Document:

LOCKBOX
      AGREEMENT

    

    THIS
      LOCKBOX AGREEMENT,
      dated
      as of May __, 2008 (this “Agreement”), by and between SJ
      Electronics, Inc. (f/k/a Acheron, Inc.),
      a
      Nevada corporation (the “Company”),
      Tri-State Title & Escrow, LLC, in its capacity as collateral agent (the
“Collateral
      Agent”),
      and
Ming
      Liu
      (the
“Lockbox
      Agent”).

    

    WITNESSETH:

    

    WHEREAS,
      the
      Company and the several Investors (such capitalized term and all other
      capitalized terms used in this Agreement having the meanings provided in Section
      1) are parties to the Note Purchase Agreement, pursuant to which, among other
      things, the Investors have agreed to purchase the Notes from the Company;

    

    WHEREAS,
      contemporaneously with the execution and delivery of this Agreement, the Company
      and the Collateral Agent are executing and delivering the Security Agreement
      and
      the Collateral Agency Agreement with the Collateral Agent pursuant to which,
      among other things, the Company is granting a security interest in the
      Collateral, including, without limitation, all of the Company's right, title
      and
      interest in and to all Accounts Receivable to the Collateral Agent for the
      ratable benefit of the Holders;

    

    WHEREAS,
      in order
      to give effect to and perfect the security interest in certain of the collateral
      subject to the Security Agreement, this Agreement provides that all payments
      to
      the Company pursuant to the Security Agreement shall be paid into a Collateral
      Account and disbursed from the Collateral Account in accordance with the terms
      of this Agreement; and

     

    WHEREAS,
      it
      is a
      condition precedent to the several obligations of the Investors to purchase
      their respective Notes pursuant to the Note Purchase Agreement that the Company
      and the Collateral Agent shall have executed and delivered this Agreement for
      the ratable benefit of the Holders;

    

    NOW
      THEREFORE,
      in
      consideration of the premises and the mutual covenants contained herein and
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, the parties agree as follows:

    

    1.
       Definitions.

    

    (a) Reference
      is hereby made to the Notes for a statement of the terms thereof. All terms
      used
      in this Agreement which are defined in the Notes, Note Purchase Agreement or
      other Transaction Documents and which are not otherwise defined herein shall
      have the same meanings herein as set forth therein. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b) All
      the
      agreements or instruments herein defined shall mean such agreements or
      instruments as the same may from time to time be supplemented or amended or
      the
      terms thereof waived or modified to the extent permitted by, and in accordance
      with, the terms thereof and of this Agreement.

    

    (c) The
      following terms shall have the following meanings (such meanings to be equally
      applicable to both the singular and plural forms of the terms
      defined):

    

    ”Accounts
      Receivable”
      means all
      rights to payment for goods sold or leased or for services rendered, whether
      or
      not such rights have been earned by performance. Lite-On, Inc. is expressly
      excluded from account debtors on the Accounts Receivable.

    

    “Collateral
      Account”
means
      the account maintained at the Collateral Agent for the ratable benefit of the
      Holders which is identified in clause (b) of Section 2 and entitled “SJ
      Electronics Noteholder Collateral Account”, and any successor or replacement
      account.

    

    “Event
      of Default”
      means:

    

    (1) the
      failure by the Company to perform in any material respect any obligation of
      the
      Company under this Agreement as and when required by this
      Agreement;

    

    (2) any
      representation or warranty made by the Company pursuant to this Agreement shall
      have been untrue in any material respect when made or deemed to have been made;
      or

    

    (3) any
      Event
      of Default, as that term is defined in the Security Agreement; or

    

    (4) any
      Event
      of Default, as that term is defined in any of the Notes.

    

    “Holder”
means
      any Investor or any holder from time to time of any Note.

    

    “Majority
      Holders”
means
      at any time such of the holders of Notes, which based on the outstanding
      principal amount of the Notes, represents a majority of
      the
      aggregate outstanding principal amount of the Notes.

    

    “Note
      Purchase Agreement”
means
      the Note Purchase Agreement, dated as of May ___, 2008, by and between the
      Company and the respective Investor parties thereto pursuant to which the
      Company issued the Notes.

    

    “Notes”
means
      the Company’s 15% Senior Secured Convertible Notes due 2009 issued pursuant to
      the Note Purchase Agreement, including, without limitation.

    

    “Person”
means
      any natural person, corporation, partnership, limited liability company, trust,
      incorporated organization, unincorporated association or similar entity or
      any
      government, governmental agency or political subdivision.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    “Security
      Agreement”
means
      the Pledge and Security Agreement, dated as of May __, 2008, between the Company
      and the Collateral Agent.

    

    “Transaction
      Documents”
means
      the Notes, the Note Purchase Agreement, this Agreement, the Security Agreement,
      the Collateral Agency Agreement, the Guaranty and the other agreements,
      instruments and documents contemplated hereby and thereby.

    

    2. Payments.
      (a) The
      Company agrees, that, within thirty (30) Business days of the date of this
      Agreement the Company shall irrevocably instruct in writing (the “Instruction”)
      all the account debtors on the Accounts Receivable that payments in respect
      thereof shall be made by wire transfer of funds to the Collateral
      Account.

    

    If
      the
      Company fails to give the Instruction in accordance with Section 6(j) of the
      Security Agreement, the Collateral Agent may, in its own name or in the name
      of
      the Company, give the Instruction directly to the account debtors on the
      Accounts that constitute part of the Collateral and to all of the parties to
      Contracts that constitute part of the Collateral.

    

    (b) If
      any
      Person who has not already received the Instruction is to become an account
      debtor on the Accounts Receivable, the Company shall instruct such Person that
      payments in respect thereof shall be made in the manner set forth in Section
      2(a). If the Company fails to give the instructions in accordance with this
      Section 2(b), the Collateral Agent may, in its own name or in the name of the
      Company, give such instructions directly to such Person.

    

    3.
       No
      Contrary Instructions. Without
      the prior written consent of the Collateral Agent and the Majority Holders,
      the
      Company shall not revoke, rescind or modify the Instruction or take any other
      action which is contrary to or inconsistent with this Agreement or the Security
      Agreement. If for any reason the Company receives any payment from an account
      debtor or party to a Contract on or after the Notice Date, the Company shall
      immediately deposit such payment, and any interest or proceeds thereon, in
      the
      Collateral Account. Prior to such deposit, the Company shall hold all such
      funds
      in trust for the exclusive benefit of the Collateral Agent and the Holders
      pursuant to this Agreement.

    

    4. Collateral
      Account. 
      The
      Collateral Account shall be under the shared control of the Lockbox Agent and
      the Collateral Agent (the “Authorized
      Parties”).
      All
      cash deposited in the Collateral Account pursuant to this Agreement, and all
      interest earned thereon, shall be held in the Collateral Account and shall
      at
      all times be segregated from the funds and property of any other Person. The
      assets in the Collateral Account shall be held in cash only and shall not be
      invested in any securities. Funds may be withdrawn from the Collateral Account
      by the Company at its sole discretion, provided that
      no Event
      of Default has occurred and is continuing. After an Event of Default has
      occurred and is continuing, funds may be withdrawn from the Collateral Account
      only by the Authorized Parties acting jointly. 

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    5. Representations
      and Warranties.
      The
      Company hereby represents and warrants to and for the benefit of the Lockbox
      Agent, the Collateral Agent and the Holders that: 

    

    (a) Power
      and Authority.
      The
      Company has full power, authority and legal right to enter into this
      Agreement.

    

    (b) Binding
      Obligation. 
      This
      Agreement has been duly authorized by the Company and has been duly executed
      and
      delivered by the Company and constitutes a legal, valid and binding obligation
      of the Company enforceable against the Company in accordance with its
      terms.

    

    (c) Non-Contravention. 
      The
      execution, delivery and performance of this Agreement will not violate any
      provision of any applicable law or regulation or of any order, judgment, writ,
      award or decree of any court, arbitrator or governmental authority, domestic
      or
      foreign, or of any securities issued by the Company or any Subsidiary, or of
      any
      mortgage, indenture, lease, contract or other agreement, instrument or
      undertaking to which the Company or any Subsidiary is a party or which purports
      to be binding upon the Company or any Subsidiary or upon any of their respective
      assets and will not result in the creation or imposition of any Lien on any
      of
      the assets of the Company or any Subsidiary except as expressly permitted by
      this Agreement and the other Transaction Documents.

    

    (d) Consents. 
      No
      consent (other than consents which have been obtained) of any party, and no
      filing, approval, registration, recording or other action is required in
      connection with the execution, delivery or performance of this Agreement by
      the
      Company.

    

    6. Indemnification.
      The
      Company agrees to pay, indemnify, and to save the Lockbox Agent, the Collateral
      Agent and each Holder harmless from, any and all liabilities, costs and expenses
      (including, without limitation, legal fees and expenses) (i) with respect to,
      or
      resulting from, any delay in paying any and all excise, sales or other taxes
      which may be payable or determined to be payable with respect to the Collateral
      Account, (ii) with respect to, or resulting from, any failure or delay by the
      Company in complying with any law or regulation applicable to the Collateral
      Account or (iii) in connection with this Agreement, any breach or alleged breach
      hereof, or any action taken by the Lockbox Agent, the Collateral Agent or any
      Holder in exercising its rights hereunder. 

    

    7. Security
      Agreement. The
      Collateral Account, and all funds due to the Company and deposited in the
      Collateral Account, are subject to the security interest of the Collateral
      Agent
      pursuant to the Security Agreement in accordance with the terms
      thereof.

    

    8. Paragraph
      Headings, Captions, Etc.
      The
      paragraph headings, the captions and the footers used in this Agreement are
      for
      convenience of reference only and are not to affect the construction hereof
      or
      be taken into consideration in the interpretation hereof.

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    9. Effective
      Date; Termination. 
      This
      Agreement shall become effective at the time of first issuance of any Note
      on
      the earliest Issuance Date when executed and delivered by the Company and the
      Collateral Agent. Upon the payment and performance in full by the Company of
      its
      obligations under the Transaction Documents, the Company's obligations under
      this Agreement shall terminate, any funds remaining in the Collateral Account
      shall be paid to the Company, and promptly thereafter the parties shall instruct
      the account debtors on all Accounts that theretofore constituted Collateral
      and
      all parties to Contracts that theretofore constituted Collateral to make all
      further payments due to the Company directly to the Company.

    

    10. Integration. This
      Agreement represents the entire agreement of the Company the Collateral Agent
      and the Lockbox Agent with respect to the subject matter hereof, and there
      are
      no promises, undertakings, representations or warranties by the parties relative
      to the subject matter hereof not expressly set forth or referred to
      herein.

    

    11. Governing
      Law. This
      Agreement and the rights and obligations of the Company under this Agreement
      shall be governed by, and construed and interpreted in accordance with, the
      law
      of the State of New York.

    

    12. Counterparts;
      Execution. This
      Agreement may be executed in any number of counterparts and all the counterparts
      taken together shall be deemed to constitute one and the same instrument. This
      Agreement, once executed by a party, may be delivered to the other party hereto
      by telephone line facsimile transmission of a copy of this Agreement bearing
      the
      signature of the party so delivering this Agreement.

     

    [Signature
      page follows]

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Agreement to be duly executed and delivered as of the
      date first above written.

    

    
      	
              SJ
                ELECTRONICS, INC.

            
	 
	
              By:

            	 
	 	
              Name:

            	 
	 	
              Title:
                

            	 

    

    

    
      	
              ACKNOWLEDGED
                AND AGREED:

            	 
	 	 
	
              TRISTATE
                TITLE & ESCROW, LLC

            	 
	 	 
	
              By:

            	 	 
	 	
              Name:

            	 
	 	
              Title:

            	 
	 	 
	
              LOCKBOX
                AGENT

            	 
	 	 
	 	 
	
              Ming
                Liu

            	 

    

     

    
      
         

      

      
        6COLLATERAL
      AGENCY AGREEMENT 

     

    THIS
      COLLATERAL AGENCY AGREEMENT
      (this
      "Agreement")
      is
      made as of May __, 2008 by and among TRISTATE TITLE & ESCROW, LLC, a
      Delaware limited liability company (the “Collateral
      Agent”),
      and
      the parties set forth on Schedule
      I
      annexed
      hereto, as such Schedule may be amended from time to time in accordance with
      the
      terms of this Agreement (each a “Noteholder”
and
      collectively the “Noteholders”).

     

    WITNESSETH:

     

    WHEREAS,
      SJ
      Electronics, Inc. (f/k/a Acheron, Inc.), a Nevada corporation (the “Company”)
      has
      entered into a Note Purchase Agreement dated as of the date hereof (as amended,
      modified, restated or otherwise supplemented from time to time, the
“Note
      Purchase Agreement”)
      pursuant to which the Company will authorize and issue its 15% Senior Secured
      Convertible Notes Due 2009 (the “Notes”)
      to the
      investors identified in the Note Purchase Agreement (the “Investors”);
      and

     

    WHEREAS,
      as
      collateral security for the payment and performance of the Company’s obligations
      under the Notes the Company has granted to the Collateral Agent, for the benefit
      of the Noteholders, a security interest in the Collateral (as defined below),
      pursuant to the terms and conditions of that certain Pledge and Security
      Agreement of even date herewith by and between the Company and the Collateral
      Agent as the same may be amended from time to time (the "Pledge
      and Security Agreement");
      and

     

    WHEREAS,
      the
      Collateral Agent desires to serve as collateral agent for the Noteholders with
      respect to the Pledged Collateral on the terms and conditions hereinafter set
      forth; and

     

    WHEREAS,
      the
      Noteholders desire the Collateral Agent to serve in such capacity on the terms
      and conditions hereinafter set forth.

     

    NOW,
      THEREFORE,
      the
      parties hereto agree as follows:

     

    SECTION
      1.  DEFINITIONS

     

    For
      purposes of this Agreement, the following terms shall have the following
      meanings:

     

    1.1  "Business
      Day"
      shall
      have the meaning ascribed thereto in Section
      5.1
      hereof.

     

    1.2  "Pledged
      Collateral"
      shall
      have the meaning ascribed thereto in the Pledge and Security
      Agreement.

     

    1.3  "Collections"
      means
      any payments or amounts realized, recovered or otherwise received by the
      Collateral Agent in respect of the recovery of or realization on any Pledged
      Collateral.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    1.4  "Person"
      means
      an individual, a partnership, a corporation (including a business trust), a
      joint stock company, a trust, an unincorporated association, a joint venture,
      or
      other entity; or any government, or any agency, instrumentality or political
      subdivision thereof.

     

    1.5  “Requisite
      Noteholders”
means,
      at any time, the Noteholders holding not less than 51% of the principal balance
      of the Notes outstanding at that time.

     

    1.6  “Security
      Documents”
means
      this Agreement and the Pledge and Security Agreement, as the same may be amended
      from time to time.

     

    1.7  “Pledge
      and Security
      Agreement”
has
      the
      meaning ascribed to such term in the recitals of this Agreement.

     

    1.8  “Lockbox
      Agent”
means
      the Person from time to time serving as Lockbox Agent under the Lockbox
      Agreement.

     

    1.9  “Lockbox
      Agreement”
means
      that certain Lockbox Agreement dated as of the date hereof, by and between
      the
      Company and the Lockbox Agent.

     

    SECTION
      2.  AGENCY

     

    2.1 Appointment
      of the Collateral Agent.

     

    (a)  Each
      Noteholder hereby irrevocably designates and appoints the Collateral Agent
      as
      such Noteholder’s agent and attorney-in-fact to take such actions on behalf of
      the Noteholders under the Security Documents, and to exercise such powers and
      to
      perform such duties (or to refrain therefrom) with respect to the management,
      supervision, servicing, administration, collection and liquidation of the
      Pledged Collateral and the Collections as may be reasonably contemplated by
      the
      Security Documents, as well as such other powers as are reasonably incidental
      thereto, including, without limitation, the power to execute and deliver the
      Security Documents as agent for the Noteholders. The Collateral Agent is hereby
      authorized and empowered to amend, modify, or waive any provisions of the
      Security Documents on behalf of the applicable Noteholders, subject to the
      consent of the Requisite Noteholders. The Collateral Agent shall hold all
      Pledged Collateral as the agent of the Noteholders, subject to the terms of
      this
      Agreement and of the Lockbox Agreement. The provisions of this Section
      2.1
      are
      solely for the benefit of the Collateral Agent and the Noteholders, and neither
      the Company nor any other Person shall have any rights, whether as a third
      party
      beneficiary or otherwise, under this Agreement. In performing its duties under
      this Agreement, the Collateral Agent shall act solely as the agent of the
      Noteholders and shall not be deemed to have assumed any obligation toward or
      relationship of agency or trust with or for the Company or any other Person
      (other than the Noteholders). The Collateral Agent may perform any of its duties
      under the Security Documents by or through agents or employees, together with
      such other powers as are incidental thereto, with full power of substitution,
      and with the power to select one or more sub-agents or designees to exercise
      the
      powers and perform the obligations of the Collateral Agent hereunder. The
      foregoing power of attorney is coupled with an interest and is irrevocable
      while
      this Agreement remains in effect.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

       

    

    (b)  The
      Collateral Agent shall have no duties, responsibilities or liability except
      as
      expressly set forth in the Security Documents. 

     

    (c)  The
      Noteholders hereby acknowledge and agree as follows: (i) the duties of the
      Collateral Agent are ministerial in nature; (ii) the Collateral Agent shall
      not,
      by reason of this Agreement, have any fiduciary obligations to any Noteholder;
      (iii) nothing in the Security Documents, express or implied, is intended to
      or
      shall be construed to impose upon the Collateral Agent any obligations in
      respect of the Security Documents except as expressly set forth therein; (iv)
      each Noteholder has made or shall make its own independent investigation of
      the
      financial condition and creditworthiness of the Company in connection with
      the
      extension of credit evidenced by said Noteholder’s respective Note, as the case
      may be, and the Collateral Agent shall have no duty or responsibility, either
      initially or on a continuing basis, to provide any Noteholder with any credit
      or
      other information with respect to the Company. The Noteholders further
      acknowledge and agree that the Collateral Agent shall have no obligation
      whatsoever to any Noteholder or any other Person to assure that any Pledged
      Collateral exists or is owned by the Company; or is cared for, protected or
      insured; or that any liens or security interests granted to the Collateral
      Agent
      have been properly or sufficiently or lawfully created, perfected, protected
      or
      enforced or are entitled to any particular priority; or to exercise at all
      or in
      any particular manner or under any duty of care, disclosure or fidelity, or
      to
      continue exercising, any of the rights, authorities and powers granted or
      available to the Collateral Agent in the Security Documents; it being understood
      and agreed that in respect of the Pledged Collateral or any act, omission or
      event related thereto, subject to the terms of this Agreement, the Collateral
      Agent may act in any manner it may deem appropriate, in its discretion, and
      that
      the Collateral Agent, acting in such capacity, shall have no duty or liability
      whatsoever to any of the other Noteholders; provided,
      however,
      that
      the Collateral Agent shall exercise the same care which it would exercise in
      dealing with loans made and collateral security held solely for its own
      account.

     

    (d)  The
      Collateral Agent acknowledges that it has been granted a security interest
      in
      the Pledged Collateral for the ratable benefit of the Noteholders, and agrees
      to
      hold the Pledged Collateral in possession of the Collateral Agent for the
      ratable benefit of each Noteholder. 

     

    2.2 Enforcement
      of Rights in Pledged Collateral; Enforcement of Notes.
      Each
      Noteholder agrees that it will not have any right to enforce or seek to enforce
      any rights individually or separately under the Security Documents or to realize
      upon any Pledged Collateral individually or separately, unless instructed by
      the
      Collateral Agent in writing to do so on behalf of the Collateral Agent, it
      being
      understood and agreed that such rights and remedies may be exercised only by
      the
      Collateral Agent. 

     

    SECTION
      3. COLLECTIONS
      AND RELATED MATTERS

     

    3.1  Pledged
      Collateral and Collections.

     

    (a)  In
      furtherance of and not in limitation of the rights and powers granted to the
      Collateral Agent hereunder, the parties hereto hereby agree that the Collateral
      Agent, in its capacity as such, has the exclusive right to collect and receive
      all Collections. The Collateral Agent shall also have the exclusive right to
      conduct secured party sales of the Pledged Collateral and to collect and
      compromise any accounts or other obligations that are part of the Pledged
      Collateral. All Collections shall be promptly distributed by the Collateral
      Agent to the Noteholders in the form in which received by the Collateral Agent,
      if reasonably practicable. Any money, property or securities realized upon
      the
      sale, disposition or other realization by the Collateral Agent upon all or
      any
      part of the Pledged Collateral, or otherwise received by Collateral Agent under
      any provision of this Agreement, shall be applied by the Collateral Agent
      according to Section 11 of the Pledge and Security Agreement. 

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

       

    

    (b)  All
      Collections received by the Collateral Agent shall be held by the Collateral
      Agent for the Noteholders and deposited by the Collateral Agent in one or more
      of its bank accounts and applied as provided herein. The Collateral Agent does
      not assume and shall not have any liability to the Noteholders for the repayment
      of the Obligations. 

     

    3.2  Costs
      and Expenses.
      The
      Collateral Agent may incur and pay reasonable costs and expenses to the extent
      it deems reasonably necessary or appropriate for the performance and fulfillment
      of its functions, powers and obligations pursuant to the Security Documents,
      including, without limiting the generality of the foregoing, court costs,
      reasonable attorneys' fees, costs of collection by outside collection agencies,
      and auctioneers’, experts’ and appraisers’ fees and insurance premiums paid to
      maintain the Pledged Collateral, whether or not the Company is obligated to
      reimburse the Collateral Agent or the Noteholders for such expenses pursuant
      to
      the Security Documents or otherwise.

     

    3.3  Defaults
      and Remedies.

     

    (a)  The
      Collateral Agent shall not be deemed to have knowledge or notice of the
      occurrence of any Event of Default (as defined in the Pledge and Security
      Agreement) unless the Collateral Agent shall have actually received written
      notice from a Noteholder referring to this Agreement, describing such Event
      of
      Default and stating that such notice is a “notice of default.” 

     

    (b)  On
      or
      after the occurrence of an Event of Default the Collateral Agent, in its
      absolute discretion may, and at the written request of the Requisite Noteholders
      shall, commence efforts to exercise any rights or remedies against the Company
      under the Security Documents on behalf of the Noteholders (including, without
      limitation, execution upon Pledged Collateral) provided that the Collateral
      Agent shall have full discretion to determine the time, place and manner of
      such
      actions.

     

    (c)  Except
      as
      otherwise expressly provided herein, all rights and remedies provided in the
      Security Documents with respect to the Pledged Collateral and the collection
      of
      the Notes shall inure to the benefit of the Collateral Agent on behalf of the
      Noteholders collectively, and shall be exercised by the Collateral Agent only
      and no other Person (unless such other Person is expressly authorized to do
      so
      by the Collateral Agent or by a court of competent jurisdiction) for the benefit
      of the Noteholders in accordance with the terms thereof and hereof.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

       

    

    3.4  Other
      Acts.
      The
      Noteholders hereby irrevocably authorize the Collateral Agent, at its option
      and
      in its discretion, to release any lien and/or security interest granted to
      or
      held by the Collateral Agent on or in any Pledged Collateral (x) upon the
      payment and satisfaction of all of the Obligations (as defined in the Security
      Agreement) (other than contingent indemnification obligations to the extent
      no
      claims giving rise thereto have been asserted) or (y) upon the occurrence
      of other facts or circumstances reasonably believed by the Collateral Agent
      in
      good faith not to prejudice the rights of the Noteholders under the Security
      Documents. Without in any manner limiting the Collateral Agent’s authority to
      act as described in the previous sentence, each Noteholder hereby agrees to
      confirm in writing, upon request by the Collateral Agent, the authority
      conferred upon the Collateral Agent under this Section
      3.4
      to
      release any Pledged Collateral.

     

    SECTION
      4. SCOPE
      OF COLLATERAL AGENT LIABILITY

     

    4.1  Responsibility
      of the Collateral Agent.

     

    (a)  Neither
      the Collateral Agent nor any of its officers, directors, partners, managers,
      employees, agents or representatives shall be liable to the Noteholders for
      any
      action taken or omitted to be taken under or in connection with the Security
      Documents or otherwise (whether or not such action taken or omitted is within
      the Collateral Agent's responsibilities and duties expressly set forth in the
      Security Documents), except as a result of willful misconduct or gross
      negligence on the part of the Collateral Agent as determined by a final
      non-appealable order of a court of competent jurisdiction. The Collateral Agent
      does not assume any responsibility for any failure of, or delay in performance
      by, or breach by the Company or any Noteholder of his or its obligations under
      any of the Security Documents, the Note Purchase Agreement or the Notes. The
      Collateral Agent shall not be liable for any apportionment or distribution
      of
      payments made by it in good faith; and if any such apportionment or distribution
      is subsequently determined to have been made in error, the sole recourse of
      any
      Noteholder to whom payment was due but not made shall be to recover from the
      other Noteholders any payment in excess of the amount to which they are
      determined to be entitled (and such other Noteholders hereby agree to return
      to
      such Noteholder any such erroneous payments received by them). In no event
      shall
      the Collateral Agent be liable for punitive, special, consequential, incidental,
      exemplary or other similar damages. In performing its obligations hereunder,
      neither the Collateral Agent nor any of its officers, directors, partners,
      managers, employees, agents or representatives shall be responsible to any
      Noteholder for any recitals, statements, representations or warranties herein
      or
      for the execution, effectiveness, genuineness, validity, enforceability,
      collectability, or sufficiency of the Security Documents or the transactions
      contemplated thereby, or for the financial condition of the Company. The
      Collateral Agent shall not be required to make any inquiry concerning either
      the
      performance or observance of any of the terms, provisions or conditions of
      the
      Security Documents or the financial condition of the Company, or the existence
      or possible existence of any default under any agreements to which the Company
      and/or any one or more Noteholders is a party. The Collateral Agent may at
      any
      time request instructions from the Noteholders with respect to any matters
      contemplated by this Agreement, and the Collateral Agent shall be absolutely
      entitled, without any liability whatsoever to any Person, to refrain from taking
      any action or granting any approval under the Security Documents until it shall
      have received such instructions from the Requisite Noteholders. Without limiting
      the foregoing, no Noteholder shall have any right of action whatsoever against
      the Collateral Agent as a result of the Collateral Agent acting or refraining
      from acting under the Security Documents in accordance with the instructions
      of
      the Requisite Noteholders; and, notwithstanding the instructions of the
      Requisite Noteholders, the Collateral Agent shall have no obligation to take
      any
      action if it believes, in good faith, that such action is illegal or exposes
      the
      Collateral Agent to any liability it has not assumed or otherwise agreed to
      under this Agreement for which it has not received satisfactory indemnification
      in accordance with this Agreement.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

       

    

    (b)  In
      exercising rights and remedies with respect to the Pledged Collateral, the
      Collateral Agent and, subject to the provisions hereof, the Noteholders may
      enforce the provisions of the Pledge and Security Agreement and exercise
      remedies thereunder, all in such order and in such manner as it or they may
      determine in the exercise of its or their sole business judgment. Such exercise
      and enforcement shall include the rights to sell or otherwise dispose of Pledged
      Collateral, to incur expenses in connection with such sale or disposition and
      to
      exercise all the rights and remedies of a secured lender under the Uniform
      Commercial Code of any applicable jurisdiction. The Collateral Agent’s rights
      with respect to the Pledged Collateral include the right to release any or
      all
      of the Pledged Collateral from the liens under the Security Documents in
      connection with any sale of all or any portion of the Pledged Collateral
      notwithstanding that the net proceeds of any such sale may not be used to
      permanently prepay any Obligations (as defined in the Security Agreement).
      The
      Noteholders are hereby deemed to have consented to such sale(s) under the
      Security Documents. 

     

    (c)  The
      Collateral Agent shall be entitled to act upon, and shall be fully protected
      in
      acting upon, any communication in whatever form believed by the Collateral
      Agent
      in good faith to be genuine and to have been signed or sent by a Person
      authorized and entitled to do the same. The Collateral Agent shall be entitled
      to act, and shall be fully protected in any action taken in good faith in
      accordance with advice given by any counsel retained by the Collateral Agent.
      The Collateral Agent shall not be liable for the default or misconduct of any
      agents or attorneys-in-fact selected by the Collateral Agent with reasonable
      care.

     

    4.2  Indemnification.
      The
      Noteholders hereby jointly and severally agree to reimburse and indemnify and
      defend the Collateral Agent for, from and against any and all advances,
      disbursements, liabilities, obligations, losses, damages, penalties, actions,
      judgments, suits, costs, expenses (including, without limitation, attorneys’
fees and expenses) of any kind or nature whatsoever which may be imposed on,
      incurred by, or asserted against the Collateral Agent in any way relating to
      or
      arising out of this Agreement or any action taken or omitted by the Collateral
      Agent under the Security Documents; provided,
      however,
      that no
      Noteholder shall be liable for any portion of such liabilities, obligations,
      losses, damages, penalties, actions, judgments, suits, costs, expenses, advances
      or disbursements to the extent resulting from the Collateral Agent’s gross
      negligence or willful misconduct as determined by a final non-appealable order
      of a court of competent jurisdiction. If any indemnity furnished to the
      Collateral Agent for any purpose shall, in the sole, reasonable opinion of
      the
      Collateral Agent, be insufficient or become impaired, the Collateral Agent
      may
      demand additional indemnity and cease, or not commence, to do the acts
      indemnified against even if so directed by the Requisite Noteholders until
      such
      additional indemnity is furnished. The obligations of the Noteholders under
      this
Section
      4.2
      shall
      survive the payment and performance in full of the Obligations and the
      termination of this Agreement.

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

       

    

    4.3  Collateral
      Agent acting as Noteholder; Investment Transaction.
      The
      Collateral Agent shall have, and may exercise, the same rights and powers
      hereunder and is subject to the same obligations and liabilities as, and to
      the
      extent set forth herein for, any other Noteholder. The terms “Noteholders,”
“Requisite Noteholders,” or any similar terms shall, unless the context clearly
      otherwise indicates, include the Collateral Agent in its individual capacity
      as
      a Noteholder or one of the Requisite Noteholders, as the case may be. Further,
      the parties hereto hereby acknowledge that some or all of the Noteholders may
      acquire, from time to time, debt or equity securities of the Company (other
      than
      the Notes) in one or more equity or debt purchase transactions and that the
      Collateral Agent may serve as a collateral agent for such other transactions
      and
      the parties hereto hereby agree that said acquisitions and such services shall
      not be construed to increase or adversely affect the Collateral Agent’s duties
      or liability to the Noteholders, whether under the Security Documents or under
      any instruments or agreements executed and delivered in connection with any
      such
      equity or debt acquisitions. 

     

    4.4  Successor
      Collateral Agent.
      The
      Collateral Agent may resign at any time by giving at least 10 days’ prior
      written notice to the Noteholders, whereupon the resigning Collateral Agent
      shall be discharged from all further duties and obligations hereunder, except
      to
      hold all Pledged Collateral then held by it for disposition pursuant to the
      provisions of this Section
      4.4.
      The
      Requisite Noteholders may, upon the resignation of the Collateral Agent or
      at
      any time upon the consent of the Requisite Noteholders, appoint a successor
      Collateral Agent. Upon the acceptance of its appointment by any successor
      Collateral Agent, such successor shall thereupon succeed to and become vested
      with all the rights, powers, privileges and duties of the resigning or replaced
      Collateral Agent. In the event a successor Collateral Agent is appointed, the
      resigning or replaced Collateral Agent shall, promptly upon receipt of notice
      of
      such appointment, deliver all Pledged Collateral then held by it to said
      successor (such delivery to be effectuated by physical delivery, endorsement
      of
      instruments, or otherwise as the nature of the Pledged Collateral shall
      require); and in the event a successor is not promptly appointed, the resigning
      Collateral Agent may, in its discretion, deliver all Pledged Collateral then
      held by it to a court of competent jurisdiction. After any resigning Collateral
      Agent’s resignation, the provisions of Section
      4.2
      shall
      continue to inure to its benefit as to any actions taken or omitted to be taken
      by it in its capacity as Collateral Agent prior to the effective date of
      resignation. 

     

    SECTION
      5.  MISCELLANEOUS

     

    5.1  Notices.
      All
      notices and consents required or permitted hereunder must be in writing and
      shall be deemed effectively given: (a) upon personal delivery to the party
      to be
      notified, (b) when sent by confirmed telex or facsimile if sent during normal
      business hours of the recipient; if not, then on the next Business Day, (c)
      three Business Days after having been sent by registered or certified mail,
      return receipt requested, postage prepaid, or (d) one Business Day after deposit
      with a nationally recognized overnight courier, specifying next day delivery,
      with written verification of receipt.

     

    If
      to the
      Company:

    

    SJ
      Electronics, Inc.

    5F,
      No.166, Sinhu 2nd
      Road

    Neihu
      District, Taipei City

    Taiwan

    Attention:
      Agatha Shen

    Telephone
      No.: 011-8862-8791-8838

    
      
        Facsimile
          No.: 011-8862-8791-1368
 

      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

    

    

    With
      a
      copy to:

    

    Guzov
      Ofsink, LLC

    600
      Madison Avenue

    New
      York,
      New York 10022

    Attention:
      Darren Ofsink, Esq.

    
      
        Fax:
          212.688.7273
 

    

    If
      to
      Collateral Agent or any Noteholder, to its address set forth on the signature
      page hereto.

     

    For
      purposes of this Agreement, “Business
      Day”
shall
      mean any day that is not a Saturday, Sunday or other day on which commercial
      banks located in the State of New York are authorized or required to be
      closed.

     

    5.2  Term.
      This
      Agreement shall become effective upon the date hereof and shall continue in
      full
      force and effect until the indefeasible payment and satisfaction in full of
      all
      of the Obligations (as defined in the Security Agreement).

     

    5.3  No
      Benefit to Third Parties.
      The
      terms and provisions of this Agreement shall be for the sole benefit of the
      Collateral Agent and the Noteholders and their successors and assigns; and
      no
      other person, firm, entity or corporation shall have any right, benefit,
      priority or interest under, or because of the existence of, this Agreement.
      

     

    5.4  Counterparts.
      This
      Agreement may be executed via facsimile and in one or more counterparts, each
      of
      which shall be deemed an original, but all of which, taken together, shall
      constitute one and the same instrument.

     

    5.5  Governing
      Law;
      Jury
      Trial Waiver.
      This
      Agreement shall be governed by, and construed in accordance with, the internal
      laws of the State of New York without regard to the choice of law principles
      thereof. EACH
      OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY
      LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN
      CONSULTED SPECIFICALLY AS TO THIS WAIVER.

     

    5.6  Entire
      Agreement; Amendments.
      This
      Agreement contains the entire understanding with respect to the subject matter
      hereof; and no amendment, modification, termination or waiver of any provision
      of this Agreement shall in any event be effective unless the same shall be
      in
      writing and signed by the Collateral Agent and the Requisite
      Noteholders.

     

    5.7  Further
      Assurances.
      Each of
      the Noteholders and the Collateral Agent hereby agree to execute and/or deliver
      any and all further documents, instruments or Agreements reasonably requested
      by
      the other party in order to give effect to, and more fully carry out the terms
      and provisions of this Agreement.

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

       

    

    5.8  Severability.
      Any
      provision of this Agreement that is prohibited or unenforceable in any
      applicable jurisdiction shall, as to such jurisdiction, be ineffective to the
      extent of such prohibition or unenforceability without invalidating the
      remaining provisions hereof but shall be interpreted as if it were written
      so as
      to be enforceable to the maximum extent permitted by applicable law, and any
      such prohibition or unenforceability in any jurisdiction shall not invalidate
      or
      render unenforceable such provision in any other jurisdiction. To the extent
      permitted by applicable law, the parties hereby waive any provision of law
      which
      renders any provision hereof prohibited or unenforceable in any
      respect.

     

    5.9  Headings.
      The
      headings used herein are for convenience only and do not constitute matters
      to
      be considered in interpreting this Agreement.

     

    [Remainder
      of page intentionally left blank

    Signature
      pages follow]

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF,
      the
      parties have caused this Agreement to be duly executed and delivered by their
      duly authorized officers as of the day and year first written
      above.

    

      
        	 	
                THE
                  COLLATERAL AGENT:

              
	 	 
	 	
                TRISTATE
                  TITLE & ESCROW, LLC

              
	 	 
	 	
                By:

              	 
	 	
                 

              	
                Name:

              
	 	
                 

              	Title:

      

    

    

      [Remainder
        of page intentionally left blank

      Signature
        pages for Noteholders follow]

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
[Noteholder
      Signature Page]

     

      
        

      

    

     

    COLLATERAL
      AGENCY AGREEMENT

     

      
        

      

    

     

    
      	
              IF
                AN INDIVIDUAL:

            	 	
              IF
                A CORPORATION, PARTNERSHIP,

            
	 	 	
                
                TRUST, ESTATE OR OTHER ENTITY:

            
	 	 	 
	
              _________________________________

            	 	
              __________________________________

            
	
              (Signature)

            	 	
              Print
                name of entity

            
	 	 	 
	
              _________________________________

            	 	
              By:________________________________

            
	
              (Printed
                Name)

            	 	
                    
                Name:___________________________

            
	 	 	
                    
                Title:____________________________

            
	
               

              Address:

              __________________________________

              __________________________________

              __________________________________

            	 	
               

              Address:

              ____________________________________

              ____________________________________

              ____________________________________

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