Document:

EXCLUSIVE
OPTION AGREEMENT

     

    This
Exclusive Option Agreement (this “Agreement”) is executed by and among the
following Parties as of the 20th day of
December, 2007 in JINAN, the People’s Republic of China (“China” or the
“PRC”):

     

    
      	
              Party A:

            	
              Trunkbow
      Asia Pacific(Shandong) Co., Ltd, a Company organized and existing under
      the laws of the PRC, with its address at the sixth floor, Main building,
      Shanda Technology Industrial Zone, Yingxiu Road, Hi-tech Development
      District, Jinan;

            

    

     

    
      	
              Party B:

            	
              Wanchun HOU, a Chinese
      citizen with Chinese Identification No.: 370102196509123716;
      and

            

    

     

    
      	
              Party C:

            	
              Trunkbow
      Technologies (Shenzhen) Co., Ltd., a limited liability company organized
      and existing under the laws of the PRC, with its address at 25E, East
      Building, Guangye Center, Fuhua Road, Futian District,
      Shenzhen.

            

    

     

    In this
Agreement, each of Party A, Party B and Party C shall be referred to as a
“Party” respectively, and they shall be collectively referred to as the
“Parties”.

     

    Whereas:

     

    
      	
               
      

            	
              1.

            	
              Party
      B holds 40% of the equity interest in Party
C;

            

    

     

    
      	
               
      

            	
              2.

            	
              Party
      A and Party B executed a Loan Agreement on December 20, 2007 (the “Loan
      Agreement”).

            

    

     

    Now
therefore, upon mutual discussion and negotiation, the Parties have reached the
following agreement:

     

    
      	
              1.

            	
              Sale and Purchase of
      Equity Interest

            

    

     

    
      	
               
      

            	
              1.1

            	
              Option
      Granted

            

    

     

    In
consideration of the payment of RMB 10 by Party A, the receipt and adequacy of
which is hereby acknowledged by Party B, Party B hereby irrevocably grants Party
A an irrevocable and exclusive right to purchase, or designate one or more
persons (each, a “Designee”) to purchase the equity interests in Party C then
held by Party B once or at multiple times at any time in part or in whole at
Party A’s sole and absolute discretion to the extent permitted by Chinese laws
and at the price described in Section 1.3 herein (such right being the “Equity
Interest Purchase Option”). Except for Party A and the Designee(s), no other
person shall be entitled to the Equity Interest Purchase Option or other rights
with respect to the equity interests of Party B. Party C hereby agrees to the
grant by Party B of the Equity Interest Purchase Option to Party A. The term
“person” as used herein shall refer to individuals, corporations, partnerships,
partners, enterprises, trusts or non-corporate organizations.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              1.2

            	
              Steps for Exercise of
      Equity Interest Purchase
Option

            

    

     

    Subject
to the provisions of the laws and regulations of China, Party A may exercise the
Equity Interest Purchase Option by issuing a written notice to Party B (the
“Equity Interest Purchase Option Notice”), specifying: (a) Party A’s decision to
exercise the Equity Interest Purchase Option; (b) the portion of equity
interests to be purchased from Party B (the “Optioned Interests”); and (c) the
date for purchasing the Optioned Interests and/or the date for transfer of the
Optioned Interests.

     

    
      	
               
      

            	
              1.3

            	
              Equity Interest
      Purchase Price

            

    

     

    Unless an
appraisal is required by the laws of China applicable to the Equity Interest
Purchase Option when exercised by Party A, the purchase price of the Optioned
Interests (the “Equity Interest Purchase Price”) shall equal the actual capital
contributions paid in the registered capital of Party C by Party B for the
Optioned Interests.

     

    
      	
               
      

            	
              1.4

            	
              Transfer of Optioned
      Interests

            

    

     

    For each
exercise of the Equity Interest Purchase Option:

     

    
      	
               
      

            	
              1.4.1

            	
              Party
      B shall cause Party C to promptly convene a shareholders’ meeting, at
      which a resolution shall be adopted approving Party B’s transfer of the
      Optioned Interests to Party A and/or the
  Designee(s);

            

    

     

    
      	
               
      

            	
              1.4.2

            	
              Party
      B shall execute a share transfer contract with respect to each transfer
      with Party A and/or each Designee (whichever is applicable), in accordance
      with the provisions of this Agreement and the Equity Interest Purchase
      Option Notice regarding the Optioned
Interests;

            

    

     

    
      	
               
      

            	
              1.4.3

            	
              The
      relevant Parties shall execute all other necessary contracts, agreements
      or documents, obtain all necessary government licenses and permits and
      take all necessary actions to transfer valid ownership of the Optioned
      Interests to Party A and/or the Designee(s), unencumbered by any security
      interests, and cause Party A and/or the Designee(s) to become the
      registered owner(s) of the Optioned Interests. For the purpose of this
      Section and this Agreement, “security interests” shall include securities,
      mortgages, third party’s rights or interests, any stock options,
      acquisition right, right of first refusal, right to offset, ownership
      retention or other security arrangements, but shall be deemed to exclude
      any security interest created by this Agreement and Party B’s Share Pledge
      Agreement. “Party B’s Share Pledge Agreement” as used in this Section and
      this Agreement shall refer to the Share Pledge Agreement (“Share Pledge
      Agreement”) executed by and among Party A, Party B and Party C on or
      before the date hereof, whereby Party B pledges all of its equity
      interests in Party C to Party A, in order to guarantee Party C’s
      performance of its obligations under the Exclusive Business Corporation
      Agreement executed by and between Party C and Party
  A.

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              1.5

            	
              Payment of the Equity
      Interest Purchase Price

            

    

     

    The
Parties have agreed in the Loan Agreement that any proceeds obtained by Party B
through the transfer of its equity interests in Party C shall be used for
repayment of the loan provided by Party A in accordance with the Loan Agreement.
Accordingly, upon exercise of the Equity Interest Purchase Option, Party A may
elect to make payment of the Equity Interest Purchase Price through cancellation
of the outstanding amount of the loan owed by Party B to Party A, in which case
Party A shall not be required to pay any additional Equity Interest Purchase
Price to Party B.

     

    
      	
              2.

            	
              Covenants

            

    

     

    
      	
               
      

            	
              2.1

            	
              Covenants regarding
      Party C

            

    

     

    Party B
(as the shareholders of Party C) and Party C hereby covenant as
follows:

     

    
      	
               
      

            	
              2.1.1

            	
              Without
      the prior written consent of Party A, they shall not in any manner
      supplement, change or amend the articles of association and bylaws of
      Party C, increase or decrease its registered capital, or change its
      structure of registered capital in other
  manners;

            

    

     

    
      	
               
      

            	
              2.1.2

            	
              They
      shall maintain Party C’s corporate existence in accordance with good
      financial and business standards and practices by prudently and
      effectively operating its business and handling its
    affairs;

            

    

     

    
      	
               
      

            	
              2.1.3

            	
              Without
      the prior written consent of Party A, they shall not at any time following
      the date hereof, sell, transfer, mortgage or dispose of in any manner any
      assets of Party C or legal or beneficial interest in the business or
      revenues of Party C, or allow the encumbrance thereon of any security
      interest;

            

    

     

    
      	
               
      

            	
              2.1.4

            	
              Without
      the prior written consent of Party A, they shall not incur, inherit,
      guarantee or suffer the existence of any debt, except for (i) debts
      incurred in the ordinary course of business other than through loans; and
      (ii) debts disclosed to Party A for which Party A’s written consent has
      been obtained;

            

    

     

    
      	
               
      

            	
              2.1.5

            	
              They
      shall always operate all of Party C’s businesses during the ordinary
      course of business to maintain the asset value of Party C and refrain from
      any action/omission that may affect Party C’s operating status and asset
      value;

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              2.1.6

            	
              Without
      the prior written consent of Party A, they shall not cause Party C to
      execute any major contract, except the contracts in the ordinary course of
      business (for purpose of this subsection, a contract with a value
      exceeding RMB 500,000 shall be deemed a major
  contract);

            

    

     

    
      	
               
      

            	
              2.1.7

            	
              Without
      the prior written consent of Party A, they shall not cause Party C to
      provide any person with any loan, credit or
  security;

            

    

     

    
      	
               
      

            	
              2.1.8

            	
              They
      shall provide Party A with information on Party C’s business operations
      and financial condition at Party A’s
request;

            

    

     

    
      	
               
      

            	
              2.1.9

            	
              If
      requested by Party A, they shall procure and maintain insurance in respect
      of Party C’s assets and business from an insurance carrier acceptable to
      Party A, at an amount and type of coverage typical for companies that
      operate similar businesses;

            

    

     

    
      	
               
      

            	
              2.1.10

            	
              Without
      the prior written consent of Party A, they shall not cause or permit Party
      C to merge, consolidate with, acquire or invest in any
    person;

            

    

     

    
      	
               
      

            	
              2.1.11

            	
              They
      shall immediately notify Party A of the occurrence or possible occurrence
      of any litigation, arbitration or administrative proceedings relating to
      Party C’s assets, business or
revenue;

            

    

     

    
      	
               
      

            	
              2.1.12

            	
              To
      maintain the ownership by Party C of all of its assets, they shall execute
      all necessary or appropriate documents, take all necessary or appropriate
      actions and file all necessary or appropriate complaints or raise
      necessary and appropriate defenses against all
  claims;

            

    

     

    
      	
               
      

            	
              2.1.13

            	
              Without
      the prior written consent of Party A, they shall ensure that Party C shall
      not in any manner distribute dividends to its shareholders, provided that
      upon Party A’s written request, Party C shall immediately distribute all
      distributable profits to its shareholders;
and

            

    

     

    
      	
               
      

            	
              2.1.14

            	
              At
      the request of Party A, they shall appoint any persons designated by Party
      A as directors of Party C.

            

    

     

    
      	
               
      

            	
              2.2

            	
              Covenants of Party B
      and Party C

            

    

     

    Party B
hereby covenants as follows:

     

    
      	
               
      

            	
              2.2.1

            	
              Without
      the prior written consent of Party A, Party B shall not sell, transfer,
      mortgage or dispose of in any other manner any legal or beneficial
      interest in the equity interests in Party C held by Party B, or allow the
      encumbrance thereon of any security interest, except for the pledge placed
      on these equity interests in accordance with Party B’s Share Pledge
      Agreement;

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              2.2.2

            	
              Party
      B shall cause the shareholders’ meeting and/or the board of directors of
      Party C not to approve the sale, transfer, mortgage or disposition in any
      other manner of any legal or beneficial interest in the equity interests
      in Party C held by Party B, or allow the encumbrance thereon of any
      security interest, without the prior written consent of Party A, except
      for the pledge placed on these equity interests in accordance with Party
      B’s Share Pledge Agreement;

            

    

     

    
      	
               
      

            	
              2.2.3

            	
              Party
      B shall cause the shareholders’ meeting or the board of directors of Party
      C not to approve the merger or consolidation with any person, or the
      acquisition of or investment in any person, without the prior written
      consent of Party A;

            

    

     

    
      	
               
      

            	
              2.2.4

            	
              Party
      B shall immediately notify Party A of the occurrence or possible
      occurrence of any litigation, arbitration or administrative proceedings
      relating to the equity interests in Party C held by Party
    B;

            

    

     

    
      	
               
      

            	
              2.2.5

            	
              Party
      B shall cause the shareholders’ meeting or the board of directors of Party
      C to vote their approval of the transfer of the Optioned Interests as set
      forth in this Agreement and to take any and all other actions that may be
      requested by Party A;

            

    

     

    
      	
               
      

            	
              2.2.6

            	
              To
      the extent necessary to maintain Party B’s ownership in Party C, Party B
      shall execute all necessary or appropriate documents, take all necessary
      or appropriate actions and file all necessary or appropriate complaints or
      raise necessary and appropriate defenses against all
    claims;

            

    

     

    
      	
               
      

            	
              2.2.7

            	
              Party
      B shall appoint any designee of Party A as director of Party C, at the
      request of Party A;

            

    

     

    
      	
               
      

            	
              2.2.8

            	
              At
      the request of Party A at any time, Party B shall promptly and
      unconditionally transfer its equity interests in Party C to Party A’s
      Designee(s) in accordance with the Equity Interest Purchase Option under
      this Agreement, and Party B hereby waives its right of first refusal to
      the respective share transfer by the other existing shareholder of Party C
      (if any); and

            

    

     

    
      	
               
      

            	
              2.2.9

            	
              Party
      B shall strictly abide by the provisions of this Agreement and other
      contracts jointly or separately executed by and among Party B, Party C and
      Party A, perform the obligations hereunder and thereunder, and refrain
      from any action/omission that may affect the effectiveness and
      enforceability thereof. To the extent that Party B has any remaining
      rights with respect to the equity interests subject to this Agreement
      hereunder or under the Share Pledge Agreement among the same parties
      hereto or under the Power of Attorney granted in favor of Party A, Party B
      shall not exercise such rights except in accordance with the written
      instructions of Party A.

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	
              3.

            	
              Representations and
      Warranties

            

    

     

    Party B
and Party C hereby represent and warrant to Party A, jointly and severally, as
of the date of this Agreement and each date of transfer of the Optioned
Interests, that:

     

    
      	
               
      

            	
              3.1

            	
              They
      have the authority to execute and deliver this Agreement and any share
      transfer contracts to which they are a party concerning the Optioned
      Interests to be transferred thereunder (each, a “Transfer Contracts”), and
      to perform their obligations under this Agreement and any Transfer
      Contracts. Party B and Party C agree to enter into Transfer Contracts
      consistent with the terms of this Agreement upon Party A’s exercise of the
      Equity Interest Purchase Option. This Agreement and the Transfer Contracts
      to which they are a party constitute or will constitute their legal, valid
      and binding obligations and shall be enforceable against them in
      accordance with the provisions
thereof;

            

    

     

    
      	
               
      

            	
              3.2

            	
              The
      execution and delivery of this Agreement or any Transfer Contracts and the
      obligations under this Agreement or any Transfer Contracts shall not: (i)
      cause any violation of any applicable laws of China; (ii) be inconsistent
      with the articles of association, bylaws or other organizational documents
      of Party C; (iii) cause the violation of any contracts or instruments to
      which they are a party or which are binding on them, or constitute any
      breach under any contracts or instruments to which they are a party or
      which are binding on them; (iv) cause any violation of any condition for
      the grant and/or continued effectiveness of any licenses or permits issued
      to either of them; or (v) cause the suspension or revocation of or
      imposition of additional conditions to any licenses or permits issued to
      either of them;

            

    

     

    
      	
               
      

            	
              3.3

            	
              Party
      B has a good and merchantable title to the equity interests in Party C he
      holds. Except for Party B’s Share Pledge Agreement, Party B has not placed
      any security interest on such equity
interests;

            

    

     

    
      	
               
      

            	
              3.4

            	
              Party
      C has a good and merchantable title to all of its assets, and has not
      placed any security interest on the aforementioned
  assets;

            

    

     

    
      	
               
      

            	
              3.5

            	
              Party
      C does not have any outstanding debts, except for (i) debt incurred in the
      ordinary course of business; and (ii) debts disclosed to Party A for which
      Party A’s written consent has been
obtained.

            

    

     

    
      	
               
      

            	
              3.6

            	
              Party
      C has complied with all laws and regulations of China applicable to asset
      acquisitions; and

            

    

     

    
      	
               
      

            	
              3.7

            	
              There
      are no pending or threatened litigation, arbitration or administrative
      proceedings relating to the equity interests in Party C, assets of Party C
      or Party C.

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      	
              4.

            	
              Effective
      Date

            

    

     

    This
Agreement shall become effective upon the date hereof, and remain effective for
a term of 10 years, and may be renewed at Party A’s election.

     

    
      	
              5.

            	
              Governing Law and
      Resolution of Disputes

            

    

     

    
      	
               
      

            	
              5.1

            	
              Governing
      law

            

    

     

    The
execution, effectiveness, construction, performance, amendment and termination
of this Agreement and the resolution of disputes hereunder shall be governed by
the laws of China.

     

    
      	
               
      

            	
              5.2

            	
              Methods of Resolution
      of Disputes

            

    

     

    In the
event of any dispute with respect to the construction and performance of this
Agreement, the Parties shall first resolve the dispute through friendly
negotiations. In the event the Parties fail to reach an agreement on the dispute
within 30 days after either Party’s request to the other Parties for resolution
of the dispute through negotiations, either Party may submit the relevant
dispute to the China International Economic and Trade Arbitration Commission for
arbitration, in accordance with its then effective arbitration rules. The
arbitration shall be conducted in Beijing, and the language used in arbitration
shall be Chinese. The arbitration award shall be final and binding on all
Parties.

     

    
      	
              6.

            	
              Taxes and
      Fees

            

    

     

    Each
Party shall pay any and all transfer and registration tax, expenses and fees
incurred thereby or levied thereon in accordance with the laws of China in
connection with the preparation and execution of this Agreement and the Transfer
Contracts, as well as the consummation of the transactions contemplated under
this Agreement and the Transfer Contracts.

     

    
      	
              7.

            	
              Notices

            

    

     

    
      	
               
      

            	
              7.1

            	
              All
      notices and other communications required or permitted to be given
      pursuant to this Agreement shall be delivered personally or sent by
      registered mail, postage prepaid, by a commercial courier service or by
      facsimile transmission to the address of such Party set forth
      below.  A confirmation copy of each notice shall also be sent by
      email.  The dates on which notices shall be deemed to have been
      effectively given shall be determined as
  follows:

            

    

     

    
      	
               
      

            	
              7.1.1

            	
              Notices
      given by personal delivery, by courier service or by registered mail,
      postage prepaid, shall be deemed effectively given on the date of delivery
      or refusal at the address specified for
notices.

            

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              7.1.2

            	
              Notices
      given by facsimile transmission shall be deemed effectively given on the
      date of successful transmission (as evidenced by an automatically
      generated confirmation of
transmission).

            

    

     

    
      	
               
      

            	
              7.2

            	
              For
      the purpose of notices, the addresses of the Parties are as
      follows:

            

    

     

    Party
A: Trunkbow Asia Pacific(Shandong) Co., Ltd

    Attn:  Ying
XIA

    Phone:0086-531-89706001

    Facsimile:0086-531-89706000

    E-mail:
xiaying@trunkbow.com

     

    Party
B:             Wanchun
HOU

    Address:             the
sixth floor, Mainbuilding, Shanda Technology Industrial Zone, Yingxiu Road,
Hi-tech Development District, Jinan

    Phone:
0086-531-67807788

     

    Party
B:             Trunkbow
Technologies (Shenzhen) Co., Ltd.

    Address:  25E,
East Building, Guangye Center, Fuhua Road, Futian District,
Shenzhen.

    Attn:  Qi
CHENG

    Phone:
0086-755-82028892

    Facsimile:
0086-755-82028883

    E-mail:
chengqi@trunkbow.com

     

    
      	
               
      

            	
              7.3

            	
              Any
      Party may at any time change its address for notices by a notice delivered
      to the other Parties in accordance with the terms
  hereof.

            

    

     

    
      	
              8.

            	
              Confidentiality

            

    

     

    The
Parties acknowledge that any oral or written information exchanged among them
with respect to this Agreement is confidential information. Each Party shall
maintain the confidentiality of all such information, and without obtaining the
written consent of other Parties, it shall not disclose any relevant information
to any third parties, except in the following circumstances: (a) such
information is or will be in the public domain (provided that this is not the
result of a public disclosure by the receiving Party); (b) information disclosed
as required by applicable laws or rules or regulations of any stock exchange; or
(c) information required to be disclosed by any Party to its legal counsel or
financial advisor regarding the transaction contemplated hereunder, and such
legal counsel or financial advisor are also bound by confidentiality duties
similar to the duties in this Section. Disclosure of any confidential
information by the staff members or agency hired by any Party shall be deemed
disclosure of such confidential information by such Party, which Party shall be
held liable for breach of this Agreement. This Section shall survive the
termination of this Agreement for any reason.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      	
              9.

            	
              Further
      Warranties

            

    

     

    The
Parties agree to promptly execute documents that are reasonably required for or
are conducive to the implementation of the provisions and purposes of this
Agreement and take further actions that are reasonably required for or are
conducive to the implementation of the provisions and purposes of this
Agreement.

     

    
      	
              10.

            	
              Force
      Majeure

            

    

     

    
      	
               
      

            	
              10.1

            	
              “An
      Event of Force Majeure” means an event which is unforeseen, unavoidable
      and insurmountable, and includes, but is not limited to, acts by
      government, natural force, fire, explosions, geographic changes, storm,
      flood, earthquake, tide, lightning or wars. However, the deficiencies of
      qualifications, funds or financing can not be deemed an event beyond one
      party’s reasonable control. The party that is affected by “An Event of
      Force Majeure” and seeks to exempt the performance of responsibilities
      under the provisions of this Agreement shall notify the other party the
      exemption of responsibility as soon as
possible.

            

    

     

    
      	
               
      

            	
              10.2

            	
              When
      performance of this Agreement is delayed or prevented by “An Event of
      Force Majeure” defined hereinbefore, the affected party need not assume
      any responsibilities set forth in this Agreement only to the part of the
      delayed or prevented performance, and only if the affected party uses
      reasonable and practical endeavors to perform this Agreement, the party
      that seeks to exempt his responsibilities may get the exemption of
      performance which is limited in the delayed or prevented part. Once the
      reasons of this exemption are rectified and remedied, the parties agree to
      make the greatest efforts to resume performance of this
      Agreement.

            

    

     

    
      	
              11.

            	
              Miscellaneous

            

    

     

    
      	
               
      

            	
              11.1

            	
              Amendment, change and
      supplement

            

    

     

    Any
amendment, change and supplement to this Agreement shall require the execution
of a written agreement by all of the Parties.

     

    
      	
               
      

            	
              11.2

            	
              Entire
      agreement

            

    

     

    Except
for the amendments, supplements or changes in writing executed after the
execution of this Agreement, this Agreement shall constitute the entire
agreement reached by and among the Parties hereto with respect to the subject
matter hereof, and shall supercede all prior oral and written consultations,
representations and contracts reached with respect to the subject matter of this
Agreement.

     

    
      	
               
      

            	
              11.3

            	
              Headings

            

    

     

    The
headings of this Agreement are for convenience only, and shall not be used to
interpret, explain or otherwise affect the meanings of the provisions of this
Agreement.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              11.4

            	
              Language

            

    

     

    This
Agreement is written in both Chinese and English language in three copies, each
Party having one copy with equal legal validity; in case there is any conflict
between the Chinese version and the English version, the Chinese version shall
prevail.

     

    
      	
               
      

            	
              11.5

            	
              Severability

            

    

     

    In the
event that one or several of the provisions of this Agreement are found to be
invalid, illegal or unenforceable in any aspect in accordance with any laws or
regulations, the validity, legality or enforceability of the remaining
provisions of this Agreement shall not be affected or compromised in any
respect. The Parties shall strive in good faith to replace such invalid, illegal
or unenforceable provisions with effective provisions that accomplish to the
greatest extent permitted by law and the intentions of the Parties, and the
economic effect of such effective provisions shall be as close as possible to
the economic effect of those invalid, illegal or unenforceable
provisions.

     

    
      	
               
      

            	
              11.6

            	
              Successors

            

    

     

    This
Agreement shall be binding on and shall inure to the interest of the respective
successors of the Parties and the permitted assigns of such
Parties.

     

    
      	
               
      

            	
              11.7

            	
              Survival

            

    

     

    
      	
               
      

            	
              11.7.1

            	
              Any
      obligations that occur or that are due as a result of this Agreement upon
      the expiration or early termination of this Agreement shall survive the
      expiration or early termination
thereof.

            

    

     

    
      	
               
      

            	
              11.7.2

            	
              The
      provisions of Sections 5, 7, 8 and this Section 11.8 shall survive the
      termination of this Agreement.

            

    

     

    
      	
               
      

            	
              11.8

            	
              Waivers

            

    

     

    Any Party
may waive the terms and conditions of this Agreement, provided that such a
waiver must be provided in writing and shall require the signatures of the
Parties. No waiver by any Party in certain circumstances with respect to a
breach by other Parties shall operate as a waiver by such a Party with respect
to any similar breach in other circumstances.

     

    The
Remainder of this page is intentionally left blank

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the Parties have caused their authorized representatives to
execute this Exclusive Option Agreement as of the date first above
written.

     

    
      	
              Party
      A:

            	
              Trunkbow
      Asia Pacific(Shandong) Co., Ltd

            

    

    

    
      
        
          	
                  By:

                	
                  /s/ Wanchun
      HOU

                	 
      
	
                  Name: 

                	
                  Wanchun
      HOU

                	 
      
	
                  Title:

                	
                  Legal
      Representative

                	 
      

        

      

    

     

    
      	
              Party
      B:

            	
              Wanchun
      HOU

            

    

     

    
      
        
          	
                  By:

                	
                  /s/
      Wanchun HOU

                	 
      

        

      

    

     

    
      	
              Party
      C:

            	
              Trunkbow
      Technologies (Shenzhen) Co., Ltd.

            

    

     

    
      
        
          	
                  By:

                	
                  /s/ Wanchun
      HOU

                	 
      
	
                  Name: 

                	
                  Wanchun
      HOU

                	 
      
	
                  Title:

                	
                  Legal
      Representative

                	 
      

        

      

    

     

    
      
        
        

      

      
        11EXCLUSIVE
OPTION AGREEMENT

     

    This
Exclusive Option Agreement (this “Agreement”) is executed by and among the
following Parties as of the 20th day of
December, 2007 in JINAN, the People’s Republic of China (“China” or the
“PRC”):

     

    
      	
              Party A:

            	
              Trunkbow
      Asia Pacific(Shandong) Co., Ltd, a Company organized and existing under
      the laws of the PRC, with its address at the sixth floor, Main building,
      Shanda Technology Industrial Zone, Yingxiu Road, Hi-tech Development
      District, Jinan;

            

    

     

    
      	
              Party B:

            	
              
                
                  Qiang LI, a Chinese citizen with Chinese Identification
      No.: 372427196804024513;
and

                

              

            

    

     

    
      	
              Party C:

            	
              Trunkbow
      Technologies (Shenzhen) Co., Ltd., a limited liability company organized
      and existing under the laws of the PRC, with its address at 25E, East
      Building, Guangye Center, Fuhua Road, Futian District,
      Shenzhen.

            

    

     

    In this
Agreement, each of Party A, Party B and Party C shall be referred to as a
“Party” respectively, and they shall be collectively referred to as the
“Parties”.

     

    Whereas:

     

    
      	
               
      

            	
              1.

            	
              Party
      B holds 30% of the equity interest in Party
C;

            

    

     

    
      	
               
      

            	
              2.

            	
              Party
      A and Party B executed a Loan Agreement on December 20, 2007 (the “Loan
      Agreement”).

            

    

     

    Now
therefore, upon mutual discussion and negotiation, the Parties have reached the
following agreement:

     

    
      	
              1.

            	
              Sale and Purchase of
      Equity Interest

            

    

     

    
      	
               
      

            	
              1.1

            	
              Option
      Granted

            

    

     

    In
consideration of the payment of RMB 10 by Party A, the receipt and adequacy of
which is hereby acknowledged by Party B, Party B hereby irrevocably grants Party
A an irrevocable and exclusive right to purchase, or designate one or more
persons (each, a “Designee”) to purchase the equity interests in Party C then
held by Party B once or at multiple times at any time in part or in whole at
Party A’s sole and absolute discretion to the extent permitted by Chinese laws
and at the price described in Section 1.3 herein (such right being the “Equity
Interest Purchase Option”). Except for Party A and the Designee(s), no other
person shall be entitled to the Equity Interest Purchase Option or other rights
with respect to the equity interests of Party B. Party C hereby agrees to the
grant by Party B of the Equity Interest Purchase Option to Party A. The term
“person” as used herein shall refer to individuals, corporations, partnerships,
partners, enterprises, trusts or non-corporate organizations.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              1.2

            	
              Steps for Exercise of
      Equity Interest Purchase
Option

            

    

     

    Subject
to the provisions of the laws and regulations of China, Party A may exercise the
Equity Interest Purchase Option by issuing a written notice to Party B (the
“Equity Interest Purchase Option Notice”), specifying: (a) Party A’s decision to
exercise the Equity Interest Purchase Option; (b) the portion of equity
interests to be purchased from Party B (the “Optioned Interests”); and (c) the
date for purchasing the Optioned Interests and/or the date for transfer of the
Optioned Interests.

     

    
      	
               
      

            	
              1.3

            	
              Equity Interest
      Purchase Price

            

    

     

    Unless an
appraisal is required by the laws of China applicable to the Equity Interest
Purchase Option when exercised by Party A, the purchase price of the Optioned
Interests (the “Equity Interest Purchase Price”) shall equal the actual capital
contributions paid in the registered capital of Party C by Party B for the
Optioned Interests.

     

    
      	
               
      

            	
              1.4

            	
              Transfer of Optioned
      Interests

            

    

     

    For each
exercise of the Equity Interest Purchase Option:

     

    
      	
               
      

            	
              1.4.1

            	
              Party
      B shall cause Party C to promptly convene a shareholders’ meeting, at
      which a resolution shall be adopted approving Party B’s transfer of the
      Optioned Interests to Party A and/or the
  Designee(s);

            

    

     

    
      	
               
      

            	
              1.4.2

            	
              Party
      B shall execute a share transfer contract with respect to each transfer
      with Party A and/or each Designee (whichever is applicable), in accordance
      with the provisions of this Agreement and the Equity Interest Purchase
      Option Notice regarding the Optioned
Interests;

            

    

     

    
      	
               
      

            	
              1.4.3

            	
              The
      relevant Parties shall execute all other necessary contracts, agreements
      or documents, obtain all necessary government licenses and permits and
      take all necessary actions to transfer valid ownership of the Optioned
      Interests to Party A and/or the Designee(s), unencumbered by any security
      interests, and cause Party A and/or the Designee(s) to become the
      registered owner(s) of the Optioned Interests. For the purpose of this
      Section and this Agreement, “security interests” shall include securities,
      mortgages, third party’s rights or interests, any stock options,
      acquisition right, right of first refusal, right to offset, ownership
      retention or other security arrangements, but shall be deemed to exclude
      any security interest created by this Agreement and Party B’s Share Pledge
      Agreement. “Party B’s Share Pledge Agreement” as used in this Section and
      this Agreement shall refer to the Share Pledge Agreement (“Share Pledge
      Agreement”) executed by and among Party A, Party B and Party C on or
      before the date hereof, whereby Party B pledges all of its equity
      interests in Party C to Party A, in order to guarantee Party C’s
      performance of its obligations under the Exclusive Business Corporation
      Agreement executed by and between Party C and Party
  A.

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              1.5

            	
              Payment of the Equity
      Interest Purchase Price

            

    

     

    The
Parties have agreed in the Loan Agreement that any proceeds obtained by Party B
through the transfer of its equity interests in Party C shall be used for
repayment of the loan provided by Party A in accordance with the Loan Agreement.
Accordingly, upon exercise of the Equity Interest Purchase Option, Party A may
elect to make payment of the Equity Interest Purchase Price through cancellation
of the outstanding amount of the loan owed by Party B to Party A, in which case
Party A shall not be required to pay any additional Equity Interest Purchase
Price to Party B.

     

    
      	
              2.

            	
              Covenants

            

    

     

    
      	
               
      

            	
              2.1

            	
              Covenants regarding
      Party C

            

    

     

    Party B
(as the shareholders of Party C) and Party C hereby covenant as
follows:

     

    
      	
               
      

            	
              2.1.1

            	
              Without
      the prior written consent of Party A, they shall not in any manner
      supplement, change or amend the articles of association and bylaws of
      Party C, increase or decrease its registered capital, or change its
      structure of registered capital in other
  manners;

            

    

     

    
      	
               
      

            	
              2.1.2

            	
              They
      shall maintain Party C’s corporate existence in accordance with good
      financial and business standards and practices by prudently and
      effectively operating its business and handling its
    affairs;

            

    

     

    
      	
               
      

            	
              2.1.3

            	
              Without
      the prior written consent of Party A, they shall not at any time following
      the date hereof, sell, transfer, mortgage or dispose of in any manner any
      assets of Party C or legal or beneficial interest in the business or
      revenues of Party C, or allow the encumbrance thereon of any security
      interest;

            

    

     

    
      	
               
      

            	
              2.1.4

            	
              Without
      the prior written consent of Party A, they shall not incur, inherit,
      guarantee or suffer the existence of any debt, except for (i) debts
      incurred in the ordinary course of business other than through loans; and
      (ii) debts disclosed to Party A for which Party A’s written consent has
      been obtained;

            

    

     

    
      	
               
      

            	
              2.1.5

            	
              They
      shall always operate all of Party C’s businesses during the ordinary
      course of business to maintain the asset value of Party C and refrain from
      any action/omission that may affect Party C’s operating status and asset
      value;

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              2.1.6

            	
              Without
      the prior written consent of Party A, they shall not cause Party C to
      execute any major contract, except the contracts in the ordinary course of
      business (for purpose of this subsection, a contract with a value
      exceeding RMB 500,000 shall be deemed a major
  contract);

            

    

     

    
      	
               
      

            	
              2.1.7

            	
              Without
      the prior written consent of Party A, they shall not cause Party C to
      provide any person with any loan, credit or
  security;

            

    

     

    
      	
               
      

            	
              2.1.8

            	
              They
      shall provide Party A with information on Party C’s business operations
      and financial condition at Party A’s
request;

            

    

     

    
      	
               
      

            	
              2.1.9

            	
              If
      requested by Party A, they shall procure and maintain insurance in respect
      of Party C’s assets and business from an insurance carrier acceptable to
      Party A, at an amount and type of coverage typical for companies that
      operate similar businesses;

            

    

     

    
      	
               
      

            	
              2.1.10

            	
              Without
      the prior written consent of Party A, they shall not cause or permit Party
      C to merge, consolidate with, acquire or invest in any
    person;

            

    

     

    
      	
               
      

            	
              2.1.11

            	
              They
      shall immediately notify Party A of the occurrence or possible occurrence
      of any litigation, arbitration or administrative proceedings relating to
      Party C’s assets, business or
revenue;

            

    

     

    
      	
               
      

            	
              2.1.12

            	
              To
      maintain the ownership by Party C of all of its assets, they shall execute
      all necessary or appropriate documents, take all necessary or appropriate
      actions and file all necessary or appropriate complaints or raise
      necessary and appropriate defenses against all
  claims;

            

    

     

    
      	
               
      

            	
              2.1.13

            	
              Without
      the prior written consent of Party A, they shall ensure that Party C shall
      not in any manner distribute dividends to its shareholders, provided that
      upon Party A’s written request, Party C shall immediately distribute all
      distributable profits to its shareholders;
and

            

    

     

    
      	
               
      

            	
              2.1.14

            	
              At
      the request of Party A, they shall appoint any persons designated by Party
      A as directors of Party C.

            

    

     

    
      	
               
      

            	
              2.2

            	
              Covenants of Party B
      and Party C

            

    

     

    Party B
hereby covenants as follows:

     

    
      	
               
      

            	
              2.2.1

            	
              Without
      the prior written consent of Party A, Party B shall not sell, transfer,
      mortgage or dispose of in any other manner any legal or beneficial
      interest in the equity interests in Party C held by Party B, or allow the
      encumbrance thereon of any security interest, except for the pledge placed
      on these equity interests in accordance with Party B’s Share Pledge
      Agreement;

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              2.2.2

            	
              Party
      B shall cause the shareholders’ meeting and/or the board of directors of
      Party C not to approve the sale, transfer, mortgage or disposition in any
      other manner of any legal or beneficial interest in the equity interests
      in Party C held by Party B, or allow the encumbrance thereon of any
      security interest, without the prior written consent of Party A, except
      for the pledge placed on these equity interests in accordance with Party
      B’s Share Pledge Agreement;

            

    

     

    
      	
               
      

            	
              2.2.3

            	
              Party
      B shall cause the shareholders’ meeting or the board of directors of Party
      C not to approve the merger or consolidation with any person, or the
      acquisition of or investment in any person, without the prior written
      consent of Party A;

            

    

     

    
      	
               
      

            	
              2.2.4

            	
              Party
      B shall immediately notify Party A of the occurrence or possible
      occurrence of any litigation, arbitration or administrative proceedings
      relating to the equity interests in Party C held by Party
    B;

            

    

     

    
      	
               
      

            	
              2.2.5

            	
              Party
      B shall cause the shareholders’ meeting or the board of directors of Party
      C to vote their approval of the transfer of the Optioned Interests as set
      forth in this Agreement and to take any and all other actions that may be
      requested by Party A;

            

    

     

    
      	
               
      

            	
              2.2.6

            	
              To
      the extent necessary to maintain Party B’s ownership in Party C, Party B
      shall execute all necessary or appropriate documents, take all necessary
      or appropriate actions and file all necessary or appropriate complaints or
      raise necessary and appropriate defenses against all
    claims;

            

    

     

    
      	
               
      

            	
              2.2.7

            	
              Party
      B shall appoint any designee of Party A as director of Party C, at the
      request of Party A;

            

    

     

    
      	
               
      

            	
              2.2.8

            	
              At
      the request of Party A at any time, Party B shall promptly and
      unconditionally transfer its equity interests in Party C to Party A’s
      Designee(s) in accordance with the Equity Interest Purchase Option under
      this Agreement, and Party B hereby waives its right of first refusal to
      the respective share transfer by the other existing shareholder of Party C
      (if any); and

            

    

     

    
      	
               
      

            	
              2.2.9

            	
              Party
      B shall strictly abide by the provisions of this Agreement and other
      contracts jointly or separately executed by and among Party B, Party C and
      Party A, perform the obligations hereunder and thereunder, and refrain
      from any action/omission that may affect the effectiveness and
      enforceability thereof. To the extent that Party B has any remaining
      rights with respect to the equity interests subject to this Agreement
      hereunder or under the Share Pledge Agreement among the same parties
      hereto or under the Power of Attorney granted in favor of Party A, Party B
      shall not exercise such rights except in accordance with the written
      instructions of Party A.

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	
              3.

            	
              Representations and
      Warranties

            

    

     

    Party B
and Party C hereby represent and warrant to Party A, jointly and severally, as
of the date of this Agreement and each date of transfer of the Optioned
Interests, that:

     

    
      	
               
      

            	
              3.1

            	
              They
      have the authority to execute and deliver this Agreement and any share
      transfer contracts to which they are a party concerning the Optioned
      Interests to be transferred thereunder (each, a “Transfer Contracts”), and
      to perform their obligations under this Agreement and any Transfer
      Contracts. Party B and Party C agree to enter into Transfer Contracts
      consistent with the terms of this Agreement upon Party A’s exercise of the
      Equity Interest Purchase Option. This Agreement and the Transfer Contracts
      to which they are a party constitute or will constitute their legal, valid
      and binding obligations and shall be enforceable against them in
      accordance with the provisions
thereof;

            

    

     

    
      	
               
      

            	
              3.2

            	
              The
      execution and delivery of this Agreement or any Transfer Contracts and the
      obligations under this Agreement or any Transfer Contracts shall not: (i)
      cause any violation of any applicable laws of China; (ii) be inconsistent
      with the articles of association, bylaws or other organizational documents
      of Party C; (iii) cause the violation of any contracts or instruments to
      which they are a party or which are binding on them, or constitute any
      breach under any contracts or instruments to which they are a party or
      which are binding on them; (iv) cause any violation of any condition for
      the grant and/or continued effectiveness of any licenses or permits issued
      to either of them; or (v) cause the suspension or revocation of or
      imposition of additional conditions to any licenses or permits issued to
      either of them;

            

    

     

    
      	
               
      

            	
              3.3

            	
              Party
      B has a good and merchantable title to the equity interests in Party C he
      holds. Except for Party B’s Share Pledge Agreement, Party B has not placed
      any security interest on such equity
interests;

            

    

     

    
      	
               
      

            	
              3.4

            	
              Party
      C has a good and merchantable title to all of its assets, and has not
      placed any security interest on the aforementioned
  assets;

            

    

     

    
      	
               
      

            	
              3.5

            	
              Party
      C does not have any outstanding debts, except for (i) debt incurred in the
      ordinary course of business; and (ii) debts disclosed to Party A for which
      Party A’s written consent has been
obtained.

            

    

     

    
      	
               
      

            	
              3.6

            	
              Party
      C has complied with all laws and regulations of China applicable to asset
      acquisitions; and

            

    

     

    
      	
               
      

            	
              3.7

            	
              There
      are no pending or threatened litigation, arbitration or administrative
      proceedings relating to the equity interests in Party C, assets of Party C
      or Party C.

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      	
              4.

            	
              Effective
      Date

            

    

     

    This
Agreement shall become effective upon the date hereof, and remain effective for
a term of 10 years, and may be renewed at Party A’s election.

     

    
      	
              5.

            	
              Governing Law and
      Resolution of Disputes

            

    

     

    
      	
               
      

            	
              5.1

            	
              Governing
      law

            

    

     

    The
execution, effectiveness, construction, performance, amendment and termination
of this Agreement and the resolution of disputes hereunder shall be governed by
the laws of China.

     

    
      	
               
      

            	
              5.2

            	
              Methods of Resolution
      of Disputes

            

    

     

    In the
event of any dispute with respect to the construction and performance of this
Agreement, the Parties shall first resolve the dispute through friendly
negotiations. In the event the Parties fail to reach an agreement on the dispute
within 30 days after either Party’s request to the other Parties for resolution
of the dispute through negotiations, either Party may submit the relevant
dispute to the China International Economic and Trade Arbitration Commission for
arbitration, in accordance with its then effective arbitration rules. The
arbitration shall be conducted in Beijing, and the language used in arbitration
shall be Chinese. The arbitration award shall be final and binding on all
Parties.

     

    
      	
              6.

            	
              Taxes and
      Fees

            

    

     

    Each
Party shall pay any and all transfer and registration tax, expenses and fees
incurred thereby or levied thereon in accordance with the laws of China in
connection with the preparation and execution of this Agreement and the Transfer
Contracts, as well as the consummation of the transactions contemplated under
this Agreement and the Transfer Contracts.

     

    
      	
              7.

            	
              Notices

            

    

     

    
      	
               
      

            	
              7.1

            	
              All
      notices and other communications required or permitted to be given
      pursuant to this Agreement shall be delivered personally or sent by
      registered mail, postage prepaid, by a commercial courier service or by
      facsimile transmission to the address of such Party set forth
      below.  A confirmation copy of each notice shall also be sent by
      email.  The dates on which notices shall be deemed to have been
      effectively given shall be determined as
  follows:

            

    

     

    
      	
               
      

            	
              7.1.1

            	
              Notices
      given by personal delivery, by courier service or by registered mail,
      postage prepaid, shall be deemed effectively given on the date of delivery
      or refusal at the address specified for
notices.

            

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              7.1.2

            	
              Notices
      given by facsimile transmission shall be deemed effectively given on the
      date of successful transmission (as evidenced by an automatically
      generated confirmation of
transmission).

            

    

     

    
      	
               
      

            	
              7.2

            	
              For
      the purpose of notices, the addresses of the Parties are as
      follows:

            

    

     

    Party
A: Trunkbow Asia Pacific(Shandong) Co., Ltd

    Attn:  Ying
XIA

    Phone:0086-531-89706001

    Facsimile:0086-531-89706000

    E-mail:
xiaying@trunkbow.com

     

    Party
B:             Qiang
LI

    Address:             25E, East
Building, Guangye Center, Fuhua Road, Futian District,
Shenzhen

    Phone:
0086-531-67809988

     

    Party
B:             Trunkbow
Technologies (Shenzhen) Co., Ltd.

    Address:  25E,
East Building, Guangye Center, Fuhua Road, Futian District,
Shenzhen.

    Attn:  Qi
CHENG

    Phone:
0086-755-82028892

    Facsimile:
0086-755-82028883

    E-mail:
chengqi@trunkbow.com

     

    
      	
               
      

            	
              7.3

            	
              Any
      Party may at any time change its address for notices by a notice delivered
      to the other Parties in accordance with the terms
  hereof.

            

    

     

    
      	
              8.

            	
              Confidentiality

            

    

     

    The
Parties acknowledge that any oral or written information exchanged among them
with respect to this Agreement is confidential information. Each Party shall
maintain the confidentiality of all such information, and without obtaining the
written consent of other Parties, it shall not disclose any relevant information
to any third parties, except in the following circumstances: (a) such
information is or will be in the public domain (provided that this is not the
result of a public disclosure by the receiving Party); (b) information disclosed
as required by applicable laws or rules or regulations of any stock exchange; or
(c) information required to be disclosed by any Party to its legal counsel or
financial advisor regarding the transaction contemplated hereunder, and such
legal counsel or financial advisor are also bound by confidentiality duties
similar to the duties in this Section. Disclosure of any confidential
information by the staff members or agency hired by any Party shall be deemed
disclosure of such confidential information by such Party, which Party shall be
held liable for breach of this Agreement. This Section shall survive the
termination of this Agreement for any reason.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      	
              9.

            	
              Further
      Warranties

            

    

     

    The
Parties agree to promptly execute documents that are reasonably required for or
are conducive to the implementation of the provisions and purposes of this
Agreement and take further actions that are reasonably required for or are
conducive to the implementation of the provisions and purposes of this
Agreement.

     

    
      	
              10.

            	
              Force
      Majeure

            

    

     

    
      	
               
      

            	
              10.1

            	
              “An
      Event of Force Majeure” means an event which is unforeseen, unavoidable
      and insurmountable, and includes, but is not limited to, acts by
      government, natural force, fire, explosions, geographic changes, storm,
      flood, earthquake, tide, lightning or wars. However, the deficiencies of
      qualifications, funds or financing can not be deemed an event beyond one
      party’s reasonable control. The party that is affected by “An Event of
      Force Majeure” and seeks to exempt the performance of responsibilities
      under the provisions of this Agreement shall notify the other party the
      exemption of responsibility as soon as
possible.

            

    

     

    
      	
               
      

            	
              10.2

            	
              When
      performance of this Agreement is delayed or prevented by “An Event of
      Force Majeure” defined hereinbefore, the affected party need not assume
      any responsibilities set forth in this Agreement only to the part of the
      delayed or prevented performance, and only if the affected party uses
      reasonable and practical endeavors to perform this Agreement, the party
      that seeks to exempt his responsibilities may get the exemption of
      performance which is limited in the delayed or prevented part. Once the
      reasons of this exemption are rectified and remedied, the parties agree to
      make the greatest efforts to resume performance of this
      Agreement.

            

    

     

    
      	
              11.

            	
              Miscellaneous

            

    

     

    
      	
               
      

            	
              11.1

            	
              Amendment, change and
      supplement

            

    

     

    Any
amendment, change and supplement to this Agreement shall require the execution
of a written agreement by all of the Parties.

     

    
      	
               
      

            	
              11.2

            	
              Entire
      agreement

            

    

     

    Except
for the amendments, supplements or changes in writing executed after the
execution of this Agreement, this Agreement shall constitute the entire
agreement reached by and among the Parties hereto with respect to the subject
matter hereof, and shall supercede all prior oral and written consultations,
representations and contracts reached with respect to the subject matter of this
Agreement.

     

    
      	
               
      

            	
              11.3

            	
              Headings

            

    

     

    The
headings of this Agreement are for convenience only, and shall not be used to
interpret, explain or otherwise affect the meanings of the provisions of this
Agreement.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              11.4

            	
              Language

            

    

     

    This
Agreement is written in both Chinese and English language in three copies, each
Party having one copy with equal legal validity; in case there is any conflict
between the Chinese version and the English version, the Chinese version shall
prevail.

     

    
      	
               
      

            	
              11.5

            	
              Severability

            

    

     

    In the
event that one or several of the provisions of this Agreement are found to be
invalid, illegal or unenforceable in any aspect in accordance with any laws or
regulations, the validity, legality or enforceability of the remaining
provisions of this Agreement shall not be affected or compromised in any
respect. The Parties shall strive in good faith to replace such invalid, illegal
or unenforceable provisions with effective provisions that accomplish to the
greatest extent permitted by law and the intentions of the Parties, and the
economic effect of such effective provisions shall be as close as possible to
the economic effect of those invalid, illegal or unenforceable
provisions.

     

    
      	
               
      

            	
              11.6

            	
              Successors

            

    

     

    This
Agreement shall be binding on and shall inure to the interest of the respective
successors of the Parties and the permitted assigns of such
Parties.

     

    
      	
               
      

            	
              11.7

            	
              Survival

            

    

     

    
      	
               
      

            	
              11.7.1

            	
              Any
      obligations that occur or that are due as a result of this Agreement upon
      the expiration or early termination of this Agreement shall survive the
      expiration or early termination
thereof.

            

    

     

    
      	
               
      

            	
              11.7.2

            	
              The
      provisions of Sections 5, 7, 8 and this Section 11.8 shall survive the
      termination of this Agreement.

            

    

     

    
      	
               
      

            	
              11.8

            	
              Waivers

            

    

     

    Any Party
may waive the terms and conditions of this Agreement, provided that such a
waiver must be provided in writing and shall require the signatures of the
Parties. No waiver by any Party in certain circumstances with respect to a
breach by other Parties shall operate as a waiver by such a Party with respect
to any similar breach in other circumstances.

     

    The
Remainder of this page is intentionally left blank

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the Parties have caused their authorized representatives to
execute this Exclusive Option Agreement as of the date first above
written.

     

    
      	
              Party
      A:

            	
              Trunkbow
      Asia Pacific(Shandong) Co., Ltd

            

    

    

    
      
        
          	
                  By:

                	
                  /s/ Wanchun
      HOU

                	 
      
	
                  Name: 

                	
                  Wanchun
      HOU

                	 
      
	
                  Title:

                	
                  Legal
      Representative

                	 
      

        

      

    

     

    
      	
              Party
      B:

            	
              Qiang
      LI

            

    

     

    
      
        
          	
                  By:

                	
                  /s/ Qiang
      LI

                	 
      

        

      

    

     

    
      	
              Party
      C:

            	
              Trunkbow
      Technologies (Shenzhen) Co., Ltd.

            

    

     

    
      
        
          	
                  By:

                	
                  /s/ Wanchun
      HOU

                	 
      
	
                  Name: 

                	
                  Wanchun
      HOU

                	 
      
	
                  Title:

                	
                  Legal
      Representative

                	 
      

        

      

    

     

    
      
        
        

      

      
        11

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