Document:

Unassociated Document

    

    EXECUTION
FORM

     
 

      
        

      

    

        

    AGREEMENT
AND PLAN OF REORGANIZATION

    

    by
and among

    

    GSME
ACQUISITION PARTNERS I

    (“GSME”)

    

    and

    

    GSME
ACQUISITION PARTNERS I SUB LIMITED

    (“GSME
Sub”)

    

    and

    

    PLASTEC
INTERNATIONAL HOLDINGS LIMITED

    (“Plastec”)

    

    and
each of

    

    SUN
YIP INDUSTRIAL COMPANY LIMITED (BVI)

    TIGER
POWER INDUSTRIES LIMITED (BVI)

    EXPERT
RANK LIMITED (BVI)

    FINE
COLOUR LIMITED (BVI)

    CATHAY
PLASTIC LIMITED (BVI)

    GREATEST
SINO HOLDINGS LIMITED (BVI)

    COLOURFUL
ASIA INTERNATIONAL LIMITED (BVI)

    TOP
UNIVERSE MANAGEMENT LIMITED (BVI)

    (each
a “Plastec Shareholder” and collectively the “Plastec
Shareholders”)

    

    Dated
August 6, 2010

    
    

    
      

    

        

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    TABLE
OF CONTENTS

    

    
      
        
          	 
      	 
      	
                  Page

                
	
                  ARTICLE
      I

                	 
      
	 
      	 
      	 
      
	
                  TERMS
      OF THE MERGER

                	
                  2

                
	
                  1.1

                	
                  The
      Merger

                	
                  2

                
	
                  1.2

                	
                  The
      Closing.

                	
                  2

                
	
                  1.3

                	
                  Exchange
      of Securities.

                	
                  3

                
	
                  1.4

                	
                  Tender
      and Payment.

                	
                  3

                
	
                  1.5

                	
                  Memorandum
      and Articles of Association

                	
                  4

                
	
                  1.6

                	
                  Directors
      and Officers

                	
                  4

                
	
                  1.7

                	
                  Certain
      Adjustments.

                	
                  4

                
	
                  1.8

                	
                  Earnout
      Shares.

                	
                  4

                
	
                  1.9

                	
                  Indemnity
      Escrow

                	
                  9

                
	
                  1.10

                	
                  GSME
      Committee

                	
                  9

                
	
                  1.11

                	
                  Plastec
      Shareholders’ Committee

                	
                  9

                
	
                  1.12

                	
                  Other
      Effects of the Merger

                	
                  9

                
	
                  1.13

                	
                  Additional
      Actions

                	
                  10

                
	 
      	 
      	 
      
	
                  ARTICLE
      II

                	 
      
	 
      	 
      	 
      
	
                  REPRESENTATIONS
      AND WARRANTIES OF PLASTEC

                	
                  10

                
	
                  2.1

                	
                  Organization
      and Qualification.

                	
                  10

                
	
                  2.2

                	
                  Subsidiaries.

                	
                  11

                
	
                  2.3

                	
                  Capitalization.

                	
                  12

                
	
                  2.4

                	
                  Authority
      Relative to this Agreement

                	
                  13

                
	
                  2.5

                	
                  No
      Conflict; Required Filings and Consents.

                	
                  13

                
	
                  2.6

                	
                  Compliance

                	
                  14

                
	
                  2.7

                	
                  Financial
      Statements.

                	
                  14

                
	
                  2.8

                	
                  No
      Undisclosed Liabilities

                	
                  14

                
	
                  2.9

                	
                  Absence
      of Certain Changes or Events

                	
                  15

                
	
                  2.10

                	
                  Litigation

                	
                  15

                
	
                  2.11

                	
                  Employee
      Benefit Plans.

                	
                  15

                
	
                  2.12

                	
                  Labor
      Matters

                	
                  16

                
	
                  2.13

                	
                  Restrictions
      on Business Activities

                	
                  16

                
	
                  2.14

                	
                  Title
      to Property.

                	
                  16

                
	
                  2.15

                	
                  Taxes.

                	
                  17

                
	
                  2.16

                	
                  Environmental
      Matters.

                	
                  18

                
	
                  2.17

                	
                  Brokers;
      Third Party Expenses

                	
                  18

                
	
                  2.18

                	
                  Intellectual
      Property

                	
                  18

                
	
                  2.19

                	
                  Agreements,
      Contracts and Commitments.

                	
                  20

                
	
                  2.20

                	
                  Insurance

                	
                  21

                
	
                  2.21

                	
                  Governmental
      Actions/Filings.

                	
                  22

                
	
                  2.22

                	
                  Interested
      Party Transactions

                	
                  22

                
	
                  2.23

                	
                  Plastec
      Shareholder Indebtedness

                	
                  23

                

        

      

    

     

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  2.24

                	
                  Board
      Approval

                	
                  23

                
	
                  2.25

                	
                  No
      Illegal or Improper Transactions

                	
                  23

                
	
                  2.26

                	
                  No
      United States Operations or Assets

                	
                  23

                
	
                  2.27

                	
                  Representations
      and Warranties Complete

                	
                  23

                
	
                  2.28

                	
                  Survival
      of Representations and Warranties

                	
                  23

                
	
                  2.29

                	
                  No
      Other Representations

                	
                  23

                
	 
      	 
      	 
      
	
                  ARTICLE
      III

                	 
      
	 
      	 
      	 
      
	
                  REPRESENTATIONS
      AND WARRANTIES OF THE PLASTEC SHAREHOLDERS

                	
                  24

                
	
                  3.1

                	
                  Authority
      Relative to this Agreement

                	
                  24

                
	
                  3.2

                	
                  Investor
      Representations

                	
                  24

                
	
                  3.3

                	
                  Consents

                	
                  25

                
	
                  3.4

                	
                  Liens

                	
                  25

                
	
                  3.5

                	
                  Representations
      and Warranties Complete

                	
                  25

                
	
                  3.6

                	
                  Survival
      of Representations and Warranties

                	
                  25

                
	
                  3.7

                	
                  No
      Other Representations

                	
                  25

                
	 
      	 
      	 
      
	
                  ARTICLE
      IV

                	 
      
	 
      	 
      	 
      
	
                  REPRESENTATIONS
      AND WARRANTIES OF GSME

                	
                  25

                
	
                  4.1

                	
                  Organization
      and Qualification.

                	
                  25

                
	
                  4.2

                	
                  Subsidiaries

                	
                  26

                
	
                  4.3

                	
                  Capitalization.

                	
                  26

                
	
                  4.4

                	
                  Authority
      Relative to this Agreement

                	
                  27

                
	
                  4.5

                	
                  No
      Conflict; Required Filings and Consents.

                	
                  28

                
	
                  4.6

                	
                  Compliance

                	
                  28

                
	
                  4.7

                	
                  SEC
      Filings; Financial Statements.

                	
                  28

                
	
                  4.8

                	
                  No
      Undisclosed Liabilities

                	
                  29

                
	
                  4.9

                	
                  Absence
      of Certain Changes or Events

                	
                  29

                
	
                  4.10

                	
                  Litigation

                	
                  30

                
	
                  4.11

                	
                  Employee
      Benefit Plans

                	
                  30

                
	
                  4.12

                	
                  Labor
      Matters

                	
                  30

                
	
                  4.13

                	
                  Restrictions
      on Business Activities

                	
                  30

                
	
                  4.14

                	
                  Title
      to Property

                	
                  31

                
	
                  4.15

                	
                  Taxes

                	
                  31

                
	
                  4.16

                	
                  Environmental
      Matters

                	
                  31

                
	
                  4.17

                	
                  Brokers

                	
                  32

                
	
                  4.18

                	
                  Intellectual
      Property

                	
                  32

                
	
                  4.19

                	
                  Agreements,
      Contracts and Commitments.

                	
                  32

                
	
                  4.20

                	
                  Insurance

                	
                  32

                
	
                  4.21

                	
                  Interested
      Party Transactions

                	
                  33

                
	
                  4.22

                	
                  Indebtedness

                	
                  33

                
	
                  4.23

                	
                  GSME
      Shares Listing

                	
                  33

                
	
                  4.24

                	
                  Board
      Approval

                	
                  33

                
	
                  4.25

                	
                  Trust
      Fund

                	
                  34

                

        

      

    

     

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

     

    
      
        
          	
                  4.26

                	
                  Governmental
      Actions/Filings

                	
                  34

                
	
                  4.27

                	
                  Investment
      Company Act

                	
                  34

                
	
                  4.28

                	
                  GSME
      Sub

                	
                  34

                
	
                  4.29

                	
                  Representations
      and Warranties Complete

                	
                  34

                
	
                  4.30

                	
                  Survival
      of Representations and Warranties

                	
                  34

                
	
                  4.31

                	
                  No
      Other Representations

                	
                  34

                
	 
      	 
      	 
      
	
                  ARTICLE
      V

                	 
      
	 
      	 
      	 
      
	
                  COVENANTS

                	
                  35

                
	
                  5.1

                	
                  Conduct
      of Business by Plastec, the Subsidiaries, GSME and GSME
Sub

                	
                  35

                
	
                  5.2

                	
                  No
      Transfer of Plastec Shares

                	
                  38

                
	
                  5.3

                	
                  Sale
      Restriction.

                	
                  39

                
	
                  5.4

                	
                  Transfer
      Restrictions

                	
                  40

                
	
                  5.5

                	
                  Legend

                	
                  40

                
	 
      	 
      	 
      
	
                  ARTICLE
      VI

                	 
      
	 
      	 
      	 
      
	
                  ADDITIONAL
      COVENANTS OF THE PARTIES

                	
                  41

                
	
                  6.1

                	
                  Proxy
      Statement; Special Meeting.

                	
                  41

                
	
                  6.2

                	
                  Public
      Disclosure

                	
                  42

                
	
                  6.3

                	
                  Other
      Actions.

                	
                  43

                
	
                  6.4

                	
                  Required
      Information

                	
                  43

                
	
                  6.5

                	
                  Confidentiality;
      Access to Information.

                	
                  43

                
	
                  6.6

                	
                  Commercially
      Reasonable Efforts

                	
                  44

                
	
                  6.7

                	
                  No
      Securities Transactions

                	
                  45

                
	
                  6.8

                	
                  No
      Claim Against Trust Fund

                	
                  45

                
	
                  6.9

                	
                  Disclosure
      of Certain Matters

                	
                  46

                
	
                  6.10

                	
                  Certain
      Claims

                	
                  46

                
	
                  6.11

                	
                  Certain
      Financial Information

                	
                  46

                
	
                  6.12

                	
                  Access
      to Financial Information

                	
                  46

                
	
                  6.13

                	
                  GSME
      Borrowings

                	
                  47

                
	
                  6.14

                	
                  Trust
      Fund Disbursement

                	
                  47

                
	
                  6.15

                	
                  Financial
      Advisory Agreements

                	
                  47

                
	
                  6.16

                	
                  Employment
      Agreements

                	
                  47

                
	
                  6.17

                	
                  Investor
      Relations Team

                	
                  47

                
	
                  6.18

                	
                  Certain
      Actions with Respect to GSME Securities

                	
                  47

                
	
                  6.19

                	
                  Securities
      Listing

                	
                  48

                
	
                  6.20

                	
                  Equity
      Incentive Plan

                	
                  48

                
	
                  6.21

                	
                  Charter
      Protections; Directors’ and Officers’ Liability Insurance.

                	
                  48

                
	
                  6.22

                	
                  Registration
      Rights Agreement

                	
                  49

                
	
                  6.23

                	
                  Tax
      Treatment

                	
                  49

                
	
                  6.24

                	
                  Continuing
      Business

                	
                  49

                
	
                  6.25

                	
                  Fiscal
      Year End

                	
                  50

                
	
                  6.26

                	
                  2010
      Audited Financial Statements

                	
                  50

                
	
                  6.27

                	
                  Termination
      of Shareholders Agreements

                	
                  50

                

        

      

    

     

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  ARTICLE
      VII

                	 
      
	 
      	 
      	 
      
	
                  CONDITIONS
      TO THE TRANSACTION

                	
                  50

                
	
                  7.1

                	
                  Conditions
      to Obligations of Each Party

                	
                  50

                
	
                  7.2

                	
                  Additional
      Conditions to Obligations of Plastec and the Plastec
      Shareholders

                	
                  50

                
	
                  7.3

                	
                  Additional
      Conditions to the Obligations of GSME and GSME Sub

                	
                  53

                
	 
      	 
      	 
      
	
                  ARTICLE
      VIII

                	 
      
	 
      	 
      	 
      
	
                  INDEMNIFICATION

                	
                  55

                
	
                  8.1

                	
                  Indemnification
      of GSME and the Plastec Shareholders

                	
                  55

                
	
                  8.2

                	
                  Indemnification
      of Third Party Claims

                	
                  56

                
	
                  8.3

                	
                  Insurance
      Effect

                	
                  58

                
	
                  8.4

                	
                  Limitations
      on Indemnification.

                	
                  59

                
	
                  8.5

                	
                  Adjustment
      to Purchase Consideration

                	
                  60

                
	
                  8.6

                	
                  Representative
      Capacities

                	
                  60

                
	
                  8.7

                	
                  Indemnification
      of Plastec Shareholder Indemnitee

                	
                  60

                
	 
      	 
      	 
      
	
                  ARTICLE
      IX

                	 
      
	 
      	 
      	 
      
	
                  TERMINATION

                	
                  60

                
	
                  9.1

                	
                  Termination

                	
                  60

                
	
                  9.2

                	
                  Notice
      of Termination; Effect of Termination

                	
                  62

                
	
                  9.3

                	
                  Fees
      and Expenses

                	
                  62

                
	 
      	 
      	 
      
	
                  ARTICLE
      X

                	 
      
	 
      	 
      	 
      
	
                  DEFINED
      TERMS

                	
                  62

                
	 
      	 
      	 
      
	
                  ARTICLE
      XI

                	 
      
	 
      	 
      	 
      
	
                  GENERAL
      PROVISIONS

                	
                  65

                
	
                  11.1

                	
                  Notices

                	
                  65

                
	
                  11.2

                	
                  Interpretation

                	
                  70

                
	
                  11.3

                	
                  Further
      Assurances; Post-Closing Cooperation

                	
                  72

                
	
                  11.4

                	
                  Counterparts;
      Facsimile Signatures

                	
                  72

                
	
                  11.5

                	
                  Entire
      Agreement; Third Party Beneficiaries

                	
                  72

                
	
                  11.6

                	
                  Severability

                	
                  72

                
	
                  11.7

                	
                  Other
      Remedies; Specific Performance

                	
                  73

                
	
                  11.8

                	
                  Governing
      Law

                	
                  73

                
	
                  11.9

                	
                  Rules
      of Construction

                	
                  73

                
	
                  11.10

                	
                  Assignment

                	
                  73

                
	
                  11.11

                	
                  Amendment

                	
                  73

                
	
                  11.12

                	
                  Extension;
      Waiver

                	
                  73

                
	
                  11.13

                	
                  Arbitration

                	
                  74

                
	
                  11.14

                	
                  Currency

                	
                  74

                

        

      

    

     

    
      
         

      

      
        iv

        
          

        

      

      
         

      

    

    

    AGREEMENT AND PLAN OF
REORGANIZATION

    

    This AGREEMENT AND PLAN OF
REORGANIZATION (this “Agreement”) dated
August 6, 2010, is made and entered into by GSME ACQUISITION PARTNERS I, a
Cayman Islands exempted company (“GSME”), GSME
ACQUISITION PARTNERS I SUB LIMITED, a British Virgin Islands company and wholly
owned subsidiary of GSME (“GSME Sub”), PLASTEC
INTERNATIONAL HOLDINGS LIMITED, a British Virgin Islands company (“Plastec”), and each
of SUN YIP INDUSTRIAL COMPANY LIMITED (BVI) (“Sun Yip”), TIGER
POWER INDUSTRIES LIMITED (BVI) (“Tiger”), EXPERT RANK
LIMITED (BVI) (“Expert”), FINE COLOUR
LIMITED (BVI) (“Fine
Colour” and together with Sun Yip, Tiger and Expert, collectively the
“Insiders”),
CATHAY PLASTIC LIMITED (BVI) (“Cathay”), GREATEST
SINO HOLDINGS LIMITED (BVI) (“Greatest”), COLOURFUL
ASIA INTERNATIONAL LIMITED (BVI) (“Colourful”) and TOP
UNIVERSE MANAGEMENT LIMITED (BVI) (“Top” and together
with Greatest and Colourful, collectively the “Investors”).  The
Insiders, Cathay and the Investors are collectively referred to herein as the
“Plastec
Shareholders.”  GSME, GSME Sub, Plastec and each of the Plastec
Shareholders are sometimes referred to herein individually as a “Party” and
collectively as the “Parties.” Capitalized
terms used herein but not otherwise defined shall have the meanings ascribed to
them in Section 11.2 hereof.

     

    RECITALS:

     

    WHEREAS,
GSME is a special purpose acquisition company formed to effect a business
combination with an operating entity;

     

    WHEREAS,
each of the Parties intends to effect the merger of GSME Sub with and into
Plastec (the “Merger”), with
Plastec continuing as the surviving company following the Merger, as a result of
which all of the issued and outstanding Plastec Shares (as defined in Section
2.3(a)) will automatically be exchanged into the right of the Plastec
Shareholders to receive the Merger Consideration (as defined in Section 1.3(a))
upon the terms and subject to the conditions set forth in this Agreement and in
accordance with the British Virgin Islands Business Companies Act, 2004 (the
“BVI Act”), as
amended;

     

    WHEREAS,
as a result of the Merger, on the Closing Date (as defined in Section 1.2(a))
(i) GSME Sub will be merged with and into Plastec and (ii) subject to the
conditions set forth in this Agreement, the Plastec Shareholders will receive up
to 16,948,053 ordinary shares, par value $0.001 per share, of GSME (“GSME Shares”), valued
at $10.00 per share and based on 15.0x Plastec’s Net Income as set forth in the
Draft Financial Statements (as defined in Section 2.7(a));

     

    WHEREAS,
the Board of Directors of Plastec has approved this Agreement and the Merger and
has determined that this Agreement, the Merger and the other transactions
contemplated hereby are advisable and in the best interests of
Plastec;

     

    WHEREAS,
the Board of Directors of each of GSME and GSME Sub has approved this Agreement
and the Merger and has determined that this Agreement, the Merger and the other
transactions contemplated hereby are advisable and in the respective best
interests of GSME and GSME Sub as applicable; and

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    WHEREAS,
in accordance with GSME’s articles of association the Board of Directors of GSME
has resolved to recommend that its shareholders approve and adopt the Merger and
the other transactions contemplated by this Agreement.

     

    NOW,
THEREFORE, in consideration of the agreements and obligations set
forth  herein, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged by the Parties, and
intending to be legally bound hereby, the Parties hereby agree as
follows:

     

    ARTICLE
I

     

    TERMS OF THE
MERGER

     

    1.1           The
Merger.  Upon the terms and subject to the conditions of this
Agreement and in accordance with the BVI Act, at the Effective Time (as defined
in Section 1.2(b)), GSME Sub shall be merged with and into Plastec. Upon
consummation of the Merger, the separate existence of GSME Sub shall thereupon
cease, and Plastec, as the surviving company in the Merger (“Merged Plastec”),
shall continue its corporate existence under the laws of the British Virgin
Islands as a wholly-owned subsidiary of GSME.

     

    1.2           The
Closing.

     

     (a)           Unless
this Agreement shall have been terminated and the transactions contemplated
hereby shall have been abandoned pursuant to Section 9.1, and subject to the
satisfaction or waiver of the conditions set forth in Article VII hereof, the
closing of the Merger (the “Closing”) shall take
place at the offices of Graubard Miller, The Chrysler Building, 405 Lexington
Avenue, 19th Floor, New York, New York 10174-1901 at 10:00 a.m., local time, on
the fourth (4th)
Business Day after the date on which the last of the conditions to Closing set
forth in Article VII is fulfilled, or at such other time, date or place as the
Parties may agree upon in writing.  The date on which the Closing
takes place is referred to herein as the “Closing
Date.”

     

     (b)           Subject
to the terms and conditions hereof, concurrently with the Closing, GSME, GSME
Sub and Plastec shall file with the Registrar of Corporate Affairs of the
British Virgin Islands (the “Registrar”) a plan of
merger and articles of merger in a customary form acceptable to GSME, Plastec
and the Registrar, which shall implement the terms of this Agreement
(collectively the “Articles of Merger”),
executed in accordance with the relevant provisions of the BVI Act, and shall
make all other filings or recordings required under the BVI Act in order to
effect the Merger. The Merger shall become effective upon the approval by the
Registrar of the filing of the Articles of Merger or at such other time as is
agreed by the Parties hereto in the Articles of Merger, in accordance with the
BVI Act and as specified in the Articles of Merger. The time when the Merger
shall become effective is herein referred to as the “Effective
Time.”

     

     (c)           From
and after the Effective Time, Merged Plastec shall possess all properties,
rights, privileges, powers and franchises of Plastec and GSME Sub, and all of
the claims, obligations, liabilities, debts and duties of Plastec and GSME Sub
shall become the claims, obligations, liabilities, debts and duties of Merged
Plastec.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    1.3           Exchange of Securities.

     

    (a)           At
the Effective Time, by virtue of the Merger and without any action on the part
of GSME or GSME Sub, all of the Plastec Shares issued and outstanding
immediately prior to the Effective Time shall automatically be converted into
the right to receive an aggregate of up to 16,948,053 GSME Shares (subject to
adjustment pursuant to Section 1.7) (the “Merger
Consideration”), which shall be issued and. distributed to the Plastec
Shareholders as follows:

     

    (i)           An
aggregate of 7,344,156 GSME Shares shall be issued to the Plastec Shareholders
on the Closing Date of which (I) an aggregate of 4,252,413 GSME Shares shall be
issued to the Insiders with Expert receiving 103,876 GSME Shares, Sun Yip
receiving 3,352,989 GSME Shares, Fine Colour receiving 213,744 GSME Shares and
Tiger receiving 581,804 GSME Shares, (II) 2,350,130 GSME Shares shall be issued
to Cathay and (III) an aggregate of 741,613 GSME Shares shall be issued to the
Investors, with Top receiving 399,522 GSME Shares, Greatest receiving 75,910
GSME Shares and Colourful receiving 266,181 GSME Shares; and

     

    (ii)           Up
to an additional 9,603,897 GSME Shares (“Earnout Shares”)
shall be issued as provided in Section 1.8 below.

     

    (b)           At
the Effective Time, all issued and outstanding shares, par value $0.001, of GSME
Sub shall be exchanged into a single issued and outstanding share of Merged
Plastec, and such share of Merged Plastec shall constitute the only outstanding
common share or common share equivalent of Merged Plastec following the
Effective Time. From and after the Effective Time, any certificate representing
the shares of GSME Sub shall be deemed for all purposes to represent the common
share of Merged Plastec into which such shares of GSME Sub represented thereby
were exchanged in accordance with the immediately preceding
sentence.

     

    (c)           At
the Effective Time, all of the Plastec Shares other than the one (1) share
issued pursuant to Section 1.3(b), shall, by virtue of the Merger and without
any action on the part of Plastec, be automatically cancelled and shall cease to
exist, and the Plastec Shareholders shall cease to have any rights with respect
thereto, except the right to receive the Merger Consideration and the other
rights and benefits under this Agreement and the ancillary documents
hereto.

     

    1.4           Tender and
Payment.

     

    (a)           Surrender of
Certificates.  At the Closing, the Plastec Shareholders and
Plastec shall deliver to GSME the certificates for all of the issued and
outstanding Plastec Shares owned by the Plastec Shareholders.

     

    (b)           Transfer Books; No Further
Ownership Rights in the GSME Sub Shares.  At the Effective
Time, the transfer books of GSME Sub shall be closed, and thereafter there shall
be no further registration of transfers of GSME Sub shares on the records of
GSME Sub. From and after the Effective Time, the GSME Sub shares outstanding
immediately prior to the Effective Time shall be cancelled and it shall cease to
have any rights, except as otherwise provided for herein or by applicable
law.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    1.5           Memorandum and Articles of
Association.  At and after the Effective Time and by virtue of
the Merger, and until the same have been duly amended, the memorandum and
articles of association of Plastec, as in effect immediately prior to the
Effective Time, shall be the memorandum and articles of association of Merged
Plastec.

     

    1.6           Directors and
Officers.  The Parties shall take all necessary actions so that
the persons listed in Schedule 1.6 are
elected or appointed to the positions of officers and/or directors of GSME
and/or Merged Plastec as set forth in Schedule 1.6, and the
size of the Board of Directors of GSME shall be set at seven (7) persons, in
each case, effective on or immediately after the Effective Time; provided, however, that,
subsequent to the Effective Time, the Boards of Directors of GSME and Merged
Plastec shall have the right to remove and replace officers (including those
that appear in Schedule 1.6) of GSME
and Merged Plastec at their respective discretion in accordance with their
respective Charter Documents (as defined in Section 2.1(a)), subject to the
provisions of the Employment Agreements (as defined in Section
6.16).

     

    1.7           Certain
Adjustments.

     

    (a)           The
number of GSME Shares that the Plastec Shareholders are entitled to receive as
Merger Consideration pursuant to this Agreement is derived from Plastec’s Net
Income for Fiscal Year 2010 set forth in the Draft Financial
Statements.  If Plastec’s Net Income for Fiscal Year 2010 set forth in
the 2010 Audited Financial Statements (as defined in Section 6.1) (“2010 Actual Net
Income”) is less than ninety-seven percent (97%) of Plastec’s Net Income
set forth in the Draft Financial Statements, and subject to Cathay’s right to
terminate this Agreement pursuant to Section 9.1(g), (i) the number of GSME
Shares that will constitute the Merger Consideration shall be adjusted downward
so that the aggregate value thereof, at an assumed value of $10.00 per share,
equals the 2010 Actual Net Income multiplied by 15.0, rounded to the nearest
whole share, and (ii) the number of GSME Shares to be delivered to the Plastec
Shareholders set forth in Sections 1.3(a)(i) and (ii), and each reference to the
Earnout Shares or portions thereof set forth in Section 1.8 or elsewhere in this
Agreement, shall be similarly proportionally adjusted downward.

     

    (b)           If,
between the date of this Agreement and the Effective Time, the outstanding GSME
Shares are changed into a different number of shares or different class by
reason of any reclassification, recapitalization, stock split, split-up,
combination or exchange of shares or a stock dividend, extraordinary cash
dividend, or dividend payable in any other securities occurs or is declared with
a record date within such period, or any similar event occurs, the Merger
Consideration to be delivered to the Plastec Shareholders on the Closing Date
shall be appropriately adjusted to provide the Plastec Shareholders with the
same economic effect as contemplated by this Agreement prior to such
event.

     

    1.8           Earnout
Shares.

     

    (a)           In
accordance with Section 1.3(a)(ii) and subject to Section 1.7, if Merged Plastec
meets all of the Net Income Targets (as defined in Section 11.2(l)), an
aggregate of up to 9,603,897 Earnout Shares shall be issued to the Plastec
Shareholders, of which 7,677,434 Earnout Shares will be issued to the Insiders,
587,532 Earnout Shares will be issued to Cathay and 1,338,931 Earnout Shares
will be issued to the Investors, as follows:

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (i)           Subject
to Sections 1.8(b) and 1.8(c) below, an aggregate of 2,824,675 Earnout Shares
shall be issued to the Plastec Shareholders if Merged Plastec’s 2011 Net Income
equals or exceeds one hundred thirty million seven hundred thousand Hong Kong
dollars (HK$130,700,000) (the “2011 Net Income
Target”), of which (I) an aggregate of 1,904,927 Earnout Shares will be
issued to the Insiders with Expert receiving 46,532 Earnout Shares, Sun Yip
receiving 1,502,018 Earnout Shares, Fine Colour receiving 95,750 Earnout Shares
and Tiger receiving 260,627 Earnout Shares, (II) 587,532 Earnout Shares will be
issued to Cathay and (III) an aggregate of 332,216 Earnout Shares will be issued
to the Investors with Top receiving 178,971 Earnout Shares, Greatest receiving
34,005 Earnout Shares and Colourful receiving 119,240 Earnout Shares
(collectively, the “2011 Earnout
Shares”);

     

    (ii)           Subject
to Sections 1.8(b) and 1.8(c) below, an aggregate of 3,389,610 Earnout Shares
shall be issued to the Plastec Shareholders if Merged Plastec’s 2012 Net Income
equals or exceeds one hundred seventy six million Hong Kong dollars
(HK$176,000,000) (the “2012 Net Income
Target”), of which (I) an aggregate of 2,886,253 Earnout Shares will be
issued to the Insiders with Expert receiving 70,504 Earnout Shares, Sun Yip
receiving 2,275,784 Earnout Shares, Fine Colour receiving 145,075 Earnout Shares
and Tiger receiving 394,890 Earnout Shares and (II) an aggregate of 503,357
Earnout Shares will be issued to the Investors with Top receiving 271,169
Earnout Shares, Greatest receiving 51,522 Earnout Shares and Colourful receiving
180,666 Earnout Shares (collectively, the “2012 Earnout
Shares”); and

     

    (iii)           Subject
to Sections 1.8(b) and 1.8(c) below, an aggregate of 3,389,612 Earnout Shares
shall be issued to the Plastec Shareholders if Merged Plastec’s 2013 Net Income
equals or exceeds two hundred fifty million Hong Kong dollars (HK$250,000,000)
(the “2013 Net Income
Target”), of which (I) an aggregate of 2,886,254 Earnout Shares will be
issued to the Insiders with Expert receiving 70,504 Earnout Shares, Sun Yip
receiving 2,275,785 Earnout Shares, Fine Colour receiving 145,075 Earnout Shares
and Tiger receiving 394,890 Earnout Shares and (II) an aggregate of 503,358
Earnout Shares will be issued to the Investors with Top receiving 271,169
Earnout Shares, Greatest receiving 51,522 Earnout Shares and Colourful receiving
180,667 Earnout Shares (collectively, the “2013 Earnout
Shares”).

     

    (iv)           If
the Net Income of Merged Plastec equals or exceeds: (I) the amount of the 2012
Net Income Target for Fiscal Year 2011, the 2011 Earnout Shares and 2012 Earnout
Shares shall be issued together on the date in which the 2011 Earnout Shares are
scheduled to be issued pursuant to Section 1.8(e); (II) the amount of the 2013
Net Income Target for Fiscal Year 2011, the 2011 Earnout Shares, 2012 Earnout
Shares and 2013 Earnout Shares shall be issued together on the date in which the
2011 Earnout Shares are scheduled to be issued pursuant to Section 1.8(e); or
(III) the 2013 Net Income Target for Fiscal Year 2012, to the extent that such
Earnout Shares have not already been issued to the Plastec Shareholders, the
2012 Earnout Shares and 2013 Earnout Shares (including, if applicable, Earnout
Shares that have been deferred to a subsequent Fiscal Year pursuant to Sections
1.8(b) and 1.8(c)) shall be issued together on the date in which the 2012
Earnout Shares are scheduled to be issued pursuant to Section
1.8(e).

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (v)           If
the Net Income of Merged Plastec equals or exceeds: (I) the 2011 Net Income
Target for Fiscal Year 2011 and the amount of 2011 Net Income is at least
eighty
percent (80%) of the 2012 Net Income Target but does not equal or exceed the
2012 Net Income Target, in addition to the issuance of the 2011 Earnout Shares,
a pro-rata portion (as determined by the pro-rating mechanism appearing in
Section 1.8(d) (the “Pro-rating
Mechanism”)) of the 2012 Earnout Shares shall be issued on the date in
which the 2011 Earnout Shares are scheduled to be issued pursuant to Section
1.8(e); (II) the amount of the 2012 Net Income Target for Fiscal Year 2011 and
the amount of 2011 Net Income is at least seventy percent (70%) of the 2013 Net
Income Target but does not equal or exceed the 2013 Net Income Target, in
addition to the Escrow Shares to be issued pursuant to Section 1.8(iv)(I) above,
a pro-rata portion (as determined by the Pro-rating Mechanism) of the 2013
Earnout Shares shall be issued on the date in which the 2011 Earnout Shares are
scheduled to be issued pursuant to Section 1.8(e); or (III) the 2012 Net Income
Target for Fiscal Year 2012 and the amount of 2012 Net Income is at least
seventy percent (70%) of the 2013 Net Income Target but does not equal or exceed
the 2013 Net Income Target, in addition to the issuance of any unearned 2011
Earnout Shares and any unearned 2012 Earnout Shares, a pro-rata portion (as
determined by the Pro-rating Mechanism) of the 2013 Escrow Shares shall be
issued on the date in which the 2012 Earnout Shares are scheduled to be issued
pursuant to Section 1.8(e). In each case, any Earnout Shares that are not issued
pursuant to the terms of this Section 1.8(a)(v) shall be (x) earned by the
Plastec Shareholders in the Fiscal Year in which such Earnout Shares were
originally allocated, subject to possible acceleration as set forth in this
Section 1.8(a)(v), or (y) deferred in accordance with Section 1.8(b) mutatis
mutandis.

     

    (b)           If
the Net Income of Merged Plastec (x) fails to achieve the 2011 Net Income Target
for Fiscal Year 2011 or the 2012 Net Income Target for Fiscal Year 2012, but is
at least eighty percent (80%) of the 2011 Net Income Target or the 2012 Net
Income Target, as applicable, for the relevant Fiscal Year, or (y) fails to
achieve the 2013 Net Income Target for Fiscal Year 2013 but is at least seventy
percent (70%) of the 2013 Net Income Target for Fiscal Year 2013, the Plastec
Shareholders shall be entitled to be issued a pro rata amount (as determined by
the Pro-rating Mechanism) of the Earnout Shares initially allocated for the
Fiscal Year in question.  The Earnout Shares initially allocated for
the Fiscal Year in question that were not issued pursuant to the Pro-rating
Mechanism shall be deferred and added to the amount of Earnout Shares that may
be earned at the conclusion of the immediately succeeding Fiscal
Year  to be earned in full by the Plastec Shareholders if Merged
Plastec achieves the applicable Net Income Target in such immediately succeeding
Fiscal Year or in part as determined by the application of the Pro-rating
Mechanism if Merged Plastec comes within the relevant percentage of the
applicable Net Income Target as set forth above; provided, however, that if (x)
the Pro-rating Mechanism is triggered pursuant to the terms of this Section
1.8(b) in Fiscal Year 2011 and Fiscal Year 2012 or (y) the 2011 Net Income of
Merged Plastec is less than eighty percent (80%) of the 2011 Net Income Target,
but the Pro-rating Mechanism is triggered pursuant to the terms of this Section
1.8(b) in Fiscal Year 2012, the Pro-rating Mechanism as applied to the 2012 Net
Income Target shall treat the deferred 2011 Earnout Shares in the same manner as
the 2012 Earnout Shares; and provided further that if, as a
result of the Pro-rating Mechanism, there are 2011 Earnout Shares and/or 2012
Earnout Shares that have not been earned, the Pro-rating Mechanism as applied to
the 2013 Net Income Target shall treat the deferred 2011 Earnout Shares and the
deferred 2012 Earnout Shares in the same manner as the 2013 Earnout
Shares.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (c)           If
the 2011 Net Income of Merged Plastec is less than eighty percent (80%) of the
2011 Net Income Target, all of the 2011 Earnout Shares will be deferred to
Fiscal Year 2012
and added to the amount of 2012 Earnout Shares and, subject to the remainder of
this paragraph, will be earned in full if Merged Plastec achieves the 2012 Net
Income Target for Fiscal Year 2012 or earned in part as determined by the
Pro-rating Mechanism (if triggered in accordance with this Section
1.8).  If the 2012 Net Income of Merged Plastec is less than eighty
percent (80%) of the 2012 Net Income Target, all of the 2012 Earnout Shares will
be deferred to Fiscal Year 2013 and added to the amount of 2013 Earnout Shares
and will be earned in full if Merged Plastec achieves the 2013 Net Income Target
for Fiscal Year 2013 or earned in part as determined by the Pro-rating Mechanism
(if triggered in accordance with this Section 1.8); provided, however, that if the
Net Income of Merged Plastec is less than eighty percent (80%) of both the (x)
the 2011 Net Income Target and (y) the 2012 Net Income Target in the relevant
Fiscal Years, then all of the 2011 Earnout Shares and the 2012 Earnout Shares
shall be deferred and added to the amount of 2013 Earnout Shares, with all such
Earnout Shares being earned in full if Merged Plastec achieves the 2013 Net
Income Target or earned in part as determined by the Pro-rating Mechanism (if
triggered in accordance with this Section 1.8).  At the conclusion of
Fiscal Year 2013, the Plastec Shareholders shall be entitled to be issued the
Earnout Shares that are earned pursuant to this Section 1.8, if any, based upon
Merged Plastec’s Fiscal Year 2013 Net Income, and no further Earnout Shares
shall be issued to the Plastec Shareholders.

     

    (d)           The
Pro-rating Mechanism, as applied to each Plastec Shareholder individually, will
be calculated as follows:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                	
                                                        As
      applied to a failure to meet the 2011 Net Income Target in Fiscal Year
      2011

                                                          
      

                                                      
	
                                                        (2011 Net Income – 2010 Actual Net
      Income)

                                                               (2011
      Net Income Target – 2010 Actual Net Income)

                                                         

                                                        [For
      purposes of this calculation, the amount of the 2010 Actual Net Income
      shall not exceed the amount of Plastec’s Net Income set forth in the Draft
      Financial Statements]

                                                      	
                                                        *

                                                      	
                                                        (such
      Plastec Shareholder’s share of the 2011 Earnout
  Shares)

                                                      

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                As applied to (x)
      a failure to meet the 2012 Net Income Target in Fiscal Year 2012
      or
      (y) accelerated receipt of a portion of the 2012 Earnout
      Shares

                                  
      

                              
	
                                (2012 Net Income – 2011 Net Income
      Target)

                                HK$45,300,000

                              	
                                *

                              	
                                (such
      Plastec Shareholder’s share of all 2011 Earnout Shares plus 2012 Earnout
      Shares not earned by such Plastec Shareholder in Fiscal Year
      2011)

                              

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      
        
          	
                  As
      applied to (x)
      a failure to meet the 2013 Net Income Target in Fiscal Year 2013 or
      (y) accelerated receipt of a portion of the 2013 Earnout
      Shares

                     

                
	
                  (2013 Net Income – 2012 Net Income
      Target)

                  HK$74,000,000

                	
                  *

                	
                  (such
      Plastec Shareholder’s share of Earnout Shares for all Fiscal Years minus
      those Earnout Shares actually earned by such Plastec Shareholder in Fiscal
      Year 2011 and Fiscal Year
2012)

                

        

      

    

    

    Solely
for purposes of illustration, an example of the foregoing is set forth in Schedule
1.8.

    

    (e)           Within
thirty (30) days after delivery of the audit report on Merged Plastec’s
financial statements for the Fiscal Years ending April 30 of 2011, 2012 and
2013, Merged Plastec shall deliver to the GSME Committee (as defined in Section
1.10) and the Shareholders’ Committee (as defined in Section 1.11) a notice
(each a “Notice”) setting
forth (i) Merged Plastec’s Net Income for such Fiscal Year, (ii) the number of
Earnout Shares that shall be issued pursuant to the terms of Section 1.8(a)
through (d) as a result of Merged Plastec’s Net Income in such Fiscal Year and
(iii) the allocation thereof to each Plastec Shareholder pursuant to the terms
of Section 1.8(a), (b) and (d).  Unless the GSME Committee or the
Shareholders’ Committee disagrees with the Notice, each shall counter-sign such
Notice and deliver it to GSME, which shall take all necessary actions so that
any Earnout Shares that have been earned by the Plastec Shareholders are
immediately issued.  If either the GSME Committee or the Shareholders’
Committee disagrees with the Notice, the Parties shall attempt to resolve such
dispute by voluntary settlement.  If a voluntary settlement is reached
within thirty (30) days after the date on which the GSME Committee and the
Shareholders’ Committee have received the Notice, the GSME Committee, the
Shareholders’ Committee and Merged Plastec shall execute a revised Notice with
the agreed upon figures and GSME shall take all necessary actions so that any
Earnout Shares that have been earned by the Plastec Shareholders are immediately
issued.  If the GSME Committee and the Shareholders’ Committee cannot
resolve a dispute prior to the expiration of thirty (30) days after receipt of
the Notice, then the dispute shall be submitted (at the direction of either the
GSME Committee, the Shareholders’ Committee or both) for arbitration as provided
for in Section 11.13 hereof.  The arbitrator shall render a decision
within ninety (90) days of being appointed and such decision and award (“Decision”) shall be
in writing (with copies delivered to Merged Plastec, the GSME Committee and the
Shareholders’ Committee) and shall be final and conclusive on GSME, the GSME
Committee and the Shareholders’ Committee and, promptly after receiving a copy
of the Decision, GSME shall take all necessary actions so that any Earnout
Shares that have been earned by the Plastec Shareholders are immediately
issued.  Each approved and executed Notice or Decision shall be
referred to as a “Final
Notice.”  All fees and costs of such arbitrator shall be borne
by GSME.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (f)           The
number of Earnout Shares issuable to the Plastec Shareholders pursuant to this
Section 1.8 shall be proportionately increased or decreased, or subject to such
other adjustment, in the event of any reclassification, recapitalization, stock
split, split-up, combination or exchange of shares or a stock dividend,
extraordinary cash dividend or dividend payable in any other securities is
declared prior to such Earnout Shares being issued, as may be necessary or
appropriate so that the Earnout Shares or other consideration issued to the
Plastec Shareholders with respect to achieving any Net Income Target shall
provide the Plastec Shareholders with the same economic and other benefits of
ownership as the Plastec Shareholders would have received if the number of
Earnout Shares issued with respect to achieving such Net Income Target had been
issued to the Plastec Shareholders at Closing.

     

    1.9           Indemnity
Escrow.  To provide a contingent fund for the payment of
amounts, if any, due to GSME pursuant to the indemnity obligations of the
Insiders and the Investors set forth in Article VIII, at the Closing, ten
percent (10%) of the GSME Shares (“Indemnity Escrow
Shares”) to be issued and delivered to the Insiders and the Investors
pursuant to Section 1.3(a)(i) at the Closing (the “Escrow Fund”) shall
be deposited into escrow, to be held for the period ending on the thirtieth
(30th) day
after the date GSME has filed with the SEC its Annual Report on Form 20-F for
the Fiscal Year ending April 30, 2011 (the “Escrow Period”), all
in accordance with the terms and conditions of the Escrow Agreement in the form
of Exhibit B to
be entered into among GSME, the Insiders, the Investors and Continental Stock
Transfer & Trust Company (“Continental”), as
Escrow Agent (the “Indemnity Escrow
Agreement”).

     

    1.10         GSME
Committee.  A committee (the “GSME Committee”),
consisting of Jing Dong Gao and Eli D. Scher, shall represent the interests of,
and act on behalf of, GSME and the other GSME Indemnitees (as defined in Section
8.1(a)) for the purposes of the Indemnity Escrow Agreement and the sale
restrictions described in Section 5.3 and making those determinations hereunder
and thereunder that are specifically reserved to the GSME Committee by the terms
hereof.  If either Jing Dong Gao or Eli D. Scher ceases to serve as a
member of the GSME Committee for any reason, the other member of the GSME
Committee shall designate a successor.  All decisions of the GSME
Committee shall be made by unanimous vote or consent of its
members.

     

    1.11         Plastec Shareholders’
Committee.  The Plastec Shareholders hereby designate Kin Sun
Sze-To and J. David Selvia to represent the interests of the Plastec
Shareholders in approving, challenging or effecting any Notice in accordance
with Section 1.8(e) (the “Shareholders’
Committee”). If Kin Sun Sze-To ceases to serve in such capacity, Sun Yip
shall designate a successor.  If J. David Selvia ceases to serve in
such capacity, Cathay shall designate a successor.  The Plastec
Shareholders that are parties to the Indemnity Escrow Agreement hereby designate
Kin Sun Sze-To and Ho Leung Ning to represent the interests of the Plastec
Shareholders that are parties to the Indemnity Escrow Agreement for purposes of
the Indemnity Escrow Agreement (such designee and any successor collectively
referred to as the “Representative”).  If
either Kin Sun Sze-To or Ho Leung Ning ceases to serve as the Representative,
Sun Yip shall designate a successor.

     

    1.12         Other Effects of the
Merger.  The Merger shall have all further effects as specified
in the applicable provisions of the BVI Act.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    1.13         Additional
Actions.  If, at any time after the Effective Time, Merged
Plastec, the Plastec Shareholders or GSME, as applicable, shall consider or be
advised that any deeds, bills of sale, assignments, transfers, assurances or any
other actions or things are necessary or desirable to vest, perfect or confirm,
of record or otherwise, in Merged Plastec or GSME its right, title or interest
in, to or under any of the rights, properties or assets of GSME or Plastec or
otherwise carry out this Agreement, the officers and directors of Merged
Plastec, Plastec, GSME or any of the Plastec Shareholders, as applicable, shall
be authorized to execute and deliver, in the name and on behalf of GSME,
Plastec, GSME Sub, or any of the Plastec Shareholders, as applicable, all such
deeds, bills of sale, assignments, transfers and assurances and to take and do,
in the name and on behalf of GSME, Plastec, GSME Sub or any of the Plastec
Shareholders, all such other actions and things as may be necessary or desirable
to vest, perfect or confirm any and all right, title and interest in, to and
under such rights, properties or assets in Merged Plastec or otherwise to carry
out this Agreement.

     

    ARTICLE
II

    
    

     REPRESENTATIONS AND
WARRANTIES OF PLASTEC

     

    Subject
to the exceptions set forth in Schedule 2 (the “Plastec Schedule”),
Plastec hereby represents and warrants to, and covenants with, GSME as of the
date hereof and as of the Closing as follows (as used in this Article II, and
elsewhere in this Agreement, the term “Plastec” includes the Subsidiaries (as
defined in Section 2.2(a)) unless the context otherwise indicates):

     

    2.1           Organization and
Qualification.

     

    (a)           Plastec
is a company limited by shares, duly incorporated, validly existing and in good
standing under the laws of the British Virgin Islands and has the requisite
corporate power and authority to own, lease and operate its assets and
properties and to carry on its business as it is now being or currently planned
by Plastec to be conducted.   Plastec is in possession of all
franchises, grants, authorizations, licenses, permits, easements, consents,
certificates, approvals and orders (“Approvals”) necessary
to own, lease and operate the properties it purports to own, operate or lease
and to carry on its business as it is now being or currently planned by Plastec
to be conducted, except where the failure to have such Approvals would not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect on Plastec.  Complete and correct copies of the
memorandum and articles of association (or other comparable governing
instruments with different names) (collectively referred to herein as “Charter Documents”)
of Plastec, as amended and currently in effect, have been heretofore delivered
to GSME or GSME’s counsel.  Plastec is not in violation of any of the
provisions of its Charter Documents.

     

    (b)           Plastec
is duly qualified or licensed to do business as a foreign corporation and is in
good standing in each jurisdiction where the character of the properties owned,
leased or operated by it or the nature of its activities makes such
qualification or licensing necessary, except for such failures to be so duly
qualified or licensed and in good standing that would not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect on
Plastec.  Each jurisdiction in which Plastec is so qualified or
licensed is listed in Schedule
2.1.

    (c)           The
minute books of Plastec contain true, complete and accurate records of all
meetings and consents in lieu of meetings of its Board of Directors (and any
committees thereof), similar governing bodies and shareholders (“Corporate Records”)
since the date of Plastec’s inception.  Copies of such Corporate
Records of Plastec have been heretofore delivered to GSME or GSME’s
counsel.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (d)           The
share transfer, warrant and option transfer and ownership records of Plastec
contain true, complete and accurate records of the securities ownership as of
the date of such records and the transfers involving the shares and other
securities of Plastec since the time of Plastec’s
organization.  Copies of such records of Plastec have been heretofore
delivered to GSME or GSME’s counsel.

     

    2.2           Subsidiaries.

     

    (a)           Plastec
has no direct or indirect subsidiaries or participations in joint ventures other
than those listed in Schedule 2.2 (each
such entity listed in Schedule 2.2 is
referred to as a “Subsidiary” and
collectively, as the “Subsidiaries”).  Except
as set forth in Schedule 2.2, Plastec
or another Subsidiary that is wholly-owned by Plastec owns all of the
outstanding equity securities of each Subsidiary, free and clear of all
Liens.  Except for the Subsidiaries, Plastec does not own, directly or
indirectly, any ownership, equity, profits or voting interest in any Person (as
defined in Section 11.2(m)), has no agreement or commitment to purchase any such
interest, and has not agreed and is not obligated to make nor is bound by any
written, oral or other agreement, contract, subcontract, lease, binding
understanding, instrument, note, option, warranty, purchase order, license,
sublicense, insurance policy, benefit plan, commitment or undertaking of any
nature, as of the date hereof or as may hereafter be in effect under which it
may become obligated to make, any future investment in or capital contribution
to any other entity.

     

    (b)           Each
Subsidiary is duly incorporated, validly existing and in good standing under the
laws of its jurisdiction of incorporation (as listed in Schedule 2.2) and has
the requisite corporate power and authority to own, lease and operate its assets
and properties and to carry on its business as it is now being or currently
planned by Plastec to be conducted.  Each Subsidiary is in possession
of all Approvals necessary to own, lease and operate the properties it purports
to own, operate or lease and to carry on its business as it is now being or
currently planned by Plastec to be conducted, except where the failure to have
such Approvals would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect on Plastec or such
Subsidiary.  Complete and correct copies of the Charter Documents of
each Subsidiary, as amended and currently in effect, have been heretofore
delivered to GSME or GSME’s counsel.  No Subsidiary is in violation of
any of the provisions of its Charter Documents.

     

    (c)           Each
Subsidiary is duly qualified or licensed to do business as a foreign corporation
or foreign limited liability company and is in good standing in each
jurisdiction where the character of the properties owned, leased or operated by
it or the nature of its activities makes such qualification or licensing
necessary, except for such failures to be so duly qualified or licensed and in
good standing that would not, individually or in the aggregate, reasonably be
expected
to have a Material Adverse Effect on Plastec or such Subsidiary.  Each
jurisdiction in which each Subsidiary is so qualified or licensed is listed in
Schedule
2.2.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (d)           The
minute books of each Subsidiary contain true, complete and accurate records of
all meetings and consents in lieu of meetings of its Board of Directors (and any
committees thereof), similar governing bodies and shareholders since the date of
the Subsidiary’s inception.  Copies of the Corporate Records of each
Subsidiary have been heretofore delivered to GSME or GSME’s
counsel.

     

    (e)           The
authorized and outstanding capital stock or other equity interests of each
Subsidiary are set forth in Schedule
2.2.  There are no outstanding options, warrants or other
rights to purchase securities of any Subsidiary.

     

    2.3           Capitalization.

     

    (a)           The
maximum authorized number of shares of Plastec consists of 50,000 ordinary
shares, par value $1.00 per share (the “Plastec Shares”), of
which 12,500 shares are issued and outstanding as of the date of this Agreement,
all of which are validly issued, fully paid and nonassessable.

     

    (b)           No
Plastec Shares are reserved for issuance upon the exercise of outstanding
options to purchase Plastec Shares granted to employees of Plastec or other
parties, and no Plastec Shares are reserved for issuance upon the exercise of
outstanding warrants or other rights to purchase Plastec Shares.  All
outstanding Plastec Shares have been issued and granted in compliance with all
applicable securities laws and other applicable laws and
regulations.

     

    (c)           Except
as contemplated by this Agreement and except as set forth in Schedule 2.3, there
are no subscriptions, options, warrants, equity securities, partnership
interests or similar ownership interests, calls, rights (including preemptive
rights except such preemptive rights as may be set forth in applicable Charter
Documents or relevant law of its jurisdiction), commitments or agreements of any
character to which Plastec is a party or by which it is bound obligating Plastec
to issue, deliver or sell, or cause to be issued, delivered or sold, or
repurchase, redeem or otherwise acquire, or cause the repurchase, redemption or
acquisition of, any shares of capital stock or similar ownership interests of
Plastec or obligating Plastec to grant, extend, accelerate the vesting of or
enter into any such subscription, option, warrant, equity security, call, right,
commitment or agreement.

     

    (d)           Except
as contemplated by this Agreement and except as set forth in Schedule 2.3, there
are no registration rights, and there is no voting trust, proxy, rights plan,
antitakeover plan or other agreement or understanding to which Plastec is a
party or by which Plastec is bound with respect to any equity security of any
class of Plastec.

     

    (e)           Except
as set forth in Schedule 2.3, no
outstanding Plastec Shares are unvested or are subject to a repurchase option,
risk of forfeiture or other condition under any applicable agreement with
Plastec.

    
      
         

      

      
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    2.4           Authority Relative to this
Agreement.  Plastec has all necessary corporate power and
authority to execute and deliver this Agreement, to perform its obligations
hereunder and to consummate the transactions contemplated hereby.  The
execution and delivery of this Agreement and the consummation by Plastec of the
transactions contemplated hereby have been duly and validly authorized by all
necessary corporate action on the part of Plastec (including the approval by its
Board of Directors and shareholders, subject in all cases to the satisfaction of
the terms and conditions of this Agreement, including the conditions set forth
in Article VII), and no other corporate proceedings on the part of Plastec or
its shareholders are necessary to authorize this Agreement or to consummate the
transactions contemplated hereby pursuant to applicable law and the terms and
conditions of this Agreement.  This Agreement has been duly and
validly executed and delivered by Plastec and, assuming the due authorization,
execution and delivery thereof by the other Parties hereto, constitutes the
legal and binding obligation of Plastec, enforceable against Plastec in
accordance with its terms, except as may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting the enforcement of creditors’
rights generally and by general principles of equity.

     

    2.5           No Conflict; Required
Filings and Consents.

     

    (a)           The
execution and delivery of this Agreement by Plastec does not, and the
performance of this Agreement by Plastec shall not, (i) conflict with or violate
the Charter Documents of Plastec or any Subsidiary or any Legal Requirements (as
defined in Section 11.2(h)), (ii) result in any breach of or constitute a
default (or an event that with notice or lapse of time or both would become a
default) under, or materially impair Plastec’s rights or alter the rights or
obligations of any third party under, or give to others any rights of
termination, amendment, acceleration or cancellation of, or result in the
creation of a lien or encumbrance on any of the properties or assets of Plastec
pursuant to, any Plastec Contracts (as defined in Section 2.19(a)), or (iii)
result in the triggering, acceleration or increase of any payment to any Person
pursuant to any Plastec Contract, including any “change in control” or similar
provision of any Plastec Contract, except for any such conflicts, violations,
breaches, defaults, triggerings, accelerations, increases or other occurrences
that would not, individually and in the aggregate, reasonably be expected to
have a Material Adverse Effect on Plastec.

     

    (b)           The
execution and delivery of this Agreement by Plastec does not, and the
performance of its obligations hereunder will not, require any consent,
approval, authorization or permit of, or filing with or notification to, any
court, administrative agency, commission, governmental or regulatory authority,
domestic or foreign (a “Governmental Entity”)
or other third party (including, without limitation, lenders and lessors) except
(i) for applicable requirements, if any, of the Securities Act of 1933, as
amended (the “Securities Act”), the
Securities Exchange Act of 1934, as amended (“Exchange Act”) or
state securities laws (“Blue Sky Laws”), and
the rules and regulations thereunder, and appropriate documents received from or
filed with the relevant authorities of other jurisdictions in which Plastec is
licensed or qualified to do business, (ii) the consents, approvals,
authorizations and permits described in Schedule 2.5 and
(iii) where the failure to obtain such consents, approvals, authorizations or
permits, or to make such filings or notifications, would not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect on
Plastec or, after the Closing, GSME, or prevent consummation of the transactions
contemplated by this Agreement or otherwise prevent the Parties hereto from
performing their obligations under this Agreement.

    
      
         

      

      
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    2.6           Compliance.  Plastec
has complied with and is not in violation of any Legal Requirements with respect
to the conduct of its business, or the ownership or operation of its business,
except for failures to comply or violations which, individually or in the
aggregate, have not had and are not reasonably likely to have a Material Adverse
Effect on Plastec.  Except as set forth in Schedule 2.6, no
written notice of non-compliance with any Legal Requirements has been received
by Plastec (and Plastec has no Knowledge of any such notice delivered to any
other Person).  Plastec is not in violation of any term of any Plastec
Contract, except for failures to comply or violations which, individually or in
the aggregate, have not had and are not reasonably likely to have a Material
Adverse Effect on Plastec.

     

    2.7           Financial
Statements.

     

    (a)           Plastec
has provided to GSME consolidated financial statements in draft form (including
any related notes thereto) of Plastec for the Fiscal Year ended April 30, 2010
(“Draft Financial
Statements”).  Plastec has also provided to GSME a correct and
complete copy of the audited consolidated financial statements (including any
related notes thereto) of Plastec for the Fiscal Years ended April 30, 2009 and
April 30, 2008 (the “Audited Financial
Statements” and together with the Draft Financial Statements (or the 2010
Audited Financial Statements once completed, as applicable), collectively
referred to as the “Financial
Statements”)).  The Financial Statements have been prepared in
accordance with the rules and regulations of IFRS (as defined in Section
11.2(f)) applied on a consistent basis throughout the periods involved (except
as may be indicated in the notes thereto), and fairly presents in all material
respects the financial position of Plastec at the respective dates thereof and
the results of its operations and cash flows for the periods
indicated.

     

    (b)           The
books of account, and other similar books and records of Plastec, for Fiscal
Years 2010, 2009 and 2008 are complete and correct in all material respects and
there have been no material transactions required to be set forth therein that
have not been so set forth.

     

    (c)           The
accounts and notes receivable of Plastec reflected on the balance sheet included
in the Financial Statements as of April 30, 2010 which remain outstanding on the
date hereof (i) arose from bona fide sales transactions in the ordinary course
of business, (ii) are legal, valid and binding obligations of the respective
debtors enforceable in accordance with their terms, except as such may be
limited by bankruptcy, insolvency, reorganization, or other similar laws
affecting creditors’ rights generally, and by general equitable principles,
(iii) are not to Plastec’s Knowledge subject to any valid set-off or
counterclaim except to the extent set forth in such balance sheet contained
therein, (iv) are entitled to be collected in the aggregate recorded amounts
thereof, net of any applicable reserve reflected in such balance sheet
referenced above and (v) are not the subject of any actions or proceedings
brought by or on behalf of Plastec.

     

    2.8           No Undisclosed
Liabilities.  Plastec has no liabilities (absolute, accrued,
contingent or otherwise) of a nature required under IFRS to be disclosed on a
balance sheet or in the related notes to financial statements that are,
individually or in the aggregate, material to the business, results of
operations or financial condition of Plastec, except: (i) liabilities provided
for in or otherwise disclosed in the notes to the Financial Statements, and (ii)
such liabilities arising in the ordinary course of Plastec’s business since
April 30, 2010, which would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect on Plastec.

    
      
         

      

      
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    2.9           Absence of Certain Changes
or Events.  Except as set forth in Schedule 2.9, since
April 30, 2010, there has not been: (i) any Material Adverse Effect on Plastec,
(ii) any declaration, setting aside or payment of any dividend on, or other
distribution (whether in cash, stock or property) in respect of, any of
Plastec’s shares, or any purchase, redemption or other acquisition by Plastec of
any of Plastec’s shares or any other securities of Plastec or any options,
warrants, calls or rights to acquire any such shares or other securities, (iii)
any split, combination or reclassification of any of Plastec’s share structure,
(iv) (A) any granting by Plastec of any increase in compensation or fringe
benefits, except for normal increases of cash compensation in the ordinary
course of business consistent with past practice, or (B) any payment by Plastec
of any bonus, except for bonuses made in the ordinary course of business
consistent with past practice, or (C) any granting by Plastec of any increase in
severance or termination pay or any entry by Plastec into any currently
effective employment, severance, termination or indemnification agreement or any
other agreement the benefits of which are contingent or the terms of which are
materially altered adversely to Plastec upon the occurrence of a transaction
involving Plastec of the nature contemplated hereby, except in the case of
clause (C) for such employment, severance, termination, indemnification or other
agreements made in the ordinary course of business consistent with past
practice, (v) entry by Plastec into any licensing or other agreement with regard
to the acquisition or disposition of any Intellectual Property (as defined in
Section 2.18) other than licenses in the ordinary course of business consistent
with past practice or any amendment or consent with respect to any licensing
agreement filed or required to be filed by Plastec with respect to any
Governmental Entity, (vi) any material change by Plastec in its accounting
methods, principles or practices except for those changes required under IFRS,
(vii) any change in the auditors of Plastec, except for the engagement of Grant
Thornton in May 2010, (viii) any issuance of shares of Plastec, (ix) any
revaluation by Plastec of any material portion of its assets, including, without
limitation, writing down the value of capitalized inventory or writing off notes
or accounts receivable or any sale of assets of Plastec other than in the
ordinary course of business or (x) any agreement, whether written or oral, to do
any of the foregoing.

     

    2.10         Litigation.  There
are no claims, suits, actions or proceedings pending or, to the Knowledge of
Plastec, threatened against Plastec before any Governmental Entity, or any
arbitrator that seeks to restrain or enjoin the consummation of the transactions
contemplated by this Agreement or which would reasonably be expected, either
individually or in the aggregate with all such claims, actions or proceedings,
to have a Material Adverse Effect on Plastec or have a Material Adverse Effect
on the ability of the Parties hereto to consummate the transactions contemplated
by this Agreement.

     

    2.11         Employee Benefit
Plans.

     

    (a)           There
are no  material employee incentive, fringe or benefit plans,
programs, policies, commitments or other arrangements (whether or not set forth
in a written document), and any employee compensation plan not made in the
ordinary course of business, covering any active or former employee, director or
consultant of Plastec, or any trade or business (whether or not incorporated)
which is under common control with Plastec, with respect to which Plastec has a
material liability (individually, a “Plan” and,
collectively, the “Plans”).

     

    (b)           Neither
the execution and delivery of this Agreement nor the consummation of the
transactions contemplated hereby will (i) result in any payment (including
severance,
unemployment compensation, golden parachute, bonus or otherwise) becoming due to
any shareholder, director or employee of Plastec under any Plan or otherwise,
(ii) materially increase any benefits otherwise payable under any Plan, or (iii)
result in the acceleration of the time of payment or vesting of any such
benefits.

     

    
      
        
        

      

      
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    2.12         Labor
Matters.  Plastec is not a party to any collective bargaining
agreement or other labor union contract applicable to persons employed by
Plastec and Plastec does not know of any activities or proceedings of any labor
union or other labor organization to organize any such
employees.  Plastec is not the subject of any proceeding asserting
that it has committed an unfair labor practice or seeking to compel it to
bargain with any labor organization which, if successful, would reasonably be
expected to have a Material Adverse Effect upon Plastec.

     

    2.13         Restrictions on Business
Activities.  There is no agreement, commitment, judgment,
injunction, order or decree binding upon Plastec or its assets or to which
Plastec is a party which has or would reasonably be expected to have the effect
of prohibiting or materially impairing any business practice of Plastec, any
acquisition of property by Plastec or the conduct of business by Plastec as
currently conducted other than such effects, individually or in the aggregate,
which have not had and would not reasonably be expected to have a Material
Adverse Effect on Plastec.

     

    2.14         Title to
Property.

     

    (a)           All
real property owned by Plastec (including improvements and fixtures thereon,
easements and rights of way) is shown or reflected on the balance sheets of
Plastec included in the Financial Statements. Plastec has good, valid and
marketable title to the real property owned by it, and except as set forth in
the Financial Statements, all of such real property is held free and clear of
(i) all leases, licenses and other rights to occupy or use such real property
and (ii) all Liens, rights of way, easements, restrictions, exceptions,
variances, reservations, covenants or other title defects or limitations of any
kind, other than liens for Taxes (as defined in Section 2.15(a)) not yet due and
payable and such liens or other imperfections of title, if any, as do not
materially detract from the value of or materially interfere with the present
use of the real property affected thereby.  There are no options or
other contracts under which Plastec has a right to acquire or the obligation to
sell any interest in real property.  Plastec neither owns, nor has any
other interest in, real property located in the United States.

     

    (b)           All
capitalized material leases of real property owned or held for use by Plastec in
connection with the business of Plastec are shown or reflected on the balance
sheets included in the Audited Financial Statements as of the dates of such
Audited Financial Statements, other than those entered into or acquired on or
after the date of the Audited Financial Statements in the ordinary course of
business.  All material personal property and assets of Plastec have
been previously disclosed or furnished to GSME in connection with GSME’s due
diligence review of Plastec.  Plastec has good and marketable title to
the real property leases owned by it and all such real property leases are in
each case held free and clear of all Liens, except for Liens and failures to
hold good and marketable title disclosed in the Audited Financial Statements or
Schedule
2.14(b) hereto or that would not be reasonably expected to have,
individually or in the aggregate, a Material Adverse Effect on
Plastec.

    
      
         

      

      
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    (c)           Except
as set forth in Schedule 2.14(c)
hereto, all material leases, other than those leases referred to in the first
sentence of Section 2.14(b), pursuant to which Plastec leases from others
material real property are valid and effective in accordance with their
respective terms, and there is not, under any of such leases, any existing
material default or event of default of Plastec or, to Plastec’s Knowledge, with
respect to any other party (or any event which with notice or lapse of time, or
both, would constitute a material default), except where the lack of such
validity and effectiveness or the existence of such default or event of default
would not reasonably be expected to have a Material Adverse Effect on
Plastec.

     

    (d)           Plastec
is in possession of, or has valid and effective rights to, all properties,
assets and rights required for the effective conduct of its business taken as a
whole, as it is currently operated and expected to be operated in the future, in
the ordinary course.

     

    2.15         Taxes.

     

    (a)           Definition of
Taxes.  For the purposes of this Agreement, “Tax” or “Taxes” refers to all
taxes levied or imposed by any Governmental Entity, including, without
limitation, gross receipts, income, profits, sales, use, occupation, value
added, ad valorem, transfer, franchise, withholding, payroll, recapture,
employment, excise and property taxes, assessments, governmental charges and
duties together with all interest, penalties and additions imposed with respect
to any such amounts and any obligations under any agreements or arrangements
with any other Person with respect to any such amounts and including any
liability of a predecessor entity for any such amounts.

     

    (b)           Tax Returns and
Audits.

     

    (i)           Plastec
has duly filed all returns, estimates, information statements and reports
relating to Taxes (“Returns”) required to
be filed by Plastec with any Tax authority prior to the date hereof, except such
Returns which are not material to Plastec.  All such Returns are true,
correct and complete in all material respects.  Plastec has paid all
Taxes shown to be due and payable on such Returns.

     

    (ii)          All
material amounts of Taxes that Plastec is required by law to withhold or collect
have been duly withheld or collected, and have been timely paid over to the
proper governmental authorities to the extent due and payable.

     

    (iii)         Plastec
is not delinquent in the payment of any material Tax nor is there any material
amount of Tax deficiency outstanding, proposed or assessed against Plastec, nor
has Plastec executed any unexpired waiver of any statute of limitations on or
extending the period for the assessment or collection of any material amount of
Tax which waiver or extension is presently in effect.

     

    (iv)        To
the Knowledge of Plastec, no audit or other examination of any Return of Plastec
by any Tax authority is presently in progress nor has Plastec been notified of
any request for such an audit or other examination.

    (v)         No
adjustment relating to any Return filed by Plastec has been proposed in writing,
formally or informally, by any Tax authority to Plastec or any representative
thereof.

     

    
      
        
        

      

      
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    (vi)        Plastec
has no liability for any material amount of unpaid Taxes which have not been
accrued for or reserved on Plastec’s balance sheets included in the Financial
Statements, whether asserted or unasserted, contingent or otherwise, which is
material to Plastec, other than any liability for unpaid Taxes that may have
accrued since the end of the most recent Fiscal Year in connection with the
operation of the business of Plastec in the ordinary course of
business.

     

    (vii)       This
Section 2.15 contains the sole and exclusive representations and warranties of
Plastec with respect to any matter relating to Taxes or Returns.

     

    2.16         Environmental
Matters.

     

    (a)           Except
for such matters that, individually or in the aggregate, are not reasonably
likely to have a Material Adverse Effect, to Plastec’s Knowledge, it has no
liability under any applicable law existing and in effect on the date hereof
relating to pollution or protection of the environment (an “Environmental Law”)
or under any Plastec Contract with respect to or as a result of the presence,
discharge, generation, treatment, storage, handling, removal, disposal,
transportation or release of any substance defined as hazardous, toxic or a
pollutant under any Environmental Law (“Hazardous Material”)
applicable to Plastec’s activities.

     

    (b)          Other
than with regard to customary filings and notice obligations, Plastec has not
received any notice of violation or potential liability under any Environmental
Laws from any Person or Governmental Entity or any inquiry, request for
information, or demand letter under any Environmental Law relating to operations
or properties of Plastec.

     

    (c)           Plastec
is not subject to any order arising under any Environmental Law nor is there any
administrative, civil or criminal action, suit, proceeding or investigation
pending or, to the knowledge of Plastec, threatened, against Plastec under any
Environmental Law.  Plastec has not entered into any agreement
pursuant to which it has assumed or will assume any liability under
Environmental Laws, including, without limitation, any obligation for costs of
remediation, of any other Person.

     

    (d)           There
have been no environmental studies or investigations undertaken or completed,
and there are no such studies or investigations currently in process, with
respect to Plastec and/or its Subsidiaries or their respective properties or
assets.

     

    2.17         Brokers; Third Party
Expenses.  Plastec has not incurred, nor will it incur,
directly or indirectly, any liability for brokerage, finders’ fees, agent’s
commissions or any similar charges in connection with this Agreement or any
transactions contemplated hereby which will become the liability of GSME or will
be a liability of Merged Plastec to be paid after Closing.

    2.18         Intellectual
Property.  Schedule 2.18
contains a description of all material Intellectual Property of
Plastec.  For the purposes of this Agreement, the following terms have
the following definitions:

     

    
      
        
        

      

      
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    “Intellectual
Property” shall mean any or all of the following and all worldwide common
law and statutory rights in, arising out of, or associated therewith: (i)
patents and applications therefor and all reissues, divisions, renewals,
extensions, provisionals, continuations and continuations-in-part thereof
(“Patents”);
(ii) inventions (whether patentable or not), invention disclosures,
improvements, trade secrets, proprietary information, know how, technology,
technical data and customer lists, and all documentation relating to any of the
foregoing; (iii) copyrights, copyright registrations and applications therefor,
and all other rights corresponding thereto throughout the world (“Copyrights”); (iv)
software and software programs; (v) domain names, uniform resource locators and
other names and locators associated with the Internet; (vi) industrial designs
and any registrations and applications therefor; (vii) trade names, logos,
common law trademarks and service marks, trademark and service mark
registrations and applications therefor (collectively, “Trademarks”); (viii)
all databases and data collections and all rights therein; (ix) all moral and
economic rights of authors and inventors, however denominated, and (x) any
similar or equivalent rights to any of the foregoing (as
applicable).

     

    “Plastec Intellectual
Property” shall mean any Intellectual Property that is owned by, or
exclusively licensed to, Plastec, including software and software programs
developed by or exclusively licensed to Plastec (specifically excluding any off
the shelf or shrink-wrap software).

     

    “Registered Intellectual
Property” means all Intellectual Property that is the subject of an
application, certificate, filing, registration or other document issued, filed
with, or recorded by any Governmental Entity or other legal
authority.

     

    “Plastec Registered
Intellectual Property” means all of the Registered Intellectual Property
owned by, or filed in the name of, Plastec.

     

    “Plastec Products”
means all current versions of products or service offerings of
Plastec.

     

    (a)           Except
as disclosed in Schedule 2.18, no
Plastec Intellectual Property or Plastec Product is subject to any material
proceeding or outstanding decree, order, judgment, contract, license or
stipulation restricting in any manner the use, transfer or licensing thereof by
Plastec, or which may affect the validity, use or enforceability of such Plastec
Intellectual Property or Plastec Product, which in any such case would
reasonably be expected to have a Material Adverse Effect on
Plastec.

     

    (b)           Plastec
owns or has enforceable rights to use all Intellectual Property required for the
conduct of its business as presently conducted or as presently contemplated to
be conducted.  Except as disclosed in Schedule 2.18,
Plastec owns and has good and exclusive title to each
material item of Plastec Intellectual Property owned by it free and clear of any
Liens (excluding non-exclusive licenses and related restrictions granted by it
in the ordinary course of business); and Plastec is the exclusive owner of all
material registered Trademarks and Copyrights used in connection with the
operation or conduct of the business of Plastec including the sale of any
products or the provision of any services by Plastec.

     

    
      
        
        

      

      
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    (c)           To
the Knowledge of Plastec, the material operation of the business of Plastec as
such business currently is conducted, including Plastec’s use of any product,
device or process material to its operations, has not and does not infringe or
misappropriate the Intellectual Property of any third party or constitute unfair
competition or trade practices under the laws of any jurisdiction applicable to
Plastec.  Plastec has not received any claims or threats from third
parties alleging any such infringement, misappropriation or unfair competition
or trade practices that are not resolved.

     

    2.19         Agreements, Contracts and
Commitments.

     

    (a)           Schedule 2.19 sets
forth a complete and accurate list of all Material Plastec Contracts (as
hereinafter defined), specifying the parties thereto.  For purposes of
this Agreement, (i) the term “Plastec Contracts”
shall mean all contracts, agreements, leases, mortgages, indentures, notes,
bonds, licenses, permits, franchises, purchase orders, sales orders, and other
understandings, commitments and obligations (including without limitation
outstanding offers and proposals) of any kind, whether written or oral, to which
Plastec (including its Subsidiaries) is a party and has continuing material
obligations to the other parties thereto, or by or to which any of the
properties or assets of Plastec are bound, subject or affected as of the date
hereof (including without limitation notes or other instruments payable to
Plastec); and (ii) the term “Material Plastec
Contracts” shall mean (x) each Plastec Contract (I) providing for
remaining payments (present or future) to Plastec in excess of one million
dollars ($1,000,000) in the aggregate or (II) under which or in respect of which
Plastec presently has any remaining liability or obligation of any nature
whatsoever (absolute, contingent or otherwise) in excess of one million dollars
($1,000,000), and (y) without limitation of subclause (x), each of the following
Plastec Contracts:

     

    (i)           any
mortgage, indenture, note, installment obligation or other instrument, agreement
or arrangement for or relating to any borrowing of money from Plastec by any
officer, director, shareholder or holder of derivative securities of Plastec
(each such person, a “Plastec
Insider”);

     

    (ii)          any
mortgage, indenture, note, installment obligation or other instrument, agreement
or arrangement for or relating to any borrowing of money from a Plastec Insider
by Plastec;

     

    (iii)         any
guaranty, direct or indirect, by Plastec, a Subsidiary or any Plastec Insider of
any obligation for borrowings, or otherwise, excluding endorsements made for
collection in the ordinary course of business;

     

    (iv)        any
Plastec Contract of employment or management or for consulting services in
excess of $250,000 per year;

    (v)         any
Plastec Contract made other than in the ordinary course of business or (I)
providing for the grant of any preferential rights to purchase or lease any
asset of Plastec in excess of $250,000 in value or (II) providing for any right
(exclusive or non-exclusive) to sell or distribute, or otherwise relating to the
sale or distribution of, any product or service of Plastec in excess of $250,000
in value;

     

    
      
        
        

      

      
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    (vi)        any
obligation to register any shares or other securities of Plastec with any
Governmental Entity;

     

    (vii)       any
obligation to make payments, contingent or otherwise, arising out of the prior
acquisition of the business, assets or stock of other Persons;

     

    (viii)      any
collective bargaining agreement with any labor union;

     

    (ix)         any
lease or similar arrangement for the use by Plastec of real property or personal
property (other than any lease of vehicles, office equipment or operating
equipment made in the ordinary course of business where the annual lease
payments are less than one million dollars ($1,000,000));

     

    (x)          any
Plastec Contract granting or purporting to grant, or otherwise in any way
relating to, any mineral rights or any other interest (including, without
limitation, a leasehold interest) in real property;

     

    (xi)         any
Plastec Contract to which any Plastec Insider is a party; and

     

    (xii)        any
outstanding offer or proposal which, if accepted, would constitute any of the
foregoing.

     

    (b)           Each
Material Plastec Contract was entered into at arms’ length, is in full force and
effect and, to Plastec’s Knowledge, is valid and binding upon and enforceable
against each of the parties thereto (except insofar as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors’ rights generally or by principles governing
the availability of equitable remedies).  True, correct and complete
copies of all Material Plastec Contracts and outstanding offers and proposals,
which, if accepted, would constitute Material Plastec Contracts (or written
summaries in the case of oral Material Plastec Contracts or oral offers and
proposals, which if accepted, would constitute Material Plastec Contracts), have
been heretofore delivered to GSME or GSME’s counsel.

     

    (c)           Neither
Plastec nor, to the best of Plastec’s Knowledge, any other party thereto with
material obligations thereunder is in breach of or in default under, and no
event has occurred which with notice or lapse of time or both would become a
breach of or default under, any Plastec Contract, and no party to any Plastec
Contract has given any written notice of any claim of any such breach, default
or event, which, individually or in the aggregate, is reasonably likely to have
a Material Adverse Effect on Plastec.  Each Material Plastec Contract
that has not expired or been terminated by its terms is in full force and
effect, subject to all of the terms and conditions of each such Material Plastec
Contract, and except as may be further limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to or affecting
creditors’ rights generally and by general principles of
equity.

    2.20        Insurance.  Schedule 2.20 sets
forth Plastec’s material all risk, auto liability, general comprehensive
liability and product liability insurance policies currently in force and
covering the assets, business, equipment, properties and operations of Plastec
(collectively, the “Insurance
Policies”).  The insurances provided by such Insurance Policies
are to Plastec’s Knowledge adequate in amount and scope for Plastec’s business
and operations, including any insurance required to be maintained by Plastec
Contracts.

     

    
      
        
        

      

      
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    2.21         Governmental
Actions/Filings.

     

    (a)           Plastec
has been granted and holds, and has made, all Governmental Actions/Filings (as
defined in Section 2.21(c)) necessary to the conduct by Plastec of any material
portion of its business (as presently conducted and as presently proposed to be
conducted) or used or held for use by Plastec, and true, complete and correct
copies of which have heretofore been delivered to GSME or GSME’s
counsel.  Each such Governmental Action/Filing is in full force and
effect and no such Governmental Action/Filing must be renewed prior to April 30,
2011, and Plastec is in compliance with all of its obligations with respect
thereto except where the failure to be in compliance would not reasonably be
expected to have a Material Adverse Effect upon Plastec.  No event has
occurred and is continuing which requires or permits, or after notice or lapse
of time or both would require or permit, and, except as may result from the
status of GSME as a holder of the shares of Merged Plastec, consummation of the
transactions contemplated by this Agreement or any ancillary documents will not
require or permit (with or without notice or lapse of time, or both), any
modification or termination of any such Governmental Actions/Filing except such
events which, either individually or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect upon Plastec.

     

    (b)           No
Governmental Action/Filing is necessary to be obtained, secured or made by
Plastec that has not already been obtained, secured or made to enable it to
continue to conduct any material portion of its businesses and operations and
use any material portion of its properties after the Closing through April 30,
2011 in a manner which is consistent with current practice.

     

    (c)           For
purposes of this Agreement, the term “Governmental
Action/Filing” shall mean any franchise, license, certificate of
compliance, authorization, consent, order, permit, approval, consent or other
action of, or any filing, registration or qualification with, any federal,
state, municipal, foreign or other governmental, administrative or judicial
body, agency or authority.

     

    2.22         Interested Party
Transactions. No employee, officer or director of Plastec or immediate
family member thereof is indebted to Plastec, nor is Plastec indebted (or
committed to make loans or extend or guarantee credit) to any such Person, other
than (i) for payment of salary and bonus for services rendered, (ii)
reimbursement for expenses incurred on behalf of or otherwise authorized by
Plastec or in connection with such Person’s duties as an officer, director or
employee of Plastec, and (iii) for other employee benefits in the ordinary
course of business.  To Plastec’s Knowledge, none of such individuals
has any direct or indirect material ownership interest in any Person which is an
Affiliate of Plastec or with which Plastec has a material contractual
relationship, or in any Person that competes with Plastec, except that each
employee, shareholder,
officer or director of Plastec and members of their respective immediate
families may own less than five percent (5%) of the outstanding stock in
publicly traded companies that may compete with Plastec.  To the
Knowledge of Plastec, no Plastec Shareholder, officer, director or other
Affiliate of the Plastec Shareholders is, directly or indirectly, interested in
any Material Plastec Contract with Plastec (other than such contracts as relate
to any such Person’s ownership of capital stock or other securities of Plastec
or such Person’s employment with Plastec).

     

    
      
        
        

      

      
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    2.23         Plastec Shareholder
Indebtedness.  Except as set forth in Schedule 2.23 hereto,
there are no outstanding direct or indirect indebtedness or other similar
obligations owed by the Plastec Shareholders to Plastec.

     

    2.24         Board
Approval.  The Board of Directors of Plastec (including any
required committee or subgroup thereof) has, as of the date of this Agreement,
duly approved this Agreement and the transactions contemplated
hereby.

     

    2.25         No Illegal or Improper
Transactions.  Neither Plastec nor, to the Knowledge of
Plastec, any officer, director, employee, agent or Affiliate of Plastec has (a)
used any funds of Plastec for unlawful contributions, gifts, entertainment or
other unlawful expenses relating to political activity; (b) made any payment in
violation of applicable law to any foreign or domestic government official or
employee or to any foreign or domestic political party or campaign or violated
any provision of the Foreign Corrupt Practices Act of 1977, as amended; or (c)
made any other payment in violation of applicable law.

     

    2.26         No United States Operations
or Assets.  Plastec does not conduct any operations in the
United States, its territories or possessions and has no assets (including bank
accounts) located therein.

     

    2.27         Representations and
Warranties Complete.  To Plastec’s Knowledge, the
representations and warranties of Plastec included in this Agreement and any
list, statement, document or information set forth in, or attached to, any
Schedule provided pursuant to this Agreement or delivered hereunder, are true
and complete in all material respects and do not contain any untrue statement of
a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements contained therein not misleading, under the
circumstance under which they were made.

     

    2.28         Survival of Representations
and Warranties.  The representations and warranties of Plastec
set forth in this Agreement shall survive the Closing until the end of the
Escrow Period or such later date as may be set forth in Section
8.4(a).

     

    2.29         No Other
Representations.  Except for the representations and warranties
set forth in Article IV, subject to the exceptions set forth in the applicable
disclosure schedules, none of GSME or GSME Sub, or any other Person on its or
any of their behalf, makes any express or implied representation or warranty
with respect to the GSME or GSME Sub or the transactions contemplated herein.
Notwithstanding any representation made in this Agreement, none of GSME, GSME
Sub nor any other Person on its or their behalf, makes any representation,
warranty
or covenant of any kind in respect of future revenues, expenses, expenditures,
results of operations or prospects, or any other projections or other
forward-looking information.

     

    
      
        
        

      

      
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    ARTICLE
III

     

    REPRESENTATIONS AND
WARRANTIES OF THE PLASTEC SHAREHOLDERS

     

    Subject
to the exceptions set forth in Schedule 3 (the “Plastec Shareholders
Schedule”), each Plastec Shareholder represents and warrants to, and
covenants with, GSME and GSME Sub, as of the date hereof and as of the Closing,
as follows:

     

    3.1           Authority Relative to this
Agreement.  Such Plastec Shareholder has all necessary
corporate power and authority to execute and deliver this Agreement and to
perform its obligations hereunder and, to consummate the transactions
contemplated hereby.  The execution and delivery of this Agreement and
the consummation by such Plastec Shareholder of the transactions contemplated
hereby have been duly and validly authorized by all necessary corporate action
on the part of such Plastec Shareholder (including the approval by its Board of
Directors and shareholders, subject in all cases to the satisfaction of the
terms and conditions of this Agreement, including the conditions set forth in
Article VII), and no other corporate proceedings on the part of such Plastec
Shareholder or its respective shareholders are necessary to authorize this
Agreement or to consummate the transactions contemplated hereby pursuant to
applicable law and the terms and conditions of this Agreement.  This
Agreement has been duly and validly executed and delivered by such Plastec
Shareholder and, assuming the due authorization, execution and delivery thereof
by the other Parties, constitutes the legal and binding obligation of such
Plastec Shareholder, enforceable against it in accordance with its terms, except
as may be limited by bankruptcy, insolvency, reorganization or other similar
laws affecting the enforcement of creditors’ rights generally and by general
principles of equity.

     

    3.2           Investor
Representations.  Such Plastec Shareholder: (i) is acquiring
the GSME Shares it shall receive pursuant to this Agreement for its account and
not with a view towards distribution thereof; (ii) understands that it must bear
the economic risk of the investment in the GSME Shares, which cannot be sold by
it unless they are registered under the Securities Act, or an exemption
therefrom is available thereunder; (iii) has had both the opportunity to ask
questions and receive answers from the officers and directors of GSME and all
persons acting on GSME’s behalf concerning the business and operations of GSME
and to obtain any additional information to the extent GSME possesses or may
possess such information or can acquire it without  unreasonable
effort or expense necessary to verify the accuracy of such information; and (iv)
has had access to the GSME SEC Reports (as defined in Section 4.7(a)) filed
prior to the date of this Agreement; (v) is either (A) an “accredited investor”
as such term is defined in Rule 501(a) promulgated under the Securities Act or
(B) an entity possessing sufficient knowledge and experience in financial and
business matters to enable it to evaluate the merits and risks of an investment
in GSME; and (vi) understands that the certificates representing the GSME Shares
to be received by it may bear legends to the effect that such GSME Shares may
not be transferred except upon compliance with (1) the registration requirements
of the Securities Act (or an exemption therefrom) and (2) the provisions of this
Agreement.

    
      
         

      

      
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    3.3           Consents.  The
execution and delivery of this Agreement by such Plastec Shareholder does not,
and the performance of its obligations hereunder will not, require any consent,
approval, authorization or permit of, or filing with or notification to, any
Governmental Entity, except (i) for applicable requirements, if any, of the
Securities Act, the Exchange Act, Blue Sky Laws, and the rules and regulations
thereunder, and (ii) where the failure to obtain such consents, approvals,
authorizations or permits, or to make such filings or notifications, would not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect on the Plastec Shareholders or Plastec or, after the Closing,
GSME or Merged Plastec, or prevent consummation of the transactions contemplated
by this Agreement or otherwise prevent the Parties from performing their
respective obligations under this Agreement.

     

    3.4           Liens.  Each
Plastec Shareholder owns its respective Plastec Shares free and clear of all
Liens.

     

    3.5           Representations and
Warranties Complete.  To each Plastec Shareholder’s Knowledge,
the representations and warranties of such Plastec Shareholder included in this
Agreement and any Schedule provided by such Plastec Shareholder pursuant to this
Agreement or delivered hereunder, are true and complete in all material respects
and do not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
contained therein not misleading, under the circumstances under which they were
made.

     

    3.6           Survival of Representations
and Warranties.  The representations and warranties of each
Plastec Shareholder set forth in this Agreement shall survive the Closing until
the end of the Escrow Period or such later date as may be set forth in Section
8.4(a).

     

    3.7           No Other
Representations.  Except for the representations and warranties
set forth in Article IV, subject to the exceptions set forth in the applicable
disclosure schedules, none of GSME or GSME Sub, or any other Person on its or
any of their behalf, makes any express or implied representation or warranty
with respect to GSME or GSME Sub or the transactions contemplated herein.
Notwithstanding any representation made in this Agreement, none of GSME, GSME
Sub nor any other Person on its or their behalf, makes any representation,
warranty or covenant of any kind in respect of future revenues, expenses,
expenditures, results of operations or prospects, or any other projections or
other forward-looking information.

     

    ARTICLE
IV

     

    REPRESENTATIONS AND
WARRANTIES OF GSME

     

    Subject
to the exceptions set forth in Schedule 4 (the “GSME Schedule”), each
of GSME and GSME Sub represent and warrant to, and covenant with, Plastec, as of
the date hereof and as of the Closing, as follows:

     

    4.1           Organization and
Qualification.

     

    (a)           GSME
is a corporation duly incorporated, validly existing and in good standing under
the law of the Cayman Islands and has the requisite corporate power and
authority to own, lease and operate its assets and properties and to carry on
its business as it is now being
or currently planned by GSME to be conducted.  GSME Sub is a company
duly formed, validly existing and in good standing under the law of the British
Virgin Islands and has the requisite company power and authority to own, lease
and operate its assets and properties and to carry on its business as it is now
being or currently planned by GSME to be conducted.  Each is in
possession of all Approvals necessary to own, lease and operate the properties
it purports to own, lease or operate and to carry on its business as it is now
being or currently planned by it to be conducted, except where the failure to
have such Approvals would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect on GSME or GSME
Sub.  Complete and correct copies of the Charter Documents of each of
them, as amended and currently in effect, have been heretofore delivered to
Plastec.  Neither is in violation of any of the provisions of its
Charter Documents.

     

    
      
        
        

      

      
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    (b)          Each
is duly qualified or licensed to do business as a foreign corporation and is in
good standing, in each jurisdiction where the character of the properties owned,
leased or operated by it or the nature of its activities makes such
qualification or licensing necessary, except for such failures to be so duly
qualified or licensed and in good standing that would not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect on GSME
or GSME Sub.  At or prior to the Closing, GSME will be duly qualified
or licensed to do business as a foreign corporation and in good standing in each
jurisdiction where the character of the properties acquired by it pursuant to
this Agreement makes such qualification or licensing necessary.

     

    4.2           Subsidiaries.  Other
than GSME’s ownership of GSME Sub, neither GSME nor GSME Sub owns, directly or
indirectly, any ownership, equity, profits or voting interest in any other
Person nor has any agreement or commitment to purchase any such
interest.  Neither GSME nor GSME Sub has agreed to make, and neither
is obligated or bound to make, any future investment in or capital contribution
to any other entity (whether such obligation or binding be by any written, oral
or other agreement, contract, subcontract, lease, binding understanding,
instrument, note, option, warranty, purchase order, license, sublicense,
insurance policy, benefit plan, commitment or undertaking of any nature, as of
the date hereof or as may hereafter be in effect).

     

    4.3           Capitalization.

     

    (a)           As
of the date of this Agreement, the authorized share capital of GSME consists of
50,000,000 GSME Shares and 1,000,000 preference shares, par value $0.001 per
share (the “GSME
Preference Shares”), of which 4,800,000 GSME Shares and no GSME
Preference Shares are issued and outstanding, all of which are validly issued,
fully paid and nonassessable.

     

    (b)           As
of the date of this Agreement, the authorized share capital of GSME Sub consists
of 100 shares, par value $0.001 per share (the “GSME Sub
Stock”).  Fifty (50) shares of GSME Sub Stock have been issued
to GSME, representing all of the issued and outstanding shares of GSME Sub
Stock. There are no options, warrants, voting agreements or other rights
outstanding with respect to the GSME Sub Stock.

    
      
         

      

      
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    (c)           Except
as set forth in Schedule 4.3: (i) no
GSME Shares or GSME Preference Shares are reserved for issuance upon the
exercise of outstanding options to purchase GSME Shares or GSME Preference
Shares granted to employees of GSME or other parties (the “GSME Shares Options”)
and there are no outstanding GSME Shares Options; (ii) no GSME Shares or GSME
Preference Shares are reserved for issuance upon the exercise of outstanding
warrants to purchase GSME Shares or GSME Preference Shares (the “GSME Warrants”) and
there are no outstanding GSME Warrants; and (iii) no GSME Shares or GSME
Preference Shares are reserved for issuance upon the conversion of GSME
Preference Shares or any outstanding convertible notes, debentures or securities
(the “GSME Convertible
Securities”).  All GSME Shares and GSME Preference Shares
subject to issuance as aforesaid, upon issuance on the terms and conditions
specified in the instrument pursuant to which they are issuable, will be duly
authorized, validly issued, fully paid and nonassessable.  All
outstanding GSME Shares and all outstanding GSME Warrants have been issued and
granted in compliance with (x) all applicable securities laws and (in all
material respects) other applicable laws and regulations, and (y) all
requirements set forth in any applicable GSME Contracts (as defined in Section
4.19(a)).  GSME has heretofore delivered to Plastec true, complete and
accurate copies of the GSME Warrants, including any and all documents and
agreements relating thereto.

     

    (d)           The
GSME Shares to be issued by GSME pursuant to this Agreement, upon issuance in
accordance with the terms of this Agreement, will be duly authorized and validly
issued and such GSME Shares will be fully paid and nonassessable.

     

    (e)           Except
as set forth in Schedule 4.3 or as
contemplated by this Agreement or the GSME SEC Reports, there are no
registration rights, and there is no voting trust, proxy, rights plan, agreement
to repurchase or redeem, anti-takeover plan or other agreements or
understandings to which GSME or GSME Sub is a party or by which GSME or GSME Sub
is bound with respect to any equity security of any class of GSME or GSME
Sub.

     

    (f)           Except
as provided for in this Agreement or as set forth in Schedule 4.3, as a
result of the consummation of the transactions contemplated hereby, no shares,
warrants, options or other securities of GSME or GSME Sub are issuable and no
rights in connection with any shares, warrants, options or other securities of
GSME or GSME Sub accelerate or otherwise become triggered (whether as to
vesting, exercisability, convertibility or otherwise).

     

    4.4           Authority Relative to this
Agreement.  GSME and GSME Sub have full corporate power and
authority, respectively, to: (i) execute, deliver and perform this Agreement,
and each ancillary document executed or delivered, or to be executed or
delivered pursuant to this Agreement, and (ii) carry out their obligations
hereunder and thereunder and, to consummate the transactions contemplated
hereby.  The execution and delivery of this Agreement and the
consummation by GSME and GSME Sub of the transactions contemplated hereby have
been duly and validly authorized by all necessary corporate action on the part
of GSME (including the approval by its Board of Directors) and all necessary
company action on the part of GSME Sub (including the approval by its Board of
Directors), and no other corporate or company proceedings on the part of GSME or
GSME Sub are necessary to authorize this Agreement or to consummate the
transactions contemplated hereby, other than the GSME Shareholder Approval (as
defined in Section 6.1(a)).  This Agreement has been duly and validly
executed and delivered by GSME and GSME Sub and, assuming the due authorization,
execution and delivery thereof by the
other Parties, constitutes the legal and binding obligation of GSME and GSME
Sub, enforceable against them in accordance with its terms, except as may be
limited by bankruptcy, insolvency, reorganization or other similar laws
affecting the enforcement of creditors’ rights generally and by general
principles of equity.

     

    
      
        
        

      

      
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    4.5           No Conflict; Required
Filings and Consents.

     

    (a)           The
execution and delivery of this Agreement by GSME and GSME Sub do not, and the
performance of this Agreement by them shall not,: (i) conflict with or violate
GSME’s or GSME Sub’s Charter Documents, (ii) conflict with or violate any Legal
Requirements, or (iii) result in any breach of or constitute a default (or an
event that with notice or lapse of time or both would become a default) under,
or materially impair GSME’s or GSME Sub’s rights or alter the rights or
obligations of any third party under, or give to others any rights of
termination, amendment, acceleration or cancellation of, or result in the
creation of a Lien on any of the properties or assets of GSME or GSME Sub
pursuant to, any GSME Contracts, except, with respect to clauses (ii) or (iii),
for any such conflicts, violations, breaches, defaults or other occurrences that
would not, individually or in the aggregate, have a Material Adverse Effect on
GSME or GSME Sub.

     

    (b)           The
execution and delivery of this Agreement by GSME and GSME Sub do not, and the
performance of their respective obligations hereunder will not, require any
consent, approval, authorization or permit of, or filing with or notification
to, any Governmental Entity, except (i) for applicable requirements, if any, of
the Securities Act, the Exchange Act, Blue Sky Laws, and the rules and
regulations thereunder, and appropriate documents with the relevant authorities
of other jurisdictions in which GSME is qualified to do business and (ii) where
the failure to obtain such consents, approvals, authorizations or permits, or to
make such filings or notifications, would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect on GSME or GSME Sub, or
prevent consummation of the transactions contemplated by this Agreement or
otherwise prevent the Parties from performing their obligations under this
Agreement.

     

    4.6           Compliance.  GSME
and GSME Sub have complied with, and are not in violation of, any Legal
Requirements with respect to the conduct of their respective business, or the
ownership or operation of such business, except for failures to comply or
violations which, individually or in the aggregate, have not had and are not
reasonably likely to have a Material Adverse Effect on GSME or GSME Sub. The
business and activities of GSME and GSME Sub have not been and are not being
conducted in violation of any Legal Requirements.  Neither GSME nor
GSME Sub is in default or violation of any term, condition or provision of its
Charter Documents.  No written notice of non-compliance with any Legal
Requirements has been received by GSME or GSME Sub.

     

    4.7           SEC Filings; Financial
Statements.

     

    (a)           GSME
has made available to Plastec and the Plastec Shareholders a correct and
complete copy of each report and registration statement filed by GSME (the
“GSME SEC
Reports”) with the SEC, which are all the forms, reports and documents
required to be filed by GSME with the SEC prior to the date of this
Agreement.  All GSME SEC Reports required to be filed
by GSME since its inception were filed in a timely manner in accordance with the
rules and regulations of the SEC.  As of their respective dates GSME
SEC Reports: (i) were prepared in accordance and complied in all material
respects with the requirements of the Securities Act or the Exchange Act, as the
case may be, and the rules and regulations of the SEC thereunder applicable to
such GSME SEC Reports, and (ii) did not at the time they were filed (and if
amended or superseded by a filing prior to the date of this Agreement then on
the date of such filing and as so amended or superseded) contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading. Except to the
extent set forth in the preceding sentence, neither GSME nor GSME Sub makes any
representation or warranty whatsoever concerning any GSME SEC Report as of any
time other than the date or period with respect to which it was
filed.

     

    
      
        
        

      

      
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    (b)           Except
as set forth in Schedule 4.7, each
set of financial statements (including, in each case, any related notes thereto)
contained in any GSME SEC Report, including each GSME SEC Report filed after the
date hereof until the Closing, complied or will comply as to form in all
material respects with the rules and regulations of the SEC with respect
thereto, was or will be prepared in accordance with United States generally
accepted accounting principles (“U.S. GAAP”) applied
on a consistent basis throughout the periods involved (except as may be
indicated in the notes thereto or, in the case of unaudited statements, do not
contain footnotes as permitted by the rules and regulations of the SEC
promulgated under the Exchange Act) and each fairly presents or will fairly
present in all material respects the financial position of GSME at the
respective dates thereof and the results of its operations and cash flows for
the periods indicated, except that the unaudited interim financial statements
were, are or will be subject to normal adjustments which were not or are not
expected to have a Material Adverse Effect on GSME or GSME Sub taken as a
whole.

     

    (c)           GSME
Sub has never made any filing with the SEC and it neither is, nor ever has been,
required to make any such filing.

     

    4.8           No Undisclosed
Liabilities.  GSME and GSME Sub have no liabilities (absolute,
accrued, contingent or otherwise) that are, individually or in the aggregate,
material to the business, results of operations or financial condition of GSME
or GSME Sub, except (i) liabilities provided for in or otherwise disclosed in
GSME SEC Reports filed prior to the date hereof, and (ii) liabilities incurred
since November 25, 2009 in the ordinary course of business, which would not,
individually or in the aggregate, have a Material Adverse Effect on
GSME.  GSME Sub has had no operations or activities except those
incidental to its formation and the transactions contemplated by this
Agreement.

     

    4.9           Absence of Certain Changes
or Events.  Except as set forth in the GSME SEC Reports filed
prior to the date of this Agreement, and except as contemplated by this
Agreement, since November 25, 2009, there has not been: (i) any Material Adverse
Effect on GSME or GSME Sub, (ii) any declaration, setting aside or payment of
any dividend on, or other distribution (whether in cash, stock or property) in
respect of, any of GSME’s or GSME Sub’s capital stock, or any purchase,
redemption or other acquisition by GSME or GSME Sub of any of GSME’s or GSME
Sub’s capital stock or any other securities of GSME or GSME Sub or any options,
warrants, calls or rights to acquire any such shares or other securities, (iii)
any split, combination
or reclassification of any of GSME’s or GSME Sub’s capital stock, (iv) any
granting by GSME or GSME Sub of any increase in compensation or fringe benefits,
except for normal increases of cash compensation in the ordinary course of
business consistent with past practice, or any payment by GSME or GSME Sub of
any bonus, except for bonuses made in the ordinary course of business consistent
with past practice, or any granting by GSME or GSME Sub of any increase in
severance or termination pay or any entry by GSME or GSME Sub into any currently
effective employment, severance, termination or indemnification agreement or any
agreement the benefits of which are contingent or the terms of which are
materially altered upon the occurrence of a transaction involving GSME or GSME
Sub of the nature contemplated hereby, (v) entry by GSME or GSME Sub into any
licensing or other agreement with regard to the acquisition or disposition of
any Intellectual Property other than licenses in the ordinary course of business
consistent with past practice or any amendment or consent with respect to any
licensing agreement filed or required to be filed by GSME or GSME Sub with
respect to any Governmental Entity, (vi) any material change by GSME or GSME Sub
in its accounting methods, principles or practices, except as required by
concurrent changes in U.S. GAAP, (vii) any change in the auditors of GSME or
GSME Sub, (viii) any issuance of capital stock of GSME or GSME Sub, or (ix) any
revaluation by GSME or GSME Sub of any of its assets, including, without
limitation, writing down the value of capitalized inventory or writing off notes
or accounts receivable or any sale of assets of GSME or GSME Sub other than in
the ordinary course of business.

     

    
      
        
        

      

      
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    4.10         Litigation.  There
are no claims, suits, actions or proceedings pending or to GSME’s or GSME Sub’s
Knowledge, threatened against GSME or GSME Sub, before any court, governmental
department, commission, agency, instrumentality or authority, or any arbitrator
that seeks to restrain or enjoin the consummation of the transactions
contemplated by this Agreement or which would reasonably be expected, either
singularly or in the aggregate with all such claims, actions or proceedings, to
have a Material Adverse Effect on GSME or GSME Sub or have a Material Adverse
Effect on the ability of the Parties to consummate the transactions contemplated
by this Agreement.

     

    4.11         Employee Benefit
Plans.  Neither GSME nor GSME Sub maintains, or has any
liability under, any Plan, and neither the execution and delivery of this
Agreement nor the consummation of the transactions contemplated hereby will (i)
result in any payment (including severance, unemployment compensation, golden
parachute, bonus or otherwise) becoming due to any shareholder, director or
employee of GSME or GSME Sub, or (ii) result in the acceleration of the time of
payment or vesting of any such benefits.

     

    4.12         Labor
Matters.  Neither GSME nor GSME Sub is a party to any
collective bargaining agreement or other labor union contract applicable to
persons employed by GSME or GSME Sub and neither GSME nor GSME Sub knows of any
activities or proceedings of any labor union to organize any such
employees.

     

    4.13         Restrictions on Business
Activities.  Since their organization, GSME and GSME Sub have
not conducted any business activities other than activities directed toward the
accomplishment of a business combination.  Except as set forth in
GSME’s or GSME Sub’s Charter Documents, there is no agreement, commitment,
judgment, injunction, order or decree binding upon GSME or GSME Sub or to which
GSME or GSME Sub is a party which has or would
reasonably be expected to have the effect of prohibiting or materially impairing
any business practice of GSME or GSME Sub, any acquisition of property by GSME
or GSME Sub or the conduct of business by GSME or GSME Sub as currently
conducted other than such effects, individually or in the aggregate, which have
not had and would not reasonably be expected to have, a Material Adverse Effect
on GSME or GSME Sub.

     

    
      
        
        

      

      
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    4.14         Title to
Property.  Neither GSME nor GSME Sub owns or leases any real
property or personal property.  There are no options or other
contracts under which GSME or GSME Sub has a right or obligation to acquire or
lease any interest in real property or personal property.

     

    4.15         Taxes.  Except
as set forth in Schedule
4.15:

     

    (a)           GSME
and GSME Sub have timely filed all Returns required to be filed by them with any
Tax authority prior to the date hereof, except such Returns which are not
material to GSME or GSME Sub.  All such Returns are true, correct and
complete in all material respects.  GSME and GSME Sub have paid all
Taxes shown to be due on such Returns.

     

    (b)           All
Taxes that GSME and GSME Sub are required by law to withhold or collect have
been duly withheld or collected, and have been timely paid over to the proper
governmental authorities to the extent due and payable.

     

    (c)           Neither
GSME nor GSME Sub has been delinquent in the payment of any material Tax that
has not been accrued for in GSME’s or GSME Sub’s books and records of account
for the period for which such Tax relates nor is there any material Tax
deficiency outstanding, proposed or assessed against GSME or GSME Sub, nor has
GSME or GSME Sub executed any unexpired waiver of any statute of limitations on
or extending the period for the assessment or collection of any
Tax.

     

    (d)           No
audit or other examination of any Return of GSME or GSME Sub by any Tax
authority is presently in progress, and neither GSME nor GSME Sub has been
notified of any request for such an audit or other examination.

     

    (e)           No
adjustment relating to any Return filed by GSME or GSME Sub has been proposed in
writing, formally or informally, by any Tax authority to GSME, GSME Sub or any
representative of either of them.

     

    (f)           GSME
and GSME Sub have no liability for any material unpaid Taxes which have not been
accrued for or reserved on GSME’s or GSME Sub’s balance sheets included in the
audited financial statements for the most recent fiscal year ended, whether
asserted or unasserted, contingent or otherwise, which are material to GSME or
GSME Sub, other than any liability for unpaid Taxes that may have accrued since
the end of the most recent fiscal year in connection with the operation of the
business of GSME or GSME Sub in the ordinary course of business, none of which
is material to the business, results of operations or financial condition of
GSME or GSME Sub.

     

    (g)           This
Section 4.15 contains the sole and exclusive representations and warranties of
GSME and GSME Sub with respect to any matter relating to Taxes or
Returns.

    4.16     
   Environmental
Matters.  Except for such matters that, individually or in the
aggregate, are not reasonably likely to have a Material Adverse Effect: (i) GSME
and GSME Sub have complied with all applicable Environmental Laws; (ii) GSME and
GSME Sub are not subject to liability for any Hazardous Material disposal or
contamination on any third party property; (iii) GSME and GSME Sub have not been
associated with any release or threat of release of any Hazardous Material; (iv)
GSME and GSME Sub have not received any notice, demand, letter, claim or request
for information alleging that GSME or GSME Sub may be in violation of or liable
under any Environmental Law; and (v) GSME and GSME Sub are not subject to any
orders, decrees, injunctions or other arrangements with any Governmental Entity
or subject to any indemnity or other agreement with any third party relating to
liability under any Environmental Law or relating to Hazardous
Material.

     

    
      
        
        

      

      
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    4.17         Brokers.  Except
as set forth in Schedule 4.17,
neither GSME nor GSME Sub has incurred, nor will either of them incur, directly
or indirectly, any liability for brokerage or finder’s fees or agent’s
commissions or any similar charges in connection with this Agreement or any
transaction contemplated hereby.

     

    4.18         Intellectual
Property.  GSME and GSME Sub do not own, license or otherwise
have any right, title or interest in any material Intellectual Property or
material Registered Intellectual Property.

     

    4.19         Agreements, Contracts and
Commitments.

     

    (a)           Except
as set forth in the GSME SEC Reports filed prior to the date of this Agreement,
and with respect to confidentiality and nondisclosure agreements, there are no
contracts, agreements, leases, mortgages, indentures, notes, bonds, liens,
licenses, permits, franchises, purchase orders, sales orders or other
understandings, commitments or obligations (including without limitation
outstanding offers or proposals) of any kind, whether written or oral, to which
GSME or GSME Sub is a party or by or to which any of the properties or assets of
GSME or GSME Sub may be bound, subject or affected, which either (a) create or
impose a liability greater than twenty-five thousand dollars ($25,000), or (b)
may not be cancelled by GSME or GSME Sub on thirty (30) days’ or less prior
notice (“GSME
Contracts”).  All GSME Contracts are listed in Schedule 4.19 other
than those that are exhibits to GSME SEC Reports.

     

    (b)           Except
as set forth in the GSME SEC Reports filed prior to the date of this Agreement,
each GSME Contract was entered into at arms’ length and in the ordinary course,
is in full force and effect and is valid and binding upon and enforceable
against each of the parties thereto. True, correct and complete copies of all
GSME Contracts (or written summaries in the case of oral GSME Contracts) and of
all outstanding offers or proposals of GSME or GSME Sub have been heretofore
delivered to or otherwise made available to Plastec.

     

    (c)           Neither
GSME, GSME Sub nor, to the Knowledge of GSME or GSME Sub, any other party
thereto is in breach of or in default under, and no event has occurred which
with notice or lapse of time or both would become a breach of or default under,
any GSME Contract, and no party to any GSME Contract has given any written
notice of any claims of any such breaches, defaults or events, which,
individually or in the aggregate, are reasonably likely to have a Material
Adverse Effect on GSME or GSME Sub.  Each agreement, contract or
commitment
to which GSME or GSME Sub is a party or by which it is bound that has not
expired by its terms is in full force and effect, except where such failure to
be in full force and effect is not reasonably likely to have a Material Adverse
Effect on GSME or GSME Sub.

     

    4.20         Insurance.  Except
for directors’ and officers’ liability insurance, neither GSME nor GSME Sub
maintains any Insurance Policies.

     

    
      
        
        

      

      
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    4.21         Interested Party
Transactions.  Except as set forth in the GSME SEC Reports
filed prior to the date of this Agreement: (a) no employee, officer, director or
shareholder of GSME or GSME Sub or a member of his or her immediate family is
indebted to GSME or GSME Sub nor is GSME or GSME Sub indebted (or committed to
make loans or extend or guarantee credit) to any of them, other than
reimbursement for reasonable expenses incurred on behalf of GSME or GSME Sub;
(b) to GSME’s or GSME Sub’s Knowledge, none of such individuals has any direct
or indirect ownership interest in any Person with whom GSME or GSME Sub is
affiliated or with whom GSME or GSME Sub has a material contractual
relationship, or any Person that competes with GSME or GSME Sub, except that
each employee, shareholder, officer or director of GSME or GSME Sub and members
of their respective immediate families may own less than five percent (5%) of
the outstanding stock in publicly traded companies that may compete with GSME or
GSME Sub; and (c) to GSME’s or GSME Sub’s Knowledge, no officer, director or
shareholder or any member of their immediate families is, directly or
indirectly, interested in any material contract with GSME or GSME Sub (other
than such contracts as relate to any such individual’s ownership of capital
stock or other securities of GSME).

     

    4.22         Indebtedness.  Except
as set forth in Schedule 4.22, GSME
and GSME Sub have no indebtedness for borrowed money or owed to any
Affiliate.

     

    4.23         GSME Shares
Listing.  GSME Shares are quoted on the Over-the-Counter
Bulletin Board (“OTC
BB”).  There is no action or proceeding pending or, to GSME's
or GSME Sub’s Knowledge, threatened against GSME by the OTC BB or the Financial
Industry Regulation Authority (“FINRA”) with respect
to any intention by such entities to prohibit or terminate such
quotation.

     

    4.24         Board
Approval.  The Board of Directors of GSME (including any
required committee or subgroup of the Board of Directors of GSME) has, as of the
date of this Agreement, unanimously (i) declared the advisability of the
transactions contemplated by this Agreement and approved this Agreement and the
transactions contemplated hereby, (ii) determined that the transactions
contemplated by this Agreement are in the best interests of the shareholders of
GSME from a financial point of view and (iii) determined that the fair market
enterprise value of Plastec is equal to at least eighty percent (80%) of the
gross offering proceeds raised in GSME’s initial public offering of securities
which occurred in November 2009 (the “IPO”).  The
Board of Directors of GSME, by resolution duly adopted unanimously at a meeting
duly called and held, has duly (i) determined that this Agreement and the
respective transactions contemplated by this Agreement are fair to and in the
best interests of GSME and its shareholders, (ii) approved this Agreement and
the respective transactions contemplated by this Agreement and declared their
advisability, and (iii) recommended that GSME’s shareholders adopt this
Agreement and directed that this Agreement be submitted for consideration by
GSME’s
shareholders at the Special Meeting (as defined in Section 6.1).  The
affirmative vote of the holders of a majority of the GSME Shares issued in
GSME’s IPO that are present and entitled to vote at the Special Meeting is the
only vote of the holders of any class or series of capital stock of GSME
necessary to adopt or approve this Agreement and the respective transactions
contemplated by this Agreement, provided that, in addition to such affirmative
vote, holders of eighty-one percent (81%) or more in interest of the GSME Shares
issued in GSME’s IPO and outstanding immediately before the Closing shall not
have exercised their rights to convert their shares into a pro rata share of the
Trust Fund (as defined in Section 4.25) in accordance with GSME’s Charter
Documents for the transactions contemplated hereby to proceed.

     

    
      
        
        

      

      
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    4.25         Trust
Fund.  As of the date hereof, GSME has no less than thirty-six
million dollars ($36,000,000) invested in a trust account administered by
Continental (the “Trust Fund”);
provided that a portion of the Trust Fund may be utilized in accordance with
Sections 6.14 and 6.18 hereof.

     

    4.26         Governmental
Actions/Filings.  Except as set forth in Schedule 4.26, GSME
and GSME Sub have been granted and hold, and have made, all Governmental
Actions/Filings necessary to the conduct by GSME and GSME Sub of their business
(as presently conducted) or used or held for use by GSME or GSME Sub, and true,
complete and correct copies of which have heretofore been delivered to
Plastec.  Each such Governmental Action/Filing is in full force and
effect and, except as disclosed in Schedule 4.26, will
not expire prior to April 30, 2011, and GSME and GSME Sub are in compliance with
all of their obligations with respect thereto.  No event has occurred
and is continuing which requires or permits, or after notice or lapse of time or
both would require or permit, and consummation of the transactions contemplated
by this Agreement or any ancillary documents will not require or permit (with or
without notice or lapse of time, or both), any modification or termination of
any such Governmental Actions/Filings except such events which, either
individually or in the aggregate, would not have a Material Adverse Effect upon
GSME or GSME Sub.

     

    4.27         Investment Company
Act.  Neither GSME nor GSME Sub is, and neither will be after
the Closing, an “investment company” or a person directly or indirectly
“controlled” by or acting on behalf of an “investment company,” in each case
within the meaning of the Investment Company Act of 1940, as
amended.

     

    4.28         GSME
Sub.  Since the date of its formation, GSME Sub has not carried
on any business or conducted any operations other than the execution of this
Agreement and the performance of its obligations hereunder.  GSME Sub
was formed solely for the consummation of the transactions contemplated
hereby.

     

    4.29         Representations and
Warranties Complete.  To GSME’s Knowledge, the representations
and warranties of GSME and GSME Sub included in this Agreement and any list,
statement, document or information set forth in, or attached to, any Schedule
provided pursuant to this Agreement or delivered hereunder, are true and
complete in all material respects and do not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements contained therein not misleading, under the
circumstances under which they were made.

    4.30         Survival of Representations
and Warranties.  The representations and warranties of GSME and
GSME Sub set forth in this Agreement shall survive until the Closing or such
later date as may be set forth in Section 8.4(a).

     

    
      
        
        

      

      
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    4.31         No Other
Representations.  Except for the representations and warranties
set forth in Article II, subject to the exceptions set forth in the applicable
disclosure schedules, and with respect to each Plastec Shareholder severally and
not jointly, in Article III, subject to the exceptions set forth in the
applicable disclosure schedules, none of the Plastec Shareholders, Plastec
and/or its Subsidiaries, or any other Person on its or any of their behalf,
makes any express or implied representation or warranty with respect to the
Plastec Shareholders, Plastec and/or its Subsidiaries or the transactions
contemplated herein. Notwithstanding any representation made in this Agreement,
none of the Plastec Shareholders, Plastec and/or its Subsidiaries, nor any other
Person on its or their behalf, makes any representation, warranty or covenant of
any kind in respect of future revenues, expenses, expenditures, results of
operations or prospects, or any other projections or other forward-looking
information.

     

    ARTICLE
V

     

    COVENANTS

     

    5.1           Conduct of Business by
Plastec, the Subsidiaries, GSME and GSME Sub.  During the
period from the date of this Agreement and continuing until the earlier of the
termination of this Agreement pursuant to its terms or the later of the
Effective Time or the Closing, each of Plastec, the Subsidiaries, GSME and GSME
Sub shall, except to the extent that the other Parties shall otherwise consent
in writing, carry on its business in the usual, regular and ordinary course
consistent with past practices, in substantially the same manner as heretofore
conducted and in compliance with all applicable laws and regulations (except
where noncompliance would not have a Material Adverse Effect), pay its debts and
taxes when due subject to good faith disputes over such debts or taxes, pay or
perform other material obligations when due, and use its commercially reasonable
efforts consistent with past practices and policies to (i) preserve
substantially intact its present business organization, (ii) keep available the
services of its present officers and employees and (iii) preserve its
relationships with customers, suppliers, distributors, licensors, licensees, and
others with which it has significant business dealings.  In addition,
except as required or permitted by the terms of this Agreement, without the
prior written consent of GSME, with respect to consents given to actions of
Plastec and the Subsidiaries, and Plastec, with respect to consents given to
actions of GSME or GSME Sub, during the period from the date of this Agreement
and continuing until the earlier of the termination of this Agreement pursuant
to its terms or the later of the Effective Time or the Closing, each of Plastec,
the Subsidiaries, GSME and GSME Sub shall not do any of the
following:

     

    (a)           Waive
any stock repurchase rights, accelerate, amend or (except as specifically
provided for herein) change the period of exercisability of options or
restricted stock, or reprice options granted under any employee, consultant,
director or other stock plans or authorize cash payments in exchange for any
options granted under any of such plans;

     

    (b)           Grant
any severance or termination pay to any officer or employee except pursuant to
applicable law, written agreements outstanding, or policies existing on the date
hereof
and as previously or concurrently disclosed in writing or made available to the
other Parties, or adopt any new severance plan, or except as required by
applicable laws, amend or modify or alter in any manner any severance plan,
agreement or arrangement existing on the date hereof;

     

    
      
        
        

      

      
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    (c)           Transfer
or license to any person or otherwise extend, amend or modify any material
rights to any Intellectual Property of Plastec or GSME, as applicable, or enter
into grants to transfer or license to any person future patent rights, other
than in the ordinary course of business consistent with past practices provided
that in no event shall Plastec or GSME license on an exclusive basis or sell any
Intellectual Property of Plastec, or GSME as applicable;

     

    (d)           Except
for special dividends issued, currently declared, declared prior to the Closing
or accrued or payable prior to the Closing by Plastec to the Plastec
Shareholders out of Plastec’s retained earnings of up to an aggregate of fifty
million Hong Kong dollars (HK$50,000,000), declare, set aside or pay any
dividends on or make any other distributions (whether in cash, stock, equity
securities or property) in respect of any capital stock or split, combine or
reclassify any capital stock or issue or authorize the issuance of any other
securities in respect of, in lieu of or in substitution for any capital
stock;

     

    (e)           Except
as set forth in Section 6.18, purchase, redeem or otherwise acquire, directly or
indirectly, any shares of capital stock of Plastec or GSME, as applicable,
including repurchases of unvested shares at cost in connection with the
termination of the relationship with any employee or consultant pursuant to
agreements in effect on the date hereof;

     

    (f)           Issue,
deliver, sell, authorize, pledge or otherwise encumber, or agree to any of the
foregoing with respect to, any shares of capital stock or any securities
convertible into or exchangeable for shares of capital stock, or subscriptions,
rights, warrants or options to acquire any shares of capital stock or any
securities convertible into or exchangeable for shares of capital stock, or
enter into other agreements or commitments of any character obligating it to
issue any such shares or convertible or exchangeable securities;

     

    (g)           Except
as contemplated by this Agreement or as required by applicable law, amend any of
its Charter Documents;

     

    (h)           Acquire
or agree to acquire by merging or consolidating with, or by purchasing any
equity interest in or a portion of the assets of, or by any other manner, any
business or any corporation, partnership, association or other business
organization or division thereof, or otherwise acquire or agree to acquire any
assets which are material, individually or in the aggregate, to the business of
GSME or Plastec as applicable, or enter into any joint ventures, strategic
partnerships or alliances or other arrangements that provide for exclusivity of
territory or otherwise restrict such Party’s ability to compete or to offer or
sell any products or services;

     

    (i)           Sell,
lease, license, encumber or otherwise dispose of any properties or assets,
except (A) sales of inventory in the ordinary course of business consistent with
past practice, and (B) the sale, lease or disposition (other than through
licensing) of property or assets that are not material, individually or in the
aggregate, to the business of such Party;

    (j)           Except
with respect to GSME as permitted by Section 6.13 or in the ordinary course of
business of Plastec or any of the Subsidiaries, incur any indebtedness for
borrowed money in excess of two million dollars ($2,000,000) in the aggregate or
bearing interest at a rate in excess of ten percent (10%) per annum or guarantee
any such indebtedness of another person, issue or sell any debt securities or
options, warrants, calls or other rights to acquire any debt securities of GSME
or Plastec, as applicable, enter into any “keep well” or other agreement to
maintain any financial statement condition or enter into any arrangement having
the economic effect of any of the foregoing;

     

    
      
        
        

      

      
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    (k)           Except
as required by applicable law, adopt or amend any employee benefit plan, policy
or arrangement, any employee stock purchase or employee stock option plan, or
enter into any employment contract or collective bargaining agreement (other
than offer letters and letter agreements entered into in the ordinary course of
business consistent with past practice with employees who are terminable “at
will”), pay any special bonus or special remuneration to any director or
employee, or increase the salaries or wage rates or fringe benefits (including
rights to severance or indemnification) of its directors, officers, employees or
consultants, except in the ordinary course of business consistent with past
practices;

     

    (l)           Pay,
discharge, settle or satisfy any claims, liabilities or obligations (absolute,
accrued, asserted or unasserted, contingent or otherwise), or litigation
(whether or not commenced prior to the date of this Agreement) other than the
payment, discharge, settlement or satisfaction, in the ordinary course of
business consistent with past practices or in accordance with their terms, or
liabilities recognized or disclosed in the most recent financial statements
included in (i) the GSME SEC Reports filed prior to the date of this Agreement
or (ii) Plastec’s financial statements provided to GSME prior to the date of
this Agreement, as applicable, or incurred since the date of such financial
statements, as applicable, or waive the benefits of, agree to modify in any
manner, terminate, release any person from or knowingly fail to enforce any
confidentiality or similar agreement to which Plastec is a party or of which
Plastec is a beneficiary or to which GSME is a party or of which GSME is a
beneficiary, as applicable;

     

    (m)           Except
in the ordinary course of business consistent with past practices, modify, amend
or terminate any Plastec Contract or GSME Contract, as applicable, or waive,
delay the exercise of, release or assign any material rights or claims
thereunder;

     

    (n)           Except
as required by U.S. GAAP or IFRS, as applicable, revalue any of its assets or
make any change in accounting methods, principles or practices;

     

    (o)           Except
in the ordinary course of business consistent with past practices or as provided
for in this Agreement, incur or enter into, (i) with respect to Plastec, any
agreement for financial advisory, investment banking or other similar services,
or, (ii) with respect to Plastec, GSME or GSME Sub, any other agreement,
contract or commitment requiring such Party to pay in excess of fifty thousand
dollars ($50,000) in any twelve (12) month period;

     

    (p)           Settle
any litigation to which a Plastec Insider is a party or where the consideration
given by Plastec is other than monetary;

    (q)           Make
or rescind any Tax elections that, individually or in the aggregate, would be
reasonably likely to adversely affect in any material respect the Tax liability
or Tax attributes of such Party, settle or compromise any material income tax
liability or, except as required by applicable law, materially change any method
of accounting for Tax purposes or prepare or file any Return in a manner
inconsistent with past practice;

     

    (r)           Form,
establish or acquire any subsidiary except as contemplated by this Agreement or
indicated in the Disclosure Schedules;

     

    
      
        
        

      

      
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    (s)           Permit
any Person to exercise any of its discretionary rights under  any Plan
to provide for the automatic acceleration of any outstanding options, the
termination of any outstanding repurchase rights or the termination of any
cancellation rights issued pursuant to such plans;

     

    (t)           Make
material capital expenditures except in accordance with prudent business and
operational practices consistent with past practice;

     

    (u)           Take
or omit to take any action which would be reasonably anticipated to have a
Material Adverse Effect;

     

    (v)           Enter
into any transaction with or distribute or advance any assets or property to any
of its officers, directors, partners, shareholders or other Affiliates other
than the payment of salary and benefits in the ordinary course of business
consistent with past practice;

     

    (w)           Solely
as applied to GSME Sub, carry on any business or conduct any operations other
than in performance of its obligations hereunder; or

     

    (x)           Agree
in writing or otherwise agree, commit or resolve to take any of the actions
described in Section 5.1 (a) through (w) above.

     

    5.2           No Transfer of Plastec
Shares.  Between the date hereof and the later of the Effective
Time and the Closing Date, none of the Plastec Shareholders shall, without the
consent of GSME, Sell (as defined below) any Plastec Shares or any interest
therein.  “Sale” shall mean any
sale, offer, contract to sell, transfer, pledge, hypothecation or other
disposition of, or entrance into any transaction which is designed to, or might
reasonably be expected to, result in the disposition (whether by actual
disposition or effective economic disposition due to cash settlement or
otherwise), directly or indirectly, including the filing (or participation in
the filing) of a registration statement with the United States Securities
Exchange Commission (“SEC”) in respect of,
or establishing or increasing a put equivalent position or liquidating or
decreasing a call equivalent position within the meaning of Section 16 of the
Exchange Act and the rules and regulations of the SEC promulgated thereunder
with respect to, any GSME Shares received on the Closing Date or any Earnout
Shares received pursuant to Section 1.8, but shall not include any transfer (A)
by a partnership transferring such interests owned by it to its partners or
former partners pro rata in accordance with partnership interests, (B) by a
corporation transferring such interests to a wholly owned subsidiary or a parent
corporation that owns all of the capital stock of the transferor, (C) by a
limited liability company transferring such interests to its members or former
members pro rata in accordance with their interest in the limited liability
company, (D) by an individual transferring such interests to such individual’s
family member or trust for the benefit
of such individual or such family member, or (E) of such interests to any
Affiliate of the transferor; provided, that the
transferee in each such case agrees in writing to be subject to the restrictions
applicable to the transferor. Beneficial ownership shall be calculated in
accordance with Rule 13d-3 under the Exchange Act. In connection with this
covenant, GSME may give stop-transfer instructions to its transfer agent
preventing its transfer agent from effecting any actions in violation of this
Agreement through the end of the relevant restriction period. “Sell” shall have a
correlative meaning.

     

    
      
        
        

      

      
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    5.3           Sale
Restriction.

     

    (a)           Subject
to Section 5.3(c) and Section 5.4, each of the Plastec Shareholders agrees to
the following restrictions on the sale of GSME Shares and Earnout Shares that it
receives hereunder:

     

    (i)           For
a period of one hundred and eighty (180) days from the Closing Date, Sun Yip and
Tiger shall not Sell any GSME Shares they receive hereunder; provided, however, that Sun Yip
and Tiger shall be required to hold until April 30, 2013, a minimum of the
lesser of (A) 20% of the outstanding GSME Shares on the Closing Date (after
taking into account all conversions or purchases of GSME Shares in accordance
with Sections 6.14 and 6.18 and the issuance of all GSME Shares constituting the
Merger Consideration, including the Earnout Shares), which amount shall not
exceed 4,349,610 shares (the “Outstanding GSME
Shares”) or (B) the aggregate number of GSME Shares that are actually
delivered to Sun Yip and Tiger pursuant to this Agreement (including any Earnout
Shares);

     

    (ii)          For
a period of one hundred and eighty (180) days from the Closing Date, Cathay
shall not Sell any GSME Shares it receives hereunder. On the one hundred eighty
first (181st) day after the Closing Date through and including the three
hundredth (300th) day after the Closing Date, Cathay shall have the right to
Sell fifty percent (50%) of the GSME Shares it was issued on the Closing Date
under Section 1.3(a)(i). On the date that is three hundred and one (301) days
after the Closing Date, Cathay shall have the right to Sell one hundred percent
(100%) of the GSME Shares it was issued on the Closing Date under Section
1.3(a)(i).  For a period of four hundred and twenty (420) days from
the Closing Date, Cathay shall not Sell any Earnout Shares it is issued under
Section 1.8.  At any point thereafter, Cathay may Sell Earnout Shares
at its discretion.  Notwithstanding the foregoing and to the extent
not already sold, Cathay shall be permitted to Sell up to twenty-five percent
(25%) of the GSME Shares it receives pursuant to this Agreement at any time once
the Average Closing Price (defined in Section 5.3(a)(iv)) of the GSME Shares
equals or exceeds twelve dollars ($12.00) in any continuous thirty (30) trading
day period (“Period”), up to an
additional twenty-five percent (25%) of the GSME Shares it receives pursuant to
this Agreement at any time once the Average Closing Price of the GSME Shares
equals or exceeds fourteen dollars ($14.00) in any Period, with respect to an
additional twenty-five percent (25%) of the GSME Shares it receives pursuant to
this Agreement at any time when the Average Closing Price of the GSME Shares
equals or exceeds sixteen dollars ($16.00) in any Period, and with respect to
the final twenty-five percent (25%) of the GSME Shares it receives pursuant to
this Agreement at any time when the Average Closing Price of the GSME Shares
equals or exceeds twenty dollars ($20.00) in any Period; and

    (iii)         For
a period of one hundred and eighty (180) days from the Closing Date, Expert,
Fine Colour and each Investor shall not Sell any GSME Shares it is issued on the
Closing Date under Section 1.3(a)(i). For a period of one hundred and eighty
(180) days from each date any tranche of Earnout Shares is delivered to Expert,
Fine Colour and each Investor under Section 1.8, such holder shall not Sell such
Earnout Shares.

     

    (iv)        “Average Closing
Price” shall mean the average closing price of GSME Shares on its
principal trading exchange.

     

    
      
        
        

      

      
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    (b)           Certificates
representing GSME Shares issued pursuant to this Agreement shall bear a
prominent legend to the effect of the foregoing provisions of this Section
5.3.

     

    (c)           The
GSME Committee shall have the right, in its sole discretion, to consent, in
writing, to any Sale in excess of the limits set forth in this Section
5.3.  If a Plastec Shareholder desires to Sell GSME Shares in excess
of the amounts set forth above, such Plastec Shareholder shall notify the GSME
Committee in writing of such intent (the “Sale Request”). The
GSME Committee shall respond to such Plastec Shareholder’s Sale Request, in the
affirmative or the negative, within ten (10) Business Days of its receipt of the
Sale Request.

     

    5.4           Transfer
Restrictions.  Any offers and Sales of the GSME Shares or
Earnout Shares by the Plastec Shareholders will be made only pursuant to a
registration of GSME Shares or Earnout Shares under the Securities Act and any
other applicable laws or pursuant to an exemption from such registration
requirements. Any transfer pursuant to a registration exemption will be made
only after delivery to GSME of an opinion of counsel, reasonably satisfactory to
GSME, that the transaction is exempt from such registration requirements and
otherwise in accordance with the legend on such certificate.

     

    5.5           Legend.  Each
Plastec Shareholder agrees that in addition to the legend required pursuant to
Section 5.3(b), the certificates representing the GSME Shares and the Earnout
Shares issued pursuant to this Agreement shall contain a legend to the following
effect:

     

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER
APPLICABLE STATE OR OTHER SECURITIES LAWS AND NEITHER SUCH SECURITIES NOR ANY
INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE
TRANSFERRED EXCEPT (1) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS OR (2) PURSUANT TO AN
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
OTHER APPLICABLE SECURITIES LAWS, IN WHICH CASE THE HOLDER MUST, PRIOR TO SUCH
TRANSFER, FURNISH TO PLASTEC AN OPINION OF COUNSEL, WHICH COUNSEL AND OPINION
ARE REASONABLY SATISFACTORY TO PLASTEC, THAT SUCH SECURITIES MAY BE OFFERED,
SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED IN THE MANNER CONTEMPLATED
PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER OR AN AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS. HEDGING
TRANSACTIONS INVOLVING THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE
CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.

     

    
      
        
        

      

      
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    ARTICLE
VI

     

    ADDITIONAL COVENANTS OF THE
PARTIES

     

    6.1           Proxy Statement; Special
Meeting.

     

    (a)           As
soon as is reasonably practicable after the date hereof, Plastec shall deliver
to GSME audited consolidated financial statements (including any related notes
thereto) of Plastec for the Fiscal Year ended April 30, 2010 (the “2010 Audited Financial
Statements”).  As soon as is reasonably practicable after
receipt by GSME from Plastec of all financial (including the 2010 Audited
Financial Statements) and other information relating to Plastec as GSME may
reasonably request for its preparation, GSME shall prepare proxy materials for
the purpose of soliciting proxies from holders of GSME Shares to vote, at a
meeting of holders of GSME Shares to be called and held for such purpose (the
“Special
Meeting”), in favor of (i) the approval of the Merger and the
transactions contemplated by this Agreement (the “GSME Shareholder
Approval”),  (ii) the change of the name of GSME to a name
mutually agreed upon by GSME and Plastec, (iii) an increase in the number of
authorized ordinary GSME Shares to one hundred million (100,000,000) and (iv) an
adjournment of the Special Meeting if, at the time it is called to order, there
are insufficient votes to obtain GSME Shareholder Approval or the holders of
eighty-one percent (81%) or more in interest of the GSME Shares issued in GSME’s
IPO and outstanding immediately before the Closing shall have exercised their
rights to convert their shares into a pro rata share of the Trust Fund in
accordance with GSME’s Charter Documents.  Such proxy materials shall
be in the form of a proxy statement to be used for the purpose of soliciting
such proxies from holders of GSME Shares for the matters to be acted upon at the
Special Meeting (the “Proxy
Statement”).  Plastec shall furnish to GSME all information
concerning Plastec as GSME may reasonably request in connection with the
preparation of the Proxy Statement.  Plastec and its counsel shall be
given a reasonable opportunity to review and comment on such proxy materials
prior to their distribution to GSME’s shareholders and GSME will not distribute
any documents containing information that Plastec has reasonably determined is
incorrect or misleading and notified GSME in writing thereof.

     

    (b)           As
soon as practicable following the preparation of the definitive Proxy Statement,
GSME shall distribute the Proxy Statement to the holders of GSME Shares and,
pursuant thereto, shall call the Special Meeting in accordance with the
Companies Law (Revised) of the Cayman Islands (the “Companies Law”) and
GSME’s Charter Documents and, subject to the other provisions of this Agreement,
solicit proxies from such holders to vote in favor of the approval of the Merger
and the other transactions contemplated by this Agreement and the other matters
presented for approval or adoption at the Special Meeting.

    
      
         

      

      
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    (c)           GSME
shall use its best efforts to ensure that the Proxy Statement (i) includes the
information GSME believes would have been required to be provided to
shareholders had GSME not been a “foreign private issuer” (as defined in the
Exchange Act) but still had a class of equity securities registered under
Section 12 of the Exchange Act and (ii) complies with all applicable provisions
of the Companies Law and GSME’s Charter Documents in the preparation, filing and
distribution of the Proxy Statement, the solicitation of proxies thereunder, and
the calling and holding of the Special Meeting.  Without limiting the
foregoing, GSME shall ensure that the Proxy Statement does not, as of the date
on which the Proxy Statement is first distributed to the shareholders of GSME,
and as of the date of the Special Meeting, contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the
statements made, in light of the circumstances under which they were made, not
misleading (provided that GSME shall not be responsible for the accuracy or
completeness of any information relating to Plastec or any other information
furnished by Plastec for inclusion in the Proxy Statement).  Plastec
represents and warrants that so long as GSME is in compliance with the terms of
this Section 6.1, the information relating to Plastec supplied by Plastec for
inclusion in the Proxy Statement will not, as of the date on which the Proxy
Statement is first distributed to the shareholders of GSME or at the time of the
Special Meeting, contain any statement which, at such time and in light of the
circumstances under which it is made, is false or misleading with respect to any
material fact, or omits to state any material fact required to be stated therein
or necessary in order to make the statement therein not false or
misleading.

     

    (d)           GSME,
acting through its Board of Directors, shall include in the Proxy Statement the
unanimous recommendation of its Board of Directors that the holders of GSME
Shares vote in favor of the approval of the transactions contemplated by this
Agreement, and shall otherwise use reasonable best efforts to obtain the GSME
Shareholder Approval.

     

    (e)           Plastec
and each of the Plastec Shareholders shall cooperate with GSME and use
commercially reasonable efforts to provide all information reasonably requested
by GSME in connection with any application or other filing made to secure
listing for trading or quotation of GSME’s securities on the Nasdaq Stock
Market, the NYSE Amex LLC or another national securities exchange following the
Effective Time.

     

    6.2           Public
Disclosure.  From the date of this Agreement until (a) the
later of (x) the Closing or (y) the Effective Time or (b) the termination of
this Agreement, the Parties shall cooperate in good faith to jointly prepare all
press releases and public announcements pertaining to this Agreement and the
transactions governed by it, and no Party shall issue or otherwise make any
public announcement or communication pertaining to this Agreement or the Merger
without the prior consent of GSME (in the case of Plastec and the Plastec
Shareholders) or Plastec (in the case of GSME or GSME Sub), except as required
by any legal requirement or by the rules and regulations of, or pursuant to any
agreement of, a stock exchange or trading system.  Each Party will not
unreasonably delay, withhold or condition approval from the others with respect
to any press release or public announcement.  If any Party determines
with the advice of counsel that it is required to make this Agreement and the
terms of the transaction public or otherwise issue a press release or make
public disclosure with respect thereto, it shall, at a reasonable time before
making any public disclosure, consult with the other Parties regarding such
disclosure, seek such confidential treatment for such terms or portions of this
Agreement or the transaction as may be reasonably requested by the other Parties
and disclose only such information as is legally compelled
to be disclosed.  This provision will not apply to communications by
any Party to its counsel, accountants and other professional
advisors.

     

    
      
        
        

      

      
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    6.3           Other
Actions.

     

    (a)           As
promptly as practicable after execution of this Agreement, GSME will prepare and
file with the SEC a Report of Foreign Private Issuer on Form 6-K pursuant to the
Exchange Act to report the execution of this Agreement (“Signing Form 6-K”),
which Plastec shall have the right and reasonable opportunity to review and
comment upon prior to filing.  Any language included in such Signing
Form 6-K that reflects Plastec’s comments, as well as any text as to which
Plastec has not commented upon being given a reasonable opportunity to comment,
shall, notwithstanding the provisions of this Section 6.3, be deemed to have
been approved by Plastec and may henceforth be used by GSME in other filings
made by it with the Commission and in other documents distributed by GSME in
connection with the transactions contemplated by this Agreement without further
review or consent of Plastec.  Promptly after the execution of this
Agreement, GSME and Plastec shall also issue a press release announcing the
execution of this Agreement (“Signing Press
Release”).

     

    (b)           At
least five (5) days prior to Closing, GSME shall prepare a draft Form 20-F
announcing the Closing, together with, or incorporating by reference, the
financial statements prepared by Plastec and its accountant, and such other
information that may be required to be disclosed with respect to the
transactions contemplated herein in any report or form to be filed with the SEC
(“Closing
Report”), which shall be in a form reasonably acceptable to
Plastec.  Prior to Closing, GSME and Plastec shall prepare the press
release announcing the consummation of the transactions contemplated by this
Agreement (“Closing
Press Release”).  Concurrently with the Closing, GSME shall
distribute the Closing Press Release.  Concurrently with the Closing,
or as soon as practicable thereafter, GSME shall file the Closing Report with
the SEC.

     

    6.4           Required
Information.  In connection with the preparation of the Signing
Form 6-K, the Signing Press Release, the Closing Report and the Closing Press
Release, or any other statement, filing, notice or application made by or on
behalf of GSME, GSME Sub and/or Plastec to any third party and/or any
Governmental Entity in connection with the transactions contemplated by this
Agreement, and for such other reasonable purposes, GSME, GSME Sub and Plastec
each shall, upon request by any other of them, use commercially reasonable
efforts to furnish the others with all information concerning themselves, their
respective directors, officers and shareholders (including the directors of GSME
and Plastec to be elected effective as of the Closing pursuant to Section 1.6)
and such other matters as may be reasonably necessary or advisable in connection
with the transactions contemplated by this Agreement.   Each of
GSME, GSME Sub and Plastec represents and warrants to each other that all such
information shall be true and correct in all material respects and will not
contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements contained
therein, in light of the circumstances under which they are made, not
misleading.

    6.5           Confidentiality; Access to
Information.

     

    (a)           Confidentiality.  Any
confidentiality agreement previously executed by the Parties shall be superseded
in its entirety by the provisions of this Agreement.  Each Party
agrees to maintain in confidence any non-public information received from any
other Party, and to use such non-public information only for purposes of
consummating the transactions contemplated by this Agreement.  Such
confidentiality obligations will not apply to (i) information which was known to
the one Party or its respective agents prior to receipt from any other Party;
(ii) information which is or becomes generally known without the breach of this
Section 6.5 by any Party; (iii) information acquired by a Party or its
respective agents from a third party who was not bound to an obligation of
confidentiality; and (iv) disclosure required by law.   In the
event this Agreement is terminated as provided in Article IX hereof, each Party
(i) will destroy or return or cause to be returned to the relevant Parties all
documents and other material obtained from such Parties in connection with the
transactions contemplated by this Agreement, and (ii) will use its reasonable
best efforts to delete from its computer systems all documents and other
material obtained from the relevant Parties in connection with the transactions
contemplated by this Agreement.

     

    
      
        
        

      

      
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    (b)           Access to
Information.

     

    (i)           Plastec
will afford GSME and its financial advisors, accountants, counsel and other
representatives reasonable access during normal business hours, upon reasonable
notice, to the properties, books, records and personnel of Plastec during the
period prior to the Closing to obtain all information concerning the business,
including the status of product development efforts, properties, results of
operations and personnel of Plastec, as GSME may reasonably
request.  No information or knowledge obtained by GSME in any
investigation pursuant to this Section 6.5 will affect or be deemed to modify
any representation or warranty contained herein or the conditions to the
obligations of the Parties to consummate the transactions contemplated by this
Agreement.

     

    (ii)           GSME
will afford Plastec and its financial advisors, underwriters, accountants,
counsel and other representatives reasonable access during normal business
hours, upon reasonable notice, to the properties, books, records and personnel
of GSME and GSME Sub during the period prior to the Closing to obtain all
information concerning the business, including the status of business or product
development efforts, properties, results of operations and personnel of GSME and
GSME Sub, as Plastec may reasonably request.  No information or
knowledge obtained by Plastec in any investigation pursuant to this Section 6.5
will affect or be deemed to modify any representation or warranty contained
herein or the conditions to the obligations of the Parties to consummate the
transactions contemplated by this Agreement.

     

    6.6           Commercially Reasonable
Efforts.  Upon the terms and subject to the conditions set
forth in this Agreement, each of the Parties agrees to use its commercially
reasonable efforts to take, or cause to be taken, all actions, and to do, or
cause to be done, and to assist and cooperate with the other Parties in doing,
all things necessary, proper or advisable to consummate and make effective, in
the most expeditious manner practicable, the transactions contemplated by this
Agreement, including using commercially reasonable efforts to accomplish the
following: (i) the taking of all reasonable acts necessary to cause the
conditions to the transaction
set forth in Article VII to be satisfied, (ii) the obtaining of all necessary
actions, waivers, consents, approvals, orders and authorizations from
Governmental Entities and the making of all necessary registrations,
declarations and filings (including registrations, declarations and filings with
Governmental Entities, if any) and the taking of all reasonable steps as may be
necessary to avoid any suit, claim, action, investigation or proceeding by any
Governmental Entity, (iii) the obtaining of all consents, approvals or waivers
from third parties required as a result of the transactions contemplated in this
Agreement, including without limitation the consents referred to in Schedule 2.5 of the
Plastec Schedule, (iv) the defending of any suits, claims, actions,
investigations or proceedings, whether judicial or administrative, challenging
this Agreement or the consummation of the transactions contemplated hereby,
including seeking to have any stay or temporary restraining order entered by any
court or other Governmental Entity vacated or reversed and (v) the execution or
delivery of any additional instruments reasonably necessary to consummate the
transactions contemplated by, and to fully carry out the purposes of, this
Agreement.  This obligation shall include, on the part of GSME,
sending a termination letter to Continental in substantially the form of the
exhibit attached to the Investment Management Trust Account Agreement by and
between GSME and Continental dated as of November 19, 2009.   In
connection therewith and without limiting the foregoing, GSME and its Board of
Directors and Plastec and its Board of Directors shall, if any takeover statute
or similar statute or regulation is or becomes applicable to this Agreement or
any of the transactions contemplated by this Agreement, use their commercially
reasonable efforts to enable the transactions contemplated by this Agreement to
be consummated as promptly as practicable on the terms contemplated by this
Agreement.  Notwithstanding anything herein to the contrary, nothing
in this Agreement shall be deemed to require GSME or Plastec to agree to any
divestiture by itself or any of its Affiliates of shares of capital stock or of
any business, assets or property, or the imposition of any material limitation
on the ability of any of them to conduct their business or to own or exercise
control of such stock, assets or properties.

     

    
      
        
        

      

      
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    6.7           No Securities
Transactions.  Neither Plastec nor any of the Plastec
Shareholders or any of their respective Affiliates shall, directly or
indirectly, engage in any transactions involving the securities of GSME prior to
the time of the making of a public announcement of the transactions contemplated
by this Agreement.  Plastec shall use its best efforts to require each
of its officers, directors, employees, agents and representatives to comply with
the foregoing requirement.

     

    6.8           No Claim Against Trust
Fund.  Notwithstanding anything else in this Agreement, Plastec
and each of the Plastec Shareholders acknowledge that they have read GSME’s
final prospectus dated November 19, 2009 and understand that GSME has
established the Trust Fund, and may draw upon a letter of credit to be provided
by Cohen & Company (“L/C”), each for the
benefit of GSME’s public shareholders and that GSME may disburse monies from (X)
the Trust Fund only (i) to the public shareholders in the event they elect to
convert their shares in accordance with GSME’s Charter Documents, (ii) to GSME’s
public shareholders upon GSME’s liquidation if GSME fails to consummate a
business combination or (iii) to GSME after, or concurrently with, the
consummation of a business combination and (Y) the L/C to certain shareholders
that vote in favor of any proposed business combination.  Plastec and
each of the Plastec Shareholders, for itself and its subsidiaries, directors,
officers, employees, shareholders, representatives, advisors and all other
associates and Affiliates, hereby waives all rights, title, interest or claim of
any kind against GSME to collect from the Trust Fund or the L/C any monies
that may
be owed to it by GSME for any reason whatsoever, including but not limited to a
breach of this Agreement by GSME or any negotiations, agreements or
understandings with GSME (whether in the past, present or future), and will not
seek recourse against the Trust Fund or the L/C at any time for any reason
whatsoever.  This paragraph will survive this Agreement and will not
expire and will not be altered in any way without the express written consent of
GSME, Plastec and each of the Plastec Shareholders.

     

    
      
        
        

      

      
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    6.9           Disclosure of Certain
Matters.  Each of GSME, GSME Sub, Plastec and each of the
Plastec Shareholders will provide the others with prompt written notice of any
event, development or condition that (a) would cause any of such Party’s
representations and warranties to become untrue or misleading or which may
affect its ability to consummate the transactions contemplated by this
Agreement, (b) had it existed or been known on the date hereof would have been
required to be disclosed under this Agreement, (c) gives such Party any reason
to believe that any of the conditions set forth in Article VII will not be
satisfied, (d) is of a nature that would be reasonably likely to have a Material
Adverse Effect on Plastec, or (e) would require any amendment or supplement to
the Proxy Statement.  The Parties shall have the obligation to
supplement or amend the Plastec Schedule, the Plastec Shareholders Schedule and
GSME Schedule (the “Disclosure
Schedules”) being delivered concurrently with the execution of this
Agreement and annexed hereto with respect to any matter hereafter arising or
discovered which, if existing or known at the date of this Agreement, would have
been required to be set forth or described in the Disclosure Schedules. The
obligations of the Parties to amend or supplement the Disclosure Schedules being
delivered herewith shall terminate on the Closing
Date.  Notwithstanding any such amendment or supplementation, for
purposes of Sections 7.2(a), 7.3(a), 8.1(a)(i), 9.1(d) and 9.1(e), the
representations and warranties of the Parties shall be made with reference to
the Disclosure Schedules as they exist at the time of execution of this
Agreement, subject to changes expressly contemplated by this Agreement or which
are set forth in the Disclosure Schedules as they exist on the date of this
Agreement.

     

    6.10         Certain
Claims.  As additional consideration for the payment of the
Merger Consideration pursuant to this Agreement, each of the Plastec
Shareholders hereby releases and forever discharges, effective as of the Closing
Date, Plastec and each of its directors, officers, employees and agents, from
any and all rights, claims, demands, judgments, obligations, liabilities and
damages, whether accrued or unaccrued, asserted or unasserted, and whether known
or unknown arising out of or resulting from such Plastec Shareholder’s status as
a holder of equity securities of Plastec.

     

    6.11         Certain Financial
Information.  Within sixty (60) Business Days after the end of
each fiscal quarter between the date hereof and the earlier of the Closing Date
and the date on which this Agreement is terminated, Plastec shall deliver to
GSME unaudited consolidated financial statements of Plastec for such quarter,
including a balance sheet and a statement of operations, that are certified as
correct and complete by the Chief Executive Officer and Chief Financial Officer
of Plastec, prepared in accordance with IFRS applied on a consistent basis to
prior periods (except as may be indicated in the notes thereto) and fairly
present in all material respects the financial position of Plastec at the date
thereof and the results of its operations for the period indicated, except that
such statements need not contain notes and may be subject to normal adjustments
that are not expected to have a Material Adverse Effect on
Plastec.

    6.12         Access to Financial
Information.  Plastec will, and will cause its auditors to, (a)
continue to provide GSME and its advisors full access to all of Plastec’s
financial information used in the preparation of its Financial Statements and
the financial information furnished pursuant to Section 6.11 and (b) use
commercially reasonable efforts to cooperate with any reviews performed by GSME
or its advisors of any such financial statements or information.

     

    
      
        
        

      

      
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    6.13         GSME
Borrowings.  Through the Closing, GSME shall be allowed to
borrow funds from its directors, officers and/or shareholders to meet its
reasonable operating expenses, with any such loans to be made only as reasonably
required by the operation of GSME in due course and repayable at Closing. The
proceeds of such loans shall not be disbursed to or otherwise used for the
payment of salaries, bonuses or other compensation to any of GSME’s directors,
officers or shareholders or any of their respective Affiliates.  GSME
shall within two (2) Business Days prior to the Closing (or promptly if there
are less than two (2) Business Days prior to the Closing), provide Plastec and
the Plastec Shareholders with notice and copies (if written) of any such
loan.  Such notice shall include the amount and terms of, and the use
of, any such loan.

     

    6.14         Trust Fund
Disbursement.  Within two (2) Business Days from the Closing
(or promptly if there are less than two (2) Business Days prior to the Closing),
GSME shall disclose to Plastec all liabilities and obligations of GSME due and
owing or incurred at or prior to the Closing that are to be paid from the Trust
Fund immediately upon Closing, including all amounts payable (i) in connection
with any of the arrangements or transactions contemplated by Section 6.18
(including all costs and expenses in connection therewith), (ii) as deferred
underwriters’ compensation in connection with GSME’s IPO, (iii) for income tax
or other tax obligations of GSME prior to Closing, (iv) as repayment of loans
and reimbursement of expenses to directors, officers and founding shareholders
of GSME, (v) to third parties (e.g., professionals, printers, etc.) who have
rendered services to GSME in connection with its operations and efforts to
effect a business combination, including the transactions contemplated by this
Agreement and (vi) to shareholders who elect to have their shares converted to
cash in accordance with the provisions of GSME’s Charter
Documents.  The balance, if any, shall be released to
GSME.  If and only if the Closing occurs, to the extent the funds in
the Trust Fund are insufficient to pay all outstanding deferred liabilities of
GSME, Plastec shall pay such remaining expenses on behalf of GSME upon the
Closing, up to a maximum of one million one hundred thousand dollars
($1,100,000) for professional services such as accounting or legal fees, five
hundred thousand dollars ($500,000) for advisory fees and up to one million four
hundred forty thousand dollars ($1,440,000) for underwriting discounts and
commissions.

     

    6.15         Financial Advisory
Agreements.  GSME shall cause all agreements for financial
advisory, investment banking and other similar services to which it is a party
to be terminated no later than the Closing with no obligations of GSME, GSME Sub
or Merged Plastec thereunder to remain in effect after the Closing.

     

    6.16         Employment
Agreements.  As soon as practicable after the execution of
this Agreement, GSME shall execute employment agreements mutually acceptable to
Plastec and GSME to be effective upon the Closing with each of the executives
and employees of Plastec listed in Schedule 1.6
(collectively, the “Employment
Agreements”).

    6.17         Investor Relations
Team.  As soon as practicable after the Closing, Plastec shall
hire suitable experienced persons mutually satisfactory to both GSME and Plastec
to comprise an internal public relations team for Plastec and GSME.

     

    6.18         Certain Actions with Respect
to GSME Securities.  Notwithstanding anything to the contrary
contained in this Agreement, from and after the date of this Agreement until the
Closing, for purposes of enhancing the likelihood of and securing GSME
Shareholder Approval, GSME and its Affiliates may, and shall be permitted to,
seek, negotiate and enter into arrangements for the purchase, redemption, tender
or assignment of currently outstanding securities of GSME or enter into similar
or related arrangements and engage in related undertakings that would be
consummated at, prior to or immediately following Closing and which may utilize
a portion of the funds in the Trust Fund.  GSME may secure a bridge
loan or loans or similar credit facilities to finance the foregoing activities,
in which case GSME’s obligations under such facilities shall be repaid at
Closing from amounts in the Trust Fund.  GSME shall promptly provide
Plastec with notice and copies (if written) of any such arrangements,
undertakings, loans and credit facilities.

     

    
      
        
        

      

      
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    6.19         Securities
Listing.  GSME and Plastec shall use commercially reasonable
efforts to obtain the listing of GSME’s securities on the Nasdaq Stock Market,
the NYSE Amex or another national securities exchange mutually agreed upon by
the Parties.  If any such listing is not obtained by the Closing Date,
GSME and Merged Plastec shall continue to use their commercially reasonable
efforts after the Effective Time to obtain such listing.

     

    6.20         Equity Incentive
Plan.  After the Effective Time, GSME will adopt an equity
incentive plan, subject to approval of GSME’s shareholders, covering a number of
shares customary for similar companies that complies with all necessary Cayman
Islands law and SEC regulations and provides for a pool from which GSME may
grant equity awards (including stock options and restricted stock) to all
employees, officers, directors and consultants of GSME and its Subsidiaries,
including Merged Plastec.

     

    6.21         Charter Protections;
Directors’ and Officers’ Liability Insurance.

     

    (a)           All
rights to indemnification for acts or omissions occurring through the Closing
Date now existing in favor of the current directors and officers of GSME as
provided in the Charter Documents of GSME or in any indemnification agreements
shall survive the Closing and shall continue in full force and effect in
accordance with their terms.

     

    (b)           For
a period of six (6) years after the Closing Date, GSME shall cause to be
maintained in effect the current policies of directors’ and officers’ liability
insurance maintained by GSME (or policies of at least the same coverage and
amounts containing terms and conditions which are no less advantageous), with
respect to claims arising from facts and events that occurred prior to the
Closing Date.

     

    (c)           If
GSME or any of its successors or assigns (i) consolidates with or merges into
any other Person and shall not be the continuing or surviving entity of such
consolidation or merger, or (ii) transfers or conveys all or substantially all
of its properties and assets to any Person, then, in each such case, to the
extent necessary, proper provision shall be made so
that the successors and assigns of GSME assume the obligations set forth in this
Section 6.21.

     

    (d)           The
provisions of this Section 6.21 are intended to be for the benefit of, and shall
be enforceable by, each Person who will have been a director or officer of GSME
for all periods ending on or before the Closing Date and may not be changed
without the consent of the Person who served as the GSME Committee.

     

    
      
        
        

      

      
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    6.22         Registration Rights
Agreement.  The Parties hereto agree to enter into a
registration rights agreement (the “Registration Rights
Agreement”) at the Closing pursuant to which GSME will agree to register
for resale under applicable United States securities laws the GSME
Shares, including the Earnout Shares, issued, or scheduled to be issued, to
the Plastec Shareholders pursuant to the terms of this Agreement in accordance
with the terms of the Registration Rights Agreement.  The rights granted
under the Registration Rights Agreement shall (a) include each of the rights
granted to those Persons who were shareholders of GSME immediately prior to
GSME’s IPO (the “Original GSME
Shareholders”) pursuant to that certain Registration Rights Agreement
between GSME and the Original GSME Shareholders dated November 19, 2009 (the
“Existing Registration
Rights Agreement”) and (b) be no less favorable and no more
favorable to the Plastec Shareholders than the registration rights granted to
the Original GSME Shareholders.  The Registration Rights Agreement may be
in the form of an amendment to the Existing Registration Rights Agreement making
the Plastec Shareholders party thereto.

     

    6.23         Tax
Treatment.  For U.S. federal income tax purposes, the Merger is
intended to be a reorganization within the meaning of Section 368(a) of the U.S.
Internal Revenue Code of 1986 (the “Code”), and this
Agreement is intended to be a “plan of reorganization” within the meaning of the
regulations promulgated under Section 368(a) of the Code and for the purpose of
qualifying the Merger as a Tax-free transaction for U.S. federal income Tax
purposes. Each of the Parties shall use commercially reasonable efforts to cause
the Merger to qualify as a “reorganization” under the provisions of Section
368(a) of the Code and will not take any action inconsistent with the Merger
qualifying as a reorganization under Section 368(a) of the Code. Each of GSME
and Plastec covenants and agrees to use its commercially reasonable efforts to
defend in good faith all challenges to the treatment of the Merger as a
reorganization as described in this Section 6.23, and none of the Parties will
take or cause to be taken any action which would prevent the transactions
contemplated by this Agreement from qualifying as a reorganization under Section
368(a). Each of GSME and Plastec agree that if such Party becomes aware of any
fact or circumstance that is reasonably likely to prevent the Merger from
qualifying as a reorganization described in Section 368(a) of the Code, it will
promptly notify the other Parties in writing of such fact or circumstance. If
applicable, each of GSME and Plastec will comply with all reporting and
record-keeping obligations set forth in the Code and the U.S. Department of
Treasury regulations that are consistent with the Merger qualifying as a
“reorganization” under the provisions of Section 368(a) of the Code.
Notwithstanding the foregoing or anything else to the contrary contained in this
Agreement, the Parties acknowledge and agree that no Party is making any
representation or warranty as to the qualification of the Merger as a
reorganization under Section 368 of the Code or as to the effect, if any, that
any transaction consummated prior to the Closing Date has or may have on any
such reorganization status. The Parties acknowledge and agree that each: (i) has
had the opportunity to obtain independent
legal and Tax advice with respect to the transaction contemplated by this
Agreement, and (ii) is responsible for paying its own Taxes, including without
limitation, any adverse Tax consequences that may result if the transaction
contemplated by this Agreement is not determined to qualify as a reorganization
under Section 368 of the Code.

     

    6.24         Continuing
Business.  For a period of one (1) year from the Effective
Time, GSME will continue at least one (1) significant historic business line of
Plastec, or use at least a significant portion of Plastec’s historic business
assets in a business, each within the meaning of U.S. Department of Treasury
Regulation 1.368-1(d).

     

    
      
        
        

      

      
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    6.25         Fiscal Year
End.  On or prior to the Closing, GSME shall change its fiscal
year end to April 30.

     

    6.26         2010 Audited Financial
Statements.  Plastec shall use
commercially reasonable efforts to deliver to GSME the 2010 Audited Financial
Statements on or prior to September 15, 2010, subject to the ability of Grant
Thornton to deliver its audit report on the 2010 Audited Financial Statements on
or prior to such date.  The 2010 Audited Financial Statements shall be
audited by Grant Thornton and shall comply with IFRS.

     

    6.27         Termination of Shareholders
Agreements.  Plastec and the Plastec Shareholders shall use
commercially reasonable efforts to cause the termination, effective as of the
Effective Time, of (a) the Subscription and Shareholders’ Agreement, dated as of
October 28, 2005, relating to Plastec among Plastec and certain of the Plastec
Shareholders (the “2005 Shareholder
Agreement”), and (b) any other voting or shareholder agreements involving
Plastec under which any of the Plastec Shareholders or any other person has the
right to vote, purchase or subscribe for shares of Plastec or any of the
Subsidiaries (“Other
Shareholder Agreements” and together with the 2005 Shareholder Agreement,
the “Shareholder
Agreements”), in each case without payment of any kind of consideration
except as contemplated by this Agreement.

     

    ARTICLE
VII

     

    CONDITIONS TO THE
TRANSACTION

     

    7.1           Conditions to Obligations of
Each Party.  The respective obligations of each Party to effect
the transactions contemplated by this Agreement shall be subject to the
satisfaction on or prior to the Closing Date of the following
conditions:

     

    (a)           GSME Shareholder
Approval.  GSME Shareholder Approval shall have been obtained
by the requisite vote under the law of the Cayman Islands and GSME’s Charter
Documents by May 25, 2011.

     

    (b)           Conversion of GSME
Shares.  Holders of fewer than eighty-one percent (81%) in
interest of the GSME Shares issued in GSME’s IPO and outstanding immediately
before the Closing shall have exercised their rights to convert their shares
into a pro rata share of the Trust Fund in accordance with GSME’s Charter
Documents.

     

    (c)           No
Order.  No Governmental Entity shall have enacted, issued,
promulgated, enforced or entered any statute, rule, regulation, executive order,
decree, injunction or other
order (whether temporary, preliminary or permanent) which is in effect and which
has the effect of making the transactions contemplated by this Agreement illegal
or otherwise prohibiting consummation of such transactions, substantially on the
terms contemplated by this Agreement.

     

    7.2           Additional Conditions to
Obligations of Plastec and the Plastec Shareholders.  The
obligations of Plastec and the Plastec Shareholders to consummate and effect the
transactions contemplated by this Agreement shall be subject to the satisfaction
at or prior to the Closing Date of each of the following conditions, any of
which may be waived by a writing executed by Plastec:

     

    
      
        
        

      

      
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    (a)           Representations and
Warranties.  Each representation and warranty of GSME and GSME
Sub contained in this Agreement that is (i) qualified as to materiality shall
have been true and correct (A) as of the date of this Agreement and (B) subject
to the provisions of the last sentence of Section 6.9, on and as of the Closing
Date, with the same force and effect as if made on the Closing Date and (ii) not
qualified as to materiality shall have been true and correct (A) as of the date
of this Agreement and (B) subject to the provisions of the last sentence of
Section 6.9, on and as of the Closing Date in all material respects, with the
same force and effect as if made on the Closing Date. Plastec shall have
received a certificate with respect to the foregoing signed on behalf of GSME by
an authorized officer of GSME and GSME Sub (the “GSME Closing
Certificate”).

     

    (b)           Agreements and
Covenants.  GSME and GSME Sub shall have performed or complied
with all agreements and covenants required by this Agreement to be performed or
complied with by them on or before the Closing Date, except to the extent that
any failure to perform or comply (other than a willful failure to perform or
comply or failure to perform or comply with an agreement or covenant reasonably
within the control of GSME) does not, or will not, constitute a Material Adverse
Effect with respect to GSME or GSME Sub, and the GSME Closing Certificate shall
include a provision to such effect.

     

    (c)           No
Litigation.  No action, suit or proceeding against GSME or GSME
Sub shall be pending or threatened before any Governmental Entity which is (i)
reasonably likely to prevent consummation of any of the transactions
contemplated by this Agreement, (ii) reasonably likely to cause any of the
transactions contemplated by this Agreement to be rescinded following
consummation, (iii) reasonably likely to affect materially and adversely or
otherwise encumber the title of the GSME Shares to be issued by GSME pursuant to
this Agreement and no order, judgment, decree, stipulation or injunction to any
such effect shall be in effect or (iv) in the reasonable opinion of Plastec,
likely to have a Material Adverse Effect with respect to GSME or GSME
Sub.

     

    (d)           Consents.  GSME
and GSME Sub shall have obtained all consents, waivers and approvals required to
be obtained by them in connection with the consummation of the transactions
contemplated hereby, other than consents, waivers and approvals the absence of
which, either alone or in the aggregate, would not reasonably be expected to
have a Material Adverse Effect on GSME or GSME Sub and the GSME Closing
Certificate shall include a provision to such effect.

    (e)           Material Adverse
Effect.  No Material Adverse Effect with respect to GSME or
GSME Sub shall have occurred since the date of this Agreement.

     

    (f)           Opinions.  Plastec
shall have received from Graubard Miller an opinion of counsel substantially in
for the form of Exhibit D and from
Maples and Calder opinions of counsel substantially in the forms of Exhibit E and Exhibit
F.

     

    (g)           Resignations.  The
persons listed in Schedule 7.2(g) shall
have resigned from all of their positions, offices and directorships with GSME
and GSME Sub.

     

    
      
        
        

      

      
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    (h)           Trust
Fund.  GSME shall have made appropriate arrangements to have
the Trust Fund, which shall contain no less than the amount referred to in
Section 4.25, disbursed to GSME immediately upon the Closing and in accordance
with Section 6.14.

     

    (i)            Employment
Agreements.  The Employment Agreements shall be in full force
and effect and the executives thereunder shall be ready, willing and able to
serve in the capacities provided for therein.

     

    (j)           Directors. GSME and
its Board of Directors shall have taken such necessary action so that the
persons listed in Schedule 1.6 as
intended directors shall be appointed as directors of GSME and Merged Plastec
effective at Closing or immediately after the Effective Time, and the size of
the Board of Directors of GSME shall be set at seven (7) persons.

     

    (k)           SEC
Reports.  Immediately prior to Closing, GSME shall be in
compliance with all reporting requirements under the Exchange Act.

     

    (l)           Board
Approval.  Plastec’s Board of Directors shall have reconfirmed
its approval of the consummation by Plastec of the transactions contemplated
hereby, such reconfirmation to be based solely on an evaluation of (i) the funds
remaining in the Trust Fund after taking into account all payments to be made
pursuant to Section 6.14, and (ii) any pending litigation or other disputes
involving shareholders of GSME.

     

    (m)           Secretary’s
Certificate. Plastec shall have received a certificate from GSME and GSME
Sub, signed by the Secretary of each of them, certifying (i) that the attached
copies of the Charter Documents of GSME and GSME Sub and resolutions of the GSME
Board of Directors and GSME Sub Board of Directors approving this Agreement and
the transactions contemplated hereby are all true, complete and correct and
remain in full force and effect, (ii) the results of the votes taken at GSME’s
Special Meeting, and (iii) the holders of GSME’s share capital who have
exercised their redemption rights and the number of shares of GSME’s share
capital with respect to which redemption rights have been
exercised.

     

    (n)           Transaction
Documents. Each of the transaction documents contemplated hereunder to
which GSME or GSME Sub is a Party shall have been executed and delivered by GSME
and GSME Sub, as applicable.

     

    (o)           Certificate of Good
Standing. Plastec shall have received a certificate of good standing for
GSME under the law of the Cayman Islands and for GSME Sub under the law of the
British Virgin Islands.

    (p)           Injunctions or Restraints on
Conduct of Business. No temporary restraining order, preliminary or
permanent injunction or other order issued by any court of competent
jurisdiction or other legal or regulatory restraint provision limiting or
restricting any GSME or GSME Sub conduct or operation of the business of GSME or
GSME Sub following the transactions contemplated hereunder shall be in effect,
nor shall any proceeding brought by an administrative agency or commission or
other Governmental Entity, domestic or foreign, seeking the foregoing be
pending.

     

    
      
        
        

      

      
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    (q)           SEC Actions. No
formal or informal SEC investigation or proceeding shall have been initiated by
the SEC against GSME or any of its officers or directors.

     

    (r)           Other
Deliveries.  At or prior to Closing, GSME shall have delivered
to Plastec (i) copies of resolutions and actions taken by the GSME Board of
Directors and shareholders in connection with the approval of this Agreement and
the transactions contemplated hereunder, and (ii) such other documents or
certificates as shall reasonably be required by Plastec and its counsel in order
to consummate the transactions contemplated hereunder.

     

    7.3           Additional Conditions to the
Obligations of GSME and GSME Sub.  The obligations of GSME and
GSME Sub to consummate and effect the transactions contemplated by this
Agreement shall be subject to the satisfaction on or prior to the Closing Date
of each of the following conditions, any of which may be waived, in writing,
exclusively by GSME:

     

    (a)           Representations and
Warranties.  Each representation and warranty of Plastec and
each of the Plastec Shareholders contained in this Agreement that is (i)
qualified as to materiality shall have been true and correct (A) as of the date
of this Agreement and (B) subject to the provisions of the last sentence of
Section 6.9, on and as of the Closing Date, with the same force and effect as if
made on the Closing Date and (ii) not qualified as to materiality shall have
been true and correct (A) as of the date of this Agreement and (B) subject to
the provisions of the last sentence of Section 6.9, on and as of the Closing
Date in all material respects, with the same force and effect as if made on the
Closing Date.  GSME shall have received a certificate with respect to
the foregoing signed on behalf of Plastec by an authorized officer of Plastec
(with respect to the representations and warranties of Plastec) (the “Plastec Closing
Certificate”) and by each of the Plastec Shareholders (with respect to
the representations and warranties of such Plastec Shareholder (each, a “Plastec Shareholder Closing
Certificate”).

     

    (b)           Agreements and
Covenants.  Plastec and each of the Plastec Shareholders shall
have performed or complied with all agreements and covenants required by this
Agreement to be performed or complied with by them on or before the Closing Date
except to the extent that any failure to perform or comply (other than a willful
failure to perform or comply or failure to perform or comply with an agreement
or covenant reasonably within the control of Plastec) does not, or will not,
constitute a Material Adverse Effect on Plastec, and the Plastec Closing
Certificate and each Plastec Shareholder Closing Certificate shall include a
provision to such effect with respect to Plastec or such Plastec Shareholder, as
appropriate.

     

    (c)           No
Litigation.  No action, suit or proceeding against Plastec or
the Plastec Shareholders shall be pending or threatened before any Governmental
Entity which is (i) reasonably
likely to prevent consummation of any of the transactions contemplated by this
Agreement, (ii) reasonably likely to cause any of the transactions contemplated
by this Agreement to be rescinded following consummation, (iii) reasonably
likely to affect materially and adversely the right of GSME to own, operate or
control any of the assets and operations of Merged Plastec following the
Effective Time and no order, judgment, decree, stipulation or injunction to any
such effect shall be in effect or (iv) in the reasonable opinion of GSME, likely
to have a Material Adverse Effect with respect to Plastec.

     

    
      
        
        

      

      
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    (d)           Consents.  Plastec
shall have obtained all consents, waivers, permits and approvals required to be
obtained by Plastec and the Subsidiaries in connection with the consummation of
the transactions contemplated hereby, other than consents, waivers and approvals
the absence of which, either alone or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect on Plastec and the Plastec Closing
Certificate shall include a provision to such effect.

     

    (e)           Material Adverse
Effect.  No Material Adverse Effect with respect to Plastec
shall have occurred since the date of this Agreement.

     

    (f)           Opinions.  GSME
shall have received from Jingtian & Gongcheng and Maples and Calder opinions
of counsel substantially in the forms of Exhibit G and Exhibit H,
respectively.

     

    (g)           Plastec Shareholders’
Obligations.  The Plastec Shareholders shall have repaid to
Plastec, on or before the Closing, all direct and indirect indebtedness and
obligations owed by them to Plastec, including the indebtedness and other
obligations described in Schedule 2.23 and all
other amounts owed by them to Plastec.

     

    (h)           Derivative
Securities.  There shall be outstanding no options, warrants or
other derivative securities or rights entitling the holders thereof to acquire
Plastec Shares or other securities of Plastec, other than GSME’s rights under
this Agreement which shall be satisfied at Closing.

     

    (i)           Governmental Action/Filings;
Approvals.  All Governmental Action/Filings shall have been
taken and made and all Approvals shall have been received that are necessary for
consummation of the transactions contemplated by this Agreement and the
operation of the businesses of Plastec and shall be in full force and
effect.

     

    (j)           Officer’s
Certificate. GSME shall have received a certificate from Plastec, signed
by a duly authorized officer, certifying that the copies of the Charter
Documents of Plastec and resolutions of Plastec’s Board of Directors approving
this Agreement and the transactions contemplated hereby attached thereto are all
true, complete and correct and remain in full force and effect.

     

    (k)           Certificate of Good
Standing. GSME shall have received a certificate of good standing for
Plastec under British Virgin Islands Law.

     

    (l)           Injunctions or Restraints on
Conduct of Business. No temporary restraining order, preliminary or
permanent injunction or other order issued by any court of competent
jurisdiction or other legal or regulatory restraint provision limiting or
restricting any Plastec conduct or operation of the business of Merged Plastec
following the transactions contemplated hereunder shall be in effect, nor shall
any proceeding brought by an administrative agency or commission or other
Governmental Entity, domestic or foreign, seeking the foregoing be
pending.

     

    
      
        
        

      

      
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    (m)          Transaction
Documents. Each of the transaction documents contemplated hereunder to
which Plastec and the Plastec Shareholders are a Party shall have been executed
and delivered by Plastec and the Plastec Shareholders.

     

    (n)           2010 Financial
Statements.  The Net Income of Plastec set forth in the 2010
Audited Financial Statements shall not be materially lower than the Net Income
of Plastec set forth in the Draft Financial Statements, and the audit report on
the 2010 Audited Financial Statements shall not contain any material
qualifications not contained in the Draft Financial Statements, or omit any
material qualifications contained in the Draft Financial Statements, and shall
not utilize any accounting procedure that is materially different from that used
in connection with the Draft Financial Statements with respect to any material
item set forth in the 2010 Audited Financial Statements.

     

    (o)           Termination of Shareholder
Agreements. Agreements or other instruments providing for the termination
of the Shareholder Agreements, effective as of the Effective Time, shall be in
full force and effect.

     

    (p)           Other
Deliveries.  At or prior to Closing, Plastec shall have
delivered to GSME:  (i) copies of resolutions and actions taken by the
Plastec Board of Directors or the Plastec Shareholders in connection with the
approval of this Agreement and the transactions contemplated hereunder, and (ii)
such other documents or certificates as shall reasonably be required by GSME and
its counsel in order to consummate the transactions contemplated
hereunder.

     

    ARTICLE
VIII

     

    INDEMNIFICATION

     

    8.1           Indemnification of GSME and
the Plastec Shareholders.

     

    (a)           Subject
to the terms and conditions of this Article VIII (including without limitation
the limitations set forth in Section 8.4), GSME, Plastec and their respective
representatives, successors and permitted assigns (each a “GSME Indemnitee” and
collectively, the “GSME Indemnitees”)
shall be indemnified, defended and held harmless by each of the Insiders and the
Investors, jointly and not severally, but only to the extent of the Indemnity
Escrow Shares, from and against all Losses asserted against, resulting to,
imposed upon, or incurred by any GSME Indemnitee by reason of, arising out of or
resulting from:

     

    (i)           the
inaccuracy or breach of any representation or warranty of the Plastec
Shareholders or Plastec contained in or made pursuant to this Agreement, any
Schedule or any certificate delivered by the Plastec Shareholders or Plastec to
GSME pursuant to this Agreement with respect hereto or thereto in connection
with the Closing; and

    (ii)           the
non-fulfillment or breach of any covenant or agreement of the Plastec
Shareholders or Plastec contained in this Agreement.

     

    
      
        
        

      

      
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    (b)           Subject
to the terms and conditions of this Article VIII (including without limitation
the limitations set forth in Section 8.4), the Plastec Shareholders and their
respective representatives, successors and permitted assigns (each a “Plastec Shareholder
Indemnitee” and collectively, the “Plastec Shareholder
Indemnitees”) shall be indemnified, defended and held harmless by GSME,
but only to the extent of the value of the initial number of Indemnity Escrow
Shares multiplied by $10.00, from and against all Losses asserted against,
resulting to, imposed upon, or incurred by any Plastec Shareholder Indemnitee by
reason of, arising out of or resulting from:

     

    (i)           the
inaccuracy or breach of any representation or warranty of GSME or GSME Sub
contained in or made pursuant to this Agreement, any Schedule or any certificate
delivered by GSME or GSME Sub to the Plastec Shareholders pursuant to this
Agreement with respect hereto or thereto in connection with the Closing;
and

     

    (ii)           the
non-fulfillment or breach of any covenant or agreement of GSME or GSME Sub
contained in this Agreement.

     

    (c)           As
used in this Article VIII, the term “Losses” shall include
all losses, liabilities, damages, judgments, awards, orders, penalties,
settlements, costs and expenses (including, without limitation, interest,
penalties, court costs and reasonable legal fees and expenses) including those
arising from any demands, claims, suits, actions, costs of investigation,
notices of violation or noncompliance, causes of action, proceedings and
assessments whether or not made by third parties or whether or not ultimately
determined to be valid. Solely for the purpose of determining the amount of any
Losses (and not for determining any breach) for which a GSME Indemnitee or a
Plastec Shareholder Indemnitee (each of the GSME Indemnitees and the Plastec
Shareholder Indemnitees referred to herein individually as an “Indemnitee” and
collectively as the “Indemnitees”) may be
entitled to indemnification pursuant to Article VIII, any representation or
warranty contained in this Agreement that is qualified by a term or terms such
as “material,” “materially,” or “Material Adverse Effect” shall be deemed made
or given without such qualification and without giving effect to such
words.

     

    8.2           Indemnification of Third
Party Claims.  The indemnification obligations and liabilities
under this Article VIII with respect to actions, proceedings, lawsuits,
investigations, demands or other claims brought against an Indemnitee by a
Person other than GSME, the Plastec Shareholders or Plastec (a “Third Party Claim”)
shall be subject to the following terms and conditions (for purposes of this
Agreement, “Indemnified
Representative” means GSME, acting through the GSME Committee, with
respect to an indemnification claim by a GSME Indemnitee, and the Plastec
Shareholders, acting through the Shareholders’ Committee, with respect to an
indemnification claim by a Plastec Shareholder Indemnitee, and “Indemnifying
Representative” means GSME, acting through the GSME Committee, with
respect to an indemnification claim by a Plastec Shareholder Indemnitee, and the
Insiders and the Investors, acting through the Representative, with respect to
an indemnification claim by a GSME Indemnitee):

    (a)           Notice of
Claim.  The Indemnified Representative will give the
Indemnifying Representative prompt written notice after receiving written notice
of any Third Party Claim or discovering the liability, obligation or facts
giving rise to such Third Party Claim (a “Notice of Claim”)
which Notice of Claim shall set forth (i) a brief description of the nature of
the Third Party Claim, (ii) the total amount of the actual out-of-pocket Loss or
the anticipated potential Loss (including any costs or expenses which have been
or may be reasonably incurred in connection therewith), and (iii) whether such
Loss may be covered (in whole or in part) under any insurance and the estimated
amount of such Loss which may be covered under such insurance, and the
Indemnifying Representative shall be entitled to participate in the defense of
Third Party Claim at its expense.

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

     

    (b)           Defense.  The
Indemnifying Representative shall have the right, at its option (subject to the
limitations set forth in Section 8.2(c)) and at its own expense, by written
notice to the Indemnified Representative, to assume the entire control of,
subject to the right of the Indemnified Representative to participate (at its
expense and with counsel of its choice) in, the defense, compromise or
settlement of the Third Party Claim as to which such Notice of Claim has been
given, and shall be entitled to appoint a recognized and reputable counsel
reasonably acceptable to the Indemnified Representative to be the lead counsel
in connection with such defense. If the Indemnifying Representative is permitted
and elects to assume the defense of a Third Party Claim:

     

    (i)           the
Indemnifying Representative shall diligently and in good faith defend such Third
Party Claim and shall keep the Indemnified Representative reasonably informed of
the status of such defense; provided, however, that the Indemnified
Representative shall have the right to approve any settlement, which approval
will not be unreasonably withheld, delayed or conditioned; and

     

    (ii)           the
Indemnified Representative shall cooperate fully in all respects with the
Indemnifying Representative in any such defense, compromise or settlement
thereof, including, without limitation, the selection of counsel, and the
Indemnified Representative shall make available to the Indemnifying
Representative all pertinent information and documents under its
control.

     

    (c)           Limitations of Right to
Assume Defense.  The Indemnifying Representative shall not be
entitled to assume control of such defense if (i) the Third Party Claim relates
to or arises in connection with any criminal proceeding, action, indictment,
allegation or investigation; (ii) the Third Party Claim seeks an injunction or
equitable relief against the applicable Indemnitee(s); or (iii) there is a
reasonable probability that a Third Party Claim may materially and adversely
affect the applicable Indemnitee(s) other than as a result of money damages or
other money payments.

     

    (d)           Other
Limitations.  Failure to give prompt Notice of Claim or to
provide copies of relevant available documents or to furnish relevant available
data shall not constitute a defense (in whole or in part) to any Third Party
Claim by any Indemnitee against the Indemnifying Representative and shall not
affect the Indemnifying Representative’s duty or obligations under this Article
VIII, except to the extent (and only to the extent that) such failure shall have
adversely affected the ability of the Indemnifying Representative to defend
against or reduce
its liability or caused or increased such liability or otherwise caused the
damages to the applicable Indemnitee(s) to be greater than such damages would
have been had the applicable Indemnitee(s) given the Indemnifying Representative
prompt notice hereunder. So long as the Indemnifying Representative is defending
any such action actively and in good faith, the Indemnified Representative shall
not settle such action without the consent of the Indemnifying Representative,
such consent not to be unreasonably withheld or delayed. The Indemnified
Representative shall make available to the Indemnifying Representative all
relevant records and other relevant materials required by them and in the
possession or under the control of the Indemnified Representative, for the use
of the Indemnifying Representative and its representatives in defending any such
action, and shall in other respects give reasonable cooperation in such
defense.

     

    
      
        
        

      

      
        57

        
          

        

      

      
        
        

      

    

     

    (e)           Failure to
Defend.  If the Indemnifying Representative, promptly after
receiving a Notice of Claim, fails to defend such Third Party Claim actively and
in good faith, the Indemnified Representative will (upon further written notice)
have the right to undertake the defense, compromise or settlement of such Third
Party Claim as it may determine in its reasonable discretion, provided that the
Indemnifying Representative shall have the right to approve any settlement,
which approval will not be unreasonably delayed, withheld or
conditioned.

     

    (f)           Indemnitee
Rights.  Anything in this Section 8.2 to the contrary
notwithstanding, the Indemnifying Representative shall not, without the written
consent of the Indemnified Representative, settle or compromise any action or
consent to the entry of any judgment which does not include as an unconditional
term thereof the giving by the claimant or the plaintiff to each of the
applicable Indemnitee(s) a full and unconditional release from all liability and
obligation in respect of such action without any payment by any
Indemnitee.

     

    (g)           Representative
Consent.  Unless the Indemnifying Representative has consented
to a settlement of a Third Party Claim, the amount of the settlement shall not
be a binding determination of the amount of the Loss and such amount shall be
determined in accordance with the provisions of the Indemnity Escrow
Agreement.

     

    8.3           Insurance
Effect.  To the extent that any Losses that are subject to
indemnification pursuant to this Article VIII are covered by insurance, the
applicable Indemnitee(s) shall use commercially reasonable efforts to obtain the
maximum recovery under such insurance; provided that the applicable
Indemnitee(s) shall nevertheless be entitled to bring a claim for
indemnification under this Article VIII in respect of such Losses and the time
limitations set forth in Section 8.4 hereof for bringing a claim of
indemnification under this Agreement shall be tolled during the pendency of such
insurance claim. The existence of a claim by an Indemnitee for monies from an
insurer or against a third party in respect of any Loss shall not, however,
delay any payment pursuant to the indemnification provisions contained herein
and otherwise determined to be due and owing by the Indemnifying
Representative.  If an Indemnitee has received the payment required by
this Agreement from the Indemnifying Representative in respect of any Loss and
later receives proceeds from insurance or other amounts in respect of such Loss,
then it shall hold such proceeds or other amounts in trust for the benefit of
the Indemnifying Representative and shall pay to the Indemnifying
Representative, as promptly as practicable after receipt, a sum equal to the
amount of such proceeds or other amount received, up to the
aggregate amount of any payments received from the Indemnifying Representative
pursuant to this Agreement in respect of such Loss. Notwithstanding any other
provisions of this Agreement, it is the intention of the Parties that no insurer
or any other third party shall be (i) entitled to a benefit it would not be
entitled to receive in the absence of the foregoing indemnification provisions,
or (ii) relieved of the responsibility to pay any claims for which it is
obligated.

     

    
      
        
        

      

      
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    8.4           Limitations on
Indemnification.

     

    (a)           Survival; Time
Limitation.  The representations, warranties, covenants and
agreements in this Agreement or in any writing delivered by Plastec or the
Plastec Shareholders to GSME, or by GSME to the Plastec Shareholders, in
connection with this Agreement (including the GSME Closing Certificate, the
Plastec Closing Certificate and the Plastec Shareholder Closing Certificates)
and the obligation of GSME, the Insiders and the Investors to indemnify the
applicable Indemnitee(s) pursuant to Sections 8.1(a) and 8.1(b) shall survive
the Closing until the expiration of the Escrow
Period.  Notwithstanding the foregoing, (i) the representations,
warranties and covenants of Plastec in each of Section 2.1(a) (Organization),
Section 2.2(b) (Subsidiaries), Section 2.3 (Capitalization) and Section 2.4
(Authority Relative to this Agreement) and of the Plastec Shareholders in
Article III shall survive without limitation as to time, (ii) the
representations, warranties and covenants of Plastec in each of Sections 2.14
(Title to Property) and 2.15 (Taxes) shall survive the Closing until the
sixtieth (60th) day
following the expiration of the applicable statute of limitations, (iii) the
representations, warranties and covenants of GSME in each of Section 4.1(a)
(Organization), Section 4.2 (Subsidiaries), Section 4.3 (Capitalization) and
Section 4.4 (Authority Relative to this Agreement) shall survive without
limitation as to time and (iv) the representations, warranties and covenants of
GSME in each of Sections 4.14 (Title to Property) and 4.15 (Taxes) shall survive
the Closing until the sixtieth day following the expiration of the applicable
statute of limitations

     

    (b)           No
claim for indemnification under this Article VIII shall be brought after the end
of the relevant period specified in Section 8.4(a).  Any claim made by
an Indemnitee that is required to be made and is made prior to the expiration of
the Escrow Period or other relevant period specified in Section 8.4(a) shall be
preserved despite the subsequent expiration of the Escrow Period or such other
relevant period and any such claim set forth in a Notice of Claim sent prior to
the expiration of the Escrow Period or such other relevant period shall survive
until final resolution thereof.

     

    (c)           Deductible.  No
amount shall be payable under Article VIII unless and until the aggregate amount
of all indemnifiable Losses otherwise payable exceeds five hundred thousand
dollars ($500,000) (the “Deductible”) but
thereafter shall be required to indemnify the applicable Indemnitee(s) to the
full extent of their Losses from the first dollar
thereof.  Notwithstanding the foregoing, Losses resulting with respect
to the representations, warranties and covenants referred to in the last
sentence of Section 8.4(a) (“Surviving Matters”)
and payments required to be made pursuant to Section 8.1(a) and Section 8.1(b)
shall not be included in the calculation of the Deductible and an Indemnitee
shall be entitled to indemnification with respect to such Losses and payments as
though there were no Deductible.

    (d)           Exclusive
Remedy.  The Parties acknowledge and agree that, from and after
the Closing, the sole remedy of the Indemnities with respect to any and all
claims for damages arising out of or relating to this Agreement shall be
pursuant and subject to the requirements of the indemnification provisions set
forth in this Article VIII.  Notwithstanding any of the foregoing,
nothing contained in this Article VIII shall in any way impair, modify or
otherwise limit an Indemnitee’s right to bring any claim, demand or suit against
the other Parties based upon such other Parties’ actual fraud.

     

    
      
        
        

      

      
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    8.5           Adjustment to Purchase
Consideration.  Amounts paid for indemnification under Article
VIII shall be deemed to be an adjustment to the Merger Consideration paid to the
Plastec Shareholders, except as otherwise required by a Legal
Requirement.

     

    8.6           Representative
Capacities.  The Parties acknowledge that the Representative’s
obligations under this Article VIII are solely as a representative of the
Insiders and the Investors in the manner set forth in the Indemnity Escrow
Agreement with respect to the obligations to indemnify GSME under this Article
VIII and that the Representative shall have no responsibility for any expenses
incurred by it in such capacity and that all payments to GSME as a result of
such indemnification obligations shall be made solely from, and to the extent
of, the Indemnity Escrow Shares.  Out-of-pocket expenses of the
Representative  for attorneys’ fees and other costs shall be borne in
the first instance by GSME, which may make a claim for reimbursement thereof
against the Indemnity Escrow Shares upon the claim with respect to which such
expenses are incurred becoming an Established Claim (as defined in the Indemnity
Escrow Agreement). The Parties further acknowledge that all actions to be taken
by GSME pursuant to this Article VIII shall be taken on its behalf by the GSME
Committee in accordance with the provisions of the Indemnity Escrow Agreement.
The Escrow Agent, pursuant to the Indemnity Escrow Agreement after the Closing,
may apply all or a portion of the Indemnity Escrow Shares to satisfy any claim
for indemnification pursuant to this Article VIII. The Escrow Agent will hold
the remaining portion of the Indemnity Escrow Shares until final resolution of
all claims for indemnification or disputes relating thereto.

     

    8.7           Indemnification of Plastec
Shareholder Indemnitee. In the event that a Plastec Shareholder
Indemnitee is entitled to be indemnified by GSME pursuant to this Article VIII
for Losses incurred by such Plastec Shareholder Indemnitee, GSME shall issue to
such Plastec Shareholder Indemnitee GSME Shares with a Fair Market Value (as
defined in the Indemnity Escrow Agreement) equal to the amount of such
Losses.  In the event that Losses suffered by a Plastec Shareholder
Indemnitee and paid to the shareholders of GSME are as a result of Losses
suffered by GSME (by virtue of their ownership interest in GSME), then each
Plastec Shareholder Indemnitee shall be entitled to recover a percentage of such
Losses equal to such Plastec Shareholder Indemnitee’s percentage ownership of
all issued and outstanding GSME Shares.

     

    ARTICLE
IX

     

    TERMINATION

     

    9.1           Termination.  This
Agreement may be terminated at any time prior to the Closing:

    (a)           by
mutual written agreement of GSME and Plastec at any time;

     

    
      
        
        

      

      
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    (b)           by
either GSME or Plastec if the transactions contemplated by this Agreement shall
not have been consummated by May 25, 2011  (the “Termination Date”)
for any reason; provided, however, that the
right to terminate this Agreement under this Section 9.1(b) shall not be
available to any Party whose action or failure to act has been a principal cause
of or resulted in the failure of such consummation to occur on or before such
date and such action or failure to act constitutes a breach of this
Agreement;

     

    (c)           by
either GSME or Plastec if a Governmental Entity shall have issued an order,
decree, judgment or ruling or taken any other action, in any case having the
effect of permanently restraining, enjoining or otherwise prohibiting the
transactions contemplated by this Agreement, which order, decree, ruling or
other action is final and nonappealable;

     

    (d)           by
Plastec, upon a material breach of any representation, warranty, covenant or
agreement set forth in this Agreement on the part of GSME or GSME Sub, or if any
representation or warranty of GSME or GSME Sub shall have become untrue, in
either case such that the conditions set forth in Article VII would not be
satisfied as of the time of such breach or as of the time such representation or
warranty shall have become untrue; provided, that if
such breach by GSME or GSME Sub is curable by GSME or GSME Sub prior to the
Closing Date, then Plastec may not terminate this Agreement under this Section
9.1(d) for thirty (30) days after delivery of written notice from Plastec to
GSME or GSME Sub of such breach, provided GSME or GSME Sub continues to exercise
commercially reasonable efforts to cure such breach (it being understood that
Plastec may not terminate this Agreement pursuant to this Section 9.1(d) if it
shall have materially breached this Agreement or if such breach by GSME is cured
during such thirty (30)-day period);

     

    (e)           by
GSME, upon a material breach of any representation, warranty, covenant or
agreement set forth in this Agreement on the part of Plastec or any of the
Plastec Shareholders, or if any representation or warranty of Plastec or any of
the Plastec Shareholders shall have become untrue, in either case such that the
conditions set forth in Article VII would not be satisfied as of the time of
such breach or as of the time such representation or warranty shall have become
untrue; provided, that if
such breach is curable by Plastec or any such Plastec Shareholder prior to the
Closing Date, then GSME may not terminate this Agreement under this Section
9.1(e) for thirty (30) days after delivery of written notice from GSME to
Plastec or such Plastec Shareholder of such breach, provided Plastec or such
Plastec Shareholder continue to exercise commercially reasonable efforts to cure
such breach (it being understood that GSME may not terminate this Agreement
pursuant to this Section 9.1(e) if it shall have materially breached this
Agreement or if such breach by Plastec or the Plastec Shareholders is cured
during such thirty (30)-day period);

     

    (f)           by
either GSME or Plastec, if, at the Special Meeting (including any adjournments
thereof), this Agreement and the transactions contemplated thereby shall fail to
be approved and adopted by the affirmative vote of the holders of GSME Shares
required under GSME’s Charter Documents, or the holders of eighty one percent
(81%) or more in interest of the holders of GSME Shares issued in GSME’s IPO and
outstanding as of the date of the record date of
the Special Meeting exercise their rights to convert the GSME Shares held by
them into cash in accordance with GSME’s Charter Documents; and

     

    
      
        
        

      

      
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    (g)           by
Cathay if the 2010 Actual Net Income of Plastec represents less than ninety-five
percent (95%) of the Net Income of Plastec as set forth in the Draft Financial
Statements.

     

    9.2           Notice of Termination;
Effect of Termination.  Any termination of this Agreement under
Section 9.1 will be effective immediately upon (or, if the termination is
pursuant to Section 9.1(d) or Section 9.1(e) and the proviso therein is
applicable, thirty (30) days after) the delivery of written notice of the
terminating Party to the other Parties hereto.  In the event of the
termination of this Agreement as provided in Section 9.1, this Agreement shall
be of no further force or effect and the transactions contemplated by this
Agreement shall be abandoned, except for and subject to the following: (i)
Sections 6.5(a), 6.8, 9.2 and 9.3 and Article XI (General Provisions) shall
survive the termination of this Agreement, and (ii) nothing herein shall relieve
any Party from liability for any breach of this Agreement, including a breach by
a Party electing to terminate this Agreement pursuant to Section 9.1(b) caused
by the action or failure to act of such Party constituting a principal cause of
or resulting in the failure of the Closing to occur on or before the date stated
therein.

     

    9.3           Fees and
Expenses.  Except as set forth in Section 6.14, all fees and
expenses incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the Party incurring such expenses whether
or not the transactions contemplated by this Agreement are
consummated.

     

    ARTICLE
X

     

    DEFINED
TERMS

    

    Terms
defined in this Agreement are organized alphabetically as follows, together with
the Section and, where applicable, paragraph, number in which definition of each
such term is located:

     

    
      
        
          
            	
                    “$”

                  	 
      	
                    Section
      11.2(a)

                  
	
                    “2005
      Shareholder Agreement”

                  	 
      	
                    Section
      6.27

                  
	
                    “2010
      Audited Financial Statements”

                  	 
      	
                    Section
      6.1

                  
	
                    “2010
      Actual Net Income”

                  	 
      	
                    Section
      1.7(a)

                  
	
                    “2011
      Earnout Shares”

                  	 
      	
                    Section
      1.8(a)(i)

                  
	
                    “2011
      Net Income Target”

                  	 
      	
                    Section
      1.8(a)(i)

                  
	
                    “2012
      Earnout Shares”

                  	 
      	
                    Section
      1.8(a)(ii)

                  
	
                    “2012
      Net Income Target”

                  	 
      	
                    Section
      1.8(a)(ii)

                  
	
                    “2013
      Earnout Shares”

                  	 
      	
                    Section
      1.8(a)(iii)

                  
	
                    “2013
      Net Income Target”

                  	 
      	
                    Section
      1.8(a)(iii)

                  
	
                    “AAA”

                  	 
      	
                    Section
      11.13

                  
	
                    “Affiliate”

                  	 
      	
                    Section
      11.2(b)

                  
	
                    “Agreement”

                  	 
      	
                    Heading

                  
	
                    “Approvals”

                  	 
      	
                    Section
      2.1(a)

                  
	
                    “Articles
      of Merger”

                  	 
      	
                    Section
      1.2(b)

                  
	
                    “Audited
      Financial Statements”

                  	 
      	
                    Section
      2.7(a)

                  

          

        

      

    

     

    
      
         

      

      
        62

        
          

        

      

      
         

      

    

    

    
      
        
          
            	
                    “Average
      Closing Price”

                  	 
      	
                    Section
      5.3(a)(iv)

                  
	
                    “Blue
      Sky Laws”

                  	 
      	
                    Section
      2.5(b)

                  
	
                    “Business
      Day”

                  	 
      	
                    Section
      11.2(c)

                  
	
                    “BVI
      Act”

                  	 
      	
                    Recitals

                  
	
                    “Cathay”

                  	 
      	
                    Heading

                  
	
                    “Charter
      Documents”

                  	 
      	
                    Section
      2.1(a)

                  
	
                    “Closing”

                  	 
      	
                    Section
      1.2(a)

                  
	
                    “Closing
      Date”

                  	 
      	
                    Section
      1.2(a)

                  
	
                    “Closing
      Press Release”

                  	 
      	
                    Section
      6.3(b)

                  
	
                    “Closing
      Report”

                  	 
      	
                    Section
      6.3(b)

                  
	
                    “Code”

                  	 
      	
                    Section
      6.23

                  
	
                    “Colourful”

                  	 
      	
                    Heading

                  
	
                    “Companies
      Law”

                  	 
      	
                    Section
      6.1(b)

                  
	
                    “Continental”

                  	 
      	
                    Section
      1.9

                  
	
                    “Copyrights”

                  	 
      	
                    Section
      2.18

                  
	
                    “Corporate
      Records”

                  	 
      	
                    Section
      2.1(c)

                  
	
                    “Decision”

                  	 
      	
                    Section
      1.8(e)

                  
	
                    “Deductible”

                  	 
      	
                    Section
      8.4(c)

                  
	
                    “Disclosure
      Schedules”

                  	 
      	
                    Section
      6.9

                  
	
                    “Draft
      Financial Statements”

                  	 
      	
                    Section
      2.7(a)

                  
	
                    “Earnout
      Shares”

                  	 
      	
                    Section
      1.3(a)(ii)

                  
	
                    “Effective
      Time”

                  	 
      	
                    Section
      1.2(b)

                  
	
                    “Employment
      Agreements”

                  	 
      	
                    Section
      6.16

                  
	
                    “Environmental
      Law”

                  	 
      	
                    Section
      2.16(a)

                  
	
                    “Escrow
      Fund”

                  	 
      	
                    Section
      1.9

                  
	
                    “Escrow
      Period”

                  	 
      	
                    Section
      1.9

                  
	
                    “Exchange
      Act”

                  	 
      	
                    Section
      2.5(b)

                  
	
                    “Existing
      Registration Rights Agreement”

                  	 
      	
                    Section
      6.22

                  
	
                    “Expert”

                  	 
      	
                    Heading

                  
	
                    “Final
      Notice”

                  	 
      	
                    Section
      1.8(e)

                  
	
                    “Financial
      Statements”

                  	 
      	
                    Section
      2.7(a)

                  
	
                    “Fine
      Colour”

                  	 
      	
                    Heading

                  
	
                    “FINRA”

                  	 
      	
                    Section
      4.23

                  
	
                    “Fiscal
      Year”

                  	 
      	
                    Section
      11.2(d)

                  
	
                    “Governmental
      Action/Filing”

                  	 
      	
                    Section
      2.21(c)

                  
	
                    “Governmental
      Entity”

                  	 
      	
                    Section
      2.5(b)

                  
	
                    “Greatest”

                  	 
      	
                    Heading

                  
	
                    “GSME”

                  	 
      	
                    Heading

                  
	
                    “GSME
      Closing Certificate”

                  	 
      	
                    Section
      7.2(a)

                  
	
                    “GSME
      Committee”

                  	 
      	
                    Section
      1.10

                  
	
                    “GSME
      Contracts”

                  	 
      	
                    Section
      4.19(a)

                  
	
                    “GSME
      Convertible Securities”

                  	 
      	
                    Section
      4.3(c)

                  
	
                    “GSME
      Indemnitee”/“GSME Indemnitees”

                  	 
      	
                    Section
      8.1(a)

                  
	
                    “GSME
      Preference Shares”

                  	 
      	
                    Section
      4.3(a)

                  
	
                    “GSME
      Schedule”

                  	 
      	
                    Article
      IV

                  
	
                    “GSME
      SEC Reports”

                  	 
      	
                    Section
      4.7(a)

                  

          

        

      

    

     

    
      
         

      

      
        63

        
          

        

      

      
         

      

    

    

    
      
        	
                “GSME
      Shareholder Approval”

              	 
      	
                Section
      6.1(a)

              
	
                “GSME
      Shares”

              	 
      	
                Recitals

              
	
                “GSME
      Shares Options”

              	 
      	
                Section
      4.3(c)

              
	
                “GSME
      Sub”

              	 
      	
                Heading

              
	
                “GSME
      Sub Stock”

              	 
      	
                Section
      4.3(b)

              
	
                “GSME
      Warrants”

              	 
      	
                Section
      4.3(c)

              
	
                “Hazardous
      Material”

              	 
      	
                Section
      2.16(a)

              
	
                “HK$”

              	 
      	
                Section
      11.2(e)

              
	
                “IFRS”

              	 
      	
                Section
      11.2(f)

              
	
                “Indemnified
      Representative”

              	 
      	
                Section
      8.2

              
	
                “Indemnifying
      Representative”

              	 
      	
                Section
      8.2

              
	
                “Indemnitee”/“Indemnitees”

              	 
      	
                Section
      8.1(b)

              
	
                “Indemnity
      Escrow Agreement”

              	 
      	
                Section
      1.9

              
	
                “Indemnity
      Escrow Shares”

              	 
      	
                Section
      1.9

              
	
                “Insiders”

              	 
      	
                Heading

              
	
                “Insurance
      Policies”

              	 
      	
                Section
      2.20

              
	
                “Intellectual
      Property”

              	 
      	
                Section
      2.18

              
	
                “Investors”

              	 
      	
                Heading

              
	
                “IPO”

              	 
      	
                Section
      4.24

              
	
                “Knowledge”

              	 
      	
                Section
      11.2(g)

              
	
                “L/C”

              	 
      	
                Section
      6.8

              
	
                “Legal
      Requirements”

              	 
      	
                Section
      11.2(h)

              
	
                “Lien”

              	 
      	
                Section
      11.2(i)

              
	
                “Losses”

              	 
      	
                Section
      8.1(c)

              
	
                “Material
      Adverse Effect”

              	 
      	
                Section
      11.2(j)

              
	
                “Material
      Plastec Contracts”

              	 
      	
                Section
      2.19(a)

              
	
                “Merged
      Plastec”

              	 
      	
                Section
      1.1

              
	
                “Merger”

              	 
      	
                Recitals

              
	
                “Merger
      Consideration”

              	 
      	
                Section
      1.3(a)

              
	
                “Net
      Income”

              	 
      	
                Section
      11.2(k)

              
	
                “Net
      Income Target”

              	 
      	
                Section
      11.2(l)

              
	
                “Notice”

              	 
      	
                Section
      1.8(e)

              
	
                “Notice
      of Claim”

              	 
      	
                Section
      8.2(a)

              
	
                “Original
      GSME Shareholders”

              	 
      	
                Section
      6.22

              
	
                “OTC
      BB”

              	 
      	
                Section
      4.23

              
	
                “Other
      Shareholder Agreements”

              	 
      	
                Section
      6.27

              
	
                “Outstanding
      GSME Shares”

              	 
      	
                Section
      5.3(a)(i)

              
	
                “Party”/“Parties”

              	 
      	
                Heading

              
	
                “Patents”

              	 
      	
                Section
      2.18

              
	
                “Period”

              	 
      	
                Section
      5.3(a)(ii)

              
	
                “Person”

              	 
      	
                Section
      11.2(m)

              
	
                “Plan”/“Plans”

              	 
      	
                Section
      2.11(a)

              
	
                “Plastec”

              	 
      	
                Heading

              
	
                “Plastec
      Closing Certificate”

              	 
      	
                Section
      7.3(a)

              
	
                “Plastec
      Contracts”

              	 
      	
                Section
      2.19(a)

              
	
                “Plastec
      Insider”

              	 
      	
                Section
      2.19(a)(i)

              

      

    

     

    
      
         

      

      
        64

        
          

        

      

      
         

      

    

    

    
      
        	
                “Plastec
      Intellectual Property”

              	 
      	
                Section
      2.18

              
	
                “Plastec
      Products”

              	 
      	
                Section
      2.18

              
	
                “Plastec
      Registered Intellectual Property”

              	 
      	
                Section
      2.18

              
	
                “Plastec
      Schedule”

              	 
      	
                Article
      II

              
	
                “Plastec
      Shareholder Indemnitee”/

              	 
      	 
      
	
                “Plastec
      Shareholder Indemnitees”

              	 
      	
                Section
      8.1(b)

              
	
                “Plastec
      Shareholder Closing Certificate”

              	 
      	
                Section
      7.3(a)

              
	
                “Plastec
      Shareholders”

              	 
      	
                Heading

              
	
                “Plastec
      Shareholders Schedule”

              	 
      	
                Article
      III

              
	
                “Plastec
      Shares”

              	 
      	
                Section
      2.3(a)

              
	
                “Pro-rating
      Mechanism”

              	 
      	
                Section
      1.8(a)(v)

              
	
                “Proxy
      Statement”

              	 
      	
                Section
      6.1(a)

              
	
                “Registered
      Intellectual Property”

              	 
      	
                Section
      2.18

              
	
                “Registrar”

              	 
      	
                Section
      1.2(b)

              
	
                “Registration
      Rights Agreement”

              	 
      	
                Section
      6.22

              
	
                “Representative”

              	 
      	
                Section
      1.11

              
	
                “Returns”

              	 
      	
                Section
      2.15(b)(i)

              
	
                “Sale”

              	 
      	
                Section
      5.2

              
	
                “Sale
      Request”

              	 
      	
                Section
      5.3(c)

              
	
                “SEC”

              	 
      	
                Section
      5.2

              
	
                “Securities
      Act”

              	 
      	
                Section
      2.5(b)

              
	
                “Sell”

              	 
      	
                Section
      5.2

              
	
                “Shareholder
      Agreements”

              	 
      	
                Section
      6.27

              
	
                “Shareholders’
      Committee”

              	 
      	
                Section
      1.11

              
	
                “Signing
      Form 6-K”

              	 
      	
                Section
      6.3(a)

              
	
                “Signing
      Press Release”

              	 
      	
                Section
      6.3(a)

              
	
                “Special
      Meeting”

              	 
      	
                Section
      6.1(a)

              
	
                “Subsidiary”/“Subsidiaries”

              	 
      	
                Section
      2.2(a)

              
	
                “Sun
      Yip”

              	 
      	
                Heading

              
	
                “Surviving
      Matters”

              	 
      	
                Section
      8.4(c)

              
	
                “Tax”/“Taxes”

              	 
      	
                Section
      2.15(a)

              
	
                “Termination
      Date”

              	 
      	
                Section
      9.1(b)

              
	
                “Third
      Party Claim”

              	 
      	
                Section
      8.2

              
	
                “Tiger”

              	 
      	
                Heading

              
	
                “Top”

              	 
      	
                Heading

              
	
                “Trademarks”

              	 
      	
                Section
      2.18

              
	
                “Trust
      Fund”

              	 
      	
                Section
      4.25

              
	
                “U.S.
      GAAP”

              	 
      	
                Section
      4.7(b)

              

      

    

    ARTICLE
XI

    

    GENERAL
PROVISIONS

    
    

    11.1         Notices.  All
notices and other communications hereunder shall be in writing and shall be
deemed given if delivered personally or by commercial delivery service providing
proof of delivery to the Parties at the following addresses (or at such other
address for a Party as shall be specified by like notice):

     

    
      
        
        

      

      
        65

        
          

        

      

      
        
        

      

    

     

    If to GSME or GSME Sub,
to:

    

    GSME Acquisition Partners
I

    762 West Beijing Road

    Shanghai, China 200041

    Attn: Chief Executive
Officer

    Telephone: (86)
21-6271-6777

    Telecopier:

    

    with copies to:

    

    David Alan Miller, Esq.

    Graubard Miller

    405 Lexington Avenue

    New York, New York
10174-1901

    Telephone:  212-818-8661

    Telecopier:  212-818-8881

    

    and

    

    Maples Corporate Services
Limited

    P.O. Box 309

    Ugland House

    South Church Street

    Grand Cayman

    KY1-1104

    Cayman Islands

    Telephone:  345-949-8066

    For the Attention of Matthew
Gardner

    

    If to Plastec, to:

    

    Plastec International Holdings
Limited

    Unit 01, 21/F, Aitken Vanson
Centre

    61 Hoi Yuen Road, Kwun
Tong

    Kowloon, HK

    Attn: Ho Leung Ning

    Telephone:

    Telecopier:

    
      
         

      

      
        66

        
          

        

      

      
         

      

    

    

    with copies to:

    

    Allen Z. Sussman, Esq.

    Reed Smith LLP

    355 South Grand Avenue

    Suite 2900

    Los Angeles,
CA  90071

    Telephone:  213-457-8030

    Telecopier:  213-457-8080

    

    and

    

    Shiu Kay SUEN

    Unit 10, 21/F, Aitken Vanson
Centre

    61 Hoi Yuen Road, Kwun
Tong

    Kowloon, Hong Kong

    Telephone:

    Telecopier:

    

    If to Sun Yip:

    

    Sun Yip Industrial Company
Limited

    c/o Unit 01, 21/F, Aitken Vanson
Centre

    61 Hoi Yuen Road, Kwun
Tong

    Kowloon, Hong Kong.

    Attn: Kin Sun Sze-To

    Telephone: 852-21917155

    Telecopier: 852-27796001

    

    If to Tiger:

    

    Tiger Power Industries
Limited

    c/o Unit 01, 21/F, Aitken Vanson
Centre

    61 Hoi Yuen Road, Kwun
Tong

    Kowloon, Hong Kong.

    Attn: Kin Sun Sze-To

    Telephone: 852-21917155

    Telecopier: 852-27796001

    

    If to Expert:

    

    Expert Rank Limited

    c/o Unit 01, 21/F, Aitken Vanson
Centre

    61 Hoi Yuen Road, Kwun
Tong

    Kowloon, Hong Kong.

    Attn: Ho Leung NING

    Telephone: 852-21917155

    Telecopier:
852-27796001

    
      
         

      

      
        67

        
          

        

      

      
         

      

    

    

    If to Fine Colour:

    

    Fine Colour Limited

    c/o Unit 01, 21/F, Aitken Vanson
Centre

    61 Hoi Yuen Road, Kwun
Tong

    Kowloon, Hong Kong.

    Attn: Chin Hien TAN

    Telephone: 852-21917155

    Telecopier: 852-27796001

    

    If to Cathay:

    

    c/o New Capital Management,
Ltd.

    14/F, St. John’s Bldg.

    33 Garden Road

    Central, Hong Kong

    Attn:  Hermann
Leung

    Telephone: 852-25302212

    Telecopier: 852-2147-5050

    

    with a copy to:

    

    George Y. Liu, Esq.

    Boies, Schiller & Flexner
LLP

    575 Lexington Avenue

    New York, New York 10022

    Telephone:  212-446-2300

    Telecopier:  212-446-2350

    

    If to Greatest Sino:

    

    Greatest Sino Holdings
Limited

    c/o Unit 01, 21/F, Aitken Vanson
Centre

    61 Hoi Yuen Road, Kwun
Tong

    Kowloon, Hong Kong.

    Attn: Mei Ling WONG

    Telephone: 852-21917155

    Telecopier: 852-27796001

    

    If to
Colourful:

    

    Colourful Asia International
Limited

    c/o Unit 3408, China Merchant
Tower

    Shun Tak Centre, Sheung
Wan

    Hong Kong.

    Attn: Yuk Sang TAM

    Telephone: 852-25878683

    Telecopier:
852-25877272

    
      
         

      

      
        68

        
          

        

      

      
         

      

    

    

    If to Top:

    

    Top Universe Management
Limited

    c/o Unit 3408, China Merchant
Tower

    Shun Tak Centre, Sheung
Wan

    Hong Kong.

    Attn: Kwok Wa HUNG

    Telephone: 852-25878683

    Telecopier: 852-25877272

    

    If to the GSME Committee:

    

    Mr. Eli D. Scher

    762 West Beijing Road

    Shanghai 200041

    People’s Republic of
China

    Telephone:  86 21
62716777

    Telecopier:  86 21
62716068

    

    If to the Shareholder’s
Committee:

    

    c/o New Capital Management,
Ltd.

    14/F, St. John’s Bldg.

    33 Garden Road

    Central, Hong Kong

    Attn:  J. David
Selvia

    Telephone: 852-25302212

    Telecopier: 852-21475050

    

    and

    

    Mr. Kin Sun SZE-TO

    Plastec International Holdings
Limited

    c/o Unit 01, 21/F, Aitken Vanson
Centre

    61 Hoi Yuen Road, Kwun
Tong

    Kowloon, Hong Kong.

    Telephone: 852-21917155

    Telecopier:
852-27796001

    
      
         

      

      
        69

        
          

        

      

      
         

      

    

    

    If to the Representative:

    

    Mr. Ho Leung NING and Mr. Kin Sun
SZE-TO

    Plastec International Holdings
Limited

    c/o Unit 01, 21/F, Aitken Vanson
Centre

    61 Hoi Yuen Road, Kwun
Tong

    Kowloon, Hong Kong.

    Telephone: 852-21917155

    Telecopier:
852-27796001

     

    11.2           Interpretation.  The
definitions of the terms herein shall apply equally to the singular and plural
forms of the terms defined.  Whenever the context shall require, any
pronoun shall include the corresponding masculine, feminine and neuter
forms.  When a reference is made in this Agreement to an Exhibit or
Schedule, such reference shall be to an Exhibit or Schedule to this Agreement
unless otherwise indicated.  When a reference is made in this
Agreement to Articles, Sections or subsections, such reference shall be to an
Article, Section or subsection of this Agreement.  Unless otherwise
indicated the words “include,” “includes” and “including” when used herein shall
be deemed in each case to be followed by the words “without
limitation.”  The table of contents and headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.  When reference is made
herein to “the business of” an entity, such reference shall be deemed to include
the business of all direct and indirect Subsidiaries of such
entity.  Reference to the Subsidiaries of an entity shall be deemed to
include all direct and indirect Subsidiaries of such entity.  For
purposes of this Agreement:

     

    (a)           “$” means United
States Dollars.

     

    (b)           “Affiliate” means, as
applied to any Person, any other Person directly or indirectly controlling,
controlled by or under direct or indirect common control with, such
Person.  For purposes of this definition, “control” (including with
correlative meanings, the terms “controlling,” “controlled by” and “under common
control with”), as applied to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities, by
contract or otherwise.

     

    (c)           “Business Day” means a
day, other than a Saturday or Sunday, on which banks are open for the
transaction of business in New York City.

     

    (d)           “Fiscal Year” means
Plastec’s fiscal year which begins on May 1st and
ends on April 30th of the following calendar year.  (E.g., Fiscal Year
2010 spans from May 1, 2009 through April 30, 2010.)

     

    (e)           “HK$” means Hong Kong
Dollars.

     

    (f)           “IFRS” means
International Financial Reporting Standards.

     

    (g)           “Knowledge” means
actual knowledge or awareness, after due inquiry, as to a specified fact or
event of a Person that is an individual or of an executive officer or director
of a Person that is a corporation or of a Person in a similar capacity of an
entity other than a corporation;

    
      
         

      

      
        70

        
          

        

      

      
         

      

    

    (h)           “Legal Requirements”
means any federal, state, local, municipal, foreign or other law, statute,
constitution, principle of common law, resolution, ordinance, code, edict,
decree, rule, regulation, ruling or requirement issued, enacted, adopted,
promulgated, implemented or otherwise put into effect by or under the authority
of any Governmental Entity and all requirements set forth in applicable Plastec
Contracts or GSME Contracts;

     

    (i)           “Lien” means any
mortgage, pledge, security interest, encumbrance, lien, restriction or charge of
any kind (including, without limitation, any conditional sale or other title
retention agreement or lease in the nature thereof, any sale with recourse
against the seller or any Affiliate of the seller, or any agreement to give any
security interest);

     

    (j)           “Material Adverse
Effect” when used in connection with an entity means any change, event,
violation, inaccuracy, circumstance or effect, individually or when aggregated
with other changes, events, violations, inaccuracies, circumstances or effects,
that is materially adverse to the business, assets (including intangible
assets), revenues, financial condition or results of operations of such entity,
it being understood that none of the following alone or in combination shall be
deemed, in and of itself, to constitute a Material Adverse
Effect:  (i) changes attributable to the public announcement or
pendency of the transactions contemplated by this Agreement, or (ii) changes in
general national or regional economic conditions;

     

    (k)           “Net Income” will be
evidenced by Plastec’s net income set forth in its consolidated financial
statements for the applicable Fiscal Year, which will be audited in accordance
with IFRS.  Additionally, for purposes of measuring Merged Plastec’s
Net Income (which is expressed in Hong Kong Dollars (HK$) for all purposes under
this Agreement and based on the operations of Plastec’s existing or currently
planned businesses on the date hereof or any operations or assets subsequently
acquired by Merged Plastec through merger and acquisition activities after the
date hereof that (except as determined otherwise by Merged Plastec’s board of
directors on a case by case basis) is accretive to Merged Plastec’s earnings per
share) under Section 1.8 during any period, the following items shall be added
to Merged Plastec’s actual Net Income for such period:

     

    
      	
               
      

            	
              (1)

            	
              charges,
      expenses or losses incurred by or allocated to Merged Plastec due to or
      arising from (A) the write-off, impairment, amortization or depreciation
      of assets, including without limitation fixed assets, inventory, account
      receivables, goodwill and other intangible assets of Merged Plastec at
      Closing or acquired or created after Closing, (B) the exercise or
      conversion of options, warrants and other derivative securities or
      instruments, (C) the issuance of equity securities or instruments
      primarily for compensatory purposes, (D) the issuance of equity securities
      or instruments in connection with financing activities, (E) adjustments to
      the fair value of off-balance sheet items, (F) legal, professional and
      other expenses incurred in connection with the transactions contemplated
      by this Agreement and the ancillary documents hereto, (G) corporate
      overhead, including legal, compliance and accounting expenses, incurred by
      GSME or its Affiliates (and their respective successors) but allocated to
      Merged Plastec, if any, and (H) income taxes;
  and

            

    

     

    
      
         

      

      
        71

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (2)

            	
              net
      losses incurred by or allocated to Merged Plastec in connection with
      businesses or assets acquired after the date hereof, and (B) legal,
      professional, advisory and other fees and expenses incurred in connection
      with actual or proposed acquisitions of businesses or
    assets.

            

    

     

    (l)           “Net Income Target”
means each of the 2011 Net Income Target, the 2012 Net Income Target and the
2013 Net Income Target.

     

    (m)           “Person” means any
individual, corporation (including any non-profit corporation), general
partnership, limited partnership, limited liability partnership, joint venture,
estate, trust, company (including any limited liability company or joint stock
company), firm or other enterprise, association, organization, entity or
Governmental Entity.

     

    11.3         Further Assurances;
Post-Closing Cooperation.  Subject to the terms and conditions
of this Agreement, at any time or from time to time after the Closing, each of
the Parties shall execute and deliver such other documents and instruments,
provide such materials and information and take such other actions as may
reasonably be necessary, proper or advisable, to the extent permitted by law, to
fulfill its obligations under this Agreement and the other documents relating to
the transactions contemplated by this Agreement to which it is
party.

     

    11.4         Counterparts; Facsimile
Signatures.  This Agreement and each other document executed in
connection with the transactions contemplated hereby, and the consummation
thereof, may be executed in one or more counterparts, all of which shall be
considered one and the same document and shall become effective when one or more
counterparts have been signed by each of the Parties and delivered to the other
Parties, it being understood that all Parties need not sign the same
counterpart.  Delivery by facsimile or email attachment to counsel for
the other Parties of a counterpart executed by a Party shall be deemed to meet
the requirements of the previous sentence.

     

    11.5         Entire Agreement; Third
Party Beneficiaries.  This Agreement and the documents and
instruments and other agreements among the Parties hereto as contemplated by or
referred to herein, including the Exhibits and Schedules hereto (a) constitute
the entire agreement among the Parties with respect to the subject matter hereof
and supersede all prior agreements and understandings, both written and oral,
among the Parties with respect to the subject matter hereof, it being understood
that the letter of intent between GSME and Plastec dated June 17, 2010 is hereby
terminated in its entirety and shall be of no further force and effect (except
to the extent expressly stated to survive the execution of this Agreement and
the consummation of the transactions contemplated hereby); and (b) are not
intended to confer upon any other person any rights or remedies hereunder
(except as specifically provided in this Agreement).

     

    11.6         Severability.  In
the event that any provision of this Agreement, or the application thereof,
becomes or is declared by a court of competent jurisdiction to be illegal, void
or unenforceable, the remainder of this Agreement will continue in full force
and effect and the application of such provision to other persons or
circumstances will be interpreted so as reasonably to effect the intent of the
Parties.  The Parties further agree to replace such void or
unenforceable provision of this Agreement with a valid and enforceable provision
that will achieve, to the extent possible, the economic, business and other
purposes of such void or unenforceable provision.

     

    
      
         

      

      
        72

        
          

        

      

      
         

      

    

    11.7         Other Remedies; Specific
Performance.  Except as otherwise provided herein, any and all
remedies herein expressly conferred upon a Party will be deemed cumulative with
and not exclusive of any other remedy conferred hereby, or by law or equity upon
such Party, and the exercise by a Party of any one remedy will not preclude the
exercise of any other remedy.  The Parties agree that irreparable
damage would occur in the event that any of the provisions of this Agreement
were not performed in accordance with their specific terms or were otherwise
breached.  It is accordingly agreed that the Parties shall be entitled
to seek an injunction or injunctions to prevent breaches of this Agreement and
to enforce specifically the terms and provisions hereof in any court of the
United States, any state of the United States, the Cayman Islands or the British
Virgin Islands having jurisdiction, this being in addition to any other remedy
to which they are entitled at law or in equity, and each Party hereby consents
to the jurisdiction of such courts.

     

    11.8         Governing
Law.  This Agreement shall be governed by and construed in
accordance with the law of the State of New York regardless of the law that
might otherwise govern under applicable principles of conflicts of law
thereof.

     

    11.9         Rules of
Construction.  Plastec, GSME, GSME Sub and Cathay agree that
they each have been represented by counsel during the negotiation and execution
of this Agreement and, therefore, waive the application of any law, regulation,
holding or rule of construction providing that ambiguities in an agreement or
other document will be construed against the Party drafting such agreement or
document.

     

    11.10       Assignment.  No
Party may assign either this Agreement or any of its rights, interests, or
obligations hereunder without the prior written approval of the other Parties,
except that GSME may assign its rights hereunder to a wholly-owned subsidiary
formed for such purpose; provided that no such assignment by GSME shall relieve
GSME of its obligations and liabilities hereunder.  Subject to the
first sentence of this Section 11.10, this Agreement shall be binding upon and
shall inure to the benefit of the Parties and their respective successors and
permitted assigns.

     

    11.11       Amendment.  This
Agreement may be amended by the Parties at any time by execution of an
instrument in writing signed on behalf of each of the Parties.

     

    11.12       Extension;
Waiver.  At any time prior to the Closing, any Party may, to
the extent legally allowed, (i) extend the time for the performance of any of
the obligations or other acts of the other Parties, (ii) waive any inaccuracies
in the representations and warranties made to such Party contained herein or in
any document delivered pursuant hereto and (iii) waive compliance with any of
the agreements or conditions for the benefit of such Party contained
herein.  Any agreement on the part of a Party to any such extension or
waiver shall be valid only if set forth in an instrument in writing signed on
behalf of such Party.  Delay in exercising any right under this
Agreement shall not constitute a waiver of such right.

    
      
         

      

      
        73

        
          

        

      

      
         

      

    

    11.13       Arbitration.  Except
as set forth in Section 11.7, the Parties hereto agree that any action,
proceeding or claim arising out of or relating in any way to this Agreement
shall be resolved through final and binding arbitration in accordance with the
International Arbitration Rules of the American Arbitration Association (“AAA”).  Notice
of a demand to arbitrate a dispute by any Party shall be given in writing to the
others at their last known addresses.  The arbitration shall be
brought before the AAA International Center for Dispute Resolution’s offices in
New York City, New York, will be conducted in English and will be decided by a
panel of three arbitrators selected from the AAA Commercial Disputes
Panel.  The arbitrator panel’s decision shall be final and enforceable
by any court having jurisdiction over the Parties against whom enforcement is
sought.  The cost of such arbitrators and arbitration services,
together with the prevailing Party’s legal fees and expenses, shall be borne by
the non-prevailing Party or as otherwise directed by the
arbitrators.  The arbitrator shall supply a written opinion supporting
any award, and judgment may be entered on the award in any court of competent
jurisdiction.  In the event that preliminary or permanent injunctive
relief is necessary or desirable in order to prevent a Party from acting
contrary to this Agreement or to prevent irreparable harm prior to a
confirmation of an arbitration award, then any Party is authorized and entitled
to commence a lawsuit solely to obtain equitable relief against any other
pending the completion of the arbitration in a court having jurisdiction over
the Parties.  Each Party hereby consents to the exclusive jurisdiction
of the federal and state courts located in the State of New York, New York
County, for such purpose.  All rights and remedies of the Parties
shall be cumulative and in addition to any other rights and remedies obtainable
from arbitration.

     

    11.14       Currency.  All
monetary amounts set forth herein are referenced in United States dollars,
unless otherwise noted.

     

    [The
remainder of this page has been intentionally left blank.]

    
      
         

      

      
        74

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as
of the date first written above.

     

    
      
        
          
            
              
                
                  	
                          GSME
      ACQUISITION PARTNERS I

                        
	 
      	 
      
	
                          By:

                        	
                          /s/
      Jing Dong Gao

                        
	
                          Name:
      Jing Dong Gao

                        
	
                          Title:

                        
	 
      	 
      
	
                          GSME
      ACQUISITION PARTNERS I SUB LIMITED

                        
	 
      	 
      
	
                          By:

                        	
                          
                            /s/
      Jing Dong Gao

                          

                        
	
                          Name:
      Jing
      Dong Gao

                        
	
                          Title:

                        
	 
      	 
      
	
                          PLASTEC
      INTERNATIONAL

                        
	
                          HOLDINGS
      LIMITED

                        
	 
      	 
      
	
                          By:

                        	
                          /s/
      Sze-To Kin Sun

                        
	
                          Name:
      Sze-To Kin Sun

                        
	
                          Title:

                        
	 
      	 
      
	
                          SUN
      YIP INDUSTRIAL COMPANY

                        
	
                          LIMITED
      (BVI)

                        
	 
      	 
      
	
                          By:

                        	
                          
                            /s/
      Sze-To Kin Sun

                          

                        
	
                          Name:
      Sze-To Kin Sun

                        
	
                          Title:

                        
	 
      	 
      
	
                          TIGER
      POWER INDUSTRIES LIMITED (BVI)

                        
	 
      	 
      
	
                          By:

                        	
                          
                            /s/
      Sze-To Kin Sun

                          

                        
	
                          Name:
      Sze-To Kin Sun

                        
	
                          Title:

                        

                

              

            

          

        

      

    

     

    
      
         

      

      
        75

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  	
                          EXPERT
      RANK LIMITED (BVI)

                        
	 
      	 
      
	
                          By:

                        	
                          /s/
      Ning Ho Leung

                        
	
                          Name:
      Ning Ho Leung

                        
	
                          Title:

                        
	 
      	 
      
	
                          FINE
      COLOUR LIMITED (BVI)

                        
	 
      	 
      
	
                          By:

                        	
                          /s/
      Tan Chin Hien

                        
	
                          Name:
      Tan Chin Hien

                        
	
                          Title:

                        
	 
      	 
      
	
                          CATHAY
      PLASTIC LIMITED (BVI)

                        
	 
      	 
      
	
                          By:

                        	
                          /s/
      Leung Ping Chung Hermann

                        
	
                          Name:
      Leung Ping Chung Hermann

                        
	
                          Title:

                        
	 
      	 
      
	
                          GREATEST
      SINO HOLDINGS LIMITED (BVI)

                        
	 
      	 
      
	
                          By:

                        	
                          /s/
      Wong Mei Ling

                        
	
                          Name:
      Wong Mei Ling

                        
	
                          Title:

                        
	 
      	 
      
	
                          COLOURFUL
      ASIA INTERNATIONAL LIMITED (BVI)

                        
	 
      	 
      
	
                          By:

                        	
                          /s/
      Tam Yuk Sang Sammy

                        
	
                          Name:
      Tam Yuk Sang Sammy

                        
	
                          Title:

                        

                

              

            

          

        

      

    

     

    
      
         

      

      
        76

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  TOP
      UNIVERSE MANAGEMENT LIMITED (BVI)

                
	 
      	 
      
	
                  By:

                	
                  /s/
      Hung Kwok Wa

                
	
                  Name:
      Hung Kwok Wa

                
	
                  Title:

                

        

      

    

     

    
      
         

      

      
        77Exhibit
10.1

    

    STOCK
SUBSCRIPTION AGREEMENT

    

    The undersigned, a citizen of the
United States, hereby subscribes for the purchase of eight million (8,000,000)
shares of the common stock (the “Shares”) Omega Water Corp., a Nevada
corporation (the “Corporation”), in exchange for his agreement to act as
President and Chief Executive Officer, and Chairman of the Board of Directors,
of the Corporation, for a term of one year beginning September 1,
2009.

    

    The undersigned is aware that the
Shares have not been registered under the Securities Act of 1933, as amended
(the “Securities Act”), or any state securities laws, in reliance on exemptions
from such registration.  The undersigned understands that reliance by
the Corporation on such exemptions is predicated in part upon the truth and
accuracy of the statements made by the undersigned in this Stock Subscription
Agreement.

    

    The undersigned hereby represents and
warrants that the undersigned:

    

    
      	
               
      

            	
              (i)

            	
              either
      alone or with the assistance of the undersigned’s professional advisors,
      has such knowledge and experience in financial and business matters that
      the undersigned is capable of evaluating the merits and risks of the
      undersigned’s purchase of the
Shares;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              has
      sufficient financial resources to be able to bear the risk of the
      undersigned’s investment in the Shares;
and

            

    

    

    
      	
               
      

            	
              (iii)

            	
              has
      either spoken or met with, or been given reasonable opportunity to speak
      with or meet with, representatives of the Corporation for the purpose of
      asking questions of, and receiving answers and information from, such
      representatives concerning the undersigned’s investment in the
      Shares.

            

    

    

    The
undersigned hereby represents and warrants that the undersigned is purchasing
the Shares for the undersigned’s own account for investment purposes and not
with a view toward the sale or distribution of all or any part of the
Shares.  No one other than the undersigned has any beneficial interest
in the Shares, except as provided by applicable community property
laws.

    

    The
undersigned understands that because the Shares have not been registered under
the Securities Act, (i) the Shares have the status of securities acquired in a
transaction under Section 4(2) of the Securities Act; and (ii) the Shares cannot
be sold unless the Shares are subsequently registered or an exemption from
registration is available.

    

    The
undersigned agrees that the undersigned will in no event sell or distribute all
or any part of the Shares unless (i) there is an effective registration
statement under the Securities Act and applicable state securities laws covering
any such transaction involving the Shares, or (ii) the Corporation receives an
opinion of the undersigned’s legal counsel, in form acceptable to the
Corporation, stating that such transaction is exempt from registration, or (iii)
the Corporation otherwise satisfies itself that such transaction is exempt from
registration.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The undersigned consents to (i) the
placing of the legend set forth below on the certificate representing the Shares
stating that the Shares have not been registered and setting for the restriction
on transfer contemplated hereby and (ii) the placing of a stop transfer order on
the books of the Corporation and with any transfer agents against the
Shares.

    

    The following legend shall be placed on
certificates representing the Shares:

    

    THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE
SECURITIES LAW, AND NO INTEREST THEREIN MAY BE SOLD, DISTRIBUTED, ASSIGNED,
OFFERED, PLEDGED OR OTHERWISE TRANSFERRED OR DISPOSED OF UNLESS (A) THERE IS AN
EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE UNITED STATES AND
STATE SECURITIES LAWS COVERING ANY SUCH TRANSACTION INVOLVING SAID SECURITIES,
OR (B) THIS CORPORATION RECEIVES AN OPINION OF LEGAL COUNSEL FOR THE HOLDER OF
THESE SECURITIES (CONCURRED IN BY LEGAL COUNSEL FOR THIS CORPORATION) STATING
THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION, OR (C) THIS CORPORATION
OTHERWISE SATISFIES ITSELF THAT SUCH TRANSACTION IS EXEMPT FROM
REGISTRATION.

    

    The
undersigned understands that at the present time Rule 144 promulgated under the
Securities Act may not relied upon does not have securities registered pursuant
to Section 12 of the Securities Exchange Act of 1934, as amended, for the resale
or distribution of the Shares by the undersigned because the Corporation does
not file current or periodic reports with the Securities and Exchange Commission
or make information about the Corporation publicly available, and there is no
public market for the Shares.  Moreover, there can be no assurance
that the Corporation will in the future register securities, file such reports
or make publicly available such information, or that a public market for the
Shares will develop.

    

    The
undersigned understands that the Corporation has no obligation to the
undersigned to register the Shares under the Securities Act and has not
represented to the undersigned that it will register the Shares.

    

    [Signature
Page Follows]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    I HAVE CAREFULLY READ THE FOREGOING AND
UNDERSTAND THAT IT RELATES TO RESTRICTIONS UPON MY ABILITY TO SELL AND/OR
TRANSFER THE SHARES.

    

    
      
        
          
            	
                    Dated:  August
      28, 2009

                  	 
      	 
      
	 	 	 
	 
      	
                    By:

                  	
                    /s/ Aris Giannopoulos

                  
	 
      	 
      	
                    Name:  Aris
      Giannopoulos

                  

          

        

      

    

    

    ACCEPTANCE

    

    The foregoing Subscription Agreement
and the consideration reflected therein are hereby accepted.

    

    Dated:  August 28,
2009

    

    OMEGA
WATER CORP.

    

    
      
        
          	
                  By:

                	
                  /s/ Aris Giannopoulos

                	 
      
	 
      	
                  Name:

                	
                  Aris
      Giannopoulos

                	 
      
	 
      	
                  Title:

                	
                  President
      and Chief Executive
Officer

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