S.E. ASIA TRADING COMPANY,
INC.
1545 E. Interstate 30
Rockwall, Texas 75087
September 13,
2006
Mr. Charles
Smith
1545 E.
Interstate 30
Rockwall, TX
75087
Re:
S. E. Asia Trading Company,
Inc.’s Line of Credit and Building Lease
Dear. Mr.
Smith:
This letter
agreement (this “Letter Agreement”) shall confirm our
understanding with respect to certain matters in connection with
S.E. Asia Trading Company, Inc.’s (the “Company”)
Revolving Credit Arrangement with Lynn Management, LLC
(“Lynn”) dated January 28, 2004 (“Revolving
Credit”) and Building Lease with Dynacap Holdings Limited LLC
(“Dynacap”) dated November 10, 2004 (“Building
Lease”). As a material condition to the Company’s
performance under the Share Exchange Agreement by and among the
shareholders of Lotus Pharmaceutical International, Inc., a Nevada
corporation on the one hand, and the Company, Thomas Miller, Gary
V. Pilant, and Verle Pilant on the other hand, dated September 6,
2006 (the “Share Exchange”), you, as President of Lynn
and Dynacap, have agreed to the following:
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1.
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Immediately
prior to the date of the close of the Share Exchange
(“Closing Date”), the Revolving Credit and Building
Lease shall terminate and accordingly, all of the Company’s
indebtedness or other obligations to Lynn and Dynacap thereunder
shall be fully paid and discharged in consideration for transfer of
any and all inventory and fixed assets held by S.E. Asia Trading
Company, Inc. immediately prior to the Share Exchange (the
“Inventory”), as well as a cash payment of $9,000 to
Dynacap. Additionally, any and all other obligations of the
Company, its officers, directors, employees, and representatives to
Lynn and Dynacap shall be released and discharged in consideration
for transfer of such Inventory to Lynn and Dynacap
immedi
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