Letter Offer

Our Ref: SDX/HR-12/06 30th of June 2006 Mr. Thanigaivel Murugan 39, Seyniyar Street, Muthiyalpet, Kancheepuram Dsit, Tamil Nadu State, India-631601 Fax No: +914442129564 Dear Mr. Thanigaivel, Re :

Offer of Employment as Linux Administrator

We are pleased to offer you employment as Linux Administrator with our Company subject to the following terms and conditions: 1.

Work Permit This employment is subject to the approval of the Malaysian Immigration Department through the granting a Work Permit to enable you to take up such employment.

2.

Commencement Date Your employment shall be deemed to operate from the 1st day of August 20 06 and shall continue until terminated in accordance with the provisions of this employment or upon expiry of twelve (12) months (up to 31st July 2007) from the date of commencement of this employment, or until earlier termination as hereinafter provided.

3.

4.

Work Base 3.1

You shall be based in Suite 19A-30-3A, UOA Centre, No. 19, Jalan Pinang, 50450 Kuala Lumpur Malaysia. However, we reserve the right to transfer you to any other site/office within Malaysia with or without notice and without any reason being assigned thereto.

3.2

For avoidance of doubt, this right of transfer by us shall also apply in the event that your work base is relocated to any other location outside Malaysia.

Work Assignment In addition to the normal work assignments required of you, we may at our entire discretion allocate to you additional work assignments at any of our work sites, branch offices, factories, premises, business offices and other undertakings and Page 1 of 13

enterprises owned by us or as the case may be by any of our associated Companies, or any other company carrying on business and for the time being, employing or engaging our services as Agents, Managers and/or Contractors. 5.

Salary Your monthly salary will be as follows, payable monthly in arrears on the last day of each month or on a date selected at our discretion. i) ii) iii)

6.

Basic salary Allowance of : (if applicable) Gross Salary

RM 1,300.00per month RM Nil per month RM 1,300.00per month

Probation The Employee is required to serve three (3) months’ probationary period. If the Employee fail to perform his service satisfactorily, the Company reserves the right to:-

(a) (b) (c)

terminate the Employee’s service by serving two (2) weeks’ written notice; or extend the Employee’s probation period for another one to three (1-3) month(s); or offer the Employee an alternative position with revised salary and benefits, as the case may be.

During this probationary period, either party has the right to terminate the Employee’s service by serving two (2) weeks’ written notice without any reason being assigned thereto. Please note that the Employee is deemed to be still under probation unless and until the letter of confirmation is issued to the Employee. 7.

Working Hours Your normal working hours will be from 09:00 hours to 18:30 hours from Monday to Friday, with one (1) hour lunch break. We may however, require you to work longer hours or at times other than the normal working hours as may from time to time become necessary in order to meet the needs of the Company’s business and you shall not be entitled to receive any additional remuneration for work done outside your normal working hours of work. We reserve the right to change the working hours as and when it is deemed necessary.

8.

Medical Examination 8.1

You may be required to undergo and pass a medical examination or psychiatric test at a Government hospital or our approved clinics prior to the commencement of your employment.

8.2

Notwithstanding 8.1, we also reserve the right to request you to undergo a medical examination or psychiatric test at a Government hospital or our approved clinics and to provide blood, urine or other like specimens for analysis as and when it is deemed necessary throughout your service.

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8.3

We may terminate your employment without notice if you:8.2.1 8.2.2 8.2.3

8.4

9.

refuse to undergo such medical examination or the required tests; or are found to be medically unfit to discharge your duties by reason of ill health or alcohol or drug abuse; or are found to be a carrier of an infection, virus or other disease detrimental to our operations.

In all cases we shall pay for the expense of the medical examination and you hereby authorise the medical officer or doctor to disclose to us the full details of the examination results and to discuss with us any matters arising from the examination which might impair you in properly discharging your duties.

Medical Benefits 9.1

You shall only be entitled to compensation for medical costs provided by the Social Security Organisation (SOCSO) or the Workmen Compensation Insurance, as the case may be, in the event of accidents in the work place resulting in incapacity.

9.2

In the event that you fall ill, we will pay for the medical costs by our Medical Practitioner (meaning any doctor appointed by us to our Company Panel of Doctors or a doctor or medical assistant employed at a Government Clinic or Government Hospital) or any other Medical Practitioner approved by us but excludes traditional physicians or traditional healers (unlicensed medical practitioners who use traditional medicines), up to a maximum of RM300.00 per calendar year (Ringgit Malaysia Three Hundred Only). During the first year of your service, the amount of medical expenses reimbursable by us shall be in direct proportion to the months of service you have completed at the time of incurring such expenses. Provided always that such medical expenses shall not include the following treatment :i) Dental treatment and dentures; ii) Spectacles and eye-glasses; iii) Any expenses which constitutes a valid claim under the Workmen's Compensation Ordinance or the Employees' Social Security Act; iv) Medical Treatment of any compliant revealed by our approved Medical Practitioner or Government Doctor prior to employment with us; v) Any expenses in respect of pregnancy, miscarriage or confinement; vi) Medical treatment arising out of self-inflicted injury or illness or diseases caused directly or indirectly by your misconduct; vii) Medical treatment in respect of illness or injury arising from unlawful acts, exposure to any unjustifiable hazards (except when attempting to save human life), use of drugs other than those prescribed by our Medical Practitioner or by a Government hospital, disorderly conduct in public and activities not connected with your normal duties of the office of employment in the service of the Company. viii) Psychiatric treatment ix) Surgical operations.

9.3

The above exclusions shall also apply in the event that your dependents

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(which means your lawful wife and your legitimate children who are below the age of eighteen and are unmarried and unemployed) are included in your entitlement to medical attendance payable by us under this Clause. 9.4

10.

11.

Medical expenses exceeding the aforesaid sum are to be borne by you or shall require our approval at our entire discretion. Notwithstanding the aforesaid, we reserve our right to vary the maximum amount of medical expenses payable in accordance with any change or alteration of personnel policies which shall be notified to you by way of circulars, notices or memoranda or amendment of contractual terms and conditions of service.

Absence 10.1

You shall not, without permission first had and obtained, leave or absent yourself from the place at which you are employed unless for the purpose of executing the orders and directions of the Company or the Directors or the Managers or the Supervisors of the business of the Company for the time being, unless prevented from attending at the said place of business by ill-health.

10.2

We shall at our entire discretion, deduct a proportionate amount from the your salary for every day of absence from your employment without our previous permission unless by reason of incapacity through illness or injury.

10.3

Notwithstanding anything herein to the contrary, in the event you are detained under police remand, the period in custody shall be regarded as a valid reason for absence and we shall, at our entire discretion, deduct a proportionate amount from your remuneration or your leave for every day of absence from your employment.

Annual Leave 11.1

You shall be entitled to the following paid annual leave:

(a)

eight days for every twelve months of continuous service if you have been continuously employed for a period of less than two years;

(b)

twelve days for every twelve months of continuous service if you have been continuously employed for a period of two years or more but less than five years; and

(d)

sixteen days for every twelve months of continuous service if you have been continuously employed for five years or more.

11.2

The annual leave is to be taken at a time or times convenient to us and subject to Company exigencies and this shall be taken no later than twelve (12) months after the leave falls due. If you fail to take such leave within the designated time-frame, you shall cease to be entitled to the leave unless prior written approval is given by us. Application to accumulate such annual leave shall be made by completing the

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“Application To Accumulate Leave” Form.

12.

11.3

You shall make your application for annual leave at least seven (7) days in advance by completing the “Leave Application Form” and you shall not commence your annual leave without the prior written approval of your application.

11.4

If you wish to cancel your leave, which has been previously approved by us, you may do so by completing the “Cancellation of Leave” Form and to be approved by us at our discretion. Failure to do so will result in the deduction of your annual leave as per the original leave application.

11.5

You shall not be entitled to be paid in respect of annual leave accrued due but unutilised as at the date of termination of employment.

11.6

Leave shall not be taken to set off against the notice period of resignation unless specifically approved by management.

11.7

We may at our discretion revise the above leave benefit.

Sick Leave 12.1

If you are absent on account of illness or incapacity, you must apply for paid sick leave by notifying your immediate superior before the beginning of your normal working hours and by producing a medical certificate which is either issued by a doctor who has been appointed to our Panel of Doctors or by an authorised staff of a Government clinic or hospital.

12.2

We shall reject medical certificates issued by Non-Panel Doctors or traditional physicians/healers and any sick leave taken by you on account of such medical certificates being issued to you shall be regarded as annual leave or unpaid leave, depending on whether you have a sufficient balance of annual leave accruing to you.

12.3

You shall be entitled to full pay in respect of the said sick leave provided that the number of days of sick leave in the calendar year shall not exceed the following :• • •

Below two (2) years of continuous service - fourteen (14) days per annum Between two (2) to five (5) years of continuous service - eighteen (18) days per annum Above five (5) years of service - twenty-two (22) days per annum

Sick leave in excess of the above shall be regarded as unpaid leave or annual leave. 12.4

In the calendar year in which you join the Company, the number of days of sick leave provided above will only be approved in proportion to the months of service you will have completed by the end of the calendar year.

12.5

If the hospitalisation is necessary, the number of days of sick leave can be extended up to sixty (60) days per calendar year at our discretion.

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12.6

If your illness or incapacity is of a prolonged or contagious or incapacitating nature such as tuberculosis, leukaemia, cancer or paralysis, you shall be entitled to a maximum of three (3) months’ sick leave on full pay and a further three (3) months’ sick leave on half pay. Such pay shall not be granted unless you obtain a medical certificate from a Government hospital or Company approved clinic and undergoes a course of treatment recommended by a Government hospital or Company approved clinics. If your illness or incapacity exceeds the period of six (6) consecutive months, we shall be entitled at any time thereafter to terminate your employment by immediate notice in writing to you without compensation.

13. Maternity Leave 13.1

Every female Employee shall be entitled to maternity leave for a period not exceeding than sixty (60) days (including rest days and prescribed public holidays) after the date of the delivery of the child (“the date of confinement”) on full pay and her eligibility for such paid leave shall be in accordance with the provisions of the Employment Act 1955.

13.2The application for maternity leave must be supported by a certificate from a registered medical practitioner. 13.3

The female Employee must notify us of the expected date of confinement not less than thirty (30) days before absence from work where possible and she (or someone on her behalf) must notify us of the date of confinement within seven (7) days thereof.

13.3A female employee who has five surviving children shall be disentitled to maternity leave pay. 14.

Leave Without Pay It is not our policy to grant leave without pay. Leave without pay is granted only in exceptional circumstances of crisis or emergency and should not exceed seven (7) days per year.

15.

Compassionate Leave 15.1 a.

You are entitled to the following compassionate leave: Nature of compassionate leave - one (1) day Death of husband or wife Death of father or mother Death of father-in-law or mother-in-law Death of a legitimate child Death of brother or sister Birth of a legitimate child (for male employee, upon the birth of the 1st and 2nd legal child only) Emergencies such as fire or flood affecting the person or property of the employee

b. Nature of compassionate leave advance First marriage

-

two (2) days – to be applied in

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16.

17.

15.2

For compenssionate leave under sub-clause a, you must endeavour to obtain our consent in advance of the compassionate leave or as soon as possible and must do so no later than the beginning of the working day on which the compassionate leave is required.

15.3

You may be requested to produce evidence to support any application for such leave. False evidence will result in the days of absence being deducted from your salary and we will take disciplinary action against you.

15.4

All applications for Compassionate Leave are to be submitted vide our standard leave application form. However, where prior application is not possible, you shall complete the form upon your return to work.

Company’s Rules and Regulations 16.1

You shall at all times observe perform and be subject to and/or be bound by all and every term and condition of service, rules, regulations or benefit conferred or stipulated for the time being by us irrespective of whether the said terms, conditions of service, rules, regulations or benefit are set out in one single document, or in various notes, memorandum or circulars from time to time issued by us and applicable to all or a specified category of members and staff of the Company.

16.2

If you are required to wear uniforms prescribed by us in accordance with Company policy, such uniforms shall be issued to you annually; however, you shall be required to lodge a security deposit of fifty percent (50%) of the cost of such uniforms with us until you have completed three (3) years' continuous service.

Confidentiality 17.1You are aware that in the course of your employment with us you will have access to and be entrusted with information in respect of the business and financing of the Company and its dealings, transactions and affairs and likewise in relation to its holding, subsidiary and/or associated companies and/or the subsidiary and/or associated compaies of its holding company (“Related Companies”) all of which information is or may be confidential. 17.2You shall not during or after the period of your employment with the Company, except in the proper course of your duty, divulge to any person whatever or otherwise make use of and shall use your best endeavours to prevent the publication or disclosure of any trade secrets or secret processess or any confidential information concerning the business or finances or any dealings, transactions or affairs of the Company and/or its Related Companies and/or any or its or their suppliers, agents, distributors or customers. 17.3

All notes and memoranda of any trade secrets or confidential information concerning the Company and/or its Related Companies and/or any of its or their suppliers, agents, distributors or customers which shall be acquired, received or made by you during your course of employment with the Company shall be the property of the Company and shall be surrendered

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by you to someone duly authorised in that behalf at the termination of your employment or at the request of the Board of Directors of the Company at any time during the course of your employment. 18.

Vesting of Property If at any time during your employment, you (whether alone or with any other person or persons) make any invention and/or creation and/or work which relates either directly or indirectly to the business of the Company and/or its Related Companies, you shall promptly disclose to the Company full details, including drawings and models, of such inventions and/or creations and/or works and you declare and acknowledge that such inventions and/or creations and/or works shall be the property of the Company.

19.

Directorship You shall not at any time during the continuance of your employment with us be allowed to hold any executive and non-executive directorship in any other business outside the Company, irregardless of whether there is any conflict of interests or not, unless prior written consent has been obtained.

20.

Business Outside Company You shall not during the continuance of your employment either alone or jointly or in the partnership with any other person or persons firm Company or corporation whomsoever directly or indirectly either by yourself or your agent assistant or attorney or either in your own name or otherwise, carry on manage or be in any way concerned engaged or interested in any other duties business or employment irregardless of whether this will result in any conflict of interests or not.

21.

22.

Negligence In Performance Of Work 21.1

You shall carry out your duties and responsibilities with due care and diligence at all times and strictly adhere to the maintenance and operating instructions from the manufacturers, the prevailing operational procedures and regulations of the Company, including ISO, if applicable, all orders and instructions issued by the Directors or Company officers as well as the safety and health procedures of the Company whenever and wherever these are applicable.

21.2

You shall not place at risk any asset of the Company in any way, financially or legally, without prior written authorisation from us. You shall take all measures and precautions to safeguard the Company's assets and interests at all times.

21.3

We reserve the right to recover any financial loss from you through salary deduction or any other means in the event that you fail to exercise due care and diligence in carrying out your duties and responsibilities or if you, through any unauthorised action on your part, or your proven negligence, oversight and carelessness, have caused the Company to suffer any quantifiable financial loss in any way.

Demotion

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Should you fail to satisfactorily discharge the duties and responsibilities of your office and whose conduct or performance is such that we have lost all confidence in your ability to undertake the duties and responsibilities assigned to you, we may exercise our entire discretion to demote you to a lower position than your current post and you shall be paid a salary and benefits apropriate to that lower position. 23.

24.

SOCSO / EPF / Income Tax 23.1

If required under the law, you shall undertake to become a member of the Employees Provident Fund (EPF) and if applicable, a member of SOCSO and you and the Company shall make such statutory contributions to the EPF and SOCSO as may be required under any relevant statute, law, rule or regulation for the time being applicable and in force.

23.2

All statutory contributions to EPF and SOCSO together with all income tax payable based on the scales set by the Inland Revenue Board shall be deducted monthly from your salary under the PAYE Scheme.

Training You may be required to go for training either locally or overseas and in return for such training, we may require you to enter into a Bond of Service for such period of time as may be deemed necessary. Should you breach the aforesaid Bond of Service, we shall be entitled to impose on you, whatever financial penalties as may be stated in the said Bond.

25.

26.

Suspension Pending Domestic Inquiry 25.1

Subject to changes in Industrial Law practices, we may at our discretion, suspend you from your work at half pay for a maximum of two (2) weeks pending the conduct of the Domestic Inquiry.

25.2

If the inquiry does not reveal any misconduct on your part, then we will reimburse to you the full amount of remuneration so withheld.

25.3

If for any reason, the inquiry is not completed within two (2) weeks, we shall exercise our discretion as to whether to permit you to resume your duties or remain on suspension on full pay.

Disciplinary Procedure & Summary Dismissal 26.1

You shall face disciplinary action or dismissal for failing to meet our standards of job performance and conduct (whether during working hours or not) and attendance, or for breach of any of the terms and conditions of employment.

26.2

The following are non-exhaustive examples of the type of offences which

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shall lead to disciplinary action being taken against you:26.2.1

Minor offences : poor job performance involving substandard work, unpunctuality, absenteeism or any minor breach of the Company's regulations;

26.2.2

Serious offences : negligence resulting in minor loss, damage or injury, failure to comply with a specific instruction; irresponsibility in relation to the Company's property, employees, activities or impropriety in relation to your tasks for the Company, whether or not within working hours, which we reasonably consider to be detrimental to or conflicting with the interests of the Company or our agents or managers or is likely to affect your standard of work; repeated breach of Company’s rules and regulations; failure to disclose any of your personal interests which conflicts with your duty as Company employee and that of the Company's agent or the Company's manager or the Company's supplier with which you are engaged, or any breach of confidentiality relating to the Company or the affairs of its agent or manager;

26.2.3

Gross misconduct : negligence resulting in major loss, damage or injury, assault or attempted assault; theft, malicious damage to property; wilful disregard of duties or of instructions relating to the employment; habitual or substantial neglect of duties including habitual absence from work without leave or absence without other reasonable excuse; repeated breach of Company’s rules and regulations; persistent poor performance; your involvement in illegal strike/work to rule; reoccurrence of minor or serious offences above; deliberate and serious breach of confidence relating to the Company's or its agent's or manager's affairs; the use for personal ends of confidential information obtained by you in the course of your employment; falsification of records; alcohol or drug abuse; conduct which violates common decency, or conviction on a criminal charge relevant to your employment.

26.3

If you are dismissed for repeating acts of misconducts under Clause 26.2.1 hereinbefore we may terminate your employment by giving you one month's notice or payment of one month's wages in lieu.

26.4

If you are dismissed for acts of misconducts under Clause 26.2.2 or Clause 26.2.3 hereinbefore or shall be guilty of fraud dishonesty insobriety moral turpitude or any criminal offence, or shall in any way misconduct yourself or incur illness which in the opinion of our approved Medical Practitioner is due to your own misconduct or wilful neglect and renders you unfit for the work assigned to you, or becomes of unsound mind or are otherwise incapable of performing your duties, or shall become bankrupt, or shall be guilty of a breach or non performance of any the convenants and agreements in this letter contained and on your part to be observed and performed, then and in any of such cases we shall be entitled at any time thereafter to terminate your employment by immediate notice in writing

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to you without compensation. 27.

28.

Termination Of Employment (After Confirmation Of Appointment) 27.1

If your employment is for a fixed term and in the event that we wish to renew your employment when it expires, you shall be required to indicate your acceptance/refusal of such renewal through prior written notice in accordance with the period of time set below before the date of expiry of your employment.

27.2

We may at our entire discretion terminate your employment by serving on you two (2) months’ notice or in lieu thereof by paying you two (2) months’ salary.

27.3

You shall also be entitled to serve us at any time two (2) months’ notice in writing to terminate and put an end to your employment, or by paying to us two (2) months’ilkuihgh salary in lieu of notice.

Right To Search We reserve the right to search your office and residence if we have a reasonable cause to believe that certain Company’s documents, materials, properties and equipment are in your possession or if we have reasonable grounds to suspect that you have committed a theft of the Company’s property.

29.

Retirement You shall retire upon attaining the age of fifty-five (55) and the validity of the terms and conditions stated herein shall be deemed to expire on such date.

30.

Requirement To Return Property Of Employer Upon your retirement or termination of employment, you shall be required to return all properties of the Company, which are assigned to you during your employment, failing which, we shall be entitled to recover from you the cost of loss or damage suffered by us. Such properties include but are not limited to all programmes, information and data belonging to the Company, which is installed or stored in the floppy disk(s), CD(s), zip disk(s), computer(s) or laptop(s) assigned to you by us or in your private computer(s) and laptop(s).

31.

Benefits The Company reserves the right to vary, change or revise any of the benefits and personnel policies and procedures from time to time.

32.

Governing Law The provisions herein stated shall be construed according to the laws of Malaysia and both you and the hereby submit to the jurisdiction of the courts of Malaysia.

33.

General

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You are obliged to obey all instructions and orders issued by the Directors, Managers or immediate superiors orally or written in fulfillment of the terms and conditions of this letter. You shall have made a truthful declaration of your personal particulars including academic and professional experience and the details of previous working records to us. 34.

Marginal The marginal notes shall not affect the interpretation hereof.

Kindly signify your acceptance or otherwise of this offer of employment by completing the “Acknowledgement” portion in the duplicate copy of this letter and return such duplicate copy, duly completed and signed, to the undersigned by 20th July 2006. Thank you.

Yours faithfully, SCADEX TECHNOLOGIES SDN BHD

KERRY LO Director

ACKNOWLEDGEMENT

To : Scadex Technologies Sdn Bhd 12-1 Persiaran Jubilee Off Jalan Loke Yew 55200 KUALA LUMPUR

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Attn : Ms Kerry Lo Director Dear Ms.Kerry, RE :

ACCEPTANCE OF OFFER OF EMPLOYMENT AS LINUX ADMINISTRATOR

Your letter dated 30th of June 2006 bearing reference no SDX/HR-12/06 on the above matter refers. I hereby acknowledge my acceptance of the above offer of employment. Thank you.

Yours faithfully,

Thanigaivel Murugan

Date :

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