On July 7, 2006, Netac Technology (300042.SZ) signed a patent authorization and licensing agreement (the "original license agreement") with Kingston China Cooperatie U.A. (hereinafter referred to as "KTCUA "), and signed supplementary agreements to the original license agreement on January 29, 2011 and September 23, 2011, extending the validity period of the original license agreement. It is stipulated that if either party to the agreement fails to inform the other party in writing in accordance with the provisions of the supplementary agreement to terminate the original license agreement, the validity period of the original license agreement will be automatically extended as agreed. As of the date of this announcement, the validity period of the original license agreement has been automatically extended and is being performed normally.

Due to adjustments in the partner's business, the company recently signed a patent authorization transfer and succession agreement with KTCUA and Kingston Digital International Limited (hereinafter referred to as "KDIL"). All parties agreed to change the contracting party of the original license agreement to KDIL. KTCUA transferred to KDIL all future ownership, responsibilities, obligations, claims, and liabilities arising from or related to patent licensing. KDIL agreed to assume the actual responsibility. If KDIL fails to fulfill its obligations under this transfer or license, KTCUA agrees to bear joint liability. The payment standards and methods for patent license fees remain unchanged.