Document:

EX-4.25 COMMODITY EXCHANGE AGREEMENT

 

EXHIBIT 4.25

[Translation]

Commodity Exchange Agreement

September 1, 2003

	Buyer:

Seller:	 	Crayfish Co., Ltd.

 IDK Inc.

 

 

Crayfish Co., Ltd. (“Buyer”) and IDK Inc. (“Seller”) hereby enter into this
agreement (“Agreement”) establishing the basic terms and conditions of a
continuous commodity sales transaction.

Article 1. (Application of Agreement)

The matters stated in Agreement, which relate to each sales contract (“Separate
Agreement”), are applicable to each Separate Agreement executed by Buyer and
Seller as long as the Agreement is effective. Terms of the Agreement may be
modified by the terms of Separate Agreements that contravene, or differ from
any or all of the terms herein, provided a separate writing between Buyer and
Seller is executed with respect to thereto.

Article 2. (Sales Items)

Seller shall continuously sell to Buyer telecommunication hardware, office
automation hardware, working materials, service related to these materials, and
other products which seller handles (“Product”) pursuant to this Agreement.

Article 3. (Execution of Separate Agreements)

	1.	 	Conditions of each product such as product name, volume, price, shipping
condition, and other conditions, other than those set out in the
Agreement, are set out in each Separate Agreement created upon each sales
transaction, provided however that Seller may restrict the volume and
price of products in the case of rapid changes in economic or trade
conditions.

	2.	 	Separate Agreements are generally created when the order form, which is
sent by Buyer, and the order confirmation, which is issued by Seller, are
exchanged. However, this process can be eliminated after consultation
between Seller and Buyer in certain cases.

Article 4. (Modification of Separate Agreements)

	1.	 	If Buyer or Seller desires to modify a Separate Agreement, a Buyer or
Seller must inform the other party as soon as possible, and only modify
such contract after mutual consultation.

	2.	 	If a modification of the Separate Agreement is attributable to the
Seller, and as a result the Buyer is damaged, the Buyer may be entitled to
claim damages against the Seller. If a modification of the Separate
Agreement is attributable to the Buyer, and as a result the Seller is
damaged, the Seller may be entitled to claim damages against the Buyer.

Article 5. (Conditions of payment)

	1.	 	The Seller shall set the closing date of billing as the last date of each
month, and the bill shall contain the product price, any credit which
accrued by the contract between Seller and Buyer (“credit”), and legal
consumption tax. Buyer must pay the amount of bill within three months
following the billing date.

	2.	 	Buyer will inform Seller of calculation mistakes in the process described
above, and both parties shall research and strive to correct the mistake
in good faith.

	3.	 	If a customer of Buyer wishes to lease a product, Buyer may sell the
product to a leasing or credit company (“Leasing Company”), whereupon
Seller may directly receive from Leasing Company, rather than from the
Buyer, the sales price of the product. In such case, the Buyer and Seller
may reconcile the transaction by exchanging sales receipts.

	4.	 	The billing process may be changed by the singing by both parties of an
additional contract.

Article 6. (Late payment charges)

If the Buyer fails to make a payment on the payment date described Article 5-1,
or if the Buyer has issued a check that bounces, Buyer must pay to Seller
compensation for the delay in payment at the annual rate of 14.60% (daily base
at 365 days per year) from the day after payment date, until the date of
payment.

Article 7. (Responsibility)

Except when damage is clearly the Buyer’s fault, Seller shall be responsible
for all damages, deterioration or loss to the product before delivery. Expect
when damage is clearly the Seller’s fault, Buyer shall be responsible for all
the damage, deterioration or loss to the product after delivery.

Article 8. (Delivery and inspection of product)

 

 

	1.	 	Seller shall deliver products to a location specified by Buyer, and
delivery process completed when Buyer has inspected and issued receipt for
product. If the Buyer has not issued a rejection notice within three days
following the delivery date, the product shall have been deemed accepted
by Buyer.

	2.	 	Buyer and Seller may agree to a delivery method that differs from that
described above.

Article 9. (Returned Products)

	1.	 	Buyer may return products that are defective upon delivery, which fail
inspection, exceed the number of products pursuant to a Separate
Agreement, or where Seller has agreed to such return.

	2.	 	In the above case, Buyer should return product to a location specified by
Seller within 10 days following Buyer’s agreement return the product.

	3.	 	Regardless of Article 9-1, Buyer may not return a product for any reason
more than 6 months following the delivery date.

Article 10. (Transfer of ownership right)

The transfer of ownership right is completed from Seller to Buyer when the
payment of products is made. However Seller cannot prevent Buyer from
reselling the product to a third party.

Article 11. (Inform obligation)

Buyer must promptly inform Seller upon the occurrence of the below events:

	1.	 	A change in the location of its headquarters, name of director or
representative director.

	2.	 	A merger, reorganization, increase or reduction in capital, dissolution
or transfer or delegation of all or part of its business.

	3.	 	An attachment, provisional attachment, provisional disposition,
compulsory execution or allegation of auction from third party. When there
is attachment for unpaid tax or other disposal by the government.

	4.	 	An allegation of bankruptcy, initiation of corporate consolidation,
special liquidation, start of civil rehabilitation proceedings or
corporate rehabilitation proceedings by a third party or by the company
itself.

	5.	 	A coercive collection of tax and public dues.

	6.	 	Any other event that has a substantial effect on Buyer’s management or
financial conditions.

Article 12. (Setoff)

Buyer and Seller cannot setoff monetary liabilities except as may be agreed to
by both parties following discussion.

Article 13. (termination and loss)

Buyer must make immediate payment of any outstanding amounts to Seller may
terminate this Agreement without any further notice upon the occurrence of any
of the following events.

	1.	 	Buyer has not paid for any products.

	2.	 	With respect to the Buyer, a court has ordered an attachment, provisional
attachment, provisional disposition, compulsory execution or allegation of
auction based on a third party claim, or when a government has ordered an
attachment for unpaid tax or other disposal.

	3.	 	With respect to the Buyer, there has been an allegation of bankruptcy,
initiation of corporate consolidation, special liquidation, start of civil
rehabilitation proceedings or corporate rehabilitation proceedings by a
third party or by the Buyer itself.

	4.	 	Buyer is ordered by the government to suspend its business or business
license, or the government has forced it to terminate its business
registration.

	5.	 	Buyer’s management has decided to discontinue business or Buyer undergoes
another substantial change, or is dissolved.

	6.	 	A bounced check issued by Buyer.

	7.	 	Trade is stopped without any appropriate reasons.

	8.	 	The Buyer fails to honor its obligations under this Agreement.

Article 14. (Return of good when contract is terminated)

Upon termination of the Agreement for any reason above, if the Buyer has any
remaining obligations hereunder, the Buyer must promptly return the product to
Seller.

 

 

Article 15. (Exception for act of god)

When execution of part or all of the Agreement is delayed or made impossible by
reason of natural disaster, war, insurrection, civil commotion, government
command by change in law, dissolution by government, labor dispute, accident in
transportation, or other act of god, Seller shall not have any obligations
hereunder.

Article 16. (Security)

	1.	 	Seller may request cash collateral to secure Buyer’s liabilities
hereunder.

	2.	 	The method of handling cash collateral and the amount of cash collateral
shall be subject to an agreement between Buyer and Seller.

	3.	 	Buyer may substitute non-cash collateral for cash collateral subject to
Seller’s prior agreement thereto.

	4.	 	The Seller may request the Buyer to provide additional cash collateral,
other collateral or replacement of collateral upon an increase in the
volume of transactions or a decrease in the value of collateral.

	5.	 	After the Buyer has paid the entire cost of goods and other liabilities
accrued under this Agreement and has been released from its obligations
under the Agreement, the Seller must return to Buyer all cash and other
collateral to Buyer.

Article 17. (Expiration date)

	1.	 	This contract will expire in two years from contract date.

	2.	 	The contract will automatically renew for one year if either party do not
propose for change or termination of contract before a month before expire
date stated in Article 17-1.

Article 18 (Required documents)

Buyer is required to attach a corporate seal certificate for seal used in
contract and certified copy of register of company when contract is concluded.

Article 19 (Additional discussion)

Any matters, which are not set forth herein may be established by additional
agreements between Buyer and Seller.

Article 20 (Competent court for agreement)

When there is filing of litigation under the rights and responsibilities of
this contract, competent court should be Tokyo district court or Tokyo summary
court depend on the amount of subject matter.

As a proof for close of contract, make two copies of this document, and both
Buyer and Seller keep this one copy of this document with name, seal and sign
of each party.

September 1, 2003

	 	 	 	 	 
	(Buyer)	 	
Address:
	 	Ikebukuro Park Building 9F Minami Ikebukuro 2-49-7,

Toshima-ku Tokyo 171-0022, Japan
	 	 	
Name:
	 	Crayfish Co., Ltd.
	 	 	 	 	Representative Director: Kazuhiko Muraki

/s/ Kazuhiko Muraki sealed by stamp
	 
	(Seller)	 	
Address:
	 	Kyoubashi 2-2-3 Chuo-ku, Tokyo Japan
	 	 	
Name:
	 	IDK Inc.
	 	 	 	 	Representative Director: Yuuichi Ishiwatari

/s/ Yuuichi Ishiwatari sealed by stamp<PAGE>

                                                                     EXHIBIT 4.5

                                                                     Page 1 of 7

                                                                 20th March 2002

                           SPECIFIC SERVICE AGREEMENT

                                     BETWEEN

                     SONY ERICSSON MOBILE COMMUNICATIONS AB
                  (HEREINAFTER REFERRED TO AS "SONY ERICSSON")

                                       AND

                  NAM TAI ELECTRONIC & ELECTRICAL PRODUCTS LTD.
                   (HEREINAFTER REFERRED TO AS THE "SUPPLIER")

                            REGARDING PROJECT AUGUST
<PAGE>

                                                                     Page 2 of 7

                                                                 20th March 2002

TABLE OF CONTENTS

<TABLE>
<S>                                                          <C>
1.       TERMINOLOGY, INTEGRATED PART...................     1
2.       SCOPE OF THE SSA...............................     2
3.       FORECASTS AND ROADMAPS.........................     2
4.       COMMUNICATION AND CONTACTPERSONS...............     2
5.       INDUSTRIALISATION SERVICES.....................     2
6.       PROTOTYPES...............,.....................     3
7.       SPECIFICATION..................................     3
8.       DOCUMENTATION..................................     3
9.       PRICING AND TERMS OF PAYMENT...................     3
10.      TERMS OF DELIVERY..............................     4
11.      PACKING AND LABELLING..........................     4
12.      WARRANTY.......................................     4
13.      QUALITY........................................     4
14.      PURCHASE OF COMPONENTS.........................     5
15.      TERM OF AGREEMENT AND TERMINATION..............     5
</TABLE>

ENCLOSURES:

Enclosure 2.1        SPA
Enclosure 2.3        Project Plan
Enclosure 16.1       Purchase of components

<PAGE>

                                                                     Page 1 of 7

                                                                 20th March 2002

SPECIFIC SERVICE AGREEMENT

made as of 20th March 2002, by and between

Sony Ericsson Mobile Communications AB, Org no 556615-6658, a limited liability
Company duly incorporated and existing under the laws of Sweden, with its legal
address at Nya Vattentornet, S-221 88 Lund, Sweden, hereinafter referred to as
"Sony Ericsson",

and

NAM TAI ELECTRONIC & ELECTRICAL PRODUCTS Ltd, with organisation number 129666, a
corporation duly incorporated and existing under the laws of Hong Kong and
having its registered office at 15th Floor, China Merchants Tower, Shun Tak
Centre, 168-200 Connaught Road Central, Hong Kong (hereinafter referred to as
the "Supplier").

(hereinafter referred to as the "Supplier").

WHEREAS:

1.       Ericsson and Supplier have entered into the General Service and
         Purchase Agreement, GSPA, dated 15th February 2001 among other
         agreements,

2.       The GSPA contains the general terms and conditions for the performance
         of Product Supply to Ericsson, Mobile Phone Accessories, from Supplier,

3.       It is intended that the GSPA will be supplemented by one (1) or more
         SSA's setting out the specific provisions relating to the performance
         of Product Supply, and

4.       The Supplier has explained that it is willing and fully able to perform
         the Product Supply on behalf of Sony Ericsson for delivery of high
         quality Products, under the terms and conditions set out in this SSA
         and the GSPA.

NOW THEREFORE, in consideration of the mutual obligations herein contained, the
Parties agree as follows:

1.       TERMINOLOGY, INTEGRATED PART

         The GSPA shall be an integrated part of this SSA and, accordingly, all
         terms and conditions in the GSPA shall also apply to this SSA.
         Capitalised terms contained herein shall have the meanings assigned to
         them below or as ascribed to them in the GSPA unless otherwise defined
         in the context or document where it is used.

         "AGREEMENT", means this Specific Service Agreement.

         "GSPA", means the General Service and Purchase Agreement referred to in
         the "Whereas"-section above entered into between the Parties.

         "PRODUCT", means the Camera August, developed by C Technologies AB on
         behalf of Sony Ericsson and further specified in this Agreement.

         "SPA", means the Specific Purchase Agreement enclosed hereto.

<PAGE>
                                                                     Page 2 of 7

                                                                 20th March 2002

         "SSA", means this Specific Service Agreement.

2.       SCOPE OF THE SSA

2.1      Under the terms and conditions set forth in the Agreement Documents

         (i)      Supplier shall - exclusively for Sony Ericsson - perform
                  Product Supply regarding the Product, and

         (ii)     Sony Ericsson shall be entitled to purchase the Products from
                  Supplier under the SPA included hereto as Enclosure 2.1.

2.2      In the event of an inconsistency in the Agreement Document, the
         inconsistency shall be resolved by giving documents precedence in the
         following order:

         (i)      The Purchase Order, excluding Sony Ericsson's general
                  purchasing conditions if such have been enclosed with the
                  Purchase Order,

         (ii)     The SPA, including enclosures in the order provided,

         (iii)    This Agreement excluding the Enclosures,

         (iv)     Enclosure 2.3     Project Plan

         (v)      Enclosure 16.1    Purchase of components, and

         (vi)     The GSPA.

2.3      Included in the Product Supply shall be repair and maintenance services
         as set out in Enclosure 2.3.

3.       FORECASTS AND ROADMAPS

3.1      A forecast of RTL and production volumes is included in Enclosure
         2.3.These volume is only for production and capacity planning purposes.
         Sony Ericsson is not committed to buy according to the forecasted
         volumes. Sony Ericsson liability of the risk order volumes and
         forecasted volumes as per Article 14.

4.       COMMUNICATION AND CONTACT PERSONS

4.1      In accordance with Subsection 5.5 of the GSPA the Parties hereby
         appoint the contact persons set out in Enclosure 2.3 to receive and to
         communicate information.

5.       INDUSTRIALISATION SERVICES

5.1      Supplier shall, as part of the Product Supply and in accordance with
         Subsection 6.1 of the GSPA, lead and be responsible for the
         industrialisation of Product.

5.2      Supplier shall, as part of the Product Supply and in accordance with
         Subsection 6.4 of the GSPA, provide information for the design work and
         furthermore manufacture the test applications.

5.3      The requirements for traceability as provided in Subsection 6.7 in the
         GSPA shall be as set out in Enclosure 2.3.

<PAGE>

                                                                     Page 3 of 7

                                                                 20th March 2002

6.       PROTOTYPES

6.1      Supplier shall

         (i)      provide Sony Ericsson with the Prototype

         (ii)     perform the testing of the Prototype, and

         (iii)    provide Sony Ericsson with written reports of the analysis of
                  the Prototypes.

7.       SPECIFICATION

7.1      Supplier shall not deliver any Products unless they meet the
         requirements set out in the Specification as set out in Enclosure 2.3
         and amended from time to time in and as further described in Section 14
         in the GSPA.

8.       DOCUMENTATION

8.1      Project Documentation

         The Supplier shall submit written reports to Sony Ericsson on the
         activities and the progress of the Product Supply. Such reports shall
         include the reports and plans specified in Enclosure 2.3.

8.2      Product Documentation

         Supplier shall produce and deliver to Sony Ericsson Product
         Documentation fulfilling the requirements set out in templates included
         in Enclosure 2.3.

9.       PRICING AND TERMS OF PAYMENT

9.1      Current price

         The current price of the Product shall be as set out in Enclosure 2.1,
         the SPA.

9.2      Currency

         All invoices sent by Supplier shall be in the currency that has the
         greatest impact, as agreed by the Parties, on the final price of the
         Product. Should the Parties not be able to reach such an agreement then
         the invoices sent by Supplier shall be in SEK.

9.3      Price review

         The price of the Products shall be reviewed and agreed quarterly before
         the ending of every quarter in order for the prices to be firm for
         deliveries during the following quarter.

         The basis for the price review shall be:

         (i) significant changes in volumes, and/or;

         (ii) fluctuations in the exchange rate as defined below, and/or;

         (iii) changes to the Specification, and/or;

<PAGE>

                                                                     Page 4 of 7

                                                                 20th March 2002

         (iv)     increased production efficiency including but not limited
                  to"The learning curve advantage", and/or;

         (v)      changes in the price of the components.

         (vi)     delivery performance in the last quarter before against agreed
                  and acknowledge order, call of lead time

         Changes in the Specification and/or changes of a specific component
         price during a quarter, which causes a different price shall
         immediately or with a reasonable delay - due to material in stock -
         apply to all ordered Products. Such reasonable delays shall however
         only relate to reasonable explainable normal stock levels or situations
         with higher stock levels attributable to Sony Ericsson. At the
         quarterly price review meetings Supplier will describe and specify the
         changes made during the quarter. The different price shall be passed on
         to Sony Ericsson at the aforementioned fixed exchange rate as defined
         in GSPA.

10.      TERMS OF DELIVERY

10.1     Delivery time

         The Supplier shall perform the Product Supply, in accordance with the
         time-schedule set out in Enclosure 2.3 Dates of delivery of volume
         produced Products shall be as stated in the relevant P.O.

10.2     Delivery terms

         Applicable terms of delivery shall be FCA Hong Kong International
         Airport, INCOTERMS 2000, unless otherwise agreed in P.O.

11.      PACKING AND LABELLING

11.1     The Products shall be packed and marked separately as set out in the
         Specifications and the applicable Purchase Order. The Purchase Order
         and product numbers shall be set out in the shipping documents.

12.      WARRANTY

12.1     The replacement or repair the Products shall be made by Supplier as
         soon as possible from the return of the Products to Supplier by Sony
         Ericsson, but Sony Ericsson shall receive the replaced or repaired
         Product in no event later than within ten business days from the
         receipt of the Product by the Supplier.

13.      QUALITY

13.1     Product related Standards and Requirements

13.1.1   All Product Supply shall be handled in accordance with the
         standards/requirements set out in the Specification and in Enclosure
         2.3

13.1.2   The defect intensity of the Products must not exceed the values set out
         the Specification. A defect intensity below these limits does not limit
         Sony

<PAGE>

                                                                     Page 5 of 7

                                                                 20th March 2002

         Ericsson's right to exercise its applicable remedies due to
         non-conforming Products.

14.      PURCHASE OF COMPONENTS

14.1     The Supplier shall purchase materials at contracted prices under
         existing Sony Ericsson Agreements for supply of materials as set out
         in Enclosure 16.1.

14.2     Liability for risk order material as set out in Enclosure 16.1

14.3     The Supplier is responsible for the purchase and supply of all
         components.

15.      TERM OF AGREEMENT AND TERMINATION

15.1     This Agreement shall come into force upon its execution by duly
         authorised representatives of both Parties and shall remain in effect
         until three (3) months have passed following written notice of
         termination by either Party, unless terminated on an earlier date as
         set out in Section 29 "TERM OF AGREEMENT AND TERMINATION" in the GSPA.

15.2     The Supplier is aware of that the development of the new Product will
         be continuously reviewed to assess whether the Product will reach the
         market on time, at an appropriate end user price and fit into the Sony
         Ericsson's market strategy at the time, etc. The Parties agree that
         Sony Ericsson shall be entitled at any time to terminate this
         Agreement, any Purchase Order, by giving the Supplier twenty (20)
         Business Days written notice.

15.3     In the event of Sony Ericsson's termination under 15.2, Sony Ericsson
         shall pay to the Supplier the actual direct costs accrued under the
         Agreement at the time of termination. The Supplier shall not be
         entitled to any other compensation

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be
executed, in duplicate, each party taking one copy.

Date: 20th March 2002                          Date: 20th March 2002
Place: Hong Kong                               Place: Lund

NAM TAI ELECTRONIC &                           SONY ERICSSON MOBILE
ELECTRICAL PRODUCTS Ltd                        COMMUNICATIONS AB

/s/ Karene Wong                                /s/ Bill Lichtensteiger
-----------------------                        --------------------------------
Karene Wong                                    Bill Lichtensteiger
Managing Director

<PAGE>

                                                                   Enclosure 2.3

[SONY ERICSSON LOGO]                                                       1 (5)

                                                Internal Limited.
                                                PROJECT PLAN AUGUST

Prepared (also subject responsible it other)    No.
NDU/P Ola Lonhage                               NDU/P-02:1617
                                  Checked       Date             Rev  Reference
Approved                                        2002-03-27        B   File
NDU/PC Gunilla Wejfeldt

PROJECT PLAN AUGUST

CONFIDENTIAL

The content of this document is the property of Sony Ericsson Mobile
Communication AB and may not be communicated to any other party in any form
without the prior written consent of Sony Ericsson Mobile Communication AB.

Project Manager: NDU/ P Ola Lonhage

Product Manager: NM Carina Rietz

Sony Ericsson Cost Center: 32640

Project Account Number: 10003418

TABLE OF CONTENTS

<TABLE>
<S>                              <C>
1    Revision history            2
2    Project Summary             2
3    Activities                  2
4    Time Schedule               2
5    Prototypes                  3
6    Type Approval               3
7    Volume Estimates            3
8    Project Responsibilities    4
9    Contractors                 4
10   Project Control             5
11   Cross Project Links         5
12   References                  5
</TABLE>
<PAGE>

[SONY ERICSSON LOGO]                                                       2 (5)

                                                Internal Limited
                                                PROJECT PLAN AUGUST
                                                No.

Prepared (also subject responsible it other)
NDU/P ola Lonhage                               NDU/P-02:1617
                                  Checked       Date             Rev  Reference
Approved                                        2002-03-27        B   File
NDU/PC Gunilla Wejfeldt

1.       REVISION HISTORY

         Rev ___________________________________________________________________

             ___________________________________________________________________

             ___________________________________________________________________

             ___________________________________________________________________

2.       PROJECT SUMMARY

         August is the successor of the Gustav camera. August are cost
         "improved. Added features/ functions are optical viewfinder and Effect,
         former FunLayers described in PRS NM 02:1507.

3.       ACTIVITIES

         According to August Project Meeting NDU/ P 01:1615 and August Project
         Organization NDU/ P 02:1642.

3.1      HARDWARE

         Responsible developer C-Tech: PM Ola Hakanson

3.2      MECHANICS

         Responsible developer Namtai: PM Ivan Shui

3.3      SOFTWARE

         Same as 3.1

3.4      MISC.

         N/A

<PAGE>

[SONY ERICSSON LOGO]                                                       3 (5)

                                                Internal Limited
                                                PROJECT PLAN AUGUST
                                                No.

Prepared (also subject responsible if other)

NDU/P Ola Lonhage                               NDU/P-02:1617
                                  Checked       Date             Rev  Reference
Approved
NDU/PC Gunilla Wejfeldt                         2002-03-27        B   File

4.       TIME SCHEDULE

         More detailed time schedule is found in the Time Plan (Microsoft
         Project Gantt Chart) Document No.: NDU/P02:1617

<TABLE>
<CAPTION>
ACTIVITY                            PLANNED      ESTIMATED    ACTUAL
<S>                                 <C>          <C>          <C>
Milestone 2                          W 208           W          W
Tollgate 2                           W 209           W          W
PA                                   W TBD           W          W
Milestone 3                          W 225           W          W
Tollgate 3                           W TBD           W          W
Milestone 4                          W 232           W          W
Tollgate 4                           W TBD           W          W
LL                                   W 233           W          W
RTL                                  W 239           W          W
Milestone 5                          W 241           W          W
Tollgate 5                           W TBD           W          W
Milestone 6                          W 249           W          W
Tollgate 6                           W TBD           W          W
</TABLE>

5.       PROTOTYPES

<TABLE>
<CAPTION>
PROTOTYPES         PLANNED     ESTIMATED    ACTUAL       UNITS
<S>                <C>         <C>          <C>         <C>
EP1                  W18           W          W          50 PCS

FP1                  W20           W          W         250 PCS
FP2                  W24           W          W         580 PCS
</TABLE>

6.       TYPE APPROVAL

6.1      RADIO

         APPROVAL           PLANNED       ESTIMATED      ACTUAL

                              W 24            W            W

6.2      EMC

         APPROVAL          PLANNED       ESTIMATED      ACTUAL

                             W 24            W             W

<PAGE>

[SONY ERICSSON LOGO]                                                       4 (5)

                                                Internal Limited
                                                PROJECT PLAN AUGUST
                                                No.

Prepared (also subject responsible if other)

NDU/P OIa Lonhage                               NDU/P-02:1617
                                  Checked       Date             Rev  Reference
Approved
NDU/PC Gunilla Wejfeldt                         2002-03-27        B   File

6.3      SAFETY

<TABLE>
<CAPTION>
APPROVAL         PLANNED      ESTIMATED    ACTUAL
<S>              <C>          <C>          <C>
                   W 24           W           W
</TABLE>

7.       VOLUME ESTIMATES

<TABLE>
<CAPTION>
                         PLANNED    ESTIMATED   ACTUAL        UNITS
<S>                      <C>        <C>         <C>          <C>

Pre-Series*               W 28          W         W          2.5 kpcs
Series Start **           W 32          W         W
RTL volume                W 39          W         W           20 kpcs

Capacity per month                                            25 kpcs
Amortization volume                                           50 kpcs
Total volume                                                 150 kpcs

Estimated lifetime                                            9 month
</TABLE>

*  "Limited Production"

** "Volume Production"

8.       PROJECT RESPONSIBILITIES

         SONY ERICSSON MOBILE COMMUNICATIONS AB +46 46 19 40 00

         According to NDU/ P 01: 1623 and NDU/ P 01: 1615

9.       CONTRACTORS

9.1      DESIGN (Development)

         According to NDU/ P 01: 1623 and NDU/ P 01: 1615 Agreement no. CTECH:
         AUGUST: 20020319

9.2      PRODUCTION (Manufacturing)

         According to NDU/ P 01: 1623 and NDU/ P 01: 1615 Agreement no. NAMTAI:
         AUGUST: 20020320

<PAGE>

[SONY ERICSSON LOGO]                                                       5 (5)

                                                Internal Limited
                                                PROJECT PLAN AUGUST
                                                No.

Prepared (also subject responsible if other)

NDU/P OIa Lonhage                               NDU/P-02:1617
                                  Checked       Date             Rev  Reference
Approved
NDU/PC Gunilla Wejfeldt                         2002-03-27        B   File

10       PROJECT CONTROL

         TTM Work Model         NDU/P 02:1617

11       CROSS PROJECT LINKS

         Mira

12       REFERENCES

         <directives>                       NDU/ P 02:1604
         <specifications>                   NDD 01:1201
         <concept studies>                  According to C-Tech Quote
         <pre-studies>                      According to C-Tech Quote
         <feasibility studies>              According to C-Tech Quote
         <industrial design>                According to KIDQ 01:11029
         <production processes>             According to August-0301 (Namtai)
         <repair processes>                 FRW 02:5031
         <verification plans>               NDD 01:1208
         <validation plans>                 NDV 02:1101
         <capacity build plans>             According to August-0301 (Namtai)
         <document structure spec.>         109 42- DPY 901334 latest rev.

<PAGE>

                                                                  Enclosure 16.1

PURCHASE OF MATERIAL

Sourcing of components

Supplier may source components from any agreed third party fulfilling the agreed
specification of each component.

Supplier is responsible to secure supply of component to enable the delivery of
the Product as per the latest advised forecast.

Liability of risk order material.

Sony Ericsson will assume liability for long lead items as defined below,
included in the BOM for the volumes as estimated in the forecast provided by
Sony Ericsson, Such liability is limited to maximum 14.000 units per month for a
three month period. (i.e. Maximum 42.000 unit of each item)

The price for such long lead items as defined below.

Supplier undertakes to make his best efforts to cancel any outstanding purchase
order of components or to resell or reuse any excess component prior to making
any claim to Sony Ericsson. Supplier undertakes to keep such material in stock
free of charge for the first three months after the latest production lot. From
month four to nine after such event Sony Ericsson will cover the interest cost
of the listed items based upon an reasonable interest rate and reasonable
warehousing cost for the items listed herein. After this nine months period
Supplier may claim that this liability undertaking by Sony Ericsson shall be
executed. Supplier shall not keep more material in stock than necessary
considering lead times among others.

The maximum liability under any circumstance is limited to 435.120 USD

<TABLE>
<CAPTION>
Part number               Description         Leadtime, Weeks       Price, USD
-----------               -----------         ---------------       ----------
<S>                     <C>                   <C>                   <C>
                        Sensor                      12                3,30
                        Flash memory                12                1,30
                        RAM memory                  12                1,80
                        Lens                        12                2,75
                        ESD Protector IC            9                 0,27
                        Regulator                   9                 0,13
                        Regulator                   9                 0,14
                        Tan Cap                     9                 0,25
                        Tact Switch                 8                 0,12
                        Crystal                     8                  0,3
</TABLE>

For the Argus circuit special conditions will apply as below, (as agreed with
C-Tech) Namtai to place such Frame Order at C-Tech as outlined below

PRICE OF ARGUS ASIC CT100A1-BG BGA160:

0-50 000 units: USD 6.45
51 000 to 100 000 units: USD 5,95
> 100 000 units: USD 5,85

The price is firm for deliveries during 2002 and 2003. Sony Ericsson and C-Tech
will re negotiate such price in December 2002.

SPECIAL CONDITIONS REGARDING PURCHASE OF ARGUS:

<PAGE>
                                                                  Enclosure 16.1

NamTai shall place a frame purchase order at C-Tech (hereinafter the "Frame
Order") for fifty-thousand (50,000) units of "Argus" no later than three (3)
months prior to production ramp-up currently planned for during June 2002, The
said Frame Order shall include a delivery schedule indicating volumes on a
monthly basis for at least the remainder of 2002 starting from June 2002 (the
entire above referenced 50 000 units shall be scheduled for delivery prior to
the end of November 2002) to be called off by NamTai. Sony Ericsson will provide
Supplier with sufficient information to enable such forecast to C-Tech.

NamTai may cancel or decrease the number of units scheduled for delivery for a
specific month under the delivery schedule contained in the Frame Order subject
to Nam Tai being liable to pay C-Tech the following fees:

<TABLE>
<CAPTION>
      CANCELLATION PERIOD                    LIABILITY
<S>                                     <C>
Over 120 days prior to delivery             No liability
91-120 days prior to delivery           30% of purchase price
61-90 days prior to delivery            50% of purchase price
31-60 days prior to delivery            70% of  purchase price
0-30 days prior to delivery             100% of  purchase price
</TABLE>

Sony Ericsson will assume liability for the above cancellation fee provided Nam
Tai has made their best effort to cancel in due time an to reduce any such fee
to a minimum. Must act without undue delay if Sony Ericsson advices about any
change in forecasted volumes.

This liability for the Argus ASIC is in excess of the liability for other
components as stated above.

<PAGE>

Sony Ericsson Mobile Communications AB                              Confidential

Nam Tai cost template for August

<TABLE>
<S>                                             <C>
1 MATERIAL COST
                                                  USD:
                                                  ----
    Bill of material
    Material scrap 1%
    Material burden 1.5%
                                                --------
    TOTAL MATERIAL COST
                                                ========

2 LABOUR COST

    PROCESS        RATE (USD)     LABOUR TIME

    SMT            0.003/chip
    Final assy.    4.24/hour
    Testing        4.24/hour
    Packaging      4.24/hour
                                                --------
    TOTAL LABOUR COST
                                                ========

3 FREIGHT + INSURANCE COST
    FCA Hong Kong                                 0.07
                                                ========

4 FINANCIAL COST

    1.5% of bill of material for 60 days credit

    0.75% of bill of material for 30
    days sea shipment. IF APPLICABLE

    0,375% of bill of material for 15
    days sea shipment. IF APPLICABLE

5 PROFIT

    4.8% of bill of material

                                                --------
6 TOTAL UNIT PRICE
                                                ========

7 TOOLING, PRODUCT UNIQUE EQUIPMENT

8 TOTAL UNIT PRICE FIRST 50K
</TABLE>

Note! This line includes the total amount on
line 7 divided with the first 50K units.

<PAGE>

Amendment to Specific Service Agreement signed 20th March 2002

     Sony Ericsson Mobile Communications AB, Nya Vattentornet, SE-22188 Lund,
     Sweden hereinafter SEMC and NAM TAI ELECTRONIC & ELECTRICAL PRODUCTS Ltd,
     15th Floor, China Merchants Tower, Shun Tak Centre, 168-200 Connaught Road
     Central, Hong Kong, hereinafter called Namtai, are in agreement to use
     below outlined fore cast and liability model, for the running production of
     the August Camera, MCA-25. This liability model will apply for this date
     forward and replaces in full any previous "Conditional Risk Order" or
     similar document issued by SEMC. This document will be an amendment to the
     SSPA signed 20th March 2002 between the parties and replaces Enclosure 16
     in said agreement.

     The components covered by this agreement shall solely be used for the
     manufacturing of the Camera August, MCA-25, (Product). See Specific Service
     and Purchase Agreement, SSPA, dated 20th March 2002 for further product
     information.

     See enclosure A and B, Excel sheet for liability model. Enclosure A shows
     the undertaking per 15th October 2002 as an example of how the model works.
     Volume figures, component lead-time and cost to be updated every month

     The model will be applicable for any forecast issued by SEMC or Flextronics
     as agreed between the parties.

     SEMC will issue a revised forecast the last business day in each month.

     During the ramp up period (October to January 2003) Namtai shall) review
     the proposed volume to confirm if the necessary capacity is available. This
     volume proposal to be communicated in due time before formal fore cast is
     issued at the end of each month.

     The present model includes four weeks extra time period allowing for
     internal logistical processes and stock at Namtai. (This period is shown as
     the first four weeks period in the model. See Enclosure B) The parties are
     in agreement that the objective is to reduce this period to a maximum of
     two weeks before 31st December 2002. (Topic to be further discussed at Anna
     Greens and Lars Jarmanders visit to Namtai coming fortnight period)

     If a revised forecast or the actual call off volume will be lower for a
     certain month than the previously agreed, which will result in excess
     components and such components is not possible to reschedule to following
     applies;

-   Namtai undertakes to keep such material in stock free of charge for the
     first three months after the concerned month. From month four to nine after
     such event SEMC will cover the interest cost of the listed items based upon
     an reasonable interest rate and reasonable warehousing cost for the items
     listed herein. After this nine months period Supplier may claim that this
     liability undertaking by SEM shall be executed.

-   In an event of excess material Namtai undertakes to make their best effort
     to cancel any outstanding purchase order of components and to

<PAGE>

Amendment to Specific Service Agreement signed 20th March 2002

     resell or reuse any excess component prior to making any claim to SEMC

-   SEMC will assume liability for scrap of the above material provided cause of
     scrap is solely at SEM and prior written approval to scrap. SEMCs maximum
     liability is limited to direct material and the maximum liability figure is
     defined by the liability model using the applicable forecast volume,
     component lead-time and prices.

-   SEMC shall have the option to have the material manufactured to finished
     Products at agreed price instead of scrapping the material.

     If no notice is given to SEMC within one week after the receipt of revised
     forecast or actual monthly call off volume it is deemed that the revised
     forecast is accepted (i.e. No claim is to be made later nor any objection
     that the increased volume is not possible to meet)

     Any delay in delivery of the Products, caused by Supplier will in full
     release Sony Ericsson from its liability under this amendment.

     Any undertaking of SEMC and Namtai as defined herein shall be limited in
     time to 30th June 2003.

     Lund 15th October 2002

     Sony Ericsson Mobile Communications AB

     /s/ Anna Green
     ---------------------------------------------------
     Anna Green
     Senior Manager
     Sony Ericsson Mobile Communications AB
     Project Sourcing, Accessories

     Nam Tai Electronic and Electrical Products Ltd

     /s/  Karene Wong
     ---------------------------------------------------
     Karene Wong
     Nam Tai Electronic and Electrical Products Ltd

<PAGE>

                                                                     Enclosure A

                   CALCULATION OF FORECAST LIABILITY                  2002-09-30

         PRODUCT INFORMATION

Part no:                             MCA25
Description                          Camera
Project                              August

Forcast dated                            2002-10-15
Leadtime, Call off. Days                         10
Lead time, Prod. Weeks                           16
Liability per month                  30th September
                                     --------------
Product Price                                 24,33
                                     --------------

<TABLE>
<CAPTION>
Leadtime Months                                1                2            3                 4             5             6
----------------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>               <C>           <C>              <C>           <C>              <C>
Accumulated BOM cost per month, (USD)         21,18            21,18         19,69            14,84          5,85              0
% liability per month over leadtime             100%             100%           70%              40%           30%             0%

Forecast month                              October         November       December         January       February        March
--------------                              -------         --------       --------         -------       --------        -----

Average forecast per month                  208 000          250 000       300 000          450 000       600 000        600 000
Liability per month, (USD)                4 405 440        5 295 000     4 134 900        2 671 200     1 053 000              0
Total liability, (USD)                   17 559 540
</TABLE>

Namtai August Forecast model Enclosure 1.xls Forecast model           2002-10-16

                                                                               1
<PAGE>

                                                                     Enclosure B

CALCULATION OF FORECAST LIABILITY                                       9-30-02

                   [CALCULATION OF FORECAST LIABILITY GRAPH]

Internal time Namtai for logistical processes                Component lead time

Namtai August Forecast model Enclosure 1.xls        Internal Leadtime, Principle

                                                                               1
<PAGE>

                                                    Enclosure 2.1           1(3)

                                                    Agreement #:

                                                    Date: March 22, 2002

                        SPECIFIC PURCHASE AGREEMENT (SPA)

                           entered into by and between

                NAM TAI ELECTRONIC & ELECTRICAL PRODUCTS LTD, HONG-KONG,

                                       and

              SONY ERICSSON MOBILE COMMUNICATIONS AB, LUND, SWEDEN

TERM OF AGREEMENT  FROM:   2002-03-20

                   TO:     2002-12-31.

                           The term of agreement relates to:
                           Order placements

ENCLOSURE(s):              Price and Product definitions.

GENERAL CONDITIONS:        The general terms and conditions of Agreement:
                           READ:2001 -48098,

COMMERCIAL CONDITIONS

Sony Ericsson Companies not listed below might also buy goods from the Seller.
Such purchases shall not affect Seller's ability to deliver goods according to
this SPA.

The prices contained in this SPA are based on the basic conditions set forth
below. Deviations therefrom are indicated.

<TABLE>
<CAPTION>
            Valid for                                  Terms of          Terms of         Price deviation
             (area)                     Currency       payment           delivery              (%)
------------------------------------------------------------------------------------------------------------
<S>                                     <C>            <C>             <C>                <C>
BASE CONDITIONS - VALID UNLESS            USD          30 days         FCA Hong Kong              N/A
OTHERWISE STATED BELOW                                 net
------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------
</TABLE>

                                                                        Initials

<PAGE>

                                                                            2(3)

                                                    Agreement #:

                                                    Date: March 22, 2002

The Sony Ericsson companies listed below may call off volumes under this SPA
incorporating the general conditions stated above.

<TABLE>
<CAPTION>
         SONY ERICSSON COMPANY                                COUNTRY                      LOCATION
--------------------------------------------------------------------------------------------------------------
<S>                                                    <C>                      <C>
 Sony Ericsson Mobile Communications AB                Sweden                   Lund
--------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------
</TABLE>

The subcontractors fisted below are authorized to call off volumes under this
SPA incorporating the general conditions stated above. Such authorization is
limited to products purchased for Sony Ericsson.

<TABLE>
<CAPTION>
            SUBCONTRACTOR                                     COUNTRY                     LOCATION
--------------------------------------------------------------------------------------------------------------
<S>                                                    <C>                      <C>
Flextronics International Sweden AB                    Sweden                   Linkoping
--------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------
</TABLE>

PRODUCT CERTIFICATES

If applicable and upon request, the Seller shall provide to Sony Ericsson
product certificates regarding country of origin, preferential origin or export
classification etc.

CONTACT PERSONS - commercial issues:

Wong Ivan Shiu                           Maths Gylling__________________________

Phone +852 22631051                      Phone +46-46-192879____________________

CONTACT PERSONS - technical issues :

SP-Zhang                                 _______________________________________

Phone +86 755 7495818 Ext.3210           Phone _________________________________

SIGNATURES

Hong Kong, 2001-12-20                     Lund, 2001-12-20

NamTai Electronic & Electrical           Sony Ericsson Mobile Communications AB
Products Ltd

/s/ Karene Wong                          /s/ Bill Lichtensteiger
-------------------------------------    ---------------------------------------
Karene  Wong
Managing  Director                       Bill Lichtensteiger
                                         Director, Project Sourcing
                                         M2M & Accessories

                                                                        Initials
<PAGE>

                                                                            3(3)

                                                            Agreement #:

                                                            Date: March 22, 2002

Enclosure: Price and Product definitions.

         Product.

         Specification of the Product, (Camera "August")

         Part number DPY 901 334

         Bill of Material as per 13132-DPY 901 334 latest revisions.

         Product Specification as per document list: 1095-DPY 901 334 latest
         edition.

         Prices.

         Price model to be applied for calculating the purchase price as per
         Enclosure A The final prices to be agreed prior to 30th June 2002.

         Delivery.

         Actual dates of delivery will be defined in each call-off order.
         Delivery leadtime for call off orders is 10 days for generic products
         and 20 days for customised version if applicable.

         Call off orders will among other items define actual quantity.

         Flextronics International Sweden AB.

         Flextronics will perform the call-off and orderhandling. All invoices
         shall be addressed to Flextronics.

         Flextronics shall not have access to pricemodels or any other
         commercial information, only total price.

                                                                        Initials
<PAGE>

                                                                            1(3)

[SONY ERICSSON LOGO]

                                                     Confidential
                                                     AGREEMENT
Prepared (also subject responsible if other)         No.
LD/SEMC/INYD Ola Pantzar

Approved                                   Checked   Date         Rev  Reference
LD/SEMC/INY Anna Green                               2002-06-12    C

                                                     NAM TAI ELECTRONIC &
                                                     ELECTRICAL PRODUCTS Ltd.
                                                     15th Floor China Merchant
                                                     Tower,
                                                     Shun Tak Centre,
                                                     168-200 Connaught Road
                                                     Central,
                                                     Hong Kong

CONDITIONAL RISK ORDER.

We hereby authorise NAM TAI ELECTRONIC & ELECTRICAL PRODUCTS Ltd, 15th Floor,
China Merchants Tower, Shun Tak Centre, 168-200 Connaught Road Central, Hong
Kong, hereinafter called Supplier, to initiate and perform the procurement of
the August camera. This risk order replaces all previous undertakings regarding
liability of purchased components issued by us, including the one stated in
Enclosure 16.1 of the SSA dated 20th March 2002. This risk order will be
replaced with a new fore cast model including liability prior to August 2002.

<TABLE>
<CAPTION>
Part number         Description         Leadtime, Weeks         Price, USD
--------------------------------------------------------------------------
<S>                 <C>                 <C>                     <C>
                    Sensor                   12                    3,30
--------------------------------------------------------------------------
                    Flash memory             12                    1,30
--------------------------------------------------------------------------
                    RAM memory               12                    1,80
--------------------------------------------------------------------------
                    Lens                     12                    2,75
--------------------------------------------------------------------------
                    Regulator                 9                    0,13
--------------------------------------------------------------------------
                    Regulator                 9                    0,14
--------------------------------------------------------------------------
                    Tan Cap                   9                    0,25
--------------------------------------------------------------------------
                    Tact Switch               8                    0,12
--------------------------------------------------------------------------
                    Crystal                   8                     0,3
--------------------------------------------------------------------------
Total                                                             10,09 USD
</TABLE>

In addition to these components this risk order also includes the procurement of
310.000 units of the ASIC, CT100A1-BG BGA160 called "ARGUS" from C-Tech (6,45
USD for the first 50.000,5,95 USD per unit for subsequent 50.000 units and 5.85
USD for subsequent units)

The riskorder/authorization is limited to 4.976.400 USD. (10.09
310.000+6,45*50.000+5,95*50.000+5,85*210.000)

<PAGE>

                                                                            2(3)

[SONY ERICSSON LOGO]

                                                     Confidential
                                                     AGREEMENT
Prepared (also subject responsible if other)         No.
LD/SEMC/INYD Ola Pantzar

Approved                                   Checked   Date         Rev  Reference
LD/SEMC/INY Anna Green                               2002-06-12    C

The material is solely intended to be used for the manufacturing of 310,000
units of the Camera August, part number: DRY 901334, (Product). See Specific
Service and Purchase Agreement, SSPA, dated 20th March 2002 for further product
information. The purchase and delivery of the Product manufactured with this
material will be in accordance with the same agreement.

The delivery schedule of the Product will be; 40.000 pcs August 2002, 60.000 pcs
mid September 2002 and 30.000 pcs end of September 2002, 180.000 pcs end October
2002. Formal P.O will be issued as soon as the Product has been fully qualified
and approved by Sony Ericsson as defined in the SSA above. (Delivery of Products
for qualification is scheduled to June 2002)

Supplier will (i) be responsible for the performance of all activities related
to this authorization, (ii) be liable for all cost related hereto except as
explicitly stated below, (iii) store and maintain the material of the Product at
own cost. The material shall be kept separate from other identical parts or
material at supplier.

Supplier undertakes to make his best efforts to cancel any outstanding purchase
order of components or to resell or reuse any excess component prior to making
any claim to Sony Ericsson. Supplier undertakes to keep such material in stock
free of charge for the first three months after the latest production lot. From
month four to nine after such event Sony Ericsson will cover the interest cost
of the listed items based upon an reasonable interest rate and reasonable
warehousing cost for the items listed herein. After this nine months period
Supplier may claim that this liability undertaking by Sony Ericsson shall be
executed.

Sony Ericsson Mobile Communications AB, SEM, will assume liability for scrap of
the above material provided cause of scrap is solely at SEM and prior written
approval to scrap. SEMs maximum liability is limited to direct material and the
above defined total sum plus 1.5 % as material burden adder. (The material
burden adder is unique for this risk order; it may not form a precedent for
future orders.)

Sony Ericsson shall have the option to have the material manufactured to
finished Products at agreed price instead of scrapping the material.

Any delay in delivery of the Products, caused by Supplier will in full release
Sony Ericsson from its liability under this risk order.

Any liability of Sony-Ericsson as defined herein is limited in time to 30th June
2003. After said date or when formal purchase order is issued, which ever is
first, this risk order is no longer in effect.

<PAGE>

                                                                            3(3)

[SONY ERICSSON LOGO]

                                                     Confidential
                                                     AGREEMENT
Prepared (also subject responsible if other)         No.
LD/SEMC/INYD Ola Pantzar

Approved                                   Checked   Date         Rev  Reference
LD/SEMC/INY Anna Green                               2002-06-12    C

Supplier is requested to confirm this risk order within 10 days. If not
confirmed in due time this risk order is nil and void.

Kind Regards

/s/ Anna Green

Anna Green
Senior Manager
Sony Ericsson Mobile Communications AB
Project Sourcing Accessories

<PAGE>

                                                                            1(3)

[SONY ERICSSON LOGO]

                                                     Confidential
                                                     AGREEMENT
Prepared (also subject responsible if other)         No.
LD/SEMC/INYD Ola Pantzar

Approved                                   Checked   Date         Rev  Reference
LD/SEMC/INY Anna Green                               2002-06-17    D

                                                     NAM TAI ELECTRONIC &
                                                     ELECTRICAL PRODUCTS Ltd.
                                                     15th Floor China
                                                     Merchant Tower,
                                                     Shun Tak Centre,
                                                     168-200 Connaught Road
                                                     Central,
                                                     Hong Kong

CONDITIONAL RISK ORDER.

We hereby authorise NAM TAI ELECTRONIC & ELECTRICAL PRODUCTS Ltd, 15th Floor,
China Merchants Tower, Shun Tak Centre, 168-200 Connaught Road Central, Hong
Kong, hereinafter called Supplier, to initiate and perform the procurement of
material required for delivery of 310.000 units of the August camera. This risk
order replaces all previous undertakings regarding liability of purchased
components issued by us, including the one stated in Enclosure 16.1 of the SSA
dated 20th March 2002 and the conditional risk order dated 12th June 2002, issue
C, This risk order will be replaced with a new fore cast model including
liability prior to August 2002.

<TABLE>
<CAPTION>
Part number         Description         Leadtime, Weeks         Price, USD
--------------------------------------------------------------------------
<S>                 <C>                 <C>                     <C>
                    Sensor                   12                    3,30
--------------------------------------------------------------------------
                    Flash memory             12                    1,30
--------------------------------------------------------------------------
                    RAM memory               12                    1,80
--------------------------------------------------------------------------
                    Lens                     12                    2,75
--------------------------------------------------------------------------
                    Regulator                 9                    0,13
--------------------------------------------------------------------------
                    Regulator                 9                    0,14
--------------------------------------------------------------------------
                    Tan Cap                   9                    0,25
--------------------------------------------------------------------------
                    Tact Switch               8                    0,12
--------------------------------------------------------------------------
                    Crystal                   8                     0,3
--------------------------------------------------------------------------
Total                                                             10,09 USD
</TABLE>

In addition to these components this risk order also includes the procurement of
310.000 units of the ASIC, CT100A1-BG BGA160 called "ARGUS" from C-Tech (6,45
USD for the first 50.000, 5,95 USD per unit for subsequent 50.000 units and 5.85
USD for subsequent units)

The riskorder/authorization is limited to 5.295.200 USD. (10.09
330.000+6,45*50.000+5,95*50.000+5,85*230.000)

<PAGE>

                                                                            2(3)

[SONY ERICSSON LOGO]

                                                     Confidential
                                                     AGREEMENT
Prepared (also subject responsible if other)         No.
LD/SEMC/INYD Ola Pantzar

Approved                                   Checked   Date         Rev  Reference
LD/SEMC/INY Anna Green                               2002-06-17    D

The material is solely intended to be used for the manufacturing of 330.000
units of the Camera August, part number: DPY 901334, (Product). See Specific
Service and Purchase Agreement, SSPA, dated 20th March 2002 for further product
information. The purchase and delivery of the Product manufactured with this
material will be in accordance with the same agreement.

The delivery schedule of the Product will be; 40.000 pcs August 2002,60,000 pcs
mid September 2002 and 30.000 pcs end of September 2002,200.000 pcs end October
2002. Formal P.O will be issued as soon as the Product has been fully qualified
and approved by Sony Ericsson as defined in the SSA above. (Delivery of Products
for qualification is scheduled to June 2002)

Supplier will (i) be responsible for the performance of all activities related
to this authorization, (ii) be liable for all cost related hereto except as
explicitly stated below, (iii) store and maintain the material of the Product at
own cost. The material shall be kept separate from other identical parts or
material at supplier.

Supplier undertakes to make his best efforts to cancel any outstanding purchase
order of components or to resell or reuse any excess component prior to making
any claim to Sony Ericsson. Supplier undertakes to keep such material in stock
free of charge for the first three months after the latest production lot. From
month four to nine after such event Sony Ericsson will cover the interest cost
of the listed items based upon an reasonable interest rate and reasonable
warehousing cost for the items listed herein. After this nine months period
Supplier may claim that this liability undertaking by Sony Ericsson shall be
executed.

Sony Ericsson Mobile Communications AB, SEM, will assume liability for scrap of
the above material provided cause of scrap is solely at SEM and prior written
approval to scrap. SEMs maximum liability is limited to direct material and the
above defined total sum plus 1,5 % as material burden adder. (The material
burden adder is unique for this risk order; it may not form a precedent for
future orders.)

Sony Ericsson shall have the option to have the material manufactured to
finished Products at agreed price instead of scrapping the material.

Any delay in delivery of the Products, caused by Supplier will in full release
Sony Ericsson from its liability under this risk order.

Any liability of Sony-Ericsson as defined herein is limited in time to 30th June
2003. After said date or when formal purchase order is issued, which ever is
first, this risk order is no longer in effect.

<PAGE>

                                                                            3(3)

[SONY ERICSSON LOGO]

                                                     Confidential
                                                     AGREEMENT
Prepared (also subject responsible it other)         No.
LD/SEMC/INYD Ola Pantzar

Approved                                   Checked   Date         Rev  Reference
LD/SEMC/INY Anna Green                               2002-06-17    D

Supplier is requested to confirm this risk order within 10 days. If not
confirmed in due time this risk order is nil and void.

Kind Regards

/s/ Anna Green

Anna Green
Senior Manager
Sony Ericsson Mobile Communications AB
Project Sourcing, Accessories

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