CAM (CAMG) 8-K Financial Statements and Exhibits

JOINTVENTURECONTRACT Between

ChinaAgricultureMedia Group Co.Ltd.

And

HebeiAgriculturalMeansofProduction Co.,Ltd.

FOR THEESTABLISHMENT OF

ChinaAgriculture(Hebei)MediaCo. Ltd.

March25th,2011

Shijiazhuang (Hebei) Municipality,People’sRepublicof China

TABLEOF CONTENTS

1.DEFINITIONS

2.PARTIESTOTHECONTRACT

3. REPRESENTATIONSANDWARRANTIES OFTHEPARTIES

4. ESTABLISHMENTOFTHEJOINTVENTURECOMPANY

5.PURPOSES,SCOPEOFBUSINESSANDSCALEOFPRODUCTION OFTHEJOINT VENTURECOMPANY

6. TOTAL AMOUNTOFINVESTMENT ANDREGISTEREDCAPITAL

7. RESPONSIBILITIES OFTHEPARTIES

8. OFFICEANDOUTLETSLOCATIONS

9. INTELLECTUAL PROPERTYANDTECHNOLOGYLICENSE

10.PURCHASEOF EQUIPMENT

11.SALES OFADPRODUCTS

12. BOARDOFDIRECTORSANDSUPERVISORS

13.MANAGEMENTORGANIZATION

14.LABORMANAGEMENT

15.ANNUALOPERATIONPLANANDBUDGET

16. TAXATION,THREEFUNDSANDPROFITDISTRIBUTION

17.FINANCEANDACCOUNTING

18. BANKACCOUNTSANDFOREIGN EXCHANGE

19. CONFIDENTIALITYANDNON-COMPETITIONCLAUSE

20.DURATIONANDEXTENSION OF THEJOINT VENTURECOMPANY

21. EARLYTERMINATION

22.LIQUIDATIONANDDISSOLUTION

23.LIABILITY FORBREACH OFCONTRACT

24. INSURANCE

25.FORCEMAJEURE

26.APPLICABLE LAW

27.DISPUTERESOLUTION

28.MISCELLANEOUSSCHEDULES

Schedule1

-Financial ContributionsofPartiesandTermsThereof

Schedule2

-ListofAdProductsof theCompany

Schedule3

- TypicalLDCnetworkconfigurations

PRELIMINARY STATEMENT

THISJOINTVENTURECONTRACT(“Contract”)is enteredin accordancewiththeLaw of the People’s RepublicofChinaonChinese-ForeignEquityJointVenturesandtheRegulationsfortheImplementationofthe Law ofthe People’sRepublicofChinaonChinese-ForeignEquityJointVentures(hereinafter collectivelyreferred toasthe“JointVenture Law”)andotherrelevantandofficiallypromulgated Chineselawsand regulations on thisdayofMarch25th, 2011 byandbetween:

ChinaAgricultureMedia Group Co.Ltd.中农传媒集团有限公司

(hereinafterreferredtoas“PartyA”);AND

HebeiAgriculturalMeansofProductionCo.,Ltd.(hereinafter referredtoas“PartyB”).

PartyA andPartyBherebyagreetoestablishanequityjointventurecompanyatNo.10PinganS.St.,ShijiazhuangMunicipality,HebeiProvince,thePeople’sRepublic of China, or suchlocation asismutually agreedupon,on thebasisof the principlesofequalityandmutualbenefit.

ThePartiesherebyagreeasfollows:

1.DEFINITIONS

Party AandPartyBmayhereinafterbereferredtoindividuallyasa“Party”orcollectivelyasthe

“Parties”.

UnlessthetermsofthisJointVentureContract otherwiseprovide, thefollowingtermsshallhavethemeaningssetforthbelow:

“Company” shallmeanChinaAgriculture (Hebei) MediaCo.Ltd.,(中农(河北)传媒有限公司).the equity jointventure company establishedbythePartiespursuant totheJointVentureLaw, other relevant andofficiallypromulgated lawsandregulationsofthePRC,andthis Contract.Thisnameshallbe subjectto requisite approval fromgovernment authorities.

“ProjectCompany” shallmeaneachsubsidiaryoftheCompany,asestablishedfromtimeto time,toact as aholding companyfor approximately3,000AdProductlocations inHebeiProvince. TheParties intendtoestablishatotalof18,000AdProductlocationsinHebeiProvinceresultinginthecreationof approximatelysix(6)ProjectCompanies.

“Affiliate”,withrespecttoaParty,shallmeananycorporation,partnership,joint ventureorotherentitycontrolling,controlledbyorunder commoncontrolwithsuchParty,but shallnot include theCompanyorProjectCompany.

“Assist”or“Assistance”shallmean,respectively,toactivelyand aggressively-support andimplement,or theactiveandaggressivesupportand implementationof,an activityor application with full intentand commitmenttoobtain the resultssoughtby thePartyor theCompanyorProject Company which isbeing assisted.

“Board”or“BoardofDirectors”shallmean theBoardofDirectorsoftheCompany.

“Building” shallmeanfairuseofno less than150 squaremeters, thatis leasedto theCompany with assistance byPartyBandthatis locatedwithinShijiazhuangMunicipality,HebeiProvince.

“BusinessLicense”shallmeanthebusinesslicense tobeissuedtotheCompany orProjectCompanyby theShijiazhuang Industrial &CommercialAdministration Bureau.

“Chairman”shallmean thechairmanoftheBoardofDirectorsoftheCompany.“China”orthe“PRC”shallmeanthePeople’sRepublic ofChina.

“ConfidentialInformation”shall mean technologyandknow-howaswellastradesecrets,strategicbusiness or marketing information,businessprojections,secretprocessesandotherprocesses,data, formulae,programs,manuals,designs,sketches,photographs,plans,drawings,specifications,reports, studies,findings,non-patentedinventionsandideas, and otherinformationrelatingtotheproduction,packaging,use,pricing,or sales anddistribution,whetherof a technical,engineering,operational,businessoreconomicnature,wheneverdesignated as“Confidential”byPartyAor Party B ortheirAffiliatesandprovidedby PartyA, PartyBor theirAffiliatesinconnection withtheestablishment of theJointVentureCompanyor ProjectCompanyandanymattersrelatedthereto,theimplementationof and/ortheconductof the businesscontemplatedbythisContractandtheothercontractscontemplatedherein.ConfidentialInformation,however,shallnotincludeinformationwhich isnoworhereafterbecomespartof thepublicdomain through authorizedpublication, information which the receivingPartycandemonstratewasinitspossessionatthetimeofreceipt,andinformation whichhereafter comes into thepossessionof the receivingPartyAnd wasor isnot acquiredby the receivingPartydirectlyor indirectlyfromtheprovidingPartyorsourcesunder anobligationof secrecytosuchprovidingParty.

“Contract”shallmean thisJointVentureContract.“Director”shallmean amemberoftheBoardofDirectors.

“EffectiveDate” shallmean thedayonwhichthisContracthasbeenapprovedby the Examination and

ApprovalAuthority.

“EstablishmentDate”shallmeanthedateon whichtheBusinessLicenseof theCompanyisissued.“Examination andApprovalAuthority” shallmean the relevant Chinese authority inShijiazhuang as is

dulyauthorizedbylawtoapprovethisContract.

“Event ofForce Majeure”shallmean“acts ofGod,”includingbutnotlimitedto,flood,tornado,earthquake,storm,lightningor fire.ForceMajeureshallalsoincludelabor strikes,or walkouts, war,riot, civildisturbance,sabotage, whichby theexerciseofduediligence and foresightcouldnotreasonably

havebeenavoided,andwhichpreventstotalorpartialperformance or apaymentobligationunderthis ContractbysuchParty. EventsofForceMajeure shall specifically EXCLUDEgovernment actionsorevents,and thePartiesheretorecognizethatgovernmentaction shallnotfallwithinthedefinitionofan EventofForceMajeure.

“ForeignExchange”shallmeananyforeigncurrencyexceptRMBwhichcanbefreelyexchanged, converted,ortraded intheopen international currencymarket.

“InitialContributionDate”shallmean the mutuallyconvenientdatedeterminedbythe Partiesin accordancewiththis Contracton whichthe Partiesshallsimultaneouslycontributeinfulltheir respective initialcontributionsand contractualcommitmentstotheregistered capitalof theCompanyin theamountssetforth inSchedule1hereof.

“Insurance”shallmeantoguaranteeagainst lossorharm,tosecureindemnityonincaseofloss,damage,ordestructionortoissueorprocurean insurancepolicyonorfor.

“JointVenture Term” shallmean thedurationoftheCompany asprovided forinArticle20hereof inthis Contract.

“LCDDisplay”shallmeanLiquidCrystalDisplaysandnetworkcommunicationdevicesusedfordistributionofAdProductsandadvertisingmediaincludinganyconnectiondevicesandpower andnetworkcables.Typicalconfigurationsare describedinSchedule 3.

“Management Personnel”shallmeantheGeneralManager, DeputyGeneralManagerandsuchother seniorpersonnelpositionsoftheCompanythataredesignatedasManagement Personnelpositionsby theBoard fromtimetotime.

“ProductofJointVentureCompany”or “AdvertisingMedia” shall mean advertisingmediadistributedto anyofthe18,000agriculturallocationsinHebeiProvincedescribedinSchedule 2hereto,assuch schedulemay beamendedormodifiedbytheBoard fromtimetotime.

“Renminbi”or“RMB”shallmeanthelawful currency of thePRC.

“ThreeFunds”shallmean,collectively,theCompany’sreservefund,bonusandwelfarefundandenterpriseexpansion fund.

“UnitedStatesDollars”or“US$”shallmean thelawfulcurrencyoftheUnitedStates ofAmerica.“WorkingPersonnel”shallmean allemployees and staffoftheJoinVentureCompanyotherthanSenior

ManagementPersonnelandmembersoftheBoard.

2.PARTIESTOTHECONTRACT

TheParties tothisContractareasfollows:

(a) ChinaAgricultureMedia GroupCo.Ltd., (中农传媒集团有限公司) a company registered with theCompanies Registryof TheGovernmentofHongKongSpecialAdministrative Region

of thePeople’sRepublicof China and with its legal address atB2,1708NanFungTower,173 Des

VoeuxRoadC, HongKongSARofChina.

ThelegalrepresentativeofPartyA is:Name: Weiheng CaiPosition:PresidentNationality:American

(b)HebeiAgriculturalMeansofProductionCo.,Ltd., a company registered with theShijiazhuangIndustrial&CommercialAdministrationBureauandwith itslegal addressatNo.10PinganS.St.,ShijiazhuangMunicipality,HebeiProvince,thePeople’sRepublicof China.

ThelegalrepresentativeofPartyB is:

Name: ChenLiJun

Position:President

Nationality:People’sRepublicof China

3. REPRESENTATIONSANDWARRANTIES OFTHEPARTIES

3.1 Representationsand WarrantiesofPartyA

PartyAherebyrepresentsand warrantstoPartyB asfollows:

(a) Party A is a companydulyorganized andvalidlyexistingunder the lawsofHongKong and is in compliance with allconditions required tomaintain itsstatus as anenterpriselegalpersonunder thelawsofHongKong.

(b) Party AshallworktogetherwithParty B toprovide allthelegalpaperworknecessarytoformtheCompanyorProjectCompany.

3.2 Representationsand WarrantiesofPartyB

PartyBherebyrepresentsand warrantstoPartyAasfollows:

(a) Party B is acompanydulyorganized andvalidlyexistingunder the lawsof thePRCandisincompliancewithallconditionsrequiredtomaintainitsstatusasanenterpriselegalpersonunder thelawsofthePRC.

(b) Party Bshall worktogetherwithParty Atoprovide allthelegalpaperworknecessarytoformtheCompany orProjectCompany.

4. ESTABLISHMENTOFTHEJOINTVENTURECOMPANY

4.1 Establishmentof theJointVentureCompany

Inaccordancewiththe Lawof the People’s Republic ofChinaonChinese-ForeignEquityJointVenturesandotherrelevantandofficiallypromulgatedPRClawsandregulations,thePartieshereby agreetoestablishtheJointVentureCompanypursuanttotheterms of this Contract.TheJointVentureCompanyshallbealegalrepresentativeunderthelaws ofthePRC subjecttotheprotection and jurisdictionofPRClaw.

4.2NameandAddressoftheJointVentureCompany

(a) Thenameof theJointVenture Company shallbe“ChinaAgriculture (Hebei)MediaCo.Ltd.”inEnglishand中农(河北)传媒有限公司 in Chinese.

(b) The legal addressof the Company shallbeNo.10PinganS.St.,Shijiazhuang

Municipality,HebeiProvince,the People’sRepublic ofChina.

4.3 Change ofName.

Thetrandename“ChinaAgricultureMedia”（中农传媒）oftheJointVentureCompanybelongstoPartyA.TheJointVentureCompanyorProject Company shallimmediately change itsname

by removing there fromthe tradename“ChinaAgricultureMedia” (中农传媒)or withoutreplacingit

withanysimilartradenames,wordsorexpressionswhenthisContract ortheCompany orProject Companyisterminated.Ifasaresult ofanychangeinthelawsorregulationsof China,(i)PartyA’sparticipation intheregisteredcapitalof theCompanyorProjectCompanyat anytimeduringtheexistence of thisContractfallsbelowfiftypercent(50%); or (ii)PartyA’srepresentativesnolongerhave thepowerto appoint amajorityof theBoardofDirectorsof theCompanyorProjectCompany, thenParty Ahas the righttodecide whether withdraw itsname from theCompanyorProjectCompanyornot. WithoutParty B’sprior consent,Party Bundertakesnot to continueor takeover the Companyor

ProjectCompany’sbusinessusing the tradename“ChinaAgricultureMedia”(中农传媒)or any similar

wordsorexpressions.

4.4LimitedLiabilityCompany

TheJointVentureCompany shallbe a limited liabilitycompany. The liabilityofeachof thePartiesforthe obligations, liabilities,debtsand lossesof theCompanyshallbelimitedtothat Party’sobligationtomake itsrespectivecontribution andcontractualcommitmentsto theregisteredcapital of theCompanywithintheperiodrequiredbyChinese law.Unlessithasagreed otherwiseinaseparate agreement withathirdparty,aPartyshallnotbe liableforany obligationsorliabilitiesoftheJointVentureCompanyorProjectCompany.AnyParty shallnotbe requiredtoprovide any further fundstooronbehalfof the CompanyorProjectCompanybeyond the amountcontributedby thePartyunder thisContractandpursuant tothecontractualcommitmentssetforth inSchedule1.

4.5ProfitsandLosses

The Partiesshall sharetheprofits,lossesandrisks of theCompanyinproportiontoand,in the eventoflosses,totheextentoftheirrespectivecontributions andcontractual commitmentstothe registered capitaloftheCompany.

4.6NoAgencyRelationship

Neither Partyistheagentoftheother Partynordoeseither PartyhaveanypowertobindtheotherPartyortoassumeorto create anyobligationof responsibility,expressorimplied,onbehalfof theotherPartyintheotherParty’sname.NeitherthisContractnorany ofthe othercontracts contemplatedherein shallbe construed asconstitutingParty A andParty B aspartnersoras creating anyotherformoflegalassociationwhichwouldimpose liabilityupon oneParty forthe actorfailureto actof the other.

4.7 OtherContracts

(i)theJointVentureCompanyorProject CompanyandPartyBshallduly execute theSales Contract;and(ii)theCompany orProjectCompany,PartyAandPartyB shalldulyexecutethe TechnologyLicenseContract,TheLCDDisplay Supply AgreementandNon-CompetitionAgreement.

4.8 BranchesandSubsidiaries

TheJointVentureCompanyorProjectCompanymayestablishbranchofficesand/or subsidiaries in thePRCupon the approvalof the BoardofDirectors and, ifnecessary, the Examination andApprovalAuthorityand therelevant localgovernment departments.

5.PURPOSES,SCOPEOFBUSINESSANDSCALEOFPRODUCTION OFTHECOMPANY

5.1PurposesandScopeofthe business oftheJointVentureCompany

ThepurposeandscopeofbusinessoftheJointVentureCompanyshallbetoestablish,develop andmaintainan advertisingnetworkof Liquid Crystal Displayscovering approximately18,000 agricultural storefrontlocationsinHebeiProvince(the“AdProducts’)andother marketingproducts,to sellanddistributetheAdProductsinChinesedomesticandinternationalmarkets,andtocarry outanyotheractivitiesnecessaryto accomplishtheforegoing.Scopeofbusinessshallbebaseonthe registration in industrial and commercialbureau.

5.2 EstimatedScaleofProduction

Theestimatedscaleofproductionisassetforthintheprojectanalysisofagriculturalmedia,aspresentedinSchedule.TheinitialAdProductsandmedianetworkshallbeinstalledat 3,000locations arrangedbyParty B andbeexpandedbyto18,000 locations arrangedbyParty B inHebeiProvince within24monthsof operation.Basedonthecurrentinvestmentandrolloutof3,000locationstheProjectCompanyprojectsrevenues of45,884,880RMBperannumbutinnoeventshallannualrevenuesornetprofitofthe ProjectCompanyfallbelow40,000,000RMB or20,000,000RMBrespectivelyasset forth in theSalesContract.

6. TOTAL AMOUNTOFINVESTMENT ANDREGISTEREDCAPITAL

6.1 TotalAmountof Investment

The totalamountof investmentof theJointVentureCompany shallbe US$50,000,000 (Fifty

Million UnitedStatesDollars).

6.2 Registered Capital

TheregisteredcapitaloftheJointVentureCompanyshallbeRMB1,000,000(OneMillion

RenMinBi)and shallbecontributedbythePartiesinthefollowing proportions:

(a)PartyA’s aggregate contributionto the registered capitalof theCompany shallbeRMB1,000,000(One Million RenMinBi)representingsixtypercent(60%) of thetotal registeredcapitaloftheCompany,andshallbecontributedbyRMBorUSDollarsremittanceequivalenttotheamountmarked in USDollars.

(b)Party B shallnotcontribute to the registered capitalof theCompanybut they shallberequiredtoenterinto theSalesContractwiththeCompanyandeachProjectCompany wherebytheyshallagree topurchasenolessthan1,314,000seconds(“Seconds”)ofAdProductspermonth,fromeachProjectCompanyatapriceof2.54RMBpersecond.Simultaneousto thesaleoftheSecondseachmonth, PartyBshallalsoissueanexclusiveoption to eachProjectCompany (“Monthly Option”)to repurchase theSecondsat thepriceof2.54

RMBpersecond withoutgrossupor tax. TheMonthlyOptionshallbeexercisableatthesolediscretionoftheProjectCompany. Inconsiderationofthiscommitment, PartyBshallreceivean interestrepresentingfortypercent(40%) of thetotal registeredcapitaloftheCompanyasset forth inSchedule 1.

6.3 Timingof CapitalContributions

ContributionstotheregisteredcapitaloftheCompanyshallbemadebythePartiesin accordance withSchedule1;provided,however, thatSchedule 1maybe adjustedby theunanimousvoteoftheBoard inlightof actualconditionsconsistentwiththerequirementsofrelevantregulations.However, any adjustmentof theContributions willbe subjectto the final approvalof the Examination andApprovalAuthority.

7. RESPONSIBILITIES OFTHEPARTIES

7.1 ResponsibilitiesofParty A:

Amongitsresponsibilitiesunder thisContract,PartyAshall:

(a)Make itscontributionsto the registered capitaloftheCompany inaccordance with therelevantprovisions ofthisContract;

(b) Enter into,or cause itsAffiliatestoenter into, suchcontracts as isnecessaryfor the establishmentof theCompanyorProjectCompany;

(c)Assist theCompanyorProject Company, in acquiring an export license andotherproceduresfortheimportoftechnologyfromKorea,theUnitedStates,Japanandothercountriespursuant to the TechnologyLicenseContract and the importof themachinery and equipment, which shallbesoldbyPartyBtotheCompanyorProjectCompany;

(d) RecommendandassistintherecruitmentofsuitableChinesemanagementpersonnel,technicalpersonnelandothernecessarystaff andworkerstobeemployedby theCompanyorProjectCompany;

(e)PurchaseLiquid CrystalDisplays andcommunicationequipmentfor the18,000 locationsinHebeiProvinceonbehalfoftheCompanyorProjectCompany;

(f)HelptheJointVenture toacquireor adopt advancedvariouscompanymanagementand controllingprocess (includingsoftware) whichwouldreasonablybenefittheJointVenturein thelong run,provided thatthecostsshallbeborne bytheJointVenture;

(g)AssisttheCompany orProjectCompanytofindothercustomersforitsproducts; (h)Purchase latest technologyorupdated informationfor the CompanyorProject

Company;assisttheCompanyorProjectCompanytodevelopnewproducts.

(i) Assist withothermatters entrusted to itby theCompanyorProjectCompany and asagreed fromtimetotimebyPartyA.

7.2 ResponsibilitiesofPartyB:

Amongitsresponsibilitiesunder thisContract,PartyBshall:

(a) Enter intotheSales Contract inexchangeforregisteredcapitalof theCompany in accordancewith therelevantprovisionsof thisContractandSchedule1;

(b) Enter into,or cause itsAffiliatestoenter into, suchcontracts as isnecessaryfor the establishmentof theCompanyorProjectCompany;

(c)Maintain and Insure theAdProducts and introduce current technology to the Companyor ProjectCompanyandupdateitconsistently.AssisttheCompanyorProjectCompanyindevelopmentofnewproducts.

(d)Assist theCompanyorProjectCompany inobtaining the Chinese taxpreferences, exemptionsandotherpreferential taxtreatment available toorfor the CompanyorProjectCompany;

(e)AssisttheCompanyorProjectCompanyinobtainingthe CertificateofApproval, BusinessLicense when settingup andotherpermissionproviding for a termofvalidity and scopeofbusinessacceptabletobothParties;

(f)Assist theCompanyorProject Company, ifrequested, inhandling all licenses, approvalsandregistrations fortheimportationoftechnologyinaccordancewiththetermssetforthin theTechnologyLicenseContract;

(g)AssisttheCompanyorProjectCompany,if requested,inmaking importcustomsdeclarations, obtainingrelevantimportlicenses,approvals andexemptions fromcustomsduties and taxesfor anymachineryandequipmentto besoldtotheCompanyorProjectCompany;

(h) RecommendandassistintherecruitmentofsuitableChinesemanagementpersonnel,technicalpersonnelandothernecessarystaff andworkerstobeemployedby theCompanyorProjectCompany;

(i)Provide assistancetoforeign workers and staff inobtainingentryvisas, work licenses,andotherneedsfor theirstayand travel inthe PRC;

(j)Assist theCompanyorProjectCompanyto findother customersfor itsproducts; (k)AssisttheCompanyorProjectCompanytoobtainPRCgovernment’srecognition

asHI-TECHenterpriseor Encouragedenterprise,ifpossible;and

(l)Assist the CompanyorProjectCompany in installation andestablishmentof theAdProductnetwork at3,000HebeiProvinceAdProductnetworklocations within the first12months and18,000HubeiProvinceAdProductnetworklocations within24months.ActinaccordancewithandpursuanttotheSalesContract.

(m)Providefull assistanceand supporttoPartyAbyanymeansreasonablyavailable to PartyB,for thenationaldevelopmentandestablishment of approximately 400,000AdProductlocations atPartyB’sstorelocationsoutsideofHubeiProvince.

(n)Handleothermattersentrustedto itby theCompanyorProject Company and asagreed fromtimetotimebyPartyB.

7.3 ExpensesNotReimbursable

Exceptasotherwiseexpresslyprovidedfor inthisContract,expensesincurredbyeitherParty in fulfillingtheaforesaidresponsibilities andotherfinancialexpensesincurredbythePartiesonbehalfof theCompanyorProjectCompanyshallbebornebytheCompanyonlyuponapprovaloftheBoard.

7.4Standards of BusinessandEthicalConduct.

ThePartiesshallcausetheCompanyorProjectCompanytoadoptandcomplywithstandardsof conductandbusinesspracticesinconformitywith thelawsand regulationsofthePRC.

8. BUILDINGANDNETWORKLOCATIONS

8.1LeaseofBuilding

PartyBshall assisttheCompany orProjectCompanyinleasing theBuildingfortheJointVenture andestablishing theAdProductnetworkatapproximately18,000locations.

8.2 EnvironmentalMatters

(a)Party B represents and warrants that asof thedateof thisContract: (i) theAdNetworklocationsarein fullcompliancewith allrelevantlaws,regulationsandrulesrelatedto,andwith allrequirementsof relevantPRCgovernment authorities for,landadministration, environmentalprotection,waterandsoil conservation,constructionstandards,firepreventionand workersafetyineffect asofthedatethereofandarefree fromany environmentalliabilitiestoandclaimsfrombothgovernmentandnon-,governmentparties.Any expensesarisingout ofor relatedtonon-compliance of such requirementsshallbe bornebyParty B.

Party Apromisesandguarantees:Anyexpensesarisingoutoforrelatedtothe radiationproblemwhile installingorusing theAdProductsshallbebornebyPartyA.

8.3 Utilities

PartyBshall assisttheCompany orProjectCompanyinprovidingallutilitiesrequiredbythe Company or ProjectCompany,includingelectricity,networkcommunicationbandwidth,andother specifiedutilities.

9. INTELLECTUAL PROPERTYAND LICENSINGOF TECHNOLOGY

9.1 Intellectualproperty,know-howorprocessesofPartyAshallremainthesoleand exclusivepropertyofPartyA.Anyintellectualproperty,know-howanddrawingsorupgradescreatedby theCompanyorProjectCompanyrelatingtoAdProducttechnologywillbelongtoandbeassignedtoPartyA.Anytechnologyrelating toimprovementofnetworkperformancewillbelongtoPartyA.

9.2 IntellectualpropertycontributedbyPartyB,ifany,remainsthesoleandexclusivepropertyofPartyB.

9.3 Intellectualproperty orknow-how ofPartyAorprocesses ownedby PartyAcanNOTbe improveduponorreproducedorusedbyPartyBorany ofitsAffiliatesorotherpartners.

9.4 TechnologyLicenseContract

Party Ashallgrantorcause itsrelevantAffiliatetogranttotheCompanyorProjectCompanyanon-exclusiveandnon-assignablerightandlicensetouseand exploit certaintechnologyand know-how forthemanufacture,use andsaleoftheAdProductspursuanttotheterms andconditionsofthe TechnologyLicenseContract.

10.PURCHASEOF EQUIPMENT

TheCompanyorProjectCompany willpurchasemachinery andequipment from supplierson abestvaluebasis.Thesourcesofpurchasing the equipmentandmachineryshouldbedeterminedbytheunanimous agreementoftheBoardofDirectors. TheLCD DisplaySupplyAgreementshallbeexecuted within thirty(30)daysaftertheestablishmentoftheCompany.

11.SALES OFADPRODUCTS

The saleofAdProductsshallbedeterminedby theSalesContract andhandledby the CompanyorProjectCompanyitselfand/orthroughother salesorganizationstobedeterminedbytheGeneralManager. Prices ofAdProductsforsaleshallbedeterminedbythisContract,theSalesContractandthe GeneralManageroftheCompanyinaccordance withplansandpoliciesapprovedbytheBoardand subjecttoSection6.2(b)above.

BothpartiesagreethattheCompanyorProjectCompanymaysellitsproductstobothPartiesataprice agreedbyBoardofDirectorsfromtimetotime,subjecttoSection6.2(b)above.

12. BOARDOFDIRECTORSANDSUPERVISORS

12.1 Establishment

TheBoardofDirectors oftheCompanyshallbe establishedbythe Parties andshallholdits firstmeeting withinthirty(30)daysof theEstablishmentDate.

12.2 Composition andTerm

TheBoardofDirectorsshallbecomposedof five(5)Directors,of whomtwo(2) shallbe appointedbyPartyBandthree(3)byPartyA.UnlessthePartiesotherwiseagreeinwriting,the ChairmanshallbeappointedbyParty AandtheViceChairmanbyPartyB.Each individual serving inthe capacityof Director,ChairmanorViceChairmanshallholdofficeforatermoffour(4) years,andeach shallbeeligible for consecutivetermsofofficeupon reappointmentby theoriginal appointingParty.AnyvacancycreatedintheBoardofDirectorsshallbe filledbythePartywhichoriginally appointedthe absentDirectorcausingthevacancy.AnyPartymay at anytimeremoveforanyreasonanyorall ofthe individualsappointedbysuchPartyasa Directorandappointinlieuthereofanotherindividualor individualstoservetheremainderof therelevantterm(s).

12.3LegalRepresentative

TheChairmanof theBoard shallbethelegalrepresentative of theCompany orProjectCompany andshallact onlyin accordancewith thespecificdecisions,resolutionsandinstructions oftheBoardofDirectors. WhenevertheChairmanisunabletodischargehisduties,heshallauthorizetheVice Chairmanor anotherDirectortorepresenttheCompanyorProjectCompanyandexecutehisrights.

12.4Authority

TheBoardofDirectorsshallbethehighest authorityoftheCompanyorProjectCompanyand shallmakedecisionson allmajor andimportantmattersof theCompanyorProjectCompany. The rulesofproceduregoverningtheBoardofDirectorsanditspowersandresponsibilitiesareassetforthinthis Contractand the ArticlesofAssociation.

12.5PersonalLiabilityofDirectors

ADirector,including theChairman andViceChairman,shallnothavepersonalliabilityforactionheundertakesonbehalfoftheCompany orProjectCompanywithinthescopeofauthorityofthis Contract,the ArticlesofAssociationor theBoard resolutionsunlesshisorheraction:

(a) isoutsidethescopeofthe approvalorauthorizationgiventohimby this

Contractor theBoardofDirectors’resolution;or

(b) is inbreachofArticles147to153oftheCompany LawofPRC;or

(c) is inbreachof thelawsandregulationsofthePRCatthetime.

AnyDirector,includingthe ChairmanandViceChairman,actingin violationof thisContractorBoardofDirector’sresolutionsshallindemnify andholdharmless theCompanyorProjectCompanyagainst all lossescausedtoorliabilitiesand expensesincurredby theCompanyor Project Company.TheCompany shall,to theextentpermittedby law, indemnify anyDirector fordamagesorlosses incurred ingood faithbysuchDirector in theperformanceofhisorherobligations.

12.6 Boardvoting

Resolutions oftheboardofdirectorsshallbeadoptedbyamajorityvote(whetherpresentinpersonorbyproxy)atadulyconvenedmeeting.Howeverthefollowing actions,becauseoftheirpotentially substantial andmaterialimpacton the interests and investmentsof the stockholdersmaynotbetakenwithoutatleastonerepresentativefrompartyAand onerepresentativeofpartyBbeing recorded in themajorityvote.

(a)Amendmentof articlesofassociation

(b) Increase, reductionor assignmentofregistered capital and the adjustmentofeachparty’sshareof interestin theregistered capitalof theCompany.

(c)Mergeror consolidationof the CompanyorProject Company with anyothereconomicorganizationor reorganizationoftheCompany;and,extension,termination, liquidation,ordissolutionof theCompanyorProjectCompany.

(d)Approvalof any change in the scopeof thebusinessof theCompanyorProject

Company,outsidethenormalcourseofbusiness.

(e) Transfer, sale, lease,orothermannerofdispositionof thebusinessor assetsof theCompanyorProjectCompany, in wholeor inpart, the acquisitionofbusinessesor assetsof anyothercompanyorentityorthemakingofinvestments that isnotexpected tobeundertakenin theordinarycourse ofbusiness.

(f) Thepartnersexpect thatprofits willbe retainedby theJVtogrow thebusiness;howeverfor anydeclarationofdividends inexcessof50%ofprioryear’searnings themajorityvotemustincludeonerepresentativefromeachofparty AandpartyB.

(g)Determinationoftheamountsto beallocatedtoeachof theThreefunds

(h)Pledgeor encumber theassetsof the corporation (i.e. thegrantingofsecurity interestoftheCompanyorProjectCompany)

(i)Approveorimplement capitalexpenditures whicharenotprovided for in the annualbusinessplanorexceedby25%thecapitalexpenditurebudgetof theannualbusinessplan.

(j) Thepartners agree thattheboard willmanage theoperatingbudgetof the annualbusinessplanoftheCompanyor ProjectCompany,and implementrevisionsastheymayoccur fromtimetotime.However, ifanysuch revision resultsare outsidethe ordinarycourse ofbusiness, asdefinedbyinavariationbymorethan35%ofoperatingprofitormorethan$500,000 ofreducedcash flowthen themajorityshall include onerepresentativefromeachofpartyAandB.

(k) ChangelegalcounselrepresentingtheCompanyorProjectCompany;or,to appoint or changetheindependentauditorof theCompanyorProjectCompany. Toadoptorimplement amaterial changein theaccountingproceduresorprinciples oftheCompanyorProjectCompany.

(l)Selectionof insurersandthedeterminationofinsurancecoverageandpremium amountsfor theCompanyorProjectCompany

12.7 BoardMeetings

Theregularmeetingof theBoardofDirectorsshallbeheldatleasttwiceayear.Meetings ofthe Boardof Directorsshallnormallybeheld attheregisteredaddress oftheCompany,but maybeheldat anyotherplaceasmaybejointlyselectedbytheChairman andViceChairman.

12.8 InterimBoardMeeting

Withinthree (3)days after the receiptof theproposalby at least twoDirectors requesting that aninterimBoardmeetingbeheld, eithertheChairman, orinhisabsenceorfailuretoact,theVice Chairman,of theBoard shall send writtennoticecalling an interimBoardmeeting.

12.9Noticeof Meetings

TheChairman, orinhisabsenceorfailureto act,theViceChairman,shallsend writtennoticeat leastfourteen(14)dayspriortoanyBoardmeeting statingthespecificagenda,timeandplaceofthemeeting.SuchnoticemaybewaivedbytheunanimousconsentofallDirectors attendingthemeetinginpersonorbyproxy. ABoardmeetingshallbeconvenednotlessthanfourteen (14)days ormorethan twenty-eight(28)daysfromthedateofthenotice.

12.10Attendance

ADirector mayattendaBoardmeetinginperson,byconferencetelephoneordesignate anotherpersonbyproxy andvote inhisplace.Suchdesignation shallbe in writing withdesignated rights, shallbe signedbytheDirector, and shall identify themeetingormeetings at which thepersonmayactasaproxyandanyinstructionsthatmaybeapplicabletotheproxy.ADirectormayappoint anotherDirectorashisproxy. Apersonactingasaproxy maydosoformorethanone Director.Thequorum foraBoardmeeting shallconsistofatleastthree(3)Directorsorproxies authorizedbytheDirector.However,nopartycouldhold aBoardmeeting withoutanotherparty’spermission.

12.11Voting

TheDirectors mayvoteonanymatterseitherbyattendingmeetingsinperson,bytelephonic conferenceorbyproxy.EachDirector shallhaveonevote.

12.12 WrittenConsent

TheBoardofDirectorsmayconduct anybusiness andmakedecisions andtake actions that couldhavebeenotherwisedulytakenpursuantto aBoardmeetingby meansof aunanimouswritten consentin lieuof ameeting.

12.13 Compensation and Expenses

TheCompany orProjectCompanyshallnotpayanyfee,remunerationor subsidytoanyDirector forattendanceataBoardmeeting.TheCompanyorProjectCompanymayreimburse aDirectorfor reasonable expenses incurredinrespect of traveling,accommodationsandotherlivingexpensesto attendBoardmeetingsiftheBoardofDirectorsagreetodoso.

12.14Minutes

MinutesshallbekeptforeachBoardmeeting and signedby allDirectorspresent attheBoardmeetinginpersonorbyproxy.Inorderto facilitatethesmoothconductofBoardmeetings,the Chairmanshallappoint adesigneefor thepurpose oftheBoardmeeting.Thedutiesofsuchdesignee shallbetotakedetailedminutesof theBoardmeeting,procure theproper signaturesfor the adoptionof suchminutes, translateor arrange for the translationofdocuments anddispatchdocuments relating to theBoardmeeting to theDirectors.MinutesoftheBoardmeetingshallbemaintainedinboth Chinese and English.Copiesof theminutes inbothChinese and English languages shallbesenttoParty A andParty Battheaddressessetforth inthisAgreement.

12.15SecretaryofBoardofDirectors

Asecretary ofBoardofDirectorswillbeappointedbytheChairmanoftheCompany.Hisorhers responsibilityis asfollowing:

(h) convoketheBoardmeeting

(ii) recordtheBoardmeeting

(iii)prepareandnoticetheBoardmeeting

(iv) filethedocumentsofBoardmeeting andmakeitorderly

(v) releaseandcollect documents ofBoardofmeeting

(vi) responsiblefor the CompanyorProject Company’sconfidentialprotection andobeytherelevantregulations oftheCompany

12.16Supervisors

TheCompany shallhavetwo supervisors andnoboardof supervisors willbeestablished. With regard totheappointment andduties ofthesupervisors,thePartiesagreethat:

(a)Party AandParty B shallbeentitledto respectivelyappointone(1) supervisor.AnyDirectororseniormanagementpersonnel shallnotconcurrentlybethesupervisor.

(b) The termofofficeof a supervisor shallbe three(3)years,or suchshorter term aspermissibleinPRClaws andregulations.Asupervisormayserveconsecutiveterms ifhe/sheis reappointed.

(c) Eachof the Partiesshallbeentitled atanytimetoremoveanyperson appointedby itasasupervisorfromhis/her officeandtoappointanyotherperson tocompletethe remainderoftheterm ofoffice oftheremovedsupervisor.Theappointment orremovalofa supervisorbyanyParty shallbeinwritingandshalltakeeffectuponsubmissiontotheBoard ofDirectors.Suchremoval shallbereportedtothe originalexaminationandapprovalauthorityfor therecord.

(d) If thereoccurs any retirement, removal,resignation, illness,disabilityordeathofasupervisor,the Partywhichoriginallyappointed suchsupervisorshallappointasuccessortoserveouttheremainderof suchsupervisor’stermofoffice.Such appointmentshallbereportedtotheoriginalexaminationand approvalauthorityfor therecord.

(e) Two supervisors shallhold at leastonemeetingeachyear andeither supervisormay proposeforan interimmeeting.

(f) The supervisors shall exercise theirpowers andduties in accordance withPRC CompanyLawandArticlesofAssociationandinagood-faithanda reasonablemanner.Theexerciseof anypowerorduty shallbesubjecttothepriorwritten consentbyboth supervisors. Ifeither supervisor exercises anypowerorduty without theprior written consentbyboth supervisors,or the exerciseof anypowerorduty affects thenormaloperationofJointVenture,or cause adverse resultor lossupon theJointVenture, the supervisor and thepartywho appoints such supervisor shall jointlybear the liabilitytotheJointVenture,moreover,thePartywhoappointssuchsupervisorshallimmediately replacethesupervisor.

(g) TheJointVenture shallnotpay anyfee,remunerationor subsidiesto any supervisor,unlessapproved in advance bytheunanimousagreementof theBoardofDirectors.

12.17 The supervisorshave theright andobligationasdefinedby theCorporationLawofthe

People’sRepublicof China.

13.MANAGEMENTORGANIZATION

13.1 Establishment

(a) TheBoard ofDirectorsoftheCompanyshallestablishamanagementorganizationcomprised ofManagementPersonnelwho shallbeinchargeoftheday-to-dayoperations andmanagementof theJointVentureCompany. Themanagementorganization shallbeheadedbyone

(1)General Managerand one(1)DeputyGeneralManager.TheGeneral ManagershallbehiredbytheBoardofDirectors.TheDeputyGeneralManagershallbehiredbytheBoardofDirectorsandshallbeapersonagreeabletotheGeneralManager. TheCompanyshallinitiallyhavethefollowingmanagerialdepartments:productionandtechnology;personneland administration;finance andaccounting;quality assurance,engineer. TheCompany’sinitialManagementPersonnel shallbeasfollows:

(i)one(1)GeneralManager;

Company’smarketing;

(ii)one (1)ViceGeneralManger responsible for theCompanyorProject

will reporttotheCFO.

(iii)one(1) CFO andoneDirectorofFinancialAccountingDepartment that

(iv)one(1)ProjectManagerresponsibleforproductsandpurchasing; (v)one(1)HumanResourcesManager;and

(vii)one(1)EngineerManager;andone(1)qualityassurancemanager. (b) Removalof GeneralManager andViceGeneralManager.

TheBoardofDirectors shallhave the authoritytoremove the GeneralManager andViceGeneral Manageranddepartment managersatanytimeuponmajorityvoteoftheBoardbecause oftheirin-capabilitiesfortheirpositionsorderelictionofduties. IftheGeneralManager,ViceGeneralManageroradepartmentmanager isamemberof theBoardofDirectors,heshallnotbeentitledtovoteon theissueofhisremoval.However,thePartiesshall takeintoaccounttheinterestsof theJointVentureCompanyinhavingastabletenurefor the General ManagerandViceGeneralManager, especiallyduring thefirsttwoyears ofthe Company,beforemaking adecisiontoreplaceoneoftheseindividuals.

(c) In addition,eachParty agreesto cause theDirectorsappointedby it to approve allpersonsnominatedtoManagementPersonnelpositions;provided,however,thateachPartymayvetothenominationofanycandidatefor aManagement Personnelpositionifsuch candidatefailstomeetthecriteria ascribedtothe positionfor whichthecandidateisnominated asmaybeprovidedintheArticlesofAssociationorotherwisedeterminedbytheGeneralManager andthe vetoingPartyshallprovidereasonableevidence of suchfailure. Eachindividual serving in the capacityofManagementPersonnel shallholdofficefor a termof two(2)years, andeachshallbeeligibleforconsecutiveterms ofofficeifre-nominatedbytheoriginalnominatingParty.Ifitbecomesnecessary,duetodismissalorresignation,toreplacethe individualservingin thecapacityof ManagementPersonnel,thePartythatoriginallynominated such individual shallnominateareplacementtoservetheremainderoftherelevantterm.

(d) Thedutiesof the GeneralManager shallconsistof carryingout thedecisionsof theBoard ofDirectorsand organizinganddirectingtheday-to-day operationsand managementofthe Company or ProjectCompanyanddecidingonallmanagementandoperationissues of theJointVenture which arenot withinthe scopeofauthorityoftheBoardofDirectorsassetforth inthis Contract.Inthe absenceof theGeneralManager,partor allof theforegoingauthority andpowermay

bedelegatedby the GeneralManagerto theDeputy GeneralManageror to anyotherManagement

PersonnelselectedbytheGeneralManager.

13.2 TheGeneralManager’srights:

Thegeneralmanager shallbe responsiblefor thedailyoperationof the CompanyorProject

Company. The generalmanagerisentitledtothefollowing authority:

(a) Entrustedby theBoard,be responsiblefor thedailyoperationof the CompanyorProjectCompany,makingdecisionsrelatingtotheCompanyorProjectCompany’sdailyoperation.

(b) To execute the resolutionof the Board and annualoperation and investmentplanapprovedbytheBoard.Toexamineandapproveexpensewithintheauthorityapprovedbythe Board.

(c)DraftthedevelopmentstrategyaccordingtotheBoard’sopinion.Draftthe annualbudgetandkeywork of theCompanyorProjectCompanyaccordingtothecompany’sdevelopmentstrategy.

(d)Draw outthe essentialmanagementsystemandtheregulationsandrules of the

CompanyorProjectCompanyandexecutethemupontheapprovalof theBoard.

(e)Draft theproposalofoperation, fixed assets investment,improvementof technology,R&Dandnew productsdevelopment.

(f)Makedecisionof theutilization and allocationof theCompanyorProject

Company’sfund and assetswithin theauthorityapprovedbytheBoard.

(h) Establish the salary, welfare and rewards andpunishmentsystems.Determine theemployment,promotion,salaryincrease,rewardandpunishmentand removaloftheemployees.

(i)Sign thecontractsthatare deemtobesignedbytheGeneralManager onbehalfoftheCompany orProjectCompany,orsigncontractsandagreementsdesignatedbylegal representative.

(j)Participatein theboardof thedirectors.

(k)ProposetohavetemporaryBoardmeeting.

(l) Other rights regulatedbythePRC laws and theArticlesofAssociation and the rightsgrantedbytheboardofdirectors;

13.3 The GeneralManager andviceGeneralManager shouldobey thefollowingbehavior criterion

(a) Executehisrightswithin theauthority.Noultravires.

(b)Nocontractor transaction with the CompanyorProject Company is allowable withouttheauthorizationof the ArticlesofAssociationor theBoard approval.

information.

(c)Noseekingofbenefit forhimselforothersby taking advantageof the internal

(d)NooperationofthebusinesswhichisidenticaltothatoftheCompanyorProjectCompanyforindividualpurposes or forothers,noengaginginactivitiesthatharmtheinterestof theCompanyorProjectCompany.

(e)Noseekingofprivate interest with the convenienceof thepositionor right in theCompanyor ProjectCompany,no takingofbriberies or otherillegalincomes,noseizingofthepropertyof theCompanyorProjectCompany.

(f)Nomisappropriationofthe fundsof theCompanyorProject Companyor lending itto others.

(g)Norandomtransferoffunds. Theutilizationandallocationofthefundsshallbe approvedbytheBoard with thesignature bothoftheGeneralmanagerand CFO.

(h)No seizingor accepting thebusinessopportunitywhich shouldbelongto the CompanyorProjectCompanyforhimselforotherswiththeconvenienceof the positionin theCompanyorProject Company.

(i)No accepting anycommission relatingto the CompanyorProject Company’s transactions.No bribery.

(j)Noborrowing fundsfrom the CompanyorProject Company in thenameofoneselforothers

(k)Noofferingofguarantee,mortgage andimpawnfor thedebtofeitherpartyorotherswiththeassetsoftheCompanyorProjectCompany.

(l)Noproviding falseaccounting,productionandbusinessinformation

(m)Noreleasing confidentialinformation receivedduringhistermofoffice relating toPartyA,PartyBortheCompanyorProjectCompany.

(n)No engagement inothercompetitors companies,exceptforParty A andParty B

and itssubsidiaries.

(o)Shallnottakeadvantageoftheirpositionstoarrangetheirrelativestothe

Companyor theProjectCompanyunlesstheapprovaloftheBoard.

13.4 Employment

Employment Policies.

Theemploymentpoliciesandtherelatedprocedures shallbeproposedbythegeneralmanager fortheapproval oftheBoardintheframeworkof PRClaws.Thequalificationandnumber ofemployees shallbedeterminedinaccordance withtheoperatingneedsof thecompanysetforthbytheGeneralManager.

Each ManagementPersonnelshallexecutetheLaborContract withtheCompany.Thespecificpowersandresponsibilitiesof Management Personnelshallbeprescribedin therelevantprovisionsof theArticlesofAssociationoftheCompany.NoManagementPersonnelshallhaveanypersonalliability foranyactsperformedingood faith,in thenormalcourseof theiremployment andwithinthescopeof activitiespermittedtobeengaged inby suchManagementPersonnel asset forth in this Contract and theArticlesofAssociation.

EachManagementPersonnel (other than theGeneralManager) shallreceivehis assignment from and shallreport to theGeneralManager and shallbe subjectto removalat any timeby the Board. Intheeventamanageris removed, thePartythatoriginallynominatedsuchmanagershallnominate anotherindividualfor suchposition.TheGeneralManagershallhavetherighttoappointaninterimmanager if suchPartyfails tonominateanother individual within thirty(30)daysof such individual’s removal.

AdministrationofEmployment Matters.

Allemploymentmatters, includingrecruitment,dismissal,promotionanddisciplineofemployeesofCompanyorProject Company shallbe administeredby theGeneralManager, subjectto thereview oftheBoardofDirectors.TheCompanyorProjectCompany,actingthroughtheGeneralManager,shallhavetherighttotakedisciplinaryactionsin accordancewiththePRCLabor Law, PRCLaborContractLaw andother applicable laws andregulations, includinggiving a warning and recording ademeritagainst,and/orreducingthewagesofemployees whoviolatetherules,regulationsandlabordisciplinesof theCompanyorProjectCompany. Whereacaseisextremelyserious,anemployee maybedismissed.TheGeneralManagershallalsohavethe righttodismissanyemployeeoftheCompanyorProjectCompanywhoisfound inadequate,incompetent orunsuitablefortheirjob (even afterhaving receivedpropertraining).

ExpatriateWorkers.

TheCompany orProjectCompany mayemployexpatriatepersonsasmanagersandtechnical expertsinaccordancewith theneeds oftheCompanyor ProjectCompany.Theemploymentofspecificexpatriatepersonsshallbe determinedbytheBoardofDirectors.

TransferofEmployees

Party A andParty B shallnothire,employor transferto itsotherbusinesses any currentor formeremployeeoftheCompanyorProjectCompanyunless(1)theGeneralManagerhasgivenhis consenttothehiring,employment ortransferof suchperson; or(2)suchpersonterminatedhis employmentwiththeCompany orProjectCompanymorethanone yearpriortosuchhiring,employmentortransfer.

13.5 Compensation

Matterssuch assalaries, wages, subsidies,benefits, insurance,allowances, rewardsandother compensationmattersofManagement Personnel,exceptSecondedPersonnel,shallbestipulatedintheLaborContractbetweenthe CompanyorProjectCompanyandsuch ManagementPersonnel.SimilarmattersforSecondedPersonnel shallbestipulated intheSecondContract.

13.6 ConfidentialityandNon-Competition

EachManagementPersonnelshall,asaconditionto employmentbytheCompanyorProject Company,executeanagreementinformandsubstanceacceptabletothe GeneralManager whichshall containprovisionsprohibitingthedisclosure ofconfidentialinformationobtainedduringthecourse ofemployment withtheCompanyor ProjectCompanyandrestrictingtheabilityofsuchWorkingPersonneltocompetewiththebusinessoftheJointVentureCompany.

14.LABORMANAGEMENT

14.1 EnterpriseAutonomy

TheCompanyorProjectCompanyshallhaveall-possibleautonomyunder thelawsand regulationsofthe PRCconcerningtherecruitment,employment,compensation,designationof welfarebenefits,procurement of laborinsurance,promotion,disciplineanddismissalofWorkingPersonnel.The laborpoliciesof theCompanyorProject Companyshallbedetermined in accordance with applicablePRClaborlaws andregulationsandtherelevantregulationsofHebeiProvinceandShijiazhuangMunicipalityon labormanagementinforeign investmententerprises.

14.2 Employment

ThequalificationandnumberofWorkingPersonnelshallbedeterminedinaccordancewiththeoperatingneedsoftheCompanyorProjectCompanyasdeterminedbytheGeneralManager.Each WorkingPersonnel shall,as aconditiontoemploymentbytheCompanyorProjectCompany,executeaLaborContractwiththeCompany orProjectCompany,whichshallcontainprovisionsprohibiting thedisclosure ofconfidentialinformationobtainedduringthecourse ofemployment withtheCompany orProjectCompanyandrestrictingtheabilityofsuchWorkingPersonneltocompete with theCompanyorProjectCompany.WorkingPersonnel shallobservethevariousrulesandregulations ofthebusiness of theCompanyorProjectCompany in fulfilling theirrespective tasks. The GeneralManagermay, inhis solediscretionandaccordingtothedegreeofseriousnessof thecase,givewarnings,recorddemerits,deductwages,dismiss, orotherwiseremoveanyWorkingPersonnel whohas violated thetermsofhisorherLaborContractortherules,regulationsor labordiscipline oftheCompanyorProjectCompany.

14.3 Compensation

Matterssuchascompensation, wages,subsidies,benefits,insurance,allowances,rewards,andothercompensationmatters ofWorkingPersonnelshallbestipulated intheLaborContract betweenthe CompanyorProjectCompanyandeachWorkingPersonnel.

14.4 Training

Ifrequired,candidateshiredbytheCompany orProject Company mustcompletesatisfactorily the trainingprogram specified in theirLaborContracts and a subsequentprobationaryperiodof work

beforetheywillbe officiallyconsideredemployeesoftheCompany orProjectCompany.TheGeneralManagershallhavetheabsoluterighttodecide,onbehalfoftheCompanyorProjectCompany, whethersuchpersonshavesuccessfullycompletedtheirprobationaryperiodandshallbegrantedemployment,or that suchpersons shallnotbegrantedemploymentfor whatever reasons, including lackofqualification,redundancyorotherwise.Anypersontowhom theCompanyorProjectCompanydoesnotofferemploymentaftertheprobationaryperiod shallbegivennoticebeforedismissal.The Company orProject Companyshallnototherwisebeliableinany manner toanyindividualorPartyin connection with theCompany orProjectCompany’sdecisiontodeclinetoofferemploymenttoaperson.

15.ANNUAL OPERATINGPLANSAND DGETS

15.1Preparation

TheGeneralManagershallberesponsibleforthepreparationoftheannualoperatingplans andbudgetsof theCompanyorProjectCompany. Theoperatingplan andbudget for thenext fiscalyear shallbesubmittedtotheBoardofDirectorsforexaminationandapprovalpriortoNovemberIofeachyear and shallincludedetailedplansandprojectionsregarding:

(a)procurementofmaterials,machinery,equipment andother capitalexpendituresoftheCompanyorProjectCompany;

(b)plansandpolicieswithrespecttothemanufactureoftheAdProducts;

Company;

(c) estimated revenues, expenditures andprofitsof theCompanyorProject

Company;and

(d) staffing levels andplans for trainingpersonnelof the CompanyorProject

(e)marketing,salesanddistributionplansandpolicies fordomesticandexport salesof the AdProducts.

(f)productdevelopmentproposal

15.2 Examination andImplementation

The BoardofDirectors shall complete itsexamination and approvalofeachannualoperatingplan andbudgetforthenextfiscalyearpriortotheendofDecember31ofeachyear.TheGeneralManagershallbe responsiblefortheimplementationoftheannual operatingplanandbudgetas approvedbytheBoard.

16. TAXATION,THREEFUNDSANDPROFITDISTRIBUTION

16.1 TaxTreatment

TheCompanyor ProjectCompanyshallpaytaxesin accordancewithrelevantChineselawsand regulationsandshall enjoy allpreferentialtaxandcustomstreatmentavailable toitunderthePRClaw. TheParties anticipate that theCompanyorProjectCompany shallqualifyforthepreferential tax and

customstreatment.InordertoconfirmthetaxtreatmentapplicabletotheCompany orProject Company,the Partiesshall,immediatelyafter theEstablishmentDate,procurethattheCompanyorProject Companysubmit anapplicationtothe appropriatetaxauthoritiesof Chinarequesting confirmationof thetaxandduty exemptions,reductionsandotherpreferencestobeaccorded tothe CompanyorProjectCompany.Furthermore,withtheAssistanceofPartyB,theCompanyorProject Company shall also apply for anyother reductionsoforexemptions from relevant taxes andduties whicharenowavailableor willbecomeavailable totheCompany orProjectCompanyunderany of the lawsand regulationsofthePRC.

16.2 ThreeFunds

After fullymakingupaccumulatedlossesofpreviousyears,ifany,andpayment oftaxes in accordance with the relevant laws and regulationsof thePRC, theCompany shall allocate apercentageof its annual after-taxprofit forcontributiontowards the ThreeFunds. Theamount tobe allocatedto theThreeFundsshallbedecidedbytheBoard of Directors onayearlybasisinaccordancewiththe financialperformanceofthe CompanyorProject Company, in lightof therelevant laws and regulationsof the PRC.

16.3Profit Distribution

(a)Afterpaying taxes in accordance with the law andmakingcontributionsto the ThreeFunds,theremainingearnings oftheCompany shallbeavailablefordividenddistribution to theParties.TheGeneralManagershallrecommend adividenddistributionplantotheBoardofDirectors withinthefirstthree(3) monthsfollowingthe endofeachfiscalyearoftheCompanyfor theBoard’s considerationandapprovalormodification. Inhisorherrecommendation,theGeneralManagershall considerthattheCompanyhassufficientfundsonhandtopaythedividendsandmeetitsapproved capitalexpenditurebudget and working capital requirementfor the currentbudgetyear. TheCompanyorProjectCompany shallnotdistributedividendsunless thelossesofpreviousfiscalyear(s)havebeen fullymadeup.Remainingundistributeddividend frompreviousyearsmaybedistributedtogether with thatofthecurrentyear andtheBoardofDirectorsmay authorize thepaymentofdividends fromundistributeddividendsfrompreviousyearsatanytime.

(b)Dividends shallbedistributed totheParties inproportiontoeachParty’sholdingof theregisteredcapitaloftheCompanyorProjectCompanyatthetimeofthedistribution.

17.FINANCIALAFFAIRSANDCCOUNTING

17.1AccountingSystem

(a) TheCompanyorProject Companyshallmaintainitsaccountsinaccordance InternationalFinancialReportingStandards(IFRS)andtheprovisionsofthisContractandtheArticlesofAssociation and in amanner sufficienttosatisfyaccountingprinciplesand thefinancial and taxreporting requirements of the Parties.TheGeneralManager andtheFinanceControllershallestablish the accountingsystemandproceduresfor theCompany orProjectCompanyin accordancewith IFRS.

(b) The fiscalyearof the CompanyorProjectCompany shall startonJanuary 1of the yearandendonDecember31ofthesameyear.Thefirstfiscalyear of theCompanyorProject Company shallcommenceon the EstablishmentDate andendonDecember31of the sameyear. The

last fiscalyearof theCompanyorProjectCompany shall startonJanuary 1of theyearoftermination andendon thedate oftermination.

17.2 BooksandRecords

TheCompanyorProjectCompany shall keeptrue andcorrect records andaccounts inaccordance with applicable PRCaccountinglawsand regulations.

17.3 InspectionofBooksand Records

EachPartyshallhavetherighttoexamineandcopyallbooksofaccount,records,vouchers, contractsanddocumentsofany kindthatarenecessary orappropriateformonitoringthefinancialperformanceoftheCompanyor ProjectCompany.EachPartymaymakesuch examinationandcopiesduringtheCompanyor ProjectCompany’snormalbusinesshours,provided thatsuchexamination and copyingdoesnotunreasonablyinterferewiththebusinessoperationsoftheCompanyorProject Company.EachParty may exercisesuchrightsthroughitsagentoremployeeorbyanindependent accounting firmdesignatedbytheParty.

17.4Accounting Unit

Thecurrency of accountsoftheCompany orProjectCompanyshallbedeterminedbytheBoardofDirectorsoftheCompany. Whenforeigncurrencytransactionstakeplace, theforeign currency amount willbe translatedinto thereporting currency for recordingpurposes.Any increaseordecrease in thebalanceof accountsrelatingtoforeign currency transactions shallbe translated into the currencyofaccount in accordance with theofficialForeignExchange rate announcedby thePeople’s Bankof Chinaon thetransactiondateoron thefirstdayof themonthwhen thetransaction takesplace.

17.5 Reports

TheCompanyorProjectCompanyshallprepareinaccordancewith IFRS andprovidetotheParties:

(a) Within sixty(60)days after the lastdayofeach fiscalyear, thebalance sheetof theCompany orProjectCompanyasofthe endof suchfiscalyearandtherelatedprofitandloss statement andstatementofcashflowsforthe fiscalyearthenended,in eachcaseauditedasprovidedbelow.

(b) Withinthirty(30)daysafterthelastday ofeachfinancialquarter,theunauditedbalance sheet,cashflowof theCompanyorProject Companyasoftheendof suchquarter andthe relatedprofitandloss statement(for suchquarter and for theyear-to-date).

(c) Within thirty (30)days after the lastdayofeach month, (i) aprofit and loss statementfor suchmonth; and (ii) cash flowstatement andbalance sheet; (iii) a forecast/outlookfor theremainderofthecurrent fiscalquarter,whichshall includewithoutlimitation thenumberofpersonnel,revenue,cashbalanceandexpenses.

17.6Audit

Anindependentandreputableinternational accountingfirmapprovedbytheBoard shallbeengagedbytheCompany orProjectCompany asits auditortoexamineandverify theannualfinancial statementsoftheCompanyor ProjectCompanyand shallsubmittheauditreportto theBoardandthe GeneralManager. EitherParty shall alsohave the rightnotmore thanonce ineach fiscalyear, to appointan accountantaudittheaccounts oftheCompany orProjectCompany.The expense of theaudit shallbebornebytheCompanyorProjectCompany. Iftheresultsofanysuch audit aresignificantlydifferentfromthatconductedbytheCompanyorProjectCompany’s auditor,itwillbebroughttothe attentionoftheBoard.TheCompanyorProjectCompany willpermitsuchaccountanttohaveaccessto the CompanyorProjectCompany’sbooks and records andManagementPersonnel and willprovide such accountant withoffice space and allotherreasonable facilitiestoenable the accountantto carryouttheaudit.

17.7Additional ReportsandProvisionofReturns

(a) Inorder to assistParty Ain interpreting and reporting the CompanyorProject Company’sfinancialperformancetomeetitsreportingrequirements,theCompanyor ProjectCompany shallprovide, with theassistance of itsoutsideauditorasnecessary or convenient,withoutcharge,toPartyA such additionalreports,financialdataandinformation in English,and in theformat,styleand structureasPartyAmayreasonablyrequest.

(b) The CompanyorProjectCompany shallprovide,to anyParty thatmay so requestacopyofeach taxreturnandreportthatitisrequiredto filewithanygovernmentalentityin sufficienttime priortosuch filing topermititsreviewbysuchPartypriortofiling.

18. BANKACCOUNTSANDFOREIGN EXCHANGE

18.1 BankAccounts

TheCompanyorProjectCompanyshallopenRMBdepositaccountsandForeignExchange depositaccountswithauthorizedbanksin China,and theproceduresforissuing andsigningchecks shallbedeterminedbytheBoardofDirectors.TheCompanyorProjectCompany mayalsoopenForeign Exchangedepositaccountswith foreignbanksoutsideChinaasdesignatedbytheBoardofDirectors subjecttoapprovalbytherelevantgovernmentauthorities.

18.2Foreign ExchangeRequirementsoftheCompanyorProjectCompany

Allofthe Company orProjectCompany’sForeignExchangereceiptsshallbedepositedinitsForeignExchangeaccountsandallthepayments inForeignExchangeshallbe madefromitsForeign Exchangedeposit accounts. In addition topaymentofdividenddistributions,otherpayments tobemadeby theCompanyorProjectCompany toPartyA, itsAffiliates and/ortoanyexpatriateemployeesoftheCompanyorProjectCompanyshallbemade inUnitedStatesDollarsorsuchotherForeign Exchange asParty Amaydesignate.Party A and/or itsAffiliates shallhave the right to remitoutside ChinaallpaymentsmadetoitbytheCompanyorProjectCompany,includingamountspaidtoitupondissolutionoftheCompanyorProjectCompany,inaccordancewithapplicable PRClawsandregulations.

19. CONFIDENTIALITYANDNON-COMPETITION

19.1 Confidentiality

(a) Eachof thePartiesacknowledges andagreesthat thedischargeof itsobligationsunder thisContractand thecontractsanddocumentsreferred tohereintowhichitisaparty will involvethe disclosureofConfidential Information.

(b) TheParties shalluse the Confidential Informationonlyfor thepurposes specifiedin thisContractandthe othercontractsanddocumentscontemplatedhereinand thereinto which itis aparty, and shallnotdisclose anyConfidential Informationtothirdparties withouttheprior writtenconsentofthePartyprovidingsuchConfidentialInformation;provided,however, thataPartymaybepermittedtodisclose ConfidentialInformationreceivedbyit toitsAffiliate(s)whensuchdisclosureisnecessaryfor suchPartytocarry out itsobligationsunder thisContract,theArticlesofAssociationor theothercontractsreferredtohereinupontheexecutionof anon-disclosureagreementbetween suchAffiliate(s)and the Party providing theConfidential Information.

(c) TheCompanyorProject Company, theParties and their respectiveAffiliates thatreceiveConfidentialInformationshallmakesuch ConfidentialInformationavailableonlyto thoseof theirdirectors,managersandpersonnel whosedutiesnecessitatefamiliaritywithsuch Confidential Informationand shall causesuchdirectors, managers andpersonnel alsotocomply with theconfidentialityobligationssetforth inthisContract.

(d) TheconfidentialityobligationssetforthinthisContractshallbemaintainedduring theJointVentureTerm.If after theexpiryoftheJointVenture termParty Awants to engage in thebusinessesof theJointVenture as setoutherein,PartyAshallnotuse theConfidentialInformationbelongingtoPartyBor totheJointVentureinbreachoftheconfidentialityobligationssetforthinthis Contract. IfaftertheexpiryoftheJointVenturetermPartyBwantstoengage inthebusinessesoftheJointVenture assetoutherein,Party B shallnotuse the Confidential InformationbelongingtoParty AortotheJointVentureinbreachof theconfidentialityobligationssetforth in thisContract.

19.2Non-Competition

Promptlyafter theInitialContributionDate,PartyAand B shallnot:

(a)directlyor indirectlyown,manage,operate, controlorparticipate in theownership,management,operationorcontrolof,orbeconnectedin anymannerwith, anybusinessin thePRCofthetypeand characterengaged inbytheJointVentureand in competitionwith theCompany orProjectCompany.

(b) solicitfor itselfor anyentityother than the CompanyorProject Companyof a customerorclientoftheCompanyorProjectCompany;or

(c)persuadeorattempttopersuadeanyemployeeoftheCompanyorProject

CompanytoleavetheCompany orProjectCompany’semploy.

Thenon-competecovenants setforth inthis Contractshall remain inforce fortheJointVenture

Termandfor an additionalperiodoftwo(2)full calendaryearsafter theterminationof thisContract.

IncaseanyofPartyAorBoritsAffiliatesown,manage,operate,controlorparticipateintheownership,management,operationorcontrolof,orbeconnectedinanymanner with, anybusinessin thePRCofthetypeand characterengagedinandcompetitivewiththatconductedbytheCompanyorProjectCompany,the otherpartiesmaypre-terminatetheContractatitssolediscretion.

PartyAandBrepresentandwarrantthatPartyAor Boranyjointventure(regardlessPartyAor B’sshareequityratioinsuchjointventures)doesnotcurrentlyownandwillnotatanytimeduringthedurationofthisAgreementorwithin2yearsfollowingtheterminationofthisAgreement,setupanyotherAdproductnetwork locationsorengageinanybusinessesincompetitionwiththeCompanyorProjectCompany.

PartyBrepresentsand warrantsthat PartyBdoesnotandwillnotengageinanybusinessesin competition with theCompanyorProjectCompanyin any ofthelocations oftheJointVentureCompany.

20.DURATIONOF THECOMPANYANDEXTENSION

TheJointVentureTermshallcommence onupontheissuance ofbusinesslicense and shall continuefortwenty(20)years.

Extension

TheCompanymaybeextendeduponitsexpiration. Theextensionshallberecommendedin writingbyoneof thePartieswithintwo(2) yearspriorto theexpirationdatebutno laterthanninemonths(9)monthspriortotheexpirationdateand shallbedecidedbymutual agreementof the Parties. Uponthe Parties’ approvalof theextension, theCompanyshallfilewithinthestatutorytimelimitan applicationfor approvalofthe extension with theapplicableChineseauthorities.

IfbothPartiesagreeto theextensionbuttheapplicableChineseauthoritiesrefusetoagreeto such anextension,theCompanywillbeterminated and liquidated.

IfbothPartiesrefuseto theextensionuponitsexpirationorwithin anyperiodof timefollowing its expiration,theCompanyshallbeterminated and liquidated.

21. EARLYTERMINATION

ThisContractcanbeterminated in theeventthatanyoftheconditionsor eventssetforthbelowoccur: (a) EitherParty failstomakeitscontractual commitmentorcontributions to theregistered

capitalof the Companyon the Initial ContributionDate and/or anyotherdateset forthonSchedule 1 andsuchfailurecontinues for aperiodofmorethanninety(90)days andisnotwaivedbytheotherParty. In such case,eitherPartymaygivenoticeoftermination.

(b) Thereoccurs amaterialbreachof thisContract and suchbreach isnot curedby thebreachingParty withinsixty(60)daysafterreceiptofwrittennoticeofthebreachfromthenon-breachingParty. In suchcase,eitherPartymay give notice oftermination.

(c)AnyPartyorits relevantAffiliate fails toperform anyof itsmaterialobligationsunder theContractor anyother contractreferredtoherein if, in thereasonableopinionof thenon-breaching

Party,suchnon-performancecreatesamaterialriskof losstosuchnon-breachingPartyortheCompanyorProjectCompany.In such case,eitherPartymaygivenoticeoftermination.

(d) TheCompanyorProjectCompanysustainsseriouslossesforthree(3)consecutiveyearsortheCompanyor ProjectCompany isunabletoattainitsbusinessgoalsand,afterconsultation, thePartiesareunabletoagreeon abusinessplantoimprovethe economic situationof theCompany orProjectCompany.In suchcase, eitherPartymay givenoticeoftermination.

(e) Totalorpartialperformanceof this Contract ispreventedby anEventofForceMajeure lastingformorethanninety(90)daysand,afterconsultation,the Partiesareunabletoagree onamethodtoperform thisContract. In suchcase,eitherPartymaygive noticeoftermination.

(f) ThePartiesmutually agreeto terminate thisContract and agreeon the terms for thedissolutionoftheCompanyorProjectCompany.Insuch case,theCompany orProjectCompanyand its assetsshallbedealtwith inaccordancewith such agreementand applicablelaw.

(g)Party A and Bmay terminate thisContract in advanceupon theoccurrenceof eventsdescribed in therelevantArticlesofthisContract.

(h)Party Amay terminate this Contract in advance at its solediscretionduetoParty B’s failuretofullyassisttheCompanyorProjectCompanyintheestablishment ofAdProductnetwork,that leadstobreachofcontract.

22.LIQUIDATIONANDDISSOLUTION

22.1Liquidation

Upon the adoptionof aunanimousBoardresolution toterminate thisContractpursuant tothis ContractandapprovalbytheExaminationandApprovalAuthoritytodissolvetheCompany orProject Company,the Parties shall causethe Directorsappointedbythemtoadopta resolutiontoliquidatethe Company orProjectCompanyandestablishaliquidationcommittee. Thecomposition,powersand functions oftheliquidationcommittee,formulationofliquidationprocedures,andpaymentof liquidationproceedsshallbeasset forthintheArticlesofAssociation.Notwithstandingtheforegoing,priorto theliquidationof anyoftheCompanyorProjectCompanyassets,PartyA shallhave(i)the absoluteright tore-possessandremovefromthepremisesoftheCompanyorProject Companyanypropertyorassets(including anyproprietarypropertyprovidedtotheCompanyor ProjectCompanypursuanttotheTechnologyLicenseContractandany otherdocuments,drawings,orinformationinany formwhatsoever) ofPartyAwhich wereneithercontributedtotheregisteredcapitalof theCompanyorProject Companynorpurchasedby theCompanyorProjectCompany fromPartyA, and (ii)have the rightoffirstrefusaltopurchase,at thehigherofscraporbookvalue,anyprocessequipmentofthe CompanyorProjectCompany which, inPartyA’s soleopinion,embodies technology licensedpursuant totheTechnologyLicenseContract.

22.2 Termination

After the liquidationof theCompanyorProjectCompany iscompleted andtheCompanyor

Project Companyhasbeeneffectivelydissolved, theParties shall terminate this Contract, theArticlesof

Association and allof the contracts contemplatedhereinby a writingexecutedby theduly authorized representativeof eachof the Parties.

Valuation andDisposalofAssets.

IntheeventofliquidationoftheCompanyor ProjectCompany,thePartiesshallnottakepossession,remove orotherwisedealwithanyassetsoftheCompany orProjectCompanypriortothe completionof liquidation.ThePartiesfurtheragreethat:

Intheevent ofliquidationoftheCompany orProjectCompany PartyAshallhavethe optionbutnoobligation(1)topurchasethemachinery;equipment,toolsandinventoryoftheCompanyorProjectCompanyatmarketvalue,or(2)toaccept themachinery,equipment,toolsand inventoryoftheCompanyorProjectCompany, inlieuofpaymentofmoney,aspartofthedistributionofsurplusassetsoftheCompany orProjectCompanyatavaluationequaltothemarketvalueatthattime(subjecttoreimbursementbyPartyAto PartyBincasesuchvalue exceedsitsentitlementtothe surplusassetsoftheCompanyorProjectCompany)forPartyA’sportion;

22.3 EffectofTermination.

Simultaneouslywith theterminationoftheCompanyor ProjectCompany,allrightsgrantedto theCompanyorProject CompanyundertheSales Contract,LCD DisplaySupplierAgreementand TechnologyLicenseContractshallterminate,if theyhavenotpreviouslyexpired.

22.4 Buyout

Upontheoccurrenceofanyofthefollowingevents, the indicated Partyshallhavetherightto request either the earlyterminationof theCompany orProjectCompany orthebuyout ofitsequity interestbythe otherParty orthe otherParty’s equityinterestbyit oranythirdpartyselectedbyit,and theCompanyorProjectCompany shallbeterminatedor reorganized accordinglypursuanttoArticle

23.5and23.6,unlessthe Partiesagreeotherwise:

(a) If therehasoccurred amaterialbreachof this Contract and suchbreach isnot curedwithinsixty(60)daysof writtennoticethereoffromthenon-breachingParty,thenthenon-breachingPartyshallhave such right.

(b) If the CompanyorProject Companyhas sustainedheavylosses for three (3) consecutiveyears,orthe cumulativeamountoflosseshasexceededfiftypercent(50%)ofthetotal registeredcapitaloftheCompany, whicheveroccursfirst,thenbothpartiesshallhavesuchright.

(c) IfanyPartytransfersorattemptstotransferitsequityintheCompanyor

ProjectCompanyinviolationof theprovisions of thisContract,then theotherPartyshallhavesuch right.

(d) If a significantpartofthe assetsof theCompanyorProjectCompanyisexpropriated without propercompensation,thenbothpartiesshallhavesuch right.

(e) If anyotherunforeseencircumstance arises where it is likely that theCompanyorProjectCompanywillsuffer anoveralllossduringtheentireJointVentureTerm,thenany Partyshallhavesuchright.

(f) If totalorpartialperformanceofthisContract ispreventedbyanEventofForceMajeure formore thanninety(90)days, thenanyPartywhoseperformanceisnotsopreventedshallhavesuch right.

(g) IfbothPartiesdecideto terminate their jointventurecorporation, then any

Partyshallhavesuch right.

(h) If insolvency,dissolutionor windingupofonepartyoccurs, thenanotherparty shallhavesuch right.

havesuchright.

(i) If achange incontrolorownershipofonepartyoccurs, thenanotherparty shall

22.5 BuyoutOption

(a) If the indicatedParty (the“RequestingParty”)choosestoterminate the Companyor ProjectCompanypursuanttoArticle23.4,then theRequestingPartyshallsend writtennoticethereforto theChairman oftheBoard. Withinthirty(30)days ofthereceiptof suchnotice,the Chairmanor theViceChairman ifthe ChairmanissodesignatesoraDirector appointedbytheChairmantoactonhisbehalf,shallconveneaBoardmeeting therefor.

(b) If the RequestingParty choosestobuyoutor cause a thirdparty tobuyout theotherParty’sinterestsintheCompanyor ProjectCompany,itshallnotifytheother Partyin writing. Upon thereceiptof thenoticeby theotherParty, thePartiesor the thirdparty (in lightoftheactual circumstances),asthecase maybe,shallcommencenegotiations forthebuyout immediately.

(c) In the case that the RequestingParty chooses toterminate the CompanyorProjectCompany,the otherPartymay,attheBoardmeetingconvenedinconnectiontherewith,optiontobuyoutorcauseathirdpartytobuyout the Requesting Party’sequity interestinthe CompanyorProjectCompany.

(d) Ifneither the RequestingPartynor theotherpartychooses thebuyoutoption, the Partiesshall causetheBoardtoadoptaunanimousresolutionfordissolutionofthe CompanyorProjectCompanyattheBoardmeetingconvened therefore.

(e) Thepricefor anybuyoutunder thisArticle shallbedetermined in accordance withArticle22.6.After thepriceisdetermined andaccepted inaccordancewithArticle 22.6,anequitytransferagreementshallbeentered intothereforebetweenParty A andParty B orbetweenthesellingParty withtheselectedthirdparty.ThesellingParty shallassist insecuring allnecessarygovernment approvals. In theeventParty A is thesellingParty, allpaymentstoParty A shallbemadeinforeignexchange.

(f) If anyParty exercises thebuyoutoption, theParties shallcomplete thebuyout transaction within six(6) monthsfollowing theRequestingParty’sinitialterminationorbuyout request.IntheeventthePartiesfailtodosowithinsuch time,unlessthePartiesshallagreeotherwise,eachPartyshall agreetothetermination anddissolutionof theCompanyorProject CompanyandcauseitsDirectorstovoteinfavorthereforeonaBoardmeetingconvened thereforenolater than thirty(30)daysfollowingsuchsix(6)monthsperiod.FailurebyanyParty todoso shallconstitutematerialbreachofthis Contract,whichshalljustifyunilateral applicationbytheotherPartyto theExamination andApprovalAuthorityto terminate and liquidatetheCompanyorProjectCompanyin accordancewithapplicablelawsand regulations.

(g) Theterminationof theCompanyorProjectCompany and the transferofequity asaresultofanybuyouttransactionshallbesubjecttotheapprovaloftheExaminationandApprovalAuthority,ifrequiredbylaw.

22.6 BuyoutPrice

(a) ThepriceofthesellingParty’s equityinterestshallbe:

(i) thenetworthof theCompany orProjectCompany,to bedeterminedby anauditedbalance sheet effectiveonthedateoftermination orbuyoutrequest,multipliedbythepercentageof theCompanyorProjectCompany’sregistered capitalcontributedby the sellingParty,plus;

(ii) an additional amount, ifany, tobenegotiated ingood faith reflecting thefairmarket value oftheCompany orProjectCompanyasagoingconcerninlightoftheactual circumstances oftheCompanyorProjectCompany, themarket value of similarly-sizedcompaniesin the sameindustry,recentorexistingbonafide offers fromthirdparties,andinternationallyacceptedprinciplesrelevanttothedeterminationofgoingconcernvalue.

(b) If theprice cannotbe agreedupon within thirty(30)daysof theBoardmeeting convenedfollowingtheRequestingParty’sterminationorbuyoutrequest,thevalue of therelevant equityinterestshallbedeterminedbyatop-rankingChineseforeignjointventurepublicaccounting firmdesignatedbythe Parties andshallbeapprovedbytherelevantauthorityif requiredbylaw.Suchvaluation shallbecompleted within sixty (60)daysof thedateof appointmentof the accounting firm. The fees associated withsuchvaluation shallbeborneby the sellingParty. Thevaluedeterminedby such accounting firmshallbefinal andbinding.

22.7Setoffand Withholding

ThePartiesherebyagreethatin theeventof abuyoutpursuanttothisContract:

(a) thepurchasingParty shallhave the righttosetoff from thebuyoutpriceotherwisetobepaid tothesellingPartyany outstanding amountowedorpayablebythesellingPartyto thepurchasingPartyatthetimeand/or withholdforandonbehalfoftheCompanyorProjectCompany fromsuchbuyoutpriceanyoutstandingamountowedorpayablebythesellingPartytotheCompanyorProjectCompany atthetimeanddeliver suchwithheld amounttotheCompanyorProjectCompany;

(b) thesellingPartyshall,in thecasethepurchasingpartybeingathirdparty, assurethatsuchthirdparty shallagreeto withholdfromthebuyoutpricetobepaidtotheselling Party anyoutstandingamountowedorpayableby thesellingParty to the CompanyorProject Company and/or theotherPartyatthetimeanddeliver suchamountdirectlytotheCompanyorProjectCompany and/orthe otherParty,as thecase maybe.ThePartiesunderstandthatfailuretodososhallbeproperground fortheotherPartytorefuseto giveitsconsenttosuchbuyout.

23.LIABILITYFORBREACH OFCONTRACT

23.1 BreachofContract

IfaPartyfailstoperformany ofitsmaterialobligationsunder thisContract,orifa representationorwarrantymadebya PartyunderthisContractisuntrueor materiallyinaccurate,thePartyshallbedeemedtohavebreachedthisContract.

23.2FailuretoPayCapitalContributions

Shouldoneof thePartiesfail topay anyportionof its contributionto the registered capitalof theCompanyatthetimeandintheamountsstipulatedinArticle6andSchedule1ofthisContract,suchParty shallbedeemedtobe inbreachof theContract and, in addition to anyliability itmay incur for suchbreach,suchPartyshallpaytotheCompanyalatecontributionpenaltyatamonthlyrate equalto thethenapplicablelendingratepublishedbythe People’s BankofChinaontheamount ofthe contributiondueandunpaid for aslong assuchcontribution isdueandunpaid.

23.3 IndemnityforBreachofContract

(a) If theCompanyorProject Company suffers anycost,expense, liabilityor loss, includingbutnotlimitedtolostprofits,asaresultofabreach ofthisContractbyeitherParty,thenthebreachingPartyshallindemnifyandholdtheCompanyorProjectCompanyharmless inrelationtoany such cost,expense,liabilityorloss,inclusiveofall related losses, costsandfees.

(b) If thenon-breachingParty suffers anycost,expense, liabilityorloss, includingbutnot limitedtolostprofits, as aresultof abreachof thisContractbythebreachingParty, thebreachingPartyshallindemnifyandholdthenon-breachingPartyharmlessinrelation tosuchcost,expense, liabilityor loss incurredby thenon-breachingParty, inclusiveof allrelatedlosses,costs and fees.

23.4 ContinuedImplementationofContract

Duringtheperiodofbreach,the Partiesshall inallotherrespectscontinuetheir implementationof thisContract.

24. INSURANCE

Party B shall, at itsowncost andexpense and at all timesduring theoperationof theCompanyorProjectCompany,procure andmaintain full andadequate insurancecoverage in amannerprudent andadvisabletocoverthe CompanyorProjectCompanyanditsAdProductnetworkandAdProductdevices. The relevant insurancepoliciesmaybeobtained from any insurancecompany authorized to

providesuchpoliciesin the PRC. Thetypesof insurance(whichshall includeproductliabilityinsurance) and thevalue,durationanddenominationof thecurrencyof thepremiums and insuranceproceeds shallbedeterminedbytheBoardofDirectorsbasedupontherecommendationoftheGeneralManagerbasedonthepracticesofsimilarbusinessinothercountriesand theactualcircumstancesinthePRC.

25.FORCEMAJEURE

25.1PerformanceofObligations

If anyPartyisprevented from performing anyof itsobligationsexcluding thepaymentofmoniesduehereunderwhichpayment obligationsareherebyspecificallystipulatedtobe outsidethescope of thedefinitionofEventofForceMajeureunderthisContractdueto anEventofForceMajeure, the time forperformanceoftheobligationsunderthisContractspecificallypreventedfromperformancebysuch EventofForceMajeure shallbe extendedby aperiodequal to theperiodofdelay causedby such EventofForceMajeure. APartyclaiming inabilitytoperformduetoanEventofForce Majeureshalltake appropriatemeanstominimizeorremovetheeffects oftheEventofForceMajeureand,withinthe shortestpossible time, attempt to resumeperformanceof theobligation(s) affectedby the EventofForceMajeure.IfanEventofForceMajeure occurs,no Partyshallberesponsibleforanydamage, increasedcostsorlosswhichtheotherPartiesmaysustainbyreasonofsuchafailureordelay ofperformance, and such failureordelayshallnotbedeemed abreachofthisContract.All otherobligationsunder thisContractand thetimeforperformancethereofshall remainunaffected.

25.2Notice

TheaffectedPartyshallimmediatelynotifytheotherParty ofthe occurrenceofanyEvent ofForceMajeureandshallprovideavailableevidencethereof.Shouldthedelaycausedbyany Event ofForceMajeurecontinueformorethanninety(90)consecutivedays,the Partiesshall settletheissue offurtherperformanceofthisContractthroughfriendlynegotiationsorinaccordancewiththerelevantarticlesunder this Contract.

25.3 ContinuedImplementationofContract

Duringtheperiodofan EventofForceMajeure,the Partiesshallinallotherrespectscontinue theirimplementationof thisContract.

26.APPLICABLE LAW

26.1 GoverningLaw

The lawsorregulationsor relevantdocumentationofthePRCwhichareofficiallypublishedandpubliclyavailableshallapplytoandgovern theformation, validity,interpretationandimplementationof thisContract.IntheeventthatthereisnoofficiallypublishedandpubliclyavailablelawofChinagoverningaparticularmatterrelatingtothisContract,referenceshallbemadetotherelevantprovisionsinanytreatytowhichthe PRCisamemberorsignatory.If thereisno suchapplicabletreatyprovision,then referenceshallbe madetogeneral internationalpractices.

27.DISPUTERESOLUTION

27.1Arbitration

(a)Anydispute arising from,outofor inconnectionwith thisContract shallbe settled throughfriendlyconsultationsbetweentheParties.Suchconsultationsshallbeginimmediately afteraPartyhasdelivered tothe other Partya written requestfor suchconsultation.If withinninety(90)daysfollowingthedateonwhichsuchnoticeisgiven,thedisputecannotbesettledthroughconsultations,thedispute shall,besubmittedtoChinaInternationalEconomicandTradeArbitration Commission and inaccordancewithArbitration rulesasamended.

(b) There shallbe three (3) arbitrators.Party A shallselectone (1) arbitrator andPartyBshallselectone(1) arbitrator,andbotharbitratorsshallbeselectedwithinthirty(30)daysaftergivingorreceiving thedemandforarbitration.IfaPartydoesnotappointanarbitratorwhohas consentedtoparticipatewithinthirty(30)days aftertheselectionofthefirstarbitrator,therelevant appointmentshallbe madebytheCommission. A third arbitrator shallbemutuallyagreedbythetwoso appointed arbitrators, whosenationality shallnotbeAmericanor Chinese. If the arbitrators appointedbythe Parties cannotagree on thechoice of thethird arbitrator within aperiodof30days after theirnomination,then thethird arbitratorshallbeappointedbytheCommission.Thearbitralawardshallbe finalandbindinguponallParties,andshalldealwiththequestionofcostsofarbitrationandallmatters relatedthereto.

27.2 ContinuedImplementationofContract

During theperiod whenadisputeisbeingresolved,thePartiesshallinallotherrespects continuetheirimplementationof thisContract.

28.MISCELLANEOUS

28.1Language

ThisContractisexecuted inEnglishandChineseintwo(2) originalcounterpartsineach language. Both languageversionsshallhave equalvalidity. EachPartyacknowledgesthatithasreviewedboth languagetextsand that theyaresubstantiallythesamein allmaterialrespects.

28.2 EntireAgreement

ThisContractandthe othercontractscontemplatedhereinconstitutetheentireagreement amongPartyAandParty Bwithrespecttothesubjectmatterssetforthhereinandthereinand supersedeallpriordiscussions,notes,memoranda,negotiations,understandingsandallthedocuments andagreementsbetween themrelatingto thesame.Alldocuments,agreements,understandingsand correspondencebetweenthePartiespriortothe executionof thisContractshall,withtheexceptionof anynon-disclosure/confidentialityundertakings,becomenullandvoidautomaticallywhen thisContract entersintoeffect.

28.3Amendment

Amendments to thisContract and theother contracts contemplatedhereinmaybemadeonlyby a written agreement in English and Chinese signedbyduly authorizedrepresentativesofeachof the

Partiesand,unlesspriorapprovalfromtheExaminationandApprovalAuthorityisstatutorilyrequired, willbecome effectiveassoonastheamendmentsarefiledwith theExamination andApprovalAuthority for record.

28.4 Conflictor Inconsistency

Therightsand obligationsofthePartiesestablishedbyandunderthisContractshallcontinueto existthroughouttheJointVentureTermandshallnotbeprejudicedbytheestablishmentof the Company orProjectCompany,theadoptionof theArticles ofAssociationortheexecutionofany of the contracts contemplatedherein. In theeventof anyconflictor inconsistencybetween thisContracton theonehand andtheArticlesofAssociationor othercontractscontemplatedhereinonthe other,theArticles ofAssociationandother contractscontemplatedhereinshallprevail.Intheevent ofanyconflictorinconsistencybetweenthisContractandtheprojectanalysisof agriculturalmedia,thisContractshallprevail.

28.5Notices

Noticesor other communicationsrequiredtobegivenbyanyPartyortheCompanyor Project CompanypursuanttothisContractshallbewritteninEnglish[andChinese] andmaybedeliveredpersonally,sentbyregisteredairmail(postageprepaid)byarecognizedcourierservice,orsentby facsimiletransmissiontotheaddress ofthe otherPartysetforthbelowor suchotheraddressnotifiedin lieuthereof.Thedateson whichnoticesshallbedeemedtohavebeeneffectivelygivenshallbedetermined asfollows:

(a)NoticesgivenbypersonaldeliveryshallbedeemedeffectivelygivenonthedateofpersonaldeliverytotheotherParty.

(b)Noticesgivenby registered airmail (postageprepaid) shallbedeemed effectivelygivenontheseventh(7th)dayafterthedateonwhichtheyweremailed(asindicatedbythepostmark).

(c)Noticesgivenby aircourier shallbedeemed effectivelygivenon thedateofdelivery(asindicatedbytheairwaybill)totheotherParty.

(d)Noticesgivenby facsimiletransmission shallbedeemedeffectivelygivenon the first(1st)businessdayfollowing thedateof transmission.

For the purposeofnotices,theaddressesofthePartiesareasfollows:PartyA: ChinaAgricultureMedia Group Co.Ltd.

中农传媒集团有限公司

Attention:Weiheng Cai·B2, 1708NanFungTower,173DesVoeuxRoadC,HongKongSARofChina

TelephoneNo:·(86)(020)38781568

Facsimile No:·(86)(020)38781681

PartyB:HebeiAgriculturalMeansofProductionCo.,Ltd.

Attention: ChenLiJun ·No 6SouthJiansheZhi Road, Chengdu City,SichuanProvince,PRC

TelephoneNo(86)0311-86035463

Facsimile No:(86)0311-86035583

Facsimile No:(86)0311-60351282

AnyParty mayatanytimechangeitsaddressfor service ofnoticeor communication in writingdelivered totheotherPartyinaccordancewiththetermshereof.

28.6 Waiver

Unlessotherwiseprovided for,failure ordelayonthepartofanyParty.Bothpartiesshouldtoexerciseanyrightorprivilegeunder thisContractaccording topromissoryorwithin reasonableperiod in caseofnopromissory.Otherwise it shallnotbeoperate as a waiverof such rightorprivilegenor shall anypartialexerciseofany rightorprivilegepreclude anyfurtherexercise thereof withinreasonableperiod.AnywaiverbyaParty ofabreachof anytermorprovisionof thisContractshallnotbeconstrued asawaiverbysuch Partyofanysubsequentbreach,itsrightsundersuchtermorprovision,oranyofitsotherrightshereunder.

28.7Headings

Theheadingscontainedin thisContractareforreferenceonlyandshallnotbedeemedtobeapart ofthisContractortoaffectthemeaningor interpretationhereof.

28.8Validation

ThisContract,alongwiththesupplementeddocument,shallbeapprovedbytheexaminationdepartmentof the P.R.C.governmentand takeintoeffectupon accepting theapproval.

[Signature Page Follows]

INWITNESSWHEREOF, thePartiesheretohave causedthisContracttobe executedasof thedate first abovewrittenbytheirdulyauthorizedrepresentatives.

ChinaAgricultureMedia Group Co.Ltd.

中农传媒集团有限公司

/s/ Weiheng Cai

By: Weiheng Cai,Director

HebeiAgriculturalMeansofProduction Co.,Ltd.

/s/ ChenLiJun

By: ChenLiJun

President

Schedule1

- ContributionsofPartiesand TermsThereof

Schedule2

-ListofAdProductsof theCompany

Schedule3

- Typical LDCnetworkconfigurations