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| (A) | By      an investment agreement dated December 11, 2007 (the “Agreement”) made      between the Chargor and the Chargee, the Chargor agreed to issue 4%      senior, guaranteed convertible promissory note (the “Note”) in the      original aggregate principal amount of  US$25,000,000. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B) | As      security for the obligations of the Chargee under the Note, the Chargor      has agreed to charge, inter alia, its interest in all of the shares      beneficially owned by the Chargor in Sinosmart Group Inc., a company      incorporated under the laws of the British Virgin Islands (the      “Company”). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C) | The      Company is authorised to issue 50,000 shares having a par value of US$1.00      each of which 14,287      shares have been issued, credited as fully paid to, beneficially      owned by, and registered in the name of the  Chargor. |
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| 1. | INTERPRETATION |
|----|----------------|

| 1.1. | In      this Charge, unless the context otherwise requires, the following words      and expressions shall have the following  meanings: |
|------|------------------------------------------------------------------------------------------------------------------------------------------|

| “Business      Day”     | has      the same meaning as in the Agreement;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| “Charge”                | means      this share charge;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| “Charged      Property” | means      all of the issued shares of the Company as described in Recital (C) and all      other shares in the Company from time to time legally or beneficially      owned by the Chargor during the Security Period (together the “Charged      Shares”) and all and any other property that may at any time be received      or receivable by or otherwise distributed to the Chargor in substitution      for, or in exchange for, any of the foregoing, including, without      limitation, any shares or other securities resulting from the division,      consolidation, change, conversion or reclassification of any of the      Charged Shares, or the reorganization, merger or consolidation of the      Company with any other body corporate, or the occurrence of any event      which results in the substitution or exchange of the Charged      Shares;  |

----

| “Charged      Shares”           | has      the meaning assigned thereto in the definition of Charged      Property;                                                                                                    |
|---------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| “Event      of Default”         | has      the meaning set out in the Note;                                                                                                                                            |
| “Parties”                       | means      the parties to this Charge collectively and “Party” means any one of      them;                                                                               |
| “Secured      Obligations”      | means      all of the present and future payments and other obligations of the      Chargor to the Chargee under the Security Documents;                                             |
| “Security      Documents”  | means      the Agreement and the Note;                                                                                                                                                    |
| “Security      Interest”        | means      any charge, mortgage, pledge, lien, security interest or other      encumbrance;                                                                                          |
| “Security      Period”          | means      the period commencing on January 24, 2008 and terminating upon discharge      of the security created by this Charge by payment in full of the Secured      Obligations.  |

| 1.2. | In      this Charge unless the context otherwise  requires: |
|------|-------------------------------------------------------------|

|               1.2.1. | references      to statutory provisions shall be construed as references to those      provisions as amended or re-enacted or as their application is modified by      other provisions from time to time and shall include references to any      provisions of which they are re-enactments (whether with or without      modification); |
|--------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                      1.2.2. | references      to clauses and schedules are references to clauses hereof and schedules      hereto; references to sub-clauses or paragraphs are, unless otherwise      stated, references to sub-clauses of the clauses hereof or paragraphs of      the schedule in which the referenceappears; |
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|                1.2.3. | references      to the singular shall include the plural and vice versa and references to      the masculine shall include the feminine and/or neuter and vice versa;      and |
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|                 1.2.4. | references      to persons shall include companies, partnerships, associations and bodies      of persons, whether incorporated or  unincorporated; |
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|                 1.2.5. | references      to assets include property, rights and assets of every description;      and |
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|                 1.2.6. | references      to any document are to be construed as references to such document as      amended or supplemented from time totime. |
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| 2. | CHARGOR'S      REPRESENTATIONS AND WARRANTIES |
|----|-----------------------------------------------|

| 2.1. | the      shares of the Company are described in recital (C) hereof and such shares      are beneficially owned and registered as described in the said      recital; |
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| 2.2. | the      Chargor is a company duly organised, validly existing and in good standing      under the laws of Delaware; |
|------|----------------------------------------------------------------------------------------------------------------------|

| 2.3. | the      Company is under no obligation, nor is it liable to become under any      obligation, to issue any further shares nor, without limiting the      generality of the foregoing, has the Company created any option to acquire      shares in the Company or any securities exchangeable for or convertible      into shares of the Company; |
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| 2.4. | entry      into this Charge by the Chargor and enforcement hereof by the Chargee will      not contravene the terms of any agreement to which the Chargor is bound or      to which the Charged Shares are subject or the memorandum of association      or articles of the Company; |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.5. | the      Chargor is the legal and beneficial owner of all of the Charged Property      free from any Security Interest (other than those created by this Charge)      and any options or rights ofpre-emption; |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.6. | the      Chargor has full power and authority (i) to be the legal and beneficial      owner of the Charged Property, (ii) to execute and deliver this Charge and      (iii) to comply with the provisions of, and perform all its obligations      under, this Charge; |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.7. | this      Charge constitutes the Chargor's legal, valid and binding obligations      enforceable against the Chargor in accordance with its terms except as      such enforcement may be limited by any relevant bankruptcy, insolvency,      administration or similar laws affecting creditors' rights      generally; |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.8. | the      entry into and performance by the Chargor of this Charge does not violate      (i) any law or regulation of any governmental or official authority, or      (ii) any agreement, contract or other undertaking to which the Chargor is      a party or which is binding upon the Chargor or any of its      assets; |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.9. | all      consents, licences, approvals and authorisations required in connection      with the entry into, performance, validity and enforceability of this      Charge have been obtained and are in full force and effect;      and |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.10. | the      Chargor has taken all corporate and other action required to approve its      execution, delivery and performance of this  Charge. |
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| 3. | CHARGOR’S      COVENANTS |
|----|--------------------------------|

| 3.1. | to      pay all amounts, interests, expenses, claims, liabilities, losses, costs,      duties, fees, charges or other moneys as are stated in the Security      Documents and this Charge to be payable by the Chargor or to be      recoverable from the Chargor by the Chargee (or in respect of which the      Chargor agrees in the Security Documents and this Charge to indemnify the      Chargee) at the times and in the manner specified in the Security      Documents and this Charge provided that the liability of the Chargor under      this clause shall be limited to the amount realised by a disposal of the      Charged Property by or on behalf of or with the consent of the      Chargee; |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3.2. | to      pay interest on any such amounts, interests, expenses, claims,      liabilities, losses, costs, duties, fees, charges or other moneys referred      to in Clause 3.1      from the date on which the relevant amount, interest, expense, liability,      loss, cost, duty, fee, charge or other money is paid or discharged by the      Chargee until the date of reimbursement thereof to the Chargee (both      before and after any relevant judgment) at the rate described in the Note      and payable on demand; |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3. | that      the Chargor will on demand of the Chargee and at the expense of the      Chargor, execute and deliver to the Chargee or to such person or persons      as the Chargee may nominate such additional charge or charges of the      Charged Property (or any part thereof) for the purpose of further securing      the payment and discharge of all Secured Obligations, each such additional      charge to be in such form as the Chargee may reasonably      require; |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4. | that      the Chargor will not without the prior written consent of the      Chargee: |
|------|---------------------------------------------------------------------------------------|

|               3.4.1. | permit      any person other than the Chargor, the Chargee or any transferee nominated      by the Chargee on enforcement of this Charge to be the registered holder      of any of the Charged Shares; |
|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|          3.4.2. | permit      any variation of the rights attaching to the Charged    Shares; |
|--------------------------------------------------------------|-----------------------------------------------------------------------------|

|               3.4.3. | take      or permit any action which might result in an increase or reduction in the      number of shares that the Company is authorised to issue or the issued      shares of the Company; |
|---------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|          3.4.4. | permit      the Company to be continued to another jurisdiction outside of the British      Virgin Islands; |
|--------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|

|               3.4.5. | permit      any scheme of arrangement, merger, amalgamation or other reorganisation      applicable to the Company; or |
|--------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|

|               3.4.6. | save      in accordance with Clause      8.2, permit any amendment to the memorandum of association or      articles of association of theCompany. |
|--------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | SECURITY |
|----|----------|

| 4.1. | In      consideration of the Chargee agreeing to acquire the Note and as      continuing security for the Secured Obligations subject to Section 5      hereof, the Chargor as legal and beneficial owner hereby assigns and      agrees to assign to the Chargee all benefits present and future, actual      and contingent accruing in respect of the Charged Property and all the      Chargor’s right, title and interest to and in the Charged Property      including (without limitation) all voting and other consensual powers      pertaining to the Charged Shares and hereby charges and agrees to charge      in favour of  the Chargee all of its interest in the Charged      Property by way of a first fixedcharge. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.2. | The      Chargor hereby agrees to deliver, or cause to be delivered, to the      Chargee: |
|------|-------------------------------------------------------------------------------------------|

|               4.2.1. | duly      executed undated share transfer in respect of the Charged Shares in favour      of the Chargee or its nominees in the form set out in Schedule    A; |
|--------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                4.2.2. | all      share certificates representing the Charged  Shares; |
|--------------------------------------------------------------------|---------------------------------------------------------------|

|           4.2.3. | subject      to Section 5 hereof, upon an Event of Default, an executed irrevocable      proxy made in respect of the Charged Shares in favour of the Chargee in      respect of all general meetings of the Company in the form set out in      Schedule B;      and |
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|               4.2.4. | an      undertaking from the Company to register transfers of the Charged Shares      to the Chargee or its nominee in the form set out in Schedule    C. |
|--------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3. | If      consent is given in accordance with Clause 3.4.3, the      Chargor will deliver, or cause to be delivered, to the Chargee immediately      upon  the issue of any further Charged Shares, the items listed      in Clauses 4.2.1, 4.2.2,      4.2.3, and 4.2.4 in respect of all such further Charged      Shares. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4. | The      Chargor hereby covenants that during the Security Period it will remain      the legal and the beneficial owner of the Charged Property (subject only      to the Security Interests hereby created) and that it will      not: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               4.4.1. | create      or suffer the creation of any Security Interests (other than those created      by this Charge) on or in respect of the whole of any part of the Charged      Property or any of its interest  therein;  or |
|--------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               4.4.2. | sell,      assign, transfer or otherwise dispose of any of its interest in the      Charged Property (other than with respect to the dividend or distribution      payments described in Clause      5.1.2), |
|---------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5. | The      Chargor shall remain liable to perform all the obligations assumed by it      in relation to the Charged Property and the Chargee shall be under no      obligation of any kind whatsoever in respect thereof or be under any      liability whatsoever in the event of any failure by the Chargor to perform      its obligations in respect thereof. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.6. | Upon      the Chargee being satisfied that upon the earlier of (a) the Secured      Obligations have been unconditionally and irrevocably paid and discharged      in full or (b) the conversion of all of the Note into equity of      Chargor (either of which, for purposes of this Share Charge shall be      deemed to be unconditional and irrevocable payment and discharge in full      of the Secured Obligations), and following a written request therefor from      the Chargor, the Chargee will, subject to being indemnified to its      reasonable satisfaction for the costs and expenses incurred by the Chargee      in connection therewith, release the security constituted by this      Charge. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 5. | DEALINGS      WITH CHARGED PROPERTY |
|----|-------------------------------------|

| 5.1. | Unless      and until an Event of Default hasoccurred: |
|------|--------------------------------------------------------|

|                5.1.1. | the      Chargor shall be entitled to exercise all voting and/or consensual powers      pertaining to the Charged Property or any part thereof for all purposes      not inconsistent with the terms of this Charge and/or the      Note; |
|---------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|           5.1.2. | the      Chargor shall be entitled to receive and retain any distributions,      interest or other moneys or assets accruing on or in respect of the      Charged Property or any part thereof;and |
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|                5.1.3. | the      Chargor shall be entitled to receive all notices pertaining to the Charged      Shares. |
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| 5.2. | The      Chargor shall pay all calls, installments or other payments, and shall      discharge all other obligations, which may become due in respect of any of      the Charged Property and, in an Event of Default, the Chargee may if it      thinks fit make such payments or discharge such obligations on behalf of      the Chargor.  Any sums so paid by the Chargee in respect thereof      shall be repayable on demand and pending such repayment shall constitute      part of the Secured Obligations. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3. | The      Chargee shall not have any duty to ensure that any distributions, interest      or other moneys and assets receivable in respect of the Charged Property      are duly and punctually paid, received or collected as and when the same      become due and payable or to ensure that the correct amounts (if any) are      paid or received on or in respect of the Charged Property or to ensure the      taking up of any (or any offer of any), shares, rights, moneys or other      property paid, distributed, accruing or offered at any time by way of      redemption bonus, rights, preference, or otherwise on or in respect of,      any of the Charged Property. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4. | The      Chargor hereby authorises the Chargee to arrange at any time and from time      to time after the occurrence of an Event of Default for the Charged      Property or any part thereof to be registered in the name of the Chargee      (or its nominee) thereupon to be held as so registered subject to the      terms of this Charge. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | PRESERVATION      OF SECURITY |
|----|-------------------------------|

| 6.1. | It      is hereby agreed and declared that: |
|------|---------------------------------------------|

|                6.1.1. | the      security created by this Charge shall be held by the Chargee as a      continuing security for the payment and discharge of the Secured      Obligations and the security so created shall not be satisfied by any      intermediate payment or satisfaction of any part of the Secured      Obligations; |
|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               6.1.2. | the      security so created shall be in addition to and shall not in any way be      prejudiced or affected by any of the other Security    Documents; |
|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|               6.1.3. | the      Chargee shall not be bound to enforce any other security before enforcing      the security created by thisCharge; |
|--------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|

----

|               6.1.4. | no      delay or omission on the part of the Chargee in exercising any right,      power or remedy under this Charge shall impair such right, power or remedy      or be construed as a waiver thereof nor shall any single or partial      exercise of any such right, power or remedy preclude any further exercise      thereof or the exercise of any other right, power or      remedy.  The rights, powers and remedies herein provided are      cumulative and not exclusive of any rights, powers and remedies provided      by law and may be exercised from time to time and as often as the Chargee      may deem expedient; and |
|---------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               6.1.5. | any      waiver by the Chargee of any terms of this Charge shall only be effective      if given in writing and then only for the purpose and upon the terms for      which it is given. |
|---------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2. | Any      settlement or discharge under this Charge between the Chargee and the      Chargor shall be conditional upon no security or payment to the Chargee by      the Company or the Chargor or any other person being avoided or set-aside      or ordered to be refunded or reduced by virtue of any provision or      enactment relating to bankruptcy, insolvency, administration or      liquidation for the time being in force and, if such condition is not      satisfied, the Chargee shall be entitled to recover from the Chargor on      demand the value of such security or the amount of any such payment as if      such settlement or discharge had notoccurred. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3. | The      rights of the Chargee under this Charge and the Security Interest hereby      constituted shall not be affected by any act, omission, matter or thing      which, but for this provision, might operate to impair, affect or      discharge such rights and security, in whole or in part, including without      limitation, and whether or not known to or discoverable by the Company,      the Chargor, the Chargee or any otherperson: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                6.3.1. | any      time or waiver granted to or composition with the Company or any other      person; |
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|           6.3.2. | the      taking, variation, compromise, renewal or release of or refusal or neglect      to perfect or enforce any rights, remedies or securities against the      Company or any other person; |
|--------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                6.3.3. | any      legal limitation, disability, incapacity or other circumstances relating      to the Company or any other person; |
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|           6.3.4. | any      amendment or supplement to the Note, the other Security Documents or any      other document or security; |
|--------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|

|                6.3.5. | the      dissolution, liquidation, merger, consolidation, reconstruction or      reorganisation of the Company or any other person;  or |
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|                6.3.6. | the      unenforceability, invalidity or frustration of any obligations of the      Company or any other person under the Note, the other Security Documents      or any other document or security. |
|--------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6.4. | Until      the Secured Obligations have been unconditionally and irrevocably      satisfied and discharged in full to the satisfaction of the Chargee, the      Chargor shall not by virtue of any payment made hereunder on account of      the Secured Obligations or by virtue of any enforcement by the Chargee of      its rights under, or the Security Interest constituted by, this Charge or      by virtue of any relationship between or transaction involving, the      Chargor and the Company (whether such relationship or transaction shall      constitute the Chargor a creditor of the Company, a guarantor of the      obligations of the Company or a party subrogated to the rights of others      against the Company or otherwise howsoever and whether or not such      relationship or transaction shall be related to, or in connection with,      the subject matter of this Charge): |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                6.4.1. | exercise      any rights of subrogation in relation to any rights, security or moneys      held or received or receivable by the Chargee or any    person; |
|--------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                6.4.2. | exercise      any right of contribution from any co-surety liable in respect of such      moneys and liabilities under any other guarantee, security or      agreement; |
|--------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                6.4.3. | exercise      any right of set-off or counterclaim against the Company or any such      co-surety; |
|--------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|

|                6.4.4. | receive,      claim or have the benefit of any payment, distribution, security or      indemnity from the Company or any such co-surety;  or |
|--------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

|                6.4.5. | unless      so directed by the Chargee (when the Chargor will prove in accordance with      such directions), claim as a creditor of the Company or any such co-surety      in competition with the Chargee. |
|--------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.5. | Until      the Secured Obligations have been unconditionally and irrevocably      satisfied and discharged in full to the satisfaction of the Chargee, the      Chargee may at any time keep in a separate account or accounts (without      liability to pay interest thereon) in the name of the Chargee for as long      as it may think fit, any moneys received, recovered or realised under this      Charge or under any other guarantee, security or agreement relating in      whole or in part to the Secured Obligations without being under any      intermediate obligation to apply the same or any part thereof in or      towards the discharge of suchamount. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | ENFORCEMENT      OF SECURITY |
|----|------------------------------|

| 7.1. | Upon      the occurrence of an Event of Default the Security Interest hereby      constituted shall become immediately enforceable and the Chargee may, at      any time, without further notice to or consultation with, or consent      of  the Chargor: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                7.1.1. | solely      and exclusively exercise all voting and/or consensual powers pertaining to      the Charged Property or any part thereof and may exercise such powers in      such manner as the Chargee may think fit;and/or |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|             7.1.2. | receive      and retain all dividends, interest, distributions or other moneys or      assets accruing on or in respect of the Charged Property or any part      thereof, such dividends, interest, distributions or other moneys or assets      to be held by the Chargee, until applied in the manner described in Clause 6.4, as      additional security charged under and subject to the terms of this Charge      and any such dividends, interest, distributions or other moneys or assets      received by the Chargor after such time shall be held in trust by the      Chargor for the Chargee and paid or transferred to the Chargee on demand;      and/or |
|--------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|             7.1.3. | appoint      by instrument any person to be a receiver of the Charged Property (the      “Receiver”) and remove any Receiver so appointed and appoint another or      others in his stead; |
|--------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|              7.1.4. | sell,      transfer, grant options over or otherwise dispose of the Charged Property      or any part thereof at such place and in such manner and at such price or      prices as the Chargee may deem fit, and thereupon the Chargee shall have      the right to deliver, assign and transfer in accordance therewith the      Charged Property so sold, transferred, granted options over or otherwise      disposed of; and/or |
|--------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|              7.1.5. | complete      any undated blank share transfer forms of all or any part of the Charged      Property by dating the same and/or inserting its name or the name of its      nominee as transferee. |
|--------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2. | The      Chargee shall not be obliged to make any enquiry as to the nature or      sufficiency of any payment received by it under this Charge or to make any      claim or to take any action to collect any moneys assigned by this Charge      or to enforce any rights or benefits assigned to the Chargee by this      Charge or to which the Chargee may at any time be entitled      hereunder. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3. | Upon      any sale of the Charged Property or any part thereof by the Chargee the      purchaser shall not be bound to see or enquire whether the Chargee's power      of sale has become exercisable in the manner provided in this Charge and      the sale shall be deemed to be within the power of the Chargee, and the      receipt of the Chargee for the purchase money shall effectively discharge      the purchaser who shall not be concerned with the manner of application of      the proceeds of sale or be in any way answerable  therefor. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.4. | All      moneys received by the Chargee pursuant to this Charge shall be held by it      upon trust in the first place to pay or make good all such expenses,      liabilities, losses, costs, duties, fees, charges or other moneys      whatsoever as may have been paid or incurred by the Chargee in exercising      any of the powers specified or otherwise referred to in this Charge and      the balance shall be applied in the following  manner: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               7.4.1. | FIRSTLY:  in      or towards satisfaction of any amounts in respect of the balance of the      Secured Obligations as are then accrued due and payable or are then due      and payable by virtue of payment demanded, in such order or application as      the Chargee shall think fit; |
|--------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               7.4.2. | SECONDLY:  in      retention of an amount equal to any part or parts of the Secured      Obligations as are or are not then due and payable but which (in the sole      and absolute opinion of the Chargee) will or may become due and payable in      the future and, upon the same becoming due and payable, in or towards      satisfaction thereof in accordance with the foregoing provisions of this      clause; and |
|--------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               7.4.3. | THIRDLY:  the      surplus (if any) shall be repaid promptly to the Chargor or whosoever else      may be entitled thereto. |
|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.5. | Neither      the Chargee nor its agents, managers, officers, employees, delegates or      advisers shall be liable for any claim, demand, liability, loss, damage,      cost or expense incurred or arising in connection with the exercise or      purported exercise of any rights, powers and discretions hereunder in the      absence of negligence; however, in no event shall the Chargee be liable      for consequential damages. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.6. | The      Chargee shall not by reason of the taking of possession of the whole or      any part of the Charged Property or any part thereof be liable to account      as mortgagee-in-possession or for anything except actual receipts or be      liable for any loss upon realisation or for any default or omission for      which a mortgagee-in-possession might beliable. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.7. | In      addition to all other rights or powers vested in the Chargee hereunder or      by statute or otherwise, the Receiver may take such action in relation to      the enforcement of this Charge to: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               7.7.1. | take      possession of, redeem, collect and get in all or any part of the Charged      Property; |
|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------|

|               7.7.2. | raise      or borrow money and grant security therefor over all or any part of the      Charged Property; |
|--------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|

|               7.7.3. | appoint      an attorney or accountant or other professional qualified person to assist      him in the performance of hisfunctions; |
|--------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|

|               7.7.4. | do      all acts and to execute in the name and on behalf of the Chargor any      document or deed in respect of all or any part of the Charged      Property; |
|--------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               7.7.5. | in      the name of the Chargor or in his own name, bring, prosecute, enforce,      defend and abandon applications, claims, disputes, actions, suits and      proceedings in connection with all or any part of the Charged Property and      to submit to arbitration, negotiate, compromise and settle any such      applications, claims, disputes, actions, suits or    proceedings; |
|--------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               7.7.6. | sell,      call in, collect and convert to money the Charged Property or any of it at      such place and in such manner and at such price or prices as he shall      think fit; |
|--------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               7.7.7. | exercise      any powers, discretion, voting or other rights or entitlements in relation      to the Charged Property and generally to carry out any other action which      he may in his sole discretion deem appropriate in relation to the      enforcement of this Charge; |
|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               7.7.8. | make      any arrangement or compromise which he shall think expedient;      and |
|--------------------------------------------------------------|----------------------------------------------------------------------------------|

|               7.7.9. | do      all such other acts and things as may be considered to be incidental or      conducive to any of the matters or powers aforesaid and which the Receiver      lawfully may or can do as agent for theChargor. |
|--------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.8. | Every      Receiver shall so far as it concerns responsibility for his acts be deemed      to be an agent of the Chargor, which shall be solely responsible for his      acts and defaults and for the payment of his remuneration and no Receiver      shall at any time act as agent for theChargee. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.9. | Every      Receiver shall be entitled to remuneration for his services at a rate to      be fixed by agreement between him and the Chargee (or, failing such      agreement, to be fixed by the Chargee) appropriate to the work and      responsibilities involved, upon the basis of current  industry      practice. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.10. | Any      remedies referred to in Section 66 of the BVI Business Companies Act      (British Virgin Islands), including the right to sell the shares and the      right to appoint a receiver to vote the shares, receive distributions, and      exercise any other rights in respect of the shares, shall not be      exercisable upon the occurrence of an Event of Default    until: |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                7.10.1. | a      default has occurred and has continued for a period of not less than five      Business Days; and |
|----------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|

|                7.10.2. | the      default has not been rectified within five Business Days from service of a      notice specifying the default and requiring rectification      thereof. |
|----------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.11. | The      Conveyancing and Law of Property Act shall not apply to this      Charge. |
|-------|------------------------------------------------------------------------------------|

| 8. | FURTHER      ASSURANCES |
|----|-------------------------|

| 8.1. | The      Chargor shall execute and do all such assurances, acts and things as the      Chargee in its absolute discretion may require  for: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------|

|               8.1.1. | perfecting,      protecting or ensuring the priority of the Security Interest hereby      created (or intended to becreated); |
|--------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|

|               8.1.2. | preserving      or protecting any of the rights of the Chargee under this      Charge; |
|--------------------------------------------------------------|----------------------------------------------------------------------------------------|

|               8.1.3. | ensuring      that the security constituted by this Charge and the covenants and      obligations of the Chargor under this Charge shall inure to the benefit of      any assignee of the Chargee; |
|--------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               8.1.4. | facilitating      the appropriation or realisation of the Charged Property or any part      thereof; or |
|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|

|               8.1.5. | exercising      any power, authority or discretion vested in the Chargee under this      Charge, |
|--------------------------------------------------------------|--------------------------------------------------------------------------------------------------|

| 8.2. | Without      limitation to the generality of Clause 8.1, the Chargor      covenants with the Chargee that it will on demand of the Chargee procure      any amendment to the memorandum of association or articles of association      of the Company necessary or, in the opinion  of the Chargee      desirable, in order to give effect to the terms of the Charge or any      documents or transactions provided forherein. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8.3. | The      Chargor shall provide such assurances and do all acts and things the      Receiver may in his absolute discretion require for the purpose of      exercising the powers (or giving effect to the exercise of the powers)      conferred on the Receiver hereunder and the Chargor hereby irrevocably      appoints the Receiver to be the lawful attorney in fact of the Chargor to      do any act or thing and to exercise all the powers of the Chargor for the      purpose of exercising the powers (or giving effect to the exercise of the      powers) conferred on the Receiverhereunder. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.4. | The      Chargor shall use its best efforts to procure the entry in the share      register of the Company pursuant to section 66(8) of the BVI Business      Companies Act, 2004 (British Virgin Islands) of the details of this      Charge, to have the Company submit its share register for registration by      the Registrar of Corporate Affairs pursuant to section 231 of the BVI      Business Companies Act, 2004 (British Virgin Islands) and to have the      Company not amend the same or inform the Registrar of Corporate Affairs      that it ceases to register any changes in the register, without the      consent of the Chargee. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | INDEMNITIES |
|----|-------------|

| 9.1. | The      Chargor will indemnify and save harmless the Chargee, the Receiver and      each agent or attorney appointed under or pursuant to this Charge from and      against any and all expenses, claims, liabilities, losses, taxes, costs,      duties, fees and charges properly and reasonably suffered, incurred or      made by the Chargee, the Receiver or such agent or    attorney: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               9.1.1. | in      the exercise or purported exercise of any rights, powers or discretions      vested in them pursuant to thisCharge; |
|--------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|

|               9.1.2. | in      the preservation or enforcement of the Chargee's rights under this Charge      or the priority thereof; or |
|--------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|

|               9.1.3. | on      the release of any part of the Charged Property from the Security Interest      created by this Charge, |
|--------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|

| 9.2. | If,      under any applicable law or regulation, and whether pursuant to a judgment      being made or registered against the Chargor or the bankruptcy or      liquidation of the Chargor or for any other reason any payment under or in      connection with this Charge is made or falls to be satisfied in a currency      (the “Payment Currency”) other than the currency in which such payment is      due under or in connection with this Charge (the “Contractual Currency”),      then to the extent that the amount of such payment actually received by      the Chargee when converted into the Contractual Currency at the rate of      exchange, falls short of the amount due under or in connection with this      Charge, the Chargor, as a separate and independent obligation, shall      indemnify and hold harmless the Chargee against the amount of such      shortfall.  For the purposes of this clause, “rate of exchange”      means the rate at which the Chargee is able on or about the date of such      payment to purchase the Contractual Currency with the Payment Currency and      shall take into account any premium and other costs of exchange with      respect thereto. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10. | POWER      OF ATTORNEY |
|-----|------------------------|

| 10.1. | The      Chargor, by way of security and in order more fully to secure the      performance of its obligations hereunder hereby irrevocably appoints the      Chargee and the persons deriving title under it jointly and also severally      to be its attorney: |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                10.1.1. | to      execute and complete in favour of the Chargee or its nominees or of any      purchaser any documents which the Chargee may from time to time require      for perfecting its title to or for vesting any of the assets and property      hereby charged or assigned in the Chargee or its nominees or in any      purchaser and to give effectual discharges for  payments; |
|----------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                10.1.2. | to      take and institute on non-payment (if the Chargee in its sole discretion      so decides) all steps and proceedings in the name of the Chargor or of the      Chargee for the recovery of such moneys, property and assets hereby      charged and to agree accounts; |
|----------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                10.1.3. | to      make allowances and give time or other indulgence to any surety or other      person liable; |
|----------------------------------------------------------------|------------------------------------------------------------------------------------------------------|

|                10.1.4. | otherwise      generally to act for it and in its name and on its behalf;    and |
|----------------------------------------------------------------|----------------------------------------------------------------------------------|

|                10.1.5. | to      sign, execute, seal and deliver and otherwise perfect and do any such      legal assignments and other assurances, charges, authorities and documents      over the moneys, property and assets hereby charged, and all such deeds,      instruments, acts and things (including, without limitation, those      referred to in Clause      8) that may be required for the full exercise of all or any of the      powers conferred or which may be deemed proper on or in connection with      any of the purposes aforesaid. |
|----------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2. | The      power hereby conferred shall be a general power of attorney and the      Chargor hereby ratifies and confirms and agrees to ratify and confirm any      instrument, act or thing which any such attorney may execute or      do.  In relation to the power referred to herein, the exercise      by the Chargee of such power shall be conclusive evidence of its right to      exercise the same. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | EXPENSES |
|-----|----------|

| 11.1. | The      Chargor shall pay to the Chargee on demand all costs, fees and expenses      (including, but not limited to, legal fees and expenses) and taxes thereon      incurred by the Chargee or for which the Chargee may become liable in      connection with the preserving or enforcing of, or attempting to preserve      or enforce, any of its rights under this Charge or the priority      hereof. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2. | The      Chargor shall pay promptly all stamp, documentary and other like duties      and taxes to which this Charge may be subject or give rise and shall      indemnify the Chargee on demand against any and all liabilities with      respect to or resulting from any delay or omission on the part of the      Chargor to pay any such duties ortaxes. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12. | NOTICES |
|-----|---------|

----

| 13. | ASSIGNMENTS |
|-----|-------------|

| 13.1. | This      Charge shall be binding upon and shall inure to the benefit of the Chargor      and the Chargee and each of their respective successors and (subject as      hereinafter provided) assigns and references in this Charge to any of them      shall be construed accordingly. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2. | The      Chargor may not assign or transfer all or any part of its rights and/or      obligations under this Charge. |
|-------|----------------------------------------------------------------------------------------------------------------------|

| 13.3. | The      Chargee may not assign or transfer all or any part of its rights or      obligations under this Charge to any assignee or transferee without the      consent of the Chargor, such consent not to be unreasonably withheld,      provided that no such consent shall be required if an Event of Default      affecting the Chargor has occurred and is continuing.  The      Chargee shall notify the Chargor promptly following any such assignment or      transfer. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14. | MISCELLANEOUS |
|-----|---------------|

| 14.1. | The      Chargee, at any time and from time to time, may delegate by power of      attorney or in any other manner to any person or persons all or any of the      powers, authorities and discretions which are for the time being      exercisable by the Chargee under this Charge in relation to the Charged      Property or any part thereof.  Any such delegation may be made      upon such terms and be subject to such regulations as the Chargee may      think fit.  The Chargee shall not be in any way liable or      responsible to the Chargor for any loss or damage arising from any act,      default, omission or misconduct on the part of any such delegate provided      the Chargee has acted reasonably in selecting such    delegate. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2. | If      any of the clauses, conditions, covenants or restrictions of this Charge      or any deed or document emanating from it shall be found to be void but      would be valid if some part thereof were deleted or modified, then such      clause, condition, covenant or restriction shall apply with such deletion      or modification as may be necessary to make it valid and      effective. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.3. | This      Charge (together with any documents referred to herein) constitutes the      whole agreement between the Parties relating to its subject matter and no      variations hereof shall be effective unless made in writing and signed by      each of the Parties. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.4. | The      headings in this Charge are inserted for convenience only and shall not      affect the construction of thisCharge. |
|-------|------------------------------------------------------------------------------------------------------------------------------|

| 14.5. | This      Charge may be executed in counterparts each of which when executed and      delivered shall constitute an original but all such counterparts together      shall constitute one and the sameinstrument. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15. | LAW      AND JURISDICTION |
|-----|---------------------------|

----

| The      Common Seal of          | )      |
|----------------------------------|--------|
| the      Chargor                 | )      |
| was      hereunto affixed in the | )      |
| presence      of:                | )      |
|                             |   |
|                             |   |
| The      Common Seal of          | )      |
| the      Chargee                 | )      |
| was      hereunto affixed        | )      |
| in      the presence of:         | )      |

----

| China-Biotics, Inc. |
|---------------------|
|                |

| Pope Investments II LLC, a Delaware limited      liability company |
|--------------------------------------------------------------------|
| (Name      in full and nationality ofTransferee)                   |

| 5100 Poplar Avenue, Suite 805, Memphis, Tennessee      38137 |
|--------------------------------------------------------------|
| (address)                                                    |

|                                                          |   |   |             |   |
|---------------------------------------------------------------|--------|--------|------------------|--------|
|                                                          |   |   |             |   |
| For and on behalf      of       |   |   | (Witness)        |   |
| China-Biotics,      Inc.                       |   |   | Notary    Public |   |
| Transferor                                                    |   |   |             |   |

|                                                          |   |   |             |   |
|---------------------------------------------------------------|--------|--------|------------------|--------|
|                                                          |   |   |             |   |
| For and on behalf      of       |   |   | (Witness)        |   |
| Pope Investments II      LLC                        |   |   | Notary    Public |   |
| Transferee                                                    |   |   |             |   |

----

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|     |   |   |   |   |
|----------|--------|--------|--------|--------|
|     |   |   |        |   |
|     |   |   |        |   |
| Director |   |   |        |   |

----