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|   | a)  | US$291,608.00 (for the repurchase of 280,806 shares) for settlement of a price dispute for certain C-Motech model name CMU-300 products previously purchased by Franklin from C-Motech.  ************** |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b)  | US$1,581,456.70 (for the repurchase of 1,522,878 shares) for amounts owed to Franklin by C-Motech for *********** previously agreed to between the Parties. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c)  | US$1,626,935.30 (for the repurchase of 1,566,672 shares) to be paid by December 31, 2010. |
|--------|----------|-------------------------------------------------------------------------------------------|

|   | a)  | Franklin shall pay the Accounts Payable Balance to C-Motech based upon the following schedule: |
|--------|----------|------------------------------------------------------------------------------------------------|

|   | i.  | US$2,000,000.00 on or before July 27, 2010. |
|--------|----------|---------------------------------------------|

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|   | ii.  | US$1,517,182.00 on or before August 31, 2010 (to be paid directly to C-Motech’s United States based subsidiary). |
|--------|-----------|------------------------------------------------------------------------------------------------------------------------|

|   | iii.  | The remaining balance on or before August 31, 2010; such balance to take into account amounts owed to Franklin by C-Motech determined through full account reconciliation. |
|--------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a)  | 1,803,684 shares shall transfer to Franklin upon execution of this Agreement.  C-Motech shall complete and sign the Stock Assignment Separate from Certificate in Exhibit A of this Agreement and within seven (7) business days after the Effective Date of this Agreement, provide Franklin with a certificate or certificates evidencing all of the stock being repurchased along with all other necessary documentation needed to complete the stock transfer. |
|--------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b)  | 1,566,672 shares (the “Remaining Shares”) shall transfer when Franklin pays the amount in Section 1 c) of this Agreement (the “Remaining Payment”).  Should Franklin pay the Remaining Payment in installments, a corresponding amount of the Remaining Shares shall transfer to Franklin.  By way of example, if Franklin pays 50% of the Remaining Payment, 50% of the Remaining Shares shall transfer to Franklin. C-Motech shall complete and sign the Stock Assignment Separate from Certificate in Exhibit B of this Agreement (or a modification thereof if Franklin pays the Remaining Payment in installments) and provide Franklin with a certificate or certificates evidencing all of the stock being repurchased along with all other necessary documentation needed to complete the stock transfer. |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | FRANKLIN WIRELESS CORP.                                                                                                                                                                                                                  |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                     |
|   | By: /s/ Richard Walker                                    |
|   | Print Name:  Richard Walker                                                                                                                                                                                                         |
|   | Title:  Vice President, Finance                                                                                                                                                                                                     |

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|   | C-MOTECH CO. LTD.                                                                                                                                                                                                                                                                                                |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                             |
|   | By: /s/ T.S. Kim                                                 |
|   | Print Name: T.S. Kim                                                                                                                                                                                                                                                                                             |
|   | Title:  President                                                                                                                                                                                                                                                                                           |

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|   | ________________________________________  |
|--------|------------------------------------------------|
|   | C-Motech Co., Ltd.                        |

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|   | ________________________________________  |
|--------|------------------------------------------------|
|   | C-Motech Co., Ltd.                        |

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