Document:

Exhibit 10.10

 

Translation of $1.5 million
loan between GoVideo and TCL

 

Control number:

 

Agreement of Internal loans
of TCL Industries Holdings (Hong Kong) Ltd.

 

Debitor (“Party A)”): Go
Video

Creditor (“Party B”): TCL
Industries Holdings (Hong Kong) Ltd.

 

Party A, for its business
needs, intends to apply a loan from Party B, which agrees to make such a loan.
The both parties agree to reach the flowing agreements based on mutual consents
and governing laws and regulations:

 

1.               Loan type:  Short term loan.

 

2.               Loan amount:  One million five hundred thousand US dollars.

 

3.               Purpose of the loan:  To satisfy the needs of the business
expansion of the subsidiaries.

 

4.               Loan terms: 
Six months between 07/25/03 and 01/24/04. If the beginning date of the
loan on any subsequent amendment(s) to renew this loan is different from this
original date, the beginning date on this agreement should used for the purpose
of calculation. Any subsequent extensions of this loan shall be a part to this
agreement and shall have the same binding force.

 

5.               Interest Loan interest rate, calculation of
interest

(1) The monthly interest
rate shall be 0.257%.

(2) Interest shall be
calculated monthly and calculated on every 20th of the month. Daily
interest rate shall be monthly rate divided by 30.

(3) Any adjustment of
interest rate before the maturity of the loan shall be based on the bank
regulation on interest rate.

 

6.               Condition of releasing the loan to debitor

(1) Party A properly
completed the registration process and satisfied all the legal documents for
the loan to be released;

(2) If the loan requires
collateral, all the conditions are satisfied by Party A or the third party.

(3) Party A has not breached
any clause that required by for this loan.

 

7.               Payment of interest and principal

(1) Party A shall pay
interest on the interest calculation day. First payment is the day after the
first calculation day of the month, and last payment shall be made together
with the principal when the loan matures.

(2) Party A agrees to accrue
sufficient amount to pay interest when due, and remit the interest payment to
Party B’s designated bank account.

(3) Party A shall reserve
sufficient amount in its bank account when the loan matures in order to payback
the principal amount of the loan.

(4) If Party A fails to
payback the loan amount when the loan matures, Party B has the right to dispose
the collateral at its discretion or seek legal venue to resolve the issue.

 

1

 

8.               Collateral

The collateral required for
this loan is the number 3 in the following list;

(1)          Guarantee;

(2)          Collateral;

(3)          Collateral with physical assets; (X) (Lotus
equity interest in Correlant)

(4)          Letter of credit;

(5)          Counter guarantee;

(6)          Letter of promissory notes;

(7)          Others 

 

9.               The main rights and liabilities of both
parties

(1) The rights and
liabilities of Party A:

(A) The rights of Party A

(a) Party A has the right to
ask Party B to release the loan;

(b) Party A has the right to
use the loan under the terms of the loan agreement;

(c) Party A has the right to
ask Party B for extension(s) of the loan with the consent of Party B;

(d) Party A has the right to
ask Party B to keep the confidentiality of all the information regarding its
accounting and business operation, except otherwise governed by the laws and
regulations

(B) The liabilities of Party
A

(a) Party A shall pay back
the principal and interest when the loan matures;

(b) Party A shall use the
loan in accordance with the terms of the agreement, and not use the loan for
other purpose without written consent from Party B;

(c) Party A shall provide
Party B with all the information include but not limited accounting,
statistics, business planning and KPI, etc. when requested by Party B.

(d) Without payback the loan
amount, Party A shall not use the loan amount as collateral to secure another
loan;

(e) If Party A will provide
guarantee to other parties before the loan is matured, Party A must notice
Party B and receives consent from Party B;

(f) Party A shall provide
Party B with additional collateral if the value of the collateral used for this
loan is less that the original stated amount as required by the agreement;

(g) Party A must notify
Party B for any changes made to its name, legal person, business registration,
registered capital, etc.

(h) Party A must notice
Party B within 10 days for any of the following that may affect Party B to
exercise its right as a creditor: contract, joint venture, merge, acquisition,
spin-off, apply for close of business, apply for bankruptcy, etc.

(i) Party A shall
immediately notify Party B for any of the following: closedown of business
operation, revoke of business license, revoked of business registration, any
involvement of legal person in illegal activities, becomes a party to legal action,
severe deterioration of financial conditions, and resolve the payment of the
loan and collateral under the conditions of Party B;

(2) Rights and liabilities
of Party B

(A) The rights of Party B

 

2

 

(a) Party B has the rights
to get access to the information regarding Party A’s financial and business
operation, has the right to ask Party A to provide all the information include
but not limited to its planning, accounting and KPI data;

(b) Party B has the right to
audit Party A on the use of the loan.

(B) The liabilities of Party
B

(a) Party B shall release
the loan amount to Party A once the agreement is effective, unless for the
reasons caused by Party A;

(b) Party B agrees to keep
all the information provided by Party A confidential
unless otherwise mandated by laws and regulations.

 

10.         Change and termination of the loan agreement

(1) The agreement may be
revised, amended or terminated with the written agreement by both parties. Any
changes made shall become part of the whole agreement. If any provision of this
agreement is held invalid and void, the balance of the provisions will remain
in full force and effect.

(2) If Party A plans to
transfer its rights and liabilities to the third party, it must get a written
consent from Party B, and transfer will not be valid unless the third party
sign the new loan agreement with Party B;

(3) Party A must give a 30
day notice to Party for any of the following actions: contract, leasing, merge
and acquisition, joint venture, joint corporation,
ownership change etc. Party A shall not take any actions unless it receives a
written consent from Party B;

(4) Party A agrees to
continue to bear the responsible for the liabilities of the loan even though it
has joint venture, joint corporation or equity merge,
in which Party A has equity interest.

 

11. Breach of agreement

(1) If Party A fails to
payback the principal when the loan agreement at the maturity date, Party B has
the right accrue the interest at the daily rate of 2.1/10000.

(2) If Party A fails to pay
interest, Party B has the right to accrue the interest at the daily rate of
2.1/10000. If Party A pays back the principal amount but fails to the accrued
the interest, Party B has the right to continue to accrue the interest on the
unpaid amount of interest at a daily compound rate of 2.1/10000.

(3) If Party A uses the loan
for the purposes other than stated in the loan agreement, Party B has the right
to charge a penalty for the breached amount at the daily rate of 5/10000.

(4) At any time before the
loan agreement matures, Party B has the right to stop releasing the loan, take
back the loan and interest that were release to Party A, or deduct directly
from Party A’s account if Party A:

(a)
fails to pay back principal or interest;

(b) use
the loan for other purpose;

(c) provide
false information to Party B;

(d) breaches
part of the loan agreement;

(e) is
involved in law suites or litigations that substantially affect Party A’s
business;

 

3

 

(f) deterioration
of Party A’s financial situation;

(g) faces
any of the following situations: depreciation, damage, loss, frozen of the
collateral and fails to provide new collateral;

(h) Any actions by Party A
that affect its ability to payback the loan principal and interest.

 

12.         Settlement of dispute

Both parties shall consult
with each other for any disputes regarding the loan agreement; unresolved
disputes shall be arbitrated by the management of TCL Corporation. During the
period of dispute, the balance of the agreement shall be in full force.

 

13. Others

(1) Any other issues that
are included the loan agreement but pertinent to the agreement, both parties
shall follow the laws, rules and regulations of the government;

(2) The loan agreement shall
be effective once it is properly signed by the legal persons of the two
parties. The agreement will be terminated once all the principal and interest
are fully paid.

(3) This agreement will be
executed in counterpart copies and each and all of which will be deemed an
original.

 

14. Special clause

(1) Party A acknowledges
that Party B fully consulted with Party A for all the provisions in the loan
agreement.

(2) Party A acknowledges
that it has full comprehension of all the provisions of the loan agreement, and
Party B gives all the explanations to Party A for any and all of the questions
that Party A has.

(3) Both parties consent
that they have no disagreement over the provisions of the agreement.

 

 

	
   

  	
  Party A: Legal person or
  authorized signer:

  	
  /s/ Yimin Foo, CFO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated: June 28, 2003

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Party B: Legal person or
  authorized signer:

  	
  /s/ Yuan Bing,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated: June 28, 2003

  	
   

  
					

 

4

 

Translation of $1.5 million
loan between GoVideo and TCL

 

Control number:

 

Agreement of Internal loans
of TCL Industries Holdings (Hong Kong) Ltd.

 

Debitor (“Party A)”): Go
Video

Creditor (“Party B”): TCL
Industries Holdings (Hong Kong) Ltd.

 

Party A, for its business
needs, intends to apply a loan from Party B, which agrees to make such a loan.
The both parties agree to reach the flowing agreements based on mutual consents
and governing laws and regulations:

 

1.               Loan type:  Short term loan.

 

2.               Loan amount:  One million five hundred thousand US dollars.

 

3.               Purpose of the loan:  To satisfy the needs of the business
expansion of the subsidiaries.

 

4.               Loan terms: 
Six months between 01/25/04 and 07/24/04. If the beginning date of the
loan on any subsequent amendment(s) to renew this loan is different from this
original date, the beginning date on this agreement should used for the purpose
of calculation. Any subsequent extensions of this loan shall be a part to this
agreement and shall have the same binding force.

 

5.               Interest Loan interest rate, calculation of
interest

(1) The monthly interest
rate shall be 0.257%.

(2) Interest shall be
calculated monthly and calculated on every 20th of the month. Daily
interest rate shall be monthly rate divided by 30.

(3) Any adjustment of
interest rate before the maturity of the loan shall be based on the bank
regulation on interest rate.

 

6.               Condition of releasing the loan to debitor

(1) Party A properly
completed the registration process and satisfied all the legal documents for
the loan to be released;

(2) If the loan requires collateral,
all the conditions are satisfied by Party A or the third party.

(3) Party A has not breached
any clause that required by for this loan.

 

7.               Payment of interest and principal

(1) Party A shall pay
interest on the interest calculation day. First payment is the day after the
first calculation day of the month, and last payment shall be made together
with the principal when the loan matures.

(2) Party A agrees to accrue
sufficient amount to pay interest when due, and remit the interest payment to
Party B’s designated bank account.

(3) Party A shall reserve
sufficient amount in its bank account when the loan matures in order to payback
the principal amount of the loan.

(4) If Party A fails to
payback the loan amount when the loan matures, Party B has the right to dispose
the collateral at its discretion or seek legal venue to resolve the issue.

 

1

 

8.               Collateral

The collateral required for
this loan is the number 3 in the following list;

(1)          Guarantee;

(2)          Collateral;

(3)          Collateral with physical assets; (X) (Lotus
equity interest in Correlant)

(4)          Letter of credit;

(5)          Counter guarantee;

(6)          Letter of promissory notes;

(7)          Others 

 

9.               The main rights and liabilities of both
parties

(1) The rights and liabilities
of Party A:

(A) The rights of Party A

(a) Party A has the right to
ask Party B to release the loan;

(b) Party A has the right to
use the loan under the terms of the loan agreement;

(c) Party A has the right to
ask Party B for extension(s) of the loan with the consent of Party B;

(d) Party A has the right to
ask Party B to keep the confidentiality of all the information regarding its
accounting and business operation, except otherwise governed by the laws and
regulations

(B) The liabilities of Party
A

(a) Party A shall pay back
the principal and interest when the loan matures;

(b) Party A shall use the
loan in accordance with the terms of the agreement, and not use the loan for
other purpose without written consent from Party B;

(c) Party A shall provide
Party B with all the information include but not limited accounting,
statistics, business planning and KPI, etc. when requested by Party B.

(d) Without payback the loan
amount, Party A shall not use the loan amount as collateral to secure another
loan;

(e) If Party A will provide
guarantee to other parties before the loan is matured, Party A must notice
Party B and receives consent from Party B;

(f) Party A shall provide
Party B with additional collateral if the value of the collateral used for this
loan is less that the original stated amount as required by the agreement;

(g) Party A must notify
Party B for any changes made to its name, legal person, business registration,
registered capital, etc.

(h) Party A must notice
Party B within 10 days for any of the following that may affect Party B to
exercise its right as a creditor: contract, joint venture, merge, acquisition,
spin-off, apply for close of business, apply for bankruptcy, etc.

(i) Party A shall
immediately notify Party B for any of the following: closedown of business
operation, revoke of business license, revoked of business registration, any
involvement of legal person in illegal activities, becomes a party to legal
action, severe deterioration of financial conditions, and resolve the payment
of the loan and collateral under the conditions of Party B;

(2) Rights and liabilities
of Party B

(A) The rights of Party B

 

2

 

(a) Party B has the rights
to get access to the information regarding Party A’s financial and business
operation, has the right to ask Party A to provide all the information include
but not limited to its planning, accounting and KPI data;

(b) Party B has the right to
audit Party A on the use of the loan.

(B) The liabilities of Party
B

(a) Party B shall release
the loan amount to Party A once the agreement is effective, unless for the
reasons caused by Party A;

(b) Party B agrees to keep
all the information provided by Party A confidential
unless otherwise mandated by laws and regulations.

 

10.         Change and termination of the loan agreement

(1) The agreement may be
revised, amended or terminated with the written agreement by both parties. Any
changes made shall become part of the whole agreement. If any provision of this
agreement is held invalid and void, the balance of the provisions will remain
in full force and effect.

(2) If Party A plans to
transfer its rights and liabilities to the third party, it must get a written
consent from Party B, and transfer will not be valid unless the third party
sign the new loan agreement with Party B;

(3) Party A must give a 30
day notice to Party for any of the following actions: contract, leasing, merge
and acquisition, joint venture, joint corporation,
ownership change etc. Party A shall not take any actions unless it receives a
written consent from Party B;

(4) Party A agrees to
continue to bear the responsible for the liabilities of the loan even though it
has joint venture, joint corporation or equity merge,
in which Party A has equity interest.

 

11. Breach of agreement

(1) If Party A fails to
payback the principal when the loan agreement at the maturity date, Party B has
the right accrue the interest at the daily rate of 2.1/10000.

(2) If Party A fails to pay
interest, Party B has the right to accrue the interest at the daily rate of
2.1/10000. If Party A pays back the principal amount but fails to the accrued
the interest, Party B has the right to continue to accrue the interest on the
unpaid amount of interest at a daily compound rate of 2.1/10000.

(3) If Party A uses the loan
for the purposes other than stated in the loan agreement, Party B has the right
to charge a penalty for the breached amount at the daily rate of 5/10000.

(4) At any time before the
loan agreement matures, Party B has the right to stop releasing the loan, take
back the loan and interest that were release to Party A, or deduct directly
from Party A’s account if Party A:

(a)
fails to pay back principal or interest;

(b) use
the loan for other purpose;

(c) provide
false information to Party B;

(d) breaches
part of the loan agreement;

(e) is
involved in law suites or litigations that substantially affect Party A’s
business;

 

3

 

(f) deterioration
of Party A’s financial situation;

(g) faces
any of the following situations: depreciation, damage, loss, frozen of the
collateral and fails to provide new collateral;

(h) Any actions by Party A
that affect its ability to payback the loan principal and interest.

 

12.         Settlement of dispute

Both parties shall consult
with each other for any disputes regarding the loan agreement; unresolved
disputes shall be arbitrated by the management of TCL Corporation. During the
period of dispute, the balance of the agreement shall be in full force.

 

13. Others

(1) Any other issues that
are included the loan agreement but pertinent to the agreement, both parties
shall follow the laws, rules and regulations of the government;

(2) The loan agreement shall
be effective once it is properly signed by the legal persons of the two
parties. The agreement will be terminated once all the principal and interest
are fully paid.

(3) This agreement will be
executed in counterpart copies and each and all of which will be deemed an
original.

 

14. Special clause

(1) Party A acknowledges
that Party B fully consulted with Party A for all the provisions in the loan
agreement.

(2) Party A acknowledges
that it has full comprehension of all the provisions of the loan agreement, and
Party B gives all the explanations to Party A for any and all of the questions
that Party A has.

(3) Both parties consent
that they have no disagreement over the provisions of the agreement.

 

 

	
   

  	
  Party A:  Legal
  person or authorized signer:

  	
  /s/ Steve Davis, CFO

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Dated: January 23, 2004

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Party B: Legal person or
  authorized signer:

  	
  /s/ Yuan Bing,

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Dated: January 23, 2004

  	
   

  	
   

  
					

 

4

 

Translation of $1.5 million
loan between GoVideo and TCL

 

Control number:

 

Agreement of Internal loans
of TCL Industries Holdings (Hong Kong) Ltd.

 

Debitor (“Party A)”): Go
Video

Creditor (“Party B”): TCL
Industries Holdings (Hong Kong) Ltd.

 

Party A, for its business
needs, intends to apply a loan from Party B, which agrees to make such a loan.
The both parties agree to reach the flowing agreements based on mutual consents
and governing laws and regulations:

 

1.     Loan type:  Short term
loan.

 

2.     Loan amount:  One million
five hundred thousand US dollars.

 

3.     Purpose of the loan:  To
satisfy the needs of the business expansion of the subsidiaries.

 

4.     Loan terms:  Six months
between 07/25/04 and 01/24/05. If the beginning date of the loan on any
subsequent amendment(s) to renew this loan is different from this original
date, the beginning date on this agreement should used for the purpose of
calculation. Any subsequent extensions of this loan shall be a part to this
agreement and shall have the same binding force.

 

5.     Interest Loan interest rate, calculation of interest(1)
The monthly interest rate shall be 0.257%.

(2) Interest shall be
calculated monthly and calculated on every 20th of the month. Daily interest
rate shall be monthly rate divided by 30.

(3) Any adjustment of
interest rate before the maturity of the loan shall be based on the bank
regulation on interest rate.

 

6.     Condition of releasing the loan to debitor

(1) Party A properly
completed the registration process and satisfied all the legal documents for
the loan to be released;

(2) If the loan requires
collateral, all the conditions are satisfied by Party A or the third party.

(3) Party A has not breached
any clause that required by for this loan.

 

7.     Payment of interest and principal

(1) Party A shall pay
interest on the interest calculation day. First payment is the day after the
first calculation day of the month, and last payment shall be made together
with the principal when the loan matures.

(2) Party A agrees to accrue
sufficient amount to pay interest when due, and remit the interest payment to
Party B’s designated bank account.

(3) Party A shall reserve
sufficient amount in its bank account when the loan matures in order to payback
the principal amount of the loan.

(4) If Party A fails to
payback the loan amount when the loan matures, Party B has the right to dispose
the collateral at its discretion or seek legal venue to resolve the issue.

 

1

 

8.               Collateral

The collateral required for
this loan is the number 3 in the following list;

(1)          Guarantee;

(2)          Collateral;

(3)          Collateral with physical assets; (X) (Lotus
equity interest in Correlant)

(4)          Letter of credit;

(5)          Counter guarantee;

(6)          Letter of promissory notes;

(7)          Others

 

9.               The main rights and liabilities of both
parties

(1) The rights and
liabilities of Party A:

(A) The rights of Party A

(a) Party A has the right to
ask Party B to release the loan;

(b) Party A has the right to
use the loan under the terms of the loan agreement;

(c) Party A has the right to
ask Party B for extension(s) of the loan with the consent of Party B;

(d) Party A has the right to
ask Party B to keep the confidentiality of all the information regarding its
accounting and business operation, except otherwise governed by the laws and
regulations

(B) The liabilities of Party
A

(a) Party A shall pay back
the principal and interest when the loan matures;

(b) Party A shall use the
loan in accordance with the terms of the agreement, and not use the loan for
other purpose without written consent from Party B;

(c) Party A shall provide
Party B with all the information include but not limited accounting,
statistics, business planning and KPI, etc. when requested by Party B.

(d) Without payback the loan
amount, Party A shall not use the loan amount as collateral to secure another
loan;

(e) If Party A will provide
guarantee to other parties before the loan is matured, Party A must notice
Party B and receives consent from Party B;

(f) Party A shall provide
Party B with additional collateral if the value of the collateral used for this
loan is less that the original stated amount as required by the agreement;

(g) Party A must notify
Party B for any changes made to its name, legal person, business registration,
registered capital, etc.

(h) Party A must notice
Party B within 10 days for any of the following that may affect Party B to
exercise its right as a creditor: contract, joint venture, merge, acquisition,
spin-off, apply for close of business, apply for bankruptcy, etc.

(i) Party A shall
immediately notify Party B for any of the following: closedown of business
operation, revoke of business license, revoked of business registration, any
involvement of legal person in illegal activities, becomes a party to legal
action, severe deterioration of financial conditions, and resolve the payment
of the loan and collateral under the conditions of Party B;

(2) Rights and liabilities
of Party B

(A) The rights of Party B

 

2

 

(a) Party B has the rights
to get access to the information regarding Party A’s financial and business
operation, has the right to ask Party A to provide all the information include
but not limited to its planning, accounting and KPI data;

(b) Party B has the right to
audit Party A on the use of the loan.

(B) The liabilities of Party
B

(a) Party B shall release
the loan amount to Party A once the agreement is effective, unless for the
reasons caused by Party A;

(b) Party B agrees to keep
all the information provided by Party A confidential
unless otherwise mandated by laws and regulations.

 

10.         Change and termination of the loan agreement

(1) The agreement may be
revised, amended or terminated with the written agreement by both parties. Any
changes made shall become part of the whole agreement. If any provision of this
agreement is held invalid and void, the balance of the provisions will remain
in full force and effect.

(2) If Party A plans to
transfer its rights and liabilities to the third party, it must get a written
consent from Party B, and transfer will not be valid unless the third party
sign the new loan agreement with Party B;

(3) Party A must give a 30
day notice to Party for any of the following actions: contract, leasing, merge
and acquisition, joint venture, joint corporation,
ownership change etc. Party A shall not take any actions unless it receives a
written consent from Party B;

(4) Party A agrees to
continue to bear the responsible for the liabilities of the loan even though it
has joint venture, joint corporation or equity merge,
in which Party A has equity interest.

 

11. Breach of agreement

(1) If Party A fails to
payback the principal when the loan agreement at the maturity date, Party B has
the right accrue the interest at the daily rate of 2.1/10000.

(2) If Party A fails to pay
interest, Party B has the right to accrue the interest at the daily rate of
2.1/10000. If Party A pays back the principal amount but fails to the accrued
the interest, Party B has the right to continue to accrue the interest on the
unpaid amount of interest at a daily compound rate of 2.1/10000.

(3) If Party A uses the loan
for the purposes other than stated in the loan agreement, Party B has the right
to charge a penalty for the breached amount at the daily rate of 5/10000.

(4) At any time before the
loan agreement matures, Party B has the right to stop releasing the loan, take
back the loan and interest that were release to Party A, or deduct directly
from Party A’s account if Party A:

(a)
fails to pay back principal or interest;

(b) use
the loan for other purpose;

(c) provide
false information to Party B;

(d) breaches
part of the loan agreement;

(e) is
involved in law suites or litigations that substantially affect Party A’s
business;

 

3

 

(f) deterioration
of Party A’s financial situation;

(g) faces
any of the following situations: depreciation, damage, loss, frozen of the
collateral and fails to provide new collateral;

(h) Any actions by Party A
that affect its ability to payback the loan principal and interest.

 

12.         Settlement of dispute

Both parties shall consult
with each other for any disputes regarding the loan agreement; unresolved
disputes shall be arbitrated by the management of TCL Corporation. During the
period of dispute, the balance of the agreement shall be in full force.

 

13. Others

(1) Any other issues that
are included the loan agreement but pertinent to the agreement, both parties
shall follow the laws, rules and regulations of the government;

(2) The loan agreement shall
be effective once it is properly signed by the legal persons of the two
parties. The agreement will be terminated once all the principal and interest
are fully paid.

(3) This agreement will be
executed in counterpart copies and each and all of which will be deemed an
original.

 

14. Special clause

(1) Party A acknowledges
that Party B fully consulted with Party A for all the provisions in the loan
agreement.

(2) Party A acknowledges
that it has full comprehension of all the provisions of the loan agreement, and
Party B gives all the explanations to Party A for any and all of the questions
that Party A has.

(3) Both parties consent
that they have no disagreement over the provisions of the agreement.

 

 

	
   

  	
  Party A:  Legal person or authorized signer:

  	
  /s/ Steve Davis, CFO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated: July 23, 2004

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Party B: Legal person or authorized signer:

  	
  /s/ Lu Zhongli, Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated: July 23, 2004

  	
   

  
					

 

4

 

Translation of $1.5 million
loan between GoVideo and TCL

 

Control number:

 

Agreement of Internal loans
of TCL Industries Holdings (Hong Kong) Ltd.

 

Debitor (“Party A)”): Go Video

Creditor (“Party B”): TCL
Industries Holdings (Hong Kong) Ltd.

 

Party A, for its business
needs, intends to apply a loan from Party B, which agrees to make such a loan.
The both parties agree to reach the flowing agreements based on mutual consents
and governing laws and regulations:

 

1.               Loan type: 
Short term loan.

 

2.               Loan amount:  One million five hundred thousand US dollars.

 

3.               Purpose of the loan:  To satisfy the needs of the business
expansion of the subsidiaries.

 

4.               Loan terms: 
Six months between 01/25/05 and 07/24/05. If the beginning date of the
loan on any subsequent amendment(s) to renew this loan is different from this
original date, the beginning date on this agreement should used for the purpose
of calculation. Any subsequent extensions of this loan shall be a part to this
agreement and shall have the same binding force.

 

5.               Interest Loan interest rate, calculation of
interest

(1) The monthly interest
rate shall be 0.257%.

(2) Interest shall be
calculated monthly and calculated on every 20th of the month. Daily
interest rate shall be monthly rate divided by 30.

(3) Any adjustment of
interest rate before the maturity of the loan shall be based on the bank
regulation on interest rate.

 

6.               Condition of releasing the loan to debitor

(1) Party A properly
completed the registration process and satisfied all the legal documents for
the loan to be released;

(2) If the loan requires
collateral, all the conditions are satisfied by Party A or the third party.

(3) Party A has not breached
any clause that required by for this loan.

 

7.               Payment of interest and principal

(1) Party A shall pay
interest on the interest calculation day. First payment is the day after the
first calculation day of the month, and last payment shall be made together
with the principal when the loan matures.

(2) Party A agrees to accrue
sufficient amount to pay interest when due, and remit the interest payment to
Party B’s designated bank account.

(3) Party A shall reserve
sufficient amount in its bank account when the loan matures in order to payback
the principal amount of the loan.

(4) If Party A fails to
payback the loan amount when the loan matures, Party B has the right to dispose
the collateral at its discretion or seek legal venue to resolve the issue.

 

1

 

8.               Collateral

The collateral required for
this loan is the number 3 in the following list;

(1)          Guarantee;

(2)          Collateral;

(3)          Collateral with physical assets; (X) (Lotus
equity interest in Correlant)

(4)          Letter of credit;

(5)          Counter guarantee;

(6)          Letter of promissory notes;

(7)          Others 

 

9.               The main rights and liabilities of both
parties

(1) The rights and
liabilities of Party A:

(A) The rights of Party A

(a) Party A has the right to
ask Party B to release the loan;

(b) Party A has the right to
use the loan under the terms of the loan agreement;

(c) Party A has the right to
ask Party B for extension(s) of the loan with the consent of Party B;

(d) Party A has the right to
ask Party B to keep the confidentiality of all the information regarding its
accounting and business operation, except otherwise governed by the laws and
regulations

(B) The liabilities of Party
A

(a) Party A shall pay back
the principal and interest when the loan matures;

(b) Party A shall use the
loan in accordance with the terms of the agreement, and not use the loan for
other purpose without written consent from Party B;

(c) Party A shall provide
Party B with all the information include but not limited accounting,
statistics, business planning and KPI, etc. when requested by Party B.

(d) Without payback the loan
amount, Party A shall not use the loan amount as collateral to secure another
loan;

(e) If Party A will provide
guarantee to other parties before the loan is matured, Party A must notice
Party B and receives consent from Party B;

(f) Party A shall provide
Party B with additional collateral if the value of the collateral used for this
loan is less that the original stated amount as required by the agreement;

(g) Party A must notify
Party B for any changes made to its name, legal person, business registration,
registered capital, etc.

(h) Party A must notice
Party B within 10 days for any of the following that may affect Party B to
exercise its right as a creditor: contract, joint venture, merge, acquisition,
spin-off, apply for close of business, apply for bankruptcy, etc.

(i) Party A shall
immediately notify Party B for any of the following: closedown of business
operation, revoke of business license, revoked of business registration, any
involvement of legal person in illegal activities, becomes a party to legal
action, severe deterioration of financial conditions, and resolve the payment
of the loan and collateral under the conditions of Party B;

(2) Rights and liabilities
of Party B

(A) The rights of Party B

 

2

 

(a) Party B has the rights
to get access to the information regarding Party A’s financial and business
operation, has the right to ask Party A to provide all the information include
but not limited to its planning, accounting and KPI data;

(b) Party B has the right to
audit Party A on the use of the loan.

(B) The liabilities of Party
B

(a) Party B shall release
the loan amount to Party A once the agreement is effective, unless for the
reasons caused by Party A;

(b) Party B agrees to keep
all the information provided by Party A confidential
unless otherwise mandated by laws and regulations.

 

10.         Change and termination of the loan agreement

(1) The agreement may be
revised, amended or terminated with the written agreement by both parties. Any
changes made shall become part of the whole agreement. If any provision of this
agreement is held invalid and void, the balance of the provisions will remain
in full force and effect.

(2) If Party A plans to transfer
its rights and liabilities to the third party, it must get a written consent
from Party B, and transfer will not be valid unless the third party sign the
new loan agreement with Party B;

(3) Party A must give a 30
day notice to Party for any of the following actions: contract, leasing, merge
and acquisition, joint venture, joint corporation,
ownership change etc. Party A shall not take any actions unless it receives a
written consent from Party B;

(4) Party A agrees to
continue to bear the responsible for the liabilities of the loan even though it
has joint venture, joint corporation or equity merge,
in which Party A has equity interest.

 

11. Breach of agreement

(1) If Party A fails to
payback the principal when the loan agreement at the maturity date, Party B has
the right accrue the interest at the daily rate of 2.1/10000.

(2) If Party A fails to pay
interest, Party B has the right to accrue the interest at the daily rate of
2.1/10000. If Party A pays back the principal amount but fails to the accrued the
interest, Party B has the right to continue to accrue the interest on the
unpaid amount of interest at a daily compound rate of 2.1/10000.

(3) If Party A uses the loan
for the purposes other than stated in the loan agreement, Party B has the right
to charge a penalty for the breached amount at the daily rate of 5/10000.

(4) At any time before the
loan agreement matures, Party B has the right to stop releasing the loan, take
back the loan and interest that were release to Party A, or deduct directly
from Party A’s account if Party A:

(a)
fails to pay back principal or interest;

(b) use
the loan for other purpose;

(c) provide
false information to Party B;

(d) breaches
part of the loan agreement;

(e) is
involved in law suites or litigations that substantially affect Party A’s
business;

 

3

 

(f) deterioration
of Party A’s financial situation;

(g) faces
any of the following situations: depreciation, damage, loss, frozen of the
collateral and fails to provide new collateral;

(h) Any actions by Party A
that affect its ability to payback the loan principal and interest.

 

12.         Settlement of dispute

Both parties shall consult
with each other for any disputes regarding the loan agreement; unresolved
disputes shall be arbitrated by the management of TCL Corporation. During the
period of dispute, the balance of the agreement shall be in full force.

 

13. Others

(1) Any other issues that
are included the loan agreement but pertinent to the agreement, both parties
shall follow the laws, rules and regulations of the government;

(2) The loan agreement shall
be effective once it is properly signed by the legal persons of the two
parties. The agreement will be terminated once all the principal and interest
are fully paid.

(3) This agreement will be
executed in counterpart copies and each and all of which will be deemed an
original.

 

14. Special clause

(1) Party A acknowledges
that Party B fully consulted with Party A for all the provisions in the loan
agreement.

(2) Party A acknowledges
that it has full comprehension of all the provisions of the loan agreement, and
Party B gives all the explanations to Party A for any and all of the questions
that Party A has.

(3) Both parties consent
that they have no disagreement over the provisions of the agreement.

 

 

	
   

  	
  Party A:  Legal person or authorized signer:

  	
  /s/ Steve Davis, CFO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated: January 23, 2005

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Party B: Legal person or authorized signer:

  	
  /s/ Yuan Bing,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated: January 31, 2005

  	
   

  
					

 

4Exhibit
10.11

 

EXECUTION COPY

 

Opta
Systems, LLC

 

PROMISSORY
NOTE

 

	
  $4,741,230.00

  	
   

  	
  June
  12, 2003

  

 

FOR
VALUE RECEIVED, Opta Systems, LLC, a Delaware limited liability company (the “Maker”),
promises to pay to the order of ASIA FOCUS INDUSTRIAL
LTD., a Hongkong corporation (the “Holder”),
at its offices at Suit 1102, 11F Chinachern Tsuen Wan Plaza, No.457, Castle
Peak Road, Tsuen Wan, N.T. Hongkong, the principal sure of Four Million Seven
Hundred Forty-one Thousand Two Hundred Thirty Dollars ($4,741,230), together
with all accrued interest thereon (the “Principal Amount”),
upon the terms and conditions specified below.

 

1.             Interest.  Simple
interest shall accrue on the unpaid balance outstanding from time to time under
this Note at the rate of four percent (4%) per annum. Accrued and unpaid
interest shall become due and payable on the due date for the payment of the
Principal Amount of this Note.

 

2.             Due Date.  Subject
to acceleration in accordance with the terms hereof, the Principal Amount of
this Note, together with all accrued and unpaid interest, shall become due and
payable on December 12, 2003.

 

3.             Payment.  Payment
shall be made in lawful tender of the United States and shall be applied first
to the payment of all accrued and unpaid interest and then to the payment of
principal. Prepayment of the Principal Amount of this Note may be made in whole
or in part at any time without penalty.

 

4.             Events of
Default.  The occurrence of any of the following events
shall constitute Events of Default hereunder.

 

(a)           Failure to Pay or Perform.  The failure by Maker to pay
any of the amounts due hereunder as and when due.

 

(b)           Cross-Default.  Maker’s branch of or default under the terms,
covenants, or conditions of any agreement, loan, guaranty or other instrument of
Maker, including without limitation, Maker’s Operating Agreement, as amended.

 

(c)           Judgments.  Maker shall suffer any final judgment for the
payment of money.

 

(d)           Levy by Judgment Creditor.  A judgment creditor of Maker shall obtain
possession of any of the assets of Maker by any means, including but not
limited to levy, distraint, replevin or self-help.

 

 

(e)           Failure to Pay Debts. 
Maker shall fail to pay any debt, in any material amount, due any third
person and such failure shall continue beyond any applicable grace period.

 

(f)            Involuntary Insolvency
Proceedings.  The institution of
involuntary Insolvency Proceedings against Maker and the failure of any such
Insolvency Proceedings to be dismissed within thirty (30) days of the
institution thereof.  For purposes
hereof, “Insolvency Proceedings” means any case seeking the liquidation or
reorganization of Maker under the United States Bankruptcy Code or any similar
proceeding under applicable law or any case or proceeding seeking the
appointment of a receiver, liquidator, sequestrator, custodian, trustees or
other officer having similar powers of the Maker to take possession of all or a
substantial portion of the business of the Maker, or any of the following
events occur: (i) the Maker consents to, approves or otherwise authorizes the
institution of an Insolvency Proceeding, (ii) the petition commencing the
Insolvency Proceeding is not timely controverted or (iii) the petition
commencing the case remains undismissed and unstayed for a period of 30 days
(in the case of an involuntary liquidiation proceeding).

 

(g)           Voluntary Insolvency Proceedings. The commencement by Maker
of Insolvency Proceedings.

 

(h)           Dissolution.  The
dissolution of Maker

 

(i)            Injunction. If Maker is enjoined, restrained or in any
way prevented by court order from continuing to conduct all or any material
part of its business affairs.

 

(j)            Material Adverse Change. 
Maker suffers a material adverse change, as determined by the Lender in
good faith, in the financial condition of Maker.

 

5.             Waivers.

 

(a)           A Waiver of any term of this Note
must be made in writing and signed by a duly-authorized officer of the Holder
and any such waiver shall be limited to its express terms.

 

(b)           No delay by the Holder in acting with
respect to the terms of this Note shall constitute a waiver of any breach,
default, or failure of a condition under this Note.

 

(c)           The Maker waives presentment, demand,
notice of dishonor, notice of default or delinquency, notice of acceleration,
notice of protest and nonpayment, notice of costs, expenses or losses and
interest thereon, notice of interest on interest and diligence in taking any
action to collect any sums owing under this Note or in proceeding against any
of the rights or interests in or to properties securing payment of this Note.

 

2

 

IN WITNESS WHEREOF, Maker
has caused this Note to be executed and delivered by its duly authorized
officer, as of the day and year and at the place first above written.

 

 

	
   

  	
  MAKER

  
	
   

  	
   

  
	
   

  	
  Opta Systems, LLC/DRA Go-Video

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By(Signature):

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  YIMIN FOO

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Holder

  
	
   

  	
   

  
	
   

  	
  Asia Focus Industrial Ltd.

  
	
   

  	
   

  
	
   

  	
  By(Signature):

  	
  /s/  Yuan Bing

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Yuan Bing

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

3

 

Translation
of $4.7 million loan between GoVideo and Asia Focus

 

Control
number:

 

Agreement
of Internal loans between

 

Debitor (“Party
A)”): Go Video

Creditor
(“Party B”): Asia Focus Industrial Ltd.

 

Party A,
for its business needs, intends to apply a loan from Party B, which agrees to
make such a loan. The both parties agree to reach the flowing agreements based
on mutual consents and governing laws and regulations:

 

1.     Loan type: 
Short term loan.

 

2.     Loan amount:  Four million seven hundred thousand US
dollars.

 

3.     Purpose of the loan:  To satisfy the needs of the business
expansion of the subsidiaries.

 

4.     Loan terms: 
Six months between 2/12/04 and 08/11/04. If the beginning date of the
loan on any subsequent amendment(s) to renew this loan is different from this
original date, the beginning date on this agreement should used for the purpose
of calculation. Any subsequent extensions of this loan shall be a part to this
agreement and shall have the same binding force.

 

5.     Interest Loan interest rate, calculation of
interest

(1) The
monthly interest rate shall be 0.257%.

(2)
Interest shall be calculated monthly and calculated on every 20th of
the month. Daily interest rate shall be monthly rate divided by 30.

(3) Any
adjustment of interest rate before the maturity of the loan shall be based on
the bank regulation on interest rate.

 

6.     Condition of releasing the loan to debitor

(1) Party
A properly completed the registration process and satisfied all the legal
documents for the loan to be released;

(2) If the
loan requires collateral, all the conditions are satisfied by Party A or the
third party.

(3) Party
A has not breached any clause that required by for this loan.

 

7.     Payment of interest and principal

(1) Party
A shall pay interest on the interest calculation day. First payment is the day
after the first calculation day of the month, and last payment shall be made
together with the principal when the loan matures.

(2) Party
A agrees to accrue sufficient amount to pay interest when due, and remit the interest
payment to Party B’s designated bank account.

(3) Party
A shall reserve sufficient amount in its bank account when the loan matures in
order to payback the principal amount of the loan.

(4) If
Party A fails to payback the loan amount when the loan matures, Party B has the
right to dispose the collateral at its discretion or seek legal venue to
resolve the issue.

 

4

 

8.     Collateral

The
collateral required for this loan is the number 3 in the following list;

(1)          Guarantee;

(2)          Collateral;

(3)          Collateral with physical assets; (X) (Lotus equity
interest in Correlant Communications.)

(4)          Letter of credit;

(5)          Counter guarantee;

(6)          Letter of promissory notes;

(7)          Others 

 

9.     The main rights and liabilities of both
parties

(1) The
rights and liabilities of Party A:

(A) The
rights of Party A

(a) Party
A has the right to ask Party B to release the loan;

(b) Party
A has the right to use the loan under the terms of the loan agreement;

(c) Party
A has the right to ask Party B for extension(s) of the loan with the consent of
Party B;

(d) Party
A has the right to ask Party B to keep the confidentiality of all the
information regarding its accounting and business operation, except otherwise
governed by the laws and regulations

(B) The
liabilities of Party A

(a) Party
A shall pay back the principal and interest when the loan matures;

(b) Party
A shall use the loan in accordance with the terms of the agreement, and not use
the loan for other purpose without written consent from Party B;

(c) Party
A shall provide Party B with all the information include but not limited
accounting, statistics, business planning and KPI, etc. when requested by Party
B.

(d)
Without payback the loan amount, Party A shall not use the loan amount as
collateral to secure another loan;

(e) If
Party A will provide guarantee to other parties before the loan is matured,
Party A must notice Party B and receives consent from Party B;

(f) Party
A shall provide Party B with additional collateral if the value of the
collateral used for this loan is less that the original stated amount as
required by the agreement;

(g) Party
A must notify Party B for any changes made to its name, legal person, business
registration, registered capital, etc.

(h) Party
A must notice Party B within 10 days for any of the following that may affect
Party B to exercise its right as a creditor: contract, joint venture, merge,
acquisition, spin-off, apply for close of business, apply for bankruptcy, etc.

(i) Party
A shall immediately notify Party B for any of the following: closedown of
business operation, revoke of business license, revoked of business
registration, any involvement of legal person in illegal activities, becomes a
party to legal action, severe deterioration of financial conditions, and
resolve the payment of the loan and collateral under the conditions of Party B;

(2) Rights
and liabilities of Party B

(A) The
rights of Party B

 

5

 

(a) Party
B has the rights to get access to the information regarding Party A’s financial
and business operation, has the right to ask Party A to provide all the
information include but not limited to its planning, accounting and KPI data;

(b) Party
B has the right to audit Party A on the use of the loan.

(B) The
liabilities of Party B

(a) Party
B shall release the loan amount to Party A once the agreement is effective,
unless for the reasons caused by Party A;

(b) Party
B agrees to keep all the information provided by Party A confidential unless otherwise
mandated by laws and regulations.

 

10.      Change and termination of the loan
agreement

(1) The
agreement may be revised, amended or terminated with the written agreement by
both parties. Any changes made shall become part of the whole agreement. If any
provision of this agreement is held invalid and void, the balance of the
provisions will remain in full force and effect.

(2) If
Party A plans to transfer its rights and liabilities to the third party, it
must get a written consent from Party B, and transfer will not be valid unless
the third party sign the new loan agreement with Party B;

(3) Party
A must give a 30 day notice to Party for any of the following actions:
contract, leasing, merge and acquisition, joint venture, joint corporation,
ownership change etc. Party A shall not take any actions unless it receives a
written consent from Party B;

(4) Party
A agrees to continue to bear the responsible for the liabilities of the loan
even though it has joint venture, joint corporation or equity merge, in which
Party A has equity interest.

 

11.
Breach of agreement

(1) If
Party A fails to payback the principal when the loan agreement at the maturity
date, Party B has the right accrue the interest at the daily rate of 2.1/10000.

(2) If
Party A fails to pay interest, Party B has the right to accrue the interest at
the daily rate of 2.1/10000. If Party A pays back the principal amount but
fails to the accrued the interest, Party B has the right to continue to accrue
the interest on the unpaid amount of interest at a daily compound rate of
2.1/10000.

(3) If
Party A uses the loan for the purposes other than stated in the loan agreement,
Party B has the right to charge a penalty for the breached amount at the daily
rate of 5/10000.

(4) At any
time before the loan agreement matures, Party B has the right to stop releasing
the loan, take back the loan and interest that were release to Party A, or
deduct directly from Party A’s account if Party A:

(a) fails
to pay back principal or interest;

(b) use
the loan for other purpose;

(c)
provide false information to Party B;

(d)
breaches part of the loan agreement;

(e) is
involved in law suites or litigations that substantially affect Party A’s
business;

 

6

 

(f)
deterioration of Party A’s financial situation;

(g) faces
any of the following situations: depreciation, damage, loss, frozen of the
collateral and fails to provide new collateral;

(h) Any
actions by Party A that affect its ability to payback the loan principal and
interest.

 

12. Settlement
of dispute

Both
parties shall consult with each other for any disputes regarding the loan
agreement; unresolved disputes shall be arbitrated by the management of TCL
Corporation. During the period of dispute, the balance of the agreement shall
be in full force.

 

13.
Others

(1) Any
other issues that are included the loan agreement but pertinent to the
agreement, both parties shall follow the laws, rules and regulations of the
government;

(2) The
loan agreement shall be effective once it is properly signed by the legal
persons of the two parties. The agreement will be terminated once all the
principal and interest are fully paid.

(3) This
agreement will be executed in counterpart copies and each and all of which will
be deemed an original.

 

14.
Special clause

(1) Party
A acknowledges that Party B fully consulted with Party A for all the provisions
in the loan agreement.

(2) Party
A acknowledges that it has full comprehension of all the provisions of the loan
agreement, and Party B gives all the explanations to Party A for any and all of
the questions that Party A has.

(3) Both
parties consent that they have no disagreement over the provisions of the
agreement.

 

 

	
   

  	
  Party
  A:  Legal person or authorized signer:

  	
  /s/
  Vincent Yan, Chairman

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated:
  February 11, 2004

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Party
  B: Legal person or authorized signer:

  	
  /s/ Lu
  Zhongli, Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated:
  February 11, 2004

  	
   

  
					

 

7

 

Translation
of $4.7 million loan between GoVideo and Asia Focus

 

Control
number:

 

Agreement
of Internal loans between

 

Debitor (“Party
A)”): Go Video

Creditor
(“Party B”): Asia Focus Industrial Ltd.

 

Party A,
for its business needs, intends to apply a loan from Party B, which agrees to
make such a loan. The both parties agree to reach the flowing agreements based
on mutual consents and governing laws and regulations:

 

1.     Loan type: 
Short term loan.

 

2.     Loan amount:  Four million seven hundred thousand US
dollars.

 

3.     Purpose of the loan:  To satisfy the needs of the business
expansion of the subsidiaries.

 

4.     Loan terms: 
Six months between 08/12/04 and 02/11/05. If the beginning date of the
loan on any subsequent amendment(s) to renew this loan is different from this
original date, the beginning date on this agreement should used for the purpose
of calculation. Any subsequent extensions of this loan shall be a part to this
agreement and shall have the same binding force.

 

5.     Interest Loan interest rate, calculation of
interest

(1) The
monthly interest rate shall be 0.257%.

(2)
Interest shall be calculated monthly and calculated on every 20th of
the month. Daily interest rate shall be monthly rate divided by 30.

(3) Any
adjustment of interest rate before the maturity of the loan shall be based on
the bank regulation on interest rate.

 

6.     Condition of releasing the loan to debitor

(1) Party
A properly completed the registration process and satisfied all the legal
documents for the loan to be released;

(2) If the
loan requires collateral, all the conditions are satisfied by Party A or the
third party.

(3) Party
A has not breached any clause that required by for this loan.

 

7.     Payment of interest and principal

(1) Party
A shall pay interest on the interest calculation day. First payment is the day
after the first calculation day of the month, and last payment shall be made
together with the principal when the loan matures.

(2) Party
A agrees to accrue sufficient amount to pay interest when due, and remit the
interest payment to Party B’s designated bank account.

(3) Party
A shall reserve sufficient amount in its bank account when the loan matures in
order to payback the principal amount of the loan.

(4) If
Party A fails to payback the loan amount when the loan matures, Party B has the
right to dispose the collateral at its discretion or seek legal venue to
resolve the issue.

 

8

 

8.     Collateral

The
collateral required for this loan is the number 3 in the following list;

(1)          Guarantee;

(2)          Collateral;

(3)          Collateral with physical assets; (X) (Lotus equity
interest in Correlant Communications.)

(4)          Letter of credit;

(5)          Counter guarantee;

(6)          Letter of promissory notes;

(7)          Others 

 

9.     The main rights and liabilities of both
parties

(1) The
rights and liabilities of Party A:

(A) The
rights of Party A

(a) Party
A has the right to ask Party B to release the loan;

(b) Party
A has the right to use the loan under the terms of the loan agreement;

(c) Party
A has the right to ask Party B for extension(s) of the loan with the consent of
Party B;

(d) Party
A has the right to ask Party B to keep the confidentiality of all the
information regarding its accounting and business operation, except otherwise
governed by the laws and regulations

(B) The
liabilities of Party A

(a) Party
A shall pay back the principal and interest when the loan matures;

(b) Party
A shall use the loan in accordance with the terms of the agreement, and not use
the loan for other purpose without written consent from Party B;

(c) Party
A shall provide Party B with all the information include but not limited
accounting, statistics, business planning and KPI, etc. when requested by Party
B.

(d)
Without payback the loan amount, Party A shall not use the loan amount as
collateral to secure another loan;

(e) If
Party A will provide guarantee to other parties before the loan is matured,
Party A must notice Party B and receives consent from Party B;

(f) Party
A shall provide Party B with additional collateral if the value of the
collateral used for this loan is less that the original stated amount as
required by the agreement;

(g) Party
A must notify Party B for any changes made to its name, legal person, business
registration, registered capital, etc.

(h) Party
A must notice Party B within 10 days for any of the following that may affect
Party B to exercise its right as a creditor: contract, joint venture, merge,
acquisition, spin-off, apply for close of business, apply for bankruptcy, etc.

(i) Party
A shall immediately notify Party B for any of the following: closedown of
business operation, revoke of business license, revoked of business
registration, any involvement of legal person in illegal activities, becomes a
party to legal action, severe deterioration of financial conditions, and
resolve the payment of the loan and collateral under the conditions of Party B;

(2) Rights
and liabilities of Party B

(A) The
rights of Party B

 

9

 

(a) Party
B has the rights to get access to the information regarding Party A’s financial
and business operation, has the right to ask Party A to provide all the
information include but not limited to its planning, accounting and KPI data;

(b) Party
B has the right to audit Party A on the use of the loan.

(B) The
liabilities of Party B

(a) Party
B shall release the loan amount to Party A once the agreement is effective,
unless for the reasons caused by Party A;

(b) Party
B agrees to keep all the information provided by Party A confidential unless
otherwise mandated by laws and regulations.

 

10.      Change and termination of the loan
agreement

(1) The
agreement may be revised, amended or terminated with the written agreement by
both parties. Any changes made shall become part of the whole agreement. If any
provision of this agreement is held invalid and void, the balance of the
provisions will remain in full force and effect.

(2) If
Party A plans to transfer its rights and liabilities to the third party, it
must get a written consent from Party B, and transfer will not be valid unless
the third party sign the new loan agreement with Party B;

(3) Party
A must give a 30 day notice to Party for any of the following actions:
contract, leasing, merge and acquisition, joint venture, joint corporation,
ownership change etc. Party A shall not take any actions unless it receives a
written consent from Party B;

(4) Party
A agrees to continue to bear the responsible for the liabilities of the loan
even though it has joint venture, joint corporation or equity merge, in which
Party A has equity interest.

 

11.
Breach of agreement

(1) If
Party A fails to payback the principal when the loan agreement at the maturity
date, Party B has the right accrue the interest at the daily rate of 2.1/10000.

(2) If
Party A fails to pay interest, Party B has the right to accrue the interest at
the daily rate of 2.1/10000. If Party A pays back the principal amount but
fails to the accrued the interest, Party B has the right to continue to accrue
the interest on the unpaid amount of interest at a daily compound rate of
2.1/10000.

(3) If
Party A uses the loan for the purposes other than stated in the loan agreement,
Party B has the right to charge a penalty for the breached amount at the daily
rate of 5/10000.

(4) At any
time before the loan agreement matures, Party B has the right to stop releasing
the loan, take back the loan and interest that were release to Party A, or
deduct directly from Party A’s account if Party A:

(a) fails
to pay back principal or interest;

(b) use
the loan for other purpose;

(c)
provide false information to Party B;

(d)
breaches part of the loan agreement;

(e) is
involved in law suites or litigations that substantially affect Party A’s
business;

 

10

 

(f)
deterioration of Party A’s financial situation;

(g) faces
any of the following situations: depreciation, damage, loss, frozen of the
collateral and fails to provide new collateral;

(h) Any
actions by Party A that affect its ability to payback the loan principal and
interest.

 

12. Settlement
of dispute

Both
parties shall consult with each other for any disputes regarding the loan
agreement; unresolved disputes shall be arbitrated by the management of TCL
Corporation. During the period of dispute, the balance of the agreement shall
be in full force.

 

13.
Others

(1) Any
other issues that are included the loan agreement but pertinent to the
agreement, both parties shall follow the laws, rules and regulations of the
government;

(2) The
loan agreement shall be effective once it is properly signed by the legal
persons of the two parties. The agreement will be terminated once all the
principal and interest are fully paid.

(3) This
agreement will be executed in counterpart copies and each and all of which will
be deemed an original.

 

14.
Special clause

(1) Party
A acknowledges that Party B fully consulted with Party A for all the provisions
in the loan agreement.

(2) Party
A acknowledges that it has full comprehension of all the provisions of the loan
agreement, and Party B gives all the explanations to Party A for any and all of
the questions that Party A has.

(3) Both
parties consent that they have no disagreement over the provisions of the
agreement.

 

 

	
   

  	
  Party
  A:  Legal person or authorized signer:

  	
  /s/
  Steve Davis, CFO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated:
  July 23, 2004

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Party
  B: Legal person or authorized signer:

  	
  /s/
  Yuan Bing, Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Dated:
  July 23, 2004

  	
   

  
					

 

11

 

Translation
of $4.7 million loan between GoVideo and Asia Focus

 

Control
number:

 

Agreement
of Internal loans between

 

Debitor (“Party
A)”): Go Video

Creditor
(“Party B”): Asia Focus Industrial Ltd.

 

Party A,
for its business needs, intends to apply a loan from Party B, which agrees to
make such a loan. The both parties agree to reach the flowing agreements based
on mutual consents and governing laws and regulations:

 

1.     Loan type: 
Short term loan.

 

2.     Loan amount:  Four million seven hundred thousand US
dollars.

 

3.     Purpose of the loan:  To satisfy the needs of the business
expansion of the subsidiaries.

 

4.     Loan terms: 
Six months between 2/12/05 and 08/11/05. If the beginning date of the
loan on any subsequent amendment(s) to renew this loan is different from this
original date, the beginning date on this agreement should used for the purpose
of calculation. Any subsequent extensions of this loan shall be a part to this
agreement and shall have the same binding force.

 

5.     Interest Loan interest rate, calculation of
interest

(1) The
monthly interest rate shall be 0.257%.

(2)
Interest shall be calculated monthly and calculated on every 20th of
the month. Daily interest rate shall be monthly rate divided by 30.

(3) Any
adjustment of interest rate before the maturity of the loan shall be based on
the bank regulation on interest rate.

 

6.     Condition of releasing the loan to debitor

(1) Party
A properly completed the registration process and satisfied all the legal
documents for the loan to be released;

(2) If the
loan requires collateral, all the conditions are satisfied by Party A or the
third party.

(3) Party
A has not breached any clause that required by for this loan.

 

7.     Payment of interest and principal

(1) Party
A shall pay interest on the interest calculation day. First payment is the day
after the first calculation day of the month, and last payment shall be made
together with the principal when the loan matures.

(2) Party
A agrees to accrue sufficient amount to pay interest when due, and remit the
interest payment to Party B’s designated bank account.

(3) Party
A shall reserve sufficient amount in its bank account when the loan matures in
order to payback the principal amount of the loan.

(4) If
Party A fails to payback the loan amount when the loan matures, Party B has the
right to dispose the collateral at its discretion or seek legal venue to
resolve the issue.

 

1

 

8.     Collateral

The
collateral required for this loan is the number 3 in the following list;

(1)          Guarantee;

(2)          Collateral;

(3)          Collateral with physical assets; (X) (Lotus equity
interest in Correlant Communications.)

(4)          Letter of credit;

(5)          Counter guarantee;

(6)          Letter of promissory notes;

(7)          Others 

 

9.     The main rights and liabilities of both
parties

(1) The
rights and liabilities of Party A:

(A) The
rights of Party A

(a) Party
A has the right to ask Party B to release the loan;

(b) Party
A has the right to use the loan under the terms of the loan agreement;

(c) Party
A has the right to ask Party B for extension(s) of the loan with the consent of
Party B;

(d) Party
A has the right to ask Party B to keep the confidentiality of all the information
regarding its accounting and business operation, except otherwise governed by
the laws and regulations

(B) The
liabilities of Party A

(a) Party
A shall pay back the principal and interest when the loan matures;

(b) Party
A shall use the loan in accordance with the terms of the agreement, and not use
the loan for other purpose without written consent from Party B;

(c) Party
A shall provide Party B with all the information include but not limited
accounting, statistics, business planning and KPI, etc. when requested by Party
B.

(d)
Without payback the loan amount, Party A shall not use the loan amount as
collateral to secure another loan;

(e) If
Party A will provide guarantee to other parties before the loan is matured,
Party A must notice Party B and receives consent from Party B;

(f) Party
A shall provide Party B with additional collateral if the value of the
collateral used for this loan is less that the original stated amount as
required by the agreement;

(g) Party
A must notify Party B for any changes made to its name, legal person, business
registration, registered capital, etc.

(h) Party
A must notice Party B within 10 days for any of the following that may affect
Party B to exercise its right as a creditor: contract, joint venture, merge,
acquisition, spin-off, apply for close of business, apply for bankruptcy, etc.

(i) Party
A shall immediately notify Party B for any of the following: closedown of
business operation, revoke of business license, revoked of business
registration, any involvement of legal person in illegal activities, becomes a
party to legal action, severe deterioration of financial conditions, and
resolve the payment of the loan and collateral under the conditions of Party B;

(2) Rights
and liabilities of Party B

(A) The
rights of Party B

 

2

 

(a) Party
B has the rights to get access to the information regarding Party A’s financial
and business operation, has the right to ask Party A to provide all the
information include but not limited to its planning, accounting and KPI data;

(b) Party
B has the right to audit Party A on the use of the loan.

(B) The
liabilities of Party B

(a) Party
B shall release the loan amount to Party A once the agreement is effective,
unless for the reasons caused by Party A;

(b) Party
B agrees to keep all the information provided by Party A confidential unless
otherwise mandated by laws and regulations.

 

10.      Change and termination of the loan
agreement

(1) The
agreement may be revised, amended or terminated with the written agreement by
both parties. Any changes made shall become part of the whole agreement. If any
provision of this agreement is held invalid and void, the balance of the
provisions will remain in full force and effect.

(2) If
Party A plans to transfer its rights and liabilities to the third party, it
must get a written consent from Party B, and transfer will not be valid unless
the third party sign the new loan agreement with Party B;

(3) Party
A must give a 30 day notice to Party for any of the following actions:
contract, leasing, merge and acquisition, joint venture, joint corporation,
ownership change etc. Party A shall not take any actions unless it receives a
written consent from Party B;

(4) Party
A agrees to continue to bear the responsible for the liabilities of the loan
even though it has joint venture, joint corporation or equity merge, in which
Party A has equity interest.

 

11.
Breach of agreement

(1) If
Party A fails to payback the principal when the loan agreement at the maturity
date, Party B has the right accrue the interest at the daily rate of 2.1/10000.

(2) If
Party A fails to pay interest, Party B has the right to accrue the interest at
the daily rate of 2.1/10000. If Party A pays back the principal amount but
fails to the accrued the interest, Party B has the right to continue to accrue
the interest on the unpaid amount of interest at a daily compound rate of
2.1/10000.

(3) If
Party A uses the loan for the purposes other than stated in the loan agreement,
Party B has the right to charge a penalty for the breached amount at the daily
rate of 5/10000.

(4) At any
time before the loan agreement matures, Party B has the right to stop releasing
the loan, take back the loan and interest that were release to Party A, or
deduct directly from Party A’s account if Party A:

(a) fails
to pay back principal or interest;

(b) use
the loan for other purpose;

(c)
provide false information to Party B;

(d)
breaches part of the loan agreement;

(e) is
involved in law suites or litigations that substantially affect Party A’s
business;

 

3

 

(f)
deterioration of Party A’s financial situation;

(g) faces
any of the following situations: depreciation, damage, loss, frozen of the
collateral and fails to provide new collateral;

(h) Any
actions by Party A that affect its ability to payback the loan principal and
interest.

 

12. Settlement
of dispute

Both
parties shall consult with each other for any disputes regarding the loan
agreement; unresolved disputes shall be arbitrated by the management of TCL
Corporation. During the period of dispute, the balance of the agreement shall
be in full force.

 

13.
Others

(1) Any
other issues that are included the loan agreement but pertinent to the
agreement, both parties shall follow the laws, rules and regulations of the
government;

(2) The
loan agreement shall be effective once it is properly signed by the legal
persons of the two parties. The agreement will be terminated once all the
principal and interest are fully paid.

(3) This
agreement will be executed in counterpart copies and each and all of which will
be deemed an original.

 

14.
Special clause

(1) Party
A acknowledges that Party B fully consulted with Party A for all the provisions
in the loan agreement.

(2) Party
A acknowledges that it has full comprehension of all the provisions of the loan
agreement, and Party B gives all the explanations to Party A for any and all of
the questions that Party A has.

(3) Both
parties consent that they have no disagreement over the provisions of the
agreement.

 

 

	
   

  	
  Party
  A:  Legal person or authorized signer:

  	
  /s/
  Steve Davis, CFO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated:
  January 23, 2005

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Party
  B: Legal person or authorized signer:

  	
  /s/ Yuan
  Bing

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated:
  January 31, 2005

  	
   

  
					

 

4

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