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    PANSOFT
COMPANY LIMITED

    CODE
OF BUSINESS CONDUCT AND ETHICS

    Adopted
by the Board of Directors on December 13 2008

    

     

    I.
INTRODUCTION

    

    This Code
of Business Conduct and Ethics of Pansoft Company Limited (the “Company”) helps
ensure compliance with legal requirements and our standards of business conduct.
All Company employees are expected to read and understand this Code of Business
Conduct and Ethics, uphold these standards in day-to-day activities, comply with
all applicable policies and procedures, and ensure that all agents and
contractors are aware of, understand and adhere to these standards. References
in this code to employees are intended to cover officers and, as applicable,
members of the Board of Directors.

    

    Because
the principles described in this Code of Business Conduct and Ethics are general
in nature, you should also review all applicable Company policies and procedures
for more specific instruction, and contact the Human Resources Department or the
Legal Department if you have any questions.

    

    Nothing
in this Code of Business Conduct and Ethics, in any company policies and
procedures, or in other related communications (verbal or written) creates or
implies an employment contract or term of employment.

    

    We are
committed to continuously reviewing and updating our policies and procedures.
Therefore, this Code of Business Conduct and Ethics is subject to modification.
This Code of Business Conduct and Ethics supersedes all other such codes,
policies, procedures, instructions, practices, rules or written or verbal
representations to the extent they are inconsistent.

    

    II.
COMPLIANCE IS EVERYONE'S BUSINESS

    

    Ethical
business conduct is critical to our business. As an employee, your
responsibility is to respect and adhere to these practices. Many of these
practices reflect legal or regulatory requirements. Violations of these laws and
regulations can create significant liability for you, the Company, its
directors, officers, and other employees.

    

    Part of
your job and ethical responsibility is to help enforce this Code of Business
Conduct and Ethics. You should be alert to possible violations and report
possible violations to the Human Resources Department or the Legal Department.
You must cooperate in any internal or external investigations of possible
violations. Reprisal, threats, retribution or retaliation against any person who
has in good faith reported a violation or a suspected violation of law, this
Code of Business Conduct or other Company policies, or against any person who is
assisting in any investigation or process with respect to such a violation, is
prohibited.

    

    Violations
of law, this Code of Business Conduct and Ethics, or other Company policies or
procedures should be reported to the Human Resources Department or the Legal
Department.  Violations of law, this Code of Business Conduct and
Ethics or other Company policies or procedures by Company employees can lead to
disciplinary action up to and including termination.

    

    In trying
to determine whether any given action is appropriate, use the following test.
Imagine that the words you are using or the action you are taking is going to be
fully disclosed in the media with all the details, including your photo. If you
are uncomfortable with the idea of this information being made public, perhaps
you should think again about your words or your course of action.

    

    In all
cases, if you are unsure about the appropriateness of an event or action, please
seek assistance in interpreting the requirements of these practices by
contacting the Legal Department.

    

    III.
YOUR RESPONSIBILITIES TO THE COMPANY AND ITS STOCKHOLDERS

    

    A.
General Standards of Conduct

    

    The
Company expects all employees, agents and contractors to exercise good judgment
to ensure the safety and welfare of employees, agents and contractors and to
maintain a cooperative, efficient, positive, harmonious and productive work
environment and business organization. These standards apply while working on
our premises, at offsite locations where our business is being conducted, at
Company-sponsored business and social events, or at any other place where you
are a representative of the Company. Employees, agents or contractors who engage
in misconduct or whose performance is unsatisfactory may be subject to
corrective action, up to and including termination. You should review our
employment handbook for more detailed information.

     

     

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    B.
Applicable Laws

    

    All
Company employees, agents and contractors must comply with all applicable laws,
regulations, rules and regulatory orders. Company employees located outside of
the United States or doing business outside of the United States must comply
with laws, regulations, rules and regulatory orders of the United States,
including the Foreign Corrupt Practices Act and the U.S. Export Control Act, in
addition to applicable local laws. Each employee, agent and contractor must
acquire appropriate knowledge of the requirements relating to his or her duties
sufficient to enable him or her to recognize potential dangers and to know when
to seek advice from the Legal Department on specific Company policies and
procedures. Violations of laws, regulations, rules and orders may subject the
employee, agent or contractor to individual criminal or civil liability, as well
as to discipline by the Company. Such individual violations may also subject the
Company to civil or criminal liability or the loss of business.

    

    C.
Conflicts of Interest

    

    Each of
us has a responsibility to the Company, our stockholders and each other.
Although this duty does not prevent us from engaging in personal transactions
and investments, it does demand that we avoid situations where a conflict of
interest might occur or appear to occur. The Company is subject to scrutiny from
many different individuals and organizations. We should always strive to avoid
even the appearance of impropriety.

    

    What
constitutes conflict of interest? A conflict of interest exists where the
interests or benefits of one person or entity conflict with the interests or
benefits of the Company. Examples include:

    

    (i) Employment/Outside Employment.
In consideration of your employment with the Company, you are expected to devote
your full attention to the business interests of the Company. You are prohibited
from engaging in any activity that interferes with your performance or
responsibilities to the Company or is otherwise in conflict with or prejudicial
to the Company. Our policies prohibit any employee from accepting simultaneous
employment with a Company supplier, customer, developer or competitor, or from
taking part in any activity that enhances or supports a competitor's position.
Additionally, you must disclose to the Company any interest that you have that
may conflict with the business of the Company. If you have any questions on this
requirement, you should contact your supervisor or the Human Resources
Department.

    

    (ii)
Outside Directorships.
It is a conflict of interest to serve as a director of any company that competes
with the Company. Although you may serve as a director of a Company supplier,
customer, developer, or other business partner, our policy requires that you
first obtain approval from the Company's General Counsel before accepting a
directorship. Any compensation you receive should be commensurate to your
responsibilities. Such approval may be conditioned upon the completion of
specified actions.

    

    (iii)
Business Interests. If
you are considering investing in a Company customer, supplier, developer or
competitor, you must first take great care to ensure that these investments do
not compromise your responsibilities to the Company. Many factors should be
considered in determining whether a conflict exists, including the size and
nature of the investment; your ability to influence the Company’s decisions;
your access to confidential information of the Company or of the other company;
and the nature of the relationship between the Company and the other
company.

    

    (iv)
Related Parties. As a
general rule, you should avoid conducting Company business with a relative or
significant other, or with a business in which a relative or significant other
is associated in any significant role. Relatives include spouse, sister,
brother, daughter, son, mother, father, grandparents, aunts, uncles, nieces,
nephews, cousins, step relationships, and in-laws. Significant others include
persons living in a spousal (including same sex) or familial fashion with an
employee.

    

    If such a
related party transaction is unavoidable, you must fully disclose the nature of
the related party transaction to the Company's Chief Financial Officer. If
determined to be material to the Company by the Chief Financial Officer, the
Company's Audit Committee must review and approve in writing in advance such
related party transactions. The most significant related party transactions,
particularly those involving the Company's directors or executive officers, must
be reviewed and approved in writing in advance by the Company's Board of
Directors. The Company must report all such material related party transactions
under applicable accounting rules, Federal securities laws, SEC rules and
regulations, and securities market rules. Any dealings with a related party must
be conducted in such a way that no preferential treatment is given to this
business.

    

    The
Company discourages the employment of relatives and significant others in
positions or assignments within the same department and prohibits the employment
of such individuals in positions that have a financial dependence or influence
(e.g., an auditing or control relationship, or a supervisor/subordinate
relationship). The purpose of this policy is to prevent the organizational
impairment and conflicts that are a likely outcome of the employment of
relatives or significant others, especially in a supervisor/subordinate
relationship. If a question arises about whether a relationship is covered by
this policy, the Human Resources Department is responsible for determining
whether an applicant's or transferee's acknowledged relationship is covered by
this policy. The Human Resources Department shall advise all affected applicants
and transferees of this policy. Willful withholding of information regarding a
prohibited relationship/reporting arrangement may be subject to corrective
action, up to and including termination. If a prohibited relationship exists or
develops between two employees, the employee in the senior position must bring
this to the attention of his/her supervisor. The Company retains the prerogative
to separate the individuals at the earliest possible time, either by
reassignment or by termination, if necessary.

    

    (v) Other Situations. Because
other conflicts of interest may arise, it would be impractical to attempt to
list all possible situations. If a proposed transaction or situation raises any
questions or doubts in your mind you should consult the Legal
Department.

    
       

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    D.
Corporate Opportunities

    

    Employees,
officers and directors may not exploit for their own personal gain opportunities
that are discovered through the use of corporate property, information or
position unless the opportunity is disclosed fully in writing to the Company’s
Board of Directors and the Board of Directors declines to pursue such
opportunity.

    

    E. Protecting the Company's Confidential
Information

    

    The
Company's confidential information is a valuable asset. The Company’s
confidential information includes product architectures; source codes; product
plans and road maps; names and lists of customers, dealers, and employees; and
financial information. This information is the property of the Company and may
be protected by patent, trademark, copyright and trade secret laws. All
confidential information must be used for Company business purposes only. Every
employee, agent and contractor must safeguard it.  THIS RESPONSIBILITY INCLUDES NOT
DISCLOSING THE COMPANY CONFIDENTIAL INFORMATION SUCH AS INFORMATION REGARDING
THE COMPANY'S PRODUCTS OR BUSINESS OVER THE INTERNET.  You are
also responsible for properly labeling any and all documentation shared
with or correspondence sent to the Company's Legal Department or outside
counsel as
"Attorney-Client Privileged". This responsibility includes the safeguarding,
securing and proper disposal of confidential
information in accordance with the Company's policy on Maintaining and Managing Records set
forth in Section III.I of this Code of Business Conduct and Ethics. This
obligation extends
to confidential information of third parties, which the Company has rightfully
received under Non-Disclosure
Agreements. See the Company's policy dealing with Handling Confidential
Information of
Others set forth in Section IV.D of this Code of Business Conduct and
Ethics.

    

    (i) Proprietary Information and Invention
Agreement. When you joined the Company, you signed an agreement to
protect and hold confidential the Company's proprietary information. This
agreement remains in effect for as long as you work for the Company and after
you leave the Company. Under this agreement, you may not disclose the Company's
confidential information to anyone or use it to benefit anyone other than the
Company without the prior written consent of an authorized Company
officer.

    

    (ii)
Disclosure of Company
Confidential Information. To further the Company's business, from time to
time our confidential information may be disclosed to potential business
partners. However, such disclosure should never be done without carefully
considering its potential benefits and risks. If you determine in consultation
with your manager and other appropriate Company management that disclosure of
confidential information is necessary, you must then contact the Legal
Department to ensure that an appropriate written nondisclosure agreement is
signed prior to the disclosure. The Company has standard nondisclosure
agreements suitable for most disclosures. You must not sign a third party's
nondisclosure agreement or accept changes to the Company's standard
nondisclosure agreements without review and approval by the Company's Legal
Department. In addition, all Company materials that contain Company confidential
information, including presentations, must be reviewed and approved by the
Company's Legal Department prior to publication or use. Furthermore, any
employee publication or publicly made statement that might be perceived or
construed as attributable to the Company, made outside the scope of his or her
employment with the Company, must be reviewed and approved in writing in advance
by the Company's Legal Department and must include the Company's standard
disclaimer that the publication or statement represents the views of the
specific author and not of the Company.

    

    (iii)
Requests by Regulatory
Authorities. The Company and its employees, agents and contractors must
cooperate with appropriate government inquiries and investigations. In this
context, however, it is important to protect the legal rights of the Company
with respect to its confidential information. All government requests for
information, documents or investigative interviews must be referred to the
Company's Legal Department. No financial information may be disclosed without
the prior approval of the Chief Financial Officer.

    

    (iv)
Company Spokespeople.
Specific policies have been established regarding who may communicate
information to the press and the financial analyst community. All inquiries or
calls from the press and financial analysts should be referred to the Chief
Financial Officer or Investor Relations Department. The Company has designated
its CEO, CFO and Investor Relations Department as official Company spokespeople
for financial matters. The Company has designated its Public Relations
Department as official Company spokespeople for marketing, technical and other
such information. These designees are the only people who may communicate with
the press on behalf of the Company.

    

    F. Obligations Under Securities
Laws-"Insider" Trading

    

    Obligations
under the U.S. securities laws apply to everyone. In the normal course of
business, officers, directors, employees, agents, contractors and consultants of
the Company may come into possession of significant, sensitive information. This
information is the property of the Company -- you have been entrusted with it.
You may not profit from it by buying or selling securities yourself, or passing
on the information to others to enable them to profit or for them to profit on
your behalf. The purpose of this policy is both to inform you of your legal
responsibilities and to make clear to you that the misuse of sensitive
information is contrary to Company policy and U.S. securities laws. This policy
description is in addition to the Company’s Insider Trading Policy which you
must annually certify your compliance thereto.

    

    Insider
trading is a crime, penalized by fines of up to $5,000,000 and 20 years in jail
for individuals. In addition, the SEC may seek the imposition of a civil penalty
of up to three times the profits made or losses avoided from the trading.
Insider traders must also disgorge any profits made, and are often subjected to
an injunction against future violations. Finally, insider traders may be
subjected to civil liability in private lawsuits.

    

    Employers
and other controlling persons (including supervisory personnel) are also at risk
under U.S. securities laws. Controlling persons may, among other things, face
penalties of the greater of $5,000,000 or three times the profits made or losses
avoided by the trader if they recklessly fail to take preventive steps to
control insider trading.

     

     

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    Thus, it
is important both to you and the Company that insider-trading violations not
occur. You should be aware that stock market surveillance techniques are
becoming increasingly sophisticated, and the chance that U.S. federal or other
regulatory authorities will detect and prosecute even small-level trading is
significant. Insider trading rules are strictly enforced, even in instances when
the financial transactions seem small. You should contact the Chief Financial
Officer or the Legal Department if you are unsure as to whether or not you are
free to trade.

    

    The
Company has imposed certain additional trading blackout periods as described in
the Company Insider Trading Policy on members of the Board of Directors,
executive officers and certain designated employees who, as a consequence of
their position with the Company, are more likely to be exposed to material
nonpublic information about the Company. These directors, executive officers and
employees generally may not trade in Company securities during such blackout
periods.

    

    For more
details, and to determine if you are restricted from trading during trading
blackout periods, you should review the Company’s Insider Trading Compliance
Program. You can request a copy of this policy from the Legal Department. You
should take a few minutes to read the Insider Trading Compliance Program
carefully, paying particular attention to the specific policies and the
potential criminal and civil liability and/or disciplinary action for insider
trading violations. Employees, agents and contractors of the Company who violate
this Policy are also be subject to disciplinary action by the Company, which may
include termination of employment or of business relationship. All questions
regarding the Company's Insider Trading Compliance Program should be directed to
the Company's Chief Financial Officer or Legal Department.

    

    G.
Prohibition Against Short Selling of Company Stock

    

    No
Company director, officer or other employee, agent or contractor may, directly
or indirectly, sell any equity security, including derivatives, of the Company
if he or she (1) does not own the security sold, or (2) if he or she owns the
security, does not deliver it against such sale (a "short sale against the box")
within twenty days thereafter, or does not within five days after such sale
deposit it in the mails or other usual channels of transportation. No Company
director, officer or other employee, agent or contractor may engage in short
sales. A short sale, as defined in this policy, means any transaction whereby
one may benefit from a decline in the Company's stock price. While employees who
are not executive officers or directors are not prohibited by law from engaging
in short sales of Company's securities, the Company has adopted as policy that
employees may not do so.

    

    H. Use of Company's
Assets

    

    (i) General. Protecting the
Company's assets is a key fiduciary responsibility of every employee, agent and
contractor. Care should be taken to ensure that assets are not misappropriated,
loaned to others, or sold or donated, without appropriate authorization. All
Company employees, agents and contractors are responsible for the proper use of
Company assets, and must safeguard such assets against loss, damage, misuse or
theft. Employees, agents or contractors who violate any aspect of this policy or
who demonstrate poor judgment in the manner in which they use any Company asset
may be subject to disciplinary action, up to and including termination of
employment or business relationship at the Company's sole discretion. Company
equipment and assets are to be used for Company business purposes only.
Employees, agents and contractors may not use Company assets for personal use,
nor may they allow any other person to use Company assets. Employees who have
any questions regarding this policy should bring them to the attention of the
Company's Human Resources Department.

    

    (ii)
Physical Access Control.
The Company has and will continue to develop procedures covering physical access
control to ensure privacy of communications, maintenance of the security of the
Company communication equipment, and safeguard Company assets from theft, misuse
and destruction. You are personally responsible for complying with the level of
access control that has been implemented in the facility where you work on a
permanent or temporary basis. You must not defeat or cause to be defeated the
purpose for which the access control was implemented.

    

    (iii)
Company Funds. Every
Company employee is personally responsible for all Company funds over which he
or she exercises control. Company agents and contractors should not be allowed
to exercise control over Company funds. Company funds must be used only for
Company business purposes. Every Company employee, agent and contractor must
take reasonable steps to ensure that the Company receives good value for Company
funds spent, and must maintain accurate and timely records of each and every
expenditure. Expense reports must be accurate and submitted in a timely manner.
Company employees, agents and contractors must not use Company funds for any
personal purpose.

    

    (iv) Computers and Other
Equipment. The
Company strives to furnish employees with the equipment necessary to efficiently
and effectively do their jobs. You must care for that equipment and to use it
responsibly only for Company business purposes. If you use Company equipment at
your home or off site, take precautions to protect it from theft or damage, just
as if it were your own. If the Company no longer employs you, you must
immediately return all Company equipment.

    

    While
computers and other electronic devices are made accessible to employees to
assist them to perform their jobs and to promote Company's interests, all such
computers and electronic devices, whether used entirely or partially on the
Company's premises or with the aid of the Company's equipment or resources, must
remain fully accessible to the Company and, to the maximum extent permitted by
law, will remain the sole and exclusive property of the Company.

    

    Employees,
agents and contractors should not maintain any expectation of privacy with
respect to information transmitted over, received by, or stored in any
electronic communications device owned, leased, or operated in whole or in part
by or on behalf of the Company. To the extent permitted by applicable law, the
Company retains the right to gain access to any information received by,
transmitted by, or stored in any such electronic communications device, by and
through its employees, agents, contractors, or representatives, at any time,
either with or without an employee's or third party's knowledge, consent or
approval.

    

    (v) Software. All software used by
employees to conduct Company business must be appropriately licensed. Never make
or use illegal or unauthorized copies of any software, whether in the office, at
home, or on the road, since doing so may constitute copyright infringement and
may expose you and the Company to potential civil and criminal liability. In
addition, use of illegal or unauthorized copies of software may subject the
employee to disciplinary action, up to and including termination. The Company's
IT Department will inspect Company computers periodically to verify that only
approved and licensed software has been installed. Any non-licensed/supported
software will be removed.

    

    (vi)
Electronic Usage. The
purpose of this policy is to make certain that employees utilize electronic
communication devices in a legal, ethical, and appropriate manner. This policy
addresses the Company's responsibilities and concerns regarding the fair and
proper use of all electronic communications devices within the organization,
including computers, e-mail, connections to the Internet, intranet and extranet
and any other public or private networks, voice mail, video conferencing,
facsimiles, and telephones. Posting or discussing information concerning the
Company's products or business on the Internet without the prior written consent
of the Company's CFO is prohibited. Any other form of electronic communication
used by employees currently or in the future is also intended to be encompassed
under this policy. It is not possible to identify every standard and rule
applicable to the use of electronic communications devices. Employees are
therefore encouraged to use sound judgment whenever using any feature of our
communications systems. The complete set of policies with respect to electronic
usage of the Company's assets is located in the employee
handbook.  You are expected to review, understand and follow such
policies and procedures.

     

    

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    I. Maintaining and Managing
Records

    

    The
purpose of this policy is to set forth and convey the Company's business and
legal requirements in managing records, including all recorded information
regardless of medium or characteristics. Records include paper documents, CDs,
computer hard disks, email, floppy disks, microfiche, microfilm or all other
media. The Company is required by local, state, federal, foreign and other
applicable laws, rules and regulations to retain certain records and to follow
specific guidelines in managing its records. Civil and criminal penalties for
failure to comply with such guidelines can be severe for employees, agents,
contractors and the Company, and failure to comply with such guidelines may
subject the employee, agent or contractor to disciplinary action, up to and
including termination of employment or business relationship at the Company's
sole discretion.

    

    J. Records on Legal
Hold

    

    A legal
hold suspends all document destruction procedures in order to preserve
appropriate records under special circumstances, such as litigation or
government investigations. The Company's Legal Department determines and
identifies what types of Company records or documents are required to be placed
under a legal hold. Every Company employee, agent and contractor must comply
with this policy. Failure to comply with this policy may subject the employee,
agent or contractor to disciplinary action, up to and including termination of
employment or business relationship at the Company's sole
discretion.

    

    The
Company's Legal Department will notify you if a legal hold is placed on records
for which you are responsible. You then must preserve and protect the necessary
records in accordance with instructions from the Company's Legal
Department.  RECORDS
OR SUPPORTING DOCUMENTS THAT HAVE BEEN PLACED UNDER A LEGAL
HOLD MUST NOT BE DESTROYED, ALTERED OR MODIFIED UNDER ANY
CIRCUMSTANCES.  A legal hold remains effective until it is
officially released in writing by the Company's Legal Department. If you are
unsure whether a document has been placed under a legal hold, you should
preserve and protect that document while you check with the Company's Legal
Department.

    

    If you
have any questions about this policy you should contact the Company's Legal
Department.

    

    K. Payment Practices

    

    (i) Accounting Practices. The
Company's responsibilities to its stockholders and the investing public require
that all transactions be fully and accurately recorded in the Company's books
and records in compliance with all applicable laws. False or misleading entries,
unrecorded funds or assets, or payments without appropriate supporting
documentation and approval are strictly prohibited and violate Company policy
and the law. Additionally, all documentation supporting a transaction should
fully and accurately describe the nature of the transaction and be processed in
a timely fashion.

    

    (ii)
Political Contributions.
The Company reserves the right to communicate its position on important issues
to elected representatives and other government officials. It is the Company's
policy to comply fully with all local, state, federal, foreign and other
applicable laws, rules and regulations regarding political contributions. The
Company's funds or assets must not be used for, or be contributed to, political
campaigns or political practices under any circumstances without the prior
written approval of the Company's General Counsel and, if required, the Board of
Directors.

    

    (iii)
Prohibition of
Inducements. Under no circumstances may employees, agents or contractors
offer to pay, make payment, promise to pay, or issue authorization to pay any
money, gift, or anything of value to customers, vendors, consultants, etc. that
is perceived as intended, directly or indirectly, to improperly influence any
business decision, any act or failure to act, any commitment of fraud, or
opportunity for the commission of any fraud. Inexpensive gifts, infrequent
business meals, celebratory events and entertainment, provided that they are not
excessive or create an appearance of impropriety, do not violate this policy.
Questions regarding whether a particular payment or gift violates this policy
should be directed to Human Resources or the Legal Department.

    

    L. Foreign Corrupt Practices
Act

    

    The
Company requires full compliance with the Foreign Corrupt Practices Act (FCPA)
by all of its employees, agents, and contractors and requires all employees with
contact with foreign customers or who conduct business overseas to certify that
they understand and are compliant with the Company’s Foreign Corrupt Practices
Act Policy.

    

    The
anti-bribery and corrupt payment provisions of the FCPA make illegal any corrupt
offer, payment, promise to pay, or authorization to pay any money, gift, or
anything of value to any foreign official, or any foreign political party,
candidate or official, for the purpose of: influencing any act or failure to
act, in the official capacity of that foreign official or party; or inducing the
foreign official or party to use influence to affect a decision of a foreign
government or agency, in order to obtain or retain business for anyone, or
direct business to anyone.

    

    All
Company employees, agents and contractors whether located in the United States
or abroad, are responsible for FCPA compliance and the procedures to ensure FCPA
compliance. All managers and supervisory personnel are expected to monitor
continued compliance with the FCPA to ensure compliance with the highest moral,
ethical and professional standards of the Company. FCPA compliance includes the
Company's policy on Maintaining and Managing Records in Section III.I of this
Code of Business Conduct and Ethics.

    

    Laws in
most countries outside of the United States also prohibit or restrict government
officials or employees of government agencies from receiving payments,
entertainment, or gifts for the purpose of winning or keeping business. No
contract or agreement may be made with any business in which a government
official or employee holds a significant interest, without the prior approval of
the Company's General Counsel.

     

     

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    M. Export Controls

    

    A number
of countries maintain controls on the destinations to which products or software
may be exported. Some of the strictest export controls are maintained by the
United States against countries that the U.S. government considers unfriendly or
as supporting international terrorism. The U.S. regulations are complex and
apply both to exports from the United States and to exports of products from
other countries, when those products contain U.S.-origin components or
technology. Software created in the United States is subject to these
regulations even if duplicated and packaged abroad. In some circumstances, an
oral presentation containing technical data made to foreign nationals in the
United States may constitute a controlled export. The Legal Department can
provide you with guidance on which countries are prohibited destinations for
Company products or whether a proposed technical presentation to foreign
nationals may require a U.S. Government license.

    

    IV.
RESPONSIBILITIES TO OUR CUSTOMERS AND OUR SUPPLIERS

    

    A.
Customer Relationships

    

    If your
job puts you in contact with any Company customers or potential customers, it is
critical for you to remember that you represent the Company to the people with
whom you are dealing. Act in a manner that creates value for our customers and
helps to build a relationship based upon trust. The

    Company
and its employees have provided products and services for many years and have
built up significant goodwill over that time. This goodwill is one of our most
important assets, and the Company employees, agents and contractors must act to
preserve and enhance our reputation.

    

    B.
Payments or Gifts from Others

    

    Under no
circumstances may employees, agents or contractors accept any offer, payment,
promise to pay, or authorization to pay any money, gift, or anything of value
from customers, vendors, consultants, etc. that is perceived as intended,
directly or indirectly, to influence any business decision, any act or failure
to act, any commitment of fraud, or opportunity for the commission of any fraud.
Inexpensive gifts, infrequent business meals, celebratory events and
entertainment, provided that they are not excessive or create an appearance of
impropriety, do not violate this policy. Questions regarding whether a
particular payment or gift violates this policy are to be directed to Human
Resources or the Legal Department. Gifts given by the Company to suppliers or
customers or received from suppliers or customers should always be appropriate
to the circumstances and should never be of a kind that could create an
appearance of impropriety. The nature and cost must always be accurately
recorded in the Company's books and records.

    

    C.
Publications of Others

    

    The
Company subscribes to many publications that help employees do their jobs
better. These include newsletters, reference works, online reference services,
magazines, books, and other digital and printed works. Copyright law generally
protects these works, and their unauthorized copying and distribution constitute
copyright infringement. You must first obtain the consent of the publisher of a
publication before copying publications or significant parts of them. When in
doubt about whether you may copy a publication, consult the Legal Department.
The Company has entered into an annual copyright license with an organization
that manages such rights for a wide number of publishers, but you still must
contact the Legal Department to determine if we have rights to copy material
from a publication.

    

    D.
Handling the Confidential Information of Others

    

    The
Company has many kinds of business relationships with many companies and
individuals.

    Sometimes,
they will volunteer confidential information about their products or business
plans to induce the Company to enter into a business relationship. At other
times, we may request that a third party provide confidential information to
permit the Company to evaluate a potential business relationship with that
party. Whatever the situation, we must take special care to handle the
confidential information of others responsibly. We handle such confidential
information in accordance with our agreements with such third parties. See also
the Company's policy on Maintaining and Managing Records in Section III.I of
this Code of Business Conduct and Ethics.

    

    (i) Appropriate Nondisclosure
Agreements. Confidential information may take many forms. An oral
presentation about a company's product development plans may contain protected
trade secrets. A customer list or employee list may be a protected trade secret.
A demo of an alpha version of a company's new software may contain information
protected by trade secret and copyright laws.

    

    You
should never accept information offered by a third party that is represented as
confidential, or which appears from the context or circumstances to be
confidential, unless an appropriate nondisclosure agreement has been signed with
the party offering the information.  THE LEGAL DEPARTMENT CAN PROVIDE
NONDISCLOSURE AGREEMENTS TO FIT ANY PARTICULAR SITUATION, AND WILL
COORDINATE APPROPRIATE EXECUTION OF SUCH AGREEMENTS ON BEHALF OF THE
COMPANY. Even after a nondisclosure agreement is in place, you should
accept only the information necessary to accomplish the purpose of receiving it,
such as a decision on whether to proceed to negotiate a deal. If more detailed
or extensive confidential information is offered and it is not necessary, for
your immediate purposes, it should be refused.

    

    (ii)
Need-to-Know. Once a
third party's confidential information has been disclosed to the Company, we
have an obligation to abide by the terms of the relevant nondisclosure agreement
and limit its use to the specific purpose for which it was disclosed and to
disseminate it only to other Company employees with a need to know the
information. Every employee, agent and contractor involved in a potential
business relationship with a third party must understand and strictly observe
the restrictions on the use and handling of confidential information. When in
doubt, consult the Legal Department.

    

    (iii)
Notes and Reports. When
reviewing the confidential information of a third party under a nondisclosure
agreement, it is natural to take notes or prepare reports summarizing the
results of the review and, based partly on those notes or reports, to draw
conclusions about the suitability of a business relationship. Notes or reports,
however, can include confidential information disclosed by the other party and
so should be retained only long enough to complete the evaluation of the
potential business relationship. Subsequently, they should be either destroyed
or turned over to the Legal Department for safekeeping or destruction. They
should be treated just as any other disclosure of confidential information is
treated: marked as confidential and distributed only to those the Company
employees with a need to know.

    

    (iv)
Competitive Information.
You should never attempt to obtain a competitor's confidential information by
improper means, and you should especially never contact a competitor regarding
their confidential information. While the Company may, and does, employ former
employees of competitors, we recognize and respect the obligations of those
employees not to use or disclose the confidential information of their former
employers.

     

     

    6

      
        
           

          
             

            
              

            

          

          
             

          

        

      

    

     

    E.
Selecting Suppliers

    

    The
Company's suppliers make significant contributions to our success. To create an
environment where our suppliers have an incentive to work with the Company, they
must be confident that they will be treated lawfully and in an ethical manner.
The Company's policy is to purchase supplies based on need, quality, service,
price and terms and conditions. The Company's policy is to select significant
suppliers or enter into significant supplier agreements though a competitive bid
process where possible. Under no circumstances should any Company employee,
agent or contractor attempt to coerce suppliers in any way. The confidential
information of a supplier is entitled to the same protection as that of any
other third party and must not be received before an appropriate nondisclosure
agreement has been signed. A supplier's performance should never be discussed
with anyone outside the Company. A supplier to the Company is generally free to
sell its products or services to any other party, including competitors of the
Company. In some cases where the products or services have been designed,
fabricated, or developed to our specifications the agreement between the parties
may contain restrictions on sales.

    

    F.
Government Relations

    

    It is the
Company's policy to comply fully with all applicable laws and regulations
governing contact and dealings with government employees and public officials,
and to adhere to high ethical, moral and legal standards of business conduct.
This policy includes strict compliance with all local, state, federal, foreign
and other applicable laws, rules and regulations. If you have any questions
concerning government relations you should contact the Company's Legal
Department.

    

    G.
Lobbying

    

    Employees,
agents or contractors whose work requires lobbying communication with any member
or employee of a legislative body or with any government official or employee in
the formulation of legislation must have prior written approval of such activity
from the Company's General Counsel.

    Activity
covered by this policy includes meetings with legislators or members of their
staffs or with senior executive branch officials. Preparation, research, and
other background activities that are done in support of lobbying communication
are also covered by this policy even if the communication ultimately is not
made.

    

    H.
Government Contracts

    

    It is the
Company's policy to comply fully with all applicable laws and regulations that
apply to government contracting. It is also necessary to strictly adhere to all
terms and conditions of any contract with local, state, federal, foreign or
other applicable governments. The Company's Legal Department must review and
approve all contracts with any government entity.

    

    I.
Free and Fair Competition

    

    Most
countries have well-developed bodies of law designed to encourage and protect
free and fair competition. The Company is committed to obeying both the letter
and spirit of these laws. The consequences of not doing so can be severe for all
of us.

    

    These
laws often regulate the Company's relationships with its distributors,
resellers, dealers, and

    customers.
Competition laws generally address the following areas: pricing practices
(including price discrimination), discounting, terms of sale, credit terms,
promotional allowances, secret rebates, exclusive dealerships or
distributorships, product bundling, restrictions on carrying competing products,
termination, and many other practices.

    

    Competition
laws also govern, usually quite strictly, relationships between the Company and
its competitors. As a general rule, contacts with competitors should be limited
and should always avoid subjects such as prices or other terms and conditions of
sale, customers, and suppliers. Employees, agents or contractors of the Company
may not knowingly make false or misleading statements regarding its competitors
or the products of its competitors, customers or suppliers. Participating with
competitors in a trade association or in a standards creation body is acceptable
when the association has been properly established, has a legitimate purpose,
and has limited its activities to that purpose.

    

    No
employee, agent or contractor shall at any time or under any circumstances enter
into an agreement or understanding, written or oral, express or implied, with
any competitor concerning prices, discounts, other terms or conditions of sale,
profits or profit margins, costs, allocation of product or geographic markets,
allocation of customers, limitations on production, boycotts of customers or
suppliers, or bids or the intent to bid or even discuss or exchange information
on these subjects. In some cases, legitimate joint ventures with competitors may
permit exceptions to these rules as may bona fide purchases from or sales to
competitors on non-competitive products, but the Company's Legal Department must
review all such proposed ventures in advance. These prohibitions are absolute
and strict observance is required. Collusion among competitors is illegal, and
the consequences of a violation are severe.

    

    Although
the spirit of these laws, known as "antitrust," "competition," or "consumer
protection" or unfair competition laws, is straightforward, their application to
particular situations can be quite complex. To ensure that the Company complies
fully with these laws, each of us should have a basic knowledge of them and
should involve our Legal Department early on when questionable situations
arise.

    

    J. Industrial
Espionage

    

    It is the
Company's policy to lawfully compete in the marketplace. This commitment to
fairness includes respecting the rights of our competitors and abiding by all
applicable laws in the course of competing. The purpose of this policy is to
maintain the Company's reputation as a lawful competitor and to help ensure the
integrity of the competitive marketplace. The Company expects its competitors to
respect our rights to compete lawfully in the marketplace, and we must respect
their rights equally.

    Company
employees, agents and contractors may not steal or unlawfully use the
information, material, products, intellectual property, or proprietary or
confidential information of anyone including suppliers, customers, business
partners or competitors.

    

    V.
WAIVERS

    

    Any
waiver of any provision of this Code of Business Conduct and Ethics for a member
of the Company’s Board of Directors or an executive officer must be approved in
writing by the Company’s Board of Directors and promptly disclosed. Any waiver
of any provision of this Code of Business Conduct and Ethics with respect any
other employee, agent or contractor must be approved in writing by the Company’s
General Counsel.

    

    VI.
DISCIPLINARY ACTIONS

    

    The
matters covered in this Code of Business Conduct and Ethics are of the utmost
importance to the Company, its stockholders and its business partners, and are
essential to the Company's ability to conduct its business in accordance with
its stated values. We expect all of our employees, agents, contractors and
consultants to adhere to these rules in carrying out their duties for the
Company.

    

    The
Company will take appropriate action against any employee, agent, contractor or
consultant whose actions are found to violate these policies or any other
policies of the Company. Disciplinary actions may include immediate termination
of employment or business relationship at the Company's sole discretion. Where
the Company has suffered a loss, it may pursue its remedies against the
individuals or entities responsible. Where laws have been violated, the Company
will cooperate fully with the appropriate authorities. You should review the
Company's policies and procedures on the Company’s intranet for more detailed
information.

     

     

    7Unassociated Document

    PANSOFT
COMPANY LIMITED

     

    NOTICE OF GRANT OF STOCK
OPTION

     

    

     

    Notice is
hereby given of the following option grant (the “Option”) to purchase shares of
the Common Stock of Pansoft Company Limited (the “Corporation”):

     

    Optionee:   
__________

     

    Grant
Date:  __________

     

    Vesting Commencement
Date: __________

     

    Exercise
Price:  __________

     

    Number
of Option Shares: __________

     

    Expiration
Date:  __________

     

    Type
of Option:          
________       Incentive
Stock Option

     

                                          
________       Non-Statutory
Stock Option

     

    Exercise
Schedule:  The Option shall become exercisable for the Option
Shares in a series of _________ successive equal annual installments upon
Optionee’s completion of each additional year of Service over
the _______ year
period measured from the Vesting Commencement Date.  In no
event shall the Option become exercisable for any additional Option Shares after
Optionee’s cessation of Service.

     

    Optionee
understands and agrees that the Option is granted subject to and in accordance
with the terms of the Pansoft Company Limited 2008 Stock Incentive Plan (the
“Plan”).  Optionee further agrees to be bound by the terms of the Plan
and the terms of the Option as set forth in the Stock Option Agreement attached
hereto as Exhibit
A. Optionee hereby acknowledges the receipt of a copy of the official
prospectus for the Plan in the form attached hereto as Exhibit B. A copy of
the Plan is available upon request made to the Corporate Secretary at the
Corporation’s principal offices.

     

    Employment at
Will.  Nothing in this Notice or in the attached Stock Option
Agreement or in the Plan shall confer upon Optionee any right to continue in
Service for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the

     

    Corporation
(or any Parent or Subsidiary employing or retaining Optionee) or of Optionee,
which rights are hereby expressly reserved by each, to terminate Optionee’s
Service at any time for any reason, with or without cause.

     

    Definitions.  All
capitalized terms in this Notice shall have the meaning assigned to them in this
Notice or in the attached Stock Option Agreement.

     

    DATED:                           

     

                                     

    
      
        	 
      	
                PANSOFT
      COMPANY LIMITED

                 

              
	 
      	 
      
	
                 

              	
                By:

              	
                 

              
	 
      	 
      	
                Hu
      Wang

              
	 
      	 
      	
                Chairman
      of Board of Directors

              

      

    

     

     

     

    
      
        
          
            
              	 
      	
                      ___________________,
      OPTIONEE

                    
	 
      	 
      
	
                      Address:

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