligations, and agreements as set
forth in this Agreement which are required to be fulfilled by Buyer prior to or
at the Closing.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.4.3&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Delivery of Signature Page</u>.&#160; Buyer and the Company shall have delivered
to Seller an executed signature page to this Agreement and such other
instruments, assignments and documents as Seller&#146;s legal counsel may reasonably
request, consistent with the intent and purposes of this Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.4.4&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Performance</u>.&#160; Buyer and the Company will have duly
performed and complied in all material respects with each of the terms,
agreements and conditions required by this Agreement to be performed or
complied with by it prior to or at the Closing.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.4.5&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Suits/Proceedings</u>.&#160; No action, suit, proceeding or investigation
by or before any court, administrative agency or other governmental authority
will have been instituted or threatened to restrain, prohibit or invalidate the
transactions contemplated by this Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.4.6&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Compliance with Laws and Regulations</u>.&#160; The sale of the Equity to Buyer shall be
permitted by all applicable laws and regulations.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Closing Assurances</u>.&#160; If at any time before or after the Closing
legal counsel for any party hereto shall deem it necessary or reasonably
appropriate to take further or additional</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">steps or to execute
further or additional agreements, instruments, documents, or certificates for
the purpose of confirming, evidencing, or fully consummating any of the
transactions contemplated under this Agreement or any transaction incident
thereto, then all applicable parties shall execute, acknowledge, and deliver
any such agreements, instruments, documents, or certificates or take such
further or additional steps consistent with the intent and purposes of this
Agreement.</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 7<br>
<br>
MISCELLANEOUS PROVISIONS</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Notices</u>.&#160; Any and all notices, requests, consents,
demands, or other communications required or permitted to be given under this
Agreement shall be in writing and shall be deemed to have been duly given (i)
when delivered, if sent by United States registered or certified mail (return
receipt requested), (ii) when delivered, if delivered personally by commercial
courier, (iii) on the second (or the seventh, for overseas address) following
business day, if sent by United States Express Mail or overnight courier, or
(iv) upon the date reflected on a fax confirmation from the transmitting fax
machine, if sent by facsimile transmission and delivery of the facsimile
transmission is confirmed telephonically within one (1) business day, in each
case to the parties at the following addresses or facsimile numbers (or at such
other addresses or facsimile numbers as shall be specified by like notice) with
applicable postage or delivery charges prepaid:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to Seller:</font></p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lotus Pacific, Inc.</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2402 Michelson Drive,
  Suite 220</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Irvine, CA 92612</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attn: CFO</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax:&#160; 949-475-1808</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With a copy to:</font></p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Reed Smith LLP</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1901 Avenue of the
  Stars, Suite 700</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Los Angeles, CA 90067</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attn: John M. Iino,
  Esq.</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax: 310-734-5299</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to Buyer:</font></p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">TCL Information
  Technology Industrial (Group) Ltd.</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13/F TCL Tower</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8 Tai Chung Road</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tsuen Wan</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">New Territories</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hong Kong</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to Company:</font></p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">TCL Digital
  Technologies, Ltd.</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A18 Sanhuan Xi Road,
  North, Suite B409</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.14%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.88%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Haidian District,
  Beijing, China</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt 3.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Expenses</u>.&#160; Each party hereto shall pay its own costs
and expenses (including all legal and accounting fees) arising from the
negotiation, execution, and performance of this Agreement, whether or not the
transactions contemplated hereunder are consummated.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Indemnification</u>.&#160; Subject to Section 2.3, the parties hereto
agree to indemnify, defend and hold harmless the other parties and the other
parties&#146; officers, directors, employees, stockholders, parent companies, direct
and indirect subsidiaries, joint venture partners, affiliates, partners,
agents, attorneys, independent accountants, auditors, insurers,
representatives, predecessors, successors and assigns (collectively,
&#147;Indemnitees&#148;), from and after the Closing Date, for a period of such claim&#146;s
applicable statute of limitations, against any damages, losses, obligations,
liabilities, claims, encumbrances, deficiencies, costs and expenses, including
without limitation, reasonable attorneys&#146; fees and other costs and expenses
incident to any action, investigation, claim or proceeding (all hereafter
referred to as &#147;Losses&#148;), arising out of or relating to any misrepresentation
or breach of or default in connection with any representation, warranty,
covenant or agreement given or made by the indemnifying party hereto (the
&#147;Indemnifying Party&#148;) in this Agreement.&#160;
In the event an Indemnitee become aware of a third-party claim which
Indemnitee believes may result in an indemnification demand under this Section
7.3, the Indemnitee shall promptly notify the Indemnifying Party of such claim,
and Indemnifying Party shall be entitled, at its expense, to participate in any
defense of such claim.&#160; Indemnitee shall
have the right in its sole discretion to settle any such claim; provided,
however, that the Indemnitee may not effect the settlement of any such claim
without the consent of the Indemnifying Party, which consent shall not be
unreasonably withheld.&#160; In the event
that the Indemnifying Party has consented to any such settlement, Indemnifying
Party shall have no power or authority to object to the amount of any claim by
Indemnitee for indemnity under this Section 7.3 with respect to such
settlement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Confidentiality of this Agreement;
Publicity</u>. &#160;Each of the terms and
conditions of this Agreement shall be confidential and each of the parties
hereto agrees to maintain the confidentiality of this Agreement and each of its
terms and provisions hereof.&#160; Unless
required by court order, other legal process, applicable law or regulations
(including without limitation, applicable securities laws and stock exchange
rules), or if consented to by all other parties hereto, this Agreement may not
be disclosed by any party hereto and no party may issue or release any public
announcement, press release, statement, or acknowledgment of the existence of,
or reveal publicly the terms, conditions, or status of, the transactions
provided for herein without the prior written consent of all of the other
parties as to the content and timing of release of and the media in which such
statement or announcement is to be made. Each party hereto agrees that he, she
or it will not unreasonably withhold any such consent or clearance to public
announcements.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Headings</u>.&#160; The headings of the several sections of this
Agreement are inserted for convenience of reference only and are not intended
to affect the meaning or interpretation of this Agreement.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Entire Agreement</u>.&#160; This Agreement and the documents relating
thereto constitute the final written integrated expression of all of the
agreements between the parties hereto with respect to the matters addressed
herein.&#160; This Agreement supersedes all
prior or contemporaneous, written or oral, memoranda, arrangements, contracts,
or understandings between or among the parties hereto relating to the subject
matter hereof.&#160; Any representations,
promises, warranties, or statements made by any party which differ in any way
from the terms of this Agreement, shall be given no force or effect.&#160; The parties specifically represent, each to
the other, that there are no additional or supplemental agreements or contracts
between them related in any way to the matters herein contained unless specifically
included or referred to herein.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Amendments</u>.&#160; This Agreement may not be amended, modified,
supplemented, or changed, in any minor or material respect, or any provision
hereof waived, unless accomplished through a dated, written instrument which
has been signed by the parties hereto.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Waiver</u>. Neither consummation
of the transactions contemplated hereunder nor any action taken pursuant to
this Agreement, including without limitation any investigation by or on behalf
of any party, shall be deemed to constitute a waiver by the party taking such
action or waiver of compliance with any representation, warranty, condition or
agreement contained herein.&#160; Waiver of
the breach of any one or more provisions of this Agreement shall not be deemed
or construed to be a waiver of other breaches or subsequent breaches of the
same provisions.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.9&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Severability</u>.&#160; In the event that any provision in this
Agreement shall be found by a governmental authority or arbitrator of competent
jurisdiction to be invalid, illegal or unenforceable, such provision shall be
construed and enforced as if it had been narrowly drawn so as not to be
invalid, illegal or unenforceable, and the validity, legality, and
enforceability of the remaining provisions of this Agreement shall not in any
way be affected or impaired thereby.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.10&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Successors and Assigns</u>.&#160; None of the parties hereto may assign this
Agreement or delegate any obligations or duties hereunder, whether voluntarily,
involuntarily, or by operation of law, except with the prior written consent of
all of the other parties to this Agreement; provided, however, that Buyer may
assign this Agreement or delegate its duties to any of its affiliates without
obtaining the consent of any party hereto; provided, further however, the assigning
party shall not be released from its obligations hereunder.&#160; If this Agreement is assigned or duties
hereunder delegated as permitted hereunder, then this Agreement shall be
binding upon the respective successors, successors-in-interests, transferees,
and assigns of all of the parties hereto.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.11&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Governing Law; Consent to
Jurisdiction</u>.&#160; This Agreement and
the rights and obligations of the parties hereunder shall be construed,
interpreted, and enforced in accordance with, and governed by, the laws of the
State of California, without regard to principles relating to conflicts of law,
and of the laws of the United States.&#160;
Any legal action, suit or proceeding arising out of or relating to this
Agreement may be instituted in any state or federal court located within the
County of Los Angeles or County of Orange, State of California, and each party
agrees not to assert, by way of motion, as a defense, or otherwise, in any such
action, suit or proceeding, any claim that it is not subject personally to the jurisdiction
of such court in an inconvenient forum, that the venue of the action, suit or
proceeding is improper or that this</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Agreement or the subject
matter hereof may not be enforced in or by such court.&#160; EACH PARTY FURTHER IRREVOCABLY SUBMITS TO
THE JURISDICTION OF ANY SUCH COURT IN ANY SUCH ACTION, SUIT OR PROCEEDING.&#160; Any and all service of process shall be
effective against any party if given personally or by registered or certified
mail, return receipt requested, or by any other means of mail that requires a
signed receipt, postage prepaid, mailed to such party as herein provided.&#160; Nothing herein contained shall be deemed to
affect the right of any party to serve process in any manner permitted by law
or to commence legal proceedings or otherwise-proceed against any other party
in any jurisdiction.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.12&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Construction</u>.&#160; This Agreement has been drafted with the
joint participation of each of the parties hereto and shall be construed to be
neither against nor in favor of any party hereto, but rather in accordance with
the fair meaning hereof.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.13&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Voluntary Execution of Agreement</u>.&#160; This Agreement is executed voluntarily and
without any duress or undue influence on the part of any of the parties hereto.&#160; Each of the parties acknowledge and agree
that:&#160; (i) it has read this
Agreement;&#160; (ii) it has been represented
in the preparation, negotiation, and execution of this Agreement by legal
counsel of its own choice or that it has voluntarily declined to seek such
counsel; and (iii) is fully aware of the legal and binding effect of this
Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.14&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Attorneys&#146; Fees</u>.&#160; In the event of any dispute with respect to
the subject matter of or construction of this Agreement (including an
arbitration or mediation), the prevailing party shall be entitled to recover
its reasonable attorneys&#146; fees and court, arbitration, or mediation costs
incurred in resolving or settling the dispute, in addition to any and all other
damages or relief which a court, arbitrator or mediator may deem proper.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.15&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>No Third Party Beneficiaries</u>.&#160; This Agreement is not intended to confer
upon any Person other than the parties hereto any rights or remedies hereunder.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.16&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Counterparts</u>.&#160; This Agreement may be executed in two or
more counterparts, each of which shall be binding and collectively shall
constitute one and the same agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.17&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u><font style="letter-spacing:-.1pt;">Waiver
of Jury Trial</font></u><font style="letter-spacing:-.1pt;">.&#160; EACH OF THE PARTIES HEREBY WAIVES TRIAL BY
JURY IN ANY ACTION OR PROCEEDING TO WHICH HE, SHE OR IT MAY BE PARTIES, ARISING
OUT OF, OR IN ANY WAY PERTAINING TO, THIS AGREEMENT.&#160; IT IS AGREED THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY
JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS.&#160; THIS WAIVER IS KNOWINGLY, WILLINGLY AND
VOLUNTARILY MADE BY THE PARTIES AND EACH PARTY HEREBY REPRESENTS THAT NO
REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY PERSON TO INDUCE THIS
WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT.</font></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed and delivered as
of the date first above written.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.84%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Seller:</font></b></p>
  </td>
  <td width="63%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:63.16%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">LOTUS PACIFIC, INC.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="63%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:63.16%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="63%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:63.16%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.84%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="24%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:24.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Yiming Foo</font></p>
  </td>
  <td width="35%" valign="top" style="padding:0in 0in 0in 0in;width:35.46%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.84%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="63%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:63.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:&#160; Yimin Foo, Chief Financial Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="63%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:63.16%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.84%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Buyer:</font></b></p>
  </td>
  <td width="63%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:63.16%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">TCL INFORMATION TECHNOLOGY<br>
  INDUSTRIAL (GROUP) LTD.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="63%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:63.16%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="63%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:63.16%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.84%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="24%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:24.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Li Dongsheng</font></p>
  </td>
  <td width="35%" valign="top" style="padding:0in 0in 0in 0in;width:35.46%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.84%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="63%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:63.16%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font> Li Dongsheng</p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.84%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="63%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:63.16%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: </font>Chairman</p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="63%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:63.16%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.84%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Company:</font></b></p>
  </td>
  <td width="63%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:63.16%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">TCL DIGITAL TECHNOLOGIES, LTD.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="63%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:63.16%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="63%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:63.16%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.84%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="24%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:24.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Li Dongsheng</font></p>
  </td>
  <td width="35%" valign="top" style="padding:0in 0in 0in 0in;width:35.46%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.84%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="63%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:63.16%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font> Li Dongsheng</p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.84%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="63%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:63.16%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: </font>&#160;Chairman</p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>


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