Document:

Loan
Agreement

     

    This Loan
Agreement (this “Agreement”) is made and entered into by and between the Parties
below as of the 20th day of
December, 2007 in Jinan, the People’s Republic of China (“China” or the
“PRC”):

     

    
      	
               
      

            	
              (1)

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

            

    

     

    
      	
               
      

            	
              (2)

            	
              Qiang LI (“Borrower”), a
      Chinese citizen with Chinese Identification No.:
      372427196804024513.

            

    

     

    Each of
Lender and Borrower shall be hereinafter referred to as a “Party” respectively,
and as the “Parties” collectively.

     

    Whereas,

     

    Borrower
holds 30% of equity interests (“Borrower Equity Interest”) in Trunkbow
Technologies (Shenzhen) Co., Ltd. (“Borrower Company”), Borrower Company is a
limited company duly registered in Shenzhen, China with its registered capital
of RMB 5,000,000.

     

    Lender
intends to provide Borrower with a loan to be used under this Agreement. After
friendly consultation, the Parties agree as follows:

     

    
      	
              1.

            	
              Loan

            

    

     

    
      	
               
      

            	
              1.1

            	
              In
      accordance with the terms and conditions of this Agreement, Lender agrees
      to provide a loan in the amount of RMB 1,500,000 (the “Loan”) to Borrower.
      The term of the Loan shall be 10 years from the date of this Agreement,
      which may be extended upon mutual written consent of the Parties. During
      the term of the Loan or the extended term of the Loan, Borrower shall
      immediately repay the full amount of the Loan in the event any one or more
      of the following circumstances
occur:

            

    

     

    
      	
               
      

            	
              1.1.1

            	
              30
      days elapse after Borrower receives written notice from Lender requesting
      repayment of the Loan;

            

    

     

    
      	
               
      

            	
              1.1.2

            	
              Borrower’s
      death, lack or limitation of civil
capacity;

            

    

     

    
      	
               
      

            	
              1.1.3

            	
              Borrower
      ceases (for any reason) to be an Shareholder of Borrower
      Company;

            

    

     

    
      	
               
      

            	
              1.1.4

            	
              Borrower
      engages in criminal act or is involved in criminal
    activities;

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              1.1.5

            	
              Any
      third party filed a claim against Borrower that exceeds RMB500,000;
      or

            

    

     

    
      	
               
      

            	
              1.1.6

            	
              According
      to the applicable laws of China, foreign investors are permitted to invest
      in value-added telecommunication service businesses in China with a
      controlling stake or in the form of wholly-foreign-owned enterprises, the
      relevant competent authorities of China begin to approve such investments,
      and Lender exercises the exclusive option under the Exclusive Option
      Agreement (the “Exclusive Option Agreement”) described in Sections 2.4 of
      this Agreement.

            

    

     

    
      	
               
      

            	
              1.2

            	
              Lender
      agrees to remit the total amount of the Loan to the account designated by
      Borrower within 20 days after receiving a written notification from the
      Borrower regarding the same, provided that all the conditions precedent in
      Section 2 are fulfilled. Borrower shall provide Lender with a written
      receipt for the Loan upon receiving the Loan. The Loan provided by Lender
      under this Agreement shall inure to Borrower’s benefit only and not to
      Borrower’s successors or assigns.

            

    

     

    
      	
               
      

            	
              1.3

            	
              Borrower
      agrees to accept the aforementioned Loan provided by Lender, and hereby
      agrees and warrants using the Loan to provide capital for Borrower Company
      to develop the business of Borrower Company. Without Lender’s prior
      written consent, Borrower shall not use the Loan for any purpose other
      than as set forth herein.

            

    

     

    
      	
               
      

            	
              1.4

            	
              Lender
      and Borrower hereby agree and acknowledge that Borrower’s method of
      repayment may at Lender’s option take the form of Borrower’s transferring
      the Borrower Equity Interest to Lender or Lender’s designated persons
      (legal or natural persons) pursuant to the Lender’s exercise of its right
      to acquire the Borrower Equity Interest under the Exclusive Option
      Agreement.

            

    

     

    
      	
               
      

            	
              1.5

            	
              Lender
      and Borrower hereby agree and acknowledge that any proceeds from the
      transfer of the Borrower Equity Interest (to the extent permissible) shall
      be used to repay the Loan to Lender, in accordance with this Agreement in
      the manner designated by Lender.

            

    

     

    
      	
               
      

            	
              1.6

            	
              Lender
      and Borrower hereby agree and acknowledge that to the extent permitted by
      applicable laws, Lender shall have the right but not the obligation to
      purchase or designate other persons (legal or natural persons) to purchase
      Borrower Equity Interest in part or in whole at any time, at the price
      stipulated in the Exclusive Option
Agreement.

            

    

     

    
      	
               
      

            	
              1.7

            	
              Borrower
      also undertakes to execute an irrevocable Power of Attorney (the “Power of
      Attorney”), which authorizes a legal or natural person designated by
      Lender to exercise all of Borrower’s rights as a shareholder of Borrower
      Company.

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              1.8

            	
              When
      Borrower transfers Borrower Equity Interest to Lender or Lender’s
      designated person, in the event that the transfer price of such equity
      interest equals or is lower than the principal of the Loan under this
      Agreement, the Loan under this Agreement shall be deemed an interest-free
      loan. In the event that the transfer price of such equity interest exceeds
      the principal of the Loan under this Agreement, the excess over the
      principal shall be deemed the interest of the Loan under this Agreement
      payable by Borrower to Lender.

            

    

     

    
      	
              2.

            	
              Conditions
      Precedent

            

    

     

    The
obligation of Lender to provide the Loan to Borrower contemplated in Section 1.1
shall be subject to the satisfaction of the following conditions, unless waived
in writing by Lender.

     

    
      	
               
      

            	
              2.1

            	
              Lender
      receives the written notification for drawdown under the Loan sent by
      Borrower according to Section 1.2.

            

    

     

    
      	
               
      

            	
              2.2

            	
              Borrower
      Company and Lender or Lender’s designated persons (legal or natural
      persons) have officially executed an Exclusive Business Cooperation
      Agreement (“Exclusive Business Cooperation Agreement”), under which Lender
      or Lender’s designated persons (legal or natural persons), as an exclusive
      service provider, will provide Borrower Company with technical service and
      business consulting service.

            

    

     

    
      	
               
      

            	
              2.3

            	
              Borrower,
      Borrower Company and Lender or Lender’s designated persons (legal or
      natural persons) have executed a Share Pledge Agreement (“Share Pledge
      Agreement”), the contents of which have been confirmed, and according to
      the Share Pledge Agreement, Borrower agrees to pledge Borrower Equity
      Interest to Lender or Lender’s designated persons (legal or natural
      persons).

            

    

     

    
      	
               
      

            	
              2.4

            	
              Borrower,
      Lender and Borrower Company have officially executed an Exclusive Option
      Agreement, the contents of which have been confirmed, and under which
      Borrower shall irrevocably grant Lender an exclusive option to purchase
      all of the Borrower Equity
Interest.

            

    

     

    
      	
               
      

            	
              2.5

            	
              Borrower
      has executed an irrevocable Power of Attorney (“Power of Attorney”), which
      authorizes Lender or Lender’s designated persons (legal or natural
      persons) to exercise all of Borrower’s rights as a shareholder in Borrower
      Company.

            

    

     

    
      	
               
      

            	
              2.6

            	
              The
      aforementioned Share Pledge Agreement, Power of Attorney, Exclusive Option
      Agreement and Exclusive Business Cooperation Agreement have been entered
      into before or on the date of execution of this Agreement and shall have
      full legal validity without any default or encumbrance related to these
      agreements or contracts, and all the related filing procedures, approvals,
      authorization, registrations and government procedures have been completed
      (as applicable).

            

    

     

    
      	
               
      

            	
              2.7

            	
              All
      the representations and warranties by Borrower in Section 3.2 are true,
      complete, correct and not
misleading.

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              2.8

            	
              Borrower
      has not violated the covenants in Section 4 of this Agreement, and no
      event which may affect Borrower’s performance of its obligations under
      this Agreement has occurred or is expected to
  occur.

            

    

     

    
      	
              3.

            	
              Representations and
      Warranties

            

    

     

    
      	
               
      

            	
              3.1

            	
              Between
      the date of this Agreement and the date of termination of this Agreement,
      Lender hereby makes the following representations and warranties to
      Borrower:

            

    

     

    
      	
               
      

            	
              3.1.1

            	
              Lender
      is a company duly organized and legally existing in accordance with the
      laws of the PRC;

            

    

     

    
      	
               
      

            	
              3.1.2

            	
              Lender
      has the legal capacity to execute and perform this Agreement. The
      execution and performance by Lender of this Agreement is consistent with
      Lender’s scope of business and the provisions of Lender’s corporate bylaws
      and other organizational documents, and Lender has obtained all necessary
      and proper approvals and authorizations for the execution and performance
      of this Agreement; and

            

    

     

    
      	
               
      

            	
              3.1.3

            	
              This
      Agreement constitutes Lender’s legal, valid and binding obligations
      enforceable in accordance with its
terms.

            

    

     

    
      	
               
      

            	
              3.2

            	
              Between
      the date of this Agreement and the date of termination of this Agreement,
      Borrower hereby makes the following representations and
      warranties:

            

    

     

    
      	
               
      

            	
              3.2.1

            	
              Borrower
      has the legal capacity to execute and perform this Agreement. Borrower has
      obtained all necessary and proper approvals and authorizations for the
      execution and performance of this
Agreement;

            

    

     

    
      	
               
      

            	
              3.2.2

            	
              This
      Agreement constitutes Borrower’s legal, valid and binding obligations
      enforceable in accordance with its terms;
and

            

    

     

    
      	
               
      

            	
              3.2.3

            	
              There
      are no disputes, litigation, arbitrations, administrative proceedings or
      any other legal proceedings relating to Borrower, nor are there any
      potential disputes, litigations, arbitrations, administrative proceedings
      or any other legal proceedings relating to
  Borrower.

            

    

     

    
      	
              4.

            	
              Borrower’s
      Covenants

            

    

     

    
      	
               
      

            	
              4.1

            	
              As
      and when she becomes, and for so long as she remains a shareholder of
      Borrower Company, Borrower covenants that during the term of this
      Agreement, Borrower shall cause Borrower
  Company:

            

    

     

    
      	
               
      

            	
              4.1.1

            	
              to
      strictly abide by the provisions of the Exclusive Option Agreement and the
      Exclusive Business Cooperation Agreement, and to refrain from any
      action/omission that may affect the effectiveness and enforceability of
      the Exclusive Option Agreement and the Exclusive Business Cooperation
      Agreement;

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              4.1.2

            	
              at
      the request of Lender (or a party designated by Lender), to execute
      contracts/agreements on business cooperation with Lender (or a party
      designated by Lender), and to strictly abide by such
      contracts/agreements;

            

    

     

    
      	
               
      

            	
              4.1.3

            	
              to
      provide Lender (or a party designated by Lender) with all of the
      information on Borrower Company’s business operations and financial
      condition at Lender’s request;

            

    

     

    
      	
               
      

            	
              4.1.4

            	
              to
      immediately notify Lender of the occurrence or possible occurrence of any
      litigation, arbitration or administrative proceedings relating to Borrower
      Company’s assets, business or
income;

            

    

     

    
      	
               
      

            	
              4.1.5

            	
              at
      the request of Lender, to appoint any persons designated by Lender as
      directors of Borrower Company;

            

    

     

    
      	
               
      

            	
              4.1.6

            	
              without
      Lender’s prior written consent, not to supplement, change or amend its
      articles of association in any manner, increase or decrease its registered
      capital or change its share capital structure in any
    manner;

            

    

     

    
      	
               
      

            	
              4.1.7

            	
              to
      maintain its corporate existence in accordance with good financial and
      business standards and practices by prudently and effectively operating
      its business and handling its
affairs;

            

    

     

    
      	
               
      

            	
              4.1.8

            	
              without
      Lender’s prior written consent, not to sell, transfer, mortgage or dispose
      of in any other manner its legal or beneficial interest in any of its
      assets, business or revenue at any time from the date of this Agreement,
      or permit the encumbrance of any other security interest
      thereon;

            

    

     

    
      	
               
      

            	
              4.1.9

            	
              without
      Lender’s prior written consent, not to incur, inherit, guarantee or
      otherwise allow for the existence of any debt, except for (i) debt
      incurred in the ordinary course of business other than through any loans;
      and (ii) debt already disclosed to Lender for which Lender’s written
      consent has been obtained;

            

    

     

    
      	
               
      

            	
              4.1.10

            	
              to
      operate its businesses in the ordinary course and to maintain the value
      of  its assets;

            

    

     

    
      	
               
      

            	
              4.1.11

            	
              without
      the prior written consent of Lender, not to execute any major contract,
      except for contracts in the ordinary course of business (for purpose of
      this subsection, a contract with a value exceeding RMB500,000 shall be
      deemed a major contract);

            

    

     

    
      	
               
      

            	
              4.1.12

            	
              without
      the prior written consent of Lender, not to provide any person with any
      loan, credit or security;

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              4.1.13

            	
              to
      procure and maintain insurance from an insurance carrier acceptable to
      Lender, at an amount and type of coverage typical for companies that
      operate similar businesses in the same
area;

            

    

     

    
      	
               
      

            	
              4.1.14

            	
              without
      the prior written consent of Lender, not to merge, consolidate with,
      acquire, or invest in any party;

            

    

     

    
      	
               
      

            	
              4.1.15

            	
              in
      order to maintain the ownership of all of its assets, to 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;

            

    

     

    
      	
               
      

            	
              4.1.16

            	
              without
      the prior written consent of Lender, not to distribute dividends to
      shareholders, provided that upon Lender’s written request, to distribute
      the distributable profits in whole or in part to the respective
      shareholders.

            

    

     

    
      	
               
      

            	
              4.2

            	
              Borrower
      covenants that during the term of this Agreement, she
    shall:

            

    

     

    
      	
               
      

            	
              4.2.1

            	
              endeavor
      to keep Borrower Company to engage in its current value-added
      telecommunication businesses;

            

    

     

    
      	
               
      

            	
              4.2.2

            	
              abide
      by the provisions of this Agreement, the Power of Attorney, the Share
      Pledge Agreement and the Exclusive Option Agreement, perform her
      obligations under this Agreement, the Power of Attorney, the Share Pledge
      Agreement and the Exclusive Option Agreement, and refrain from any
      action/omission that may affect the effectiveness and enforceability of
      this Agreement, the Power of Attorney, the Share Pledge Agreement and the
      Exclusive Option Agreement;

            

    

     

    
      	
               
      

            	
              4.2.3

            	
              not
      sell, transfer, mortgage or dispose of in any other manner the legal or
      beneficial interest in Borrower Equity Interest, or allow the encumbrance
      thereon of any security interest or the encumbrance, except in accordance
      with the Share Pledge Agreement;

            

    

     

    
      	
               
      

            	
              4.2.4

            	
              cause
      any shareholders’ meeting and/or board of directors meeting of Borrower
      Company not to approve the sale, transfer, mortgage or disposition in any
      other manner of any legal or beneficial interest in Borrower Equity
      Interest, or allow the encumbrance thereon of any security interest,
      except to Lender or Lender’s designated
person;

            

    

     

    
      	
               
      

            	
              4.2.5

            	
              cause
      any shareholders’ meeting and/or board of directors of the Borrower
      Company not to approve the merger or consolidation of Borrower Company
      with any person, or its acquisition of or investment in any person,
      without the prior written consent of
Lender;

            

    

     

    
      	
               
      

            	
              4.2.6

            	
              immediately
      notify Lender of the occurrence or possible occurrence of any litigation,
      arbitration or administrative proceedings relating to Borrower Equity
      Interest;

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              4.2.7

            	
              to
      the extent necessary to maintain her ownership of the Borrower Equity
      Interest, execute all necessary or appropriate documents, take all
      necessary or appropriate actions and file all necessary or appropriate
      complaints or raise necessary and appropriate defense against all
      claims;

            

    

     

    
      	
               
      

            	
              4.2.8

            	
              without
      the prior written consent of Lender, refrain from any action / omission
      that may have a material impact on the assets, business and liabilities of
      Borrower Company;

            

    

     

    
      	
               
      

            	
              4.2.9

            	
              appoint
      any designee of Lender as director of Borrower Company, at the request of
      Lender;

            

    

     

    
      	
               
      

            	
              4.2.10

            	
              to
      the extent permitted by the laws of China, at the request of Lender at any
      time, promptly and unconditionally transfer all of Borrower Equity
      Interest to Lender or Lender’s designated representative at any time, and
      cause the other shareholders of Borrower Company to waive their right of
      first refusal with respect to the share transfer described in this
      section;

            

    

     

    
      	
               
      

            	
              4.2.11

            	
              to
      the extent permitted by the laws of China, at the request of Lender at any
      time, cause the other shareholders of Borrower Company to promptly and
      unconditionally transfer all of their equity interests to Lender or
      Lender’s designated representative at any time, and Borrower hereby waives
      her right of first refusal (if any) with respect to the share transfer
      described in this section;

            

    

     

    
      	
               
      

            	
              4.2.12

            	
              in
      the event that Lender purchases Borrower Equity Interest from Borrower in
      accordance with the provisions of the Exclusive Option Agreement, use such
      purchase price obtained thereby to repay the Loan to Lender;
      and

            

    

     

    
      	
               
      

            	
              4.2.13

            	
              without
      the prior written consent of Lender, not to cause Borrower Company to
      supplement, change, or amend its articles of association in any manner,
      increase or decreases its registered capital or change its share capital
      structure in any manner.

            

    

     

    
      	
              5.

            	
              Liability for
      Default

            

    

     

    
      	
               
      

            	
              5.1

            	
              In
      the event either  Party breaches this Agreement or otherwise
      causes the non-performance of this Agreement in part or in whole, the
      Party shall be liable for such breach and shall compensate all damages
      (including litigation and attorneys fees) resulting therefrom. In the
      event that both Parties breach this Agreement, each Party shall be liable
      for its respective breach.

            

    

     

    
      	
               
      

            	
              5.2

            	
              In
      the event that Borrower fails to perform the repayment obligations set
      forth in this Agreement, Borrower shall pay overdue interest of 0.01% per
      day for the outstanding payment, until the day Borrower repays the full
      principal of the Loan, overdue interests and other payable
      amounts.

            

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      	
              6.

            	
              Notices

            

    

     

    
      	
               
      

            	
              6.1

            	
              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:

            

    

     

    
      	
               
      

            	
              6.1.1

            	
              Notices
      given by personal delivery, by courier service or by registered mail,
      postage prepaid, shall be deemed effectively given on the date of
      delivery.

            

    

     

    
      	
               
      

            	
              6.1.2

            	
              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).

            

    

     

    
      	
               
      

            	
              6.2

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

            

    

     

    Lender:  Trunkbow
Asia Pacific(Shandong) Co., Ltd.

     

    
      	
               
      

            	
              Address:

            	
              The
      sixth floor, mainbuilding, Shanda Technology Industrial Zone, Yingxiu
      Road, Hi-tech Development District,
Jinan

            

    

    
      	
               
      

            	
              Attn:

            	
              Ying
      XIA

            

    

    
      	
               
      

            	
              Phone:

            	
              0086-531-89706001

            

    

    
      	
               
      

            	
              Facsimile:

            	
              0086-531-89706000

            

    

    
      E-mail:
xiaying@trunkbow.com

    

     

    Borrower:
Qiang LI

     

    
      	
               
      

            	
              Address:

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

            

    

    
      	
               
      

            	
              Phone:

            	
              0086-531-67809988

            

    

     

    
      	
               
      

            	
              6.3

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

            

    

     

    
      	
              7.

            	
              Duty to Maintain
      Confidentiality

            

    

     

    The
Parties acknowledge that any oral or written information exchanged among them
with respect to this Agreement is confidential information. The Parties shall
maintain the confidentiality of all such information, and without the written
consent of other Party, either Party shall not disclose any relevant information
to any third party, 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

        
          

        

      

      
         

      

    

     

    
      	
              8.

            	
              Force
      Majeure

            

    

     

    
      	
               
      

            	
              8.1

            	
              “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.

            

    

     

    
      	
               
      

            	
              8.2

            	
              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.

            

    

     

    
      	
              9.

            	
              Governing Law and
      Resolution of Disputes

            

    

     

    
      	
               
      

            	
              9.1

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

            

    

     

    
      	
               
      

            	
              9.2

            	
              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 Party 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.

            

    

     

    
      	
               
      

            	
              9.3

            	
              Upon
      the occurrence of any disputes arising from the construction and
      performance of this Agreement or during the pending arbitration of any
      dispute, except for the matters under dispute, the Parties to this
      Agreement shall continue to exercise their respective rights under this
      Agreement and perform their respective obligations under this
      Agreement.

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	
              10.

            	
              Miscellaneous

            

    

     

    
      	
               
      

            	
              10.1

            	
              This
      Agreement shall become effective on the date thereof, and shall expire
      upon the date of full performance by the Parties of their respective
      obligations under this Agreement.

            

    

     

    
      	
               
      

            	
              10.2

            	
              This
      Agreement shall be written in both Chinese and English language in two
      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.

            

    

     

    
      	
               
      

            	
              10.3

            	
              This
      Agreement may be amended or supplemented through written agreement by and
      between Lender and Borrower. Such written amendment agreement and/or
      supplementary agreement executed by and between Lender and Borrower are an
      integral part of this Agreement, and shall have the same legal validity as
      this Agreement.

            

    

     

    
      	
               
      

            	
              10.4

            	
              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 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.

            

    

     

    
      	
               
      

            	
              10.5

            	
              The
      attachments (if any) to this Agreement shall be an integral part of this
      Agreement and shall have the same legal validity as this
      Agreement.

            

    

     

    The
Remainder of this page is intentionally left blank

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

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

     

    Lender:  Trunkbow
Asia Pacific(Shandong) Co., Ltd.

    

    
      
        	
                By:

              	
                /s/ Wanchun
      HOU

              	 
      
	
                Name: 

              	
                Wanchun
      HOU

              	 
      
	
                Title:

              	
                Legal
      Representative

              	 
      
	 
      	 
      	 
      
	
                Borrower:
      Qiang LI

              	 
      
	 
      	 
      	 
      
	
                By:

              	
                /s/
      Qiang LI

              	 
      

      

    

    
      
         

      

      
        11Loan
Agreement

     

    This Loan
Agreement (this “Agreement”) is made and entered into by and between the Parties
below as of the 20th day of
December, 2007 in Jinan, the People’s Republic of China (“China” or the
“PRC”):

     

    
      	
               
      

            	
              (1)

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

            

    

     

    
      
        	
                 
      

              	
                (2)

              	
                Liangyao
      XIE (“Borrower”), a Chinese citizen with Chinese Identification No.:
      370111196606052012.

              

      

    

     

    Each of
Lender and Borrower shall be hereinafter referred to as a “Party” respectively,
and as the “Parties” collectively.

     

    Whereas,

     

    Borrower
holds 30% of equity interests (“Borrower Equity Interest”) in Trunkbow
Technologies (Shenzhen) Co., Ltd. (“Borrower Company”), Borrower Company is a
limited company duly registered in Shenzhen, China with its registered capital
of RMB 5,000,000.

     

    Lender
intends to provide Borrower with a loan to be used under this Agreement. After
friendly consultation, the Parties agree as follows:

     

    
      	 	
              1.

            	
              Loan

            

    

     

    
      	
               
      

            	
              1.1

            	
              In
      accordance with the terms and conditions of this Agreement, Lender agrees
      to provide a loan in the amount of RMB 1,500,000 (the “Loan”) to Borrower.
      The term of the Loan shall be 10 years from the date of this Agreement,
      which may be extended upon mutual written consent of the Parties. During
      the term of the Loan or the extended term of the Loan, Borrower shall
      immediately repay the full amount of the Loan in the event any one or more
      of the following circumstances
occur:

            

    

     

    
      	
               
      

            	
              1.1.1

            	
              30
      days elapse after Borrower receives written notice from Lender requesting
      repayment of the Loan;

            

    

     

    
      	
               
      

            	
              1.1.2

            	
              Borrower’s
      death, lack or limitation of civil
capacity;

            

    

     

    
      	
               
      

            	
              1.1.3

            	
              Borrower
      ceases (for any reason) to be an Shareholder of Borrower
      Company;

            

    

     

    
      	
               
      

            	
              1.1.4

            	
              Borrower
      engages in criminal act or is involved in criminal
    activities;

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              1.1.5

            	
              Any
      third party filed a claim against Borrower that exceeds RMB500,000;
      or

            

    

     

    
      	
               
      

            	
              1.1.6

            	
              According
      to the applicable laws of China, foreign investors are permitted to invest
      in value-added telecommunication service businesses in China with a
      controlling stake or in the form of wholly-foreign-owned enterprises, the
      relevant competent authorities of China begin to approve such investments,
      and Lender exercises the exclusive option under the Exclusive Option
      Agreement (the “Exclusive Option Agreement”) described in Sections 2.4 of
      this Agreement.

            

    

     

    
      	
               
      

            	
              1.2

            	
              Lender
      agrees to remit the total amount of the Loan to the account designated by
      Borrower within 20 days after receiving a written notification from the
      Borrower regarding the same, provided that all the conditions precedent in
      Section 2 are fulfilled. Borrower shall provide Lender with a written
      receipt for the Loan upon receiving the Loan. The Loan provided by Lender
      under this Agreement shall inure to Borrower’s benefit only and not to
      Borrower’s successors or assigns.

            

    

     

    
      	
               
      

            	
              1.3

            	
              Borrower
      agrees to accept the aforementioned Loan provided by Lender, and hereby
      agrees and warrants using the Loan to provide capital for Borrower Company
      to develop the business of Borrower Company. Without Lender’s prior
      written consent, Borrower shall not use the Loan for any purpose other
      than as set forth herein.

            

    

     

    
      	
               
      

            	
              1.4

            	
              Lender
      and Borrower hereby agree and acknowledge that Borrower’s method of
      repayment may at Lender’s option take the form of Borrower’s transferring
      the Borrower Equity Interest to Lender or Lender’s designated persons
      (legal or natural persons) pursuant to the Lender’s exercise of its right
      to acquire the Borrower Equity Interest under the Exclusive Option
      Agreement.

            

    

     

    
      	
               
      

            	
              1.5

            	
              Lender
      and Borrower hereby agree and acknowledge that any proceeds from the
      transfer of the Borrower Equity Interest (to the extent permissible) shall
      be used to repay the Loan to Lender, in accordance with this Agreement in
      the manner designated by Lender.

            

    

     

    
      	
               
      

            	
              1.6

            	
              Lender
      and Borrower hereby agree and acknowledge that to the extent permitted by
      applicable laws, Lender shall have the right but not the obligation to
      purchase or designate other persons (legal or natural persons) to purchase
      Borrower Equity Interest in part or in whole at any time, at the price
      stipulated in the Exclusive Option
Agreement.

            

    

     

    
      	
               
      

            	
              1.7

            	
              Borrower
      also undertakes to execute an irrevocable Power of Attorney (the “Power of
      Attorney”), which authorizes a legal or natural person designated by
      Lender to exercise all of Borrower’s rights as a shareholder of Borrower
      Company.

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              1.8

            	
              When
      Borrower transfers Borrower Equity Interest to Lender or Lender’s
      designated person, in the event that the transfer price of such equity
      interest equals or is lower than the principal of the Loan under this
      Agreement, the Loan under this Agreement shall be deemed an interest-free
      loan. In the event that the transfer price of such equity interest exceeds
      the principal of the Loan under this Agreement, the excess over the
      principal shall be deemed the interest of the Loan under this Agreement
      payable by Borrower to Lender.

            

    

     

    
      	 	
              2.

            	
              Conditions
      Precedent

            

    

     

    The
obligation of Lender to provide the Loan to Borrower contemplated in Section 1.1
shall be subject to the satisfaction of the following conditions, unless waived
in writing by Lender.

     

    
      	
               
      

            	
              2.1

            	
              Lender
      receives the written notification for drawdown under the Loan sent by
      Borrower according to Section 1.2.

            

    

     

    
      	
               
      

            	
              2.2

            	
              Borrower
      Company and Lender or Lender’s designated persons (legal or natural
      persons) have officially executed an Exclusive Business Cooperation
      Agreement (“Exclusive Business Cooperation Agreement”), under which Lender
      or Lender’s designated persons (legal or natural persons), as an exclusive
      service provider, will provide Borrower Company with technical service and
      business consulting service.

            

    

     

    
      	
               
      

            	
              2.3

            	
              Borrower,
      Borrower Company and Lender or Lender’s designated persons (legal or
      natural persons) have executed a Share Pledge Agreement (“Share Pledge
      Agreement”), the contents of which have been confirmed, and according to
      the Share Pledge Agreement, Borrower agrees to pledge Borrower Equity
      Interest to Lender or Lender’s designated persons (legal or natural
      persons).

            

    

     

    
      	
               
      

            	
              2.4

            	
              Borrower,
      Lender and Borrower Company have officially executed an Exclusive Option
      Agreement, the contents of which have been confirmed, and under which
      Borrower shall irrevocably grant Lender an exclusive option to purchase
      all of the Borrower Equity
Interest.

            

    

     

    
      	
               
      

            	
              2.5

            	
              Borrower
      has executed an irrevocable Power of Attorney (“Power of Attorney”), which
      authorizes Lender or Lender’s designated persons (legal or natural
      persons) to exercise all of Borrower’s rights as a shareholder in Borrower
      Company.

            

    

     

    
      	
               
      

            	
              2.6

            	
              The
      aforementioned Share Pledge Agreement, Power of Attorney, Exclusive Option
      Agreement and Exclusive Business Cooperation Agreement have been entered
      into before or on the date of execution of this Agreement and shall have
      full legal validity without any default or encumbrance related to these
      agreements or contracts, and all the related filing procedures, approvals,
      authorization, registrations and government procedures have been completed
      (as applicable).

            

    

     

    
      	
               
      

            	
              2.7

            	
              All
      the representations and warranties by Borrower in Section 3.2 are true,
      complete, correct and not
misleading.

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              2.8

            	
              Borrower
      has not violated the covenants in Section 4 of this Agreement, and no
      event which may affect Borrower’s performance of its obligations under
      this Agreement has occurred or is expected to
  occur.

            

    

     

    
      	 	
              3.

            	
              Representations
      and Warranties

            

    

     

    
      	
               
      

            	
              3.1

            	
              Between
      the date of this Agreement and the date of termination of this Agreement,
      Lender hereby makes the following representations and warranties to
      Borrower:

            

    

     

    
      	
               
      

            	
              3.3.1

            	
              Lender
      is a company duly organized and legally existing in accordance with the
      laws of the PRC;

            

    

     

    
      	
               
      

            	
              3.3.2

            	
              Lender
      has the legal capacity to execute and perform this Agreement. The
      execution and performance by Lender of this Agreement is consistent with
      Lender’s scope of business and the provisions of Lender’s corporate bylaws
      and other organizational documents, and Lender has obtained all necessary
      and proper approvals and authorizations for the execution and performance
      of this Agreement; and

            

    

     

    
      	
               
      

            	
              3.3.3

            	
              This
      Agreement constitutes Lender’s legal, valid and binding obligations
      enforceable in accordance with its
terms.

            

    

     

    
      	
               
      

            	
              3.2

            	
              Between
      the date of this Agreement and the date of termination of this Agreement,
      Borrower hereby makes the following representations and
      warranties:

            

    

     

    
      	
               
      

            	
              3.3.1

            	
              Borrower
      has the legal capacity to execute and perform this Agreement. Borrower has
      obtained all necessary and proper approvals and authorizations for the
      execution and performance of this
Agreement;

            

    

     

    
      	
               
      

            	
              3.3.2

            	
              This
      Agreement constitutes Borrower’s legal, valid and binding obligations
      enforceable in accordance with its terms;
and

            

    

     

    
      	
               
      

            	
              3.3.3

            	
              There
      are no disputes, litigation, arbitrations, administrative proceedings or
      any other legal proceedings relating to Borrower, nor are there any
      potential disputes, litigations, arbitrations, administrative proceedings
      or any other legal proceedings relating to
  Borrower.

            

    

     

    
      	 	
              4.

            	
              Borrower’s
      Covenants

            

    

     

    
      	
               
      

            	
              4.1

            	
              As
      and when she becomes, and for so long as she remains a shareholder of
      Borrower Company, Borrower covenants that during the term of this
      Agreement, Borrower shall cause Borrower
  Company:

            

    

     

    
      	
               
      

            	
              4.4.1

            	
              to
      strictly abide by the provisions of the Exclusive Option Agreement and the
      Exclusive Business Cooperation Agreement, and to refrain from any
      action/omission that may affect the effectiveness and enforceability of
      the Exclusive Option Agreement and the Exclusive Business Cooperation
      Agreement;

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              4.4.2

            	
              at
      the request of Lender (or a party designated by Lender), to execute
      contracts/agreements on business cooperation with Lender (or a party
      designated by Lender), and to strictly abide by such
      contracts/agreements;

            

    

     

    
      	
               
      

            	
              4.4.3

            	
              to
      provide Lender (or a party designated by Lender) with all of the
      information on Borrower Company’s business operations and financial
      condition at Lender’s request;

            

    

     

    
      	
               
      

            	
              4.4.4

            	
              to
      immediately notify Lender of the occurrence or possible occurrence of any
      litigation, arbitration or administrative proceedings relating to Borrower
      Company’s assets, business or
income;

            

    

     

    
      	
               
      

            	
              4.4.5

            	
              at
      the request of Lender, to appoint any persons designated by Lender as
      directors of Borrower Company;

            

    

     

    
      	
               
      

            	
              4.4.6

            	
              without
      Lender’s prior written consent, not to supplement, change or amend its
      articles of association in any manner, increase or decrease its registered
      capital or change its share capital structure in any
    manner;

            

    

     

    
      	
               
      

            	
              4.4.7

            	
              to
      maintain its corporate existence in accordance with good financial and
      business standards and practices by prudently and effectively operating
      its business and handling its
affairs;

            

    

     

    
      	
               
      

            	
              4.4.8

            	
              without
      Lender’s prior written consent, not to sell, transfer, mortgage or dispose
      of in any other manner its legal or beneficial interest in any of its
      assets, business or revenue at any time from the date of this Agreement,
      or permit the encumbrance of any other security interest
      thereon;

            

    

     

    
      	
               
      

            	
              4.4.9

            	
              without
      Lender’s prior written consent, not to incur, inherit, guarantee or
      otherwise allow for the existence of any debt, except for (i) debt
      incurred in the ordinary course of business other than through any loans;
      and (ii) debt already disclosed to Lender for which Lender’s written
      consent has been obtained;

            

    

     

    
      	
               
      

            	
              4.4.10

            	
              to
      operate its businesses in the ordinary course and to maintain the value
      of  its assets;

            

    

     

    
      	
               
      

            	
              4.4.11

            	
              without
      the prior written consent of Lender, not to execute any major contract,
      except for contracts in the ordinary course of business (for purpose of
      this subsection, a contract with a value exceeding RMB500,000 shall be
      deemed a major contract);

            

    

     

    
      	
               
      

            	
              4.4.12

            	
              without
      the prior written consent of Lender, not to provide any person with any
      loan, credit or security;

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              4.4.13

            	
              to
      procure and maintain insurance from an insurance carrier acceptable to
      Lender, at an amount and type of coverage typical for companies that
      operate similar businesses in the same
area;

            

    

     

    
      	
               
      

            	
              4.4.14

            	
              without
      the prior written consent of Lender, not to merge, consolidate with,
      acquire, or invest in any party;

            

    

     

    
      	
               
      

            	
              4.4.15

            	
              in
      order to maintain the ownership of all of its assets, to 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;

            

    

     

    
      	
               
      

            	
              4.4.16

            	
              without
      the prior written consent of Lender, not to distribute dividends to
      shareholders, provided that upon Lender’s written request, to distribute
      the distributable profits in whole or in part to the respective
      shareholders.

            

    

     

    
      	
               
      

            	
              4.2

            	
              Borrower
      covenants that during the term of this Agreement, she
    shall:

            

    

     

    
      	
               
      

            	
              4.4.1

            	
              endeavor
      to keep Borrower Company to engage in its current value-added
      telecommunication businesses;

            

    

     

    
      	
               
      

            	
              4.4.2

            	
              abide
      by the provisions of this Agreement, the Power of Attorney, the Share
      Pledge Agreement and the Exclusive Option Agreement, perform her
      obligations under this Agreement, the Power of Attorney, the Share Pledge
      Agreement and the Exclusive Option Agreement, and refrain from any
      action/omission that may affect the effectiveness and enforceability of
      this Agreement, the Power of Attorney, the Share Pledge Agreement and the
      Exclusive Option Agreement;

            

    

     

    
      	
               
      

            	
              4.4.3

            	
              not
      sell, transfer, mortgage or dispose of in any other manner the legal or
      beneficial interest in Borrower Equity Interest, or allow the encumbrance
      thereon of any security interest or the encumbrance, except in accordance
      with the Share Pledge Agreement;

            

    

     

    
      	
               
      

            	
              4.4.4

            	
              cause
      any shareholders’ meeting and/or board of directors meeting of Borrower
      Company not to approve the sale, transfer, mortgage or disposition in any
      other manner of any legal or beneficial interest in Borrower Equity
      Interest, or allow the encumbrance thereon of any security interest,
      except to Lender or Lender’s designated
person;

            

    

     

    
      	
               
      

            	
              4.4.5

            	
              cause
      any shareholders’ meeting and/or board of directors of the Borrower
      Company not to approve the merger or consolidation of Borrower Company
      with any person, or its acquisition of or investment in any person,
      without the prior written consent of
Lender;

            

    

     

    
      	
               
      

            	
              4.4.6

            	
              immediately
      notify Lender of the occurrence or possible occurrence of any litigation,
      arbitration or administrative proceedings relating to Borrower Equity
      Interest;

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              4.4.7

            	
              to
      the extent necessary to maintain her ownership of the Borrower Equity
      Interest, execute all necessary or appropriate documents, take all
      necessary or appropriate actions and file all necessary or appropriate
      complaints or raise necessary and appropriate defense against all
      claims;

            

    

     

    
      	
               
      

            	
              4.4.8

            	
              without
      the prior written consent of Lender, refrain from any action / omission
      that may have a material impact on the assets, business and liabilities of
      Borrower Company;

            

    

     

    
      	
               
      

            	
              4.4.9

            	
              appoint
      any designee of Lender as director of Borrower Company, at the request of
      Lender;

            

    

     

    
      	
               
      

            	
              4.4.10

            	
              to
      the extent permitted by the laws of China, at the request of Lender at any
      time, promptly and unconditionally transfer all of Borrower Equity
      Interest to Lender or Lender’s designated representative at any time, and
      cause the other shareholders of Borrower Company to waive their right of
      first refusal with respect to the share transfer described in this
      section;

            

    

     

    
      	
               
      

            	
              4.4.11

            	
              to
      the extent permitted by the laws of China, at the request of Lender at any
      time, cause the other shareholders of Borrower Company to promptly and
      unconditionally transfer all of their equity interests to Lender or
      Lender’s designated representative at any time, and Borrower hereby waives
      her right of first refusal (if any) with respect to the share transfer
      described in this section;

            

    

     

    
      	
               
      

            	
              4.4.12

            	
              in
      the event that Lender purchases Borrower Equity Interest from Borrower in
      accordance with the provisions of the Exclusive Option Agreement, use such
      purchase price obtained thereby to repay the Loan to Lender;
      and

            

    

     

    
      	
               
      

            	
              4.4.13

            	
              without
      the prior written consent of Lender, not to cause Borrower Company to
      supplement, change, or amend its articles of association in any manner,
      increase or decreases its registered capital or change its share capital
      structure in any manner.

            

    

     

    
      	 	
              5.

            	
              Liability
      for Default

            

    

     

    
      	
               
      

            	
              5.1

            	
              In
      the event either  Party breaches this Agreement or otherwise
      causes the non-performance of this Agreement in part or in whole, the
      Party shall be liable for such breach and shall compensate all damages
      (including litigation and attorneys fees) resulting therefrom. In the
      event that both Parties breach this Agreement, each Party shall be liable
      for its respective breach.

            

    

     

    
      	
               
      

            	
              5.2

            	
              In
      the event that Borrower fails to perform the repayment obligations set
      forth in this Agreement, Borrower shall pay overdue interest of 0.01% per
      day for the outstanding payment, until the day Borrower repays the full
      principal of the Loan, overdue interests and other payable
      amounts.

            

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      	 	
              6.

            	
              Notices

            

    

     

    
      	
               
      

            	
              6.1

            	
              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:

            

    

     

    
      	
               
      

            	
              6.6.1

            	
              Notices
      given by personal delivery, by courier service or by registered mail,
      postage prepaid, shall be deemed effectively given on the date of
      delivery.

            

    

     

    
      	
               
      

            	
              6.6.2

            	
              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).

            

    

     

    
      	
               
      

            	
              6.2

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

            

    

     

    Lender:  Trunkbow
Asia Pacific(Shandong) Co., Ltd.

    
      	
               
      

            	
              Address:

            	
              The
      sixth floor, mainbuilding, Shanda Technology Industrial Zone, Yingxiu
      Road, Hi-tech Development District,
Jinan

            

    

    
      	
               
      

            	
              Attn:

            	
              Ying
      XIA

            

    

    
      	
               
      

            	
              Phone:

            	
              0086-531-89706001

            

    

    
      	
               
      

            	
              Facsimile:

            	
              0086-531-89706000

            

    

    
      E-mail:
xiaying@trunkbow.com

    

     

    
      Borrower:
Liangyao XIE

      
        	
                 
      

              	
                Address:

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

              

      

      
        
          	
                   
      

                	
                  Phone:

                	
                  0086-755-82028892

                

        

      

    

     

    
      	
               
      

            	
              6.3

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

            

    

     

    
      	 	
              7.

            	
              Duty
      to Maintain
Confidentiality

            

    

     

    The
Parties acknowledge that any oral or written information exchanged among them
with respect to this Agreement is confidential information. The Parties shall
maintain the confidentiality of all such information, and without the written
consent of other Party, either Party shall not disclose any relevant information
to any third party, 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

        
          

        

      

      
         

      

    

     

    
      	 	
              8.

            	
              Force
      Majeure

            

    

     

    
      	
               
      

            	
              8.1

            	
              “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.

            

    

     

    
      	
               
      

            	
              8.2

            	
              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.

            

    

     

    
      	 	
              9.

            	
              Governing
      Law and Resolution of
Disputes

            

    

     

    
      	
               
      

            	
              9.1

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

            

    

     

    
      	
               
      

            	
              9.2

            	
              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 Party 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.

            

    

     

    
      	
               
      

            	
              9.3

            	
              Upon
      the occurrence of any disputes arising from the construction and
      performance of this Agreement or during the pending arbitration of any
      dispute, except for the matters under dispute, the Parties to this
      Agreement shall continue to exercise their respective rights under this
      Agreement and perform their respective obligations under this
      Agreement.

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	 	
              10.

            	
              Miscellaneous

            

    

     

    
      	
               
      

            	
              10.1

            	
              This
      Agreement shall become effective on the date thereof, and shall expire
      upon the date of full performance by the Parties of their respective
      obligations under this Agreement.

            

    

     

    
      	
               
      

            	
              10.2

            	
              This
      Agreement shall be written in both Chinese and English language in two
      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.

            

    

     

    
      	
               
      

            	
              10.3

            	
              This
      Agreement may be amended or supplemented through written agreement by and
      between Lender and Borrower. Such written amendment agreement and/or
      supplementary agreement executed by and between Lender and Borrower are an
      integral part of this Agreement, and shall have the same legal validity as
      this Agreement.

            

    

     

    
      	
               
      

            	
              10.4

            	
              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 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.

            

    

     

    
      The
attachments (if any) to this Agreement shall be an integral part of this
Agreement and shall have the same legal validity as this
Agreement.

    

     

    The
Remainder of this page is intentionally left blank

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

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

     

    Lender:  Trunkbow
Asia Pacific(Shandong) Co., Ltd.

    

    
      
        	
                By:

              	
                /s/ Wanchun
      HOU

              	 
      
	
                Name: 

              	
                Wanchun
      HOU

              	 
      
	
                Title:

              	
                Legal
      Representative

              	 
      
	 
      	 
      	 
      
	
                

                  Borrower:
      Liangyao XIE

                

              	 
      
	 
      	 
      	 
      
	
                By:

              	
                /s/ Liangyao
      XIE

              	 
      

      

    

    
      
         

      

      
        11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]