Document:

Exhibit 10.1

                            SHARE EXCHANGE AGREEMENT

                 Heng Xing Technology Group Development Limited

                               FOR THE EXCHANGE OF

                                  CAPITAL STOCK

                                       OF

                      CHINA INTERNATIONAL ENTERPRISES CORP.

                          DATED AS OF JANUARY 31, 2005

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                            SHARE EXCHANGE AGREEMENT

      This SHARE EXCHANGE AGREEMENT, dated as of January 31, 2005, (the
"Agreement") by and among CHINA INTERNATIONAL ENTERPRISES CORP., a Delaware
corporation ("CIEC"), Heng Xing Technology Group Development Limited
(hereinafter "XHT"), incorporated under the laws of the British Virgin Islands,
and all of the shareholders of XHT, whose names and addresses are set forth on
Exhibit A attached hereto ("SHAREHOLDERS")

      WHEREAS, CIEC is a newly formed Delaware corporation;

      WHEREAS, SHAREHOLDERS own 100% of the issued and outstanding shares of
Common Stock, par value $1.00 per share, of XHT (the " XHT Shares");

      WHEREAS, XHT owns 100% of the issued and outstanding shares of Shenzhen
Hengtaifeng Technology Co., Ltd., (hereinafter referred to as "HFT") a company
organized under the laws of China, located at No. 5, Floor 6, Block A, Skyworth
Building, Hi-tech Industrial Park, Nanshan District, Shenzhen, 518057, P.R.
China; and

      WHEREAS, SHAREHOLDERS believe it is in their best interest to exchange the
XHT Shares for shares of the Common Stock, par value $.001 per share, of CIEC
("CIEC Shares"), and CIEC believes it is in its best interests to acquire the
XHT Shares in exchange for CIEC Shares, upon the terms and subject to the
conditions set forth in this Agreement;

      WHEREAS, the parties desire this to be a tax-free exchange under the
United States Internal Revenue Code of 1986, as amended, as of the date of this
Agreement;

      NOW, THEREFORE, in consideration of the mutual terms, conditions and other
agreements set forth herein, the parties hereto hereby agree as follows:

                                    ARTICLE I

                       EXCHANGE OF SHARES FOR COMMON STOCK

      Section 1.1 Agreement to Exchange Shares for Common Stock. On the Closing
Date (as hereinafter defined) and upon the terms and subject to the conditions
set forth in this Agreement, SHAREHOLDERS shall sell, assign, transfer, convey
and deliver the XHT Shares (representing 50,000 XHT Shares or 100% of the issued
and outstanding XHT Shares), to CIEC, and CIEC shall accept the XHT Shares from
the SHAREHOLDERS in exchange for the issuance to the SHAREHOLDERS of the number
of CIEC Shares set forth opposite the names of the SHAREHOLDERS on Exhibit A
hereto.

      Section 1.2 Capitalization. On the Closing Date, immediately before the
transactions to be consummated pursuant to this Agreement, CIEC shall have
authorized (a) Sixty Million (60,000,000) CIEC Shares, of which 1,080,000 CIEC
Shares have been issued and will be outstanding, and (b) One Million (1,000,000)

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shares of Preferred Stock, par value .001 per share, none of which shares shall
be issued and outstanding.

      Section 1.3 Closing. The closing of the exchange to be made pursuant to
this Agreement (the "Closing") shall take place at 10:00 a.m. E.S.T. on the
second business day after the conditions to closing set forth in Articles VI and
VII have been satisfied or waived, or at such other time and date as the parties
hereto shall agree in writing (the "Closing Date"), at the offices of Guzov
Ofsink Flink, LLC, 600 Madison Avenue, 14th Floor, New York, New York 10022. At
the Closing, SHAREHOLDERS shall deliver to CIEC the stock certificates
representing 100% of the XHT Shares, duly endorsed in blank for transfer or
accompanied by appropriate stock powers duly executed in blank. In full
consideration and exchange for the XHT Shares, CIEC shall issue and exchange
with SHAREHOLDERS 9,000,000 CIEC Shares , representing 83.33% of the issued and
outstanding common stock of CIEC giving effect to the issuance of the CIEC
Shares pursuant to this Agreement.

                                   ARTICLE II

                     REPRESENTATIONS AND WARRANTIES OF CIEC

      CIEC hereby jointly and severally represents, warrants and agrees as
follows:

      Section 2.1 Corporate Organization

            a. CIEC is a corporation duly organized, validly existing and in
good standing under the laws of Delaware, and has all requisite corporate power
and authority to own its properties and assets and to conduct its business as
now conducted and is duly qualified to do business in good standing in each
jurisdiction in which the nature of the business conducted by CIEC or the
ownership or leasing of its properties makes such qualification and being in
good standing necessary, except where the failure to be so qualified and in good
standing will not have a material adverse effect on the business, operations,
properties, assets, condition or results of operation of CIEC (a "CIEC Material
Adverse Effect");

            b. Copies of the Articles of Incorporation and By-laws of CIEC, with
all amendments thereto to the date hereof, have been furnished to XHT, and such
copies are accurate and complete as of the date hereof. The minute books of CIEC
are current as required by law, contain the minutes of all meetings of the Board
of Directors of CIEC from its date of incorporation to the date of this
Agreement, and adequately reflect all material actions taken by the Board of
Directors of CIEC.

      Section 2.2 Capitalization of CIEC. The authorized capital stock of CIEC
consists of Sixty Million (60,000,000) Shares of common stock, $0.001 par value
per share, of which 1,080,000 shares are issued and outstanding, and One Million
(1,000,000) Shares of Preferred Stock, par value per share .001 authorized, none
of which shares are issued or outstanding. The parties agree that they have been
informed of the issuances of these CIEC Shares, and that all such issuances will

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be in accordance with the provisions of this Agreement. All of the CIEC Shares
to be issued immediately after the Closing have been duly authorized and will be
validly issued, fully paid and non-assessable and no personal liability will
attach to the ownership thereof. The CIEC Shares are the sole outstanding shares
of capital stock of CIEC, and there are no outstanding options, warrants,
agreements, commitments, conversion rights, preemptive rights or other rights to
subscribe for, purchase or otherwise acquire any shares of capital stock or any
un-issued or treasury shares of capital stock of CIEC, except as set forth on
Schedule 2.2 hereto.

      Section 2.3 Subsidiaries and Equity Investments. CIEC has no subsidiaries
or equity interest in any corporation, partnership or joint venture, except as
set forth in Schedule 2.3 hereto.

      Section 2.4 Authorization and Validity of Agreements. CIEC has all
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 by CIEC and the
consummation by CIEC of the transactions contemplated hereby have been duly
authorized by all necessary corporate action of CIEC, and no other corporate
proceedings on the part of CIEC are necessary to authorize this Agreement or to
consummate the transactions contemplated hereby.

      Section 2.5 No Conflict or Violation. The execution, delivery and
performance of this Agreement by CIEC does not and will not violate or conflict
with any provision of the Articles of Incorporation or By-laws of CIEC, and does
not and will not violate any provision of law, or any order, judgment or decree
of any court or other governmental or regulatory authority, nor violate nor will
result in a breach of or constitute (with due notice or lapse of time or both) a
default under, or give to any other entity any right of termination, amendment,
acceleration or cancellation of, any contract, lease, loan agreement, mortgage,
security agreement, trust indenture or other agreement or instrument to which
CIEC is a party or by which it is bound or to which any of their respective
properties or assets is subject, nor will it result in the creation or
imposition of any lien, charge or encumbrance of any kind whatsoever upon any of
the properties or assets of CIEC, nor will it result in the cancellation,
modification, revocation or suspension of any of the licenses, franchises,
permits to which CIEC is bound.

      Section 2.6 Consents and Approvals. Schedule 2.6 sets forth a true and
complete list of each consent, waiver, authorization or approval of any
governmental or regulatory authority, domestic or foreign, or of any other
person, firm or corporation, and each declaration to or filing or registration
with any such governmental or regulatory authority, that is required in
connection with the execution and delivery of this Agreement by CIEC or the
performance by CIEC of its obligations hereunder.

      Section 2.7 Absence of Certain Changes or Events. Since its inception and
except as set forth on Schedule 2.7:

      a.    CIEC has operated in the ordinary course of business consistent with
            past practice and there has not been any material adverse change in
            the assets, properties, business, operations, prospects, net income

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            or condition, financial or otherwise of CIEC. As of the date of this
            Agreement, CIEC does not know or have reason to know of any event,
            condition, circumstance or prospective development which threatens
            or may threaten to have a material adverse effect on the assets,
            properties, operations, prospects, net income or financial condition
            of CIEC;

      b.    there has not been any declaration, setting aside or payment of
            dividends or distributions with respect to shares of capital stock
            of CIEC or any redemption, purchase or other acquisition of any
            capital stock of CIEC or any other of CIEC'S securities; and

      c.    there has not been an increase in the compensation payable or to
            become payable to any director or officer of CIEC.

      Section 2.8 Tax Matters. All returns, reports, or information returns or
other documents (including any relating or supporting information) required to
be filed before the Closing in respect of CIEC has been filed, are true,
complete and correct and filed timely and CIEC has paid, accrued or otherwise
adequately reserved for the payment of all Taxes required to be paid in respect
of the periods covered by such returns and has adequately reserved for the
payment of all Taxes with respect to periods ended on or before the Closing for
which tax returns have not yet been filed. All Taxes of CIEC have been paid or
adequately provided for and CIEC does not know or have any reason to know of any
proposed additional tax assessment against CIEC not adequately provided for in
the Financial Statements. No deficiency for any Taxes has been asserted or
assessed by a taxing authority against CIEC and there is no outstanding audit
examination, deficiency or refund litigation with respect to any Taxes of CIEC.
In the ordinary course, CIEC makes adequate provision on its books for the
payment of Taxes (including for any fiscal period which will include the date of
this Agreement) owed by CIEC. CIEC has not executed an extension or waiver of
any statute of limitations on the assessment or collection of tax that is
currently in effect.

      To the best of the knowledge of CIEC, there are no outstanding or
contingent tax liabilities for incorrect treatment of income and expenses of
CIEC. CIEC has not (a) waived any statute of limitations; (b) agreed to any
extension of the period for assessment or collection; or (c) executed or filed
any power of attorney with respect to any Taxes, which waiver, agreement or
power of attorney is currently in force.

      "Taxes" shall, for purposes of this Agreement, mean all taxes, however
denominated, including any interest, penalties or addition to tax that may
become payable in respect thereof, imposed by any governmental body which taxes
shall include, without limiting the generality of the foregoing, all income
taxes, payroll and employee withholding taxes, unemployment insurance, social
security, sales and use taxes, excise taxes, franchise taxes, receipts taxes,
occupations taxes, real and personal property taxes, stamp taxes, transfer
taxes, workman's compensation taxes and any other obligation of the same or a
similar nature.

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      Section 2.9. Absence of Undisclosed Liabilities. Except as set forth on
Schedule 2.9, CIEC has no indebtedness or liability, absolute or contingent,
known or unknown.

      Section 2.10. Interests in Real Property. CIEC does not own any item of
real property nor does it rent any property other than as set forth in Schedule
2.10(a). Attached as Schedule 2.10(b) is a list of all accounts payable and
liabilities as of CIEC as of the date of this Agreement.

      Section 2.11 Personal Property. CIEC owns all personal property ("CIEC
Personal Property") purported to be owned by it as of the date hereof, in each
case free and clear of all liens, except for those liens described in Schedule
2.11.

      Section 2.12 Compliance with Law. The operations of CIEC have been
conducted in accordance with all applicable laws, regulations, orders and other
requirements of all courts and other governmental or regulatory authorities
having jurisdiction over CIEC and its assets, properties and operations. CIEC
has not received notice of any violation of any such law, regulation, order or
other legal requirement, and is not in default with respect to any order, writ,
judgment, award, injunction or decree of any national, state or local court or
governmental or regulatory authority or arbitrator, domestic or foreign,
applicable to CIEC or any of its assets, properties or operations.

      Section 2.13. Litigation. Except as set forth on Schedule 2.13, there are
no claims, actions, suits, proceedings, labor disputes or investigations pending
or, to the best knowledge of CIEC, threatened before any federal, state or local
court or governmental or regulatory authority, domestic or foreign, or before
any arbitrator of any nature, brought by or against CIEC or any of its officers,
directors, employees, agents or affiliates involving, affecting or relating to
any assets, properties or operations of CIEC or the transactions contemplated by
this Agreement, nor is any basis known to it for any such action, suit,
proceeding or investigation. Schedule 2.13 sets forth a list and a summary
description of all such pending actions, suits, proceedings, disputes or
investigations. Neither CIEC nor any of its assets or properties is subject to
any order, writ, judgment, award, injunction or decree of any country, judicial,
state or local court or governmental or regulatory authority or arbitrator.

      Section 2.14 Contracts. Schedule 2.14 sets forth a true and complete list
of all material contracts, agreements and other instruments to which CIEC is a
party or otherwise relating to or affecting any of its assets, properties or
operations.

      Section 2.15 Employee Plans. Schedule 2.15 lists every pension, savings,
retirement, severance health, insurance or other employee benefit plan
(collectively referred to herein as the "Plans") which CIEC maintains, or has
any obligation to contribute to and CIEC is in compliance with such Plans.

      Section 2.16 Insurance. Schedule 2.16 lists the insurance and the
aggregate coverage amount and type and generally applicable deductibles of all
policies of title, liability, fire, casualty, business interruption, workers'
compensation, disability and other forms of insurance insuring the properties,
assets and operations of the business of CIEC.

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      Section 2.17 Labor Matters. CIEC is not a party to any outstanding
employment agreements or contracts with officers, directors or employees that
are not terminable at will, or that provide for the payment of any bonus or
commission.

      Section 2.18 Related Party Transactions. Except as set forth on Schedule
2.18, no shareholder or affiliate of CIEC has borrowed any moneys from or has
outstanding any indebtedness or other similar obligations to CIEC. Except as set
forth in Schedule 2.18, no shareholder or affiliate of CIEC, nor any officer or
employee of any of them (i) owns any direct or indirect interest of any kind in,
or controls or is a director, officer, employee or partner of, or consultant to,
or lender to or borrower from or has the right to participate in the profits of,
any person which is (a) a competitor, supplier, customer, landlord, tenant,
creditor or debtor of CIEC, (b) engaged in a business related to the business of
CIEC, or (c) a participant in any transaction to which CIEC is a party or is a
party to any contract with CIEC.

      Section 2.19 Banks. Schedule 2.19 contains a complete and correct list of
the names and locations of all banks in which CIEC has accounts or safe deposit
boxes and the names of all persons authorized to draw thereon or to have access
thereto. Except as set forth on Schedule 2.19, no person holds a power of
attorney to act on behalf of CIEC.

      Section 2.20 Disclosure. This Agreement, the schedules hereto and any
certificate attached hereto or delivered in accordance with the terms hereby by
or on behalf of CIEC in connection with the transactions contemplated by this
Agreement, when taken together, do not contain any untrue statement of a
material fact or omit any material fact necessary in order to make the
statements contained herein and/or therein not misleading.

      Section 2.21 Survival. Each of the representations and warranties set
forth in this Article II shall be deemed represented and made by CIEC at the
Closing as if made at such time and shall survive the Closing for a period
terminating on the second anniversary of the date of this Agreement.

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                                   ARTICLE III

             REPRESENTATIONS AND WARRANTIES OF XHT AND SHAREHOLDERS

      XHT, as to itself and as to HFT, and each of the SHAREHOLDERS, severally,
represent, warrant and agree as follows:

      Section 3.1 Corporate Organization.

                  a. XHT is a corporation duly organized, validly existing and
            in good standing under the laws of the Territory of the British
            Virgin Islands and has all requisite corporate power and authority
            to own its properties and assets and to conduct its business as now
            conducted and is duly qualified to do business in good standing in
            each jurisdiction in where the nature of the business conducted by
            XHT or the ownership or leasing of its properties makes such
            qualification and being in good standing necessary, except where the
            failure to be so qualified and in good standing will not have a
            material adverse effect on the business, operations, properties,
            assets, condition or results of operation of XHT (an "XHT Material
            Adverse Effect").

                  b. Copies of the Articles of Incorporation and By-laws of XHT,
            with all amendments thereto to the date hereof, have been furnished
            to CIEC, and such copies are accurate and complete as of the date
            hereof. The minute books of XHT are current as required by law,
            contain the minutes of all meetings of the Board of Directors of
            XHT, and committees of the Board of Directors of XHT from the date
            of incorporation to the date of this Agreement, and adequately
            reflect all material actions taken by the Board of Directors and
            committees of the Board of Directors of XHT.

      Section 3.2 Capitalization of XHT; Title to the XHT Shares. The authorized
capital stock of XHT consists of 50,000 shares of common stock, $1.00 par value
per share, of which 100 shares are issued and outstanding. The XHT Shares are
the sole outstanding shares of capital stock of XHT, and there are no
outstanding options, warrants, agreements, commitments, conversion rights,
preemptive rights or other rights to subscribe for, purchase or otherwise
acquire any shares of capital stock or any un-issued or treasury shares of
capital stock of XHT.

      Section 3.3 Subsidiaries and Equity Investments.

                  a. Schedule 3.3 sets forth: (i) the name of each corporation
            of which XHT will own at the date of Closing, directly or
            indirectly, shares of capital stock having in the aggregate 10% or
            more of the total combined voting power of the issued and
            outstanding shares of capital stock entitled to vote generally in
            the election of directors of such corporation (hereinafter referred
            to collectively as "Subsidiaries" and individually as a
            "Subsidiary") (ii) the name of each corporation, partnership, joint

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            venture or other entity (other than the Subsidiaries) in which XHT
            has, or pursuant to any agreement has the right to acquire at any
            time by any means, directly or indirectly, an equity interest or
            investment; (iii) in the case of each of such corporations described
            in clauses (i) and (ii) above, (A) the jurisdiction of
            incorporation, (B) the capitalization thereof and the percentage of
            each class of capital voting stock owned by XHT, (C) a description
            of any contractual limitations on the holder's ability to vote or
            alienate such securities, (D) a description of any outstanding
            options or other rights to acquire securities of such corporation,
            and (E) a description of any other contractual provision to which
            XHT is subject which would materially limit or impair any of XHT's
            ownership of such entity or interest or its ability to effectively
            exercise the full rights of ownership of such entity or interest;
            and (iv) in the case of each of such unincorporated entities,
            information substantially equivalent to that provided pursuant to
            clause (iii) above with regard to corporate entities.

                  b. Each Subsidiary is a corporation duly organized, validly
            existing and in good standing under the laws of its jurisdiction of
            incorporation and has all requisite corporate power and authority to
            own its properties and assets and to conduct its business as now
            conducted. Each Subsidiary is duly qualified to do business as a
            foreign corporation in every jurisdiction in which the character of
            the properties owned or leased by it or the nature of the business
            conducted by it makes such qualification necessary and is duly
            qualified to do business in good standing in each jurisdiction in
            where the nature of the business conducted by XHT or the ownership
            or leasing of its properties makes such qualification and being in
            good standing necessary, except where the failure to be so qualified
            and in good standing will not have a material adverse effect on the
            business, operations, properties, assets, condition or results of
            operation of XHT. All the outstanding shares of capital stock of
            each Subsidiary have been duly authorized and validly issued, are
            fully paid and non-assessable. XHT owns of record and beneficially
            such amounts of securities of the Subsidiaries as are identified in
            Schedule 3.3 hereto and, aside from the items identified in Schedule
            3.3, XHT owns such securities free and clear of any liens, claims,
            charges, security interests or other legal or equitable
            encumbrances, limitations or restrictions. There are no outstanding
            options, warrants, agreements, conversion rights, preemptive rights
            or other rights to subscribe for, purchase or otherwise acquire any
            issued or unissued shares of capital stock of any Subsidiary.

      Section 3.4 Authorization and Validity of Agreements. XHT has all
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 by XHT and the consummation
of the transactions contemplated hereby have been duly authorized by all
necessary corporate action and no other corporate proceedings on the part of XHT
are necessary to authorize this Agreement or to consummate the transactions
contemplated hereby. The execution and delivery of this Agreement by each
SHAREHOLDER which is not a natural person ("Entity Shareholder") and the

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consummation of the transactions contemplated hereby by each Entity Shareholder
have been duly authorized by all necessary action by the Entity Shareholder and
no other proceedings on the part of XHT or any SHAREHOLDER are necessary to
authorize this Agreement or to consummate the transactions contemplated hereby.

      Section 3.5 No Conflict or Violation. Except as otherwise set forth on
Schedule 3.5, the execution, delivery and performance of this Agreement by XHT
or any SHAREHOLDER does not and will not violate or conflict with any provision
of the constating documents of XHT, and does not and will not violate any
provision of law, or any order, judgment or decree of any court or other
governmental or regulatory authority, nor violate nor will result in a breach of
or constitute (with due notice or lapse of time or both) a default under or give
to any other entity any right of termination, amendment, acceleration or
cancellation of any contract, lease, loan agreement, mortgage, security
agreement, trust indenture or other agreement or instrument to which XHT is a
party or by which it is bound or to which any of its respective properties or
assets is subject, nor will result in the creation or imposition of any lien,
charge or encumbrance of any kind whatsoever upon any of the properties or
assets of XHT, nor will result in the cancellation, modification, revocation or
suspension of any of the licenses, franchises, permits to which XHT is bound.

      Section 3.6 XHT Financial Statements. XHT has heretofore furnished to CIEC
audited financial statements of HTF as of and for the years ended on December
31, 2002 and December 31, 2003, accompanied by the reports thereon of HTF's
auditors, and the unaudited financial statements of HTF for the period ended
September 30, 2004 (the "HTF Financial Statements"). The HTF Financial
Statements, including the notes thereto:

            a.    were prepared in accordance with United States generally
                  accepted accounting principles ("US GAAP"); and

            B.    present fairly, in all material respects, the financial
                  position, results of operations and changes in financial
                  position of HTF as of such dates and for the periods then
                  ended.

      Section 3.7. Absence of Certain Changes or Events. Since December 30,
2003, and except:

            i.    as contemplated by this Agreement; or

            ii.   as set forth on Schedule 3.7:

      a.    XHT and HFT have operated in the ordinary course of business
            consistent with past practice and there has not been any material
            adverse change in the assets, properties, business, operations,
            prospects, net income or condition, financial or otherwise of

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            either. XHT does not know or has reason to know of any event,
            condition, circumstance or prospective development which threatens
            or may threaten to have a material adverse effect on the assets,
            properties, operations, prospects, net income or financial condition
            of XHT or HFT;

      b.    There has not been any substantive change in any method of
            accounting or accounting practice of XHT or HFT;

      c.    there have not been any declaration, setting aside or payment of
            dividends or distributions with respect to shares of capital stock
            of XHT or HFT or any redemption, purchase or other acquisition of
            any capital stock of XHT or HFT or any other of their securities;
            and

      d.    there has not been increase in the compensation payable or to become
            payable to any director, officer or employee of XHT or HFT other
            than pursuant to employment agreements or consistent with prior past
            practices.

      Section 3.8 Tax Matters. All returns, reports, or information return or
other document (including any relating or supporting information) required to be
filed before the Closing in respect of XHT and HFT have been filed, and each has
paid, accrued or otherwise adequately reserved for the payment of all Taxes
required to be paid in respect of the periods covered by such returns and has
adequately reserved for the payment of all Taxes with respect to periods ended
on or before the Closing for which tax returns have not yet been filed.

      To the best of the knowledge of XHT and the SHAREHOLDERS, there are no
outstanding or contingent tax liabilities for incorrect treatment of income and
expenses of XHT or HFT. Neither XHT, noir HFT has (a) waived any statute of
limitations; (b) agreed to any extension of the period for assessment or
collection; or (c) executed or filed any power of attorney with respect to any
Taxes, which waiver, agreement or power of attorney is currently in force.

      Section 3.9 Absence of Undisclosed Liabilities. Except as set forth on
Schedule 3.9, XHT and HFT have no indebtedness or liability, absolute or
contingent, known or unknown, which is not shown or provided for on the balance
sheet of HTF as of September 30, 2004 (the "HTF Balance Sheet Date"), other than
liabilities incurred or accrued in the ordinary course of business since the HTF
Balance Sheet Date. Except as shown in such balance sheet as of the HTF Balance
Sheet Date or in the notes to the HTF Financial Statements, XHT and HFT are not
directly or indirectly liable upon or with respect to (by discount, repurchase
agreements or otherwise), or obligated in any other way to provide funds in
respect of, or to guarantee or assume, any debt, obligation or dividend of any
person, except endorsements in the ordinary course of business in connection
with the deposit of items for collection.

      Section 3.10 Interests in Real Property. HFT owns all real property
purported to be owned by it as of the date hereof, in each case free and clear
of all liens, except for those liens described in Schedule 3.10.

      Section 3.11 Compliance with Law. The operations of XHT and HFT have been
conducted in accordance with all applicable laws, regulations, orders and other
requirements of all courts and other governmental or regulatory authorities
having jurisdiction over XHT, HFT and their assets, properties and operations,

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including, without limitation, all such laws, regulations, orders and
requirements promulgated by or relating to consumer protection, equal
opportunity, health, environmental protection, architectural barriers to the
handicapped, fire, zoning and building and occupation safety except where such
non-compliance would not have a XHT Material Adverse Effect. XHT and HFT have
not received notice of any violation of any such law, regulation, order or other
legal requirement, and is not in default with respect to any order, writ,
judgment, award, injunction or decree of any national, state or local court or
governmental or regulatory authority or arbitrator, domestic or foreign,
applicable to XHT or HFT or any of their assets, properties or operations.

      Section 3.12 Litigation. Except as disclosed in Schedule 3.12, there are
no claims, actions, suits, proceedings, labor disputes or investigations pending
or, to the best of the XHT'S knowledge, threatened before any federal, state or
local court or governmental or regulatory authority, domestic or foreign, or
before any arbitrator of any nature, brought by or against XHT, HFT or any of
their officers, directors, employees, agents or affiliates involving, affecting
or relating to any assets, properties or operations of XHT or HFT or the
transactions contemplated by this Agreement, nor is any basis known to XHT for
any such action, suit, proceeding or investigation. Schedule 3.12 sets forth a
list and a summary description of all such pending actions, suits, proceedings,
disputes or investigations. Neither XHT, HFT, nor any of their assets or
properties is subject to any order, writ, judgment, award, injunction or decree
of any federal, state or local court or governmental or regulatory authority or
arbitrator, that would have a XHT Material Adverse Effect on its assets,
properties, operations, prospects, net income or financial condition or which
would or might interfere with the transactions contemplated by this Agreement.

      Section 3.13 Investment Intent. The CIEC Shares will be acquired hereunder
solely for the account of the SHAREHOLDERS, for investment, and not with a view
to the resale or distribution thereof.

      Section 3.14 Disclosure. This Agreement, the schedules hereto and any
certificate attached hereto or delivered in accordance with the terms hereby by
or on behalf of XHT or the SHAREHOLDERS in connection with the transactions
contemplated by this Agreement, when taken together, do not contain any untrue
statement of a material fact or omit any material fact necessary in order to
make the statements contained herein and/or therein not misleading.

      Section 3.15 Survival. Each of the representations and warranties set
forth in this Article III shall be deemed represented and made by XHT and the
SHAREHOLDERS at the Closing as if made at such time and shall survive the
Closing for a period terminating on the second anniversary.

                                       12
<PAGE>

                                   ARTICLE IV

                                    COVENANTS

      Section 4.1 Certain Changes and Conduct of Business.

            a. From and after the date of this Agreement and until the Closing
      Date, XHT and HFT shall conduct their business solely in the ordinary
      course consistent with past practices and, in a manner consistent with all
      representations, warranties or covenants of XHT, and without the prior
      written consent of CIEC, XHT and HFT will not, except as required or
      permitted pursuant to the terms hereof:

      i.    make any material change in the conduct of its businesses and/or
            operations or enter into any transaction other than in the ordinary
            course of business consistent with past practices;

      ii.   make any change in its Articles of Incorporation or By-laws; issue
            any additional shares of capital stock or equity securities or grant
            any option, warrant or right to acquire any capital stock or equity
            securities or issue any security convertible into or exchangeable
            for its capital stock or alter in any material term of any of its
            outstanding securities or make any change in its outstanding shares
            of capital stock or its capitalization, whether by reason of a
            reclassification, recapitalization, stock split or combination,
            exchange or readjustment of shares, stock dividend or otherwise;

      iii.  A.    incur, assume or guarantee any indebtedness for borrowed
                  money, issue any notes, bonds, debentures or other corporate
                  securities or grant any option, warrant or right to purchase
                  any thereof, except pursuant to transactions in the ordinary
                  course of business consistent with past practices; or

            B.    issue any securities convertible or exchangeable for debt
                  securities of XHT or HFT;

      iv.   make any sale, assignment, transfer, abandonment or other conveyance
            of any of its assets or any part thereof, except pursuant to
            transactions in the ordinary course of business consistent with past
            practice;

      v.    subject any of its assets, or any part thereof, to any lien or
            suffer such to be imposed other than such liens as may arise in the
            ordinary course of business consistent with past practices by
            operation of law which will not have an XHT Material Adverse Effect;

                                       13
<PAGE>

      vi.   acquire any assets, raw materials or properties, or enter into any
            other transaction, other than in the ordinary course of business
            consistent with past practices;

      vii.  enter into any new (or amend any existing) employee benefit plan,
            program or arrangement or any new (or amend any existing)
            employment, severance or consulting agreement, grant any general
            increase in the compensation of officers or employees (including any
            such increase pursuant to any bonus, pension, profit-sharing or
            other plan or commitment) or grant any increase in the compensation
            payable or to become payable to any employee, except in accordance
            with pre-existing contractual provisions or consistent with past
            practices;

      viii. make or commit to make any material capital expenditures;

      ix.   pay, loan or advance any amount to, or sell, transfer or lease any
            properties or assets to, or enter into any agreement or arrangement
            with, any of its affiliates;

      x.    guarantee any indebtedness for borrowed money or any other
            obligation of any other person;

      xi.   fail to keep in full force and effect insurance comparable in amount
            and scope to coverage maintained by it (or on behalf of it) on the
            date hereof;

      xii.  take any other action that would cause any of the representations
            and warranties made by it in this Agreement not to remain true and
            correct in all material aspect;

      xiii. make any material loan, advance or capital contribution to or
            investment in any person;

      xiv.  make any material change in any method of accounting or accounting
            principle, method, estimate or practice;

      xv.   settle, release or forgive any claim or litigation or waive any
            right;

      xvi.  commit itself to do any of the foregoing.

b.    From and after the date of this Agreement, XHT and HFT will:

      1.    continue to maintain, in all material respects, its properties in

                                       14
<PAGE>

            accordance with present practices in a condition suitable for its
            current use;

      2.    file, when due or required, federal, state, foreign and other tax
            returns and other reports required to be filed and pay when due all
            taxes, assessments, fees and other charges lawfully levied or
            assessed against it, unless the validity thereof is contested in
            good faith and by appropriate proceedings diligently conducted;

      3.    continue to conduct its business in the ordinary course consistent
            with past practices;

      4.    keep its books of account, records and files in the ordinary course
            and in accordance with existing practices; and

      5.    continue to maintain existing business relationships with suppliers.

      Section 4.2 Access to Properties and Records. CIEC shall afford XHT'S
accountants, counsel and authorized representatives, and XHT shall afford to
CIEC'S accountants, counsel and authorized representatives full access during
normal business hours throughout the period prior to the Closing Date (or the
earlier termination of this Agreement) to all of such parties' properties,
books, contracts, commitments and records and, during such period, shall furnish
promptly to the requesting party all other information concerning the other
party's business, properties and personnel as the requesting party may
reasonably request, provided that no investigation or receipt of information
pursuant to this Section 4.2 shall affect any representation or warranty of or
the conditions to the obligations of any party.

      Section 4.3 Negotiations. From and after the date hereof until the earlier
of the Closing or the termination of this Agreement, no party to this Agreement
nor its officers or directors (subject to such director's fiduciary duties) nor
anyone acting on behalf of any party or other persons shall, directly or
indirectly, encourage, solicit, engage in discussions or negotiations with, or
provide any information to, any person, firm, or other entity or group
concerning any merger, sale of substantial assets, purchase or sale of shares of
capital stock or similar transaction involving any party,. A party shall
promptly communicate to any other party any inquiries or communications
concerning any such transaction which they may receive or of which they may
become aware of.

      Section 4.4 Consents and Approvals. The parties shall:

            i.    use their reasonable commercial efforts to obtain all
                  necessary consents, waivers, authorizations and approvals of
                  all governmental and regulatory authorities, domestic and
                  foreign, and of all other persons, firms or corporations
                  required in connection with the execution, delivery and
                  performance by them of this Agreement; and

                                       15
<PAGE>

            ii.   diligently assist and cooperate with each party in preparing
                  and filing all documents required to be submitted by a party
                  to any governmental or regulatory authority, domestic or
                  foreign, in connection with such transactions and in obtaining
                  any governmental consents, waivers, authorizations or
                  approvals which may be required to be obtained connection with
                  such transactions.

      Section 4.5 Public Announcement. Unless otherwise required by applicable
law, the parties hereto shall consult with each other before issuing any press
release or otherwise making any public statements with respect to this Agreement
and shall not issue any such press release or make any such public statement
prior to such consultation..

      Section 4.6 Stock Issuance. From and after the date of this Agreement
until the Closing Date, neither CIEC nor XHT shall issue any additional shares
of its capital stock.

      Section 4.7 Notwithstanding anything to the contrary contained herein, it
is herewith understood and agreed that both CIEC and XHT may enter into and
conclude agreements and/or financing transactions as same relate to and/or are
contemplated by any separate written agreements either: (a) annexed hereto as
exhibits; or (b) entered into by XHT with CIEC executed by both parties
subsequent to the date hereof. These Agreements shall become, immediately upon
execution, part of this Agreement and subject to all warranties, representations
and conditions contained herein.

      Section 4.8 Prior to the Closing CIEC shall adopt By-laws of CIEC which
shall contain provisions to the effect that (a) so long as a nominee of American
Union Securities, Inc. ("AUS") is entitled to have one designee of AUS elected
as a director of CIEC (the "AUS Nominee"), CIEC shall not issue or commit to
issue any securities without the consent of the AUS Nominee and (b) such By-law
provision shall not be amended or deleted without the consent of AUS. The AUS
Nominee shall have been duly elected as a director of CIEC on or prior to the
Closing Date.

                                    ARTICLE V

                        CONDITIONS TO OBLIGATIONS OF XHT

      The obligations of XHT to consummate the transactions contemplated by this
Agreement are subject to the fulfillment, at or before the Closing Date, of the
following conditions, any one or more of which may be waived by XHT in its sole
discretion:

      Section 5.1 Representations and Warranties of CIEC. All representations
and warranties made by CIEC in this Agreement shall be true and correct on and
as of the Closing Date as if again made by CIEC as of such date.

      Section 5.2 Agreements and Covenants. CIEC shall have performed and
complied in all material respects to all agreements and covenants required by

                                       16
<PAGE>

this Agreement to be performed or complied with by it on or prior to the Closing
Date.

      Section 5.3 Consents and Approvals. Consents, waivers, authorizations and
approvals of any governmental or regulatory authority, domestic or foreign, and
of any other person, firm or corporation, required in connection with the
execution, delivery and performance of this Agreement shall be in full force and
effect on the Closing Date.

      Section 5.4 No Violation of Orders. No preliminary or permanent injunction
or other order issued by any court or governmental or regulatory authority,
domestic or foreign, nor any statute, rule, regulation, decree or executive
order promulgated or enacted by any government or governmental or regulatory
authority, which declares this Agreement invalid in any respect or prevents the
consummation of the transactions contemplated hereby, or which materially and
adversely affects the assets, properties, operations, prospects, net income or
financial condition of CIEC shall be in effect; and no action or proceeding
before any court or governmental or regulatory authority, domestic or foreign,
shall have been instituted or threatened by any government or governmental or
regulatory authority, domestic or foreign, or by any other person, or entity
which seeks to prevent or delay the consummation of the transactions
contemplated by this Agreement or which challenges the validity or
enforceability of this Agreement.

      Section 5.5 Other Closing Documents. XHT shall have received such other
certificates, instruments and documents in confirmation of the representations
and warranties of CIEC or in furtherance of the transactions contemplated by
this Agreement as XHT or its counsel may reasonably request.

      Section 5.6 Audited Financial Statements. XHT acknowledges that CIEC has
no operating history and will not provide any audited financial statements.

                                   ARTICLE VI

                        CONDITIONS TO OBLIGATIONS OF CIEC

      The obligations of CIEC to consummate the transactions contemplated by
this Agreement are subject to the fulfillment, at or before the Closing Date, of
the following conditions, any one or more of which may be waived by CIEC in its
sole discretion,.

      Section 6.1 Representations and Warranties of XHT. All representations and
warranties made by XHT in this Agreement shall be true and correct on and as of
the Closing Date as if again made by XHT on and as of such date.

      Section 6.2 Agreements and Covenants. XHT shall have performed and
complied in all material respects to all agreements and covenants required by
this Agreement to be performed or complied with by it on or prior to the Closing
Date.

      Section 6.3 Consents and Approvals. All consents, waivers, authorizations
and approvals of any governmental or regulatory authority, domestic or foreign,

                                       17
<PAGE>

and of any other person, firm or corporation, required in connection with the
execution, delivery and performance of this Agreement, shall have been duly
obtained and shall be in full force and effect on the Closing Date.

      Section 6.4 No Violation of Orders. No preliminary or permanent injunction
or other order issued by any court or other governmental or regulatory
authority, domestic or foreign, nor any statute, rule, regulation, decree or
executive order promulgated or enacted by any government or governmental or
regulatory authority, domestic or foreign, that declares this Agreement invalid
or unenforceable in any respect or which prevents the consummation of the
transactions contemplated hereby, or which materially and adversely affects the
assets, properties, operations, prospects, net income or financial condition of
XHT and its subsidiaries, taken as a whole, shall be in effect; and no action or
proceeding before any court or government or regulatory authority, domestic or
foreign, shall have been instituted or threatened by any government or
governmental or regulatory authority, domestic or foreign, or by any other
person, or entity which seeks to prevent or delay the consummation of the
transactions contemplated by this Agreement or which challenges the validity or
enforceability of this Agreement.

      Section 6.5. Other Closing Documents. CIEC shall have received such other
certificates, instruments and documents in confirmation of the representations
and warranties of XHT or in furtherance of the transactions contemplated by this
Agreement as CIEC or its counsel may reasonably request.

                                   ARTICLE VII

                           TERMINATION AND ABANDONMENT

      SECTION 7.1 Methods of Termination. This Agreement may be terminated and
the transactions contemplated hereby may be abandoned at any time before the
Closing:

            a.    By the mutual written consent of SHAREHOLDERS, CIEC and XHT;

            b.    By XHT, upon a material breach of any representation,
                  warranty, covenant or agreement on the part of CIEC set forth
                  in this Agreement, or if any representation or warranty of
                  CIEC shall become untrue, in either case such that any of the
                  conditions set forth in Article V hereof would not be
                  satisfied (a "CIEC Breach"), and such breach shall, if capable
                  of cure, have not been cured within ten (10) days after
                  receipt by the party in breach of a notice from the
                  non-breaching party setting forth in detail the nature of such
                  breach;

            c.    By CIEC, upon a material breach of any representation,
                  warranty, covenant or agreement on the part of XHT or the
                  SHAREHOLDERS set forth in this Agreement, or, if any

                                       18
<PAGE>

                  representation or warranty of XHT or the SHAREHOLDERS shall
                  become untrue, in either case such that any of the conditions
                  set forth in Article VI hereof would not be satisfied (a "XHT
                  Breach"), and such breach shall, if capable of cure, not have
                  been cured within ten (10) days after receipt by the party in
                  breach of a written notice from the non-breaching party
                  setting forth in detail the nature of such breach;

            d.    By either XHT or CIEC, if the Closing shall not have
                  consummated before ninety (90) days after the date hereof;
                  provided, however, that this Agreement may be extended by
                  written notice of either CIEC or XHT, if the Closing shall not
                  have been consummated as a result of XHT or CIEC having failed
                  to receive all required regulatory approvals or consents with
                  respect to this transaction or as the result of the entering
                  of an order as described in this Agreement; and further
                  provided, however, that the right to terminate this Agreement
                  under this Section 7.1(d) shall not be available to any party
                  whose failure to fulfill any obligations under this Agreement
                  has been the cause of, or resulted in, the failure of the
                  Closing to occur on or before this date.

            e.    By either CIEC or XHT if a court of competent jurisdiction or
                  governmental, regulatory or administrative agency or
                  commission shall have issued an order, decree or ruling or
                  taken any other action (which order, decree or ruling the
                  parties hereto shall use its best efforts to lift), which
                  permanently restrains, enjoins or otherwise prohibits the
                  transactions contemplated by this Agreement.

      Section 7.2 Procedure Upon Termination. In the event of termination and
abandonment of this Agreement by CIEC or XHT pursuant to Section 7.1, written
notice thereof shall forthwith be given to the other parties and this Agreement
shall terminate and the transactions contemplated hereby shall be abandoned,
without further action. If this Agreement is terminated as provided herein, no
party to this Agreement shall have any liability or further obligation to any
other party to this Agreement; provided, however, that no termination of this
Agreement pursuant to this Article VII shall relieve any party of liability for
a breach of any provision of this Agreement occurring before such termination.

                                       19
<PAGE>

                                  ARTICLE VIII

                             POST-CLOSING AGREEMENTS

      Section 8.1 Consistency in Reporting. Each party hereto agrees that:

            i.    the transaction is intended to qualify as a tax-free
                  transaction under the Code;

            ii.   if the characterization of any transaction contemplated in
                  this agreement or any ancillary or collateral transaction is
                  challenged, each party hereto will testify, affirm and ratify
                  that the characterization contemplated in such agreement was
                  with the characterization intended by the party; provided,
                  however, that nothing herein shall be construed as giving rise
                  to any obligation if the reporting position is determined to
                  be incorrect by final decision of a court of competent
                  jurisdiction.

      Section 8.2 Indemnification.

      a.    Obligation of CIEC to Indemnify. CIEC hereby agrees to indemnify,
            defend and hold harmless XHT, the SHAREHOLDERS and their respective
            directors, officers, equity holders, agents, affiliates, successors
            and permitted assigns or each of them from and against, and shall
            pay and/or reimburse the foregoing persons for, any and all losses,
            liabilities, claims, obligations, damages and costs and expenses
            (including reasonable attorneys' fees and disbursements and other
            costs incurred or sustained by an Indemnitee (as defined below) in
            connection with the investigation, defense or prosecution of any
            such claim or any action or proceeding between the Indemnitee and
            the Indemnifying Party (as defined below) or between the Indemnitee
            and any third party or otherwise), whether or not involving a
            third-party claim (collectively, "Losses"), relating to or arising
            out of the breach of any representation, warranty, covenant or
            agreement of CIEC hereunder.

      b.    Obligation of XHT to Indemnify. XHT and the SHAREHOLDERS shall
            jointly and severally indemnify, defend and hold harmless CIEC and
            its directors, officers, shareholders, agents, affiliates,
            successors and permitted assigns from and against, and shall pay
            and/or reimburse the foregoing persons for, any and all Losses
            relating to or arising out of the breach of any representation,
            warranty, covenant or agreement of XHT or the SHAREHOLDERS contained
            in this Agreement.

      c.    Notice to Indemnifying Party. If any party (the "Indemnitee")
            receives notice of any claim or the commencement of any action or
            proceeding with respect to which the other party (or parties) is
            obligated to provide indemnification (the "Indemnifying Party")
            pursuant to Sections 8.2(a) or 8.2(b) hereof, the Indemnitee shall
            give the Indemnifying Party written notice thereof within a
            reasonable period of time following the Indemnitee's receipt of such
            notice. Such notice shall describe the claim in reasonable detail
            and shall indicate the amount (estimated if necessary) of the Losses
            that have been or may be sustained by the Indemnitee. The
            Indemnifying Party may, subject to the other provisions of this
            Section 8.2(c), compromise or defend, at such Indemnifying Party's
            own expense and by such Indemnifying Party's own counsel, any such
            matter involving the asserted liability of the Indemnitee in respect

                                       20
<PAGE>

            of a third-party claim. If the Indemnifying Party elects to
            compromise or defend such asserted liability, it shall within thirty
            (30) days (or sooner, if the nature of the asserted liability so
            requires) notify the Indemnitee of its intent to do so, and the
            Indemnitee, shall reasonably cooperate, at the request and
            reasonable expense of the Indemnifying Party, in the compromise of,
            or defense against, such asserted liability. The Indemnifying Party
            will not be released from any obligation to indemnify the Indemnitee
            hereunder with respect to a claim without the prior written consent
            of the Indemnitee, unless the Indemnifying Party delivers to the
            Indemnitee a duly executed agreement settling or compromising such
            claim with no monetary liability to or injunctive relief against the
            Indemnitee and a complete release of the Indemnitee with respect
            thereto. The Indemnifying Party shall have the right to conduct and
            control the defense of any third-party claim made for which it has
            been provided notice hereunder. All costs and fees incurred with
            respect to any such claim will be borne by the Indemnifying Party.
            The Indemnitee will have the right to participate, but not control,
            at its own expense, the defense or settlement of any such claim;
            provided, that if the Indemnitee and the Indemnifying Party shall
            have conflicting claims or defenses, the Indemnifying Party shall
            not have control of such conflicting claims or defenses and the
            Indemnitee shall be entitled to appoint a separate counsel for such
            claims and defenses at the cost and expense of the Indemnifying
            Party. If the Indemnifying Party chooses to defend any claim, the
            Indemnitee shall make available to the Indemnifying Party any books,
            records or other documents within its control that are reasonably
            required for such defense.

      d.    Adjustment to Indemnification. Notwithstanding anything contained in
            this Section 8.2 to the contrary, no Indemnifying Party will be
            obligated to indemnify an Indemnitee and hold it harmless from and
            against any punitive, consequential or indirect damages, or any
            asserted or established claim for any damages which provides for
            recovery based on any multiple of losses, multiple of lost profits
            or multiple of lost anticipated profits. The determination of any
            loss for which indemnification may be claimed under this Section 8.2
            shall be net of any tax (or other) benefit derived, insurance
            proceeds or third party reimbursement received or recoverable (but
            adjusted for any tax incurred as a result of the receipt of such
            amounts) by the party bearing such liability, claim, lien,
            encumbrance, charge, fine or penalty as a result thereof. The sole
            remedy of the parties hereto for any and all claims of the nature
            described in this Section 8.2 hereof shall be the indemnity set
            forth in such section.

      Section 8.3 Registration of Resale of CIEC Shares by SHAREHOLDERS. Within
a reasonable time after the Closing Date, CIEC shall file a registration
statement with the SEC to to register for resale all of the CIEC Shares acquired
by the SHAREHOLDERS pursuant to this Agreement. CIEC shall bear all costs in
connection such registration of the CIEC Shares, except underwriting discounts
and commissions. CIEC shall use its best efforts to have the registration
statement declared effective by the SEC within 150 days after the Closing Date

                                       21
<PAGE>

and to keep such registration statement effective for a period ending two years
after the Closing Date. CIEC and the SHAREHOLDERS agree to exchange all
customary indemnification covenants in connection with the registration
statement and to provide all necessary cooperation in connection with the
preparation and filing of the registration statement.

      Section 8.4 AUS Nominee and Board Observer Rights. For a period commencing
on the Closing Date and ending on the first anniversary thereof, AUS shall be
entitled to nominate for election to the Board of Directors of CIEC one person.
CIEC and the SHAREHOLDERS shall cause the nominee to be elected on or prior to
the Closing Date, and if for any reason from time to time AUS shall desire to
change the AUS Nominee, to use their best efforts to promptly elect the new
designee of AUS. So long as the AUS and its officers, directors and employees
continues to own CIEC Shares which constitute 5% or more of the outstanding CIEC
Shares and a designee of AUS is not then a director of CIEC, CIEC agrees that
AUS shall have the right to appoint a non-voting representative (the "Observer")
to attend meetings of the Board of Directors of CIEC, to change the
representative so appointed at any time and, upon the resignation of such
representative for any reason, to reappoint such a representative. CIEC shall
provide the Observer with a copy of any materials to be distributed or discussed
at such meetings at the same time as provided to members of the Board. Nothing
herein shall require CIEC to change the place or time of any meeting for which
notice has been provided by CIEC to the Observer simultaneously with that
provided to CIEC's directors

                                   ARTICLE IX

                            MISCELLANEOUS PROVISIONS

      Section 9.1 Survival of Provisions. The respective representations,
warranties, covenants and agreements of each of the parties to this Agreement
(except covenants and agreements which are expressly required to be performed
and are performed in full on or before the Closing Date) shall survive the
Closing Date and the consummation of the transactions contemplated by this
Agreement, subject to Sections 2.21, 3.15 and 8.2. In the event of a breach of
any of such representations, warranties or covenants, the party to whom such
representations, warranties or covenants have been made shall have all rights
and remedies for such breach available to it under the provisions of this
Agreement or otherwise, whether at law or in equity, regardless of any
disclosure to, or investigation made by or on behalf of such party on or before
the Closing Date.

      Section 9.2 Publicity. No party shall cause the publication of any press
release or other announcement with respect to this Agreement or the transactions
contemplated hereby without the consent of the other parties, unless a press
release or announcement is required by law. If any such announcement or other
disclosure is required by law, the disclosing party agrees to give the
non-disclosing parties prior notice and an opportunity to comment on the
proposed disclosure.

      Section 9.3 Successors and Assigns. . This Agreement shall inure to the
benefit of, and be binding upon, the parties hereto and their respective
successors and assigns; provided, however, that no party shall assign or

                                       22
<PAGE>

delegate any of the obligations created under this Agreement without the prior
written consent of the other parties.

      Section 9.4 Investment Bankers, Financial Advisors, Brokers and Finders.

            a.    CIEC represents and warrants to XHT that it has not employed
                  the services of a broker or finder in connection with this
                  Agreement or any of the transactions contemplated hereby.

            b.    XHT represents and warrants to CIEC that except for Warner
                  Technology and Investment Corp. ("Warner") and AUS, it has not
                  employed the services of an investment banker, financial
                  advisor, broker and finder in connection with this Agreement
                  and transaction. Warner and AUD have received for a nominal
                  consideration an allocation of shares of CIEC. XHT
                  acknowledges and agrees that, except for such allocation of
                  shares, XHT is solely responsible for all fees of XHT and HTF
                  in connection herewith and therewith.

      Section 9.5 Fees and Expenses. Except as otherwise expressly provided in
this Agreement, all legal and other fees, costs and expenses incurred in
connection with this Agreement and the transactions contemplated hereby shall be
paid by the party incurring such fees, costs or expenses.

      Section 9.6 Notices. All notices and other communications given or made
pursuant hereto shall be in writing and shall be deemed to have been given or
made if in writing and delivered personally or sent by registered or certified
mail (postage prepaid, return receipt requested) to the parties at the following
addresses:

      If to XHT, to:

      Mr. Yuan Qing Li
      Heng Xing Technology Group Development Limited, and
      Shenzhen Hengtaifeng Technology Co., Ltd.
      No. 5 Floor 6, Block A
      Skyworth Building
      Hi-tech Industrial Park
      Nanshan District
      Shenzhen 518057 P.R. China

      with a copy to:

      American Union Securities, Inc.
      100 Wall Street, 15th Floor
      New York, New York 10005
      Fax: 212-785-5867

                                       23
<PAGE>

      If to CIEC, to:

      China International Enterprises Corp.
      No. 5 Floor 6, Block A
      Skyworth Building
      Hi-tech Industrial Park
      Nanshan District
      Shenzhen 518057 P.R. China

      Attention: Mr. Yuan Qing Li

      with a copy to:

      American Union Securities, Inc.
      100 Wall Street, 15th Floor
      New York, New York 10005
      Fax: 212-785-5867

or to such other persons or at such other addresses as shall be furnished by any
party by like notice to the others, and such notice or communication shall be
deemed to have been given or made as of the date so delivered or mailed. No
change in any of such addresses shall be effective insofar as notices under this
Section 9.6 are concerned unless such changed address is located in the United
States of America and notice of such change shall have been given to such other
party hereto as provided in this Section 9.6.

      Section 9.7 Entire Agreement. This Agreement, together with the exhibits
hereto, represents the entire agreement and understanding of the parties with
reference to the transactions set forth herein and no representations or
warranties have been made in connection with this Agreement other than those
expressly set forth herein or in the exhibits, certificates and other documents
delivered in accordance herewith. This Agreement supersedes all prior
negotiations, discussions, correspondence, communications, understandings and
agreements between the parties relating to the subject matter of this Agreement
and all prior drafts of this Agreement, all of which are merged into this
Agreement. No prior drafts of this Agreement and no words or phrases from any
such prior drafts shall be admissible into evidence in any action or suit
involving this Agreement.

      Section 9.8 Severability. This Agreement shall be deemed severable, and
the invalidity or unenforceability of any term or provision hereof shall not
affect the validity or enforceability of this Agreement or of any other term or
provision hereof. Furthermore, in lieu of any such invalid or unenforceable term
or provision, the parties hereto intend that there shall be added as a part of
this Agreement a provision as similar in terms to such invalid or unenforceable
provision as may be possible so as to be valid and enforceable.

      Section 9.9 Titles and Headings. The Article and Section headings
contained in this Agreement are solely for convenience of reference and shall

                                       24
<PAGE>

not affect the meaning or interpretation of this Agreement or of any term or
provision hereof.

      Section 9.10 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall be considered one and the same agreement.

      Section 9.11 Convenience of Forum; Consent to Jurisdiction. The parties to
this Agreement, acting for themselves and for their respective successors and
assigns, without regard to domicile, citizenship or residence, hereby expressly
and irrevocably elect as the sole judicial forum for the adjudication of any
matters arising under or in connection with this Agreement, and consent and
subject themselves to the jurisdiction of, the courts of the State of New Jersey
located in County of New York, and/or the United States District Court for the
Southern District of New York, in respect of any matter arising under this
Agreement. Service of process, notices and demands of such courts may be made
upon any party to this Agreement by personal service at any place where it may
be found or giving notice to such party as provided in Section 9.6.

      Section 9.12 Enforcement of the Agreement. The parties hereto agree that
irreparable damage would occur if 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 an
injunction or injunctions to prevent breaches of this Agreement and to enforce
specifically the terms and provisions hereto, this being in addition to any
other remedy to which they are entitled at law or in equity.

      Section 9.13 Governing Law. This Agreement shall be governed by and
interpreted and enforced in accordance with the laws of the State of New Jersey
without giving effect to the choice of law provisions thereof.

      Section 9.14 Third Party Beneficiary. AUS is a third party beneficiary of
this Agreement. Except for AUS, no person is a third party beneficiary of this
Agreement.

                                       25
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.

HENG XING TECHNOLOGY GROUP
DEVELOPMENT LIMITED

By:      /s/ Wu Ying
         ----------------------
Title:   Authorized Signatory

CHINA INTERNATIONAL
ENTERPRISES CORP.

By: /s/ Li Yuan Qing
        ----------------------
        Li Yuan Qing

Title: Chief Executive Officer

By: /s/ Li Yuan Qing
        ----------------------
        Li Yuan Qing

    /s/ Qiu Zhen Liang
        ----------------------
        Qiu Zhen Liang

    /s/ Chen Ling
        ----------------------
        Chen Ling

                                       26
<PAGE>

                                    EXHIBIT A

<TABLE>
<CAPTION>
Name and Address                    Number of XHT Shares         Number of CIEC Shares
of SHAREHOLDER                      Being Exchanged              to be Received
--------------                                                   ---------------------
<S>                                 <C>                          <C>
Li Yuan Qing                                60                       5,400,000
Suite 2911-2912, 29th Floor
Two International Finance Centre
No. 8 Finance Street
Central, Hong Kong

Qiu Zhen Liang                              30                       2,700,000
Building 86-306
Yuanling Xincun
Futian District
Shenzhen, PRC

Chen Ling                                   10                         900,000
5-402 Chiwei Building
South Huaquiang Road
Shenzhen, PRC
</TABLE>

                                       27
<PAGE>

                                    SCHEDULES

2.2   None

2.3   None

2.6   None

2.7   None

2.9   None

2.11  None

2.13  None

2.14  None

2.15  None

2.16  None

2.18  None

2.19  None

3.3   XHT owns 1005 of HFT, a corporation formed in Shenzhen Province, China

3.5   None

3.7   None

3.10  None

3.12  None

                                       28EXHIBIT 10.38

                                LICENSE AGREEMENT

THIS Agreement is made and entered into as of this 21st day of February 2005
(Effective Date), by and between, Patriot Scientific, Inc., a Delaware
corporation, doing business at 10989 Via Frontera, San Diego, California 92127
(hereinafter referred to as PTSC) and Advanced Micro Devices Inc., a Delaware
corporation doing business at 5204 East Ben White Boulevard, Austin, Texas 78741
(hereinafter referred to as LICENSEE) including Spansion Inc. and all current
Affiliates of AMD and Affiliates formed by AMD over the course of this Agreement
for which AMD owns or controls more than 50% of the shares, board seats, or
equity in the entity. This Agreement shall apply to all current AMD Affiliates,
in the same manner it applies to AMD, for the term of this Agreement even if
these legal entities cease in the future to be an "Affiliate" of AMD, as defined
above.

WHEREAS PTSC is the developer of the IGNITE 32-bit microprocessor (hereinafter
referred to as the Licensed Microprocessor), and possesses certain design and
engineering drawings relating thereto, and other confidential and trade secret
information relating to the Register Transfer Level documentation of the IGNITE
microprocessor (hereinafter collectively referred to as the Licensed
Technology).

WHEREAS LICENSEE desires to acquire from PTSC a non-exclusive license to
manufacture, have made, design, and sell products containing the Licensed
Microprocessor.

WHEREAS PTSC is willing to grant such a license upon the terms and conditions
hereinafter set forth.

NOW THEREFORE, for and in consideration of the mutual covenants and agreements
hereinafter contained, the parties hereto mutually covenant and agree as
follows:

1.    License

PTSC hereby grants and agrees to grant to LICENSEE a worldwide, irrevocable,
perpetual, non-exclusive license under LICENSEE's patent, copyright, trade
secret and other intellectual property rights in or related to the Licensed
Technology and Licensed Microprocessor to manufacture, have made, use, import,
create derivatives works of, display, perform, copy, distribute, offer for sell,
and sell any products containing the Licensed Microprocessor or any derivatives
thereof developed by or for LICENSEE or any portion of any of the foregoing
(hereinafter referred to as Products) and engage in any services related
thereto. PTSC hereby grants and agrees to grant to LICENSEE a worldwide,
irrevocable, perpetual, non-exclusive license under LICENSEE's patent,
copyright, trade secret and other intellectual property rights in or related to
the Licensed Technology and Licensed Microprocessor to use and copy the Licensed
Technology, any derivatives thereof, or any portion thereof to make Products or
perform any services as licensed herein. LICENSEE may sublicense the rights set
forth herein only to third parties (e.g., foundry, distributor, design
consultants, benchmark agencies, etc.) that assist LICENSEE in exercising any of
it's licensed rights set forth herein. LICENSEE may use or not use the Licensed
Technology in LICENSEE's sole discretion, and LICENSEE has no obligation to use
the Licensed Technology in any capacity. PTSC agrees to provide all deliverables

                                       1
<PAGE>

to LICENSEE necessary to engage in the licenses and covenants provided herein
and in the separate Patent License. These deliverables include but are not
limited to all Ignite RTL and other high level language implementations, copies
of all GDSII files, gerber files, PCB information, test vectors, packaging
information, design rules, product tooling, special CAD software, databases,
simulation tools, software, compilers, development tools, and any other
information, software, or tangible required to exercise the rights granted
herein. If third party rights are needed to use any such deliverables, PTSC will
assist AMD in contacting such third parties and working with such third parties
to obtain all necessary rights.

2. Licensing Royalties, Payment, Use of License

      2.1 During the term of this Agreement, LICENSEE shall maintain complete
records of Products that are subject to royalty under this Section and are
manufactured, distributed, sold or given away. These records shall be available
for audit, on reasonable notice by a representative of PTSC, per Section 4.

      2.2 Running Royalty. LICENSEE shall aggregate a royalty for every Unit
sold as set forth herein. LICENSEE will aggregate such royalties over each
calendar quarter and shall make payment of such aggregated royalties to PTSC net
forty-five (45) days from the end of each calendar quarter. A royalty under this
Agreement shall only be due for Product that was actively derived and designed
from direct use or incorporation of Licensed Technology or the Licensed
Microprocessor tangibles into the Product. Royalties shall be due for no other
Product and under no other circumstances. The royalty under this Agreement shall
be a royalty of [***]*."Sale" as used in this Section shall include any
commercial units given away by AMD for commercial use by another party, however,
"sale" shall not include the provision of reference design kits (RDKs) or like
development or beta products that are provided for the purpose of trying to
secure subsequent volume sales of Products from a partner or customer. "Sale"
shall also include the consumer end use of Product by AMD internal to their
operations.

      2.3 License Issue Fee and Maintenance Fee. In consideration of the rights
granted herein LICENSEE shall pay to PTSC a License and Maintenance fee of
[***]*. Minimum Royalties. The Parties hereto mutually agree that there shall be
no minimum quarterly royalties.

      2.4 The term Unit, for the purposes of this License Agreement, means an
integrated circuit Product in the form it is advertised and provided to
customers by Licensee. One Product is subject to one royalty regardless of the
extent of Licensed Technology or Licensed Microprocessors used within that one
Product.

      2.5 Withholding Taxes. All amounts owing from LICENSEE to PTSC under the
Agreement and the Patent License are final amounts, and shall not be grossed-up
to account for any withholding taxes, value-added taxes or other taxes, levies
or charges with respect to such amounts, including United States taxes, payable
by LICENSEE, or any taxes required to be withheld by LICENSEE to the extent such
taxes are imposed by reason of LICENSEE having a permanent establishment in any
country or otherwise being subject to taxation by such country.

                                       2
<PAGE>

3.    Reports and Audits

      3.1 Within forty-five days following the end of each calendar quarter
during the term of this agreement, LICENSEE shall deliver to PTSC the
appropriate running royalty payment and a statement duly verified by an
executive of LICENSEE setting forth, in detail, by Product number the specific
number of Units that were manufactured and/or sold during the preceding
quarterly period and subject to royalty. Said detailed statement shall include
all information necessary, in combination with the current price list and
calculations, to justify the amount due for the reporting period. Such royalty
payment shall be made in U.S. dollars. In the event where no royalties are due
for two (2) consecutive quarters and it is reasonable to assume that no more
royalties will be due under this Agreement, then all reporting obligations
placed on LICENSEE under this Agreement shall cease as long as royalties are not
actually accumulating. Should royalties ever start to accumulate again the
future, LICENSEE shall restart quarterly reporting procedures under this
Agreement. AMD only has to begin reporting under this Agreement if the Licensed
Technology or Licensed Microprocessor deliverables begins to be used by AMD in a
commercial manner, else no reporting or payment is required.

      3.2 In the event PTSC elects to audit the reported sales or royalty
payments and/or reports, made by LICENSEE such audits shall only be made after
30 days written notice to LICENSEE by PTSC and shall be conducted at LICENSEE
place of business. Audits cannot be conducted more than once annually.

4.    Confidentiality and Proprietary Rights

      4.1 Confidential Information. For a period of seven (7) years following
first disclosure thereof, each party shall maintain in confidence the
confidential information of the other party (including samples) disclosed by the
other party and identified as, or acknowledged to be confidential (the
"Confidential Information") at the time of disclosure, and shall not use,
disclose or grant the use of the Confidential Information except as licensed
herein or on a need-to-know basis to those directors, officers, affiliates,
employees, permitted licensees, permitted assignees and agents, consultants,
clinical investigators, contractors, or other people or entities reasonably
needed in connection with such party's activities as expressly authorized by the
Agreement. To the extent that disclosure is authorized by the Agreement, prior
to disclosure, each party hereto shall obtain agreement of any such Person to
hold in confidence and not make use of the Confidential Information for any
purpose other than those permitted by the Agreement. Each party shall notify the
other promptly upon discovery of any unauthorized use or disclosure of the other
party's Confidential Information, however, both parties agree to only assert one
of either breach of contract or misappropriation of trade secret claims (not
both) against a party in the event unauthorized use or disclosure of
Confidential Information.

                                       3
<PAGE>

      4.2 Permitted Disclosures. The confidentiality obligations contained in
Section 6.1 above shall not apply to the extent that (a) any receiving party
(the "Recipient") is required (i) to disclose information by law, order or
regulation of a governmental agency or a court of competent jurisdiction, or
(ii) to disclose information to any governmental agency for purposes of
obtaining approval to test or market a product, provided in either case that the
Recipient shall provide written notice thereof to the other party and sufficient
opportunity to object to any such disclosure or to request confidential
treatment thereof; or (b) the Recipient can demonstrate that (i) the disclosed
information was public knowledge at the time of such disclosure to the
Recipient, or thereafter became public knowledge, other than as a result of
actions of the Recipient in violation hereof; (ii) the disclosed information was
rightfully known by the Recipient (as shown by its written records) prior to the
date of disclosure to the Recipient by the other party hereunder; or (iii) the
disclosed information was disclosed to the Recipient on an unrestricted basis
from a source unrelated to any party to the Agreement and not under a duty of
confidentiality to the other party.

      4.3 Terms of the Agreement. Except as otherwise provided in Section 6.2
above or as required in order to operate in accordance with applicable laws and
regulations (e.g., disclosure to legal counsel, accounting firms, etc.),
LICENSEE shall not disclose any terms or conditions of the Agreement to any
third party without the prior consent of the other party. Notwithstanding the
foregoing, during the term of this Agreement, LICENSEE may disclose that it
holds a non-exclusive license to the Licensed Technology.

      4.4 Proprietary Rights. All ownership of patent rights, copyrights, trade
secret rights and other proprietary rights in the Licensed Technology shall
remain with PTSC and their licensors, and no right or license is granted to
LICENSEE hereunder except for the non-exclusive license expressly set forth in
Section 1 above.

5.    Term

The term of this Agreement shall begin upon the date of execution hereof and
shall continue until all intellectual property under this Agreement has expired
or ceases to be enforceable.

                                       4
<PAGE>

6.       Termination

         6.1 LICENSEE shall have the right to terminate this Agreement with or
without cause on thirty (30) days written notice to PTSC provided that LICENSEE
pays all fees then due and owed to PTSC. If LICENSEE is terminating for cause,
then LICENSEE shall state this reason for termination in the written notice
provided to PTSC.

      6.2 If LICENSEE shall become insolvent, or shall make any assignment for
the benefit of creditors, or if LICENSEE is adjudged bankrupt, or if a voluntary
and/or involuntary bankruptcy is filed on behalf of LICENSEE, and/or if a
receiver and/or trustee of LICENSEE property shall be appointed, this agreement
shall immediately terminate and all orders in production shall be disposed of in
accordance with paragraph 6.3 below. No other orders shall be accepted for
manufacture without the approval in writing by PTSC. LICENSEE if unable to
manufacture said orders shall offer these orders to PTSC, at their option, to
produce said orders.

      6.3 If this Agreement is terminated pursuant to paragraph 6.1 or 6.2
above, then, for a period of three (3) years following the effective date of
termination, LICENSEE shall have the right to complete any design activity in
progress at the time of termination but shall not begin any new design activity
using the Licensed Technology deliverables thereafter. If this Agreement is
terminated pursuant to paragraph 6.1 or 6.2 above, then, LICENSEE may continue
all support, marketing, and sale of products containing or using the Licensed
Technology or Licensed Microprocessor until the Products are end-of-lifed in
accordance with LICENSEE's then current end-of-life policy. However, all
products that continued to be sold by LICENSEE under this Section using the
Licensed technology deliverables shall continue to accrue the royalties and fees
set forth in this Agreement, unless this Agreement was terminated for PTSC's
breach of this Agreement. If this Agreement is terminated by LICENSEE for PTSC's
breach of this Agreement, LICENSEE shall be entitled to cease all royalty
payments to PTSC until the losses associated with PTSC's breach are recouped by
LICENSEE. And, any such recouped fees actually retained by LICENSEE hereunder
shall be offset against any monetary remedy that LICENSEE may later receive
against PTSC in law or equity.

      6.4 The provisions of paragraphs 0, 0, 0 and 0 shall survive any
expiration or termination hereof. Section 1 shall also survive only to the
extent necessary for LICENSEE to perform in accordance with Section 6.3.

7.    Assignment

Neither party shall assign any rights, duties or obligations of this agreement
or the subject matter of this agreement without the prior written consent of the
other party, which shall not be unreasonable withheld if the assignment will not
material impair the parties ability to conduct business after the assignment.

8.    Sublicense

LICENSEE shall not sublicense or transfer in any way, any right, duty or
obligation under this agreement or the subject matter of this agreement unless
expressly set forth herein.

9.       Representations and Warranties

      9.1 Nothing in this agreement shall be construed as a warranty or
representation by PTSC as to the validity or scope of any patent or a warranty
or representation that anything made, used, sold, leased or otherwise disposed
of under any License granted in this Agreement is or will be free from
infringement of patents of third parties.

      9.2 PTSC represents and warrants that:

                                       5
<PAGE>

            (i) it has the right to provide the licenses set forth herein;

            (ii) it has not assigned, exclusively licensed, or transferred any
      intellectual property rights within the last two years of the Effective
      Date of this Agreement to another party or any affiliate or subsidiary
      that claims or covers the Licensed Microprocessor or the Licensed
      Technology;

            (iii) any software and Licensed Technology provided under this
      Agreement contains no open source software and was created with no open
      source software of which LICENSEE was not notified of in writing prior to
      the Effective Date;

            (iv) there are no pending proceedings, mediation, arbitration, or
      litigation before any court, tribunal, government office, or equivalent
      authority anywhere in the world or any other adverse written claims or, to
      the actual knowledge of PTSC, no such proceedings, litigation or adverse
      claims have been threatened in writing, by any person or legal entity that
      are related to the Licensed Technology and/or Licensed Microprocessor;

            (v) to the actual knowledge of the PTSC, the use of the Licensed
      Technology and Licensed Microprocessor, as conducted by PTSC up until the
      Effective Date, does not infringe any intellectual property rights of any
      other party.

            (vi) the Licensed Technology and Licensed Microprocessor are free
      from material defect(s), function in accordance with applicable standards
      and documentation, and are manufactured within standard yields and
      performance associated generally with the fabrication facilities used by
      PTSC for a period of one (1) year from the Effective Date of this
      Agreement.,

            (vii) that all noncompliances of the Licensed Technology and
      Licensed Microprocessor in the past have been corrected or subject to a
      proper errata that has been provided to LICENSEE. PTSC agrees to
      indemnify, defend, and hold LICENSEE harmless, at LICENSEE's option, for
      any breach of any warranty under this Section 8.

      9.3 PTSC shall be under no obligation whatsoever to institute suits to
prosecute infringers under any patent directed to products containing the
Licensed Technology nor shall PTSC be in any way responsible or liable to
LICENSEE for failure to prosecute infringers. If PTSC elects to prosecute any
infringers, the conduct of such suit shall be directed by and any recoveries
therefrom shall belong entirely to PTSC.

10.   Liability

LICENSEE shall indemnify and hold PTSC harmless against third parties for any
and all claims relating to or arising from the use, manufacture or supply of
Products by LICENSEE, except to the extent such claim is based on content or use
solely of the Licensed Technology and/or Licensed Microprocessor as provided by
PTSC. Except with respect to breaches of confidentiality or indemnity
obligations, in no event shall either party be liable for any indirect, special
or consequential damages, such as loss of anticipated profits or any other
economic loss in connection with or arising out of this Agreement. Except for
breaches of warranty or indemnity obligations under this Agreement, the
aggregate liability of a party to this Agreement shall be capped at the total
amount paid by LICENSEE to PTSC under this and related Agreements.

                                       6
<PAGE>

13.   Notices

All notices required or permitted under this agreement shall be in writing and
shall be effective upon receipt, and addressed to the respective parties at
their addresses set forth below or to any other address designated by the
parties at a later date.

LICENSEE                                       PTSC
--------                                       ----
5204 East Ben White Boulevard                  10989 Via Frontera
Austin, Texas 78741                            San Diego, California 92127
Attn: General Counsel

14.   Severability

Each provision of this Agreement is severable from all other provisions of this
Agreement and if one or more of the provisions herein is declared invalid, the
remaining provisions shall, nevertheless, remain in full force and effect;
provided, however, if any paragraph shall be declared invalid, LICENSEE and PTSC
shall execute, as soon as possible, a supplemental agreement to restore, to the
extent legally possible, the protection by said paragraph.

15.   Attorney Fees and Choice of Law

This agreement shall be governed by and construed in accordance with the laws of
the State of California applicable to contracts made and to be performed wholly
in that State. Venue for the determination of any dispute or controversy or
claim between PTSC and LICENSEE, arising out of or relating to this License
Agreement or the breach, termination, interpretation, or invalidity thereof,
shall be proper in California. The prevailing party in any action to enforce or
otherwise interpret this Agreement shall be entitled to reasonable legal fees
and also for reimbursement of all other costs incurred in such an action.

16.   Headings

The headings or titles of the paragraphs of this agreement are for convenience
only, are not a part of this agreement, and shall not be used as an aid in
construction of any provision thereof.

17.   Waiver

No waiver of, acquiescence in or consent to any breach of or default under this
agreement shall be deemed a waiver of, acquiescence in or consent to any other
breach or default occurring at any time.

18.   Counterparts

This agreement may be executed in several counterparts, each of which shall
constitute an original, but all of which together shall constitute one and the
same instrument. The headings contained in the agreement have been inserted for
convenience of reference only and shall not modify, define, expand or limit any
of the provisions of this agreement.

19.   Complete Agreement

This document constitutes the complete agreement between the parties and
supersedes any prior understanding and agreements between and among them with
respect to the subject matter. There are no representations, agreements,
arrangements or understandings, oral or written, between the parties hereto
relating to the subject matter of this Agreement which are not fully expressed
herein. This Agreement shall not be amended or rescinded except by a further
written agreement execute by both parties.

                                       7
<PAGE>

IN WITNESS WHEREOF, LICENSEE and PTSC have caused this License Agreement to be
executed in duplicate originals by their duly authorized representative each of
whom in executing this document warrants his or her authority to bind their
respective company to this Agreement.

PTSC:                                   Patriot Scientific, Inc.
                                        A  Delaware corporation

                                        By: /S/ J.E. WALLIN
                                           -------------------------------------
                                           J. E.  Wallin

                                           Title:  CEO

                                           Dated: February 21, 2005

LICENSEE:                               Advanced Micro Devices

                                        By: /S/ HARRY A. WOLIN
                                           -------------------------------------
                                           Harry A. Wolin

                                           Title: Senior Vice President and
                                                  General Counsel

                                           Dated: February 21, 2005

[***]* Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as ***. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.

                                       8

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