Document:

AIRSPAN
      NETWORKS INC.

    

    Non-Qualified
      Stock Option Agreement for 

    Employees

    

      
        	
                Employee/Optionee:

              	
                Padraig
                  Byrne

              
	 	 
	
                Number
                  of shares of Common 

              	 
	
                Stock
                  subject to this Agreement:

              	
                250,000

              

      

    

     

     

    Pursuant
      to the Airspan Networks Inc. Omnibus Equity Compensation Plan (the "Plan"),
      the
      Compensation Committee (the "Committee") of the Board of Directors of Airspan
      Networks Inc. (the "Company") has granted to you on this date an option (the
      "Option") to purchase the number of shares of the Company's Common Stock, $.0003
      par value ("Common Stock"), set forth above. Such shares (as the same may be
      adjusted as described in Section 10 below) are herein referred to as the
      "Option Shares". 

    

    The
      Option shall constitute and be treated at all times by you and the Company
      as a
      "non-qualified stock option" for U.S. Federal income tax purposes and shall
      not
      constitute and shall not be treated as an "incentive stock option" as defined
      under Section 422(b) of the Internal Revenue Code of 1986, as amended (the
      "Code"). 

    

    The
      terms
      and conditions of the Option are set out below.

    
       

      
        	
                1.

              	
                Date
                  of Grant. 

              

      

      

      The
        Option is granted to you as of March 3, 2008.

      

      
        	
                2.

              	
                Termination
                  of Option. 

              

      

      

      Except
        as
        provided below, your right to exercise the Option (and to purchase the Option
        Shares) shall expire and terminate in all events on the earliest of (i) ten
        (10)
        years from the date of grant, or (ii) the date provided in Section 8 below
        in
        the event you cease to be employed by the Company or any subsidiary or affiliate
        thereof. Provided, however, that notwithstanding clauses (i) and (ii) and
        anything else to the contrary in this Agreement, if you are employed by the
        Company or any subsidiary or affiliate of the Company immediately before
        a
        Change in Control (as defined in Section 4(b) below), and if the Company
        or any
        successor, assign, or purchaser thereof does not either (A) continue your
        Option (as adjusted, if necessary, to retain its pre Change in Control economic
        value and aggregate "spread" between the Option Shares' fair market value
        and
        exercise price) or (B) grant you a new Option of at least equivalent economic
        value, aggregate "spread," and other terms and conditions as your pre Change
        in
        Control Option, then you will automatically vest in an additional 50% of
        any
        remaining unvested Options that you may hold, and, notwithstanding anything
        herein to the contrary, you may exercise all such vested Options (together
        with
        any other previously or subsequently vested Options) until the later of (i)
        the
        date specified in Section 8 below or (ii) one (1) year from such Change in
        Control, but in no event longer than ten (10) years from the original date
        of
        grant. 

       

      
        
          
          

        

        
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            1 of 9

          
            

          

        

        
          
          

        

      

      
        

      
        	
                3.

              	
                Option
                  Price. 

              

      

      

      The
        purchase price to be paid upon the exercise of the Option is $_____ per share
        (subject to adjustment as provided in Section 10 hereof), which is equal
        to the
        Fair Market Value of a share of Common Stock on the date of grant.

      

      
        	
                4.

              	
                Vesting.
                  

              

      

      

        
          	
                  (a)
                    

                	
                  Unless
                    otherwise accelerated upon a Change in Control as provided for
                    in Section
                    2 above, upon the one (1) year anniversary of March 3, 2008 the
                    Option
                    shall become exercisable to purchase ("vest with respect to")
                    25% of the
                    total number of Option Shares, and, after the first such anniversary
                    date,
                    shall vest each month (as of the monthly anniversary of that
                    date) for the
                    next 36 months with respect to an additional 1/48 of the total
                    number of
                    Option Shares (rounded to the nearest whole share), such that
                    100% of the
                    Option Shares will vest in four (4) years.

                

        

      

      

      
        	
                (b)

              	
                For
                  purposes hereof, a "Change in Control" shall be deemed to have
                  occurred if
                  the conditions set forth in any one of the following paragraphs
                  shall have
                  been satisfied:

              

      

      

      
        	 	
                (1)

              	
                Any
                  Person becomes the beneficial owner of shares having 50% or more
                  of the
                  total number of votes that may be cast for the election of directors
                  of
                  the Company; or 

              

      

      

      
        	 	
                (2)

              	
                As
                  a result of, or in connection with, any tender or exchange offer,
                  merger
                  or other business combination, sale of assets or contested election,
                  or
                  any combination of the foregoing (a "Transaction"), the persons
                  who were
                  directors of the Company before the Transaction shall cease to
                  constitute
                  a majority of the Board of Directors of the Company or any successor
                  to
                  the Company or its assets; or 

              

      

      

      
        	 	
                (3)

              	
                If
                  at any time (i) the Company shall consolidate with, or merge with,
                  any
                  other person and the Company shall not be the continuing or surviving
                  corporation, (ii) any Person shall consolidate with, or merge with,
                  the Company and the Company shall be the continuing or surviving
                  corporation and in connection therewith, all or part of the outstanding
                  stock shall be changed into or exchanged for stock or other securities
                  of
                  any other Person or cash or any other property, (iii) the Company
                  shall be a party to a statutory share exchange with any other Person
                  after
                  which the Company is a Subsidiary of any other Person, or (iv) the
                  Company shall sell or otherwise transfer 50% or more of the assets
                  or
                  earnings power of the Company and its subsidiaries (taken as a
                  whole) to
                  any Person or Persons. The term "Person" shall have the meaning
                  ascribed
                  to such term in Section 3(a)(9) of the Securities Exchange Act
                  of 1934
                  ("Exchange Act") and used in Sections 13(d) and 14(d) thereof,
                  including a
                  "group" as defined in Section 13(d)
                  thereof.

              

      

      

      
        
          
          

        

        
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            2 of 9

          
            

          

        

        
          
          

        

        
          

        

      

      
        	
                (c)

              	
                If
                  a Change in Control occurs and the Company fails to remain in existence,
                  the Option shall become an obligation of the person succeeding
                  to the
                  business of the Company or otherwise responsible for the Company's
                  obligations.

              

      

      

      
        	
                (d)

              	
                Nothing
                  in this Agreement pertaining to a Change in Control shall limit
                  or
                  restrict the rights otherwise provided to you in this Agreement
                  or the
                  exercisability of the Option.

              

      

      

      
        	
                5.

              	
                Additional
                  Provisions Relating to Exercise.

              

      

      

      Once
        you
        become entitled to exercise the Option (and purchase Option Shares) as provided
        in Section 4 hereof, such right will continue until the date on which the
        Option
        expires and terminates pursuant to Section 2 hereof.

      

      
        	
                6.

              	
                Exercise
                  of Option. 

              

      

      

      
        	
                (a)

              	
                An
                  Option may be exercised by giving written notice of exercise to
                  the
                  Company specifying the number of shares to be purchased. Such notice
                  must
                  be signed and dated and be accompanied by payment in full of the
                  exercise
                  price. If a person other than you exercises the Option, such person
                  shall
                  submit proof satisfactory to the Company of the right of such person
                  to
                  exercise the Option.

              

      

      

      
        	
                (b)

              	
                To
                  exercise the Option, you must use one of the payment methods specified
                  below at the date of exercise. Payment of the full exercise price
                  must be
                  accompanied by payment, if you are subject to taxes in the USA,
                  of the
                  applicable income tax and social security payments, and, if you
                  are
                  subject to taxes in the United Kingdom, by both primary (employee's)
                  and
                  secondary (employer's) Class 1 National Insurance Contributions
                  ("NIC's"),
                  together with any other taxes to which you may be subjected arising
                  on the
                  exercise of the Options to the extent permitted by law (the "Tax
                  Indemnity"). Unless otherwise agreed to by the Committee, payment
                  of the
                  option price and payment in respect of the Tax Indemnity must be
                  made by
                  (i) cashier's check or wire transfer to the Company’s bank account, (ii)
                  by shares of Common Stock already owned by you (provided, that
                  for any
                  such shares that you acquired pursuant to an option issued to you
                  by the
                  Company, you have held such shares for at least six months), or
                  (iii) by a
                  cashless exercise transaction whereby you simultaneously exercise
                  an
                  Option, sell the shares of the Common Stock thereby acquired, and
                  use the
                  proceeds from such sale for payment of the exercise price; provided,
                  however,
                  that with the prior approval of the Committee, payment of such
                  option
                  price and/or Tax Indemnity may instead be made, in whole or in
                  part, by
                  the delivery to the Company of a promissory note in a form and
                  amount
                  satisfactory to the Committee, provided that the principal amount
                  of such
                  note shall not exceed the excess of such aggregate option price
                  and Tax
                  Indemnity obligation over the aggregate par value of the purchased
                  Option
                  Shares. The Option shall be deemed to be exercised upon receipt
                  by the
                  Company of both the required written notice and full payment of
                  the
                  exercise price and any other amounts required
                  above.

              

      

      

      
        
          
          

        

        
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            3 of 9

          
            

          

        

        
          
          

        

        
          

        

      

      
        	
                (c)

              	
                Subject
                  to the other applicable provisions of this Agreement and the Plan,
                  the
                  Company shall issue a certificate or certificates representing
                  the number
                  of Option Shares to which the person exercising the Option is entitled
                  as
                  soon as practicable after the date of exercise. Unless the person
                  exercising the Option otherwise directs the Company in writing,
                  the
                  certificate or certificates will be registered in your
                  name.

              

      

      

      
        	
                (d)

              	
                Notwithstanding
                  anything to the contrary in this Agreement, no shares of stock
                  purchased
                  upon exercise of the Option, and no certificate representing such
                  shares,
                  shall be issued or delivered if (a) such shares have not been admitted
                  to
                  listing upon official notice of issuance on each stock exchange,
                  if any,
                  upon which shares of that class are then listed, or (b) in the
                  opinion of counsel to the Company, such issuance or delivery would
                  (i) cause the Company to be in violation of or to incur liability
                  under any federal, state or other securities law, or any other
                  requirement
                  of law or any requirement of any stock exchange regulations or
                  listing
                  agreement to which the Company is a party, or of any administrative
                  or
                  regulatory body having jurisdiction over the Company or (ii) require
                  registration (apart from any registrations as have been theretofore
                  completed by the Company covering such shares) under any federal,
                  state,
                  or other securities or similar law.

              

      

      

      
        	
                7.

              	
                Transferability
                  of Option. 

              

      

      

      The
        Option may not be transferred by you (other than by will or the laws of descent
        and distribution or a domestic relations order) and may be exercised during
        your
        lifetime only by you (or your personal representative) or by a spouse or
        former
        spouse under a domestic relations order. For purposes of this Section, a
        ‘domestic relations order’ is an order that (i) relates to the division of
        marital property rights with a spouse or former spouse and (ii) made pursuant
        to
        a State domestic relations law. 

       

      
        
          
          

        

        
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            4 of 9

          
            

          

        

        
          
          

        

      

      
        
          

          
            	
                    8.
                      

                  	
                    Termination
                      of Employment. 

                  
	 	 
	
                    (a)
                      

                  	
                    In
                      the event that (i) the Company or any subsidiary, affiliate,
                      or parent
                      thereof terminates your employment, or (ii) you terminate your
                      employment for
                      any reason whatsoever (other than as a result of your death
                      or total and
                      permanent disability (as determined by the Company or its designated
                      representative)), then the Option may only be exercised within
                      ninety (90)
                      days after the date you cease to be so employed, and only to
                      the same
                      extent that you were entitled to exercise the Option on the
                      date you
                      ceased to be so employed by reason of such termination and
                      had not
                      previously done so.

                  
	 	 
	
                    (b)

                  	
                    In
                      the event that you cease to be employed by the Company or any
                      subsidiary,
                      affiliate, or parent thereof by reason of total and permanent
                      disability
                      (as determined by the Company or its designated representative),
                      then the
                      Option may only be exercised within one year after the date
                      you cease to
                      be so employed, and only to the same extent that you were entitled
                      to
                      exercise the Option on the date you ceased to be so employed
                      by reason of
                      such disability and had not previously done so.

                  
	 	 
	
                    (c)

                  	
                    In
                      the event that you die while employed by the Company or any
                      subsidiary,
                      affiliate, or parent thereof (or die within a period of one
                      year after
                      ceasing to be employed by the Company or any subsidiary, affiliate,
                      or
                      parent thereof by reason of disability (as described in Section
                      8(b)
                      hereof) or within 90 days of ceasing to be so employed for
                      any other
                      reason), the Option may only be exercised within one year after
                      your
                      death. In such event, the Option may be exercised during such
                      one-year
                      period by the executor or administrator of your estate or by
                      any person
                      who shall have acquired the Option through bequest or inheritance,
                      but
                      only to the same extent that you were entitled to exercise
                      the Option
                      immediately prior to the time of your death and you had not
                      previously
                      done so.

                  
	 	 
	
                    (d)

                  	
                    Notwithstanding
                      any provision contained in this Section 8 to the contrary,
                      (i) the
                      time limits provided for in this Section 8 shall be subject
                      to extension
                      in the event of a Change in Control, to the extent provided
                      for in Section
                      2 hereof, and (ii) in no event may the Option be exercised to any
                      extent by anyone after the tenth (10th) anniversary of the
                      date of grant
                      of the Option.

                  

          

        

      

      

      
        	
                9.

              	
                Representations.
                  

              

      

      

      You
        represent and warrant that you understand the tax consequences of the granting
        of the Option to you, the acquisition of rights to exercise the Option with
        respect to any Option Shares, the exercise, release or other disposal of
        the
        Option and purchase of Option Shares, and the subsequent sale or other
        disposition of any Option Shares. In addition, you understand that the Company
        may be required to pay, or account for taxes in respect of any compensation
        income, or other income or gain realized by you upon exercise of the Option
        granted hereunder. To the extent that the Company is required to pay, account
        for or withhold any such taxes, then, unless both you and the Committee have
        otherwise agreed upon alternate arrangements, you hereby agree that the Company
        may deduct from any payments of any kind otherwise due to you an amount equal
        to
        the total taxes required to be so paid, accounted for or withheld (as permitted
        by law), or if such payments are inadequate to satisfy such taxes, or if
        no such
        payments are due or to become due to you, then you agree to provide the Company
        with cash funds or make other arrangements satisfactory to the Company regarding
        such payment. 

       

      
        
          
          

        

        
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            5 of 9

          
            

          

        

        
          
          

        

      

      
        

      If
        you
        are subject to income taxes in the United Kingdom, the offer of the Options
        contained in this Agreement is further conditional
        upon
        your agreeing at the request of the Company to enter into such written agreement
        or election with the Company and/or with any connected person of the Company
        as
        is required to procure that you will assume responsibility for such (employer's)
        Class 1 NIC's as would otherwise fall on the Company in connection with the
        grant, exercise, release or other disposal of your Options. Any failure on
        your
        part to enter into any such agreement or election within seven days of the
        date
        of receipt from the Company of a notice requiring the same, will result in
        the
        cancellation of the Options granted to you under the terms of this Agreement
        and
        pending entry by you into such agreement or election you agree that no exercise,
        or further exercise, of the Options will be permitted. 

      

      It
        is
        understood that all matters with respect to the total amount of taxes to
        be
        withheld in respect of any such compensation income shall be determined by
        the
        Company in its sole discretion.

      

      
        	
                10.

              	
                Adjustments.
                  

              

      

      

      In
        the
        event that, after the date hereof, the outstanding shares of the Company's
        Common Stock shall be increased or decreased or changed into or exchanged
        for a
        different number or kind of shares of stock or other securities of the Company
        or of another corporation through reorganization, merger or consolidation,
        recapitalization, reclassification, stock split, split-up, combination or
        exchange of shares or declaration of any dividends payable in Common Stock,
        the
        Committee shall appropriately adjust the number of shares of Common Stock
        (and
        the option price per share) subject to the unexercised portion of the Option
        (to
        the nearest possible full share), and such adjustment shall be effective
        and
        binding for all purposes of this Agreement and the Plan.

      

      
        	
                11.

              	
                Continuation
                  of Employment. 

              

      

      

      Neither
        the Plan nor the Option shall confer upon you any right to continue in the
        employ of (or any other relationship with) the Company or any subsidiary,
        affiliate, or parent thereof, or limit in any respect the right of the Company
        or any subsidiary, affiliate, or parent thereof to terminate your employment
        or
        other relationship with the Company or any subsidiary, affiliate, or parent
        thereof, as the case may be, at any time. 

      

      
        
          
          

        

        
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            6 of 9

          
            

          

        

        
          
          

        

      

      
        

      

      
        	
                12.

              	
                Confidentiality
                  and Non-Competition.

              

      

      

      Notwithstanding
        any other provision of this Agreement, this Option may not be exercised on
        or
        after the date that (and any Option Shares acquired pursuant to this Option
        or
        the proceeds from the subsequent sale of such Shares shall be forfeited by
        you
        if) you engage in any conduct that violates any non-competition, confidentiality
        or non-solicitation provisions (a) under your employment or other agreement
        with the Company (or any of its affiliates or subsidiaries) or (b) that are
        otherwise applicable to your employment with the Company (or any of its
        affiliates or subsidiaries). You acknowledge that this Option constitutes
        good,
        valuable and sufficient consideration for his or her performance of those
        provisions.

      

      

      
        	
                13.

              	
                Stockholder
                  Rights. 

              

      

      

      No
        person
        or entity shall be entitled to vote, receive dividends, or be deemed for
        any
        purpose the holder of any Option Shares until the Option shall have been
        duly
        exercised to purchase such Option Shares in accordance with the provisions
        of
        this Agreement and the applicable share certificate shall have been issued.
        

      

      
        	
                14.

              	
                Plan
                  Documents. 

              

      

      

      This
        Agreement is qualified in its entirety by reference to the provisions of
        the
        Plan, as amended from time to time, which are hereby incorporated herein
        by
        reference. Capitalized terms not defined herein shall have the meaning ascribed
        to them in the Plan. However, notwithstanding the above, no Plan amendment
        may
        deprive you of any Options theretofore granted under the Plan without your
        consent, and no Plan amendment requiring shareholder approval (if any) may
        be
        made without such shareholder approval. 

      

      The
        interpretation and construction by the Committee of the Plan, this Agreement,
        the Options granted hereunder, and such rules and regulations as may be adopted
        by the Committee for the purpose of administering the Plan, shall be final
        and
        binding upon you. Until the Options shall expire, terminate, or be exercised
        in
        full, the Company shall, upon written request therefor, send a copy of the
        Plan,
        in its then-current form, to you or any other person or entity then entitled
        to
        exercise the Options.

      

      
        	
                15.

              	
                Governing
                  Law. 

              

      

      

      This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of Washington, but without regard to the principle of conflict of laws
        thereof. If any one or more provisions of this Agreement shall be found to
        be
        illegal or unenforceable in any respect, the validity and enforceability
        of the
        remaining provisions hereof shall not in any way be affected or impaired
        thereby.

      

      
        
          
          

        

        
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                16.

              	
                Lock
                  Up

              

      

      

      You
        acknowledge that in connection with any public offering of the Common Stock,
        the
        underwriters for the Company may require that the Company's officers, directors,
        and/or certain other shareholders not sell their shares of Common Stock for
        a
        certain period of time before or after the effectiveness of the Registration
        Statement filed in connection with such offering. You hereby agree that upon
        the
        Company's request in connection with any such public offering, that you will
        not, directly or indirectly, offer, sell, contract to sell, make subject
        to any
        purchase option, or otherwise dispose of any shares of Common Stock for a
        period
        requested by the underwriter or its representative, not to exceed 10
        days before
        and 180 days after the date of the effectiveness of the
        Registration Statement, without the prior written consent of the underwriter
        or
        its representative.

      

      
        	
                17.

              	
                Successors
                  and Assigns. 

              

      

      

      This
        Agreement shall be binding upon and inure to the benefit of the successors
        and
        assigns of the Company and upon the legal representatives, executors,
        administrators, heirs, legatees and any permitted assignee of the
        Optionee.

      

      
        	
                18.

              	
                Notices.
                  

              

      

      

      All
        notices and other communications required or permitted hereunder shall be
        in
        writing and deemed to have been received on the date of delivery if delivered
        by
        hand or overnight express, or three days after the date of posting if mailed
        by
        registered or certified mail, postage prepaid, addressed to the Company,
        c/o
        Manager of Human Resources, at 777 Yamato Rd. Suite 310, Boca Raton, Florida
        and
        to you at your address as set forth herein (or such other address to which
        the
        Company or you hereby notify the other party hereto to send such notices
        and
        communications). Such notices and other communications shall not be considered
        delivered until actually received or deemed received pursuant to this
        Section 17.

      

      
        	
                19.

              	
                Entire
                  Agreement.

              

      

      

      This
        Agreement constitutes the entire agreement between the Company and you and
        supersedes any prior agreements and understandings, oral or written, between
        the
        Company and you concerning the subject matter of this Agreement.

      

      
        	
                20.

              	
                Construction.

              

      

      

      The
        section headings contained in this Agreement are for reference only and shall
        have no effect on the interpretation of any of the provisions of this
        Agreement.

       

      
        
          
          

        

        
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            8 of 9

          
            

          

        

        
          
          

        

      

      
        

      
        	
                21.

              	
                Amendment.

              

      

      

      This
        Agreement may (except as provided in the Plan) only be amended, altered or
        modified by a written instrument signed by the parties hereto, or their
        respective successors, and it may not be terminated (except as provided herein
        or in the Plan).

      

      

      Please
        acknowledge receipt of this Agreement by signing the enclosed copy of this
        Agreement in the space provided below and returning it promptly to the Secretary
        of the Company.

       

      	 	
              AIRSPAN
                NETWORKS INC. 

            
	 	 	 
	 	 	 
	 	
               

            
	 	
              By:
                Eric Stonestrom

            
	 	
              Its:
                Chief Executive Officer

            
	 	
               

            	 
	 	 	 
	 	 	 
	
              Accepted
                and Agreed To As of Date: 

            	
               

            
	 	 	 
	 	 	 
	 	
            
	
               

            	
              
                
                  
                    
                      Padraig
                        Byrne

                    

                  

                

              

            
	 	
              (Employee/Optionee)

            
	 	 	 
	 	
              Address:
                

            	 
	 	 
	 	
               

            
	 	 	 
	 	
               

            	 

       

      
        
           

        

        
          Page
            9 of 9Unassociated Document

    

      SUPPLEMENT
        TO LEASE AGREEMENT-LE0603

       

      THIS
        SUPPLEMENT TO LEASE AGREEMENT is made and effective as of January 1st, 2007,
        by
        and between Shanghai Yuan Hao Electronic Co., Ltd. (“Landlord”) and Shanghai Kai
        Hong Technology Co., Ltd. (“Tenant”).

       

      RECITALS

       

      A. Pursuant
        to a Lease Agreement (the “Lease”) dated as of June 28th, 2004, Landlord has
        leased to Tenant certain premises located at No.1 Lane 18 San Zhuang Road,
        Songjiang Export Processing Zone , Shanghai, China (the
“Premises”).

       

      B. Landlord
        and Tenant each desires to amend the Lease to provide for the safe and lawful
        disposal of all waste and scraps resulting from Tenant’s business conducted on
        the Premises, all on the terms and conditions contained in this
        Supplement.

       

      NOW,
        THEREFORE, in consideration of the premises and of the mutual covenants
        contained in this Supplement, the parties agree as follows:

       

      1. Disposal
        of Waste and Scraps.

       

      (a) Landlord
        shall collect, store, safeguard, transport and dispose of, in a safe and
        lawful
        manner, all waste and scraps, whether or not hazardous, of every kind and
        description, which result from or are produced by or arise in connection
        with
        Tenant’s business operations conducted on the Premises, including, but not
        limited to, those types of waste and scraps set forth on Exhibit
        A
        hereto,
        as the same may be amended from time to time by Tenant upon written notice
        to
        Landlord.

       

      (b) Landlord
        shall have the right to retain such persons (collectively, the ”Agents” and
        individually, an “Agent”) as it may select to assist it in rendering its
        services under this Supplement; provided,
        however, that each such person shall be engaged in the rendering of such
        services as its principal business; provided,
        further, that the selection of each Agent shall be subject to Tenant’s approval,
        which approval shall not be unreasonably withheld. Landlord shall cause each
        Agent to deliver to Tenant a writing agreeing to be bound by the provisions
        of
        this Supplement. Notwithstanding anything to the contrary in this Supplement,
        Landlord shall remain responsible for the rendering of services by the Agents
        in
        accordance with the terms of this Supplement. Landlord shall provide to Tenant
        a
        copy of each agreement with an Agent regarding the rendering of services
        in
        accordance with this Supplement.

       

      (c) Landlord
        shall hold and maintain, and shall cause each Agent to hold and maintain,
        during
        the Term (as defined below) all governmental permits, licenses or approvals
        required to legally perform its duties under this Supplement and to comply
        with
        all laws, rules and regulations of all governmental authorities relating
        to the
        performance of its duties under this Supplement.

       

      2. Books
        and Records.

       

      (a) Landlord
        shall establish and maintain, and shall cause each Agent to establish and
        maintain, during the Term complete and accurate records relating to the services
        rendered by it under this Supplement.

       

      (b) During
        the Term, and for five (5) years thereafter, Tenant and its representatives,
        accountants and attorneys shall have the right, during normal business hours,
        on
        twenty-four (24) hours prior written notice, to inspect, copy and make extracts
        from all such records, at the offices of Landlord set forth in Section 5(e),
        in
        order to verify compliance by Landlord and the Agents of their obligations
        under
        this Supplement.

       

      
        
          
          

        

        
          -1-

          
            

          

        

        
          
          

        

      

      (c) During
        the Term, Tenant shall have the right, at any time and without notice, to
        enter
        into and to inspect the premises of Landlord or any Agent in order to verify
        compliance by Landlord and the Agents of their obligations under this
        Supplement.

       

      3. Term
        and Termination.

       

      (a) Unless
        sooner terminated as provided below, the term (the "Term") of the Landlord’s
        rights and duties under Section 1 shall commence on the date hereof and end
        on December 31, 2007 and shall be renewed automatically thereafter for
        successive one (1) year terms unless written notice of termination is given
        by either party to the other not less than thirty (30) days before the end
        of the initial term or any subsequent one (1) year renewal term.
        Notwithstanding anything to the contrary in this Section 3(a), the Term shall
        end no later than June 28, 2009.

       

      (b) The
        Term
        shall terminate prior to the expiration of its stated term at the option
        of
        either party, if the other party shall fail to perform in any material respect
        any material obligation to be performed by it under this Supplement and such
        failure is not cured within ten (10) days after written notice of such failure
        is given by the terminating party to the defaulting party.

       

      4. Fees.

       

      (a) Tenant
        shall pay to Landlord a management fee equal to two percent (2%) of any amounts
        actually paid to Agents and received from Agents by Landlord in connection
        with
        the disposal of waste and scraps under this Supplement.

       

      (b) Tenant
        shall reimburse Landlord for all fees actually paid by Landlord to Agents
        in
        connection with the disposal of waste and scraps under this Supplement, less
        any
        amounts received by Landlord in connection therewith with the disposal thereof;
        provided,
        however, that such fees shall not exceed the amounts set forth on Exhibit A
        hereto
        without Tenant’s written consent. Landlord and Tenant shall review such fees in
        light of the market prices for such services on a quarterly basis; provided,
        however, that neither party shall be required to agree to an increase or
        decrease in the amount of such fees.

       

      (c) Tenant
        shall pay all amounts due under this Section 4 within thirty (30) days after
        receipt of a written invoice therefore, together with such information
        (including invoices of the Agents) as Tenant reasonably requires to verify
        the
        amount due.

       

      5. Miscellaneous.

       

      (a) Landlord
        acknowledges that (i) it will obtain knowledge of confidential information
        of Tenant during the Term, including, but not limited to, designs and other
        data
        and information of a proprietary nature which is not generally known to the
        public ("Confidential Information"), and that (ii) maintenance of the
        proprietary character of the Confidential Information is important to Tenant
        and
        its business operations. Landlord shall keep secret all Confidential
        Information, shall not use Confidential Information for any purpose other
        than
        as expressly authorized hereunder and shall not disclose Confidential
        Information to anyone except to the extent required in performing services
        hereunder or the Confidential Information becomes publicly available through
        no
        fault of Landlord.

       

      (b) Landlord
        shall indemnify Tenant and hold it harmless against and in respect of any
        and
        all payments, damages, demands, claims, losses, expenses, costs, obligations
        and
        liabilities (including, but not limited to, reasonable attorneys' fees and
        costs) which arise or result from or are related to any breach or failure
        by
        Landlord or any Agent to perform any of its obligations hereunder. Landlord
        shall reimburse Tenant on demand for any payment made or loss suffered by
        it at
        any time after the date hereof, based upon the judgment of any court of
        competent jurisdiction or pursuant to a bona fide compromise or settlement
        (which shall be approved by Landlord, which approval shall not be unreasonably
        withheld) of claims, demands or actions in respect of any damages to which
        the
        foregoing indemnity relates. Consummation of the transactions contemplated
        hereby shall not be deemed or construed to be a waiver of any right or remedy
        of
        the indemnified party nor shall this section or any other provision of this
        Supplement be deemed or construed to be a waiver of any ground of defense
        by the
        indemnified party.

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      (c) Tenant
        shall promptly notify Landlord of the existence of any claim, demand or other
        matter involving liabilities to third parties to which Landlord’s
        indemnification obligations would apply and shall give Landlord a reasonable
        opportunity to defend the same at its own expense and with counsel of its
        own
        selection (who shall be approved by Tenant, which approval shall not be
        unreasonably withheld); provided,
        however, that Tenant at all times also shall have the right to fully participate
        in the defense at its own expense. If Landlord within a reasonable time after
        such notice fails to defend such claim, or fails to pursue such defense
        vigorously once commenced, Tenant shall have the right, but not the obligation,
        to undertake the defense of, and to compromise or settle (exercising reasonable
        business judgment), the claim or other matter on behalf, for the account
        and at
        the risk and expense of Landlord. Except as provided in the preceding sentence,
        Tenant shall not compromise or settle the claim or other matter without the
        prior written consent of Landlord in each instance. If the claim is one that
        cannot by its nature be defended solely by Landlord, Tenant shall make available
        all information and assistance that Landlord reasonably may request; provided,
        however, that any associated expenses shall be paid by Landlord.

       

      (d) This
        Supplement constitutes the entire agreement between the parties hereto
        pertaining to the subject matter hereof, and supersedes all prior agreements,
        under-standings, negotiations and discussions, whether oral or written, relating
        to the subject matter of this Supplement. No supplement, modification, waiver
        or
        termination of this Supplement shall be valid unless executed by the party
        to be
        bound thereby.

       

      (e) Any
        notice or other communication required or permitted hereunder shall be in
        writing and shall be deemed to have been given (i) if personally delivered,
        when so delivered to the party to whom it is directed at the address set
        forth
        on the signature page hereof or (ii) if given by telecopier, when such
        notice or other communication is transmitted to the telecopier number specified
        on the signature page hereof and the appropriate answer back or telephonic
        confirmation is received. Either party may change its address hereunder by
        giving written notice thereof to the other party.

       

      (f) The
        rights and duties of each party under this Supplement are personal, and neither
        party shall assign or otherwise transfer any of its rights or delegate any
        of
        its duties hereunder (whether voluntarily or involuntarily) without the prior
        written consent of the other party in each instance. Subject to the foregoing,
        all of the terms, provi-sions and obligations of this Supplement shall inure
        to
        the benefit of and shall be binding upon the parties hereto and their
        respec-tive permitted successors and assigns.

       

      (g) Any
        controversy arising out of or relating to this Supplement or the transactions
        contemplated hereby shall be referred to arbitration before the strictly
        in accordance with the terms of this Supplement. The board of arbitrators
        shall
        convene at a place mutually acceptable to the parties in.
        The
        parties hereto agree to accept the decision of the board of arbitrators,
        and
        judgment upon any award rendered here-under may be entered in any court having
        jurisdiction thereof. Neither party shall institute a proceeding hereunder
        until
        that party has furnished to the other party at least thirty (30) days prior
        written notice of its intent to do so.

       

      (h) Each
        party hereby acknowledges and agrees that it would be difficult to fully
        compensate the other party for damages resulting from the breach or threatened
        breach of any provision of this Supplement and, accordingly, that each party
        shall be entitled to temporary and injunctive relief, including temporary
        restraining orders, preliminary injunctions and permanent injunctions, to
        enforce such provisions without the necessity of proving actual damages or
        being
        required to post any bond or undertaking in connection with any such action.
        This provision with respect to injunctive relief shall not diminish, however,
        the right of either party to any other relief or to claim and recover
        damages.

       

      (i) No
        failure to exercise, and no delay in exercising, any right, power or remedy
        hereunder shall impair any right, power or remedy which any party may have,
        nor
        shall any such delay be construed as a waiver of any such rights, powers
        or
        remedies or an acquiescence in any breach or default under this Supplement.
        The
        rights and remedies herein specified are cumulative and not exhaustive of
        any
        rights or remedies that any party would have. No waiver of any of the provisions
        of this Supplement shall be deemed or shall constitute a waiver of any other
        provisions hereof (whether or not similar), nor shall such waiver constitute
        a
        continuing waiver unless otherwise expressly provided.

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      (j) Landlord
        shall maintain at its sole expense policies of insurance in forms and with
        coverages that are customary for persons and entities participating in the
        collection, storage, safeguarding, transport and disposal of waste and scraps,
        but in no less an amount as may be necessary to hold Tenant harmless from
        any
        failure by Landlord or any Agent to fulfill its obligations under this
        Supplement. Landlord shall provide Tenant with a certificate of insurance
        or
        other written evidence of the coverage described herein as of the commencement
        of the Term and as of the annual renewal of such insurance policies. The
        policies shall provide that insurance coverage may not be canceled or be
        subject
        to a reduction of coverage or other material modification unless at least
        thirty (30) days' prior written notice is given to Tenant by the insurance
        carrier.

       

      (k) Each
        party shall be responsible to ensure that the level of noise resulting from
        its
        activities under this Supplement complies with all applicable governmental
        laws,
        rules or regulations.

       

       

       

      

       

       

       

      

       

      IN
        WITNESS WHEREOF, the parties hereto have caused this Supplement to be executed
        as of the date and year first set forth below.

       

      
        	
                TENANT:

              	
                SHANGHAI
                  KAI HONG TECHNOLOGY CO., LTD.

                 

                 

                 

                By _________________________________________

                No.1
                  Lane 18 San Zhuang Road, Songjiang Export Processing
                  Zone

              
	 	 
	
                LANDLORD:

              	
                SHANGHAI
                  YUAN HAO ELECTRONIC CO., LTD.

                 

                 

                By _________________________________________

                No.1
                  Lane 18 San Zhuang Road, 

                Songjiang
                  Export Processing Zone, 

                Shanghai,
                  China

              

      

      

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

       

      Exhibit
        A: Price
        for Disposal of Scraps

       

      

      
        	
                SKE
                  Income

              	
                No.

              	
                Scraps

              	
                Unit
                  Price

              	
                Company

              
	
                1

              	
                Carton

              	
                RMB0.80/kg

              	
                Shanghai
                  Golden Material Recycle & Utilize Co., Ltd

              
	
                2

              	
                Lead
                  Frame

              	
                RMB17.00/kg

              
	
                3

              	
                Carrier/Tape

              	
                RMB0.10/kg

              
	
                4

              	
                SUS316
                  steel

              	
                RMB10.50/kg

              
	
                5

              	
                Scrapped
                  semi finished goods and finished goods 

              	
                RMB40.00/kg

              
	
                6

              	
                Scrap

                -blue
                  tape

                -epoxy
                  solder

                -capillary

                -saw
                  blade cut

                -saw
                  blade arm

              	
                RMB90.00/kg

                RMB150.00/kg

                RMB12.00/kg

                RMB10.00/kg

                RMB2.00/kg

              	
                Shaoxin
                  Hua Ting Mental Products Co., Ltd.

              
	
                SKE

                Expenses

              	
                7

              	
                Compound

              	
                RMB1.60/kg

              	
                Shanghai
                  Ju Lang Industrial and Trading Co., Ltd.

              
	
                8

              	
                Organic
                  solvent (HW06)

              	
                RMB1,200/ton

              	
                Shanghai
                  Lu Zou Environmental Engineering Co., Ltd.

              
	
                9

              	
                Plating
                  waste (HW17)

              	
                RMB
                  450/ton

              

      

      

      
        	
                Party
                  A: Shanghai Yuan Hao Electronic Co., Ltd

                 

                Authorized
                  Signature:

                 

                _______________________

                Dated:
                  

                 

                At
                  the place of:

              	
                Party
                  B: Shanghai Kai Hong Technology Co., Ltd.

                 

                Authorized
                  Signature: 

                 

                _______________________

                Dated:
                  

                 

                At
                  the place of:

              

      

      

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

      Exhibit
        B: Schedule of Contracts and Qualification
        Certificates

       

      

      
        	
                1.

              	
                Schedule
                  of contracts to be
                  supplied

              

      

      
        	
                No.

              	
                Parties
                  to the Contracts

              
	
                1

              	
                · Shanghai
                  Golden Material Recycle & Utilize Co., Ltd; and

                · Shanghai
                  Yuan Hao Electronic Co., Ltd.

              
	
                2

              	
                · Shanghai
                  Ju Lang Industrial and Trading Co., Ltd.; and

                · Shanghai
                  Yuan Hao Electronic Co., Ltd.

              
	
                3

              	
                · Shaoxin
                  Hua Ting Mental Products Co., Ltd.

                · Shanghai
                  Yuan Hao Electronic Co., Ltd.

              
	
                4

              	
                · Shanghai
                  Lu Zou Environmental Engineering Co., Ltd.; and

                · Shanghai
                  Yuan Hao Electronic Co., Ltd.

              

      

      

      
        	
                2.

              	
                Schedule
                  of qualification certificates to be
                  supplied

              

      

      
        	
                No.

              	
                Company

              	
                Certificate
                  

              
	
                1

              	
                Shanghai
                  Golden Material Recycle & Utilize Co., Ltd.

              	
                Business
                  License

              
	
                2

              	
                Shanghai
                  Ju Lang Industrial and Trading Co., Ltd.

              	
                Business
                  Certificate for Dealing Hazardous Waste

              
	
                3

              	
                Shaoxin
                  Hua Ting Mental Products Co., Ltd.

              	
                Business
                  License

              
	
                4

              	
                Shanghai
                  Lu Zou Environmental Engineering Co., Ltd.

              	
                Business
                  License

              

      

       

      
        	
                Party
                  A: Shanghai Yuan Hao Electronic Co., Ltd

                 

                Authorized
                  Signature:

                 

                _______________________

                Dated:
                  

                At
                  the place of:

              	
                Party
                  B: Shanghai Kai Hong Technology Co., Ltd.

                 

                Authorized
                  Signature: 

                 

                _______________________

                Dated:
                  

                At
                  the place of:

              

      

       

      
        
          
          

        

        
          -6-

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