China Starcom & Motion Picture Letter of Intent on Cooperation Party A:Beijing STARCOM Co., Ltd.of China(hereafter referred to simply as:STARCOM) Party B:A Korean business entity, Motion Picture Co., Ltd.(hereafter referred to simply as:MP) Through friendly negotiations, both parties reached the following agreement on cooperation intent in Beijing, People's Republic of China on ,2002, on STARCOM's outright purchase and introduction of MP's high and new technology products, patents and related techniques of video compression, video transmission, etc., and on the technical and commercial operation to be carried out in China and other regions concerned in the world: Article 1: Intent and Purpose of Cooperation: 1. STARCOM's outright purchase and introduction of MP's high and new technology patents and related techniques; 2. STARCOM's carrying out of all kinds of commercial application by relying on MP's technology and support. 3. Authorization by MP to STARCOM for the exclusive ownership of MP's patented technology and commercial right of use of it in China and international regions concerned. Article 2:Definition and Explanation The agreement gives the following clear definitions to the expressions with special meanings, unless otherwise specified in the context: 1. Technological Introduction: it refers to the license,copyright and documentation needed for outright purchase of patent and all the necessary techniques, including the jurisdiction of consultation and licensing with any Chinese corporation. 2. Consultation: it refers to the technical backup and management support during the process of business dealing. 3. Consulting Fee: it refers to the money paid in advance for the technical service, or the money paid for the data for technical and commercial exchange. Article 3:Technology All the intellectual property rights and know-how possessed by MP, and all the relevant techniques to be developed in future, are the contents of technology of the formal agreement: 1. digital system of video compression and decompression. 2. video flowing transmission technique. 3. Other related techniques exclusively possessed by MP. Article 4: Introduction of Technology and Compensation 机密 第 1 页 2019-09-26 China Starcom & Motion Picture 1. STARCOM has the exclusive right to use MP's techniques for business conducts,and MP shall provide all the techniques and related data, and provide the source code of the techniques in the process of execution of the formal agreement; 2. MP and STARCOM shall discuss the division of associated costs, including the patent fee to be paid according to the output resulting from the technological introduction by STARCOM. If the consulting fee exclusively gained by STARCOM from introduction of such techniques has accumulated till US$ 1.5 million, or the total agreement payment is lower than that specified in Article 9, whichever is more, it should be shared by STARCOM and MP after another negotiation. 3.TARCOM shall monopolize the ownership and use of MP's technology in China to carry out its undertaking, and shall return 15% of the profit to MP as the transfer fee of the technical patent. Article 5: Licensor's Jurisdiction 1. STARCOM shall have the exclusive right to negotiate on or sign a license agreement with any Chinese or international corporation wishing to use MP's technology to carry out commercial activities. 2. In the event that a Chinese licensee needs negotiation or related software development services,MP may offer a new agreement for such a single-purpose service. Article 6: Formal License Agreement and Regional Restriction A Chinese corporate entity shall have the right to sell the products made by using the technology of MP, or further develop new products based on the technology of MP. And, such products of high and new technology may also be sold to overseas market beyond Mainland of China. Article 7: Data Supply and Market Support 1. Data supply: MP shall provide data and technical training,offering all-out support to STARCOM for market development. 2. Market support: according to the requirement from STARCOM, MP shall provide technical demonstration and explanation during different exhibitions or product showing meetings in China, and the number of times for such activities should be not be fewer than 3 every year. STARCOM shall bear the associated costs of such supporting activities. Article 8:Consulting Services MP shall provide STARCOM with the information on the relevant techniques, products and systems in China, Korea and other regions; 1. In accordance with the requirement from STARCOM,MP shall provide a written report,introducing the new business development ideas and new product conceptions in Korea (including any high, new and leading edge techniques as considered appropriate by MP). 2. STARCOM shall bear all the transportation fee involved in the consultation activities by MP. Article 9:The Period of Validity of the Formal Agreement and the Form of Payment 机密 第 2 页 2019-09-26 China Starcom & Motion Picture 1. The formal agreement is valid for three years, from the first date of payment. And it is possible, at the request of STARCOM, to extend the same term and clauses automatically till the next three years. 2.The contracted value is US$ 1 million(free of tax),and the method of payment is as follows. 1) One-time payment: US$ 0.5 million ($500,000) shall be paid at the time of signing of the contract 2) Two-time payment: Within 6 months after signing of the contract, US$ 1 million ($1,000,000) shall be paid. Article 10: Refundment of the Payment of the Formal Agreement If the introduced technology of MP is ineffective or inapplicable in practice completely owing to the fault of MP,then, the payment of the agreement may be refunded in full. The refundment of the payment of the formal agreement should be settled on the condition of no dispute between the two parties;Otherwise, in accordance with the legal procedures, both parties shall go through the arbitration rules of the International Chamber of Commerce on the basis of this agreement. Article 11: Confidentiality STARCOM shall ensure that all the data it has obtained from MP are in strict security; without the permission of MP, none of MP's technical information, data on development and customer information should be disclosed to any third party. Article 12: Languages Used in the Agreement The letter of intent and the formal agreement are in English, Chinese and Korean. In the event of dispute between both parties on any specified explanation or definition, the settlement should be based on the English version. The letter of intent shall come into effect from the date of signing. Party A:Beijing STARCOM Co., Ltd. Representative: Date: (Signature/seal) Party B:Motion Picture Co., Ltd. Representative: Date: (Signature/seal) 机密 第 3 页 2019-09-26 China Starcom & Motion Picture 原文: 合作意向书 (Letter Of Intent) 甲方:中国北京实达信通科贸有限公司(以下简称:STARCOM) 乙方:韩国企业法人Motion Picture Co.,Ltd(以下简称:MP) 双方经友好协商,于2002年---月---日在中华人民共和国北京,就STARCOM买断并引进MP拥有的高新技术产品——图象压缩、视频传输等专利和相关技术,以及在中国和国际相关地区开展技术商业运作等事项,达成以下合作意向: 条款1:合作意向目的: 1、 STARCOM买断MP高新技术专利并并引进其相关技术; 2、 STARCOM依托MP的技术和支持,开展各类相关商业运用。 3、 MP授权STARCOM为在中国和国际相关地区独家拥有MP的专利技术和商业使用权。 条款2:定义和解释 本协议将有特定含义的措辞和表述,除上下文有其他要求的以外,给予下列明确的定义: 1、技术引进,指专利买断及所有必须技术的许可证、版权和资料,包括对任何中国公司的咨询和许可证权限。 2、咨询,指商业行为过程中的技术服务和管理支持。 3、咨询费,指为技术服务提前支付的款项或者为技术和商业交流而支付的资料等款项。 条款3:技术 MP现有的全部自有知识产权的专门技术,以及未来发展的相关技术,都是正式协议的技术内容: 1、图象压缩和解压缩数字系统。 2、视频流动传输技术。 3、其他与上述技术相关的MP独有的技术。 条款4:技术介绍和补偿 1、STARCOM独家利用MP的技术从事商业行为,MP将提供全套技术和相关资料并在正式协议执行过程中提供技术的源代码; 2、MP和STARCOM将另协商相关费用分成,包括来自STARCOM技术引进后的按产量支付的专利费。如果STARCOM独家获得通过积累主要来自这些技术引进方的咨询费直到150万 US$美元或者协议付款合计低于条款9,无论那一个更多,需要另行协商后,在STARCOM和MP之间分享。 3、3. TARCOM”将在中国国内垄断拥有和运用 “MP”的技术开展事业,作为技术专利转让费按 利润15%返给“MP”公司。 条款5:许可方权限 1、 STARCOM拥有独家权利与任何希望使用MP技术从事商业活动的中国或国际公司商议或签订一个许可协议。 机密 第 4 页 2019-09-26 China Starcom & Motion Picture 2、 如果中国技术引进方需要磋商或者相关软件开发服务,MP可能给予这样一个单独服务的新协议。 条款6:正式许可协议以及地域的限制 中国法人的公司或实体将有权出售使用MP技术生产的产品,或者进一步开发基于MP技术的新产品,同时这些高新技术产品也可以销售到中国大陆以外的海外市场。 条款7:资料提供和市场支持 1、资料提供,MP将提供资料和技术培训,全力支持STARCOM开拓市场。 2、市场支持,MP将依据STARCOM要求,在中国不同的展览会或产品展示会中,提供技术示范和现场讲解,这样的活动一年不少于3次。STARCOM将承担这些支持的相关费用。 条款8:咨询服务 MP向STARCOM提供在中国、韩国及其他地区相关技术、产品、系统等信息: 1、依据STARCOM的要求,MP将提供一份书面报告,介绍韩国新商业发展观念、新产品构思(包括MP认为合适的高新前沿技术)。 2、STARCOM将承担所有MP咨询活动的交通费用。 条款9:正式协议有效期和付款形式 1、正式协议的有效期为三年,从第一次付款日起。并且可根据STARCOM的要求,自动地延期同样的期限和条款到下一个三年。 2. 合同金额为 US$ 150万美元(不含税),费用支付方法如下。 1) 1次支付 : 合同当时支付 US$ 50万美元 ($500,000) 2次支付 : 签定合同后 6个月内支付US$ 100万美元 ($1,000,000)。 条款10:正式协议付款的退还 如果引进的MP的技术,由于无效或完全属于MP的过错,在实际上并不适用,那么协议付款可以全部退回。 正式协议付款的退还,应该在双方没有任何分歧下解决;否则,按照法律程序,双方以次协议为依据,接受国际商会的仲裁规程所做出的仲裁决定。 条款11:保密 STARCOM应当确保获得的所有MP资料严格保密,在未得到MP允许的情况下,不得将MP技术资料、发展资料和客户资料等泄露给第三方。 条款12:协议使用的语言 本意向书和正式协议的使用英语、汉语和韩语。如果双方在规定的解释或者定义之间发生分歧,以英文协议的解释为准。 本意向书自签字之日起生效。 甲方:北京实达信通科贸有限公司 代表: 乙方:Motion Picture Co.,Ltd 机密 第 5 页 2019-09-26 China Starcom & Motion Picture 日期: (签字/盖章) 代表: 日期: (签字/盖章) 机密 第 6 页 2019-09-26