Document:

AMENDMENT
NO. 1 TO THE DEBT REPAYMENT AND SET-OFF AGREEMENT

    

    This
AMENDMENT NO. 1 TO THE DEBT REPAYMENT AND SET-OFF AGREEMENT (this “Amendment”),
is entered into on December 22, 2008, by and among (i) NIVS IntelliMedia
Technology Group, Inc., a Delaware corporation (“NIVS USA”), Niveous
Holding Company Limited, a British Virgin Islands corporation (“NIVS BVI”), NIVS (HZ)
Audio & Video Tech Company Limited (“NIVS PRC”), NIVS
International (H.K.) Limited (“NIVS HK”), and NIVS
(HZ) Audio & Video Tech Company Limited Shenzhen Branch (“NIVS Shenzhen”); (ii)
Tianfu Li, NIVS USA’s Chief Executive Officer and Chairman of the Board, an
individual residing in the People’s Republic of China (“PRC”) and holder of
PRC identity card no. 440106196907021831; and (iii) each of NIVS Investment (SZ)
Co., Ltd., Zhongkena Technology Development, Xentsan Technology (SZ) Co., Ltd.,
Korea Hyundai Light & Electric (Int’l) Holding, NIVS Information &
Technology (HZ) Co., Ltd., and Hyundai Light & Electric (HZ) Co., Ltd.
(collectively, the “Related
Companies”).  For purposes of this Amendment, all currency
amounts have been converted into US Dollars. NIVS USA, NIVS BVI, NIVS PRC, NIVS
HK, NIVS Shenzhen, Tianfu Li and the Related Companies are collectively referred
to herein as the “Parties.” Terms not
defined in this Amendment shall have such meanings as set forth in the Agreement
(as defined below).

     

    RECITALS

    

    WHEREAS,
the Parties entered into that certain Debt Repayment and Set-Off Agreement dated
and effective as of November 28, 2008 (the “Agreement”);

     

    WHEREAS,
the Parties desire to amend the Agreement by entering into this Amendment to
correct loan amounts referenced in the Agreement; and

     

    WHEREAS,
Section 3 of the Agreement states that the Parties shall execute and deliver
from time to time after the date of the Agreement, upon written request, all
such further documents and instruments and shall do and perform all such acts as
may be reasonably necessary to give full effect to the intent of the
Agreement.

     

    NOW,
THEREFORE, for good and valuable consideration and in consideration of the
respective representations, warranties, covenants and agreements set forth in
the Agreement and this Amendment, the Parties hereby agree to amend the
Agreement as follows:

     

    AGREEMENT

    

    1. The sixth
Recital of the Agreement is hereby amended and restated in its entirety as
follows:

    

    WHEREAS, as of the date of this
Agreement, the NIVS Group has outstanding loan amounts of US$8,838,159 owed to
Mr. Li (the “Li
Debt”), and Mr. Li, through the Related Companies, has an aggregate
outstanding loan amount of US$996,433 owed to the NIVS Group (the “Related Companies’
Debt”), in such amounts and between such parties as set forth in Appendix
A;

    

    2. The
seventh Recital of the Agreement is hereby amended and restated in its entirety
as follows:

    

    WHEREAS, the parties to this Agreement
desire to have the Related Companies’ Debt repaid in full and set off against
the Li Debt such that, after giving effect to the transactions contemplated by
this Agreement, the Related Companies’ Debt will no longer be outstanding and
neither Mr. Li nor any of the Related Companies will owe to the NIVS Group any
loan amount; and

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    3. Section
1(b) of the Agreement is hereby amended and restated in its entirety as
follows:

    

    b.           The
NIVS Group hereby sets off an aggregate amount of US$996,433 (the “Repayment Amount”) of
the Li Debt as set forth in Appendix A, such that
the Li Debt remaining after deducting the Repayment Amount is equal to an
aggregate amount of US$7,841,726 (the “Remaining Debt”). The
Repayment Amount is hereby fully repaid and extinguished in its entirety, and
the NIVS Group does not owe any loan amount to Mr. Li or any of the Related
Companies other than the Remaining Debt.  Mr. Li and the Related
Companies hereby agree and acknowledge the foregoing set-off.

    

    4. Appendix A to the
Agreement is hereby amended and restated in its entirety as set forth on Appendix A attached
hereto.

    

    5. Except as
amended herein, the Agreement shall remain in full force and
effect.

    

    6. This
Amendment may be executed and delivered in any number of facsimile counterparts,
each of which shall be an original, but which together constitute one and the
same instrument.

    

    

    [SIGNATURE
PAGE FOLLOWS]

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
 

    IN WITNESS WHEREOF, each of the Parties
hereto has executed this Amendment as of the date first set forth
above.

    

      
        	
                NIVS
      IntelliMedia Technology Group, Inc.

                 

                By:           /s/ Tianfu
      Li                                  
      

                 

                Name:      ________________________

                 

                Title:        ________________________

                 

                Niveous
      Holding Company Limited

                 

                By:           /s/
      Tianfu
      Li                                  
      

                 

                Name:      ________________________

                 

                Title:        ________________________

                 

                NIVS
      (HZ) Audio & Video Tech Company Limited

                 

                      
                  By:           /s/
      Tianfu
      Li                                  
      

                   

                

                Name:      ________________________

                 

                Title:        ________________________

                 

                NIVS
      International (H.K.) Limited

                 

                      
                  By:           /s/
      Tianfu
      Li                                  
      

                   

                

                Name:      ________________________

                 

                Title:       
      ________________________

                 

                NIVS
      (HZ) Audio & Video Tech Company Limited Shenzhen Branch

                 

                      
                  By:           /s/
      Tianfu
      Li                                  
      

                   

                

                Name:      ________________________

                 

                Title:        ________________________

                 

                Tianfu
      Li

                 

                      
                  /s/
      Tianfu
      Li                                             
      
Tianfu
      Li

                 

              	 
      	
                NIVS
      Investment (SZ) Co., Ltd.

                 

                      
                  By:           /s/
      Tianfu
      Li                                  
      

                   

                

                Name:      ________________________

                 

                Title:        ________________________

                 

                Zhongkena
      Technology Development

                 

                      
                  By:           /s/
      Tianfu
      Li                                  
      

                   

                

                Name:      ________________________

                 

                Title:        ________________________

                 

                Xentsan
      Technology (SZ) Co., Ltd.

                 

                      
                  By:           /s/
      Tianfu
      Li                                  
      

                   

                

                Name:      ________________________

                 

                Title:        ________________________

                 

                Korea
      Hyundai Light & Electric (Int’l) Holding

                 

                      
                  By:           /s/ [ILLEGIBLE]                           

                   

                

                Name:      ________________________

                 

                Title:        ________________________

                 

                NIVS
      Information & Technology (HZ) Co., Ltd.

                 

                      
                  By:           /s/ [ILLEGIBLE]                           

                   

                

                Name:      ________________________

                 

                Title:        ________________________

                 

                Hyundai
      Light & Electric (HZ) Co., Ltd.

                 

                      
                  By:           /s/ [ILLEGIBLE]                           

                   

                

                Name:      ________________________

                 

                Title:        ________________________

                 

              
	 
      	 
      	 
      

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

    

    APPENDIX
A

    

    LOAN
AND REPAYMENT INFORMATION

    

    The
Related Companies’ Debt (amount owed by Mr. Tianfu Li, through the Related
Companies, to the NIVS Group) is as set forth below and is as repaid in such
manner as set forth below (for purposes of this Agreement, all currency amounts
have been converted into US Dollars):

    

    
      
        	
                
                  Related
      Companies

                

              	
                
                  Amounts
      owed by Related Company to the NIVS Group as of November 28,
      2008

                

              	
                
                  Amounts
      Repaid

                

              	
                
                  Method
      of Repayment

                

              	
                
                  Remaining
      Amount Outstanding After Effect of this Agreement

                

              
	
                NIVS
      Investment (SZ) Co., Ltd.

              	
                -

              	
                -

              	
                -

              	
                $    -

              
	
                Zhongkena
      Technology Development

              	
                -

              	
                -

              	
                -

              	
                -

              
	
                Xentsan
      Technology (SZ) Co., Ltd.

              	
                -

              	
                -

              	
                -

              	
                -

              
	
                Korea
      Hyundai Light & Electric (Int'l) Holding

              	
                $996,433

              	
                $996,433

              	
                Set
      off against the Li Debt

              	
                -

              
	
                NIVS
      Information & Technology (HZ) Co., Ltd.

              	
                -

              	
                -

              	
                -

              	
                -

              
	
                Hyundai
      Light & Electric (HZ) Co., Ltd.

              	
                -

              	
                -

              	
                -

              	
                -

              
	
                Other
      Entities Affiliated with Mr. Li

              	
                -

              	
                -

              	
                -

              	
                   
       -

              
	 
      	 
      	 
      	 
      	 
      
	
                Total
      amount owed by any Affiliated Party to NIVS Group after the effect of this
      Agreement

              	 
      	 
      	 
      	
                -

              

      

    

    

    The Li
Debt (amount owed by the NIVS Group to Mr. Tianfu Li) is US$8,838,159, and the
Li Debt is set off as set forth below, in addition to the table above (for
purposes of this Agreement, all currency amounts have been converted into US
Dollars):

    

    
      
        
          
            	
                    The
      Li Debt

                  	 
      	
                    $8,838,159

                  
	
                    Amount
      of the Related Companies’ Debt Repaid via Set-Off Against the Li Debt (see
      table above)

                  	 
      	
                    
                      $996,433

                    

                  
	
                    The
      NIVS Group’s Remaining Debt owed to Mr. Tianfu Li after the Effect of this
      Agreement

                  	 
      	
                    $7,841,726

                  

          

        

      

    

    

     

    
      
        
        

      

      
        A-1Agreement
to Convert Debt into Equity

     

    This
Agreement
to Convert Debt into Equity (“Agreement”) is made
as of December 24, 2008, by and between the NIVS IntelliMedia Technology Group,
Inc., a Delaware corporation (“NIVS USA”), Niveous
Holding Company Limited, a British Virgin Islands corporation (“NIVS BVI”), NIVS (HZ)
Audio & Video Tech Company Limited (“NIVS PRC”), NIVS
International (H.K.) Limited (“NIVS HK,” and
collectively with NIVS USA, NIVS BVI and NIVS PRC, the “Company”), on the one
hand, and Tianfu Li, an individual residing in the People’s Republic of China
(“PRC”) and
holder of PRC identity card no. 440106196907021831 (“Mr. Li” and
collectively with the Company, the “Parties”), on the
other hand.

     

    WHEREAS, Mr. Li is the founder
and principal shareholder of the Company;

     

    WHEREAS, Mr. Li has lent funds
to the Company and the Company, as of the date of this Agreement, has an
outstanding loan balance equal to US$7,841,726 owed to Mr. Li (the “Debt”);

     

    WHEREAS, NIVS USA is the
direct and/or indirect parent corporation of NIVS BVI, NIVS PRC, and NIVS
HK;

     

    WHEREAS, NIVS USA intends to
conduct a public offering of shares of common stock of the NIVS USA, par value
$0.0001 (“Common
Stock”) and effect an initial listing of the Common Stock on the NYSE
Alternext US (the “Offering”);

     

    WHEREAS, NIVS USA intends to
conduct the Offering of the Common Stock at an offering price that has yet to be
determined but is expected to be in the range from $3.25 to $4.00 per shares of
Common Stock (the “Offering
Price”);

     

    WHEREAS, each of the Parties
desire that, upon the closing of the Offering, the Debt be converted into a
number of shares of Common Stock (the “Conversion”) that is
equal to the Debt divided by the Offering Price, rounded down to the nearest
whole (the “Shares”), and the
Debt will no longer be outstanding after giving effect to the Conversion;
and

     

    WHEREAS, the Shares will be
restricted securities under the U.S. Securities Act of 1933, as amended (the
“Securities
Act”), and the Shares may not be sold, transferred, or otherwise disposed
of without registration under the Securities Act or an exemption
therefrom.

     

    NOW THEREFORE, in
consideration of the covenants and agreements, including the subscription
agreement, hereafter set forth, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties agree
as follows:

     

    1.           Conversion of the Debt into
the Shares.  Mr. Li and the Company hereby agree that, upon the
closing of the Offering, the Debt shall be converted into a number of Shares
determined by dividing the Debt by the Offering Price, and rounding down to the
nearest whole number.  No fractional shares will be issued in the
Conversion.  After the Conversion, the Debt shall no longer be
outstanding and extinguished in its entirety.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    2.           Representations, Warranties
and Covenants by Mr. Li.  Mr. Li hereby makes the following
representations, warranties, and covenants as to the transactions contemplated
by this Agreement as of the date of this Agreement and as of the date of the
issuance of the Shares.

    

    a.           Mr.
Li has the power and authority to execute and deliver this Agreement, and to
consummate the transactions contemplated hereby and thereby.

    

    b.           Mr.
Li is acquiring the Shares for investment for his own account and not as a
nominee or agent, and not with a view to the resale or distribution of any part
thereof, and Mr. Li has no present intention of selling, granting any
participation in, or otherwise distributing the same.  Mr. Li further
represents that he does not have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant participation to such
person or to any third person, with respect to any of the Shares.

    

    c.           Mr.
Li understands that the Shares are not and will not be registered under the
Securities Act on the ground that the sale and the issuance of securities
hereunder is exempt from registration under the Securities Act pursuant to
Section 4(2) thereof, and that the Company’s reliance on such exemption is
predicated on the Mr. Li’s representations set forth herein.

    

    d.           Mr.
Li acknowledges that he can bear the economic risk of his investment, and has
such knowledge and experience in financial and business matters that he is
capable of evaluating the merits and risks of the investment in the
Shares.

    

    e.           Mr.
Li has carefully reviewed such information as such he deemed necessary to
evaluate an investment in the Shares.  To the full satisfaction of Mr.
Li, he has been furnished all materials that he has requested relating to the
Company and the issuance of the Shares hereunder, and Mr. Li has been afforded
the opportunity to ask questions of representatives of the Company to obtain any
information necessary to verify the accuracy of any representations or
information made or given to him, her or it.  Notwithstanding the
foregoing, nothing herein shall derogate from or otherwise modify the
representations and warranties of the Company set forth in this Agreement, on
which Mr. Li has relied in receiving the Shares.

    

    f.           Mr.
Li understands that the Shares may not be sold, transferred, or otherwise
disposed of without registration under the Securities Act or an exemption there
from, and that in the absence of an effective registration statement covering
the Shares or any available exemption from registration under the Securities
Act, the Shares must be held indefinitely.  Mr. Li is aware that the
Shares may not be sold pursuant to Rule 144 promulgated under the Securities Act
unless all of the conditions of that Rule are met.  Among the
conditions for use of Rule 144 may be the availability of current information to
the public about the Company.

    

    g.           Mr.
Li acknowledges that he must assure the Company that the offer and sale of the
Shares to him qualifies for an exemption from the registration requirements
imposed by the Securities Act and from applicable securities laws of any state
of the United States.  Mr. Li agrees that he meets the criteria
established in the subsections set forth below.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    h.           Mr.
Li is not a U.S. Person, as defined in Rule 901 of Regulation S, promulgated
under the Securities Act, and Mr. Li represents and warrants to the Company
that:

    

    (i)           Mr.
Li is not acquiring the Shares as a result of, and Mr. Li covenants that he will
not engage in any “directed selling efforts” (as defined in Regulation S under
the Securities Act) in the United States in respect of the Shares which would
include any activities undertaken for the purpose of, or that could reasonably
be expected to have the effect of, conditioning the market in the United States
for the resale of any of the Shares;

    

    (ii)           Mr.
Li is not acquiring the Shares for the account or benefit of, directly or
indirectly, any U.S. Person;

    

    (iii)           Mr.
Li is a resident of the PRC;

    

    (iv)           the
offer and the sale of the Shares to Mr. Li as contemplated in this Agreement
complies with or is exempt from the applicable securities legislation of the
PRC;

    

    (v)           Mr.
Li is outside the United States when receiving and executing this Agreement and
that Mr. Li will be outside the United States when acquiring the
Shares,

    

    (vi)           and
Mr. Li covenants with Company that:

    

    
      	
               
      

            	
              (1)

            	
              offers
      and sales of any of the Shares prior to the expiration of a period of one
      year after the date of original issuance of the Shares (the six (6)-month
      period hereinafter referred to as the “Distribution
      Compliance Period”) shall only be made in compliance with the safe
      harbor provisions set forth in Regulation S, pursuant to the registration
      provisions of the Securities Act or an exemption therefrom, and that all
      offers and sales after the Distribution Compliance Period shall be made
      only in compliance with the registration provisions of the Securities Act
      or an exemption therefrom and in each case only in accordance with
      applicable state securities laws;
and

            

    

    

    
      	
               
      

            	
              (2)

            	
              Mr.
      Li will not engage in hedging transactions with respect to the Shares
      until after the expiration of the Distribution Compliance
      Period.

            

    

    

    3.           Representations, Warranties
and Covenants by the Company.  Mr. Li hereby makes the
following representations, warranties, and covenants as to the transactions
contemplated by this Agreement as of the date of this Agreement and as of the
date of the issuance of the Shares.

    

    a.           NIVS
USA is a corporation duly incorporated, validly existing and in good standing
under the laws of the State of Delaware, with full corporate power and authority
to execute and deliver this Agreement, and to consummate the transactions
contemplated hereby and thereby.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    b.           The
Company shall deliver to Mr. Li within ten (10) days of the closing of the
Offering a stock certificate that represents the Shares.

    

    4.           Further
Assurances.  Each of the Parties shall use its reasonable
commercial efforts to proceed promptly with the transactions contemplated herein
and to execute such further documents and other papers and perform such further
acts as may be reasonably required or desirable to carry out the provisions of
this Agreement and to consummate the transactions contemplated
herein.

    

    5.           Miscellaneous.  This
Agreement may be executed in any number of facsimile counterparts, all of which
shall be but a single original.  This Agreement will be binding upon
and inure to the benefit of the Parties hereto and their respective successors
and assigns.  The Parties shall execute and deliver from time to time
hereafter, upon written request, all such further documents and instruments and
shall do and perform all such acts as may be reasonably necessary to give full
effect to the intent of this Agreement.

    

    6.           Governing
Law.  This Agreement and all actions arising out of or in
connection with it shall be governed by and construed in accordance with the
laws of the State of Delaware, without regard to the conflicts of law provisions
of the State of Delaware, or of any other state.

    

    [SIGNATURE
PAGE TO FOLLOW]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, the
Parties have entered into this Agreement as of the date first set forth
above.

     

    NIVS
IntelliMedia Technology Group, Inc.

    

    
      By:           /s/ [ILLEGIBLE]                           

    Name:      ________________________

    

    Title:        ________________________

    

    Niveous
Holding Company Limited

    

    
      By:           /s/ [ILLEGIBLE]                           

    Name:      ________________________

    

    Title:        ________________________

    

    NIVS
(HZ) Audio & Video Tech Company Limited

    

    
      By:           /s/ [ILLEGIBLE]                           

    Name:      ________________________

    

    Title:        ________________________

    

    NIVS
International (H.K.) Limited

    

    
      By:           /s/ [ILLEGIBLE]                           

    Name:      ________________________

    

    Title:        ________________________

    

    

    Tianfu
Li

    

    /s/
Tianfu
Li                                                

    Tianfu
Li

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