$DELT 2.2 mil float, On September 13, 2014, the directors of Delta Advanced Materials Limited (“Delta”), our wholly-owned Hong Kong subsidiary, approved a resolution for a cash dividends distribution of $35,000,000 to Mr. Yan Hong, Mr. Shen Lei and Mr. Chao Xin (together, the “Dividend Recipients”) in accordance with their respective percentage shareholdings in Delta as follows: (i) $392,000 to Mr. Yan Hong; (ii) $392,000 to Mr. Shen Lei; and (iii) $34,216,000 to Mr. Chao Xin. The dividends have not been paid.



On July 20, 2017, each of the Dividend Recipients executed a Deed Poll and Undertaking to unconditionally and irrevocably waive his right and entitlement to the dividend and undertake not to take any action against Delta in connection therewith The said waivers were accepted and approved by the board of directors of Delta on July 20, 2017.