Document:

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EXHIBIT 4.2

Amendment to Certificate of Designation of Series A Convertible Preferred Stock

                    Amendment to Certificate of Designation
                       After Issuance of Class or Series
                           (PURSUANT TO NRS 78.1955)

Important: Read attached instructions before completing form.
                                              ABOVE SPACE IS FOR OFFICE USE ONLY

Certificate of Amendment to Certificate of DesignationFor Nevada Profit
Corporations(Pursuant to NRS 78.1955 - After Issuance of Class or Series)

1.      Name of corporation: ERF WIRELESS, INC.

2.      Stockholder approval pursuant to statute has been obtained.

3.      The class or series of stock being amended:

                SERIES A CONVERTIBLE PREFERRED STOCK $.001 PAR VALUE (the
                "Series A")

4.      By a resolution adopted by the board of directors, the certificate of
        designation is being amended as follows or the new class or series is:

The Corporation increases the number of shares of preferred stock designated as
Series A from Two Million Five Hundred Thousand (2,500,000) shares to Five
Million (5,000,000) shares. Any shares of Series A that are either (1) converted
into common stock or (2) redeemed by the Corporation may be reissued as Series
A. All other terms of the Certificate of Designation filed August 27, 2004
remain in effect and are not altered by this amendment. The holder of 100% of
the issued and outstanding shares of the Series A voted in favor of this
Amendment.

5.      Effective date of filing (optional)" ________________________________

6.      Officer Signature (Required): /s/ R/ Greg Smith, President

IMPORTANT: Failure to include any of the above information and submit the proper
fees may cause this filing to be rejected.
Filing Fee: $175.00<PAGE>

                                                                   EXHIBIT 10.1

                                  AGREEMENT OF

                     UNITED INFORMATION TECHNOLOGY CO. LTD.

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                                TABLE OF CONTENTS

CONTENTS                                                                    PAGE

1          Agreement..........................................................4

2          Loan Advance.......................................................5

3          Restrictions on transfer...........................................5

4          Pre-emptive rights.................................................7

5          Use of the loan proceeds...........................................8

6          Business of the Company............................................8

7          Board of Directors.................................................9

8          Reserved matters..................................................10

9          Continuing obligations............................................10

10         Confidentiality...................................................11

11         Financial Projections.............................................11

12         Intellectual Property.............................................13

13         Disclosure........................................................14

14         Obligations of Management & Key Employees.........................15

15         Announcements.....................................................16

16         Notices...........................................................16

17         Severability......................................................16

18         General...........................................................16

19         Whole Agreement...................................................18

20         Governing Law.....................................................18

Schedule 1 (A) The Others Shareholders.......................................19

Schedule 1 (B) The Management Shareholders...................................20

Schedule 1 (C) List of officer, key employee and key engineer................21

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Schedule 2 (A) Particulars of the Company....................................22

Schedule 2 (B) Particulars of the Subsidiary.................................23

Schedule 3 Reserved Matters..................................................24

Schedule 4 Continuing Obligations............................................27

Schedule 5 Financial Projection..............................................29

Schedule 6(A) & 6(B) Milestone for Financial Projection......................31

Schedule 7 Intellectual Property List........................................33

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1.      AGREEMENT

1.1      THIS AGREEMENT (this "AGREEMENT") is made on 12 May, 2005 by and among
         Comtech Group ("COMTECH"), a company incorporated and existing under
         the laws of the Cayman Islands, United Information Technology Co. Ltd.,
         a company incorporated and registered in British Virgin Islands ( the
         "COMPANY"), [CHINESE HERE] a wholly foreign owned enterprise
         established in the People's Republic of China (the "SUBSIDIARY"),
         certain individuals listed on Schedule 1(A) hereto (the "OTHER
         SHAREHOLDERS") and the management team list on Schedule 1(B) (the
         "MANAGEMENT SHAREHOLDERS").

NOTE: "GROUP" OR "GROUP COMPANIES" MEANS THE COMPANY AND ITS SUBSIDIARY FROM
TIME TO TIME AND "GROUP COMPANY" MEANS ANY OF THEM

1.2     WHEREAS:

(A)     The Company is a company limited by shares which is currently wholly
        owned by Comtech, particulars of which are set out in Schedule 2(A). The
        Subsidiary is a wholly foreign owned enterprise legally and beneficially
        owned by the Company, particulars of which are set out in Schedule 2(B).

(B)     Comtech intends to inject into the Company an aggregate sum of
        USD4,000,000 loan advance to the Company.

(C)     Comtech, the Company and the Other Shareholders have agreed to enter
        into this Agreement for the purposes of (i) recording the terms and
        conditions on which Comtech will extend the loan, and (ii) regulating
        the relationship between the shareholders of the Company and certain
        aspects of the affairs of the Group Company.

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2.      LOAN ADVANCE

2.1      The loan advance by Comtech to the Group Company set out in the table
         below:

         ADVANCE BY         AMOUNT                   DATE
                             USD

         COMTECH           2,500,000                 no later than 15 May 2005

         COMTECH           1,500,000                 1 August 2005
                           ---------

                           4,000,000 (Note)

NOTE:   (1) COMTECH CAN PAY OTHER CURRENCIES EQUIVALENT TO USD4M AS LOAN ADVANCE
            TO THE GROUP COMPANY.

        (2) IF MILESTONE A HAS FAILED TO ACHIEVE, THE SHORTFALL CAN BE
            COMPENSATED IN NEXT INTERVAL. COMTECH HAS ABSOLUTE DISCRETIONARY
            AUTHORITY TO DETERMINE TO FURTHER ADVANCE THE LOAN OF USD1.5M TO THE
            COMPANY OR NOT UNTIL THE MILESTONE A HAS ACHIEVED.

3.      RESTRICTIONS ON TRANSFER: RIGHT OF FIRST REFUSAL & PRIORITY CO-SALE
        RIGHT

3.1     Other Shareholders hereby severally, irrevocably and unconditionally
        undertakes with Comtech that he shall not sell, transfer or otherwise
        dispose of or create any mortgage, charge, pledge, lien or other
        encumbrance, third party rights or security interest whatsoever on or
        over or in respect of all or any of the shares in the Company (or any
        interest therein) without the prior written approval of Comtech.

3.2     (a) Subject to Clause 3.1, if any Other Shareholder (the "TRANSFERRING
        SHAREHOLDER") proposes to sell, pledge, or otherwise transfer any Shares
        (the "STOCK") or any interest therein to any person or entity then the
        other holders of any Stock at the time (the "NON-TRANSFERRING
        SHAREHOLDERS") shall have a right of first refusal (the "RIGHT OF FIRST
        REFUSAL") to purchase some or all of the Stock proposed to be sold. The
        Transferring Shareholder shall give a written notice (the "TRANSFER
        NOTICE") to the Non-transferring Shareholders describing fully the

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        proposed transfer, including the number of Stock proposed to be
        transferred, the proposed transfer price, the name and address of the
        proposed transferee, and whether the Company has exercised its right of
        first refusal, if any, with respect to that Stock. The Transfer Notice
        shall be signed both by the Transferring Shareholder and by the proposed
        transferee, and shall constitute a binding commitment of both parties
        for the transfer of that Stock. Each Non-transferring Shareholder shall
        then have the right to purchase the ratio of (a) the total number of
        Shares or Shares Equivalents of a Non-transferring Shareholder to (b)
        the total number of Shares and Share Equivalents held by all
        Non-transferring Shareholders (its "PRO RATA SHARE") of the Stock
        subject to the Transfer Notice at a price per share equal to the
        proposed per share transfer price, and on the same terms and conditions
        applicable to the proposed transfer, by delivery of a notice of exercise
        of its Right of First Refusal within 20 days after the date the Transfer
        Notice is delivered to the Non-transferring Shareholder. To the extent
        the Non-transferring Shareholders exercise their Right of First Refusal
        in accordance with the terms and conditions set forth in this Clause 3,
        the number of Shares that the Transferring Shareholder may sell to the
        proposed transferee in the transaction shall be correspondingly reduced.

3.3     If the Transferring Shareholder proposes to sell, pledge, or otherwise
        transfer any Stock or any interest therein to any person or entity,
        including another Shareholder, and not all Non-transferring Shareholders
        have elected to exercise their Right of First Refusal under Clause 3.2,
        then each Non-transferring Shareholder shall have the right, exercisable
        upon written notice to the Transferring Shareholder within 20 days after
        the date the Transfer Notice is delivered to the Non-transferring
        Shareholders, to participate in the sale of Stock on the same terms and
        conditions as the Transferring Shareholder to the extent of that
        Non-transferring Shareholder's Pro-rata Share (the "CO-SALE RIGHT").
        Notice of exercise of a Co-Sale Right shall indicate the number of
        Shares the Non-transferring Shareholder wishes to sell under its Co-Sale
        Right. Any Non-transferring Shareholder may elect to sell all or some of
        the shares of Stock then held by that Non-transferring Shareholder (or
        issuable upon conversion or exercise of any convertible debt, warrants,
        or similar securities then held by the Non-transferring Shareholders).
        To the extent the Non-transferring Shareholders exercise their Co-Sale
        Right in accordance with the terms and conditions set forth in this
        Clause 3.3, the number of Shares that the Transferring Shareholder may
        sell in the transaction shall be correspondingly reduced.

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3.4     If the Non-transferring Shareholders do not exercise their Right of
        First Refusal or their Co-Sale Right with respect to the sale of the
        Stock subject to the Transfer Notice, the Transferring Shareholder may,
        not later than 60 days following delivery to the Company and the
        Non-transferring Shareholders of the Transfer Notice, conclude a
        transfer of all of the Stock covered by the Transfer Notice on terms and
        conditions not more favourable to the transferor than those described in
        the Transfer Notice. Any proposed transfer on terms and conditions more
        favourable than those described in the Transfer Notice, as well as any
        subsequent proposed transfer of any Stock by the Transferring
        Shareholder, shall again be subject to the Right of First Refusal and
        Co-Sale Right of the Non-transferring Shareholders and shall require
        compliance by the Transferring Shareholder with the procedures described
        in this Clause 3.

3.5     Notwithstanding the above, Comtech may transfer all or any of their
        Shares to their Affiliates provided always that the transferee shall
        agree in writing with the Company (for itself and as trustee for all the
        Shareholders), as a condition to such transfer, to be bound by all of
        the provisions of any agreement relating to the Company then subsisting
        to the same extent as if such transferee were the transferor
        Shareholder.

3.6     Any sale, assignment, transfer or disposal of Shares or Shares
        Equivalents not permitted by or in accordance with this Agreement or the
        Articles shall be null and void.

4.      PRE-EMPTIVE RIGHTS

4.1     If the Company desires to issue Shares and/or Shares Equivalents in a
        transaction or series of transactions intended to raise capital ("FUND
        RAISING ISSUANCE") for the Company or any of its Subsidiaries, then the
        Shareholders shall procure that the Company shall first notify Comtech
        of the terms and conditions of such proposed issue and shall permit
        Comtech (without obligation) to subscribe (on such terms and subject to
        such conditions) up to the fraction of such securities being offered
        equal to (a) the number of Shares owned by Comtech plus the aggregate

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        number of Shares then issuable converted into and/or exchanged for
        Shares, divided by (b) the aggregate number of Shares then outstanding
        plus the aggregate number of Shares then issuable were all of the
        Company's outstanding Shares Equivalents converted into and/or exchanged
        for Shares.

4.2     For the avoidance of doubt, "Fund Raising Issuance" for the purpose of
        Sub-clause 4.1 excludes any issuance of Shares and/or Shares
        Equivalents:

        (a)   to employees of Group Companies pursuant to purchase or share
              option plans approved by the Board, which shall not exceed 20
              per cent of all shares of the Company on a fully diluted basis
              immediately subsequent to the completion of the financing
              contemplated hereby; or

        (b)   in a Qualifying IPO.

4.3     Comtech shall have fifteen (15) Business Days after receipt of such
        notice referred to in Clause 4.1 (or such longer period as the Company
        may specify) to irrevocably elect by notice to the Company in writing
        whether to subscribe for such securities on such terms. After this
        period has expired, the Company shall have up to ninety (90) days to
        complete the issuance of any securities not subscribed by Comtech;
        provided however, that if during such 90 day period, the Company desires
        to offer such securities on terms or conditions that are more favourable
        to the Stock hold by Comtech thereof in any material respect, it shall
        first re-offer such securities to Comtech pursuant to the procedures set
        forth in this Clause 4.

5.      USE OF THE LOAN PROCEEDS

        The Company undertakes to Comtech to apply the loan proceeds for the
        working capital to finance the expansion of the Business and solely
        for the purposes set forth in the business plan and budget and in
        accordance with control procedures including the payment authorisation
        procedures approved by Comtech. The Company shall not, and shall
        procure that no Group Company shall, use any proceeds for repayment of
        any debt.

6.      BUSINESS OF THE COMPANY

        The business of the Company shall be the provision of data storage
        technology.

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7.      BOARD OF THE COMPANY

7.1     The Board of Directors shall be the highest authority of the Company.
        The date of completion of this agreement shall be deemed to be the date
        of establishment of the Board of Directors.

7.2     The Board of Directors shall be composed of three (3) Directors of whom
        two (2) shall be nominated and appointed by Comtech. The remaining one
        will be nominated and appointed by Other Shareholders.

7.3     POWERS OF THE BOARD

The Board of Directors shall have the power to make all major decisions of the
Company. All major decisions shall require the approval of a simple majority of
Directors present in person or by proxy at a duly convened meeting of the Board
of Directors.

1)      The following matters shall require the approval of simple majority of
        the Directors present in person or by proxy at a duly convened meeting
        of the Board of Directors;

              a)   any increase or adjustment of the Company's total investment
                   and/or registered capital;
              b)   any amendment to the Articles of Association;
              c)   strategic management decision of the Company;
              d)   the dissolution or termination of the Company; and
              e)   all such other matters which the Board of Directors may
                   decide from time to time
              f)   any appointment or change of the Public Accounting Firm of
                   the Company for the purpose of auditing matters;
              g)   any material change in the business scope of the Company;
              h)   the Company's annual financial budget and the formulating of
                   business plan;
              i)   the creation of any Encumbrance over any of the property,
                   business or assets of the Company;
              j)   the establishment of any Board or other committee and any
                   terms on which it is to operate;
              k)   any merger or consolidation of the Company with another
                   economic organization or entity;
              l)   the approval of any settlement plan submitted to it in
                   relation to the termination of consultancy services provided
                   by the Company to other parties;

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              m)   any application for the listing of any shares or other
                   securities of the Company on any stock exchange or for
                   permission for dealings in any shares or other securities of
                   the Company in any securities market;
              n)   any change in the basis of accounting or accounting
                   principles or policies adopted by the Company other than as
                   required by law or generally accepted accounting policies
                   from time to time;
              o)   any change in the accounting period of the Company;
              p)   the raising of any indebtedness other than by way of trade
                   credit on normal commercial terms and in the ordinary course
                   of business, or the variation or termination of any agreement
                   for the raising of any such indebtedness (including but not
                   limit to early repayment);
              q)   the entering into, variation or termination of any
                   transaction by the Company with (i) a Party or (ii) any
                   Affiliate of a Party or (iii) any Director or officer of any
                   such Party or any Affiliate thereof ;
              r)   the grant of any form of options and/or convertible bonds to
                   purchase equity interest in the Company to any of its
                   Management Team and Key Employees;
              s)   any investment by the Company in any other company or
                   enterprise;
              t)   the opening of any bank accounts and designation of signing
                   authorities;
              u)   the appointment of key employee including CEO, CFO and CTO.

8.      RESERVED MATTERS

The Company undertakes to Comtech that, it shall not, and shall procure that
none of its subsidiaries shall, do any of the things listed in Schedule 3 unless
the same have been approved by board of directors.

9.      CONTINUING OBLIGATIONS

The Company undertakes to Comtech and that it shall comply with all the
obligations set out in Schedule 4.

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10.     CONFIDENTIALITY

10.1    Each party hereto undertakes with the others that it shall use all
        reasonable endeavours to ensure that any information of a secret or
        confidential nature (including, but not limit to, any of the Group
        Companies' business plan, dealings, transactions, affairs, proposals,
        inventions, business, etc.) received by it relating to the others or any
        of the others' Affiliates shall be treated as confidential and shall not
        be disclosed to any third party or utilised for personal gain or
        interest or for the benefit or interest of third parties except as
        required by law or any competent regulatory body or to the extent that
        such information is in the public domain other than through breach of
        this Sub-clause 10.1 or except in the ordinary and proper course of the
        business and operation of the Group Companies or, except, in the case of
        Comtech, the disclosure of information relating to the Company and its
        business to persons concerned in the management of Comtech, its own
        investors and any advisers acting on their behalf.

10.2    Shareholder shall not be in breach of Sub-clause 10.1 by virtue of any
        Director passing to the Shareholder who appointed him any information he
        receives as a director of the Company, or of any subsidiary of the
        Company, but nothing contained in this Agreement shall require such
        disclosure where the Director's fiduciary duty to the Company, or of any
        such subsidiary, would be breached as a result.

11      FINANCIAL PROJECTIONS

11.1    The Other Shareholders and the Company acknowledge that they have
        collectively delivered to Comtech financial projections, dated 29 April,
        2005, regarding the Group and its business (the "FINANCIAL
        PROJECTIONS"), as specifically set forth on the Financial Projection
        attached hereto as Schedule 5;

11.2    The Other Shareholders and the Company represent and warrant to Comtech
        jointly and severally that:-

(a)     All FINANCIAL PROJECTIONS have been prepared in good faith, on a
        professional workmanlike manner, and on a realistic and reasonable basis
        after careful examination and due consideration of all relevant factors;

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(b)     The FINANCIAL PROJECTIONS are not untrue or misleading in any way or
        omit to state any material fact.

11.3    SHARES OF TECHNOLOGY KNOW HOW

(a)     On the condition that the Company can generate REVENUE, NET INCOME and
        CASH INFLOW FROM OPERATION equivalent to or higher than the Financial
        Projections stated in Schedule 5, Other shareholders may transfer their
        "Technology Know How" in return for Company Shares in accordance to
        Schedule 6 (A) and 6 (B) on the condition that:-

(i)     The un- audited management account at each period ended will be reviewed
        by Comtech to ascertain the milestone is achieved or not. The year ended
        financial information will be audited by a Public Accountants Firm
        nominated by Comtech.

(b)     The Company has listed the milestone for financial projections as
        criteria for Other shareholders to transfer their "Technology Know How"
        in return for Company Shares at the end of each period/year ended as
        specifically set forth on the Milestone for Financial Projection
        attached hereto as Schedule 6 (A) and 6 (B);

(c)     At the discretionary of Comtech, who can offer to purchase the Company
        shares from Other shareholders in accordance to the timetable and terms
        as specifically set forth on the Milestone of Financial Projections
        attached hereto as Schedule 6 (A) and 6 (B).

11.4    If the audited accounts of year ended 2005 (audited by a Public
        Accountants Firm nominated by Comtech) show that Net Earnings of the
        Company is more than USD2M as specifically set forth on the Financial
        Projections attached hereto as Schedule 5, the Company may, distribute
        special bonus to Other Shareholders, management team and key employees.

11.5    If the audited accounts of year ended 2005 (audited by a Public
        Accountants Firm nominated by Comtech) show that Net Earnings of the
        Company is more than USD3M, the Company can raise fund from third
        parties, including but not limit to Venture Capital. In the transaction
        of fund raising, Comtech shall have entitled to first priority right in
        the selling of company shares to the third parties.

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11.6    As alternative to clause 11.5, the Other shareholders can purchase the
        entire shares hold by Comtech and pay back the amount due to Comtech
        plus a premium of USD2M. In no case, the proposal to crystallize this
        Sub Clause 11.6 can be later than 21 January 2006 and the agree amount
        should be paid to Comtech no later than 31 March 2006.

12      INTELLECTUAL PROPERTY

12.1    The Other Shareholders represent and warrant, jointly and severally,
        that:

(a)     The Other Shareholders independently developed and owned free and clear
        of all claims, security interests, liens and other encumbrances all
        products, tools, computer programs, specifications, source code, object
        code, graphics, devices, techniques, algorithms, processes, producers,
        packaging, drawings, designs, improvements, discoveries, concepts, user
        interfaces, software, "look and feel", development, know how, mask
        works, Internet domain names, databases, data collections, technical
        data, enterprise or business names, logos, formulae, confidential
        information, franchises, inventions, instructions, marketing materials,
        trade dress, product configurations, brands and designs and all
        documentation and media constituting, describing or relating to the
        foregoing, including manuals, memoranda and records (collectively, the
        "TECHNOLOGY").
(b)     The Other Shareholders have all right, title and interest that each of
        them may have in or to all Technology.
(c)     The possession, development, production, manufacturing, use, offering,
        marketing, licensing, distribution, sale and other exploitation by any
        Group Company of any and all Technology as now conducted or as proposed
        to be conducted does not and will not infringe, violate, misappropriate
        or otherwise interfere or conflict with any right, title or interest of
        any third party.
(d)     The Other Shareholders have not received any notice or claim (whether
        written, oral or otherwise) that:-
(i)     contests or challenges in any manner whatsoever the Other Shareholders
        ownership or rights in the Technology, or
(ii)    contests or challenges in any manner whatsoever the validity or
        enforceability of any of the Proprietary Rights of the Other
        Shareholders in the Technology, or
(e)     Each of the Other Shareholders has not assigned, transferred, licensed,
        pledged or otherwise encumbered any Technology or agreed to do so.

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(f)     No royalties, honoraria, fees or other payments are payable by a Other
        Shareholders or any of them to any third party by reason of the
        ownership, possession, sale, marketing, use or other exploitation of any
        Technology to the extent necessary for the conduct of a Group Company's
        business as now conducted or as proposed to be conducted and none (or no
        additional amounts) will be payable as a result of the consummation of
        the transactions contemplated by this Agreement.
(g)     Other Shareholders have at all times maintained and diligently enforced
        commercially reasonable procedures to protect all confidential
        information relating to the Technology. Each of them has not deposited
        any source code or other Technology in any escrow account or otherwise
        delivered such source code or other Technology to any escrow agent.
(h)     Other Shareholders allow the Group Companies to use the Technology on
        "no fee" basis up to the 31 December 2005. If the Company fail to
        achieve the milestone C and milestone D as set forth on Schedule 6(A),
        Other Shareholders allow the Group Companies to use the Technology on
        "no fee" basis up to the 31 December 2006.
(i)     All forms of Technology Know How developed after the completion date of
        this agreement belong to the Company.
(i)     The details of Technology are listed as specifically set forth on
        Schedule 7.

13      DISCLOSURE

13.1    The Other Shareholders and the Company acknowledge that all facts
        relating to the Group and any Group Company and their businesses that
        could reasonably be expected to or would have any Material Adverse
        Effect on such Group Company have been fully disclosed to Comtech or to
        their legal counsel. All information which was given in writing or
        verbally to Comtech or its representatives and professional advisers by
        the Other Shareholders and the Company in the course of the negotiations
        leading to this Agreement was when given and is now complete, true and
        accurate, taken as a whole, in all material respects and not misleading
        in any material respect. In the case of the Forecast Materials,
        including but not limit to Financial Projections, such information
        contained therein is fair and honest and made on reasonable grounds.
        There is no fact or matter which has not been disclosed which, if
        disclosed, would render any such information untrue, inaccurate or

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        misleading. The representations and warranties contained in this
        Agreement and the Documents, certificates and other documents made or
        delivered in connection herewith do not contain any untrue statement of
        material fact or omit to state any material fact necessary to make the
        statements contained therein or herein, in view of the circumstances
        under which they were made, not misleading.

14      OBLIGATIONS OF MANAGEMENT AND KEY EMPLOYEES

14.1    The Management Shareholders and Other Shareholders, and each officer,
        key employee and key engineer are currently devoting all of his or her
        business time to the conduct of the business of [CHINESE HERE]. To the
        best information, knowledge and belief of the Management Shareholders
        and Other Shareholders, there is no fact or circumstance that may
        conflict with the ability of any Other Shareholders or any officer, key
        employee or key engineer to devote all of his or her business time to
        the conduct of the business of the Group Company. To the best
        information, knowledge and belief of the Management Shareholders and
        Other Shareholders, no Management Shareholders and Other Shareholders or
        any officer, key employee or key engineer is planning to work less than
        full time at the Group Company in the future. That means the Management
        Shareholders and Other Shareholders, and each officer, key employee and
        key engineer will terminate all their relationship with [CHINESE HERE]
        except with activities which are related to facilitate the business of
        Group Company and with the written approval of board of directors of the
        Group Company in advance.

14.2    No Management Shareholders and Other Shareholders, officer, key employee
        or key engineer is currently working or, to the best information,
        knowledge and belief of the Management Shareholders and Other
        Shareholders, plans to work for a competitive enterprise, whether or not
        such Management Shareholders and Other Shareholders, officer, key
        employee or key engineer is or will be compensated by such enterprise.
        Each Management Shareholders and Other Shareholders or officer, key
        employee or key engineer of a Group Company is bound by customary
        non-competition and non-solicitation covenants or similar restrictive
        covenants, in favour of such Group Company and such covenants constitute
        legal, valid and enforceable obligations on the part of such
        individuals.

14.3    The list of Management Shareholder, officer, key employee and key
        engineer are set forth attached hereto as Schedule 1 (B) and Schedule 1
        (C) respectively.

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15      ANNOUNCEMENTS

No party shall make or permit any person connected with it to make any
announcement concerning this Agreement or any ancillary matter before, on or
after completion except as required by law or any competent regulatory body or
with the prior written approval of the other parties, such approval not to be
unreasonably withheld or delayed.

16      NOTICES

In the case of any notice required, desired or permitted to be given hereunder
to any of the parties, such notice shall be either delivered personally, sent by
courier, sent by registered post or transmitted by facsimile to the address of
that party (or other address as the respective parties may specify in a notice
given herein) and shall be deemed to have been received, in the case of personal
delivery or courier service, on the date on which it was left at such address,
or in the case of registered post, Five Business Days after being deposited in
the post, or in the case of transmission by facsimile, when a successful
transmission report is generated by sender's machine.

17      SEVERABILITY

The provisions contained in each clause and sub-clause of this Agreement shall
be enforceable independently of each of the others and its validity shall not be
affected if any of the others is invalid. If any of those provisions is void but
would be valid if some parts of the provision were deleted, the provision in
question shall apply with such modification as may be necessary to make it
valid.

18      GENERAL

18.1    Any liability of any party hereunder may in whole or in part be
        released, compounded or compromised, or time or indulgence given by a
        party to another party, in its absolute discretion without in any way
        prejudicing or affecting any other or further rights of the party
        against the other party.

18.2    Save as provided otherwise in this Agreement, none of the rights or
        obligations under this Agreement may be assigned or transferred without
        the prior written consent of all the parties.

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18.3    Nothing in this Agreement shall be deemed to constitute a partnership
        between any of the parties nor constitute any party the agent of any
        other party for any purpose.

18.4    This Agreement may be executed in any number of counterparts, all of
        which together shall constitute one and the same agreement, and any
        party may enter into this Agreement by executing a counterpart.

18.5    The Shareholders and Comtech agree, as between themselves, that they
        shall procure the convening of all meetings and the giving of all
        waivers and consents and the passing of all resolutions and shall
        otherwise exercise all powers and rights available to them in order to
        give effect to the provisions of this Agreement.

18.6    The Shareholders and Comtech agree, as between themselves, that if any
        provisions of the memorandum and/or articles of association or
        incorporation or by-laws of any Group Company at any time conflict with
        any provisions of this Agreement, the provisions of this Agreement shall
        prevail and the shareholders shall exercise all powers and rights
        available to them to procure the amendment of such memorandum and/or
        articles of association or by-laws to the extent necessary to permit
        such Group Company and its affairs to be regulated as provided in this
        Agreement.

18.7    Each of the obligations, representations, warranties and undertakings
        set out in this Agreement which is not fully performed at Completion
        will continue in force after Completion.

18.8    If any shareholder sells or transfers its Shares at any time in
        accordance with this Agreement and the Articles, the benefit of each of
        the obligations, representations, warranties and/or undertakings
        undertaken or given by the Company and the Other Shareholders may be
        assigned to the purchaser or transferee of such Shares who may enforce
        them as if he had been named in this Agreement as the transferor
        shareholder and the purchaser or transferee shall, as a condition of the
        sale or transfer, undertake to each of the parties to this Agreement in
        a form satisfactory to them to be bound by all the obligations of the
        seller or transferor under this Agreement.

18.9    Save as provided otherwise, where any obligation, representation,
        warranty or undertaking in this Agreement is expressed to be made,
        undertaken or given by two or more persons, such person shall be jointly
        and severally responsible in respect of it.

                                       17

<PAGE>

18.10   Time is of the essence in relation to this Agreement, both as regards
        the dates and periods mentioned in this Agreement and as regards any
        dates and periods which may be substituted for them in accordance with
        this Agreement or by agreement in writing between the parties.

18.11   Each of the parties hereto agrees to use all best efforts to ensure that
        the rights granted hereunder are effective and that the respective
        parties hereto enjoy the benefits thereof. Such actions include, without
        limitation, the use of best efforts to cause the nomination and election
        of the directors as provided in Clause 7. Each of the parties hereto
        will not avoid or seek to avoid the observance or performance of any of
        the terms to be performed hereunder by the Company or Subsidiary, as the
        case may be, but will at all times in good faith assist in the carrying
        out of all of the provisions of this Agreement and in the taking of all
        such actions as may be necessary, appropriate or reasonably requested by
        the other party(ies) in order to protect the rights of such requesting
        party(ies) against impairment.

19      WHOLE AGREEMENT

19.1    This Agreement constitutes the full and entire understanding and
        agreement among the parties with regard to the subjects hereof and
        thereof. Any term of this Agreement may be amended and the observance of
        any term of this Agreement may be waived (either generally or in a
        particular instance and either retroactively or prospectively), by the
        agreement of all parties, provided, however, that any party may waive
        any of such party's respective rights hereunder without obtaining the
        consent of any other party. Any amendment or waiver effected by written
        consent in accordance with this Sub-clause 19.1 shall be binding upon
        each holder of Shares and each future holder of all such Shares, and the
        Company.

19.2    Each of the parties acknowledges that, in agreeing to enter into this
        Agreement, it has not relied on any representation, warranty, collateral
        contract or other assurance (except those set out in this Agreement and
        the documents referred to in it) made by or on behalf of any other party
        before the signature of this Agreement. Each of the parties waives all
        rights and remedies which, but for this Sub-clause 19.2, might otherwise
        be available to it in respect of any such representation, warranty,
        collateral contract or other assurance, provided that nothing in this
        Sub-clause 19.2 shall limit or exclude any liability for fraud.

20      GOVERNING LAW

This Agreement shall be governed by and construed under the laws of the Hong
Kong Special Administrative Region of the People's Republic of China ("HONG
KONG").

                                       18

<PAGE>

                                 SCHEDULE 1 (A)

                             THE OTHER SHAREHOLDERS

             NAME                         NUMBER OF SHARES         OWNERSHIP (%)
CHEN Kai [CHINESE HERE]                        2,776                   27.76
LIN Qiao Li [CHINESE HERE]                     2,086                   20.86
Pioneer System Investment Limited              2,780                   27.80
LAM Chi Ming [CHINESE HERE]                    1,179                   11.79
CHAN, William [CHINESE HERE]                   1,179                   11.79

                                      ------------------------- ----------------
Total                                         10,000                  100.0
                                      ========================= ================

                                       19

<PAGE>

                                 SCHEDULE 1 (B)

                           THE MANAGEMENT SHAREHOLDERS

              NAME             NUMBER OF COMMON SHARES OWNED AND     OWNERSHIP
                             HELD AS AT THE DATE OF THIS AGREEMENT      (%)

CHEN Kai [CHINESE HERE]                      2,776                     27.76
LAM Chi Ming [CHINESE HERE]                  1,179                     11.79

                                       20

<PAGE>

                                 SCHEDULE 1 (C)

                 LIST OF OFFICER, KEY EMPLOYEE AND KEY ENGINEER

[CHINESE HERE]

                                       21

<PAGE>

                                  SCHEDULE 2(A)

                           PARTICULARS OF THE COMPANY

NAME:                       United Information Technology Co. Ltd.

REGISTERED OFFICE           East Asia Chambers, P.O. Box 901, Road Town, Tortola
                            British Virgin Islands
PLACE OF INCORPORATION:     British Virgin Islands

DIRECTORS                   Jeffery Kang, Hope Ni, Chen Kai

AUTHORISED SHARE CAPITAL    The authorised capital of the Company is USD50,000.
                            The authorised capital is made up of one class and
                            one series of shares divided into 50,000 shares of
                            USD1.00 par value.

                                       22

<PAGE>

                                  SCHEDULE 2(B)

                          PARTICULARS OF THE SUBSIDIARY

NAME:                       [CHINESE HERE]

REGISTERED OFFICE           [CHINESE HERE] 1501(518057)
                            Suite 1501, 15/F, Fangda Building,  Keji South 12th
                            Road High-tech Industrial Park, Nanshan District,
                            Shenzhen, China(518057)

PLACE OF INCORPORATION:     [CHINESE HERE]

DIRECTORS                   [CHINESE HERE]

AUTHORISED SHARE CAPITAL    RMB30,000,000

SHAREHOLDERS NAME           United Information Technology Co., Ltd.

SHAREHOLDING %                           100

                                       23

<PAGE>

                                   SCHEDULE 3

                                RESERVED MATTERS

1.      Cease to conduct or carry on the business of the Company and/or a
        subsidiary (including but not limit to the Subsidiary) substantially as
        now conducted or, in the case of a subsidiary, as conducted at the time
        it became a subsidiary of the Company or change any part of its business
        activities.

2.      Appoint, or settle or terminate the terms of appointment of, any
        managing director, chief executive officer, chief technical officer,
        chief operating officer, general manager, chairman, financial controller
        or other key manager(s).

3.      Approve, settle or alter the terms of any bonus or profit sharing plan
        or scheme or any employee share option or share participation plans or
        schemes.

4.      Sell, transfer, license, charge, encumber or otherwise dispose of any
        intellectual property or proprietary right owned by the Company and
        subsidiary.

5.      Make any alteration or amendment to the Articles of the Company or the
        charter documents of any Group Company (including but not limit to the
        articles of association and/or business license of the Subsidiary).

6.      Approve any transfer of shares in the Company, registered capital in the
        Subsidiary, or equity interests in any other Group Company.

7.      Approve or make adjustments or modifications to terms of transactions
        involving the interest of any director or shareholder of any Group
        Company, including but not limited to the making of any loans or
        advances, whether directly or indirectly, or the provision of any
        guarantee, indemnity or security for or in connection with any
        indebtedness of liabilities of any director or shareholder of any Group
        Company.

8.      Enter into any abnormal or unusual contract or contract outside the
        ordinary course of business of such Group Company.

                                       24

<PAGE>

9.      Consolidation or merger with or into any other business entity (other
        than a wholly owned subsidiary) or the sale of all or substantially all
        the Company's assets or disposal of more than fifty per cent (50%) of
        the voting power of the Company by means of any transaction or series of
        related transactions.

10.     The liquidation or dissolution of the Company.

11.     The declaration or payment of a dividend on the Common Shares.

12.     Incurrence of indebtedness in excess of US$5,000.

13.     Any loans by the Company to any director, officer or employee.

14.     The purchase or lease by the Company of any asset valued in excess of
        US$5,000.

15.     The purchase by the Company of any securities of any other company in
        excess of US$5,000 in a twelve (12) month period.

16.     The increase in compensation of any of the two (2) most highly
        compensated employees of the Company and/or any of the Company's
        subsidiaries by more than 10% in a twelve (12) month period.

        The name, position and remuneration of the two (2) most highly
        compensated employees of the Company and/or any of the Company's
        subsidiaries are listed as follows:-

              NAME                 Position           Remuneration
              ----                 --------           ------------
              (1) [CHINESE HERE]   Chairman/CEO       RMB300,000 (per annum)
              (2) [CHINESE HERE]   Vice Chairman      RMB300,000 (per annum)

17.     Any transaction or series of transactions between the Company and any
        holder of Common Shares, director, office or employee of the Company and
        any director, officer or employee of the Company's subsidiaries that is
        not in the ordinary course of business or for which the aggregate value
        exceeds US$5,000.

18.     Other than in the ordinary course of business, any transaction that
        result in a pledge of any assets of the security interest, lien or other
        encumbrances or any assets of, or the Company.

19.     Any material change in the Company's business plan.

20.     The appointment by the Company of any directors of any of its
        subsidiaries.

                                       25

<PAGE>

21.     The hiring of any management member or consultants with annual
        remuneration over US$5,000.

22.     Directly or indirectly transfer or pledge any economic interest in any
        of its Subsidiaries or their respective businesses.

23.     Cause or permit any of its Subsidiaries to take any of the following
        actions:

24.     Any amendment to such Subsidiary's Articles of Association or other
        constitutional document;

24.1    any liquidation, termination or dissolution of such Subsidiary;

24.2    any change in the capital structure of such Subsidiary, either by
        increase or decrease of its registered capital or issuance of stock or
        otherwise;

24.3    any sale of substantially all the assets of such Subsidiary or
        reorganization, merger or consolidation of such Subsidiary with any
        other economic organization; or

24.4    any change in the business scope or plan of such Subsidiary.

                                       26

<PAGE>

                                   SCHEDULE 4

                             CONTINUING OBLIGATIONS

1       BUSINESS PLAN

        The Company shall provide Comtech and the Shareholders with a business
        plan including marketing, development, management and financial
        programs and an annual budget for the next financial year of the
        Company which it shall submit to the Shareholder not less than 30 days
        before the commencement of each such subsequent year.

2       INFORMATION

        The Company shall provide Comtech and the Shareholder with:

              (b)  monthly accounts and progress reports within 30 days after
                   the end of each month which shall include a profits and loss
                   account, a balance sheet, a cashflow statement and a summary
                   of the business and developments of the Group;

              (c)  quarterly accounts of the Company and each of its
                   subsidiaries within 45 days after the end of each fiscal
                   quarter;

              (d)  consolidated audited annual accounts of the Company and each
                   of its subsidiaries within 90 days after the end of each
                   fiscal year, which shall have been audited by a top five
                   international accountant firm of the Company's choice;

              (e)  an annual budget and a revision within 30 days prior to the
                   end of each half fiscal year;

              (f)  such further information as Comtech may from time to time
                   reasonably require as to all matters relating to the
                   businesses or affairs or the financial position of the Group
                   Companies;

3       INSPECTION RIGHTS

3.1     Comtech and the Shareholder shall have standard inspection rights of the
        facilities of the Company and any of its subsidiaries, including,
        without limitation, discussing the business, operations and conditions
        of the Company and any subsidiaries with its directors, officers,
        employees, accountants, legal counsel and investment bankers.

                                       27

<PAGE>

4       BOARD MEETINGS

        The Company shall procure that meetings of the directors of Group
        Companies are held at least every three (3) months and that a notice of
        each such meeting, an agenda of the business to be transacted at the
        meeting and all papers to be circulated at or presented to the meeting
        are sent to all directors entitled to receive notice of the meeting and
        to each Shareholder at least seven days before the meeting and a copy of
        the minutes of the meeting are sent to such persons within seven days
        after the meeting.

5       ACCOUNTING RECORDS

        Each Group Company shall maintain accurate and complete accounting and
        other financial records and shall procure that such accounting records
        are, during normal business hours, available for inspection by each
        Shareholder or its authorised representatives.

6       CONFIDENTIALITY AND NON-COMPETITION AGREEMENT

6.1     The Company and Management Shareholders shall ensure that each key
        officer and employee of the Company and its subsidiaries shall enter
        into a Confidentiality and Non-Competition agreement. The form of such
        an agreement shall be subject to the approval of Comtech.

6.2     The Company and Management Shareholders shall use its best efforts to
        procure that the remainder of its and its subsidiaries' employees and
        officers enter into such an agreement.

6.3     The Company will use its best efforts to prevent any violation by the
        employees of the CONFIDENTIALITY AND NON-COMPETITION AGREEMENT with the
        Company.

7.      MISCELLANEOUS

        Each Group Company shall at all times cause to be done all things
        reasonably necessary to maintain, preserve and renew its corporate
        existence, patent, trademark or technology transfer applications or
        registrations, rights, franchises, lease agreements, authorizations
        and permits necessary to the conduct of its businesses, except where a
        failure to do so would not have a material adverse effect on the
        business, financial condition, results of operations or prospects of
        such Group Company.

                                       28

<PAGE>

                                   SCHEDULE 5
                              FINANCIAL PROJECTION

--------------------------------------------------------------------------------
                                                 Projected          Cash Inflow
                             Projected              Net                 from
   Year        Month          Revenue             Earnings           Operation
   ----        -----          -------             --------           ---------
                               USD'M               USD'M
--------------------------------------------------------------------------------

   2005      April-July          3.5                 0.8               Note A
             Aug - Dec           6.5                 1.2               Note A
                              ----------------------------
                                10.0                 2.0
                              ============================

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

   2006      Jan - Jun          10.0                 1.5               Note A
             Jul - Dec          10.0                 1.5               Note A
                              ----------------------------
                                20.0                 3.0
                              ============================

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

   2007      Jan - Jun          10.0                 1.5               Note A
              Jul- Dec          15.0                 2.0               Note A
                              ----------------------------
                                25.0                 3.5
                              ============================

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

   2008                         33.0                 4.7
                              ============================

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

   2009                         43.0                 6.2
                              ============================

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

NOTE A: 65% REVENUE FOR THE PERIOD, IT WILL BE ADJUSTED TO 55% IF REVENUE
        EXCEED TARGET BY 10%

NOTE B: IF THE PROJECTED REVENUE AND PROJECTED NET EARNINGS CANNOT BE ACHIEVED,
        THE SHORTFALL CAN BE COMPENSATED IN NEXT INTERVAL. IN NO CASE, THE
        ACCUMULATED PROJECTED REVENUE AND PROJECTED NET EARNINGS WILL BE LESS
        THAN USD30M AND USD5M RESPECTIVELY FOR THE PERIOD FROM APRIL 2005 TO
        DECEMBER 2006. OTHERWISE, IT IS SUBJECT TO THE DISCRETIONARY AUTHORITY
        OF COMTECH TO DISSOLVE THE GROUP COMPANIES.

                                       29

<PAGE>

<TABLE>
                                                     SCHEDULE 6 (A)
                                           MILESTONE FOR FINANCIAL PROJECTION

<CAPTION>
------------------------------------------------------------------------------------
                                                 Projected         Cash Inflow                  Proposed Shareholding
                                      Projected     Net                from              Ref        Other
    Milestone    Year       Month      Revenue   Earnings           Operation            ---     Shareholder    COGO
    ---------    ----       -----      -------   --------           ---------            Sch.    -----------    ----
                                        USD'M      USD'M                                  6B
------------------------------------------------------------------------------------

<S>              <C>      <C>            <C>         <C>      <C>                         <C>        <C>        <C>
        A        2005     April-July      3.5        0.8      Refer to Sch.5 Note A                   0%        100%
        B                 Aug - Dec       6.5        1.2      Refer to Sch.5 Note A       1          40%         60%
                                      --------   --------
                                         10.0        2.0
                                      ========   ========

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

        C        2006     Jan - Jun      10.0        1.5      Refer to Sch.5 Note A       2          25%         75%
                                                                                          3          45%         55%
        D                 Jul - Dec      10.0        1.5      Refer to Sch.5 Note A       4          35%         65%
                                      --------   --------
                                         20.0        3.0
                                      ========   ========

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

        E        2007     Jan - Jun      10.0        1.5      Refer to Sch.5 Note A       5          25%         75%
        F                  Jul- Dec      15.0        2.0      Refer to Sch.5 Note A       6          15%         85%
                                      --------   --------
                                         25.0        3.5
                                      ========   ========

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

                                       30

<PAGE>

                                 SCHEDULE 6 (B)
                       MILESTONE FOR FINANCIAL PROJECTION

1.      If at 1 January 2006, the Group Companies can achieve milestone A & B,
        Other Shareholders can transfer their "Technology Know How" and
        concurrently Comtech will accept the transfer of their "Technology Know
        How" in return for 40% of Company Shares.

2.      If at 30 June 2006, the Group Companies can achieve milestone C, Comtech
        or other investor may buy 15% of Company shares from other shareholders,
        subject to the offer by other shareholders, at the price of Actual Net
        Earnings (for the period from 1 January 2006 to 30 June 2006) *5*15%.

3.      If at 30 June 2006, the Group Companies can achieve milestone C, Other
        Shareholders can transfer their "Technology Know How" and concurrently
        Comtech will accept the transfer of their "Technology Know How" in
        return for 20% of Company Shares.

4.      If at 31 Dec 2006, the Group Companies can achieve milestone D, Comtech
        or other investor may buy 10% of Company shares from other shareholders,
        subject to the offer by other shareholders, at the price of Actual Net
        Earnings (for the period from 1 July 2006 to 31 December 2006) *5*10%.

5.      If at 30 June 2007, the Group Companies can achieve milestone E, Comtech
        or other investor may buy 10% of shares from other shareholders, subject
        to the offer by other shareholders, at the price of Actual Net Earnings
        (for the period from 1 January 2007 to 30 June 2007)*5*10%.

6.      If at 31 Dec 2007, the Group Companies can achieve milestone F, Comtech
        or other investor may buy 10% of shares from other shareholders, subject
        to the offer by other shareholders, at the price of Actual Net Earnings
        (for the period from 1 July 2007 to 31 December 2007) *5*10%.

7.      If the Company fail to achieve the milestone as set forth in Schedule 6
        (A), the proposed shareholding as set forth in Schedule 6 (A) will be
        adjusted based on the actual operating results subject to Clause 11.
        That is, for example, net earnings for the period from April 2005 to
        December 2006 amounted to USD2.5M only, Comtech or other investor may
        buy Company shares from other shareholders with less than as set forth
        in Schedule 6(B) with a smaller price earnings ratio.

                                       31

<PAGE>

                                   SCHEDULE 7
                           INTELLECTUAL PROPERTY LIST

(1) UIT BM3800 [CHINESE HERE]

UIT BM3800  [CHINESE HERE]

(2) UIT BM1800 [CHINESE HERE]
UIT BM1800 [CHINESE HERE]

                                       32

<PAGE>

(3) UITBM581 [CHINESE HERE]

UIT BM581 [CHINESE HERE]

(4) UIT BM582 [CHINESE HERE]
UIT BM582 [CHINESE HERE]

                                       33

<PAGE>

(5) UIT BM681 [CHINESE HERE]
UIT BM681 [CHINESE HERE]

(6)UIT BM682 [CHINESE HERE]

UIT BM682 [CHINESE HERE]

                                       34

<PAGE>

(7) UIT SYNCCONTROL [CHINESE HERE]
[CHINESE HERE] SyncControl [CHINESE HERE]

(8) UIT SNAPCONTROL [CHINESE HERE]
UIT SnapControl [CHINESE HERE]
UIT SnapControl [CHINESE HERE]

(9) UIT [CHINESE HERE]

[CHINESE HERE]

                                       35

<PAGE>

(10) UIT NETDISK [CHINESE HERE]
UIT [CHINESE HERE]

Brand Name:

UIT

[CHINESE HERE]

Logo:

[LOGO HERE]

                                       36

<PAGE>

This Agreement was signed by the parties on the date first written above.

SIGNED by                                       )

for and on behalf of                            )

Comtech Group                                   )

in the presence of:

SIGNED by                                       )

for and on behalf of                            )

United Information Technology Co. Ltd           )

in the presence of:

SIGNED by                                       )

for and on behalf of                            )

[CHINESE HERE]                                  )

in the presence of:

SIGNED by                                       )

CHEN Kai [CHINESE HERE]                         )

in the presence of:                             )

                                       37

<PAGE>

SIGNED by                                       )

LIN Qiao Li [CHINESE HERE]                      )

in the presence of:                             )

SIGNED by                                       )

for and on behalf of                            )

Pioneer System Investment Limited               )

in the presence of:

SIGNED by                                       )

LAM Chi Ming [CHINESE HERE]                     )

in the presence of:                             )

SIGNED by                                       )

CHAN, William [CHINESE HERE]                    )

in the presence of:                             )

                                       38

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]