Document:

GUARANTEE

    

    The
      Surety (hereinafter referred to as the “Surety”) provides Chang Hwa Bank group
      (Chang Hwa Commercial Bank, including respective branches, hereinafter referred
      to as the “Bank”) with guarantee that the loan obligations of Kid
      Castle Internet Technology Corporation
      (hereinafter referred to as the “Borrower”) to the Bank is limited to the amount
      of NT$ 
      21,939,000 and relevant loan interest, deferred interest, penalty, compensation,
      and other liabilities subordinate to the loan shall be undertaken by the
      Borrower and the Surety shall be jointly liable with the Borrower for performing
      the obligations set forth in this clause. The Borrower and the Surety hereby
      agree to observe the following terms and conditions.

    

    General
      Provisions :

    

    
      	
              Article 1

               

            	All loans mentioned
              in
              this Guarantee include money, bills, sum of money advanced, overdraft,
              guarantee, compensation, and debts that are derived from loan related
              laws
              the Borrower owes to the Bank (including loans made in the past and
              loan
              payables at present).
	 	 
	
              Article 2

               

               

               

            	
              In
                the event the Borrower fails to settle any loan repayment on the
                maturity
                date/due date (including the status that the Borrower forfeits the
                right
                on a loan), the Bank can directly ask for repayment of loan payables
                from
                the Surety prior to filing a lawsuit in court against the Borrower
                or seek
                compulsory execution of the Borrower’s property and/or security for a
                loan. After the compensation to be made by the Surety on the Borrower’s
                behalf, the Bank shall hand over the mortgage to the Surety on which
                defect is found, in this connection, the Surety shall have no
                objection.

            
	 	 
	Article 3	The interest and deferred
              interest
              of each loan shall be calculated based on respective debt obligation
              and
              interest rate stipulated in each loan agreement; if the Borrower defaults
              to repay the loan, 10% of a designated loan interest (if there is any
              designated deferred interested rate, such interest rate shall prevail)
              shall be calculated as penalty for less than six months, whereas 20%
              of a
              designated loan interest shall be calculated as penalty for the period
              in
              excess of six months.
	 	 
	Article 4	The Surety agrees that
              the Bank
              has a lien on the Surety’s savings of various types deposited in the Bank
              and creditor’s right of the Surety to the Bank no matter if the maturity
              date is due or not, if the Borrower defaults to repay the loan. The
              offset
              of the creditor’s right of the Surety shall be effective as soon as the
              Surety’s account is rendered. At the same time, the deposit slip, deposit
              passbook, or other receipts issued from the Bank to the Surety shall
              be
              ineffective during the period of loan offset. In the event the offset
              amount is insufficient to the compensation of all loans made by the
              Surety
              on the Borrower’s behalf, the Surety is still liable to the compensation
              of the rest of the loan amount.

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	Article 5	
              The
                Surety shall bear the joint liability to repay all loans on the Borrower’s
                behalf, even though the Surety does not sign a loan receipt, a promissory
                note, or other debt obligations the Borrower owes to the Bank according
                to
                the Guarantee. 

            
	 	 
	Article 6	
              In
                the event any disputes arising from the explanation and execution
                of the
                Guarantee and may bring in a lawsuit case, all parties agree that
                case
                shall be subject to the jurisdiction of the Taiwan Taipei District
                Court
                for the first trial of such lawsuit. If there is any exclusive
                jurisdiction of courts stipulated by laws, the laws shall
                govern.

            

    

     

    Surety
      :
      Pai Suang-Yi

    Address
      :
      1-3, Alley 80, Guan-yin Lane, Baisha Village, Huatan Township, Chang Hwa
      County

    

    Surety
      :
      Yang Ming Tan

    Address
      :
      Lin-377, 1st Neighborhood, Cheng-Der Li, Ho Bian Bei Street, San-Chung City,
      Taipei County

    

    Surety
      :

    Address
      :

    

    Surety
      :

    Address
      :

    

    Surety
      :

    Address
      :

    

    

    
      	
              Identity
                Verification

            
	
              Pai
                Suang-Yi

               

              Apr.
                13, 2006

            
	
              Yang
                Ming Tan

               

              Apr.
                13, 2006

            
	
               

               

              MM/DD/YYYY

            
	
               

               

              MM/DD/YYYY

            

    

    

    Please
      note : continue on next page...

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Special
      Clauses :

    

    To
      Chang
      Hwa Commercial Bank

    

    The
      Surety may notify the Bank to terminate this Guarantee in writing at any time;
      however, the Guarantee is terminated :

    

    
      	
              q

            	
              on
                the next business day after the Bank receives the
                notification

            

      	 	 

      	q	___________________________________________. 

    

    

    The
      Surety shall not bear the joint liability to the loans incurred between the
      Bank
      and the Borrower starting from said date as above; nevertheless, the Surety
      shall be liable for all loans payable that the Borrower owes to the Bank within
      the maximum loan amount as agreed before the date stated above.

    The
      special clauses above are understood and agreed by the Surety.

    

    The
      Surety hereby declares that all clauses in the Guarantee have been carefully
      reviewed within a reasonable period.

    

    

    Surety
      :
      Pai Suang-Yi 
      (seal)

    

    Surety
      :
      Yang Ming Tan (seal)

    

    Surety
      :
      (seal)

    

    Surety
      :
      (seal)

    

    Surety
      :
      (seal)

    

    

    Date
      :
      Apr. 13, 2006

    

    

    
      	
              Loan
                Support Supervisor

            	 
	
              Loan
                Admin. Clerk

            	 
	
              Account
                checked by

            	 
	
              Signature
                checked byNo:
      0704-729446349-01

    FIRST
      SINO BANK

     

    Company
      Name: Kid Castle Educational Software Development Company Limited

    Company
      Address: Room 403D, 768 Quxi Road, Luwan District, Shanghai

     

    To:
      Min-Tan Yang

    About:
      Financing Limit Contract

     

    To
      Who
      May Concern:

     

    We
      are
      pleased to provide the following financing limit (the
      “limit”)
      to
      your
      party according to the General Terms concluded with your party and the terms
      and
      conditions as follows:

     

    1.
      Amount:
      The
      maximum amount is RMB3,000,000 (RMB
      Three
      Million) and/or
      USD            (USD      ).

     

    2.
      Specified Limit:
      Use as
      the short-term loan circularly in the period of 1 year, the longest term of
      each
      drawing should not exceed 6 months, the expiration day of each drawing (the
      expiration day) should
      be
      noted in the drawing notice of that drawing.

     

    The
      outstanding balance under this letter of limit (no matter whether the current,
      coming, actual or contingent balance) should
      not exceed RMB3,000,000 (RMB
      Three Million) at
      any
      moment.

     

    3.
      Guarantee: Min-Tan
      Yang and Kid Castle Internet Technologies Limited issue the counter-guarantee
      agreement, while the guarantor is Lotus Worldwide Limited (registered in British
      Virgin Islands).

     

    4.
      Interest: The
      current annual interest rate applicable for each RMB drawing is the benchmark
      interest rate of 6 months’ RMB loan published by the People’s Bank of China in
      the drawing day, and the subsequent floating rate will be adjusted according
      to
      the capital status of this bank. If the People’s Bank of China adjusts the
      benchmark interest rate, the interest rate of this bank will be adjusted
      correspondingly in the next day when the interest rate adjustment of People’s
      Bank of China becomes effective. Your party should pay the interest of the
      period of each drawing based on the actual days on each 21st
      of
      the
      month, and pay the outstanding interest of each drawing to this bank on the
      expiration day.

     

    The
      interest rate of USD loan is the SIBOR of the same term plus 1%,
      and it
      will be adjusted subsequently according to the capital status of this bank,
      your
      party should pay the interest of each drawing to this bank in the last day
      of
      each term.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.
      Drawing:
      Your
      party should submit a drawing notice at least 3 bank business days before the
      date requesting drawing for each drawing under the premise of other regulations
      of this letter of limit.

     

    6.
      Reimbursement:
      Unless
      this bank agrees to extend the time limit or change the term, the principal
      of
      each drawing should be reimbursed fully at the due date of the
      drawing.

     

    7.
      Expenses:
      For the
      bank commission charge and other charges, the standard expense rate of this
      bank
      will be referred.

     

    8.
      Taxes:
      For the
      sales tax and other taxes and expenses regulated by the government of China,
      the
      relevant regulations will be referred.

     

    9.
      Period of Validity of Limit:
      16 April
      2007 to 30 April 2008.

     

    10.
      Documents:
      The use
      of limit should satisfy the requirements of each standard document of this
      bank,
      which include but are no limited to:

     

    ◇
      The
      standard “General Terms” of this bank;

     

    ◇
      The
      resolution of your board of directors to approve and accept this
      limit;

     

    ◇
      The
      resolution of board of directors of Kid Castle Internet Technologies Limited
      to
      agree to provide guarantee for your party;

     

    ◇
      The
      counter-guarantee agreement issued by Kid Castle Internet Technologies
      Limited;

     

    ◇
      The
      counter-guarantee agreement issued by Min-Tan Yang;

     

    ◇
      The
      letter of guarantee issued by Lotus Worldwide Limited;

     

    ◇
      Other
      documents that may be requested by this bank.

     

    11.
      Applicable Laws: This
      letter of limit and its conditions and terms are applicable to and interpreted
      according to the laws of the People’s Republic of China.

     

    12.
      Jurisdiction: The
      dispute resulted from or related with this letter of limit is governed by the
      court of Shanghai with jurisdiction.

     

    13.
      Foreign Exchange Management

    If
      there
      is the USD in the loan, your party promises:

     

    13.1
      provide the following original loan use vouchers when repaying the principal
      and
      paying the interest, which include but are not limited to the foreign exchange
      receipt certificate, exchange settlement sanction and exchange memo, non-trade
      payment declaration, principal and interest sanction, written application to
      purchase foreign exchange to reimburse the loan and other vouchers requested
      by
      Shanghai Administration of Foreign Exchange;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    13.2
      authorize this bank the right to modify this letter of limit at any moment
      without condition when the laws and regulations on foreign exchange
      administration change.

     

    14.
      Others

    Each
      drawing granted by this bank according to this letter of limit, each drawing
      notice and corresponding loan confirmation file is an independent loan. The
      drawing notice submitted by your party for each drawing and countersigned by
      this bank should compose of the final agreement and independent contract between
      your party and this bank for the conditions and terms of that drawing together
      with the articles of this letter of limit.

     

    The
      usability of limit is based on the non-acceptance and depends on the frequent
      checkup by this bank and the decision whether to extend gradually. According
      to
      the general bank conventions and no matter how the above-mentioned terms and
      conditions state, this bank is entitled to (1) judge
      and
      decide discretionarily to provide the loan one by one and not obligated to
      provide each loan applied by your party, and (2) cancel
      or
      alter the limit or request your party to discharge all or any party loan
      immediately without notice in advance, no matter whether the limit is expired
      or
      there is the actual or contingent loan.

     

    Any
      fund
      not reimbursed or paid by your party at term under this letter of limit is
      applicable for the penalty interest rate on the overdue day; for RMB part,
      this
      bank will calculate on the base of the interest rate level stated in this letter
      of limit plus 50%, for USD part, this bank will calculate on the base of the
      interest rate stated in this letter of limit plus 3 percentage points, this
      bank
      reserves the right to collect the compound interest for the un-reimbursed or
      unpaid interest. If the People’s Bank of China adjusts the penalty interest rate
      of RMB or this bank adjusts the penalty interest rate of USD, this bank reserves
      the right to adjust the above-mentioned interest rate itself. The overdue
      interest and compound interest should be paid on the date specified by this
      bank.

     

    It
      is the
      premise of the use and continual usability of limit to satisfy the document
      requirement and all the terms of conditions(including all the terms and
      conditions of the “General Terms” signed by your party; if there is any
      inconsistency with this letter of limit, then the terms and conditions in this
      letter of limit is referred) under
      the
      letter of limit.

     

    This
      bank
      reserves the right to transfer the rights and obligations under the letter
      of
      limit according to the regulations of laws.

     

    If
      your
      party accepts the above-mentioned terms and conditions, please hand back the
      original copy of the signed letter of limit together with the resolution of
      your
      board of directors to lend the loan from this bank to this bank before 30 April
      2007.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    First
      Sino Bank

     

    
      

        
          	
                  _________________________  

                	 	
                  Contract
                    Seal of First Sino
                    Bank                             
                     

                
	
                  Authorized
                    Signature

                	 	
                  Official
                    Seal

                
	
                  Signature
                    Date: 20 April 2007

                	 	 

        

      

    

     

    This
      party ratifies, confirms and accepts all the above-mentioned terms and
      conditions.

    Kid
      Castle Educational Software Development Company Limited

     

    
      	Xu Xiaoshun  	Kid Castle Educational Software
              Development Company Limited
	Authorized Signature 	Official Seal
	Signature Date: 20
              April 2007	 

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    General
      Items and Conditions

    

    To:
      First
      Sino Bank 

    

    Whereas
      First Sino Bank (hereinafter referred to as “your bank”, including inheritors
      and assignees) agrees to open or keep our accounts of any nature or provide
      or
      continue to provide us, or other persons, firms, companies or entities with
      bank
      financing, money lending and other services based on the time limit that your
      bank thinks to be appropriate, we, Kid Castle Educational Software Development
      Company Limited which is located at Room 403D, 768 Quxi Road, Luwan District,
      Shanghai, unconditionally and irreversibly make the following commitments to
      your bank: 

    

    1.
      Definition of the debt

    The
      word
“debt”(one sum or several sums of debts) in this agreement refers to the debt
      that our company owes to your bank at present (including debts that our company
      owed to your bank in the past and haven’t been paid yet)or that our company will
      owe to your bank in the future. The debt may be in the form of a cheque, a
      draft, a casher’s cheque, a bond or any other certificates of creditor’s right;
      The debt may deal with the principal, interest, breach penalty, damage
      compensation or any other expenses; The debt may be a preexisting, related
      or
      single debt; The debt may be secured or unsecured; The debt may be matured
      or
      unmatured; The amount of the debt may be affirmed or hasn’t been affirmed yet;
      The debt may be borne by us as the principal debtor, joint guarantor, endorser,
      common guarantor, or consigner of credit bills, etc.; The debt may be borne
      by
      our company due to our own acts or as the result of the debt transfer; Also,
      the
      debt may be borne by us directly or as the agent of a third party. 

    

    2.
      Interests 

    2.01
      It
      is clearly prescribed that the money that our company needs to pay your bank
      includes payable interests. We shall discuss with your bank about the interest
      rate. If not, we shall pay interests according to the interest rate prescribed
      by your bank. The interest will be calculated day by day and must be paid before
      the habitual pay day of your bank. 

    

    2.02
      We
      agree that your bank may charge our company for the interest of an overdue
      payment, and the amount of the interest will be calculated according to the
      compound interest rate determined by your bank. 

    

    2.03
      The
      statement of payable interests issued by any senior employee of your bank will
      be binding upon our company, provided that the statement has no major mistakes.
      

    

    3.
      Guarantee 

    3.01
      Your
      bank may, according to our company’s demands, on behalf of our company or for
      the interests of our company, issue the guarantee statement, the compensation
      guarantee, the spare letter of credit or other payment commitment statements,
      or
      bear responsibilities by other means. And our company unconditionally and
      irreversibly agrees to compensate your bank for any losses as a result of claim
      for compensation, claim, legal action, getting into a debt, expenses, losses
      and
      expenditures caused by the above mentioned acts of guaranteeing, and will pay
      your bank any money caused by the above mentioned acts of guaranteeing without
      setting any limits. 

    

    3.02
      You
      bank may, without prior notice, debit money paid by your bank, your agency
      bank
      or agent as a result of the act of guaranteeing to one or several accounts
      of
      our company and charge us related money and interests. 

    

    3.03
      Your
      bank may pay any money required by the act of guaranteeing, without enquiring
      our company or receiving our approval and having no the responsibility to check
      whether the claim is reasonable or not (even our company has questions on the
      effectiveness of that claim). Our company shall accept any claim of your bank
      and pay any payable payments. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.04
      Our
      company promises to deposit the money that your bank, your agency bank or agent
      may pay as a result of the act of guaranteeing into your bank at the time when
      your bank asks our company to do so, unless the guarantee becomes invalid or
      is
      cancelled, in other words, we will keep the money deposited in your bank during
      the period that we must bear obligations or responsibilities under that
      guarantee. We will transfer such money and its total interests to your bank
      in
      the form of the additional guarantee, and promise not to withdraw, transfer,
      or
      pledge obligation rights or dispose or set obligation rights in other ways.
      

    

    3.05
      Any
      acts related to the guarantee that your bank take honestly for our company
      will
      have binding force upon us, but it doesn’t mean that your company will shoulder
      any responsibilities for our company. Your bank may terminate the guarantee
      or
      reduce responsibilities under the guarantee at any time, without prior notice
      to
      or receiving approval from our company. 

    

    3.06
      The
      obligations of our company under this clause will not be affected by the
      following factors: For some reasons, indemnity, guarantee, pledge, payment
      or
      other rights become completely or partially invalid, defective, unable to be
      executed, or legally invalid, or fail to be executed or have to be cancelled;
      Your bank, without approval from our company or failing to notify our company,
      change, sell off or exempt indemnity, guarantee, pledge, payment or other
      rights, or extend the time limit, give favorable treatments or make some
      concessions or reach a compromise with any person, firm, company or other
      entities or make some concessions or doesn’t ask to make payments or terminate,
      change, give up, reduce or extend any guarantee items or conduct or fail to
      conduct any behaviors which can exempt our responsibilities under this clause.
      

    

    3.07
      Our
      company gives up any subrogation right, and agrees that, before your bank is
      compensated in accordance with 3.01, our company will not claim counteraction
      or
      counterclaim from any persons, firms, companies or other entities or claim
      compensation from these persons, firms, companies or entities when they have
      no
      the ability to make compensations, or receive interests or shares from
      indemnities, guarantees or pledges hold by your bank at present or in the
      future. 

    

    3.08
      Sums
      received in accordance with Article 3 of this agreement will be entered to
      the
      credit of the temporary receipts account so as to reserve the right of your
      bank
      to confirm compensations that your bank claim from others. 

    

    3.09
      In
      case that your bank, according to the demands of our company, issue or
      countersign any guarantee that a shipping company or shipping agent is the
      beneficiary, and make our company or our assignee able to pick up the goods
      without the issuance of any bill of lading or document: (1) our company will
      try
      our best to acquire all endorsed bills of lading or documents, and offer them
      to
      related shipping companies or shipping agents or your bank (if necessary),
      so as
      to release your bank’s guarantees rapidly and cancel them and return them to
      your bank; (2) your bank can, on behalf of our company, endorse any related
      bills of lading or other documents so that your bank can offer these bills
      of
      loading or other documents to related shipping companies or shipping agents;
      (3)
      in case of shipping in accordance with the documentary letter of credit, our
      company promises not to care about the discrepancies between documents received
      and documents required by related documentary letters of credit (if any), and
      will regard these documents as the documents required by related documentary
      letters of credit; (4) before obligations under the guarantee are released
      and
      bills of exchange related to the goods are accepted and settled, if the bill
      of
      lading or other documents related to the right of ownership bear the head of
      our
      company or the head according to our company’s instructions, they shall be
      endorsed by our company and then offered to your bank or endorsed according
      to
      your bank’s instructions, in addition, sums obtained from the sale or disposal
      in other ways of these goods will be kept by our company on behalf of your
      bank.

    

    We
      agree
      that any other clauses or clauses in the letter of guarantee will not reduce
      or
      limit the rights of your bank or the obligations of our company under this
      agreement, no matter whether your bank will enjoy the right or not.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.
      Documentary letter of credit 

    4.01
      Article 4 of this agreement is applicable to the issuance of individual
      documentary letter of credit (“the documentary letter of credit”) by your bank
      according to our company’s demands. Each documentary letter of credit will be
      regarded as the individual contract object signed between your bank and our
      company. The Uniform Customs and Practices for Documentary Credits which will
      be
      amended by the International Trade Association irregularly is applicable to
      each
      documentary letter of credit. In case that there are any discrepancies between
      this agreement and the Uniform Customs and Practice, this agreement will
      prevail. 

    

    4.02
      Our
      company empowers your bank to pay or accept (enter the account of our company)
      bills of exchange, sight bills or other bills (“drafts”) issued in accordance
      with any documentary letter of credit. (1) in case of sight bills, our company
      shall liquidate the sight bill when your bank asks our company to do so, or
      make
      payments related to that draft according to the demands of your bank; (2) in
      case of acceptance, our company shall, when your bank asks us to make the
      payment (no later than the business day prior to the maturity day), make the
      payment at the place assigned by your bank. The payment will be made in the
      currency related to the draft or the currency assigned by your bank. In case
      that the draft is paid in another type of currency, the amount of the payment
      will be calculated according to the announced exchange rate on the payment
      day
      assigned by your bank or the payment day related to the draft. Our company
      shall
      compensate your bank for any losses resulting from fluctuations in the exchange
      rate. If our company offers a draft with your bank as the payer to raise money
      for the above mentioned debts, the draft shall be honored by your bank. And
      the
      above mentioned provisions shall be applicable, as that the draft is issued
      and
      honored in accordance with the documentary letter of credit. 

    

    4.03
      Claims for compensation, claims, legal actions, compensations for damages,
      expenses, losses, expenditures and other costs related the documentary letter
      of
      credit that your bank may pay include (but not limited to) (1) debts related
      to
      the documentary letter of credit that your bank, your agency banks or agents
      need pay to any confirming bank, notifying bank, negotiation bank or any other
      agency bank or agent or other person, or sums need to be paid to the above
      mentioned confirming bank, notifying bank, negotiation bank or their agency
      banks agents or other persons, and (2) transport costs, unloading expenses,
      storage expenses, and insurance premium, etc. Our company shall compensate
      your
      bank and free your bank from losses caused by the above mentioned items. Our
      company will offer your bank funds to pay the above mentioned debts or make
      payments related to the above items when required by your bank. 

    

    4.04
      Our
      company have the obligation to unconditionally make payments to your bank or
      compensate your bank according to the instructions of your bank. In fact, your
      bank has, may have or will have legitimate reasons to refuse payments related
      to
      the documentary letter of credit.And debts related to the documentary letter
      of
      credit shall not be taken as the excuse for refusing any demands under this
      agreement. In addition, our company’s obligations to your bank will not be
      affected by the above mentioned affairs. Any draft based on the documentary
      letter of credit will be taken as the final evidence that your bank has or
      will
      have the responsibility to make payments. 

    

    4.05
      Our
      company shall pay your bank commissions, other charges and interests related
      to
      each documentary letter of credit when required by your bank or at the due
      date
      for payment. The amounts of commissions, charges and interests shall be
      prescribed by your bank. Our company shall also pay your bank expenses resulting
      from the adherence to regulations on reserve funds concerning the execution
      of
      any documentary letter of credit or related drafts, or similar regulations.
      

    

    4.06
      Provided that Paragraph 7 of Article 4 of this agreement is not limited, your
      bank, your agency banks or agents will not take responsibilities for the
      following items. Also, the rights of your bank and obligations of our company
      under this agreement will not be affected by the following items. 

    

    (1)
      Any
      discrepancy between the description, characteristics, quality, quantity, status,
      packaging and value of the goods shown by the documentary letter of credit
      and
      those provided by the person who holds the documentary letter of credit, or
      the
      validity, completeness, correctness and trueness of the documentary letter
      of
      credit. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (2)
      Shipping time, place, method or order; Shipping only part of the goods or
      failing to ship the goods related to the documentary letter of credit or any
      other documents; The shipper or any other persons fails to obey instructions,
      delays, fails to perform or cheat others in the transport of the goods.

    

    (3)
      Characteristics, sufficiency, validity and truthfulness of any insurance; the
      ability of or the responsibility for repaying debts of any insurance company;
      any other risks related to the insurance. 

    

    (4)
      The
      ability of and the responsibility of repaying debts of any party issuing
      documents for the goods, and its relationship with the goods 

    

    (5)
      Breach
      of
      the contracts between our company and shippers, sellers, other persons, firms,
      companies or other entities. 

    

    (6)
      Conformity to laws, regulations, customs or practices of the country in which
      the documentary letter of credit is negotiated or paid or circumstances related
      to these laws, regulations, customs or practices. 

    

    (7)
      In
      case that a draft fails to give indication of or fails to give clear indication
      of related documentary letter of credit, or any person fails to write down
      the
      amount of the draft on the back of the documentary letter of credit or fails
      to
      provide the documentary letter of credit or fails to submit related documents
      related to the draft or just offer the draft, your bank can give up the above
      mentioned regulations contained in the documentary letter of credit.

    

    (8)
      Delay
      or failure in the acceptance or payment of the draft. 

    

    (9)
      Any
      mistake, omission, discontinuance or delay caused by transmitting or sending
      information by mail, telex, telegraph, fax or other means. 

    

    (10)
      Behaviors, failure to act, mistakes, neglects, breaches of the contract, having
      no the repayment capability or bankruptcy of any agency of your bank or agent;
      or the refusal of your bank, your agency banks, or agents to pay or accept
      drafts issued in accordance with the documentary letter of credit because of
      applicable laws or regulations made by governments of various levels or
      administrative authorities. 

    

    4.07
      Unless our company gives written notices with opposite instructions, your bank
      and your agency banks or agents may: 

    

    (1)
      Regard documents issued or said to be issued by a shipper or its representative
      as the bill of lading and take the shipment date on the documents as the
      shipment date of the goods. 

    

    (2)
      Accept the insurance policy, the certificate of insurance or the binding slip
      as
      the insurance documents. 

    

    (3)
      Accept the goods name on the invoice to honor the bill of loading, the insurance
      policy or other documents, not considering whether there are differences between
      the goods name on these documents and that on the invoice. 

    

    (4)
      Collect and honor bills of lading (no matter whether it is signed or initialed)
      on which the provisions are printed, written or typed, and assume that when
      or
      before the bill of lading is issued, these provisions have been approved to
      be
      listed in the bill of lading. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (5)
      Honor
      documents of any nature that conform to the laws, regulations, customs or
      practices of the shipping or negotiation place. 

    

    (6)
      On
      the premise of conformity to the agreement, your bank may at any time decide
      at
      your discretion to refuse to issue the letter of credit, unless the transport
      documents are submitted. 

    

    4.08
      Unless our company sends written notices with opposite instructions, your bank
      may: 

    (1)
      Ship
      part of the goods in accordance with any documentary letter of credit, and
      your
      bank and your agency banks or agents may honor or pay any draft related to
      the
      shipment of part of the goods. 

    

    (2)
      Your
      bank and your agency banks or agents may honor or pay any draft whose date
      is
      the maturity date of any documentary letter of credit or before that date,
      not
      considering when that draft is issued or negotiated. But dates of other
      necessary documents must be the same as the maturity date of that documentary
      letter of credit or before that date. 

    

    (3)
      If a
      documentary letter of credit prescribes that the goods shall be shipped by
      installments but the shipper fails to ship an installment of goods within the
      prescribed period, other installments shall still be shipped within their
      respective time limits. Your bank and your agency banks or agents may honor
      or
      pay any related drafts. Except the irrevocable documentary letter of credit,
      your bank may terminate any documentary letter of credit at any time before
      the
      documentary letter of credit expires. 

    

    4.09
      If
      your bank receives part of documents under the documentary letter of credit
      and
      offer such documents to us according to trust receipts or other documents before
      related drafts are submitted, our company shall compensate your bank and pay
      any
      related costs. Our company hereby empowers your bank to pay or honor such
      drafts. 

    

    4.10
      Our
      company will observe any applicable foreign exchange management regulations,
      and
      will acquire rapidly or urge other persons to acquire necessary import and
      export license or other related licenses, and will compensate your bank for
      failure to acquire the import and export license or other licenses, defects
      of
      the import and export license or other licenses or having no the import and
      export license and other licenses. Our company promises not to breach laws
      and
      regulations of the People’s Republic of China and any other applicable countries
      and regions and not to use the documentary letter of credit to conduct any
      shipments or transactions. 

    

    4.11
      Before our company pays off each documentary letter of credit and related debts,
      commissions, charges and interests and settle all obligations of our company
      to
      your bank that are related to the documentary letter of credit and related
      goods, your bank can exercise your own discretion to decide the shipping of
      the
      goods, the destination and the delivery, and arrange the goods through
      negotiation with the seller, the shipper or other persons (including the
      correction or performance of any contract). And your bank will not be reliable
      for any losses caused by the above mentioned decisions and arrangements. The
      above mentioned intervening behaviors conducted by your bank will not affect
      our
      company’s obligations to your bank, and our company shall pay your bank all
      expenses resulting from these intervening behaviors. 

    

    4.12
      Act
      or omission conducted by your bank and your agency banks or agents honestly
      for
      our company will have binding force upon our company, but it doesn’t mean that
      your bank and your agency banks or agents will assume corresponding
      responsibilities. Each user of the documentary letter of credit will be regarded
      as the agent of our company, and our company will bear the risks caused by
      the
      act or omission by agents of our company. 

    

    4.13
      Shipments of goods under this section include ocean, air and land
      transportation. Bills of lading under this section include the air way bill,
      which shall be explained in accordance with related regulations. The documentary
      letter of credit in this agreement includes the increase in the money sum,
      and
      any documentary letter of credit that has been extended or corrected.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.
      Pledge and Securities 

    5.01
      Our
      company agrees that your bank may hold the following items as the guarantee
      that
      our company will pay and settle all the debts that our company owes or may
      owe
      your bank: and perform the obligations of our company to your bank: (1) all
      the
      goods that our company or other persons on behalf of our company or by following
      the instructions of our company turn over to your bank and your agency banks
      or
      agents or any other persons, firms, companies or other entities on behalf of
      your bank, and (2) all the drafts, bills, casher’s cheques, promissory notes,
      cheques, negotiable instruments, shipping documents, bills of lading, godown
      warrants, certificates or receipts or other documents proving the right of
      ownership issued by dock companies or warehouses or warehouse keepers related
      to
      the goods that our company or other persons on behalf of our company or by
      following the instructions of our company deposit or may deposit later in your
      bank or your agents or any other persons on behalf of your bank, and the goods
      related to these bills and documents. 

    

    5.02
      Our
      company agrees that all drafts, bills, promissory notes, cheques and negotiable
      notes issued, honored or endorsed by our company, and all the goods or related
      shipping documents, bills of lading, godown warrants, as well as certificates,
      receipts, invoices or other documents proving the right of ownership issued
      by
      dock companies or warehouses or warehouse keepers, which will be taken by your
      bank as the basis for granting loans to our company, will be hold by your bank
      as the securities for money. 

    

    5.03
      Your
      bank may at your own discretion decide to unload and store any of the above
      mentioned goods, or even ship these goods to any other port. Our company will
      pay transportation costs, storage costs, dock charges and other charges for
      your
      bank, and your bank may enjoy, on behalf of our company, related rights.

    

    5.04
      Our
      company will transfer all documents related to the right of ownership and other
      related documents to your bank, or deposit them in the place as required by
      your
      bank, or let your bank dispose or manage these documents. Our company assigns
      your bank as the agent of our company, and your bank may, on behalf of our
      company, asked related persons to submit such documents and may endorse them.
      

    

    5.05
      Our
      company promises that all the goods and documents kept by your bank as
      securities for money have no other beneficiary’s lien, and we shall formally
      endorse (if necessary) these documents, and turn them over to your bank upon
      receiving these documents. 

    

    5.06
      Our
      company shall keep the goods in good and marketable condition, and will not
      sell
      these goods without receiving the approval from your bank in advance. Employees
      or representatives of your bank may, without notifying our company in advance,
      visit the building or site where the goods are stored, or move these goods
      to a
      site that your bank thinks to be suitable, or close down the above mentioned
      building or site, or affix the notice that demonstrates the measures taken
      by
      your bank to safeguard your rights and interests. 

    

    5.07
      Despite the fact that the goods and related documents are held, kept or under
      the control of your bank, our company shall still bear all the risks related
      to
      these goods and your bank will not be liable for any losses, damages or
      depreciation (regardless of the reasons) of the goods and related documents
      as
      the securities for money. Our company shall compensate your bank for all the
      claims for compensation, claims, damage compensations, costs, losses and
      expenditures caused by acts conducted by your bank in accordance with provisions
      in this article. 

    

    6.
      Securities 

    6.01
      All
      the stocks, shares, share certificates, bonds, notes, debenture stocks and
      other
      securities (no matter whether they can be sold or not), together with any
      securities as the substitute for these securities, all the dividends or
      interests that will be paid after the maturity date of this agreement, capital
      bonus, and choice rights and other sums of money (all these are called as
“securities”) that our company or our representatives hand over to your bank, or
      that are held by your bank or assignees, or whose ownerships have been
      transferred to your bank or assignees, or that are registered in the name of
      your bank or assignees (no matter for safekeeping, as securities for money
      or
      for other purposes)shall be pledged to your bank, and, if allowed by law, taken
      as the guarantee that our company will pay off and settle all debts as described
      in Article 1. But your bank will not be liable for any called up money,
      installments or other payments. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6.02
      Our
      company will deposit or urge other persons to deposit the following items in
      your bank when your bank asks our company to do so, and your bank has the right
      to keep them: (1) all the documents showing the right of ownership of the
      securities, (2) ownership transfer documents with your bank as the beneficiary
      or completed in accordance with your instructions, (3) other documents that
      your
      bank needs to make the ownership legally valid or that are necessary for the
      transfer of ownership to your bank, assignees or any buyer. 

    

    6.03
      Your
      bank may take all necessary measures to put all collateral securities in your
      bank for safekeeping. 

    

    6.04
      When
      your bank asks our company to pay off or settle any loan, obligation or
      responsibility (or when our company files such a request): 

    

    (1)
      Your
      bank and any assignees may, without notifying our company in advance, enjoy
      all
      rights that this agreement or the general guaranty law endows to your bank
      or
      that your bank is able to acquire. Except affairs concerning the money actually
      received, your bank, as the mortgagee of securities, needn’t explain acts
      conducted by your bank or your representatives. 

    

    (2)
      Your
      bank may use any dividends, interests or other sums of money of all the
      securities, as that these dividends, interests or money are obtained by selling
      goods. 

     

    6.05
      Before your bank files the request in accordance with Paragraph 4 of Article
      6:

    (1)
      Your
      bank will, for the interests of our company, hold all interests and dividends,
      and hand them over to us when our company asks your bank to do so.

    

    (2)
      If
      your bank thinks it is appropriate, you may, by following written instructions
      of our company, exercise the voting power or other rights attached to the
      securities. 

    

    6.06
      Your
      bank and your assignees may, according to the decisions made by your bank,
      to
      exercise at any time, in the name of our company or other entities, the voting
      power and other rights concerning the securities or other possessions being
      entrusted, without further approval or authorization from our company. However,
      such rights shall be exercised in accordance with Paragraph 5 of Article 6.
      

    

    6.07
      Our
      company promises that our company is the actual owner of the securities, and
      has
      the right to deposit and transfer such securities, and these securities have
      no
      lien, hypothecation or creditor’s right. 

    

    6.08
      Our
      company hereby promises that we will pay all called up sums of money,
      installments and other payments. If our company fails to pay the above mentioned
      sums of money, your bank may at your own discretion make these payments on
      behalf of our company, and our company will pay your bank these sums of money
      when your bank asks our bank to do so. Before these sums of money are paid,
      our
      company shall leave securities in your bank as pledges. 

    

    6.09
      Our
      company promises to maintain values of these securities equal to the amount
      prescribed in this agreement and the amount of the caution money prescribed
      in
      written form by your bank, and pay all called up money, installments and other
      types of money (if any)concerning the securities at the maturity date.

    

    6.10
      Our
      company hereby agrees that your bank may check all collateral securities at
      any
      time. If the collateral securities are defective in quality and short in
      quantity or there are other problems with the collateral securities, the
      promiser shall immediately provide collateral securities recognized by your
      bank
      and compensate your bank for all losses. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6.11
      In
      case that the value of collateral securities depreciates or collateral
      securities are impaired or damaged due to natural and man-made disasters, the
      promiser shall complement collateral securities in cash or with other items
      recognized your bank, and your bank will not be liable for any losses.

    

    6.12
      In
      case that collateral securities are requisitioned for public use or other
      reasons and the promiser is compensated directly by money, the promiser shall
      transfer the compensation to your bank. But if it is allowed by law that your
      bank may directly get the compensation, the promiser shall sign and transfer
      all
      related documents to your bank, and your bank may keep the compensation as
      the
      securities for money. 

    

    7.
      Use trust receipt in a series 

    7.01
      If
      the goods have been pledged to your bank and documents related to the goods
      have
      been offered to our company, our company may, on behalf of your bank, withdraw,
      unload, store and hold these goods, and will bear all costs thus incurred.
      Although our company will hold such goods, related bills of lading, and
      certificates or receipts issued by dock companies, warehouses or warehouse
      keepers, your bank is the owner of such goods, and our company just keeps such
      goods, bills of lading, certificates or receipts on behalf of your bank.
      According to our knowledge, our company has no the right to fulfill any
      liabilities on behalf of your bank. 

    

    7.02
      Our
      company may sell all the goods to the real buyer based on the true value of
      these goods, and will pay your bank all the money obtained from selling the
      goods upon receiving the money. If the payment is made in RMB yuan, our company
      promises to convert the RMB yuan into an equivalent amount of US dollars or
      other currencies, and the exchange rate will be based on the exchange rate
      announced by People’s Bank of China on that day. If the money is remitted to our
      company’s account in another bank, our company promises to immediately transfer
      that sum of money to your bank. If the goods have been delivered and the buyer
      fails to make the payment, our company shall hold the debts of the buyer for
      the
      interests of your bank. 

    

    7.03
      Your
      bank’s employees or agents may check or possess such goods at any time. Our
      company shall, in compliance with wishes of your bank, return the goods or
      unsold goods and documents related to the sale and disposal of goods to your
      bank, and will bear all expenses incurred. 

    

    7.04
      Besides provisions in this Article, according to our knowledge, Article 4 and
      provisions in each trust receipt signed according to shipping documents and
      other documents that are handed over to our company also have binding force
      upon
      our company. 

    

    8.
      Insurance 

    Our
      company shall insure all goods and other possessions owned by your bank for
      an
      amount at least equal to the total market value of such goods and other
      possessions at the insurance company recognized by your bank. Our company shall
      ensure that your bank is the beneficiary of insurance policies concerning all
      the above mentioned goods and possessions. In case of any losses, all
      compensations shall be paid to your bank. Our company shall, when required
      by
      your bank, deposit all insurance policies and other related documents in your
      bank. Our company hereby empowers your bank to take back or collect all
      receivables under any above mentioned insurance policies that will come due,
      and
      hereby transfer such insurance policies to your bank. In case that our company
      fails to insure the goods and other possessions, or fails to maintain such
      insurances, or fails to provide your bank with insurance policies, or your
      bank
      thinks that the insurance value is not sufficient, our company will, when
      required by your bank, pay your bank all the money that your bank advances
      for
      our company. In addition, your bank may charge our company for the interests
      of
      the money advanced for our company which is calculated from the date that the
      money is advanced to the settlement date according to the highest interest
      rate
      allowed by law. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9.
      Negotiation and collection 

    9.01
      Our
      company agrees that clauses and conditions contained in any remittance letter
      that is offered or sent to your bank will be applicable to the following
      transactions until such clauses and conditions become invalid: drafts enclosing
      shipping documents or other documents that your bank, on behalf of our company,
      purchased or negotiated, drafts and/or documents concerning the letter of credit
      or other entrust receipts, or drafts and/or other documents that your bank
      collects for our company. 

    

    9.02
      In
      case that your bank provides our company with pre-export loans, our company
      shall, as soon as possible after our company receives drafts and/or documents
      that are opened in a correct way, and tally with related documentary letters
      of
      credit, and confirm the provisions in the order (no later than the date
      prescribed by your bank), hand over the drafts and/or related documents to
      your
      bank for negotiation. 

    

    9.03
      In
      case that your bank discounts drafts, long-term cheques or other instruments
      that are opened or endorsed by our company, and if such drafts or instruments
      are rejected for some reasons, our company will, when required by your bank,
      pay
      your bank such drafts, cheques or other instruments and relevant interests
      calculated from the pay date (drafts or instruments) or the cheque date
      (cheques), no matter whether our company has receive the notice of acceptance
      rejection. Under any of the following cases, a draft, cheque or instrument
      may
      be regarded as being rejected: if the currency type in which the payment is
      made
      is not that type of currency in the draft, cheque or instrument, or if related
      currency regulations don’t allow or forbid money related to such drafts, cheques
      or instruments to be remitted to the place assigned by your bank. The
      liabilities of our company to your bank will not be affected by failure or
      delay
      in the submission of or the rejection of such drafts, cheques or instruments,
      and your bank will no be liable for the failure or delay in the submission
      of or
      the rejection of such drafts, cheques, or instruments. 

    

    10.
      Foreign Exchange Contract 

    10.01
      Our
      company agrees that conditions contained in letters of confirmation offered
      by
      your bank will be applicable to all foreign exchange transactions between our
      company and your bank, until such conditions become invalid. On the premise
      that
      setting no limits on the rights of your bank under these conditions, in case
      of
      occurrence of any event described in Article 11, your bank may take that event
      as the breach of our company of the contract, and claim our company for
      compensations. Each foreign exchange transaction will completely depend on
      our
      own judgment, and our company will bear all risks. Your bank will not be
      reliable for any losses, no matter whether our company acts by following
      instructions of your bank or not. 

    

    10.02
      Our
      company unconditionally and irrevocably agrees to compensate your bank for
      all
      claims for compensation, claims, legal actions, debts, damage compensation,
      expenses, losses, and expenditures resulting from foreign exchange transactions
      conducted by your bank on behalf of our company, or for the interests of our
      company. Besides the above mentioned conditions, our company shall, when
      required by your bank, pay your bank all the money related to the foreign
      exchange transaction. Your bank may, without notifying our company in advance,
      debit any sum of money concerning the foreign exchange transaction to one or
      several account(s) of our company, and charge our company for related interests.
      Our company promises to deposit any of the above mentioned sums of money into
      your bank when required by your bank. Acts conducted by your bank in accordance
      with regulations on foreign exchange transactions will be binding upon our
      company, and your bank will not bear any responsibilities for our company.
      In
      addition, your bank may, at any time, terminate any of the above mentioned
      transactions, or reduce your responsibilities under the above mentioned
      transactions, without notifying us in advance. 

    

    11.
      Breaches of the contract 

    Regardless
      of other regulations or arrangements between our company and your bank, in
      case
      of the occurrence of the following events, our company’s debts and obligations
      to your bank shall be paid and settled upon receiving the first written request
      of your bank. In addition, our company shall, upon receiving the request from
      your bank, provide your bank with pledges in cash for outstanding debts that
      may
      occur in the future. Our company understands your bank’s right to file such
      requests and agrees that your bank may file such requests at any time.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (1)
      Our
      company fails to perform or observe this agreement or other agreements between
      your bank and our company. 

    

    (2)
      Our
      company fails to repay a debt that becomes or may be announced to be payables
      before the prescribed maturity day, or fails to repay a debt at the maturity
      day. 

    

    (3)
      Our
      company fails to honor or perform drafts, indemnifications, or other contingent
      liabilities that our company owes to other companies or take measures to provide
      other companies with pledges for the debts that our company owes to these
      companies. 

    

    (4)
      Pledges offered by our company become no longer valid or the value of these
      pledges has depreciated. 

    

    (5)
      Our
      company’s possessions are sealed up or detained. 

    

    (6)
      Any
      one among us becomes dead, or goes bankrupt, or suffers from mental illnesses,
      or transfers the interests and rights of creditors. 

    

    (7)
      Our
      company, within the normal business scope, stops or threatens to stop our
      transact businesses or part of our transact businesses, or makes what your
      bank
      thinks to be material changes to the nature of such transact businesses or
      operating methods. 

    

    (8)
      Our
      company has no the ability of repaying debts, or our company or your bank files
      the request for ending businesses. 

    

    (9)
      This
      agreement, other agreements between our company and your bank, or statements
      or
      guarantees concerning this agreement and other agreements between our company
      and your bank have material errors or are breached. 

    

    (10)
      Your
      bank learns that financial statements and contracts and documents concerning
      liabilities offered by the promiser or its representatives are unreal or may
      lead to misunderstandings. 

    

    (11)
      The
      use of the funds that the promiser obtains from your bank fails to match the
      use
      approved by your bank, and the promiser fails to correct the use within the
      correction period required by law or your bank. 

    

    (12)
      There are large adverse changes to the managing, operating or financial status
      of the promiser, and the promiser fails to correct it within the correction
      period required by law or your bank. 

    

    (13)
      The
      account of our company related to the pledge is frozen or annulled by the court
      or other governmental authorities for any reasons. 

    

    (14)
      Guarantees concerning the promiser’s obligations to your bank, or the guarantor,
      or the documents proving the promiser’s obligations to your bank, or the
      endorser of other vouchers, or our company’s pledges under this agreement have
      any of the above mentioned cases. 

    

    12.
      Selling right 

    12.01
      In
      case of the occurrence of any of the events described in Article 11, or if
      your
      bank thinks that realizable values of all goods or documents concerning this
      agreement are appropriate, your bank may decide at your discretion to sell
      these
      goods or documents or dispose them in an appropriate manner, without notifying
      any other person, and no matter whether debts that our company owes to your
      bank
      become due or not (except behaviors prohibited by applicable laws). Your bank
      or
      your agents will not be liable for any losses resulting from the above mentioned
      selling or disposal of goods and documents. Your bank and your agents, auction
      companies or any other persons hired for the selling and disposal of such goods
      and documents will not be liable for any behaviors or omissions. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    12.02
      Your bank may use the money obtained from selling or disposal of the goods
      and
      documents, after deducting all related expenditures and charges, to offset
      the
      debts that our company owes to your bank. 

    

    The
      certificate confirming the selling and disposing rights can be exercised that
      is
      signed by two senior employees of your bank can be taken as the final
      confirmation that the goods and documents can be transferred to other persons.
      And our company shall be responsible for any claim filed by any buyer against
      your bank for compensation for defects with the goods and documents of our
      company. 

    

    13.
      Payments 

    

    13.01
      Payments made by our company to your bank shall not have any counterbalance,
      counterclaim, limitations and conditions, tax deduction or other deductions.
      If
      taxes or other sums of money shall be deducted or withheld, in accordance with
      the law and relevant regulations, from the money of our company, other persons,
      firms, companies or other entities, our company shall provide your bank with
      these extra sums of money, so that your bank will receive the money in full,
      without taxes, deduction items or withholding items. 

    

    13.02
      Our
      company agrees to pay your bank stamp taxes, similar taxes (including
      value-added tax), notarial fee, registration fee, filing fee and other similar
      fees concerning this agreement and other funds that your bank offered to our
      company that shall be paid at present or in the future, and compensate your
      bank
      for all expenses and expenditures resulting from our failure to pay taxes or
      other expenses. 

    

    13.03
      Your bank may enter sums of money concerning our company’s obligations to your
      bank into the credit side of the suspense account, and the time limit shall
      be
      determined by your bank in an appropriate manner. In case of bankruptcy, ending
      of businesses, settlement, liabilities, reconciliation or negotiation, or
      similar procedures, your bank may prove our company’s outstanding debts and our
      company will reach an agreement concerning the settlement of liabilities with
      your bank, like that sums of money under the suspense account or other credit
      items don’t exist. 

    

    13.04
      If
      a case concerning the money that our company owes to your bank goes for your
      bank, and the currency specified in the paper of judgment (judgment currency)
      is
      different from the currency type of the money that our company owes to your
      bank
      (account currency), our company shall compensate your bank for losses resulting
      from the difference between (a) the
      exchange rate at which that the account currency is converted into the judgment
      currency and (b) the exchange rate at which that your bank purchases the account
      currency with the judgment currency after your bank has received all or part
      of
      the money. If allowed by the law, debts that our company owes to your bank
      shall
      be regarded as failing to be paid before all the money that our company owes
      to
      your hank has been actually converted into the type of currency in the account.
      

    

    13.05
      Certificates issued by any of the senior employees of your bank that are related
      to the money that our company owes to your bank and liabilities shall be
      regarded as the final confirmation, provided that they have no apparent
      mistakes. No matter whether the request is filed or not, your bank can enter
      any
      sum of money that our company has the responsibility to pay your bank into
      the
      debit side of the account of our company. 

    

    14.
      Expenditures 

    14.01
      Our
      company shall compensate your bank for any losses resulting from claims for
      compensation, claims, legal actions, damage compensations, expenses, losses,
      expenditures and other sums of money concerning loans or other services that
      your bank offers to our company. In addition, our company will pay your bank
      all
      possible expenditures concerning the above mentioned events when your bank
      asks
      our company to do so. In case of legal actions, our company will appear in
      court
      and argue in defense of your bank, and bear all possible expenditures incurred.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    14.02
      At
      the request of your bank, our company shall pay your bank the following items
      of
      money, and/or your bank has the right to enter them into the debit side of
      our
      account: commissions and other service charges (no matter whether your bank
      has
      notified our company in advance or not), and other expenses, charges and
      expenditures incurred in acts that your bank conducted for determining,
      preparing, exercising or maintaining bank loans between your bank and our
      company, and all rights under this agreement or any of the other agreements,
      including (but not limited to) expenses and expenditures for hiring legal
      advisors. 

    

    15.
      The letter of Authority 

    We
      assign, irrevocably and through pledging, your bank as the agent of our company
      to, in name of or on behalf of our company, sign, seal, pay or conduct all
      the
      contracts, documents, actions and events that are necessary or your bank
      believes to be necessary, or perform obligations of our company under this
      agreement, or conduct the selling and disposal of goods for our company, and
      transfer all rights and interests of this agreement and rights and interests
      concerning pledges under this agreement to your bank. Our company hereby
      approves and agrees that the above mentioned agent may lawfully sign any
      contract or document, or take related measures and actions. 

    

    16.
      Rights of counterbalance and lien

    16.01
      Provided that there are no influences on the rights of lien and counterbalance
      or other rights that your bank may possess, your bank has the right to be
      empowered, within the scope allowed by the law, to withdraw, without notifying
      our company or other persons in advance, any credit balance from any of our
      company’s accounts in People’s Republic of China or other regions or from
      accounts of other entities owned by our company in People’s Republic of China or
      other regions to offset our company’s liabilities under this agreement to your
      bank or obligations and responsibilities under other agreements of our company
      to your bank. Your bank is empowered to convert any credit balance on such
      accounts into equivalent sums of money in the corresponding currency.

    

    16.02
      Your bank is empowered to dispose the credit balance related to attached
      organizations and associated companies of our company, and to take all necessary
      measures. 

    

    16.03
      If
      allowed by the law, your bank has the right of lien concerning all the
      possessions that will be under the trusteeship and custody of your bank at
      present or in the future. 

    

    17.
      Other Provisions 

    17.01
      This agreement is a continuing agreement; Pledges under this agreement shall
      be
      continuing pledges; All rights, power and compensation methods under this
      agreement will be applicable to our company’s obligations and responsibilities
      to your bank in the past, at present and in the future. The above mentioned
      pledges will not affect pledges concerning such obligations and responsibilities
      that may be held by your bank at present or in the future. 

    

    17.02
      At
      the request of your bank, our company shall immediately carry out, sign, make
      or
      perform all other guarantees, documents, actions or events necessary for
      validating legally this agreement or the ownership of the securities formed
      or
      planned to be formed in this agreement, including (but not limited to) the
      registration at the relevant authority concerning the security interests before
      the time limit specified by the law (our company will bear all expenses
      incurred). 

    

    17.03
      Your bank doesn’t exercise at present or delays the exercise of any right, power
      or remedying method. A single or partial exercise of the right, power or
      remedying method shall not influence adversely another exercise of that right,
      power or remedying method. The trading habit between our company and your bank
      under one or several conditions or any waiver shall be not regarded as a waiver
      under any other conditions. Each right, power and remedying method of your
      bank
      will continue to be valid, until such right, power, or remedying method is
      amended or waived by your bank in written form. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    17.04
      If
      some clauses in this agreement become invalid in a country or region, the
      validity of other clauses in this agreement in such country or region will
      not
      be affected. If the law of People’s Republic of China prohibits any exclusion or
      limitation of the liability, any clause in this agreement shall not exclude
      or
      limit any liability. 

    

    17.05
      According to this agreement, no one shall add more obligations to your bank
      and
      make your bank provide, at the request of our company, our company, or other
      persons, firms or companies with loans or other services. Your bank may
      terminate or suspend such services without further notice. 

    

    17.06
      Your bank may at discretion decide to amend, delete or replace any clause in
      this agreement or add new clauses to this agreement, but your bank shall send
      a
      written notice to our company in advance. Such amendment, replacement, addition
      or deletion will become valid unless your bank receives the written notice
      from
      our company within ten days after your bank sends out the written notice.

    

    17.07
      Although mergence or combination may lead to changes in articles of your bank,
      or your successors and assignees, this agreement is applicable to interests
      of
      your bank and any of your successors and assignees. Your bank has the right
      to
      transfer all rights and interests under this agreement and any transaction
      concerning this agreement, and all goods and documents as pledges or other
      possessions, so that all rights and interests concerning the above mentioned
      items that are owned previously by your bank will be owned by the assignee.
      Your
      bank’s obligations or responsibilities concerning the transferred goods,
      documents and other possessions (except those items that have not been
      transferred yet) shall be released and waived.

    

    17.08
      Our
      company promises to, at the reasonable request of your bank, hand over financial
      statements or other materials concerning businesses of our company, our attached
      companies and associated companies, and any other persons that offer pledges
      to
      your bank for the purposes of our obligations to your bank (no matter whether
      they are related to this agreement), which have been audited by auditors and
      can
      meet the requirements of your bank. In addition, our company promises to inform
      your bank of any changes in our company’s business scope, and characteristics,
      business scope or nature of our attached or associated companies. 

    

    17.09
      Your bank is empowered to disclose any information about our company to the
      following: (1) potential assignees of your bank’s rights concerning our company
      or any persons who will share such rights; (2) attached companies of your bank;
      (3) companies whose shares are controlled by your bank; (4) attached companies
      of companies whose shares are controlled by your bank; or (5) relevant
      administrative or executive organs in accordance with the law or relevant
      regulations. 

    

    17.10
      Our
      company agrees to obtain all necessary governmental approvals, including
      approvals from the State Administration of Exchange Control and its branches.
      

    

    18.
      Notice 

    It
      is
      specified that if a notice sent by your bank to our company
      bears the above address or the address that appears in our latest notice to
      your
      bank or the address that your bank’s records show to be the latest address of
      our company learned by your bank, such a notice shall be regarded as having
      been
      delivered. A notice that is sent by hand shall be regarded as having been
      delivered. A notice that is sent by means of postage advancement shall be
      regarded as having been delivered at the time of posting. A notice that is
      sent
      by telefax with answer back code or fax shall be regarded as having been
      delivered at the time that the notice is sent out. 

    

    19.
      Interpretation 

    19.01
      Terms and conditions in this agreement are just listed in the articles and
      paragraphs thereof for the sake of convenience. Where the context allows or
      requires, terms and conditions in any article or paragraph are also applicable
      to transactions under other articles or paragraphs. Titles are just for
      reference and have no legal binding force. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    19.02
      Except so far as the context otherwise requires, if the following signers are
      sole traders, “our company” in this agreement will include sole traders and
      their business successors; if the following signers are partner enterprises,
      “our company” in this agreement will include our partner enterprises within the
      period of this agreement, and partners, would-be partners or successors of
      such
      enterprises. No matter what changes have happened to articles of our company
      or
      successors of our company, this agreement will be binding upon our company
      and
      our successors. In addition, this agreement will not be terminated or affected
      by the death or retirement of any party of this agreement or changes to the
      organization of the above traders or firms. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Counter-guarantee
      Agreement

     

    To:
      LOTUS WORLDWIDE LIMITED

     

    1.
      Whereas
      LOTUS WORLDWIDE LIMITED (hereinafter the “guarantor”, including its successor
      and transferee)
      is
      requested by me/this company to issue the guaranty(this guaranty should include
      its frequent alteration, addition and postponement) in
      behalf
      of First Sino Bank (the loaner) to
      guarantee the liabilities undertaken by Kid
      Castle Educational Software Development Company Limited
      in the
      loan contract signed with the loaner on              
      .
      This
      company, Kid
      Castle Internet Technologies Limited,
      hereby
      agrees and promises irrevocably without any condition as follows:

     

    1.1
      To
      pay the all the unpaid mature funds and liabilities confirmed by the guarantor,
      all the funds and liabilities paid or undertaken by the guarantor or all the
      funds and liabilities that guarantor should undertake according to the guaranty
      fully once requested by the guarantor; and

     

    1.2
      To
      pay or compensate the guarantor all claims, orders, lawsuits, liabilities,
      damage compensations, losses, expenses or other funds possibly incurred,
      undertaken or paid by the guarantor with cash fully once requested by the
      guarantor, no matter whether the compensation is directly or indirectly resulted
      from or related with the guaranty or the performance and abidance of guarantor
      to the obligations or liabilities in the guaranty.

     

    2.
      This
      company irrevocably authorizes and designates the guarantor to pay the payables
      claimed or ordered to pay or the payables deemed by guarantor to be paid at
      any
      moment according to the guaranty (even if the guarantor does not require to
      obtain the further evidences that the fund is mature or should be undertaken
      by
      the guarantor).
      This
      kind of payment does not need the awareness or consent of this company; in
      addition, the guarantor also has no obligation to inquire whether the claim
      or
      order put forward to it is proper, even if this company may have dispute to
      its
      validity. Due to the objective of this counter-guarantee agreement, this company
      hereby agrees that the payment made according to the guaranty or related with
      the guaranty composes of the conclusive evidence for the payment liability
      of
      guarantor. Moreover, the obligations of this company in the counter-guarantee
      agreement won’t be affected or restricted owing to the lack of precision or
      sufficiency of this claim or order.

     

    3.
      The
      obligations of this company in the counter-guarantee agreement is absolute
      and
      unconditional, unless indicated as the above articles, it won’t be affected or
      cancelled due to the following situations:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.1
      The
      extension in time or other aspects that the guarantor provides for this company
      or the loaner provides for the guarantor, this company or any other person;
      or

     

    3.2
      The
      legal restriction, disability, bankruptcy, liquidation of the loaner, this
      company or any other person, or the structure or status alteration of the
      loaner, this company or any other person; or

     

    3.3
      The
      alteration or modification of guaranty or other documents; or

     

    3.4
      The
      loaner or any other person gives up, alter or cancel any other guarantee or
      compensation, or the guarantee or right relative to the obligations of this
      company in the counter-guarantee agreement held or to be held by any person,
      or
      this kind of guarantee, compensation or right has flaw or is invalid;
      or

     

    3.5
      Any
      account liquidation or other fact or situation that may affect or cancel the
      obligations of this company in this agreement, except that the guarantor and
      this company conclude the written agreement definitely to cancel or alter this
      counter-guarantee agreement, in this case, the relevant cancellation and
      alteration should be limited to the scope regulated definitely in that written
      agreement.

     

    4.
      This
      counter-guarantee agreement is added and independent to, and should not be
      affected and restricted to any mortgage or other guarantee made for the
      compensation according to this counter-guarantee agreement held or to be held
      by
      the guarantor, or this mortgage, other guarantee, the relevant action taken
      or
      declared to be taken by the guarantor, the lien enjoyed by the guarantor, or
      the
      cancellation or invalidity of full or part obligations and liabilities of the
      third party other than the parties of this agreement to this
      company.

     

    5.
      This
      company promises to the guarantor that it will take measures and sign the
      instruction and document to ensure all the interests of guarantor in this
      counter-guarantee agreement and improve and maintain the rights and powers
      of
      guarantor in this counter-guarantee agreement according to the requirement
      of
      guarantor at any moment.

     

    6.
      Any
      settlement or cancellation of the obligations of company in this
      counter-guarantee agreement made by the guarantor and this company should be
      based on the following conditions: the guarantee or payment of guarantor won’t
      be cancelled or deduced due to the effective bankruptcy or liquidation laws
      of
      the time for this company or any other person. The guarantor is entitled to
      be
      compensated subsequently for the value or fund of this guarantee or payment
      from
      this company, as if the settlement or cancellation has never
      occurred.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    7.
      The
      fund
      collected according to this counter-guarantee agreement or relevant
      counter-guarantee agreement can be debited in the temporary account to ensure
      that the guarantor realizes the right of action to this company due to the
      possible bankruptcy, liquidation or recombination.

     

    8.
      The
      account record of fund payable of this company confirmed by any director of
      guarantor according to this counter-guarantee agreement should be regarded
      as
      the conclusive evidence of due fund payable of this company for the sake of
      the
      objective of this counter-guarantee agreement, while the record with obvious
      error is exclusive.

     

    9.
      If the
      guarantor collects the fund shortly before this company losses the reimbursement
      capacity, enters into the liquidation or bankruptcy procedure in order to avoid
      the application of laws related with the bankruptcy and liquidation, this
      payment should not cancel or reduce the liabilities of this company, and this
      counter-guarantee agreement should continue to be valid and performed, as if
      this fund has not been paid.

     

    10.
      This
      company should pay the interest based on the fund or compensation claimed in
      this counter-guarantee agreement to the guarantor according to its requirement
      at any moment, the interest rate is determined by the guarantor at any moment,
      and the interest period is from the day when the relevant liabilities or funds
      are paid to the day when the guarantor has collected the fund fully (no matter
      before the sentence or after the sentence).
      The
      interest should be calculated day by day on the base of 365 days per year,
      and
      the actual days will be calculated.

     

    11.
      If this
      company is composed of several persons, the stipulation, obligation and
      liability of this company in this counter-guarantee agreement should have the
      joint force, all appellations to this company should be regarded as the
      appellations to each or any person of this kind.

     

    12.
      All the
      funds payable of this company in the counter-guarantee agreement should be
      paid
      to the guarantor fully with USD, any counteraction or deduction should not
      exist, and any tax should not be deducted or accrued with the permission of
      law.
      If this company should deduct or accrue from the fund payable to the guarantor
      according to the regulations of law:

     

    12.1
      This
      company guarantees this deduction or accruement does not exceed the minimum
      amount required by the law and it will pay the deducted or accrued amount fully
      to the relevant taxation authority or other governmental authority, including
      the amount that has been deducted or accrued from the total amount according
      to
      the relevant laws and regulations to ensure that the guarantor can receive
      the
      leaving fund stated in article 12.2;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    12.2
      This
      company should pay the leaving fund to the guarantor when making the deduction
      or accruement to ensure that the guarantor can receive all the relevant funds
      fully, as if this deduction or accruement does not exist; and

     

    12.3
      This
      company should provide the copy of official receipt or other certificate
      document for this kind of deduction or accruement and it paying tax to the
      relevant taxation authority or other governmental authority immediately as
      requested by the guarantor at any moment.

     

    13.
      This
      company presents and guarantees to the guarantor as follows:

     

    13.1
      This
      company (if it is a company) is
      established and preserved effectively according to the governing laws and
      regulations of the establishment place of the company, and it is completely
      qualified to engage in the business in that governing area and other areas
      where
      this company has business; if this qualification is not possessed in the
      above-mentioned governing area, it will bring virtual negative influence to
      the
      business of this company, and this company also has full power(of the company
      and others) and
      legal
      right to own the assets and engage in the business.

     

    13.2
      This
      company also has full power (of the company and others) and
      legal
      right to sign and perform all its obligations in this counter-guarantee
      agreement with the full authorization of the company and other
      behaviors.

     

    13.3
      This
      counter-guarantee agreement composes of the legal, valid and promissory
      obligations of this company, and the contents of this agreement is
      performable.

     

    13.4
      This
      company signs the counter-guarantee agreement and performs and abides by the
      obligations in this agreement:

     

    13.4.1
      It
      has not and won’t breach or violate any law, regulation, order, authorization,
      license, agreement, promise, instruction, obligation or liability applicable
      to
      or restricting or affecting this company or its assets or revenue, nor the
      agreement is breached due to the notice and/or expiration and/or the
      satisfaction of other conditions;

     

    13.4.2
      It
      has not and won’t restrict this company (no matter due to the regulations about
      issuing guaranty in the company memorandum, other organization documents and
      company manual or any law, regulation, order, agreement, instruction or others)
      or
      its
      board of directors to implement the power, nor it has the restrictions
      influencing this company excessively;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    13.4.3
      It
      has not and won’t induce or compel this company to set mortgage and pledge on
      all or part assets or revenues owned by it or to be owned by it;
      and

     

    13.5
      This
      company has obtained all the authorizations necessary or related to the
      signature, delivery, performance, validity and feasibility of this
      counter-guarantee agreement from the governmental authority, loaner or the
      shareholders of the company (if it is a company),
      and the
      authorizations will maintain complete effectiveness.

     

    14.
      This
      company promises to the guarantor if only this company bears the obligations
      or
      liabilities (no matter they are actual, coming or contingent) to
      the
      guarantor according to the counter-guarantee agreement, unless the guarantor
      agrees definitely in written separately, this company will:

     

    14.1
      maintain the company form and management activity substantively according with
      all the applicable and restrictive laws, regulations, orders, authorizations,
      licenses, agreements, promises, instructions, obligations and
      liabilities;

     

    14.2
      pay
      or receive the expired tax payable based on the assets revenue, income or profit
      of this company; pay or receive all kinds of legal claim to avoid the possible
      lawsuit related to the assets revenue, income and profit due to this payment
      or
      receiving action, it should be reimbursed prior to other liabilities, while
      the
      public reserve fund and reserve drawn according to the commonly accepted
      accounting principles and rules, whose validity has well-meaning dispute and
      is
      in the proper procedure, is except;

     

    14.3
      guarantee the obligations of this company in the counter-guarantee agreement,
      no
      matter it is actual, coming or contingent, should not be less than or at least
      equivalent to any other actual, coming or contingent obligation of this company
      in payment and other aspects; guarantee the obligations of this company in
      the
      counter-guarantee agreement are direct, unconditional, irrevocable and usual,
      unless otherwise indicated in the company law of the establishment place of
      this
      company.

     

    15.
      If this
      company (1) breaches
      its obligations in this agreement, or (2) the
      presentation and guarantee in the above-mentioned article 13 is incorrect or
      misleading when hereafter cited according to the actual condition, this company
      should (if requested by the guarantor) provide
      the cash guarantee immediately and deposit the cash into the account specified
      by the guarantor according to the requirement of guarantor to guarantee the
      liabilities or contingent liabilities of guarantor in the guaranty. Besides
      the
      above-mentioned, general, or bank special lien, counteraction right or other
      rights, the guarantor should be also entitled to deduct or withhold the account
      deposit (no matter whether it is informed, expired or which currency it is)
      of
      this
      company in the guarantor with the maximum authorization of any applicable law,
      or take actions to other creditor’s rights of this company to the guarantor to
      counteract the liabilities of this company in the counter-guarantee agreement,
      and the above-mentioned actions need not inform the company or any other person;
      the guarantor is hereby authorized to purchase other kinds of currencies with
      the deposit in this account due to the above-mentioned objective.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    16.
      This
      company should compensate the guarantor all the costs, governmental expense
      and
      other expenses(including but not limited to all the fully compensated legal
      expense and other expenses) due
      to
      the preparation and signature of this counter-guarantee agreement, the
      implementation of power or right, the lawsuit or other manner is adopted to
      receive the fund payable stated in this counter-guarantee agreement, the
      implementation or attempt to implement the right of guarantor in this agreement,
      the deraignment of the lawsuit related with this agreement in which the
      guarantor is the defender or the cancellation of this agreement after canceling
      the guaranty completely once requested at any moment, and all the funds that
      is
      paid by the guarantor but should be undertaken by this company according to
      this
      agreement.

     

    17.
      Even
      if
      the authorized signer in this counter-guarantee agreement or the member
      restricted by this agreement has not signed this agreement or bound by it due
      to
      any reason, or this counter-guarantee agreement losses or is to loss the
      feasibility for the above-mentioned members, each member of this company agrees
      to be bound by this counter-guarantee agreement.

     

    18.
      The
      guarantor is entitled to cancel the liabilities of one or numerous members
      in
      this counter-guarantee agreement, or alter or modify the obligations of one
      or
      numerous members of this company, or provide the extension in time limit or
      make
      the other arrangement, and the above-mentioned behavior of guarantor won’t
      affect or cancel it right to any member of this company.

     

    19.
      This
      company and its successor is bound by the counter-guarantee agreement, which
      is
      also applicable for the interest of guarantor’s successor or transferee. This
      counter-guarantee agreement and any other guarantee stated or related in this
      agreement can only be transferred by the guarantor.

     

    20.
      Even if
      the guarantor has not performed its right, power, privilege, independent right
      in this agreement, or there is the negligence or delay when the guarantor is
      performing the above-mentioned right or power, or the guarantor has the
      transaction with this company, the above-mentioned right, power, privilege
      or
      independent right won’t be affected or regarded as waiver, and the separate or
      part performance of any right, power, privilege or independent right won’t
      deprive the further performance of right or power or the performance of
      guarantor to any other right, power, privilege or independent right. The right,
      power, privilege or independent right of guarantor in this counter-guarantee
      agreement is accumulative, and other right, power, privilege or independent
      right regulated by the law will not be deprived, either.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    21.
      The
      notice or request issued according to this agreement should be written, and
      delivered to this company according to the address or telex or fax number stated
      in the later paragraph of this counter-guarantee agreement (unless this company
      tells other address or telex or fax number definitely 5 days in
      advance).
      The
      notice or request sent to this company in the following manner should be
      regarded as having been delivered: (1) if
      the
      telex is adopted, the confirmation reply received when sending will be referred;
      (2) if
      the
      fax is adopted, the electronic signal when sending or other confirmation will
      be
      referred; (3) if
      the
      mail is adopted, the date leaving the mail at the address is referred when
      sending in person, two (2) days
      after posting the mail is referred when mailing to the domestic address, while
      ten (10) days
      after posting the mail is referred when mailing to the foreign
      address.

     

    22.
      If any
      article in this counter-guarantee agreement is illegal, invalid or infeasible
      according to the governing law, the legality, validity and feasibility of other
      articles in the counter-guarantee agreement and the governing law won’t be
      affected or damaged.

     

    23.
      The
      rights and obligations of the parties in this counter-guarantee agreement and
      their interpretation is applicable for the laws of Hong Kong, while this does
      not damage or restrict any other right or relief of the guarantor according
      to
      the law of where this company or its property is located.

     

    24.
      The
      guarantor and this company irrevocably agree this counter-guarantee agreement,
      the document or instruction regulated in this agreement or the legal action
      or
      judicial procedure resulted from the above-mentioned agreement, document or
      instruction can be submitted to the court of Hong Kong, and the guarantor and
      this company usually obey the non-exclusive jurisdiction of the legal action
      or
      judicial procedure related with themselves and their properties (no matter
      whether in the accounts of themselves) irrevocably
      without any condition.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    25.
      This
      company irrevocably delegates the person listed in the later paragraph of this
      counter-guarantee agreement as the agent to receive and confirm the delivery
      of
      statute, subpoena, order, adjudication or the judicial procedure processed
      in
      Hong Kong on behalf of this company. If the above-mentioned agent (or its
      successor) does
      not
      act as the agent of this company any more due to any reason, the company should
      delegate the new agent and inform the former agent immediately. This company
      agrees that it will be regarded as having been delivered when the relevant
      juridical document is sent to the address of that agent in Hong Kong, no matter
      whether the agent has informed this company.

     

    26.
      This
      counter-guarantee agreement should not restrict the guarantor to lodge the
      lawsuit or judicial procedure on this company and/or its properties in one
      or
      several other governing areas, and the above-mentioned measures taken by the
      guarantor won’t deprive the right of guarantor to lodge the lawsuit procedure in
      other governing area synchronously or asynchronously.

     

    27.
      This
      counter-guarantee agreement is and continues to be the property of guarantor,
      even if the claim of the guarantor resulted from this agreement has been
      compensated fully.

     

    
      	 	 

    

    Signature
      Date:                                                                                                                                                           

                                                                  

     

    Signature
      and Seal:                    
                                          
Kid Castle Internet Technologies Limited Min-Tan
      Yang                                                    

     

    Contact
      Address of This Company:                                                                                                                                                       

                                   

    (Article
      21 of This Agreement)

     

    Fax:
      ____________________________________________________________________________________________________ 

     

    Telex: 
      __________________________________________________________________________________________________ 

     

    Tel:  
      ___________________________________________________________________________________________________
       

     

    G/F
      New
      Shanghai International Building, 360 Pu Dong South Road, Shanghai 200120, P.
      R.
      C

    Tel:
      (021)
      58881234
      Fax: (021) 58409292

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Application
      for Determining the Right of Pledge Concerning Time
      Deposit

    

    To:
      Bank
      SinoPac     branch banks/sub
      departments 

     

    Major
      Idea: Determining the right of pledge for the time deposit certificate listed
      below. Thanks for your attention. 

    Explanations:
      

     

    1.
      The
      depositor Kid
      Castle Internet Technologies Limited
      offers
      the following time deposit certificate opened by your bank to the pledgee
      _____________________ as a pledge so as to secure the creditor’s rights. Please
      check the time deposit certificate carried by the following detailed list of
      goods, and, after recording relevant information, hand over the time deposit
      certificate to the pledgee. Without the written notice from the pledge, the
      registration concerning the right of pledge shall not be rescinded. Please
      handle these affairs according to our requirements. Hope for a reply.

    

    2.
      The
      depositor acknowledges that: we empower the pledgee to apply to your bank for
      rescission concerning the time deposit certificate listed below, except for
      time
      deposit certificates that cannot be withdrawn by means of direct debiting in
      accordance with regulations of your bank, so as to exercise the right of pledge
      of the pledgee. Your bank may pay the pledgee a sum of money on the basis of
      the
      amount carried in the “notice of exercising the right of pledge” (or the paper
      of the evaluation of the damaging range). Your bank need not conduct substantive
      verification of such creditor’s rights, and the depositor will by no means file
      any opposition. 

    

    3.
      The
      pledgee agrees that the depositor will later handle automatic extension for
      the
      following goods at your bank. 

    

    4.
      The
      pledgee shall handle the exercise or rescission of the right of pledge at your
      bank by using “notice of exercising the right of pledge” or “notice of
      rescinding the right of pledge” made by your bank. 

    

    To:
      

    Bank
      SinoPac Company Limited

    

    Pledger
      (depositor): Kid Castle Internet Technologies Limited

    Address:
      F8, No.98 Minchuan RD, Hsintien City

    

    Debitor:    
(sign
      and
      seal)

    Address:

    

    Pledgee:
      

    Address:
      

    Telephone:
      

    
      	
              Action
                by 

            	
              Director
                

            
	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      detailed list of goods: □ the certificate of deposit with the real body □ the
      certificate of deposit without the real body (Registration No.: Y  M 
D  Zi No.) 

     

    
      	
              Type
                of the Certificate of Deposit 

            	
              Account
                Number of the Certificate of Deposit 

            	
              Depositing
                Date 

            	
              Maturity
                Date 

            	
              Amount
                of the Certificate of Deposit 

            
	
              Time
                deposit 

            	
              122-040-0004651-9

            	
              2007.4.19

            	
              2007.10.19

            	
              310,000
                US dollars 

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

     

    The
      above
      certificate of deposit concerning the right of pledge bears interest, and both
      parties have mutually agreed through consultation that the pledger may draw
      the
      interest from your bank. 

    

    Pledgee:

    Pledger:

    

    Date:
      

    CST-002
      2006.11 N.0000

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Bank
      Replay

    

    To:
      

    Pledgee:
      Lotus Worldwide Limited 

    Depositor:
      Kid Castle Internet Technologies Limited

    

    Major
      Idea: Explain affairs concerning the determination of the right of pledge.
      Thanks for your attention. 

    

    Explanations:

    1.
      We are
      pleased to acknowledge the receipt of the Notice of Determination of the Right
      of Pledge on May 17, 2007. 

    

    2.
      Our
      bank has completed the registration of the right of pledge concerning the
      certificate of deposit carried in the detailed list of goods (Registration
      No.:
      2007-5-17 ____ Zi No. 0006). When the pledgee wants to exercise or rescind
      the
      right of pledge, the pledgee shall send “notice of exercising the right of
      pledge” or “notice of rescinding the right of pledge” and the certificate of
      deposit to our bank. Otherwise, our bank will not accept the application.

    

    3.
      Before
      the right of pledge is rescinded, it has no the right of offset against the
      creditor’s rights of deposits of the subject matter of the right of pledge.

     

    Bank
      SinoPac Company Limited 

    

    The
      Detailed List of Goods: 

    
      	
              Type
                of the Certificate of Deposit 

            	
              Account
                Number of the Certificate of Deposit 

            	
              Depositing
                Date 

            	
              Maturity
                Date 

            	
              Interest
                Rate 

            	
              Amount
                of the principal in the Certificate of Deposit 

            
	
              Foreign
                currency time deposit 

            	
              122-040-0004651-9

            	
              2007.4.19

            	
              2007.10.19

            	
              4.75%

            	
              310,000
                US dollars 

            
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

    

    Date:
      

    CST-002
      2006.11 N.0000

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Kid
      Castle Internet Technologies Limited

    Minutes
      of the ______ Board Meeting       Edition No.:
      ______

    

    Completed
      by the company: 

    Date:
      

    Address:
      the meeting room of the Company

    [Company
      address: F8, No.98 Minchuan RD, Hsintien City, Taipei County]

    Attendants:
      Suang-Yi Pai, Min-Tan Yang, Shih-Shun Shiu

    Observers:
      

    Chairperson:
      

    Recorded
      by: 

    

    Cause:

    Due
      to
      the investment project of ____________________ , our company decides to ask
      from
      Bank SinoPac for a loan amounting to __________ dollars. It is planned that
      our
      company will offer securities to Lotus Worldwide Limited, which will open the
      Letter of Guarantee to Bank SinoPac to secure this loan. 

    

    Explanation:

    Due
      to
      the indirect investment of our company into Mainland China, our company needs
      to
      obtain from Mainland Chinese financial organizations bank credits and
      guarantees. And therefore, our company shall provide Lotus Worldwide Limited
      with securities so that this company will open and offer the Letter of Guarantee
      to Bank SinoPac to secure the loan. 

    

    Decisions:

    The
      motion was adopted. The application under this guarantee complies with articles
      and operating procedures of our company, including the operating methods
      concerning the endorsement in security of our company. The following person
      has
      been given the full authority to deal with all related affairs. 

     
      
        	Authorizee	Post of the authorizee 	Sample of the signature 
	Min-Tan Yang	Board member	Min-Tan Yang 

      

    

    

    Our
      company guarantees that the content of the above resolutions is real.

    

    Without
      other motions, the chairperson announced that this meeting was over.

    

    Board
      members who are present and show agreement (signature): 

    
      
        	Suang-Yi Pai 	Min-Tan Yang	 
	Shih-Shun Shiu	Chin-Chen Huang	 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Sign-off
      Sheet 

    
      	
              Suang-Yi
                Pai 

            
	
              Min-Tan
                Yang

            
	
              Shih-Shun
                Shiu

            
	
              Chin-Chen
                Huang

            
	 
	 

    

    

    Company’s
      seal: 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Counter-guarantee
      Agreement

     

    To:
      LOTUS WORLDWIDE LIMITED

     

    1.
      Whereas
      LOTUS WORLDWIDE LIMITED (hereinafter the “guarantor”, including its successor
      and transferee) is
      requested by me/this company to issue the guaranty (this guaranty should include
      its frequent alteration, addition and postponement) in
      behalf
      of First Sino Bank (the loaner) to
      guarantee the liabilities undertaken by Kid
      Castle Educational Software Development Company Limited
      in the
      loan contract signed with the loaner on        
      .
      I,
Min-Tan
      Yang,
      hereby
      agrees and promises irrevocably without any condition as follows:

     

    1.1
      To
      pay the all the unpaid mature funds and liabilities confirmed by the guarantor,
      all the funds and liabilities paid or undertaken by the guarantor or all the
      funds and liabilities that guarantor should undertake according to the guaranty
      fully once requested by the guarantor; and

     

    1.2
      To
      pay or compensate the guarantor all claims, orders, lawsuits, liabilities,
      damage compensations, losses, expenses or other funds possibly incurred,
      undertaken or paid by the guarantor with cash fully once requested by the
      guarantor, no matter whether the compensation is directly or indirectly resulted
      from or related with the guaranty or the performance and abidance of guarantor
      to the obligations or liabilities in the guaranty.

     

    2.
      This
      company irrevocably authorizes and designates the guarantor to pay the payables
      claimed or ordered to pay or the payables deemed by guarantor to be paid at
      any
      moment according to the guaranty (even if the guarantor does not require to
      obtain the further evidences that the fund is mature or should be undertaken
      by
      the guarantor).
      This
      kind of payment does not need the awareness or consent of this company; in
      addition, the guarantor also has no obligation to inquire whether the claim
      or
      order put forward to it is proper, even if this company may have dispute to
      its
      validity. Due to the objective of this counter-guarantee agreement, this company
      hereby agrees that the payment made according to the guaranty or related with
      the guaranty composes of the conclusive evidence for the payment liability
      of
      guarantor. Moreover, the obligations of this company in the counter-guarantee
      agreement won’t be affected or restricted owing to the lack of precision or
      sufficiency of this claim or order.

     

    3.
      The
      obligations of this company in the counter-guarantee agreement is absolute
      and
      unconditional, unless indicated as the above articles, it won’t be affected or
      cancelled due to the following situations:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.1
      The
      extension in time or other aspects that the guarantor provides for this company
      or the loaner provides for the guarantor, this company or any other person;
      or

     

    3.2
      The
      legal restriction, disability, bankruptcy, liquidation of the loaner, this
      company or any other person, or the structure or status alteration of the
      loaner, this company or any other person; or

     

    3.3
      The
      alteration or modification of guaranty or other documents; or

     

    3.4
      The
      loaner or any other person gives up, alter or cancel any other guarantee or
      compensation, or the guarantee or right relative to the obligations of this
      company in the counter-guarantee agreement held or to be held by any person,
      or
      this kind of guarantee, compensation or right has flaw or is invalid;
      or

     

    3.5
      Any
      account liquidation or other fact or situation that may affect or cancel the
      obligations of this company in this agreement, except that the guarantor and
      this company conclude the written agreement definitely to cancel or alter this
      counter-guarantee agreement, in this case, the relevant cancellation and
      alteration should be limited to the scope regulated definitely in that written
      agreement.

     

    4.
      This
      counter-guarantee agreement is added and independent to, and should not be
      affected and restricted to any mortgage or other guarantee made for the
      compensation according to this counter-guarantee agreement held or to be held
      by
      the guarantor, or this mortgage, other guarantee, the relevant action taken
      or
      declared to be taken by the guarantor, the lien enjoyed by the guarantor, or
      the
      cancellation or invalidity of full or part obligations and liabilities of the
      third party other than the parties of this agreement to this
      company.

     

    5.
      This
      company promises to the guarantor that it will take measures and sign the
      instruction and document to ensure all the interests of guarantor in this
      counter-guarantee agreement and improve and maintain the rights and powers
      of
      guarantor in this counter-guarantee agreement according to the requirement
      of
      guarantor at any moment.

     

    6.
      Any
      settlement or cancellation of the obligations of company in this
      counter-guarantee agreement made by the guarantor and this company should be
      based on the following conditions: the guarantee or payment of guarantor won’t
      be cancelled or deduced due to the effective bankruptcy or liquidation laws
      of
      the time for this company or any other person. The guarantor is entitled to
      be
      compensated subsequently for the value or fund of this guarantee or payment
      from
      this company, as if the settlement or cancellation has never
      occurred.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    7.
      The
      fund
      collected according to this counter-guarantee agreement or relevant
      counter-guarantee agreement can be debited in the temporary account to ensure
      that the guarantor realizes the right of action to this company due to the
      possible bankruptcy, liquidation or recombination.

     

    8.
      The
      account record of fund payable of this company confirmed by any director of
      guarantor according to this counter-guarantee agreement should be regarded
      as
      the conclusive evidence of due fund payable of this company for the sake of
      the
      objective of this counter-guarantee agreement, while the record with obvious
      error is exclusive.

     

    9.
      If the
      guarantor collects the fund shortly before this company losses the reimbursement
      capacity, enters into the liquidation or bankruptcy procedure in order to avoid
      the application of laws related with the bankruptcy and liquidation, this
      payment should not cancel or reduce the liabilities of this company, and this
      counter-guarantee agreement should continue to be valid and performed, as if
      this fund has not been paid.

     

    10.
      This
      company should pay the interest based on the fund or compensation claimed in
      this counter-guarantee agreement to the guarantor according to its requirement
      at any moment, the interest rate is determined by the guarantor at any moment,
      and the interest period is from the day when the relevant liabilities or funds
      are paid to the day when the guarantor has collected the fund fully (no matter
      before the sentence or after the sentence).
      The
      interest should be calculated day by day on the base of 365 days per year,
      and
      the actual days will be calculated.

     

    11.
      If this
      company is composed of several persons, the stipulation, obligation and
      liability of this company in this counter-guarantee agreement should have the
      joint force, all appellations to this company should be regarded as the
      appellations to each or any person of this kind.

     

    12.
      All the
      funds payable of this company in the counter-guarantee agreement should be
      paid
      to the guarantor fully with USD, any counteraction or deduction should not
      exist, and any tax should not be deducted or accrued with the permission of
      law.
      If this company should deduct or accrue from the fund payable to the guarantor
      according to the regulations of law:

     

    12.1
      This
      company guarantees this deduction or accruement does not exceed the minimum
      amount required by the law and it will pay the deducted or accrued amount fully
      to the relevant taxation authority or other governmental authority, including
      the amount that has been deducted or accrued from the total amount according
      to
      the relevant laws and regulations to ensure that the guarantor can receive
      the
      leaving fund stated in article 12.2;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    12.2
      This
      company should pay the leaving fund to the guarantor when making the deduction
      or accruement to ensure that the guarantor can receive all the relevant funds
      fully, as if this deduction or accruement does not exist; and

     

    12.3
      This
      company should provide the copy of official receipt or other certificate
      document for this kind of deduction or accruement and it paying tax to the
      relevant taxation authority or other governmental authority immediately as
      requested by the guarantor at any moment.

     

    13.
      This
      company presents and guarantees to the guarantor as follows:

     

    13.1
      This
      company (if it is a company) is
      established and preserved effectively according to the governing laws and
      regulations of the establishment place of the company, and it is completely
      qualified to engage in the business in that governing area and other areas
      where
      this company has business; if this qualification is not possessed in the
      above-mentioned governing area, it will bring virtual negative influence to
      the
      business of this company, and this company also has full power (of the company
      and others)
      and
      legal
      right to own the assets and engage in the business.

     

    13.2
      This
      company also has full power (of the company and others)
      and
      legal
      right to sign and perform all its obligations in this counter-guarantee
      agreement with the full authorization of the company and other
      behaviors.

     

    13.3
      This
      counter-guarantee agreement composes of the legal, valid and promissory
      obligations of this company, and the contents of this agreement is
      performable.

     

    13.4
      This
      company signs the counter-guarantee agreement and performs and abides by the
      obligations in this agreement:

     

    13.4.1
      It
      has not and won’t breach or violate any law, regulation, order, authorization,
      license, agreement, promise, instruction, obligation or liability applicable
      to
      or restricting or affecting this company or its assets or revenue, nor the
      agreement is breached due to the notice and/or expiration and/or the
      satisfaction of other conditions;

     

    13.4.2
      It
      has not and won’t restrict this company (no matter due to the regulations about
      issuing guaranty in the company memorandum, other organization documents and
      company manual or any law, regulation, order, agreement, instruction or others)
      or
      its
      board of directors to implement the power, nor it has the restrictions
      influencing this company excessively;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    13.4.3
      It
      has not and won’t induce or compel this company to set mortgage and pledge on
      all or part assets or revenues owned by it or to be owned by it;
      and

     

    13.5
      This
      company has obtained all the authorizations necessary or related to the
      signature, delivery, performance, validity and feasibility of this
      counter-guarantee agreement from the governmental authority, loaner or the
      shareholders of the company (if it is a company),
      and the
      authorizations will maintain complete effectiveness.

     

    14.
      This
      company promises to the guarantor if only this company bears the obligations
      or
      liabilities (no matter they are actual, coming or contingent)
      to
      the
      guarantor according to the counter-guarantee agreement, unless the guarantor
      agrees definitely in written separately, this company will:

     

    14.1
      maintain the company form and management activity substantively according with
      all the applicable and restrictive laws, regulations, orders, authorizations,
      licenses, agreements, promises, instructions, obligations and
      liabilities;

     

    14.2
      pay
      or receive the expired tax payable based on the assets revenue, income or profit
      of this company; pay or receive all kinds of legal claim to avoid the possible
      lawsuit related to the assets revenue, income and profit due to this payment
      or
      receiving action, it should be reimbursed prior to other liabilities, while
      the
      public reserve fund and reserve drawn according to the commonly accepted
      accounting principles and rules, whose validity has well-meaning dispute and
      is
      in the proper procedure, is except;

     

    14.3
      guarantee the obligations of this company in the counter-guarantee agreement,
      no
      matter it is actual, coming or contingent, should not be less than or at least
      equivalent to any other actual, coming or contingent obligation of this company
      in payment and other aspects; guarantee the obligations of this company in
      the
      counter-guarantee agreement are direct, unconditional, irrevocable and usual,
      unless otherwise indicated in the company law of the establishment place of
      this
      company.

     

    15.
      If this
      company (1) breaches
      its obligations in this agreement, or (2) the
      presentation and guarantee in the above-mentioned article 13 is incorrect or
      misleading when hereafter cited according to the actual condition, this company
      should (if requested by the guarantor)
      provide
      the cash guarantee immediately and deposit the cash into the account specified
      by the guarantor according to the requirement of guarantor to guarantee the
      liabilities or contingent liabilities of guarantor in the guaranty. Besides
      the
      above-mentioned, general, or bank special lien, counteraction right or other
      rights, the guarantor should be also entitled to deduct or withhold the account
      deposit (no matter whether it is informed, expired or which currency it
      is)
      of
      this
      company in the guarantor with the maximum authorization of any applicable law,
      or take actions to other creditor’s rights of this company to the guarantor to
      counteract the liabilities of this company in the counter-guarantee agreement,
      and the above-mentioned actions need not inform the company or any other person;
      the guarantor is hereby authorized to purchase other kinds of currencies with
      the deposit in this account due to the above-mentioned objective.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    16.
      This
      company should compensate the guarantor all the costs, governmental expense
      and
      other expenses (including but not limited to all the fully compensated legal
      expense and other expenses)
      due
      to
      the preparation and signature of this counter-guarantee agreement, the
      implementation of power or right, the lawsuit or other manner is adopted to
      receive the fund payable stated in this counter-guarantee agreement, the
      implementation or attempt to implement the right of guarantor in this agreement,
      the deraignment of the lawsuit related with this agreement in which the
      guarantor is the defender or the cancellation of this agreement after canceling
      the guaranty completely once requested at any moment, and all the funds that
      is
      paid by the guarantor but should be undertaken by this company according to
      this
      agreement.

     

    17.
      Even
      if
      the authorized signer in this counter-guarantee agreement or the member
      restricted by this agreement has not signed this agreement or bound by it due
      to
      any reason, or this counter-guarantee agreement losses or is to loss the
      feasibility for the above-mentioned members, each member of this company agrees
      to be bound by this counter-guarantee agreement.

     

    18.
      The
      guarantor is entitled to cancel the liabilities of one or numerous members
      in
      this counter-guarantee agreement, or alter or modify the obligations of one
      or
      numerous members of this company, or provide the extension in time limit or
      make
      the other arrangement, and the above-mentioned behavior of guarantor won’t
      affect or cancel it right to any member of this company.

     

    19.
      This
      company and its successor is bound by the counter-guarantee agreement, which
      is
      also applicable for the interest of guarantor’s successor or transferee. This
      counter-guarantee agreement and any other guarantee stated or related in this
      agreement can only be transferred by the guarantor.

     

    20.
      Even if
      the guarantor has not performed its right, power, privilege, independent right
      in this agreement, or there is the negligence or delay when the guarantor is
      performing the above-mentioned right or power, or the guarantor has the
      transaction with this company, the above-mentioned right, power, privilege
      or
      independent right won’t be affected or regarded as waiver, and the separate or
      part performance of any right, power, privilege or independent right won’t
      deprive the further performance of right or power or the performance of
      guarantor to any other right, power, privilege or independent right. The right,
      power, privilege or independent right of guarantor in this counter-guarantee
      agreement is accumulative, and other right, power, privilege or independent
      right regulated by the law will not be deprived, either.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    21.
      The
      notice or request issued according to this agreement should be written, and
      delivered to this company according to the address or telex or fax number stated
      in the later paragraph of this counter-guarantee agreement (unless this company
      tells other address or telex or fax number definitely 5 days in
      advance).
      The
      notice or request sent to this company in the following manner should be
      regarded as having been delivered: (1) if
      the
      telex is adopted, the confirmation reply received when sending will be referred;
      (2) if
      the
      fax is adopted, the electronic signal when sending or other confirmation will
      be
      referred; (3)
      if
      the
      mail is adopted, the date leaving the mail at the address is referred when
      sending in person, two (2) days
      after posting the mail is referred when mailing to the domestic address, while
      ten (10) days
      after posting the mail is referred when mailing to the foreign
      address.

     

    22.
      If any
      article in this counter-guarantee agreement is illegal, invalid or infeasible
      according to the governing law, the legality, validity and feasibility of other
      articles in the counter-guarantee agreement and the governing law won’t be
      affected or damaged.

     

    23.
      The
      rights and obligations of the parties in this counter-guarantee agreement and
      their interpretation is applicable for the laws of Hong Kong, while this does
      not damage or restrict any other right or relief of the guarantor according
      to
      the law of where this company or its property is located.

     

    24.
      The
      guarantor and this company irrevocably agree this counter-guarantee agreement,
      the document or instruction regulated in this agreement or the legal action
      or
      judicial procedure resulted from the above-mentioned agreement, document or
      instruction can be submitted to the court of Hong Kong, and the guarantor and
      this company usually obey the non-exclusive jurisdiction of the legal action
      or
      judicial procedure related with themselves and their properties (no matter
      whether in the accounts of themselves)
      irrevocably
      without any condition.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    25.
      This
      company irrevocably delegates the person listed in the later paragraph of this
      counter-guarantee agreement as the agent to receive and confirm the delivery
      of
      statute, subpoena, order, adjudication or the judicial procedure processed
      in
      Hong Kong on behalf of this company. If the above-mentioned agent (or its
      successor)
      does
      not
      act as the agent of this company any more due to any reason, the company should
      delegate the new agent and inform the former agent immediately. This company
      agrees that it will be regarded as having been delivered when the relevant
      juridical document is sent to the address of that agent in Hong Kong, no matter
      whether the agent has informed this company.

     

    26.
      This
      counter-guarantee agreement should not restrict the guarantor to lodge the
      lawsuit or judicial procedure on this company and/or its properties in one
      or
      several other governing areas, and the above-mentioned measures taken by the
      guarantor won’t deprive the right of guarantor to lodge the lawsuit procedure in
      other governing area synchronously or asynchronously.

     

    27.
      This
      counter-guarantee agreement is and continues to be the property of guarantor,
      even if the claim of the guarantor resulted from this agreement has been
      compensated fully.

     

    Signature
      Date:                                                                                                                                       
      

     

    Signature
      and Seal:              
                                   
     Min-Tan
      Yang                          
                          

     

    Contact
      Address of This Company:                                                                                                     
      

    (Article
      21 of This Agreement)

     

    Fax:
                                                                                                                                                                 

          

     

    Telex:
                                                                                                                                                                 

      

     

    Tel:

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