Document:

Exhibit
10.6

 

STOCK
PURCHASE AGREEMENT

 

THIS STOCK PURCHASE AGREEMENT (this
“Agreement”) is entered into as of the 11 day of December, 2001, by and between
Lotus Pacific, Inc., a Delaware corporation (the “Seller”), and Solomon Extreme
International Ltd., a British Virgin Islands limited liability company (the
“Purchaser”). The Seller and the Purchaser are referred to collectively herein
as the parties.

 

RECITALS

 

WHEREAS, the Seller is the majority
shareholder of ARESCOM Inc., a California corporation (“ARESCOM”).

 

WHEREAS, the Purchaser is the designee of
Askey Computer Corp. to purchase certain shares of ARESCOM from the Seller
pursuant to this Agreement.

 

WHEREAS, the Seller desires to sell and the
Purchaser desires to purchase that number of shares (as set forth below) of the
common stock of ARESCOM held by the Seller on the terms and conditions set
forth in this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the
foregoing and the mutual agreements herein contained and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereby agree as follows:

 

1              Purchase
and Sale of Common Stock.

 

1.1.          Purchase
and Sale. At the Closing (as defined below) and subject to the terms and
conditions of this Agreement, the Seller agrees to sell to the Purchaser and
the Purchaser agrees to purchase from the Seller 24,234,738 shares (the
“Shares”) of common stock of ARESCOM at the Purchase Price (as defined below).

 

1.2.          Purchase
Price. The aggregate purchase price for the Shares (the “Purchase Price”) is
$10,000,000, which shall be payable at the Closing (as defined below) by
delivery of a certified check issued by a bank chartered under the laws of the
United States of America or pursuant to a wire transfer of immediately
available funds to an account designated by the Seller and release of all such
funds to the Seller.

 

1.3.The Closing: The closing of the purchase
and sale of the Shares contemplated by this Agreement (the “Closing”) shall be
deemed to have taken place at the offices of ARESCOM, at 3541 Gateway Blvd.,
Fremont, CA 94538, on December 14, 2001 or such other date or place as mutually
agreed upon by the parties (which date shall be designated the “Closing Date”).

 

2              Representations
and Warranties of the Seller.

The Seller hereby represents and warrants to
the Purchaser the following:

 

 

2.1.          Incorporation,
Good Standing and Qualification. The Seller represents that it is a corporation
duly incorporated, validly existing and in good standing under the laws of the
State of Delaware, and has all required power and authority necessary to carry
out the transactions contemplated by this Agreement.

 

2.2.          Authorization.
All corporate action on the part of the Seller and its respective officers,
directors and stockholders necessary for the authorization, execution and
delivery of this Agreement, and all other agreements contemplated hereby to
which the Seller is a party, the performance of all obligations of the Seller
hereunder and thereunder, and the sale of the Shares being sold hereunder has
been or will be taken prior to the Closing. This Agreement, and all other
agreements contemplated hereby to which the Seller is a party constitute valid
and legally binding obligations of the Seller, enforceable in accordance with
their respective terms, except (i) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, and (ii) as limited by
laws relating to the availability of specific performance, injunctive relief or
other equitable remedies.

 

2.3.          Ownership
of Shares. The Seller owns of record and beneficially all of the Shares. Upon
delivery of the Shares and payment of the Purchase Price therefor pursuant to
this Agreement, the Purchaser will receive good and marketable title to the
Shares, free and clear of all liens, encumbrances and restrictions of any kind
or nature whatsoever other than restrictions imposed by federal and state
securities laws.

 

2.4.          Offering.
Subject in part to the truth and accuracy of the Purchaser’s representations
set forth in Section 3 of this Agreement, the offer, sale and issuance of the
Shares as contemplated by this Agreement are exempt from the registration
requirements of the Securities Act of 1933, as amended (the “Act”), and the
qualification or registration requirements of the Act or other applicable blue
sky laws. Neither the Seller nor any authorized agent acting on the Seller’s
behalf will take any action hereafter that would cause the loss of such
exemptions.

 

2.5.          Disclaimer.
EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 3 SELLER HAS NOT MADE AND DOES
NOT MAKE (NOR SHALL SELLER BE DEEMED TO HAVE MADE OR TO MAKE BY VIRTUE OF THE
SALE OF THE SHARES TO PURCHASER OR ANY OTHER FACT OR CIRCUMSTANCE WHATSOEVER)
TO PURCHASER OR ANY OTHER PERSON ANY REPRESENTATION OR WARRANTY, EXPRESS OR
IMPLIED, WITH RESPECT TO OR IN CONNECTION WITH ANY OF THE SHARES, ANY ASSET OR
PROPERTY OF ARESCOM OR ITS BUSINESS, INCLUDING, WITHOUT LIMITATION, ANY
REPRESENTATION OR WARRANTY OF TITLE, DESIGN, CONDITION, QUALITY,
MERCHANTABILITY, WORKMANSHIP, PROFITABILITY OR SUITABILITY, FITNESS OR
ELIGIBILITY FOR ANY OTHER USE OR PURPOSE, ALL OF WHICH REPRESENTATIONS AND
WARRANTIES ARE EXPRESSLY DISCLAIMED AND EXCLUDED. THERE ARE NO SUCH
REPRESENTATIONS OR WARRANTIES WHATSOEVER OF SELLER OTHER THAN THE
REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS SECTION 2, WHICH
REPRESENTATIONS AND WARRANTIES ARE EXCLUSIVE AND IN LIEU OF ALL

 

 

OTHER REPRESENTATIONS AND WARRANTIES OF
SELLER WITH RESPECT TO THE SALE OF THE SHARES, ANY ASSET OR PROPERTY OF ARESCOM
OR ITS BUSINESS, WHETHER STATUTORY, WRITTEN, ORAL OR IMPLIED. EXCEPT AS SET
FORTH IN THIS SECTION 2, PURCHASER AGREES AND UNDERSTANDS THAT IT ACCEPTS THE
SHARES, ALL THE PROPERTIES AND ASSETS OF ARESCOM AND ITS BUSINESS “AS IS”,
WHERE IS AND WITH ALL FAULTS AND DEFECTS, WHETHER PATENT OR LATENT, AND WITHOUT
RECOURSE OF ANY KIND TO SELLER ON ACCOUNT OF ANY LOSS, DAMAGE OR INJURY
SUFFERED OR SUSTAINED BY PURCHASER OR ANY OTHER PERSON ON ACCOUNT OF ANY SUCH
FAULT OR DEFECT, WHETHER ON ANY THEORY OF NEGLIGENCE, STRICT LIABILITY, BREACH
OF CONTRACT OR EXPRESS OR IMPLIED WARRANTY ON WHICH SUCH RECOURSE MIGHT
OTHERWISE BE PURSUED.

 

3              Representations,
Warranties and Covenants of the Purchaser.

 

The Purchaser hereby represents, warrants and
covenants to the Seller the following:

 

3.1.          Incorporation,
Good Standing and Qualification The Purchaser represents that it is a
corporation duly incorporated, validly existing and in good standing under the
laws of the British Virgin Islands, and has all required power and authority
necessary to carry out the transactions contemplated by this Agreement.

 

3.2.          Authorization.
All corporate action on the part of the Purchaser and its respective officers,
directors and stockholders necessary for the authorization, execution and
delivery of this Agreement, and all other agreements contemplated hereby to
which the Purchaser is a party, the performance of all obligations of the Purchaser
hereunder and thereunder, and the purchase of the Shares being purchased
hereunder has been or will be taken prior to the Closing. This Agreement, and
all other agreements contemplated hereby to which the Purchaser is a party
constitute valid and legally binding obligations of the Purchaser, enforceable
in accordance with their respective terms, except (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general
application affecting enforcement of creditors’ rights generally, and (ii) as
limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies.

 

3.3.          Purchase
Entirely for Purchaser’s Own Account. The Shares will be acquired for
investment for the Purchaser’s own account, not as a nominee or agent, and not
with a view to the resale or distribution of any part thereof, and the
Purchaser has no present intention of  selling, granting any participation in or otherwise distributing the
same, other than as permitted by Section 3.9 and in accordance with applicable
securities laws. The Purchaser further represents that the Purchaser does not
have any contract, undertaking, agreement or arrangement with any person to
sell, transfer or grant participations to such person or to any third person,
with respect to any of the Shares, other than as permitted by Section 3.9 and
in accordance with applicable securities laws.

 

 

3.4.          Disclosure
of Information. The Purchaser believes it has received all the information it
considers necessary or appropriate for deciding whether to acquire the Shares.
The Purchaser further represents that it has had an opportunity to ask
questions and receive  answers
from the Seller regarding the terms and conditions of the offering of the
Shares and the business, properties, prospects and financial condition of
ARESCOM.

 

3.5.          No
Public Market. The Purchaser understands that no public market now exists for
any of the securities issued by ARESCOM and that there is no assurance that a
public market will ever exist for the Shares.

 

3.6.          Business
or Financial Experience. By reason of the Purchaser’s business or financial
experience or the business or financial experience of the Purchaser’s
professional advisors who are unaffiliated with and who are not compensated,
directly or indirectly, by ARESCOM, the Seller, or any affiliate or selling
agent of ARESCOM or the Seller, the Purchaser has the capacity to protect its
own interests in connection with its investment in the Shares.

 

3.7.          Accredited
Investor. The Purchaser is an “accredited investor” within the meaning of
Securities and Exchange Commission (“SEC”) Rule 501 of Regulation D,
promulgated under the Act, as presently in effect.

 

3.8.          Restricted
Securities. The Purchaser understands that the Shares it is purchasing are
characterized as “restricted securities” under the federal securities laws
inasmuch as they are being acquired from an affiliate of ARESCOM in a
transaction not involving a public offering and that under such laws and applicable
regulations the Shares may not be resold without registration under the Act
except in certain limited circumstances. In the absence of an effective
registration statement covering the Shares or an available exemption from
registration under the Act, the Shares must be held indefinitely. In this
connection, the Purchaser represents that it is familiar with SEC Rule 144, as
presently in effect, and understands the resale limitations imposed thereby and
by the Act, including without limitation the Rule 144 condition that current
information about ARESCOM be available to the public. Such information is not
now available and ARESCOM has no present plans to make such information
available.

 

4              Conditions
to the Obligations at Closing.

 

4.1.          Conditions
to the Purchaser’s Obligations at Closing. The obligation of the Purchaser to
close the purchase of the Shares hereunder shall be subject to the fulfillment
and satisfaction, prior to or at Closing, of each of the following conditions
or the written waiver thereof by the Purchaser:

 

(a)           Representations;
Performance. The limited representations and warranties of the Seller contained
in this Agreement shall be true and correct on and as of the Closing Date with
the same effect as though such representations and warranties were made as of
the Closing Date; the Seller shall have duly performed and complied in all
material respects with all agreements required by this Agreement to be
performed or complied with by it prior to or on the Closing Date; each of the
conditions specified in this Section 4 shall have been fulfilled to the
Purchaser’s satisfaction or waived in writing by the Purchaser; and, on the
Closing Date, certificates to such

 

 

effect executed by a duly authorized
executive officer of the Seller shall have been delivered to the Purchaser.

 

(b)           All
Proceedings Satisfactory. All corporate and other proceedings taken prior to or
at the Closing in connection with the transactions contemplated by this
Agreement, and all documents and evidences incident thereto, shall be
reasonably satisfactory in form and substance to the Purchaser. All third party
and governmental consents, approvals and filings required in connection with
the consummation of the transactions hereunder (including, without limitation,
all blue sky law filings, governmental approvals pursuant to the
Hart-Scott-Rodino Antitrust Improvements Act of 1986, as amended, and waivers
of all preemptive rights and rights of first refusal) shall have been obtained,
and shall be reasonably satisfactory in form and substance to the Purchaser.

 

(c)           Termination
of Transfer Restrictions. That certain Share Exchange Agreement by and between
the Seller and ARESCOM, dated March 15, 1999, and that certain Share Exchange
Agreement by and between the Seller and shareholders of ARESCOM, dated March
15, 1999, shall have been amended by the execution of the amendments in
substantially the forms of the attached Exhibit B and Exhibit C, respectively,
to eliminate all restrictions on the transfer of the shares of Common Stock the
Seller issued to shareholders of ARESCOM pursuant to such agreements (the
“Lotus Shares”) other than restrictions on transfer arising under applicable
federal and state securities laws. At the Closing, Lotus shall remove (or cause
its transfer agent to remove) all restrictive legends other than the
restrictive legends required under applicable federal and state securities laws
from the Lotus Shares stock certificates.

 

(d)           Termination
of Shareholders’ Agreement. That certain Shareholders’ Agreement of ARESCOM,
dated March 15, 1999, shall have been terminated pursuant to a Release and
Termination of Shareholders’ Agreement in substantially the form of Exhibit D
attached hereto.

 

(e)           Board
of Directors. Vincent Yong Yan and Li Dong Sheng shall have resigned from the
Board of Directors of ARESCOM. ARESCOM shall have taken all necessary corporate
action such that the directors of ARESCOM following the Closing shall be Wen
Chen (Max) Lu, Cheng Kuei Lin, and Chiu-Teng Tsai.

 

(f)            Conversion
of Debt. An exchange agreement (the “Exchange Agreement”), in substantially the
form of Exhibit E attached hereto, shall have been executed and delivered by
the Seller and ARESCOM, pursuant to which all indebtedness, including, without
limitation, accrued interest, and other obligations of ARESCOM under, relating
to, or arising out of the following promissory notes issued by ARESCOM to the
Seller shall have been cancelled in exchange for 11,048 shares of a
newly-designated Series B Preferred Stock of ARESCOM (the “Series B Shares”)
and a new note for the principal sum of $2,191,996.15 (the “New Note”), in
substantially the form of Exhibit F attached hereto: (i) that certain
promissory note, dated March 23, 2000, for the principal sum of $8,000,000,
(ii) that certain promissory note, dated July 26, 2000, for the principal sum
of $1,000,000, (iii) that certain promissory note, dated August 25, 2000, for
the principal sum of $500,000, (iv) that certain promissory note, dated
September 1, 2000, for the principal sum of $500,000 and (v) that certain
promissory note issued by ARESCOM to the Seller, dated May 22, 2000, for the
principal sum of $2,000,000.

 

 

4.2.          Conditions
to Seller’s Obligations at Closing. The obligation of Seller to close the
purchase of the Shares hereunder shall be subject to the fulfillment and
satisfaction, prior to or at Closing, each of the following conditions or the
written waiver thereof by Seller:

 

(a)           Representations;
Performance. The representations and warranties of the Purchaser contained in
this Agreement shall be true and correct on and as of the Closing Date with the
same effect as though such representations and warranties were made as of the
Closing Date; the Purchaser shall have duly performed and complied in all
material respects with all agreements required by this Agreement to be
performed or complied with by it prior to or on the Closing Date; each of the
conditions specified in this Section 4 shall have been fulfilled to the
Seller’s satisfaction or waived in writing by the Seller; and, on the Closing
Date, certificates to such effect executed by a duly authorized executive
officer of the Purchaser shall have been delivered to the Seller.

 

(b)           All
Proceedings Satisfactory. All corporate and other proceedings taken prior to or
at the Closing in connection with the transactions contemplated by this
Agreement, and all documents and evidences incident thereto, shall be
reasonably satisfactory in form and substance to the Seller. All third party
and governmental consents, approvals and filings required in connection with
the consummation of the transactions hereunder (including, without limitation,
all blue sky law filings, governmental approvals pursuant to the
Hart-Scott-Rodino Antitrust Improvements Act of 1986, as amended, and waivers
of all preemptive rights and rights of first refusal) shall have been obtained,
and shall be reasonably satisfactory in form and substance to the Seller.

 

(c)           Release
from Avnet Guarantee. The Seller shall have been released from all liability as
a guarantor of ARESCOM’s indebtedness to Avnet Electronics Marketing, Inc.,
pursuant to that certain Guarantee dated January 7, 2000, by and between Avnet
Electronics Marketing, Inc. (as creditor), ARESCOM (as debtor), and the Seller
(as guarantor), such release to be in substantially the form of Exhibit G
attached hereto.

 

(d)           Release
from General Bank Guarantee. The Seller shall have been released from all
liability as a guarantor of ARESCOM’s indebtedness to General Bank, pursuant to
that certain Commercial Guarantee dated March 31, 2000, by and between General
Bank and the Seller, as amended, or modified, such release to be substantially
in the form of Exhibit H attached hereto.

 

(e)           Termination
of Shareholders’ Agreement. That certain Shareholders’ Agreement of ARESCOM,
dated March 15, 1999, shall have been terminated pursuant to a Release and
Termination of Shareholders’ Agreement in substantially the form of Exhibit B
attached hereto.

 

(f)            Conversion
of Debt. The Exchange Agreement shall have been executed and delivered by the
Seller and ARESCOM, pursuant to which all indebtedness, including, without
limitation, accrued interest, and other obligations of the Company under,
relating to, or arising out of the following promissory notes issued by ARESCOM
to the Seller shall have been cancelled in exchange for the Series B Shares and
the New Note: (i) that certain promissory note, dated March 23, 2000, for the
principal sum of $8,000,000, (ii) that certain promissory note, dated July 26,
2000, for the principal sum of $1,000,000, (iii) that certain promissory note,
dated August 25,

 

 

2000, for the principal sum of $500,000, (iv)
that certain promissory note, dated September 1, 2000, for the principal sum of
$500,000 and (v) that certain promissory note issued by ARESCOM to the Seller,
dated May 22, 2000, for the principal sum of $2,000,000. The New Note shall
have been duly executed and delivered to Seller and the Series B Shares, upon
conversion of such debt pursuant to the Exchange Agreement, shall have been
duly and validly issued, fully paid and non-assessable.

 

(g)           Loan
and Security Agreement. ARESCOM shall have executed and delivered to Seller,
the Loan and Security Agreement of even date herewith (the “Loan Agreement”) in
substantially the form of Exhibit I hereto, with respect to ARESCOM’s
obligations under the New Note.

 

(h)           Validity
and Priority of Security Interest. Subject to any pre-existing security
interest granted in favor of General Bank, Seller’s security interest in the
Collateral (as defined in the Loan Agreement) shall constitute a valid and
subsisting first priority security interest in such Collateral for payment and
performance of ARESCOM’s obligations under the New Note, and Seller shall have
received evidence satisfactory to it that all filings and other actions as may
be necessary or advisable to establish, protect, preserve and prefect Seller’s
security interest in such Collateral shall have been made or taken.

 

(i)            Termination
of Option Share Exchange Agreements. All rights of any holder of stock options of
ARESCOM to exchange securities of ARESCOM for shares of capital stock of the
Seller pursuant to Option Share Exchange Agreements dated April 18, 2000 or any
other agreement purporting to grant such holders such rights, shall have been
terminated pursuant to instruments or agreements in form and substance
acceptable to the Seller and its legal counsel.

 

5 Miscellaneous.

 

5.1. Representations and Warranties. The
representations and warranties of the parties contained herein shall survive
the Closing. The covenants of any party shall survive the Closing in accordance
with their terms.

 

5.2.          Further
Assurances. From and after the Closing Date, the Seller shall execute all
certificates, instruments, documents or agreements and shall take any other
action which it is requested to execute or take to further effectuate the
transaction contemplated by this Agreement.

 

5.3.          Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of
the parties named herein and their respective successors and permitted assigns.
No party may assign either this Agreement or any of the rights, interests, or
obligations hereunder without the prior written approval of the other party.

 

5.4.          Notices.
All notices required or permitted hereunder shall be in writing and shall be
deemed effectively given (i) upon personal delivery to the party to be
notified, (ii) when sent by confirmed telex or facsimile if sent during normal
business hours of the recipient, if not, then on the next business day, (iii)
five days after having been sent by registered or certified mail, return
receipt requested, postage prepaid, or (iv) one day after deposit with a
nationally recognized overnight courier, specifying next day delivery, with
written verification of receipt. All communications shall be sent to the
address as set forth on the signature page hereof or at such

 

 

other address as such party may designate by
ten days advance written notice to the other parties hereto.

 

5.5.          Governing
Law. This Agreement shall be governed and interpreted by the internal laws (and
not the laws of conflicts) of the State of California as applied to agreements
among California residents entered into and to be performed entirely within
California.

 

5:6.          Consent
to Jurisdiction and Forum Selection. The parties hereto agree that any action
or proceeding relating to or arising out of this Agreement and the consummation
of the transactions contemplated herein shall be brought, tried and litigated
exclusively in the state and federal courts located in the County of Santa
Clara, State of California. The aforementioned choice of venue is intended by
the parties to be mandatory and not permissive in nature, thereby precluding
the possibility of litigation between the parties with respect to or arising
out of this Agreement and the consummation of the transactions contemplated
herein in any jurisdiction other than that specified in this paragraph. Each
party hereby waives any right it may have to assert the doctrine of forum non
conveniens or similar doctrine or to object to venue with respect to any
proceeding brought in accordance with this paragraph, and stipulates that the
state and federal courts located in the County of Santa Clara, State of
California shall have in personam jurisdiction and venue over each of them for
the purpose of litigating any dispute, controversy, or proceeding arising out
of or related to this Agreement. Each party hereby authorizes and accepts
service of process sufficient for personal jurisdiction in any action against
it as contemplated by this paragraph by registered or certified mail, return
receipt requested, postage prepaid, to its address for the giving of notices as
set forth in this Agreement, or in the manner set forth in Section 5.3 of this
Agreement for the giving of notice. Any final judgment rendered against a party
in any action or proceeding shall be conclusive as to the subject of such final
judgment and may be enforced in other jurisdictions in any manner provided by
law.

 

5.7. Indemnification.

 

(a)           The
Seller agrees to indemnify, defend and hold harmless the Purchaser and the
Purchaser’s officers, directors and shareholders, (collectively, the “Purchaser
Indemnitees”), from and after the Closing Date, against any damages, losses,
obligations, liabilities, claims, encumbrances, deficiencies, costs and
expenses, including without limitation reasonable attorneys’ fees and other
costs and expenses incident to any action, investigation, claim or proceeding
(all hereafter referred to as “Losses”), arising out of or relating to any
misrepresentation or breach of or default in connection with any
representation, warranty, covenant or agreement given or made by Seller in this
Agreement.

 

(b)           In
the event the Purchaser becomes aware of a third-party claim which the
Purchaser believes may result in an indemnification demand under this Section
5.7, the Purchaser shall promptly notify the Seller of such claim, and Seller
shall be entitled, at their expense, to participate in any defense of such
claim. The Purchaser shall have the right in its sole discretion to settle any
such claim; provided, however, that the Purchaser may not effect the settlement
of any such claim without the consent of the Seller, which consent shall not be
unreasonably withheld. In the event that the Seller has consented to any such
settlement, Seller shall have no

 

 

power or authority to object to the amount of
any claim by Purchaser for indemnity under this Section 5.7 with respect to
such settlement.

 

(c)           The
Purchaser agrees to indemnify, defend and hold harmless the Seller and the
Seller’s officers, directors and shareholders, (collectively, the “Seller
Indemnitees”), from and after the Closing Date, against any Losses arising out
of or relating to any misrepresentation or breach of or default in connection
with any representation; warranty, covenant or agreement given or made by
Purchaser in this Agreement.

 

(d)           In
the event the Seller becomes aware of a third-party claim which the Seller
believes may result in an indemnification demand under this Section 5.7, the
Seller shall promptly notify the Purchaser of such claim, and Purchaser shall
be entitled, at their expense, to participate in any defense of such claim. The
Seller shall have the right in its sole discretion to settle any such claim;
provided, however, that the Seller may not effect the settlement of any such
claim without the consent of the Purchaser, which consent shall not be
unreasonably withheld. In the event that the Purchaser has consented to any
such settlement, Purchaser shall have no power or authority to object to the
amount of any claim by Seller for indemnity under this Section 5.7 with respect
to such settlement.

 

5.8.          Entire
Agreement. This Agreement together and the documents referred to herein
constitute the entire agreement between the parties and supersedes any prior
understandings, agreements, or representations by or between the parties,
written or oral, to the extent they have related in any way to the subject
matter hereof.

 

5.9.          Amendments
and Waivers. Any term of this Agreement may be amended and the observance of
any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written
consent of the parties.

 

5.10.        Severability.
If one or more provisions of this Agreement are held to be unenforceable under
applicable law, such provision shall be excluded from this Agreement and the
balance of the Agreement shall be interpreted as if such provision were so
excluded and shall be enforceable in accordance with its terms.

 

5.11.        Expenses.
The parties will bear their own costs and expenses (including legal fees and
expenses) incurred in connection with this Agreement and the transaction
contemplated hereby.

 

5.12. Counterparts. This Agreement may be executed
in one or more counterparts, including counterparts transmitted by facsimile or
other electronic means, each of which shall be deemed an original but all of
which together will constitute one and the same instrument.

 

5.13.        Headings.
The section headings contained in this Agreement are used for convenience only
and shall not affect in any way the meaning or interpretation of this
Agreement.

 

5.14.        Dollars.          All
references herein to dollars or “$” refer to US dollars.

 

 

5.15.        Publicity.
Between the date of this Agreement and following the Closing Date, Purchaser
agrees that it shall not issue any press release or make any public disclosure
of the transactions contemplated hereby without first receiving the prior
written consent of the Seller. The foregoing shall not apply to any information
which shall have already been disseminated into the public domain pursuant to
this Section  5.15.

 

5.16.        No
Third Party Beneficiaries. Except for ARESCOM, which is intended to be a third
party beneficiary of the Purchaser’s representations, warranties, and
agreements set forth in Section 3 hereof, this Agreement shall not confer any
rights or remedies on any person other than the parties hereto and their
respective successors and permitted assigns.

 

5.17.        Advice
of Counsel. The Purchaser hereby acknowledges that it has had the opportunity
to consult with attorneys of its own choice to advise it as to the terms,
conditions and ramifications of this Agreement and the transactions
contemplated hereby. The Purchaser has  read and fully understands all provisions of this Agreement and is
executing this instrument with full and complete authority. The Purchaser
acknowledges that neither Brobeck, Phleger & Harrison, legal counsel to
ARESCOM, nor Crosby, Heafey, Roach & May, P.C., legal counsel to the
Seller, has acted as legal counsel to the Purchaser in any respect and
Purchaser is not relying on any advice provided by counsel to ARESCOM or the
Seller.

 

 

[This space intentionally left blank.]

 

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

 

	
  SELLER:

  
	
  PURCHASER:

  
	
   

  
	
  /s/ Vincent Yan, President

  	
   

  
	
   

  
	
  8001 Irvine Center Drive
  Suite 400

  
	
  Irvine, CA 92618 Attn:
  President Facsimile: (949) 754-4394

  
	
   

  
	
   

  
	
  PURCHASER:

  
	
   

  
	
   

  
	
  SOLOMON EXTREME
  INTERNATIONAL LTD.

  
	
   

  
	
  /s/ Fan Chich-Chiang

  	
   

  
	
   

  
	
   

  
	
  Registered Office:
  Beaufort House P.O. Box 438

  
	
  Road Town, Tortol8y,
  British Virgin Islands Facsimile:

  
	
   

  
	
  With copy to:

  
	
  3F1., No. 20, Lane 165,
  Duenhua N. Rd. Sungsh Chiu

  
	
  Taipei, Taiwan

  
	
  Attn: Wang, Yu-Lan,
  Director

  
	
  Facsimile:Exhibit
10.7

 

[January 18, 2003,

Unofficial Translation of Executive Copy-ffa]

 

 

JOINT VENTURE CONTRACT

 

OF

 

TCL DIGITAL TECHNOLOGY (BEIJING) COMPANY LIMITED

 

 

 

TABLE OF CONTENTS

 

	
  PREAMBLE

  	
   

  
	
   

  	
   

  
	
  ARTICLE  1

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE  2

  	
  PARTIES TO THE
  CONTRACT

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE  3

  	
  THE COMPANY

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE  4

  	
  GOVERNMENT APPROVALS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE  5

  	
  SCOPE OF OPERATIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE  6

  	
  TOTAL
  INVESTMENT AND REGISTERED CAPITAL

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE  7

  	
  JOINT VENTURE TERM

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE  8

  	
  BOARD OF DIRECTORS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE  9

  	
  MANAGEMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE  10

  	
  ANNUAL
  OPERATING PLAN AND BUDGET

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE  11

  	
  INTELLECTUAL
  PROPERTY

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE  12

  	
  FINANCE AND
  ACCOUNTING

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE  13

  	
  TAXATION

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE  14

  	
  ALLOCATION
  AND DISTRIBUTION OF PROFITS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE  15

  	
  LABOR AND PERSONNEL

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE  16

  	
  CONFIDENTIALITY

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE  17

  	
  ADDITIONAL
  RESPONSIBILITIES OF THE PARTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE  18

  	
  TRANSFER OF
  INTERESTS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE  19

  	
  LIABILITIES
  FOR BREACH OF CONTRACT

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 
  20

  	
  AMENDMENT, CHANGES, TERMINATION, DISSOLUTION
  AND LIQUIDATION

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE  21

  	
  MISCELLANEOUS

  	
   

  

 

 

JOINT VENTURE CONTRACT

 

PREAMBLE

 

The undersigned
parties:

 

•                  Liu
Dongyuan, a Chinese person and his ID Number is 110105500915151 and having his
legal address at 1-1-6, West Compound, south Sanlitun, Chaoyang District,
Beijing (“Party A”);

 

•                  Cheng
Fei, a Chinese person and his ID Number is 110108630416639 and having his legal
address at 24-331, Xueyuan Rd.42, Haidian District, Beijing (“Party B”);

 

•                  Gao
Jianou, a Chinese person and his ID Number is 110108670721187 and having his
legal address at 6-2-402, Xiyuan Garden No.1, Haidian District, Beijing (“Party
C”);

 

•                  Wang
Huansheng, a Chinese person and his ID Number is 110108660326542 and having his
legal address at Ganjiakou No.29, Haidian District, Beijing (“Party D”);

 

•                  Han
Jingzhe, a Chinese person and his ID Number is 110104741112253 and having his
legal address at 6-102, Maliandao Northern St., Xuanwu District, Beijing
(“Party E”).

 

•                  Huizhou
TCL Computer Technology Co., Ltd., a wholly foreign-owned enterprise duly
incorporated and existing under the laws of China and having its principal
office in Huizhou, China (“TCL” or “Party F”); and

 

•                  Lotus
Pacific, Inc., a legal person duly incorporated and existing under the laws of
USA (“LP” or “Party G”);

 

after friendly
discussions and based on the principle of equality and mutual benefit, the
parties agree to establish a joint venture company in Haidian District,
Beijing, and hereby sign this JOINT VENTURE CONTRACT of TCL Digital Technology
(Beijing) Company Limited (the “Company”) on January 18, 2003, in accordance with
the Law of the People’s Republic of China on Joint Ventures Using Chinese and
Foreign Investment and other relevant Chinese laws and regulations.

 

ARTICLE  1          DEFINITIONS

 

	
  1.01

  	
   

  	
  All terms defined in
  this Article 1 or in other provisions of this Contract in the singular shall
  have the same meanings in the plural and vice versa.

  

 

1

 

	
  1.02

  	
   

  	
  Unless the terms or
  context of this Contract otherwise provides, the following terms shall have
  the meanings set forth below:

  

 

	
  (a)

  	
   

  	
  “Articles of
  Association” shall mean the Articles of Association of the Company executed
  by the Parties simultaneously with the execution of this Contract, as the
  same may be supplemented or amended from time to time, and (if required) as
  such supplemented or amended Articles of Association shall be approved by the
  relevant authorities.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  “Board” or “Board of
  Directors” shall mean the Board of Directors of the Company.

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  “Confidential
  Information” means all Proprietary Information and any other information that
  is identified to the recipient orally or in writing by the party providing
  such information as being confidential, provided that in the case of any such
  information that has been provided orally or has been identified as “Confidential
  Information” orally, the party providing such information shall confirm its
  confidential nature in writing to the recipient not later than sixty (60)
  days following the provision thereof to such recipient.

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  “Contract” shall mean
  this Joint Venture Contract, including all of the Appendices hereto, as the
  same may be supplemented or amended from time to time, and (if required) as
  such supplemented or amended Contract shall be approved by the relevant
  authorities.

  
	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  “Effective Date” shall
  mean the date on which this Contract becomes effective, which shall be the
  date on which each party hereto shall have received a true and correct copy
  of the final approval by the Examination and Approval Authority of each of
  this Contract and the Articles of Association.  If the Effective Date shall not have occurred within five (5)
  months from the date of the signature of this Contract, or such other date as
  may be agreed in writing by the parties, this Contract (other than Article
  16) and the Articles of Association, and everything contained herein (except
  the obligations set out in Article 16) and therein shall be null and void.

  
	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  “Employees” shall mean
  the full-time regular employees (including full-time regular expatriate
  employees) of the Company.

  
	
   

  	
   

  	
   

  
	
  (g)

  	
   

  	
  “Equity Interest” shall
  mean, with respect to a Party, the total interest in the registered capital
  of the Company held by such Party.

  
	
   

  	
   

  	
   

  
	
  (h)

  	
   

  	
  “Establishment Date”
  shall mean the date on which the relevant Administration for Industry and
  Commerce shall have duly issued an business license to the Company as
  provided herein.

  
	
   

  	
   

  	
   

  
	
  (i)

  	
   

  	
  “Examination and
  Approval Authority” shall mean the Ministry of Foreign Trade and Economic
  Cooperation of the People’s Republic of China and any governmental
  organization authorized by it or any successor.

  

 

2

 

	
  (j)

  	
   

  	
  “Independent Auditor”
  shall mean the certified public accountants or auditors registered in China
  that are appointed by the Board of Directors of the Company as its
  independent auditor.

  
	
   

  	
   

  	
   

  
	
  (k)

  	
   

  	
  “Intellectual Property”
  shall mean patents, design patents, industrial designs, utility models,
  trademarks, trade dress, proprietary designs, logos, company names, trade
  names, copyrights and copyrightable works, trade secrets and all other
  intellectual or industrial property rights.

  
	
   

  	
   

  	
   

  
	
  (l)

  	
   

  	
  “Joint Venture Law”
  shall mean, collectively, the Law of the People’s Republic of China on Joint
  Ventures Using Chinese and Foreign Investment promulgated July 1, 1979, the
  Regulations for the Implementation of the Law of the People’s Republic of
  China on Joint Ventures Using Chinese and Foreign Investment, promulgated
  September 20, 1983, and all supplements, amendments, interpretations, orders
  and notices relating thereto promulgated by the relevant authorities and in
  effect as of the date hereof.

  
	
   

  	
   

  	
   

  
	
  (m)

  	
   

  	
  “Joint Venture Term”
  shall have the meaning specified in Section 7.01.

  
	
   

  	
   

  	
   

  
	
  (n)

  	
   

  	
  “Products” shall mean
  notebook computers and soft-hardware, parts and peripheries relating to
  notebook computers, the products of integrations, network communications,
  digital electronic products and such other products as the Company may
  produce in accordance with the terms of its business license.

  
	
   

  	
   

  	
   

  
	
  (o)

  	
   

  	
  “Project Documents”
  shall mean collectively, this Contract, the Articles of Association, and any
  other agreements, contracts or other documents relating to any thereof, in
  each case as the same may be supplemented and amended from time to time.

  
	
   

  	
   

  	
   

  
	
  (p)

  	
   

  	
  “Proprietary
  Information” shall mean all Intellectual Property and other technical and
  engineering, construction, economic, financial, sales, marketing and other
  information developed and/or owned and provided in writing or orally by the
  Parties, in connection with the negotiation of the project contemplated by
  the Project Documents or the implementation of this Contract or the other
  Project Documents.

  

 

ARTICLE  2          PARTIES TO THE CONTRACT

 

	
  2.01

  	
   

  	
  The name, place of
  registration and legal address of each Party, and the name, position and
  nationality of each Party’s legal representative are as follows:

  

 

	
  (a)

  	
   

  	
  Name:

  	
   

  	
  Liu Dongyuan

  
	
   

  	
   

  	
  Legal Address: 

  	
   

  	
  1-1-6, West
  Compound, south Sanlitun, Chaoyang District, Beijing.

  
	
   

  	
   

  	
  ID Number:

  	
   

  	
  110105500915151

  
	
   

  	
   

  	
  Phone Number: 

  	
   

  	
  010-62126977

  

 

3

 

	
  (b)

  	
   

  	
  Name:

  	
   

  	
  Cheng Fei

  
	
   

  	
   

  	
  Legal Address: 

  	
   

  	
  24-331, Xueyuan
  Rd.42, Haidian District, Beijing.

  
	
   

  	
   

  	
  ID Number:

  	
   

  	
  110108630416639

  
	
   

  	
   

  	
  Phone Number:

  	
   

  	
  13301391618

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Name:

  	
   

  	
  Gao Jianou

  
	
   

  	
   

  	
  Legal Address:

  	
   

  	
   6-2-402, Xiyuan Garden No.1, Haidian
  District, Beijing.

  
	
   

  	
   

  	
  ID Number:

  	
   

  	
  110108670721187

  
	
   

  	
   

  	
  Phone Number:

  	
   

  	
  13301391188

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Name:

  	
   

  	
  Wang Huansheng

  
	
   

  	
   

  	
  Legal Address: 

  	
   

  	
  Ganjiakou No.29,
  Haidian District, Beijing.

  
	
   

  	
   

  	
  ID Number:

  	
   

  	
  110108660324542

  
	
   

  	
   

  	
  Phone Number:

  	
   

  	
  62115566-27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  Name:

  	
   

  	
  Han Jingzhe

  
	
   

  	
   

  	
  Legal Address: 

  	
   

  	
  6-102, Maliandao
  Northern St., Xuanwu District, Beijing.

  
	
   

  	
   

  	
  ID Number:

  	
   

  	
  110104741112253

  
	
   

  	
   

  	
  Phone Number:

  	
   

  	
  62115566-30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  Name:

  	
   

  	
  Huizhou TCL
  Computer Technology Co., Ltd.

  
	
   

  	
   

  	
  Place of Registration:

  	
   

  	
  Zhongkai
  Development Zone for High-New Technologies, Huizhou

  
	
   

  	
   

  	
  Legal
  Representative:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Li
  Dongsheng

  
	
   

  	
   

  	
   

  	
   

  	
  Position:
  Director of Board

  
	
   

  	
   

  	
   

  	
   

  	
  Nationality:
  Chinese

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (g)

  	
   

  	
  Name:

  	
   

  	
  Lotus Pacific,
  Inc.

  
	
   

  	
   

  	
  Place of
  Registration:

  	
   

  	
  18200 Von Karman
  Ave. Suite 730 Irvine, CA 92612

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Legal
  Representative:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Li
  Dongsheng

  
	
   

  	
   

  	
   

  	
   

  	
  Position:
  Director of Board

  
	
   

  	
   

  	
   

  	
   

  	
  Nationality:
  Chinese

  

 

Parties set out in
(a) to (e) of this section shall be referred to collectively as the “Chinese Individual
Investors”.

 

2.02                                    Each
of the Parties, severally and not jointly, represents and warrants that:

 

	
  (a)

  	
   

  	
  Each of the Parties,
  apart from Chinese Individual Investors, is a duly organized and validly
  existing legal person under the laws of its jurisdiction of establishment.

  

 

4

 

	
  (b)

  	
   

  	
  It possesses full power
  and authority to enter into this Contract and the Articles of Association and
  to perform its obligations hereunder and thereunder.

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Its representative has
  been fully authorized to sign this Contract and the Articles of Association
  on its behalf pursuant to a power of attorney or resolution of its board of
  directors.

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Assuming due
  authorization, execution and delivery by the other Parties hereto, on the
  Effective Date, each of this Contract and the Articles of Association shall
  constitute its legal, valid and binding obligation.

  
	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  It is not a party to,
  nor is it bound by, any material contract or agreement which would be violated
  by its execution or performance of this Contract or the Articles of
  Association.

  
	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  There are no pending or
  threatened legal proceedings, lawsuits, arbitration proceedings,
  administrative proceedings or other governmental or court proceedings, or
  governmental or court orders, injunctions, judgments or awards, or
  arbitration awards to which it is a party or by which it or any of its assets
  is or may be bound or affected of any material nature, or which would affect
  its ability to perform this Contract or the Articles of Association.

  
	
   

  	
   

  	
   

  
	
  (g)

  	
   

  	
  It is in compliance
  with all material laws, rules, regulations, decrees and orders, and all
  interpretations thereof, of all governmental authorities having jurisdiction
  over it, or its business, finances, operations or properties.

  
	
   

  	
   

  	
   

  
	
  (h)

  	
   

  	
  It has no outstanding
  commitments or obligations, contractual or otherwise, which would in any way
  impede its ability and right to enter into and perform this Contract or the
  Articles of Association.

  
	
   

  	
   

  	
   

  
	
  (i)

  	
   

  	
  From and after the date
  of signature of this Contract, it will promptly inform the other Parties of
  any developments in the status of approval of this Contract, the Articles of
  Association and the other relevant Project Documents by the relevant
  governmental authorities (including the Examination and Approval Authority).

  
	
   

  	
   

  	
   

  
	
  (j)

  	
   

  	
  From and after the date
  of signature of this Contract to the Establishment Date, any communication by
  it in writing with the Examination and Approval Authority regarding the terms
  and conditions of this Contract, the Articles of Association or the other
  relevant Project Documents shall be copied and sent simultaneously to the
  other Parties.

  

 

ARTICLE  3          THE COMPANY

 

	
  3.01

  	
   

  	
  The name of the Company
  shall be TCL  in Chinese.

  
	
   

  	
   

  	
   

  
	
  3.02

  	
   

  	
  The legal address of
  the Company shall be 409# Zhongding Tower B, Northern Third Ring 18 A,
  Haidian District, Beijing, China.

  

 

5

 

	
  3.03

  	
   

  	
  The Company shall be a
  limited liability company.  The
  liability of each Party shall be limited to the amount of its interest in the
  registered capital of the Company. 
  The Parties shall share the profits and risks of the Company and any
  excess of the Company’s assets over its liabilities upon its liquidation in
  proportion to their respective interest in the registered capital of the
  Company.

  
	
   

  	
   

  	
   

  
	
  3.04

  	
   

  	
  The Company shall be an
  independent legal person under the laws of China.  The activities of the Company shall be governed and protected
  by the laws, decrees and relevant rules and regulations of China.

  

 

ARTICLE  4          GOVERNMENT APPROVALS

 

	
  4.01

  	
   

  	
  The Chinese Individual
  Investors shall be responsible for submitting this Contract (together with
  all Appendices hereto) and the Articles of Association to the relevant
  approval authorities (including the Examination and Approval Authority)
  promptly after the execution of this Contract.

  
	
   

  	
   

  	
   

  
	
  4.02

  	
   

  	
  Any modifications to
  any part of this Contract, any Appendix hereto or the Articles of Association
  shall be agreed upon in writing by the Parties prior to resubmission to the
  relevant approval authorities (including the Examination and Approval
  Authority) for final approval.

  
	
   

  	
   

  	
   

  
	
  4.03

  	
   

  	
  Promptly, and in no
  event later than thirty (30) days after the Effective Date, the Company shall
  apply to the Beijing Municipal Administration for Industry and Commerce to
  make all necessary commercial registration, and to obtain a business license.

  

 

ARTICLE  5          SCOPE OF OPERATIONS

 

	
  5.01

  	
   

  	
  The scope of
  business of the Company shall be to develop, produce and engage in the
  business of computers, parts and peripherals related, network communications,
  digital electronic products; integrations; sale of products produced;
  technical consulting, technical services and training, technical tests and
  transfer.

  

 

ARTICLE  6          TOTAL INVESTMENT AND REGISTERED
CAPITAL

 

	
  6.01

  	
   

  	
  The total
  investment and the registered capital of the Company is RMB eighty seven
  million Yuan (RMB 87,000,000) respectively.

  
	
   

  	
   

  	
   

  
	
  6.02

  	
   

  	
  The Parties’
  contribution in the registered capital set out as below:

  

 

	
  Party A shall contribute
  RMB 25,950,300 Yuan and hold a 29.8279% Equity Interest in the Company,

  
	
  Party B shall
  contribute RMB 8,832,900 Yuan and hold a 10.1528% Equity Interest in the
  Company,

  

 

6

 

	
  Party C shall
  contribute RMB 2,730,000 Yuan and hold a 3.1379% Equity Interest in the
  Company,

  
	
  Party D shall
  contribute RMB 1,456,800 Yuan and hold a 1.6745% Equity Interest in the
  Company,

  
	
  Party E shall
  contribute RMB 180,00 Yuan and hold a 0.2069% Equity Interest in the Company,

  
	
  Party F shall
  contribute RMB 4,350,000 Yuan and hold a 5% Equity Interest in the Company,
  and

  
	
  Party G shall
  contribute RMB 43,500,000 Yuan and hold 50% Equity Interest in the Company.

  

 

	
  6.03

  	
   

  	
  The Equity
  Interests of the Parties shall be paid in three installments in six months
  upon the business license is issued.

  

 

	
  The first
  installment shall be 15% of their respective contribution and shall be paid
  in cash in one (1) month after the Company obtains its business license, as
  set below:

  

 

	
  Party A: RMB 3,892,500
  Yuan

  
	
  Party B: RMB
  1,324,900 Yuan

  
	
  Party C: RMB
  409,500 Yuan

  
	
  Party D: RMB
  218,500Yuan

  
	
  Party E: RMB
  27,000 Yuan

  
	
  Party F: RMB
  652,500 Yuan

  
	
  Party G: RMB
  6,525,000Yuan

  

 

	
  The second
  installment shall be 50% of the contribution in cash in three (3) months
  after the Company obtains its business license, as set out below:

  
	
   

  
	
  Party A: RMB
  12,975,200 Yuan

  
	
  Party B: RMB
  4,416,500 Yuan

  
	
  Party C: RMB
  1,365,000 Yuan

  
	
  Party D: RMB
  728,400 Yuan

  
	
  Party E: RMB
  90,000 Yuan

  
	
  Party F: RMB
  2,175,000 Yuan

  
	
  Party G: RMB
  21,750,000 Yuan

  
	
   

  
	
  The third
  installment shall be 35% of the contribution in six (6) months after the
  Company obtains its business license, as set out below:

  
	
   

  
	
  Party A: RMB
  9,082,600 Yuan

  
	
  Party B: RMB
  3,091,500 Yuan

  
	
  Party C: RMB
  955,500 Yuan

  
	
  Party D: RMB
  509,900 Yuan

  
	
  Party E: RMB
  63,000 Yuan

  
	
  Party F: RMB
  1,522,500 Yuan

  
	
  Party G: RMB
  15,225,000 Yuan

  
	
   

  
	
  The Parties may
  determine an earlier contribution schedule.

  

 

7

 

	
  6.04

  	
   

  	
  The Company
  shall promptly after the Establishment Date issue one or more investment
  certificates to each of the Parties reflecting its respective Equity Interest
  in the Company.  Each such certificate
  issued after the Establishment Date shall be signed by the Chairman of the
  Company.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.05

  	
   

  	
  Except as
  otherwise expressly permitted by applicable law, the registered capital of
  the Company shall not be reduced in any manner during the Joint Venture
  Term.  No Party shall sell, assign,
  mortgage, pledge, transfer or otherwise dispose of its Equity Interest in the
  Company or its investment certificate therefor, unless in accordance with the
  provisions of this Contract and the Articles of Association or with the prior
  written consent of the other Parties. In case that one of the Parties transfers
  its part of or entire Equity Interest in the Company, other Parties have
  priority to purchase the same.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.06

  	
   

  	
  (a)

  	
   

  	
  The Parties
  agree that it may be necessary to increase the registered capital of the
  Company during the Joint Venture Term. 
  Any such increase in the registered capital of the Company shall be
  completed only upon the approval of the Board pursuant to Article 8.11(b) and
  Article 8.12 and shall be submitted for approval to the Examination and
  Approval Authority to the extent required by applicable law.  Unless otherwise agreed by the Parties,
  any additional capital contributions by the Parties in respect of such
  capital increase (i) shall be made in the form of cash, and the amount in
  United States Dollars of any contributions in RMB shall be calculated at the
  exchange rate for buying United States Dollars with RMB announced and in
  effect by the People’s Bank of China on the business day preceding the date
  on which such contribution (or part thereof) is due and (ii) shall be made by
  the Parties in the same proportions as their respective then-existing
  interests in the registered capital of the Company.

  
	
   

  	
   

  	
  (b)

  	
   

  	
  Upon receipt of
  approval (if required) of such capital increase, (i) the Parties shall take
  whatever action may be required to evidence such increase, (ii) such increase
  shall be verified by an independent accounting firm registered in China,
  (iii) the Company shall register the increase in registered capital with the
  relevant department of the State Administration for Industry and Commerce,
  and (iv) the Company shall issue investment certificates to the Parties, as
  described in Article 6.03, reflecting such increase.

  
	
   

  	
   

  	
   

  
	
  6.07

  	
   

  	
  In addition to
  its registered capital, the Company may borrow any necessary funds from
  domestic or international banks or other financial institutions on terms and
  conditions acceptable to it.

  
							

 

ARTICLE  7          JOINT VENTURE TERM

 

	
  7.01

  	
   

  	
  The duration of
  the Company shall continue for a period of twenty (20) years from the
  Establishment Date (the “Joint Venture Term”), unless earlier terminated
  pursuant to the provisions of this Contract.

  

 

8

 

	
  7.02

  	
   

  	
  Prior to the
  expiration thereof, the Parties may agree to extend the Joint Venture Term or
  any extension thereof.  Negotiations
  for the extension of the Joint Venture Term or any extension thereof shall
  begin not later than one year prior to the expiration of such term or
  extension and any contract for any extension shall, if required, be submitted
  to the Examination and Approval Authority for approval at least 180 days
  prior to the expiration of such term or extension.

  

 

ARTICLE  8          BOARD OF DIRECTORS

 

	
  8.1

  	
   

  	
  The Board of
  Directors shall be the highest authority of the Company, which shall be
  formally established on the Establishment Date, and the first meeting of the
  Board shall be convened in Beijing as soon as practicable after the
  Establishment Date.

  
	
   

  	
   

  	
   

  
	
  8.2

  	
   

  	
  The Board of
  Directors shall consist of seven (7) members.  Party A shall appoint one (1) director, Party B shall appoint
  one (1), Party C shall appoint one (1) director, TCL shall appoint one (1)
  director, and LP shall appoint three (3) directors.  In the event of any change in the ratio of ownership of the
  Parties of the registered capital of the Company (including as a result of an
  increase in registered capital), the total number of directors and the number
  of directors appointed by each Party shall be changed as necessary to reflect
  such change.

  
	
   

  	
   

  	
   

  
	
  8.3

  	
   

  	
  LP shall
  nominate one of the directors appointed by itself as the Chairman of the
  Board.  Notwithstanding the provisions
  of Article 8.05, the renewal of the term of office of the Chairman and the
  removal or replacement of the Chairman shall be subject to the approval of the
  Board.

  
	
   

  	
   

  	
   

  
	
  8.4

  	
   

  	
  The Chairman of
  the Board shall be the legal representative of the Company.  The Chairman shall have the authority (1)
  to lead the work of the Board, and to convene and preside over Board
  meetings, (2) to execute material contracts and other material documents of
  the Company in accordance with the prior approval of the Board, and if
  required, upon approval from the relevant authorities, (3) to check on the
  implementation of Board resolutions, to handle matters within the scope of
  his authority and to report on important matters at the next meeting of the
  Board, and (4) to exercise other powers conferred by duly adopted resolutions
  of the Board.  If the Chairman is
  unable to perform his duties, any other director authorized by the Chairman shall
  represent the Company in his stead until the Chairman shall return to his
  duties or a replacement shall have been appointed as provided herein.

  
	
   

  	
   

  	
   

  
	
  8.5

  	
   

  	
  The term of
  office for directors shall be four (4) years, and their terms may be renewed
  if re-appointed by the party which appointed them.  Each Party shall have the right, with or without cause, to
  remove or replace any of the directors it appoints prior to the expiration of
  any four (4) year term.  If a seat on
  the Board is vacated for any reason, the party which originally appointed the
  director whose seat is vacated shall within thirty (30) days appoint a
  successor to serve out the term of such director.

  
	
   

  	
   

  	
   

  
	
  8.6

  	
   

  	
  Regular meetings
  of the Board shall be convened and held not less than once every year.  Subject to the relevant provisions of
  Article 8.09, the Chairman shall set the 

  

 

9

 

	
   

  	
   

  	
  agenda for Board
  meetings.  Upon the written request of
  two or more of the directors, the Chairman shall convene a special meeting of
  the Board.  In addition, if the
  Chairman believes it is necessary, he may convene a special meeting of the
  Board.  Each meeting of the Board
  shall be convened by and presided over by the Chairman of the Board or, if
  the Chairman is unable to convene or preside over such meeting, any other
  director authorized by the Chairman shall convene and preside over such
  meeting in his stead.  If over
  two-thirds of the directors consent in writing, the Board may act without
  convening a formal meeting, and if no formal meeting is held, resolutions may
  be passed by written resolution signed by the required number of directors
  consenting to the passage of such resolutions without a Board meeting.  Facsimile signatures of directors shall be
  binding for this purpose.

  
	
   

  	
   

  	
   

  
	
  8.7

  	
   

  	
  The presence in
  person or by proxy of over four-seventh of the directors then serving shall
  constitute a quorum for any meeting of the Board.

  
	
   

  	
   

  	
   

  
	
  8.8

  	
   

  	
  If any member of
  the Board is unable to attend a Board meeting for any reason, he or she may
  appoint a proxy in writing to be present and to vote at the meeting.  A director may appoint any person
  (including any other director) with legal capacity as his or her proxy and
  one proxy may represent one or more directors.  Each written proxy shall set out the name of the individual
  appointed to represent the relevant director (and may also provide for
  alternate proxies to represent such director if the originally appointed
  proxy is unable or does not attend the relevant meeting).  In addition, each written proxy shall
  describe the scope and duration of the proxy; provided, however, that unless
  otherwise provided in the written proxy, a proxy shall have the same rights
  and powers as the director appointing such proxy, and the rights and powers
  of such proxy shall expire at the adjournment of the meeting for which such
  proxy was originally appointed.

  
	
   

  	
   

  	
   

  
	
  8.9

  	
   

  	
  In order to
  convene a meeting of the Board, the Chairman shall send written notice,
  including by mail, facsimile or e-mail, to each director’s address provided
  at least three (3) days prior to any meeting; provided, however, that no
  notice needs to be sent to convene the first meeting of the Board.  Such notice shall include a detailed
  agenda of matters to be discussed at the meeting and all reports, documents
  and other materials relevant or necessary for adequate and informed
  consideration of each matter on such agenda. 
  No action may be taken with respect to any matter not identified on
  the agenda of matters to be discussed at a meeting of the Board, unless
  discussion of the matter shall have been unanimously approved by the Board at
  such meeting.  Notice of any meeting
  of the Board may be waived by unanimous consent of all directors.

  
	
   

  	
   

  	
   

  
	
  8.10

  	
   

  	
  If any member of
  the Board is unable to attend a Board meeting for any reason, he or she may
  appoint a proxy in writing to be present and to vote at the meeting.  Neither presentation nor proxy shall be
  seen as abstention.

  
	
   

  	
   

  	
   

  
	
  8.11

  	
   

  	
  In the event of
  an emergency, the Chairman shall by the most rapid means of communication
  available, including but not be limited to, facsimile e-mail or call
  conferece notify each director of the nature of the emergency or unforeseen
  circumstances that require the Board to act, the reason for urgency, the
  proposed action to be taken, the time within which the action must be taken,
  and the convening

  

 

10

 

	
   

  	
   

  	
  of a Board
  meeting to consider such action.  If
  due to the urgency of the situation it is not possible to convene a meeting
  of the Board or to pass a resolution by signature of the required number of
  directors as provided in Article 8.06, within the time available for the
  Company to act, the written approval of the Chairman will suffice for
  management of the Company to act, and a Board meeting shall be convened or an
  appropriate resolution shall be signed as provided in Article 8.06 as soon as
  reasonably possible thereafter to ratify such action.

  
	
   

  	
   

  	
   

  
	
  8.12

  	
   

  	
  The following
  matters in respect of the Company may only be acted upon pursuant to a
  resolution duly passed by the Board as provided herein and in the Articles of
  Association:

  

 

	
  (a)

  	
   

  	
  any revision of the
  Articles of Association;

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  any increase in the
  registered capital of the Company;

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  any merger,
  acquisition, consolidation or reorganization of the Company or any transfer
  of all or substantially all of the assets of the Company;

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  the cessation of
  business and operations as a whole or the termination, dissolution or
  liquidation of the Company;

  
	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  any single transaction
  or series of related transactions creating indebtedness for borrowed
  money  in an amount equal to or
  exceeding RMB three million(or the equivalent thereof in any other currency),
  or the mortgaging or pledging of, or the creation of any other security
  interest in, any assets of the Company having a book value equal to or
  exceeding RMB three million(or the equivalent thereof in any other currency),
  for the purpose of securing such indebtedness; in each case unless in
  connection with the implementation of an approved operating plan or budget;

  
	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  any guarantee by the
  Company of indebtedness of any entity other than the Company, or the
  mortgaging or pledging of, or the creation of any other security interest in,
  any assets of the Company for the purpose of securing indebtedness of any
  entity other than the Company, unless contemplated in an approved operating
  plan or budget;

  
	
   

  	
   

  	
   

  
	
  (g)

  	
   

  	
  except as otherwise
  provided in these Articles or the Contract or as otherwise required by
  applicable law, the assignment of duties to any director or alteration of
  such duties;

  
	
   

  	
   

  	
   

  
	
  (h)

  	
   

  	
  any change in the
  location of the legal address or of the principal place of business of the
  Company;

  
	
   

  	
   

  	
   

  
	
  (i)

  	
   

  	
  allocations to or
  withdrawals from the general reserve fund, the business development fund and
  the bonus and welfare fund for workers and staff;

  
	
   

  	
   

  	
   

  
	
  (j)

  	
   

  	
  except as otherwise
  provided herein, the payment of profits or other distributions to the
  Parties;

  

 

11

 

	
  (k)

  	
   

  	
  the establishment of
  any subsidiary of the Company and the appointment of directors thereof;

  
	
   

  	
   

  	
   

  
	
  (l)

  	
   

  	
  the approval of the
  Company’s operating plan and budget for each fiscal year or any revision
  thereof which would result in a material increase in planned or budgeted
  expenditures by the Company;

  
	
   

  	
   

  	
   

  
	
  (m)

  	
   

  	
  the appointment,
  remuneration, removal or dismissal of the General Manager;

  
	
   

  	
   

  	
   

  
	
  (n)

  	
   

  	
  the assignment and/or
  adoption of any logo, trademark, service mark or technology for the Company
  or its Products or services;

  
	
   

  	
   

  	
   

  
	
  (o)

  	
   

  	
  the establishment and
  abolition of branch offices;

  
	
   

  	
   

  	
   

  
	
  (p)

  	
   

  	
  the formulation of
  basic management system;

  
	
   

  	
   

  	
   

  
	
  (q)

  	
   

  	
  the approval of annual
  accounting statements;

  
	
   

  	
   

  	
   

  
	
  (r)

  	
   

  	
  the purchase of any
  building or the acquisition of any land use rights, unless in connection with
  the implementation of an approved operating plan or budget;

  
	
   

  	
   

  	
   

  
	
  (s)

  	
   

  	
  the assignment or
  licensing of any intangible assets owned by the Company, including but not
  limited to patent rights, know-how or trademarks; and

  
	
   

  	
   

  	
   

  
	
  (t)

  	
   

  	
  any other matter
  expressly required by this Contract, the Articles of Association or by law to
  be decided or approved by a resolution of the Board.

  

 

	
  8.13

  	
   

  	
  Resolutions with
  respect to the matters enumerated in paragraphs (a) through (d) of Article
  8.12 shall require the unanimous approval of the directors present in person
  or by proxy at a duly constituted meeting of the Board.  Resolutions with respect to the other
  matters enumerated in Article 8.12 may only be passed by a vote of simple
  priority of the directors present in person or by proxy at a duly constituted
  meeting of the Board.

  
	
   

  	
   

  	
   

  
	
  8.14

  	
   

  	
  Directors who
  don’t hold any position in the management institution in the Company shall
  not obtain salaries from the Company.

  
	
   

  	
   

  	
   

  
	
  8.15

  	
   

  	
  The Company
  shall pay all reasonable necessary expenses relating to Board meetings,
  including reasonable necessary travel, meal, lodging and other expenses
  incurred by Board members (and their proxies) in traveling to and from and
  attending Board meetings.

  
	
   

  	
   

  	
   

  
	
  8.16

  	
   

  	
  List of address
  and phone numbers of the members of Board of Directors (omit).

  
	
   

  	
   

  	
   

  
	
  8.17

  	
   

  	
  Additional
  procedures relating to Board meetings shall be set out in detail in the
  Articles of Association.

  
	
   

  	
   

  	
   

  

 

12

 

ARTICLE  9          MANAGEMENT

 

	
  9.01

  	
   

  	
  Subject to the terms
  hereof and of the Articles of Association, the Board of Directors shall
  establish a management structure to carry out the day-to-day management of
  the Company.  The areas of
  responsibility of the General Manager and Deputy General Manager not otherwise
  specified herein shall be specified by the Board.  The Company shall implement a management system which shall
  include the following officers:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The day-to-day operation and management of the
  Company shall be under the direction of the General Manager of the Company.
  The General Manager and the Deputy General Manager shall be appointed and may
  be dismissed by the Board.  Their
  terms of office shall be four (4) years, and they may serve consecutive
  terms.

  
	
   

  	
   

  	
   

  
	
  9.02

  	
   

  	
  The duties of the General Manager shall consist of
  carrying out the decisions of the Board, organizing and directing the
  day-to-day operations and management of the Company in accordance with such
  decisions.  The powers and
  responsibilities of the General Manager shall be listed in the Articles of
  Association, and shall include final decision-making power with respect to
  daily operational and management matters. 
  The General Manager shall consult with the Deputy General Manager
  before making final decisions on important day-to-day business matters.  If for any reason the General Manager is
  unable to carry out his duties, the Deputy General Manager shall act in his
  stead until the General Manager shall return to his duties or a replacement
  shall have been appointed as provided herein.

  
	
   

  	
   

  	
   

  
	
  9.03

  	
   

  	
  Any employee of the Company who misuses his or her
  position, engages in graft, is seriously derelict in his or her duties, or
  fails consistently to complete in a timely fashion assigned tasks shall be
  dismissed, and a replacement shall be selected (a) in the case of the General
  Manager and the Deputy General Manager, by the Board pursuant to Section
  9.01(b); and (b) in all other cases, by or under the authority of the General
  Manager.  Unless otherwise approved by
  the Board, no employee of the Company shall concurrently hold any position in
  any other company, enterprise or economic organization.

  

 

ARTICLE  10       ANNUAL OPERATING PLAN AND BUDGET

 

	
  10.01

  	
   

  	
  The General Manager shall be responsible for the
  preparation of an annual operating plan and budget.  The operating plan and budget (including a projected balance
  sheet, profit and loss statement and cash flow report) for each one (1) year
  period shall be submitted to the Board for examination and approval by no
  later than October 31 of the preceding calendar year, and shall include
  comprehensive detailed information regarding the following matters, unless
  otherwise determined by the Board:

  

 

	
  (a)

  	
   

  	
  anticipated requirements for the repair and
  maintenance of the capital assets of the Company;

  

 

13

 

	
  (b)

  	
   

  	
  the estimated income and expenditures of the Company
  covered by the annual operating plan and budget;

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  plans, if any, for the raising and application of
  funds;

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  plans for labor management, including employee
  education and training; and

  
	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  any other matter in respect of which the Board or
  any director may have requested a report.

  

 

	
  10.02

  	
   

  	
  The Board shall convene a meeting for the
  examination and approval of the annual operating plan and budget and shall
  complete such examination and approval by no later than [December 1 of the
  preceding year].  In implementing the
  annual operating plan and budget as approved by the Board, the General
  Manager and the Deputy General Manager shall be subject to the relevant
  provisions of Article 9.

  
	
   

  	
   

  	
   

  
	
  10.03

  	
   

  	
  The General Manager shall be responsible for the
  preparation in each year of a long-term operating plan and budget for the
  next succeeding five (5) fiscal years. 
  Each such operating plan and budget shall be submitted to the Board
  for examination and approval in October of the fiscal year preceding the
  first fiscal year to which such plan relates.

  

 

ARTICLE  11       INTELLECTUAL PROPERTY

 

	
  11.01

  	
   

  	
  No rights are granted to any party or the Company in
  respect of any Intellectual Property as a result of this Contract unless
  specifically so provided herein.

  

 

ARTICLE  12       FINANCE AND ACCOUNTING

 

	
  12.01

  	
   

  	
  The Company shall
  establish its financial and accounting system pursuant to the relevant laws,
  regulations and provisions promulgated by the central and local financial
  authorities.  The Company shall submit
  its financial and accounting system to the relevant local finance and tax
  authorities for the record.

  
	
   

  	
   

  	
   

  
	
  12.02

  	
   

  	
  The Company’s fiscal
  year shall end on December 31 of each Gregorian calendar year.  The Company’s initial fiscal year shall
  begin on the date of its formation and end on December 31 of the same
  year.  The Company’s last fiscal year
  shall begin on January 1 and end on the date of dissolution of the Company in
  accordance with the provisions of relevant law.

  
	
   

  	
   

  	
   

  
	
  12.03

  	
   

  	
  The Company shall
  maintain complete and accurate books, statements of accounts and financial
  and related records, in accordance with the Company’s financial and
  accounting system.  Such financial materials
  shall be kept both in the Chinese and English language.  RMB shall be the standard bookkeeping
  currency for the financial records of the Company.  When the currency of any cash deposit, cash receipt,
  expenditure, or claim or expense relating to any debt of the Company differs
  from

  

 

14

 

	
   

  	
   

  	
  the standard
  bookkeeping currency of the Company, accounts shall also be kept in the
  currency actually paid or received.

  
	
   

  	
   

  	
   

  
	
  12.04

  	
   

  	
  The following financial
  principles shall be used as guidelines in the on-going operation of the
  Company:

  

 

	
  (a)

  	
   

  	
  return on sales and return on assets should be
  sufficient to meet the growth needs of the Company;

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  the pricing for materials or products bought or sold
  by the Company shall be established based on the competitive situation in the
  marketplace and the cost levels of the Company;

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  unless otherwise determined by the Board, 100% of
  after-tax net profits available for distribution to the Parties will be paid
  as dividends;

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  all financial reporting and controls shall satisfy
  the relevant stipulations of the Ministry of Finance of China regarding
  accounting and financial management of foreign investment enterprises; and

  
	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  all financial reporting and controls of the Company
  shall in addition satisfy the requirements of the GAAP, provided that such
  requirements do not contradict the relevant stipulations of the Ministry of
  Finance of China referred to in Article 12.04(d).

  

 

	
  12.05

  	
   

  	
  The Company shall
  prepare and provide quarterly and annual accounting statements to each Party
  and to the relevant tax departments of the Beijing Municipal People’s
  Government.  A balance sheet and an
  income and expense statement shall be provided to each Party not later than
  twelve (12) days after the end of each month.  Quarterly financial statements shall be provided to each Party
  not later than fifteen (15) days after the end of each quarter, and annual
  audited financial statements shall be provided to each Party not later than ninety
  (90) days after the end of each fiscal year. 
  The annual financial statements shall have been audited by the
  Independent Auditor at the Company’s expense and shall be accompanied by an
  audit report prepared by such Independent Auditor.

  
	
   

  	
   

  	
   

  
	
  12.06

  	
   

  	
  In addition to the
  monthly, quarterly and annual reports described in Section 12.05, the Company
  shall prepare and provide to LP such other financial reports in the form of
  10-Q and 10-K and containing such information as reasonably requested by LP.

  
	
   

  	
   

  	
   

  
	
  12.07

  	
   

  	
  Each of the Parties
  hereto shall also have the right to appoint an auditor to audit the accounts
  of the Company at its own expense, provided that such auditor undertakes to
  keep confidential all documents used in connection with such audit and,
  provided further, that such Party shall provide a copy of any report
  resulting from such audit to the Board. 
  The Company shall make available its accounting books and records to
  such auditor on reasonable terms during regular business hours.

  

 

15

 

	
  12.08

  	
   

  	
  The Company shall be
  entitled to open foreign exchange and RMB accounts.  The procedures for issuing and signing checks and initiating
  wire transfers shall be stated in the financial regulations of the Company.  LP shall have the right to remit outside
  China all payments (after deduction of all taxes according to relevant
  Chinese law) made to it by the Company, including amounts paid to it upon
  dissolution of the Company, in accordance with the relevant laws and regulations
  of China regarding foreign exchange control. 
  Unless otherwise specified in this Contract, the Articles of
  Association or in other contracts duly entered into by the Company, all
  expenses, loan repayments, labor compensation and other charges of the
  Company paid to Chinese enterprises or nationals shall be paid in RMB.

  
	
   

  	
   

  	
   

  
	
  12.09

  	
   

  	
  All the Company’s
  foreign exchange income shall be deposited in its foreign exchange
  account(s), and all payments by the Company in foreign exchange shall be made
  from its foreign exchange account(s).

  

 

ARTICLE  13       TAXATION

 

	
  13.01

  	
   

  	
  (a)

  	
   

  	
  The Company shall pay taxes in accordance with
  relevant published and publicly available laws and regulations of China.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  The workers and staff members of the Company shall
  pay individual income tax in accordance with the Individual Income Tax Law of
  China.  The Company shall not be
  responsible for the payment of any such taxes, except to the extent that it
  may be responsible under applicable law for reporting and for the payment of
  withholding taxes with respect to compensation paid to its employees.

  

 

	
  13.02

  	
   

  	
  Subject to approval by the relevant authorities (if
  required), the Parties shall take and cause the Company to take all
  reasonable actions necessary for the Company to obtain all preferential tax
  and customs duties treatment available in the same area and industry,
  including reductions and exemptions available to technologically advanced
  joint ventures.

  

 

ARTICLE  14       ALLOCATION AND DISTRIBUTION OF PROFITS

 

	
  14.01

  	
   

  	
  In accordance with the
  Joint Venture Law, the Company shall set aside an amount of money from after
  tax profits for its general reserve fund, its business development fund, and
  its bonus and welfare fund for workers and staff.  The actual amounts to be allocated to the general reserve fund,
  the business development fund and the bonus and welfare fund for workers and
  staff in each year shall be determined by the Board on the basis of the
  Company’s actual business and financial condition.

  

 

	
  14.02

  	
   

  	
  After allocations have
  been made to the general reserve fund, the business development fund and the
  bonus and welfare fund for workers and staff, the remaining after-tax net
  profits of the Company shall be distributed among the Parties in proportion
  to their respective shares in the registered capital of the Company.  Unless otherwise determined by the Board,
  the remaining after-tax net profit of the Company shall be distributed every
  year, and the amounts to be distributed shall be 

  

 

16

 

	
   

  	
   

  	
  fixed in RMB.  If the Company carries over losses from
  any previous year, the profit of the current year shall first be used to
  cover such losses, and no distribution shall be made until prior deficits are
  made up.  Any profit retained by the Company
  and carried over from the previous years may be distributed together with the
  distributive profit of the current year.

  

 

ARTICLE  15       LABOR AND PERSONNEL

 

	
  15.01

  	
   

  	
  (a)

  	
   

  	
  Pursuant to the labor
  laws and regulations of China and of the Beijing Municipal Government, which
  shall include the Labor Law of the People’s Republic of China, the
  Regulations of the People’s Republic of China on Labor Management, and other
  relevant published and publicly available laws and regulations, the Company
  shall create and amend from time to time as necessary its internal rules and
  regulations or “Employees Handbook” setting out rules applicable to the
  recruitment, employment, dismissal and resignation of Employees and their
  wages, salaries, welfare benefits, labor insurance, labor discipline and
  other relevant matters.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  The Company shall enter
  into individual employment contracts with each Employee incorporating the
  rules referred to in Section 15.01(a).

  

 

ARTICLE  16       CONFIDENTIALITY

 

	
  16.01

  	
   

  	
  (a)

  	
   

  	
  Each Party shall maintain
  the confidentiality of, and not disclose to any third person other than, nor
  use for any purpose except in strict compliance with the terms and conditions
  of this Contract, any Confidential Information at any time during the Joint
  Venture Term and thereafter, unless (1) such Confidential Information
  properly comes into the public domain prior to its disclosure through no
  fault of either Party or the Company, (2) the disclosure or use thereof is
  required by a mandatory provision of applicable law or a final non-appealable
  order of a competent court or (3) the disclosure or use thereof is authorized
  in advance in writing by the party that originally provided such Confidential
  Information.  Each Party shall take all
  measures reasonably available to it (including without limitation,
  administrative and legal action)(i) to cause its directors, management
  personnel and other employees, and departments in charge (if any), to comply
  in all respects with the confidentiality obligations set forth herein, and
  (ii) to prevent unauthorized disclosure, use or reproduction in any form or
  language of any Confidential Information.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  Each Party shall cause
  the Company to, and the Company shall, maintain the confidentiality of, and
  not disclose to any third person, nor use for any purpose except in strict
  compliance with the terms and conditions of this Contract, any Confidential
  Information, unless (1) such Confidential Information properly comes into the
  public domain prior to its disclosure through no fault of any party or the
  Company, (2) the disclosure or use thereof is required by a mandatory
  provision of applicable law or a final non-appealable order of a

  

 

17

 

	
   

  	
   

  	
   

  	
   

  	
  competent court, or (3)
  the disclosure or use thereof is authorized in advance in writing by the
  party that originally provided such Confidential Information.  The Company shall disclose Confidential
  Information only to those of its employees whose duties require such
  disclosure.  In addition, the Company
  shall take all measures reasonably available to it (including without
  limitation, administrative and legal action) (i) to cause its directors,
  management personnel and other employees, and department in charge (if any),
  to comply in all respects with the confidentiality obligations set out
  herein, (ii) to prevent unauthorized disclosure, use or reproduction in any
  form or language of any Confidential Information.

  

 

	
  16.02

  	
   

  	
  The confidentiality obligations stated herein shall
  survive for a period of ten (10) years after the termination of this Contract
  and the latest to occur of the termination, dissolution or liquidation of the
  Company.

  

 

ARTICLE  17       ADDITIONAL RESPONSIBILITIES OF THE
PARTIES

 

	
  17.01

  	
   

  	
  In addition to (but
  without duplication of) its other responsibilities under this Contract and
  the Articles of Association, Chinese Individual Investors shall be
  responsible for the following matters:

  

 

	
  (a)

  	
   

  	
  to assist in
  commencing, establishing and maintaining relationships with the relevant
  government departments, agencies and other relevant business departments for
  the establishment of the Company and for its operations on a continuing
  basis;

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  to assist in obtaining
  and maintaining an adequate supply of any elements and/or spare parts on a
  continuing basis for the Company to carry on its intended activities;

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  to assist in obtaining
  for the Company favorable national and local tax treatment, and

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  to perform its other
  obligations hereunder.

  

 

	
  17.02

  	
   

  	
  In addition to (but without duplication of) its
  other responsibilities under this Contract, LP shall be responsible for the
  following matters:

  

 

	
  (a)

  	
   

  	
  to assist the Company,
  when appropriate, to recruit qualified and trained expatriate management and
  senior technical personnel, and;

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  to perform its other
  obligations hereunder.

  

 

18

 

ARTICLE  18       TRANSFER OF INTERESTS

 

	
  18.01

  	
   

  	
  No Party may assign, sell or otherwise dispose of
  all or part of its respective interest in the registered capital of the
  Company to any third party unless the other Parties shall have consented in
  writing to such assignment, sale or disposition.

  
	
   

  	
   

  	
   

  
	
  18.02

  	
   

  	
  Any transfer, assignment or other disposition of any
  interest in the registered capital of the Company under Section 18.01:

  

 

	
  (a)

  	
   

  	
  shall be valid under the relevant laws of China and
  any other country or area having jurisdiction;

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  shall be to a transferee or assignee which has not
  been convicted of a crime and is not currently under criminal indictment; and

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  shall be made under a transfer agreement which
  provides that the transferee or assignee shall assume all the rights and
  obligations of the Disposing Party under this Contract and under the Articles
  of Association.

  

 

	
  18.03

  	
   

  	
  The foregoing provisions of this Article 18 (except
  Section 18.02) shall not apply to any transfer or assignment by any Party of
  any or all of its interest in the Company to any of its Affiliates.  Each of the Parties hereby consents to any
  transfer or assignment described in the preceding sentence and agrees that it
  will cause the directors of the Company appointed by it and the Company to
  take all actions that may be required to cause any such transfer or
  assignment to be approved by the Examination and Approval Authority.  Upon receipt of such approval, and if and
  to the extent required by applicable laws or regulations, (i) the parties
  shall take whatever action may be required to evidence such transfer or
  assignment, (ii) such transfer or assignment shall be verified by an
  independent accounting firm registered in China, (iii) the Company shall
  register such transfer or assignment with the relevant department of the
  State Administration for Industry and Commerce, and (iv) the Company shall
  issue investment certificates to the relevant Parties, as described in
  Section 6.03, reflecting such transfer or assignment and any changes in the
  respective investment ratios of the Parties.

  

 

ARTICLE  19       LIABILITIES FOR BREACH OF CONTRACT

 

	
  19.01

  	
   

  	
  If any Party has not made contribution payment on
  time in accordance with Article 5, such Party shall pay penalty to other
  Parties who have completed the contribution. Penalty shall be 3% of the
  related amount of the overdue contribution for the first month upon the due
  date, and 9% of the related amount of the overdue contribution after 3 months
  upon the due date. In addition, Parties who performed their duties have right
  to terminate this Contract and claim for indemnity.

  
	
   

  	
   

  	
   

  
	
  19.02

  	
   

  	
  In the event that a breach of contract committed by
  a Party results in the non-performance of or inability to fully perform this
  Contract, the liabilities arising from the breach of contract shall be borne
  by the Party in breach. In the event a breach of

  

 

19

 

	
   

  	
   

  	
  contract is committed by more Parties, each Party
  shall bear its individual share of liabilities arising from the breach of
  contract.

  

 

ARTICLE  20       AMENDMENT,
CHANGES, TERMINATION, DISSOLUTION AND LIQUIDATION

 

	
  20.01

  	
   

  	
  Any amendment to this Contract shall be in written
  signed by the Parties and shall be affective upon the approval by the
  original Examination and Approval Authority.

  
	
   

  	
   

  	
   

  
	
  20.02

  	
   

  	
  This Contract and the Articles of Association may be
  terminated as provided herein for any of the following reasons:

  

 

	
  (i)

  	
   

  	
  if any Party
  transfers its interest in the registered capital of the Company in violation
  of the provisions of this Contract or the Articles of Association;

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  if any Party
  materially breaches any other provisions of this Contract or violates any
  other provision of the Articles of Association,  and such breach or violation is not cured within sixty (60)
  days of written notice of such breach or violation to such  violating Party;

  
	
   

  	
   

  	
   

  
	
  (iii)

  	
   

  	
  if the
  conditions or consequences of an event of Force Majeure (as defined in
  Section 21.02) (A) prevail for a period of six (6) months, (B) have resulted
  in a material adverse impact on the business and prospects of the Company and
  (C) the parties are unable to reach agreement regarding the continued performance
  of this Contract, the Articles of Association, and/or any other agreements or
  contracts relating hereto or thereto; or

  
	
   

  	
   

  	
   

  
	
  (iv)

  	
   

  	
  for any other
  reason provided in relevant laws or regulations which renders it
  inappropriate or impossible for the Company to maintain its normal business
  operations.

  

 

	
  20.03

  	
   

  	
  Upon liquidation of the
  Company pursuant hereto, the Board shall (i) propose liquidation procedures
  and principles in accordance with relevant laws and regulations of China,
  (ii) establish a liquidation committee consisting of representatives
  nominated by each Party, and member from an institution of independent
  accountants licensed in China appointed by all Parties, and (iii) submit a
  report to the Beijing Municipal People’s Government containing such information
  as is required pursuant to the relevant laws and regulations of China.  In principle, the Liquidation Committee
  shall resolve all issues by consensus. 
  In the event that consensus cannot be reached, matters shall be
  decided by majority vote.

  
	
   

  	
   

  	
   

  
	
  20.04

  	
   

  	
  The tasks of the
  liquidation committee shall include conducting a comprehensive investigation
  of the assets and debts of, and claims against the Company, formulating a
  liquidation plan for approval by the Board, and implementing such liquidation
  plan on behalf of the Company.  In its
  implementation of such plan, the liquidation committee shall exercise its
  best efforts and judgment in obtaining the best prices for the Company’s
  assets including selling such assets outside of China or

  

 

20

 

	
   

  	
   

  	
  to foreign purchasers
  at prices higher than those otherwise obtainable within China.  In the liquidation of the assets of the
  Company, each of the Parties shall have priority in purchasing such assets if
  the price and terms offered by such Party are no less favorable than other
  offers.

  
	
   

  	
   

  	
   

  
	
  20.05

  	
   

  	
  The assets of the
  Company shall be liquidated and the proceeds therefrom shall be applied in
  the following sequence:

  

 

	
  (a)

  	
   

  	
  the expenses of
  liquidation and the remuneration of the members of the liquidation committee;

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  outstanding employee
  salaries and labor insurance payments;

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  unpaid taxes;

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  obligations secured by
  the assets of the Company;

  
	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  obligations not secured
  by the assets of the Company; and

  
	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  distribution of the
  remaining balance, if any, to the Parties in proportion to their respective
  then existing interests in the registered capital of the Company.

  
	
   

  	
   

  	
   

  
	
  All amounts payable to
  LP shall be calculated in RMB, paid in freely convertible foreign exchange
  and remitted upon approval by the State Administration for Exchange Control
  (if then required by applicable law) to the foreign bank designated by
  LP.  If there is insufficient foreign
  exchange to pay the share of LP, then unless LP agrees to accept RMB, the
  liquidation committee and the Company shall assist LP to obtain sufficient
  foreign exchange to pay such share by purchasing foreign exchange through
  authorized foreign exchange bank or other financial institution with the
  approval (if then required by applicable law) of the State Administration for
  Exchange Control. 

  

 

	
  20.06

  	
   

  	
  After the liquidation
  of the Company is completed, the liquidation committee shall submit a
  liquidation report to the Board and the Board, upon adoption of such
  liquidation report, shall submit it to the Examination and Approval Authority
  for approval.  Upon approval by the
  Examination and Approval Authority, the Board shall carry out procedures for
  canceling the Company’s registration at the Beijing Administration for
  Industry and Commerce, and shall cause the Company to turn in its business
  license for cancellation.  The
  Company’s books of account and other documents and records shall be preserved
  by TCL.  .

  
	
   

  	
   

  	
   

  
	
  20.07

  	
   

  	
  The expiration or
  termination of this Contract for any cause shall not release any Party from
  any liability which at the time of expiration or termination has already
  accrued or which thereafter accrues in respect of any act or omission prior
  to such expiration or termination.

  

 

21

 

ARTICLE  21       MISCELLANEOUS

 

	
  21.01

  	
   

  	
  (a) The execution, validity, interpretation and
  implementation of this Contract shall be governed by the published and
  publicly available laws of China and the treaties and other international
  agreements to which China is a party. 
  If there is no such law or treaty or international agreement governing
  a particular matter relating to this Contract, reference shall be made to
  international custom and practice.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  If any Party’s economic benefits are adversely and
  materially affected by the promulgation of any new laws or regulations of
  China, or the amendment or interpretation of any existing laws or regulations
  of China, the Parties shall promptly consult with one another and use their
  reasonable best efforts to implement any adjustment necessary to maintain the
  economic benefit each Party would have reasonably derived had such laws or
  regulations not been promulgated or so amended or interpreted.

  

 

	
  21.02

  	
   

  	
  (a)

  	
   

  	
  “Force Majeure” shall mean any event which: (i) is
  beyond the control of the affected Party; (ii) is unforeseen or, if foreseen,
  is unavoidable; (iii) arises after the date of the execution of this
  Contract; (iv) prevents total or partial performance by such Party of this
  Contract and/or any other agreements relating hereto.  Such events shall include, but not be
  limited to, floods, fires, droughts, typhoons, earthquakes or other natural
  disasters, transportation disasters, strikes (other than strikes by the Company’s
  work force), civil unrest or disturbance, riots and war (whether or not
  declared).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  Should either of the Parties to this Contract be
  prevented from performing any of its obligations by an event of Force
  Majeure, the performance of such obligation shall be suspended for the period
  during which such event of Force Majeure prevents performance.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
   

  	
  A Party claiming that its performance is affected by
  an event of Force Majeure shall notify the other Parties by telecopy or
  facsimile within the shortest possible time of the occurrence of such event,
  and shall within thirty (30) days of when the event of Force Majeure arose
  send by registered airmail to the other Party appropriate proof of the
  occurrence and duration of such event. 
  Any Party claiming that its performance is affected by an event of
  Force Majeure shall use all reasonable efforts to eliminate or mitigate the
  effects of such event of Force Majeure.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)

  	
   

  	
  If any event of Force Majeure shall occur, the
  parties shall immediately commence friendly negotiations in an attempt to
  settle how this Contract, the Articles of Association and/or any other
  agreements or contracts relating hereto or thereto shall continue to be
  implemented.

  

 

	
  21.03

  	
   

  	
  Except as otherwise
  expressly permitted by the terms hereof or of the Articles of Association, no
  Party shall assign any of its rights or obligations under this Contract
  without the prior written consent of the other Party, and the obtaining of
  all necessary approvals from the Examination and Approval Authority.

  

 

22

 

	
  21.04

  	
   

  	
  Any notice or other
  written communication provided for in or relating to this Contract or the
  Articles of Association shall be made in writing by facsimile or by registered
  airmail letter.  Unless otherwise
  specified by notice to the other Party, the notice address of each Party
  shall be the address indicated below. 
  The date of receipt of a notice or communication hereunder shall be
  deemed to be seven (7) days after its postmark in the case of a registered
  airmail letter and two (2) working days after dispatch in the case of a
  facsimile.

  

 

	
  (a)

  	
   

  	
  TCL Computer
  Technology C., Ltd.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  
	
   

  	
   

  	
  Tel:

  
	
   

  	
   

  	
  Fax:

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Lotus Pacific,
  Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  
	
   

  	
   

  	
  Tel:

  
	
   

  	
   

  	
  Fax:

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Chinese
  Individual Investors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Address:

  
	
   

  	
   

  	
  Tel:

  
	
   

  	
   

  	
  Fax:

  	
  (Omit)

  

 

	
  21.05

  	
   

  	
  (a)

  	
   

  	
  Subject to the Parties’
  rights to terminate this Contract as provided in Article 19, in the event a
  dispute arises among the Parties in connection with the interpretation or
  implementation of this Contract, the Articles of Association or any other
  contract, agreement or document relating to any of the foregoing or the
  transactions contemplated hereby or thereby, the parties to the dispute shall
  attempt to settle such dispute through friendly consultations.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  If no mutually
  acceptable settlement of such dispute is reached within sixty (60) days, then
  the dispute shall be submitted to China International Economic and Trade
  Arbitration Commission in Beijing for exclusive, final, non-appellant and
  binding settlement by arbitration in accordance with the Arbitration Rules
  being in force at the time a particular dispute is submitted for arbitration,
  which rules are deemed to be incorporated by reference herein.  Except for the arbitration contemplated
  herein, each of the Parties hereby expressly and irrevocably waives any right
  to bring any legal suit, action or proceeding arising out of or based upon
  this Contract and the Articles of Association or any other contract,
  agreement or document relating to any of the foregoing or the transactions
  contemplated hereby or thereby in any court in any jurisdiction.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
   

  	
  Without limiting the
  rights of the parties to terminate this Contract as provided herein,
  commencement of arbitration proceedings shall not otherwise give rise

  

 

23

 

	
   

  	
   

  	
   

  	
   

  	
  to termination of this
  Contract, the Articles of Association or any other relevant contract or
  agreement, which will continue to be in full force and effect pending the
  decision rendered by the arbitrators.

  

 

	
  21.06

  	
   

  	
  This Contract
  (including its Appendices), together with the Articles of Association and the
  other Project Documents, constitute the complete and only agreement among the
  Parties and take the place of all prior agreements, contracts, understandings
  and communications among the Parties, whether oral or written, relating to
  the subject matter hereof.  No
  amendment of this Contract shall be valid or binding on the Parties unless
  made in writing and signed by an authorized representative of each Party, and
  (if required by applicable law) approved by the Examination and Approval
  Authority.

  
	
   

  	
   

  	
   

  
	
  21.07

  	
   

  	
  Failure or delay on the
  part of a Party to exercise any right, power or privilege under this Contract
  shall not operate as a waiver, nor shall any single or partial exercise of
  any right, power or privilege preclude any future exercise thereof.

  
	
   

  	
   

  	
   

  
	
  21.08

  	
   

  	
  If any term or
  provision of this Contract is hereafter determined to be illegal by any court
  of competent jurisdiction, the remainder of this Contract shall not be
  affected thereby and shall continue in force notwithstanding such illegal
  provision or provisions.

  
	
   

  	
   

  	
   

  
	
  21.09

  	
   

  	
  The rights and
  obligations of the Parties pursuant to this Contract shall continue to exist
  throughout the Joint Venture Term, and the establishment of the Company and
  the adoption of the Articles of Association shall not prejudice the rights
  and obligations set out in this Contract. 
  In the event of any conflict between the provisions of this Contract
  and of the Articles of Association, the provisions of this Contract shall
  control.

  
	
   

  	
   

  	
   

  
	
  21.10

  	
   

  	
  The language of this
  Contract is Chinese.

  
	
   

  	
   

  	
   

  
	
  21.11

  	
   

  	
  The Contract is made in
  twelve (12) originals.  Each Party
  shall retain one  (1) original, the
  Company shall retain three (3) originals and other two (2) originals shall be
  retained by the Examination and Approval Authority at the central and local
  levels.

  
	
   

  	
   

  	
   

  
	
  21.12

  	
   

  	
  This Contract shall be
  approved by the Examination and Approval Authority and shall be effective
  upon the approval date, the same is any amendment.

  
	
   

  	
   

  	
   

  
	
  21.13

  	
   

  	
  With respect to rights
  and obligations of the Parties, corresponding letter mails in written shall
  be sent upon the notices via telex, fax or phone call.

  

 

IN WITNESS WHEREOF, the
Parties have caused their duly authorized representatives to execute this
Contract on January 18, 2003.

 

24

 

[PAGE OF SIGNATURES ]

 

	
   

  	
  TCL Computer Technology Co., Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Li Dongsheng

  	
   

  
	
   

  	
  Name: Li Dongsheng

  
	
   

  	
  Title:Chairman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lotus Pacific, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Li Dongsheng

  	
   

  
	
   

  	
  Name: Li Dongsheng

  
	
   

  	
  Title: Chairman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Liu Dongyuan

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Cheng Fei

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Gao Jianou

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Wang Huansheng 

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Han Jingzhe

  	
   

  
							

 

25

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