Document:

exhibit_10-3.htm

Exhibit
    10.3    Business
    Cooperation Agreement, Dated as of December 23, 2007     

    

     

    BUSINESS
      COOPERATION AGREEMENT

    This
      Business Cooperation Agreement (this “Agreement”) is dated
      December 23, 2007, and is entered into in Beijing, China between Orient Come
      Holdings Limited, a company incorporated under British Virgin Islands, located
      at Room 810, Block C2, Oriental Plaza, No. 1 ChangAn Street, Beijing, China
      100738 (“Party
      A”), Kinglake Resources, Inc., a Nevada corporation and the Parent
      Company of Party A, and Beijing K's Media Advertising Ltd. Co., a limited
      liability company organized under the laws of the PRC (“Party B”), with a
      registered address at Room 211, No. 31 YanXi Street, YanXi Economic Zone,
      HuaiRou District, Beijing, China. Party A and Party B are referred to
      collectively in this Agreement as the”Parties.”

     

    RECITALS

    
      	
              (1)

            	
              Party
                A is a company incorporated under the laws of the British Virgin
                Islands,
                which has the expertise in the business of media and media
                placements.

            

    

    
      	
              (2)

            	
              Party
                B is a company incorporated in Beijing, China, and is an emerging
                outdoor
                media company, which will place advertisements that contain premium
                bands
                in KTV nightclubs. Potential audiences are higher than average income
                consumers (the “Business”);

            

    

    
      	
              (3)

            	
              Party
                A desires to provide technical support, business support and related
                consulting services and relevant services to Party B, for compensation,
                and Party B agrees to accept such consulting services.

            

    

    
      	
              (4)

            	
              The
                Parties are entering into this Agreement to set forth the terms and
                conditions under which Party A shall provide services to Party B.

            

    

    NOW
      THEREFORE, the Parties
      agree as follows:

    1. DEFINITIONS

    1.1 In
      this Agreement the
      following terms shall have the following meanings:

    “Affiliate,”
with
      respect to any Person, shall mean any other Person that directly or indirectly
      controls, or is under common control with, or is controlled by, such Person.
      As
      used in this definition, “control” shall mean possession, directly or
      indirectly, of power to direct or cause the direction of management or policies
      (whether ownership of securities or partnership or other ownership interests,
      by
      contract or otherwise).

    “Consulting
      Services
      Fee” shall be as defined in Clause 3.1.

    “Indebtedness”
shall
      mean, as to any Person, without duplication, (i) all indebtedness (including
      principal, interest, fees and charges) of such Person for borrowed money for
      the
      deferred purchase price of property or services, (ii) the face amount of all
      letters of credit issued for the amount of such Person and all drafts drawn
      thereunder, (iii) all liabilities secured by any Lien on any property owned
      by
      such person, whether or not such liabilities have been assumed by such Person,
      (iv) the aggregate amount required to be capitalized under leases under which
      such Person is the lessee and (v) all contingent obligations (including, without
      limitation, all guarantees to third parties) of such Person.

    “Lien”
shall
      mean any
      mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance,
      lien (statutory or other), preference, priority or other security agreement
      of
      any kind or nature whatsoever (including, without limitation, any conditional
      sale or other title retention agreement, any financing or similar statement
      or
      notice filed under recording or notice statute, and any lease having
      substantially the same effect as any of the foregoing).

    “Person”
shall
      mean
      any individual, corporation, company, voluntary association, partnership, joint
      venture, trust, unincorporated organization, entity or other organization or
      any
      government body.

    “PRC”
means
      the
      People’s Republic of China.

    “Quarterly
      Date” shall
      mean the last day of March, June, September and December in each year, the
      first
      of which shall be the first such day following the date of this Agreement;
      provided that if any such day is not a business day in the PRC, then such
      Quarterly Date shall be the next succeeding business day in the PRC.

    “Services”
means
      the
      services to be provided under the Agreement by Party A to Party B, as more
      specifically described in Clause 2; in this Agreement a reference to a Clause,
      unless the context otherwise requires, is a reference to a clause of this
      Agreement.

    1.2 The
      headings in this
      Agreement shall not affect the interpretation of this Agreement.

    2. RETENTION
      AND SCOPE OF
      SERVICES

    2.1 Party
      B hereby agrees to
      retain the services of Party A, and Party A accepts such appointment, to provide
      to Party B services in relation to the current and proposed operations of Party
      B’s business in the PRC upon the terms and conditions of this Agreement. The
      services subject to this Agreement shall include, without limitation:

    (a) General
      Business
      Operation. Advice and assistance relating to development of technology
      and provision of consultancy services, particularly as related to the
      Business.

    (b) Human
      Resources.

    (i) Advice
      and assistance in
      relation to the staffing of Party B, including assistance in the recruitment,
      employment and secondment of management personnel, administrative personnel
      and
      staff of Party B;

    (ii) Training
      of management,
      staff and administrative personnel;

    (iii) Assistance
      in the
      development of sound payroll administrative controls in Party B;

    (iv) Advice
      and assistance in
      the relocation of management and staff of Party B;

    (v) Marketing
      and other related
      advice;

    (c) Research
      and
      Development.

    (i) Advice
      and assistance in
      relation to research and development of Party B;

    (ii) Advice
      and assistance in
      strategic planning;

    (d) Guaranty.  Kinglake
      shall take such action as may be reasonably required to guaranty up to RM 10
      million ($1.3 million U.S.) of Party B's financial obligations; and

    (e) Other.  Such
      other advice and assistance as may be agreed upon by the Parties.

    2.2 Exclusive
      Services
      Provider. During the term of this Agreement, Party A shall be the
      exclusive provider of the Services. Party B shall not seek or accept similar
      services from other providers unless the prior written approval is obtained
      from
      Party A.

    2.3 Intellectual
      Properties
      Related to the Services. Party A shall own all intellectual property
      rights developed or discovered through research and development, in the course
      of providing Services, or derived from the provision of the Services. Such
      intellectual property rights shall include patents, trademarks, trade names,
      copyrights, patent application rights, copyright and trademark application
      rights, research and technical documents and materials, and other related
      intellectual property rights including the right to license or transfer such
      intellectual properties. If Party B must utilize any intellectual property,
      Party A agrees to grant an appropriate license to Party B on terms and
      conditions to be set forth in a separate agreement.

    2.4 Pledge.
      Party B shall
      permit and cause Party B’s shareholders to pledge the equity interests of Party
      B to Party A for securing the Fee that should be paid by Party B pursuant to
      this Agreement.

    3. PAYMENT

    3.1 General.

    (a) In
      consideration of the
      Services provided by Party A hereunder, Party B shall pay to Party A during
      the
      term of this Agreement a consulting services fee, equal to 80% of the quarterly
      revenues after deduction of direct operating costs, expenses and taxes (the
      “Consulting Services Fee”). Party B shall pay the Consulting Services Fee based
      on the quarterly financial statements provided under Clause 5.1 below. Such
      quarterly payment shall be made within 15 days after receipt by Party A of
      the
      financial statements referenced above.

    (b) Party
      B will permit, from
      time to time during regular business hours as reasonably requested by Party
      A,
      or its agents or representatives (including independent public accountants,
      which may be Party B’s independent public accountants), (i) to conduct periodic
      audits of books and records of Party B, (ii) to examine and make copies of
      and
      abstracts from all books, records and documents (including, without limitation,
      computer tapes and disks) in the possession or under the control of Party B
      (iii) to visit the offices and properties of Party B for the purpose of
      examining such materials described in clause (ii) above, and (iv) to discuss
      matters relating to the performance by Party B hereunder with any of the
      officers or employees of Party B having knowledge of such matters. Party A
      may
      exercise the audit rights provided in the preceding sentence at any time,
      provided that Party A provides ten (10) days written notice to Party B
      specifying the scope, purpose and duration of such audit. All such audits shall
      be conducted in such a manner as not to interfere with Party B’s normal
      operations.

    3.2 Party
      B shall not be
      entitled to set off any amount it may claim is owed to it by Party A against
      any
      Consulting Services Fee payable by Party B to Party A unless Party B first
      obtains Party A’s written consent.

    3.3 The
      Consulting Services Fee
      shall be paid in RMB by wire transfer to a bank account or accounts specified
      by
      Party A, as may be specified in writing from time to time.

    3.4 Should
      Party B fail to pay
      all or any part of the Consulting Service’s Fee due to Party A in RMB under this
      Clause 3 within the time limits stipulated, Party B shall pay to Party A
      interest in RMB on the amount overdue based on the three (3) month lending
      rate
      for RMB announced by the Bank of China on the relevant due date.

    3.5 All
      payments to be made by
      Party B hereunder shall be made free and clear of and without deduction for
      or
      on account of tax, unless Party B is required to make such payment subject
      to
      the deduction or withholding of tax.

    4. FURTHER
      TERMS OF
      COOPERATION

    4.1 All
      business revenue of
      Party B shall be directed in full by Party B into a bank account(s) directed
      by
      Party A.

    5. UNDERTAKINGS
      OF PARTY
      B

    Party
      B
      hereby agrees that, during the term of the Agreement:

    5.1 Information
      Covenants. Party B will furnish to Party A:

    5.1.1 Preliminary
      Monthly
      Reports. Within five (5) days after the end of each calendar month the
      preliminary income statements, balance sheet and results of operations of Party
      B made up to and as at the end of such calendar month, in each case prepared
      in
      accordance with the PRC generally accepted accounting principles, consistently
      applied.

    5.1.2 Final
      Monthly
      Reports. Within ten (10) days after the end of each calendar month, a
      final report from Party Bon the financial situation such as income statements,
      balance sheet and results of operations of Party B made up to and as at the
      end
      of such calendar month and for the elapsed portion of the relevant financial
      year, setting forth in each case in comparative form figures for the
      corresponding period in the preceding financial year, in each case prepared
      in
      accordance with the PRC generally accepted accounting principles, consistently
      applied.

    5.1.3 Quarterly
      Reports. As
      soon as available and in any event within thirty (30) days after each Quarterly
      Date (as defined below), unaudited consolidated balance sheet, consolidated
      statements of operations, statements of cash flows and changes in financial
      situation of the Party B and its subsidiaries, if any, for such quarterly period
      and for the period from the beginning of the relevant fiscal year to such
      Quarterly Date, setting forth in each case actual versus budgeted comparisons
      and in comparative form the corresponding consolidated figures for the
      corresponding period in the preceding fiscal year, accompanied by a certificate
      of the chief financial officer of the Party B, which certificate shall state
      that said financial statements fairly present the consolidated financial
      condition and results of operations, as the case may be, of the Party B and
      its
      subsidiaries, if any, in accordance with U.S. general accepted accounting
      principles applied on a consistent basis as at the end of, and for, such period
      (subject to normal year-end audit adjustments and the preparation of notes
      for
      the audited financial statements).

    5.1.4 Annual
      Audited
      Accounts. Within six (6) weeks of the end of the financial year, the
      annual audited accounts of Party B to which they relate (setting forth in each
      case in comparative form the corresponding figures for the preceding financial
      year), in each case prepared in accordance with, among others, the U.S.
      generally accepted accounting principles, consistently applied.

    5.1.5 Budgets.
      At least 45
      days before the first day of each financial year of Party B, a budget in form
      satisfactory to Party A (including budgeted statements of income and sources
      and
      uses of cash and balance sheets) prepared by Party B for each of the four
      financial quarters of such financial year accompanied by the statement of the
      chief financial officer of Party B to the effect that, to the best of his
      knowledge, the budget is a reasonable estimate for the period covered
      thereby.

    5.1.6 Notice
      of Litigation.
      Promptly, and in any event within one (1) business day after an officer of
      Party
      B obtains knowledge thereof, notice of (i) any litigation or governmental
      proceeding pending against Party B which could materially adversely affect
      the
      business, operations, property, assets, condition (financial or otherwise)
      or
      prospects of Party B and (ii) any other event which is likely to materially
      adversely affect the business, operations, property, assets, condition
      (financial or otherwise) or prospects of Party B.

    5.1.7 Other
      Information.
      From time to time, such other information or documents (financial or otherwise)
      as Party A may reasonably request.

    5.2 Books,
      Records and
      Inspections. Party B will keep proper books of record and account in
      which full, true and correct entries in conformity with generally accepted
      accounting principles in the PRC, provided however, that such books and records
      shall also meet the requirements of US generally accepted accounting principles
      to the extent necessary to prepare the reports described above in Sections
      5.1.3
      and 5.1.4. Party B will permit officers and designated representatives of Party
      A to visit and inspect, under guidance of officers of Party B, any of the
      properties of Party B, and to examine the books of record and account of Party
      B
      and discuss the matters, finances and accounts of Party B with, and be advised
      as to the same by, its and their officers, all at such reasonable times and
      intervals and to such reasonable extent as Party A may request.

    5.3 Corporate
      Franchises.
      Party B will do or cause to be done, all things necessary to preserve and keep
      in full force and effect its existence and its material rights, franchises
      and
      licenses.

    5.4 Compliance
      with Statutes,
      etc. Party B will comply with all applicable statutes, regulations and
      orders of, and all applicable restrictions imposed by, all governmental bodies,
      in respect of the conduct of its business and the ownership of its property,
      including without limitation, maintenance of valid and proper government
      approvals and licenses necessary to provide the services, except that such
      noncompliances could not, in the aggregate, have a material adverse effect
      on
      the business, operations, property, assets, condition (financial or otherwise)
      or prospects of Party B.

    6. NEGATIVE
      COVENANTS

    Party
      B
      covenants and agrees that, during the term of this Agreement, without the prior
      written consent of Party A.

    6.1 Equity.
      Party B will
      not issue, purchase or redeem any equity or debt securities of Party B.

    6.2 Liens.
      Party B will
      not create, incur, assume or suffer to exist any Lien upon or with respect
      to
      any property or assets (real or personal, tangible or intangible) of Party
      B
      whether now owned or hereafter acquired, provided that the provisions of this
      Clause 6.2 shall not prevent the creation, incurrence, assumption or existence
      of:

    6.2.1 Liens
      for taxes not yet
      due, or Liens for taxes being contested in good faith and by appropriate
      proceedings for which adequate reserves have been established; and

    6.2.2 Liens
      in respect of
      property or assets of Party B imposed by law, which were incurred in the
      ordinary course of business, and (x) which do not in the aggregate materially
      detract from the value of such property or assets or materially impair the
      use
      thereof in the operation of the business of Party B or (y) which are being
      contested in good faith by appropriate proceedings, which proceedings have
      the
      effect of preventing the forfeiture or sale of the property of assets subject
      to
      any such Lien.

    6.3 Consolidation,
      Merger, Sale
      of Assets, etc. Party B will not wind up, liquidate or dissolve its
      affairs or enter into any transaction of merger or consolidation, or convey,
      sell, lease or otherwise dispose of (or agree to do any of the foregoing at
      any
      future time) all or any part of its property or assets, or purchase or otherwise
      acquire (in one or a series of related transactions) any part of the property
      or
      assets (other than purchases or other acquisitions of inventory, materials
      and
      equipment in the ordinary course of business) of any Person, except that (i)
      Party B may make sales of inventory in the ordinary course of business and
      (ii)
      Party B may, in the ordinary course of business, sell equipment which is
      uneconomic or obsolete.

    6.4 Dividends.
      Party B
      will not declare or pay any dividends, or return any capital, to its
      shareholders or authorize or make any other distribution, payment or delivery
      of
      property or cash to its shareholders as such, or redeem, retire, purchase or
      otherwise acquire, directly or indirectly, for a consideration, any shares
      of
      any class of its capital stock now or hereafter outstanding (or any options
      or
      warrants issued by Party B with respect to its capital stock), or set aside
      any
      funds for any of the foregoing purposes.

    6.5 Leases.
      Party B will
      not permit the aggregate payments (including, without limitation, any property
      taxes paid as additional rent or lease payments) by Party B under agreements
      to
      rent or lease any real or personal property to exceed US $120,000 in any fiscal
      year of Party B.

    6.6 Indebtedness.
      Party B
      will not contract, create, incur, assume or suffer to exist any indebtedness,
      except accrued expenses and current trade accounts payable incurred in the
      ordinary course of business, and obligations under trade letters of credit
      incurred by Party B in the ordinary course of business, which are to be repaid
      in full not more than one (1) year after the date on which such indebtedness
      is
      originally incurred to finance the purchase of goods by Party B.

    6.7 Advances,
      Investment and
      Loans. Party B will not lend money or credit or make advances to any
      Person, or purchase or acquire any stock, obligations or securities of, or
      any
      other interest in, or make any capital contribution to, any other Person, except
      that Party A may acquire and hold receivables owing to it, if created or
      acquired in the ordinary course of business and payable or dischargeable in
      accordance with customary trade terms.

    6.8 Transactions
      with
      Affiliates. Party B will not enter into any transaction or series of
      related transactions, whether or not in the ordinary course of business, with
      any Affiliate of Party B, other than on terms and conditions substantially
      as
      favorable to Party B as would be obtainable by Party B at the time in a
      comparable arm’s-length transaction with a Person other than an Affiliate and
      with the prior written consent of Party A.

    6.9 Capital
      Expenditures.
      Party B will not make any expenditure for fixed or capital assets (including,
      without limitation, expenditures for maintenance and repairs which should be
      capitalized in accordance with generally accepted accounting principles in
      the
      PRC or in the United States) in excess of US $5,000, without the prior written
      consent of Party A.

    6.10 Modifications
      to Debt
      Arrangements, Agreements or Articles of Association. Party B will not (i)
      make any voluntary or optional payment or prepayment on or redemption or
      acquisition for value of (including, without limitation, by way of depositing
      with the trustee with respect thereto money or securities before due for the
      purpose of paying when due) any existing Indebtedness or (ii) amend or modify,
      or permit the amendment or modification of, any provision of any existing
      Indebtedness or of any agreement (including, without limitation, any purchase
      agreement, indenture, loan agreement or security agreement) relating to any
      of
      the foregoing or (iii) amend, modify or change its Articles of Association
      or
      Business License, or any agreement entered into by it, with respect to its
      capital stock, or enter into any new agreement with respect to its capital
      stock.

    6.11 Line
      of Business.
      Party B will not engage (directly or indirectly) in any business other than
      those types of Business except with the prior written consent of Party A.

    7. TERM
      AND TERMINATION

    7.1 This
      Agreement shall take
      effect on the date of execution of this Agreement and shall remain in full
      force
      and effect unless terminated pursuant to Clause 7.2 for a period of 20
      years.

    7.2 This
      Agreement may be
      terminated:

    7.2.1 by
      either Party giving
      written notice to the other Party if the other Party has committed a material
      breach of this Agreement (including but not limited to the failure by Party
      B to
      pay the Consulting Services Fee) and such breach, if capable of remedy, has
      not
      been so remedied within, in the case of breach of a non-financial obligation,
      30
      days, following receipt of such written notice;

    7.2.2 either
      Party giving written
      notice to the other Party if the other Party becomes bankrupt or is the subject
      of proceedings or arrangements for liquidation or dissolution or ceases to
      carry
      on business or becomes unable to pay its debts as they come due;

    7.2.3 by
      either Party giving
      written notice to the other Party if, for any reason, the operations of Party
      A
      are terminated;

    7.2.4 by
      either Party giving
      written notice to the other Party if the business license or any other license
      or approval material for the business operations of Party B is terminated,
      cancelled or revoked; or

    7.2.5 by
      election of Party A with
      or without reason.

    7.3 Any
      Party electing properly
      to terminate this Agreement pursuant to Clause 7.2 shall have no liability
      to
      the other Party for indemnity, compensation or damages arising solely from
      the
      exercise of such right. The expiration or termination of this Agreement shall
      not affect the continuing liability of Party B to pay any Consulting Services
      Fees already accrued or due and payable to Party A. Upon expiration or
      termination of this Agreement, all amounts then due and unpaid to Party A by
      Party B hereunder, as well as all other amounts accrued but not yet payable
      to
      Party A by Party B, shall forthwith become due and payable by Party B to Party
      A.

    8. PARTY
      A’S REMEDY UPON PARTY
      B’S BREACH

    In
      addition to the remedies provided elsewhere under this Agreement, Party A shall
      be entitled to remedies permitted under PRC laws, including without limitation,
      compensation for any direct and indirect losses arising from the breach and
      legal fees incurred to recover losses from such breach.

    9. AGENCY

    The
      Parties are independent contractors, and nothing in this Agreement shall be
      construed to constitute either Party to be the agent, Partner, legal
      representative, attorney or employee of the other for any purpose whatsoever.
      Neither Party shall have the power or authority to bind the other except as
      specifically set out in this Agreement.

    10. GOVERNING
      LAW AND
      JURISDICTION

    10.1 Governing
      Law. This
      Agreement shall be governed by, and construed in accordance with, the laws
      of
      the PRC.

    10.2 Arbitration.

    10.2.1 Any
      dispute arising from,
      out of or in connection with this Agreement shall be settled through friendly
      consultations between the Parties. Such consultations shall begin immediately
      after one Party has delivered to the other Party a written request for such
      consultation. If within ninety (90) days following the date on which such notice
      is given, the dispute cannot be settled through consultations, the dispute
      shall, upon the request of any Shareholder with notice to the other Party,
      be
      submitted to arbitration in China under the auspices of China International
      Economic and Trade Arbitration Commission (the “CIETAC”). The Parties
      shall jointly appoint a qualified interpreter for the arbitration proceedings
      and shall be responsible for sharing in equal portions the expenses incurred
      by
      such appointment.

    10.2.2 Number
      and Selection
      ofArbitrators. There shall be three (3) arbitrators. Party B shall select
      one (1) arbitrator and Party A shall select one (1) arbitrator, and both
      arbitrators shall be selected within thirty (30) days after giving or receiving
      the demand for arbitration. Such arbitrators shall be freely selected, and
      the
      Parties shall not be limited in their selection to any prescribed list. The
      chairman of the CIETAC shall select the third arbitrator. If a Party does not
      appoint an arbitrator who has consented to participate within thirty (30) days
      after the selection of the first arbitrator, the relevant appointment shall
      be
      made by the chairman of the CIETAC.

    10.2.3 Language.
      Unless
      otherwise provided by the arbitration rules of CIETAC, the arbitration
      proceeding shall be conducted in English. The arbitration tribunal shall apply
      the arbitration rules of the CIETAC in effect on the date of the signing of
      this
      Agreement. However, if such rules are in conflict with the provisions of this
      Clause, including the provisions concerning the appointment of arbitrators,
      the
      provisions of this Clause  shall prevail.

    10.3 Cooperation
      Disclosure. Each Party shall cooperate with the other Party in making
      full disclosure of and providing complete access to all information and
      documents requested by the other Party in connection with such proceedings,
      subject only to any confidentiality obligations binding on such Parties.

    10.4 Jurisdiction
      of the
      Arbitration Award Enforcement. The arbitration award shall be final and
      binding upon all parties. It may be entered into by any court having
      jurisdiction, or application may be made to such court for a judicial
      recognition of the award or any order of enforcement thereof.

    10.5 Continuing
      Obligations. During the period when a dispute is being resolved, the
      Parties shall in all other respects continue their implementation of this
      Agreement.

    11. ASSIGNMENT

    No
      part
      of this Agreement shall be assigned or transferred by Party B without the prior
      written consent of Party A. Any such assignment or transfer shall be void.
      Party
      A, however, may assign its rights and obligations.

    12. NOTICES

    Notices
      or other communications required to be given by any party pursuant to this
      Agreement shall be written in English and Chinese and delivered personally
      or
      sent by registered mail or postage prepaid mail or by a recognized courier
      service or by facsimile transmission to the address of each relevant party
      or
      both parties set forth below or other address of the party or of the other
      addressees specified by such party from time to time. The date when the notice
      is deemed to be duly served shall be determined as follows: (a) a notice
      delivered personally is deemed duly served upon the delivery; (b) a notice
      sent
      by mail is deemed duly served the tenth (10th)
      day
      after the date when the air registered mail with postage prepaid has been sent
      out (as is shown on the postmark), or the fourth (4th)
      day
      after the delivery date to the internationally recognized courier service
      agency; and (c) a notice sent by facsimile transmission is deemed duly served
      upon the receipt time as is shown on the transmission confirmation of relevant
      documents.

    Party
      A:                   
Orient Come Holdings Limited

    
      	
              Address:

            	
              Room
                810, BlockC2, Oriental Plaza,

            
	

            	
              No.
                1 ChangAn Street

            

    

    

    
      	

            	
              Beijing,
                China 100738

            

    

    

    Party
      B:                      
Beijing K's Media Advertising Ltd. Co.

    Address:                      Room
      211, No. 31 YanXi Street

                 
YanXi
      Economic Zone, Huai Rou
      District

                  Beijing,
      China

    

    

    13. GENERAL

    13.1 The
      failure to exercise or
      delay in exercising a right or remedy under this Agreement shall not constitute
      a waiver of the right or remedy or waiver of any other rights or remedies and
      no
      single or partial exercise of any right or remedy under this Agreement shall
      prevent any further exercise of the right or remedy or the exercise of any
      other
      right or remedy.

    13.2 Should
      any clause or any
      part of any Clause contained in this Agreement be declared invalid or
      unenforceable for any reason whatsoever, all other clauses or parts of clauses
      contained in this Agreement shall remain in full force and effect.

    13.3 This
      Agreement constitutes
      the entire agreement between the Parties relating to the subject matter of
      this
      Agreement and supersedes all previous agreements.

    13.4 No
      amendment or variation
      of this Agreement shall be valid unless it is in writing and signed by or on
      behalf of each of the Parties.

    13.5 This
      Agreement shall be
      executed in two originals in Chinese. This Agreement has both an English version
      and a Chinese version. Both versions are equally authentic. Where a comparison
      of the authentic texts of both versions of this Agreement renders a difference
      in meaning, the meaning which best reconciles the texts, having regard to the
      object and purpose of this Agreement shall be adopted.

    

     

    SIGNATURE
      PAGE

    IN
      WITNESS WHEREOF, both
      parties hereto have caused this Business Cooperation Agreement to be duly
      executed by their legal representatives and duly authorized representatives
      on
      their behalf as of the date first set forth above.

     

    
      
        	 PARTY
                A: 	Orient
                Come Holdings Limited 	 
	 	 	 	 
	
                 

              	
                By:
                  

              	/s/ Ke
                Wang                                                             
                	 
	 	 	Name Ke
                Wang                                            
                	 
	 	 	Title President	 
	 	 	 	 

      

    

                                                                   
      

    

    
      
        	 PARTY
                B: 	Beijing
                K's Media Advertising Ltd. Co. 	 
	 	 	 	 
	
                 

              	
                By:
                  

              	/s/ Kun
                (James)
                Wei                                                                   
                	 
	 	 	Name Kun
                (James)
                Wei                                                        
                	 
	 	 	Title Presidentexhibit_10-4.htm

    Exhibit
      10.4    Equity
      Pledge Agreement, Dated as of December 23, 2007.

    

     

    EQUITY
      PLEDGE AGREEMENT

    This
      Equity Pledge Agreement (hereinafter this “Agreement”) is dated
      December 23, 2007, and is entered into in Beijing, China between Orient Come
      Holdings Limited, a company incorporated under the laws of the British Virgin
      Islands, located at Room 810, Block C2, Oriental Plaza, No. 1 ChangAn Street,
      Beijing, China 100738 (“Pledgee”), and each
      of the shareholders of Party B listed on the signature pages hereto (each "Pledgor" and
      collectively, the “Pledgors”), and
      Beijing K's Media Advertising Ltd. Co., a limited liability company organized
      under the laws of the PRC (“Party B” or “Media”),
      with a
      registered address at 211 No. 31 YanXi Street, YanXi Economic Zone, Huai Rou
      District, Beijing, China.

     

    RECITALS

    1.         
      The Pledgee is a corporation incorporated under the laws of the British Virgin
      Islands that has expertise in the outdoor media business.

    2.         
      The Pledgors are each shareholders of Media. The Pledgors collectively own
      100%
      of the outstanding equity interests of Media. 

    3.         
      Pledgee and Media have executed a Consulting Services Agreement (hereinafter
      “Business Cooperation
      Agreement” or “Services
      Agreement”)
      concurrently herewith. Based on this Agreement, Media shall pay technical
      consulting and service fees (hereinafter the “Consulting Services
      Fees” or “Services
      Fees”) to
      Pledgee for offering consulting and related services.

    4.         
      In order to ensure that Media will perform its obligations under the Consulting
      Services Agreement, and in order to provide an additional mechanism for the
      Pledgee to enforce its rights to collect the Consulting Services Fees from
      Media, the Pledgors agree to pledge all their equity interest in Media as
      security for the performance of the obligations of Media under the Consulting
      Services Agreement and the payment of Consulting Services Fees under such
      agreement.

    NOW
      THEREFORE, the Pledgee,
      Media and the Pledgors through mutual negotiations hereby enter into this
      Agreement based upon the following terms:

    1. Definitions
      and
      Interpretation. Unless otherwise provided in this Agreement, the
      following terms shall have the following meanings:

    1.1 "Pledge”
refers
      to the
      full content of Section 2 hereunder.

    1.2 “Equity
      Interest”
refers to all the equity interest in Media legally held by the Pledgors.

    1.3 “Term
      of Pledge”
refers to the period provided for under Section 3.2 hereunder.

    1.4 “Event
      of Default”
refers to any event in accordance with Section 7.1 hereunder.

    1.5 “Notice
      of Default”
refers to the notice of default issued by the Pledgee in accordance
      with this
      Agreement.

    2. Pledge.
      The Pledgors
      agree to pledge their equity interest in Media to the Pledgee (“Pledged Collateral”)
      as a security for the obligations of Media under the Consulting Services
      Agreement. Pledge under this Agreement refers to the rights owned by the
      Pledgee, who shall be entitled to a priority in receiving payment by the
      evaluation or proceeds from the auction or sale of the equity interest pledged
      by the Pledgors to the Pledgee.

    3. Term
      of
      Pledge.

    3.1 The
      Pledge shall take
      effect as of the date when the Pledge of the equity interest under this
      Agreement is recorded in the Register of Shareholders of Media. The term of
      the
      Pledge shall last until all the obligations under the Business Cooperation
      Agreement have been satisfied by Media in full to the sole satisfaction of
      Pledgee.

    3.2 During
      the term of the
      Pledge, the Pledgee shall be entitled in accordance with PRC laws to vote,
      control, sell, or dispose of the pledged assets in accordance with this
      Agreement in the event that Pledgors do not perform their obligation under
      the
      Consulting Services Agreement and Media fails to pay the Consulting Services
      Fees in accordance with the Consulting Services Agreement.

    4. Physical
      Possession of
      Documents.

    4.1 During
      the term of Pledge
      under this Agreement, the Pledgors shall deliver the physical possession of
      their certificates representing shares of capital stock of Media (“Share Certificates”)
      to the Pledgee.

    4.2 The
      Pledgee shall be
      entitled to collect any and all dividends for declared or paid in connection
      with the equity interest.

    4.3 The
      Pledge under this
      Agreement shall be recorded in the Register of Shareholders of Media. The
      Pledgors shall, within ten (10) days after the date of this Agreement, process
      the registration procedures with Beijing Administration for Industry and
      Commerce concerning the Pledge.

    5. Representation
      and
      Warranties of Pledgors.

    5.1 The
      Pledgors are the legal
      owners of the equity interest pledged.

    5.2 The
      Pledgors have not
      pledged the equity interest to any other party, and or the equity interest
      is
      not encumbered to any other person except for the Pledgee.

    6. Covenants
      of
      Pledgors.

    6.1 During
      the effective term
      of this Agreement, the Pledgors promise to the Pledgee for its benefit that
      the
      Pledgors shall:

    6.1.1 Not
      transfer or assign the
      equity interest, create or permit to create any pledges which may have an
      adverse effect on the rights or benefits of the Pledgee without prior written
      consent from the Pledgee.

    6.1.2 Comply
      with and implement
      laws and regulations with respect to the pledge of rights; present to the
      Pledgee the notices, orders or suggestions with respect to the Pledge issued
      or
      made by the competent authority within five (5) days upon receiving such
      notices, orders or suggestions; and comply with such notices, orders or
      suggestions; or object to the foregoing matters at the reasonable request of
      the
      Pledgee or with consent from the Pledgee.

    6.1.3 Timely
      notify the Pledgee
      of any events or any received notices, which may affect the Pledgor's equity
      interest or any part of its right, and any events or any received notices,
      which
      may change the Pledgor's any warranty and obligation under this Agreement or
      affect the Pledgor's performance of its obligations under this Agreement.

    6.2 The
      Pledgors agree that the
      Pledgee's right to the Pledge obtained from this Agreement shall not be
      suspended or inhibited by any legal procedure launched by the Pledgor or any
      successors of the Pledgor or any person authorized by the Pledgor or any such
      other person.

    6.3 The
      Pledgors promise to the
      Pledgee that in order to protect or perfect the security for the payment of
      the
      Services Fees, the Pledgors shall execute in good faith and cause other parties
      who have interests in the Pledge to execute all the title certificates,
      contracts, and perform actions and cause other parties who have interests to
      take action, as required by the Pledgee; and make access to exercise the rights
      and authorization vested in the Pledgee under this Agreement.

    6.4 The
      Pledgors promise to the
      Pledgee that they will execute all amendment documents (if applicable and
      necessary) in connection with any registration of the Pledge or any transfer
      of
      the Share Certificates with the Pledgee or its designated person (natural person
      or a legal entity), and provide the notice, order and decision to the Pledgee
      as
      necessary, within a reasonable amount of time upon request.

    6.5 The
      Pledgors promise to the
      Pledgee that they will comply with and perform all the guarantees, covenants,
      warranties, representations and conditions for the benefits of the Pledgee.
      The
      Pledgors shall compensate all the losses suffered by the Pledgee as a result
      of
      the Pledgors failing perform or fully perform their guarantees, covenants,
      warranties, representations and conditions.

    7. Events
      Of
      Default.

    7.1 The
      following events shall
      be regarded as the events of default:

    7.1.1 This
      Agreement is deemed
      illegal by a governing authority in the PRC, or the Pledgor is not capable
      of
      continuing to perform the obligations herein due to any reason except force
      majeure;

    7.1.2 Media
      fails to make full
      payment of the Services Fees as scheduled under the Service Agreement;

    7.1.3 A
      Pledgor makes any
      materially false, inaccurate, incomplete or misleading representations or
      warranties under Section 5 herein, and/or any Pledgor breaches any warranties
      under Section 5 herein;

    7.1.4 A
      Pledgor breaches the
      covenants under Section 6 herein;

    7.1.5 A
      Pledgor breaches the term
      or condition herein;

    7.1.6 A
      Pledgor waives the
      pledged equity interest or transfers or assigns the pledged equity interest
      without prior written consent of the Pledgee;

    7.1.7 Media
      is incapable of
      repaying in general debt or other debt;

    7.1.8 The
      property of a Pledgor
      is adversely affected causing the Pledgee to believe that the capability of
      any
      Pledgors to perform its obligations herein is adversely affected;

    7.1.9 The
      successors or agents of
      Media are only able to perform a portion of or refuse to perform the payment
      obligations under the Services Agreement;

    7.1.10 The
      breach of the other
      terms by action or inaction under this Agreement by a Pledgor.

    7.2 The
      Pledgors shall
      immediately give a written notice to the Pledgee if a Pledgor is aware of or
      discovers that any event under Section 7.1 herein or any event that may result
      in the foregoing events has occurred or is likely to occur.

    7.3 Unless
      the event of default
      under Section 7.1 herein has been resolved to the Pledgee's sole satisfaction,
      the Pledgee, at any time when the event of default occurs or thereafter, may
      give a written notice of default to the Pledgors and require the Pledgors to
      immediately make full payment of the outstanding Service Fees under the Service
      Agreement and other payables or exercise other rights in accordance with Section
      8 herein.

    8. Exercise
      of
      Remedies.

    8.1 Authorized
      Action by Secured
      Party. The
      Pledgors hereby irrevocably appoint Pledgee the attorney-in-fact of the Pledgors
      for the purpose of carrying out the security provisions of this Agreement and
      taking any action and executing any instrument that the Pledgee may deem
      necessary or advisable to accomplish the purposes of this Agreement in
      accordance with applicable law. If an event of default occurs, or is continuing,
      Pledgee shall have the right to exercise the following rights and powers:

    (a) Collect
      by legal
      proceedings or otherwise and endorse and/or receive all payments, proceeds
      and
      other sums and property now or hereafter payable on or on account of the Pledged
      Collateral;

    (b) Enter
      into any extension,
      reorganization, deposit, merger, consolidation or other agreement pertaining
      to,
      or deposit, surrender, accept, hold or apply other property in exchange for
      the
      Pledged Collateral;

    (c) Transfer
      the Pledged
      Collateral to its own or its nominee's name;

    (d) Make
      any compromise or
      settlement, and take any action it deems advisable, with respect to the Pledged
      Collateral;

    (e) Notify
      any obligor with
      respect to any Pledged Collateral to make payment directly to the
      Pledgee;

    (f) All
      rights of the Pledgors
      to exercise the voting and other consensual rights it would otherwise be
      entitled to exercise without any action or the giving of any notice shall cease,
      and all such rights shall thereupon become vested in the Pledgee;

    (g) All
      rights of the Pledgors
      to receive distributions with respect to the Pledged Collateral which it would
      otherwise be authorized to receive and retain shall cease and all such rights
      shall thereupon become vested in the Pledgee; and

    (h) The
      Pledgors shall execute
      and deliver to the Pledgee appropriate instruments as the Pledgee may request
      in
      order to permit the Pledgee to exercise the voting and other rights, which
      it
      may be entitled to exercise and to receive all distributions which it may be
      entitled to receive.

    The
      Pledgors hereby grant to Pledgee an exclusive, irrevocable power of attorney,
      with full power and authority in the place and stead of the Pledgors to take
      all
      such action permitted under this Section 8.1. Such
      power of attorney shall be effective, automatically and without the necessity
      of
      any action (including any transfer of any Pledged Collateral) by any person,
      upon the occurrence and continuance of an event of default. Pledgee shall not
      have any duty to exercise any such right or to preserve the same and shall
      not
      be liable for any failure to do so or for any delay in doing so.

    8.2 Events
      of default;
      Remedies. Upon the occurrence of an event of default, Pledgee may,
      without notice to or demand on the Pledgors and in addition to all rights and
      remedies available to Pledgee, at law, in equity or otherwise, do any of the
      following:

    (a) Require
      the Pledgors to
      immediately pay all outstanding unpaid amounts due under the Services
      Agreement;

    (b) Foreclose
      or otherwise
      enforce Pledgee's security interest in any manner permitted by law or provided
      for in this Agreement;

    (c) Sell
      or transfer the rights
      or otherwise dispose of any Pledged Collateral at one or more public or private
      sales at Pledgee's place of business or any other place or places, whether
      or
      not such Pledged Collateral is present at the place of sale, for cash or credit
      or future delivery, on such terms and in such manner as Pledgee may
      determine;

    (d) Terminate
      this Agreement
      pursuant to Section 11.

    (e) Personally,
      or by agents or
      attorneys, immediately take possession of the Pledged Collateral or any part
      thereof, from the Pledgors or any other person who then has possession of any
      part thereof with or without notice or process of law;

    (f) Demand,
      sue for, collect or
      receive any money or property at any time payable or receivable in respect
      of
      the Pledged Collateral;

    (g) Sell
      or otherwise
      liquidate, or direct the Pledgors to sell, assign, transfer or otherwise
      liquidate the Pledged Collateral or any part thereof, and take possession of
      the
      proceeds of any such sale or liquidation;

    (h) Exercise
      any and all rights
      as beneficial and legal owner of the Pledged Collateral, including, without
      limitation, perfecting assignment of and exercising any and all voting,
      consensual and other rights and powers with respect to any Pledged
      Collateral;

    (i) Exercise
      any and all rights
      as beneficial and legal owner of the Pledged Collateral, including, without
      limitation, perfecting assignment of and exercising any and all voting,
      consensual and other rights and powers with respect to any Pledged Collateral;
      and

    (j) All
      the rights and remedies
      of a secured party upon default under applicable law.

    8.3 The
      Pledgee shall give a
      notice of default to the Pledgors when the Pledgee exercises its remedies under
      this Agreement.

    8.4 Subject
      to Section 7.3, the
      Pledgee may exercise its remedies under this Agreement at any time after the
      Pledgee gives a notice of default in accordance with Section 7.3 or
      thereafter.

    8.5 The
      Pledgee is entitled to
      priority in receiving payment by the evaluation or proceeds from the auction
      or
      sale of whole or part of the equity interest pledged herein in accordance with
      legal procedure until the unpaid Services Fees under the Services Agreement
      are
      repaid.

    8.6 The
      Pledgor shall not
      hinder the Pledgee from exercising its rights in accordance with this Agreement
      and shall give necessary assistance so that the Pledgee may exercise its rights
      in full.

    9. Assignment.

    9.1 The
      Pledgors shall not
      donate or transfer rights and obligations herein without prior written consent
      from the Pledgee.

    9.2 This
      Agreement shall be
      binding upon each of the Pledgors and his, her or its successors and be binding
      on the Pledgee and its successor and assignee.

    9.3 The
      Pledgee may transfer or
      assign any of all of its rights and obligations under the Service Agreement
      to
      any individual specified by it (natural person or legal entity) at any time.
      In
      this case, the assignee shall enjoy and undertake the same rights and
      obligations herein of the Pledgee as if the assignee is a party hereto. When
      the
      Pledgee transfers or assigns the rights and obligations under the Service
      Agreement, and such transfer shall only be subject to a written notice serviced
      to Pledgors, and at the request of the Pledgee, the Pledgors shall execute
      the
      relevant agreements and/or documents with respect to such transfer or
      assignment.

    9.4 In
      the event of a change in
      control of the Pledgee resulting in the transfer or assignment of this
      Agreement, the successor parties to the pledge shall execute a new pledge
      agreement.

    10. Formalities,
      Fees and Other
      Charges.

    10.1 The
      Pledgors shall be
      responsible for all the fees and actual expenses in relation to this Agreement
      including but not limited to legal fees, cost of production, stamp tax and
      any
      other taxes and charges. If the Pledgee pays the relevant taxes in accordance
      with applicable law, the Pledgors shall fully indemnify the Pledgee such taxes
      paid by the Pledgee.

    10.2 The
      Pledgors shall be
      responsible for all the fees (including but not limited to any taxes,
      formalities fees, management fees, litigation fees, attorney's fees, and various
      insurance premiums in connection with disposition of Pledge) incurred by the
      Pledgors for the reason that the Pledgors fail to pay any payable taxes, fees
      or
      charges for other reasons which cause the Pledgee to recourse by any means
      or
      ways.

    11. Force
      Majeure.

    11.1 “Force
      Majeure,” shall
      include but not be limited to acts of governments, acts of nature, fire,
      explosion, typhoon, flood, earthquake, tide, lightning, war, refers to any
      unforeseen events beyond the party's reasonable control and cannot be prevented
      with reasonable care. However, any shortage of credit, capital or finance shall
      not be regarded as an event beyond a Party's reasonable control. The affected
      party by Force Majeure shall notify the other party of such event resulting
      in
      exemption promptly.

    11.2 In
      the event that the
      affected party is delayed in or prevented from performing its obligations under
      this Agreement by Force Majeure, only within the scope of such delay or
      prevention, the affected party will not be responsible for any damage by reason
      of such a failure or delay of performance. The affected party shall take
      appropriate means to minimize or remove the effects of Force Majeure and attempt
      to resume performance of the obligations delayed or prevented by the event
      of
      Force Majeure. After occurrence of an event of Force Majeure, when such event
      or
      condition ceases to exist, both parties agree to resume the performance of
      this
      Agreement with their best efforts.

    12. Confidentiality.
      The
      parties of this Agreement acknowledge and make sure that all the oral and
      written materials exchanged relating to this contract are confidential. All
      the
      parties have to keep them confidential and can not disclose them to any other
      third party without other parties' prior written approval, unless: (a) the
      public know and will know the materials (not because of the disclosure by any
      contractual party); (b) the disclosed materials are required by laws or stock
      exchange rules; or(c) materials relating to this transaction are disclosed
      to
      parties' legal consultants or financial advisors, however, who have to keep
      them
      confidential as well. Disclosure of confidential information by Employees or
      hired institutions of the parties is deemed as the act by the parties,
      therefore, subjecting them to liability.

    13. Dispute
      Resolution.

    13.1 This
      Agreement shall be
      governed by and construed in accordance with the PRC law.

    13.2 The
      parties shall strive to
      settle any dispute arising from the interpretation or performance, or in
      connection with this Agreement through friendly consultation. In case no
      settlement can be reached through consultation, each party can submit such
      matter to China International Economic and Trade Arbitration Commission
      (“CIETAC”) for arbitration. The arbitration shall follow the current rules of
      CIETAC, and the arbitration proceedings shall be conducted in Chinese and shall
      take place in Beijing. Any resulting arbitration award shall be final and
      binding upon the parties.

    14. Notices.
      Any notice
      which is given by the parties hereto for the purpose of performing the rights
      and obligations hereunder shall be in writing. Where such notice is delivered
      personally, the time of notice is the time when such notice actually reaches
      the
      addressee; where such notice is transmitted by facsimile, the notice time is
      the
      time when such notice is transmitted. If such notice does not reach the
      addressee on business date or reaches the addressee after the business time,
      the
      next business day following such day is the date of notice. The delivery place
      is the address first written above of the parties hereto or the address advised
      in writing including via facsimile from time to time.

    15. Entire
      Contract. All
      Parties agree that this Agreement constitute the entire agreement of the Parties
      with respect to the subject matter therein upon its effectiveness and supersedes
      and replaces all prior oral and/or written agreements and understandings
      relating to this Agreement.

    16. Severability.
      Any
      provision of this Agreement which is invalid or unenforceable because of
      inconsistent with the relevant laws shall, as to that jurisdiction, be
      ineffective to the extent of such invalidity or unenforceability, without
      affecting in any way the remaining provisions hereof.

    17. Appendices.
      The
      appendices to this Agreement are entire and integral part of this
      Agreement.

    18. Amendment
      or
      Supplement.

    18.1 Parties
      may amend and
      supply this Agreement with a written agreement, provided that such amendment
      shall be duly executed and signed by the Pledgee, Media, and holders of a
      majority of the shares of Media held by the Pledgors, and such amendment shall
      thereupon become a part of this Agreement and shall have the same legal effect
      as this Agreement.

    18.2 This
      Agreement and any
      amendments, modification, supplements, additions or changes hereto shall be
      in
      writing and come into effect upon being executed and sealed by the parties
      hereto.

    19. Counterparts.
      This
      Agreement may be executed by the Parties in counterparts, each Party holds
      one
      counterpart, and each original has the same legal effect.

    20. Effectiveness
      and
      Term. The Agreement is effective as of the date first set forth above and
      from the date when the Pledge is recorded on the Register of Shareholders of
      Media.

    

     

    SIGNATURE
      PAGE

    IN
      WITNESS WHEREOF, each party
      hereto has caused this Agreement duly executed by itself or a duly authorized
      representative on its behalf as of the date first written above.

    
      
        	 PLEDGEE: 	Orient
                Come Holdings Limited 	 
	 	 	 	 
	
                 

              	
                By:
                  

              	/s/ Ke
                Wang                                                                   
                	 
	 	 	Name Ke
                Wang                                                  
                	 
	 	 	Title President   	 
	 	 	 	 

      

    

                                                                   
      

    
      
        	 PARTY
                B:	 Beijing
                K's Media Advertising Ltd. Co.
                	 
	 	 	 	 
	
                 

              	
                By:
                  

              	/s/ Kun
                (James)
                Wei                                                                         
                	 
	 	 	Name Kun
                (James) Wei	 
	 	 	Title President                                                  
                	 
	 	 	 	 

      

    

    

                                                                                     

    

    PLEDGORS:

    

    SHAREHOLDERS
      OF PARTY B:

    /s/
      Kun (James)
      Wei                                                                   

    Name:                 
      Kun (James)
      Wei

    (PRC
      ID
      Card
      No.:                                                
06825970
      )

    
      	

            	
              Shares
                of Beijing K's Media Advertising Ltd. Co. owned by Kun (James) Wei:  
                50%

            

    

    

    

    

    /s/Yong
      Lu                                                             

    Name:                 
      Yong
      Lu                                                  

    (PRC
      ID
      Card No.:11010219670607195)

    
      	

            	
              Shares
                of Beijing K's Media Advertising Ltd. Co. owned by Yong Lu:  
                50%

            

    

    
 

     

    Appendix
      I

    RESOLUTIONS
      OF THE GENERAL SHAREHOLDERS’

    MEETING
      OF BEIJING K'S MEDIA ADVERTISING LTD. CO.

    WHEREAS,
      that certain significant shareholders of Beijing K's Media Advertising Ltd.
      Co.
      have agreed to pledge their shares of the company under an Equity Pledge
      Agreement dated December 23, 2007; and

    WHEREAS,
      it is in the best interest of the Company for the shareholders to enter into
      such Equity Pledge Agreement.

    RESOLVED,
      that the pledge of shares held by the shareholders of the company under the
      Equity Pledge Agreement is hereby approved.

    This
      resolution was executed and submitted on December 23, 2007 by the undersigned
      shareholders:

     

     

    SHAREHOLDERS:

    Signature:                                                                           

    

    Name:                                                                           

    

    Address:                                                                           

    

    

    

    ID
      Card
      No.:                                                                           

    

    Telephone:                                                                           

    

    Facsimile:

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