Document:

ex10_1.htm

  

    English
      Translation of an Agreement written in Chinese

    

    

    Agreement
      for Co-operation in Business

    

    

    
      Made
        between

      

      Shanghai
        Quo Advertising Company Limited      (hereinafter
        called “Party A”)

      

      

      Wuhan
        Weiao Advertising Company
        Limited      (hereinafter called “Party
        B”)

      

      
        In
          accordance with the (Code of Law of the People’s Republic of China Governing
          Contracts) the (Code of Law of the People’s Republic of China Governing
          Advertising Activities), and all other relevant laws and regulations and
          based
          on the principles of equity voluntarity and conciliation Party A and Party
          B
          have reached consensus and agreement with each other on their co-operation
          for
          the business operations and application of an outdoor visual advertisement
          LED
          Panel to be installed at Wuhan Gongyi Tower (“Building”) situated in Wuhan
          Zhongshan Road.  The parties have made the following agreement so that
          they may abide by it :-

         

      

    

    Section
      1  Representations and Covenants made respectively by the
      Parties

    

    
      	
              1.

            	
              Representations
                and Covenants made by Party A :-

            

    

    

    
      	
               

            	
              (1)

            	
              Party
                A is a corporate body incorporated in accordance with the law and
                is
                subsisting effectively;

            

    

    

    
      	
               

            	
              (2)

            	
              Party
                A has all the relevant rights and capacity to enter into and perform
                this
                Agreement and shall retain such right and capacity throughout the
                subsistence of this Agreement;

            

    

    

    
      	
               

            	
              (3)

            	
              The
                signing and performance of this Agreement by Party A shall not constitute
                any contravention of any law, regulation, governmental policy or
                any other
                agreement or promise which such party is under an obligation to
                perform;

            

    

    

    
      	
               

            	
              (4)

            	
              The
                representative of Party A who signs this Agreement on its behalf
                has
                been
                duly authorized to do so by Party A in accordance with its internal
                regulations.

            

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    
 

    
      	
              2.

            	
              Representations
                and Covenants made by Party B :-

            

    

    

    
      	
               

            	
              (1)

            	
              Party
                B is a corporate body incorporated in accordance with the law and
                is
                subsisting effectively;

            

    

    

    
      	
               

            	
              (2)

            	
              Party
                B has all the relevant rights and capacity to enter into and perform
                this
                Agreement and shall retain such right and capacity throughout the
                subsistence of this Agreement;

            

    

    

    
      	
               

            	
              (3)

            	
              The
                signing and performance of this Agreement by Party B shall not constitute
                any contravention of any law, regulation, governmental policy or
                any other
                agreement or promise which such party is under an obligation to
                perform;

            

    

    

    
      	
               

            	
              (4)

            	
              Party
                B owns the exclusive right for the operation of business regarding
                the
                outdoor visual advertisement LED panel to be provided and installed
                according to this Agreement and is entitled to the relevant approval
                papers for the same ( refer to Appendix 1
                hereto).

            

    

    

    
      	
               

            	
              (5)

            	
              The
                representative of Party B who signs this Agreement on its behalf
                has been
                duly authorized to do so by Party B in accordance with its internal
                regulations.

            

    

    

    
      	
              3.

            	
              Any
                misrepresentation or inaccuracy in respect of the above representations
                and covenants shall be regarded as a fundamental breach of contract
                on the
                part of the defaulting party.

            

    

    

    

    Section
      2  The Rights and Obligations of Party A

    

    
      	
              1.

            	
              Party
                A shall in accordance with the applications submitted by Party B
                to the
                relevant authorities set up and install at an outdoor location along
                Wuhan
                Zhongshan Road (cross street Minsheng Road) a visual advertisement
                LED
                panel of 200 square meters in dimension, the substantive measurements
                of
                the dimension of the LED panel shall be confirmed in writing upon
                an
                inspection to be held on site and the substantive location for the
                situation of the LED panel will be in accordance with Appendix 2
                hereto.

            

    

    

    
      	
              2.

            	
              Party
                A shall bear the cost and expenses in relation to the setting up,
                above
                ground installation,
                consolidation and tuning of the advertisement LED panel and also
                the cost
                and expenses in relation to the co-ordination and management of
                advertising material, publication of such material and the electricity
                charges for the operation of the advertisement LED panel. Party B
                is under
                an obligation to provide the requisite conditions for the relevant
                work of
                Party A (except for the consolidation work) and to provide all reasonable
                assistance in the co-ordination of the
                work.

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    

    
      	
              3.

            	
              Party
                A shall provide details of the external appearance and dimensions
                of the
                Panel and the specifications for the construction of the foundation
                of the
                Panel (with information regarding wiring and electricity connection)
                to
                enable Party B to submit the relevant information for the approval
                of the
                relevant authority, the substantive specifications are included hereunder
                in Appendix 3 hereto.

            

    

    

    
      	
              4.

            	
              Party
                A shall have the ownership of the property of the LED advertisement
                Panel
                to be set up using the investment of Party A hereunder. Party A shall
                also
                have the right to use the location of this LED Panel for the placing
                of
                advertisement for a period of Five Years counting from the 60th
                day after
                the signing of the contract. If Party A has been able to complete
                its work
                within the period of 60 days then the computing of the relevant period
                shall start instead from the date on which both parties have signed
                a
                written certificate to confirm the inspection and acceptance of the
                Panel
                in good order.(see Appendix 4 hereto). If the relevant work has been
                delayed due to conditions pertaining to the site of construction
                (such as
                the consolidation work required) or if the progress of work is affected
                by
                a delay on the part of Party B in the provision of the requisite
                approval
                papers for the relevant work then the computing of the relevant period
                shall start instead from the date on which both parties have signed
                a
                written certificate to confirm the inspection and acceptance of the
                Panel
                in good order.

            

    

    

    
      	
              5.

            	
              Party
                A shall commence work on the foundation (including wiring and electrical
                connection) for the outdoor LED Panel and the setting up of the LED
                advertisement Panel once Party B has completed the process of obtaining
                the relevant approval for the commencement of work. Party B agrees
                to
                allow Party A the work period of 60 days to complete the work (counting
                from the date of signing of the contract). If the relevant work has
                exceeded 60 days due to conditions pertaining to the site of construction
                or due to the causes attributable to Party B then the computing of
                the
                relevant work period shall start instead from the date on which both
                parties have signed a written certificate to confirm the inspection
                and
                acceptance of the Panel in good
                order.

            

    

    

    
      	
              6.

            	
              Party
                A shall not publish or dissipate any material through the media of
                the
                visual advertisement LED Panel mentioned above in this contract which
                is
                expressly prohibited
                by the laws or regulations of the People’s Republic of China and shall
                bear full responsibility for all legal liability arising from such
                publication.or
                dissipation.

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    

    
      	
              7.

            	
              Party
                A shall bear all the debts and obligations owing to and towards its
                advertising customers which arise from its relevant business hereunder
                which is owned and operated solely by Party A
                itself.

            

    

    

    
      	
              8.

            	
              Party
                A shall bear responsibility for liability in relation to the safety
                of the
                advertising media and installation hereunder. Party A shall bear
                the
                losses and damages caused by such media or installation to the person
                or
                property of other parties or in relation to the cleaning of the LED
                Panel
                or similar courses of event. The liability for personal injury claims
                or
                claims for proprietary losses or damage arising in relation to the
                installation, consolidation and maintenance work hereunder, or in
                the
                courses of the publication, dissipation or monitoring of the
                advertisements shall be borne by the party who is responsible for
                the
                relevant work. Third parties may only claim against the party responsible
                hereunder for compensation.

            

    

    

    
      	
              9.

            	
              In
                the event of both parties hereto terminating their co-operation during
                the
                subsistence of this Agreement or in the event of Party A declining
                to
                renew its contract after the expiration of the term of contract hereunder
                Party A shall dismantle and remove the outdoor visual advertisement
                LED
                Panel within 20 days and clean up the site or otherwise sell the
                Panel to
                Party B at a discount. Party B is entitled to reclaim and take back
                the
                advertisement site on the expiration of such
                period.

            

    

    

    Section
      3  Rights and Obligations of Party B

    

    
      	
              1.

            	
              Party
                B shall be responsible for co-ordinating with relevant authorities
                and
                making applications to obtain and obtaining all the relevant approvals
                from relevant government departments and authorities concerning the
                project in this Agreement.  If Party B should fail to obtain all
                such approvals from the Municipal Management Bureau in respect of
                the site
                location of the visual advertisement LED Panel mentioned above (as
                confirmed in writing by Party A) by 10th
                October,
                2007 Party A shall be entitled to unilaterally terminate this
                Agreement.  If the parties hereto shall nevertheless through
                negotiation agree in writing to extend the time for obtaining such
                approval then Party B must continue with its effort to obtain all
                such
                approval within the extended period of time under such new
                agreement.

            

    

    

    
      	
              2.

            	
              Party
                B shall ensure that all the examination and scrutinizing procedures
                of the
                Municipal Management Bureau and other relevant authorities will be
                completed before 31st
                August,
                2007so as to ensure that Party A will be able to commence working
                on the building of foundation for the LED Panel mentioned above as
                confirmed by Party A in writing and with electricity supply connected
                to
                the location.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
              3.

            	
              Party
                B’s obtaining of all requisite approvals from the relevant authorities
                for
                the works in the project hereunder shall be completed no later than
                31st
                August, 2007.

            

    

    

    
      	
              4.

            	
              Party
                B shall be responsible to meet all needs for co-ordination and
                communication with the owner and/or management office of the building
                at
                which the project hereunder is located and ensure that Party A shall
                be
                entitled to have independent, exclusive and complete utilization
                of the
                LED Panel. Party B shall bear all the fees to be charged for the
                use of
                such location.

            

    

    

    
      	
              5.

            	
              Party
                B shall be responsible to co-ordinate the work of Party A for the
                daily
                maintenance and repair of the system in the project
                hereunder.

            

    

    

    
      	
              6.

            	
              Party
                B shall not engage in advertising business within the same district
                at
                which the visual LED Panel under this contract is located. Party
                B shall
                bear all economic losses and legal consequences arising from any
                advertising business or violation of rights in the course of publication
                or dissipation of advertisements occasioned by Party B in its own
                initiative.

            

    

    

    
      	
              7.

            	
              Party
                B shall give a lawful receipt to Party A upon its receiving the payment
                of
                any sum payable by Party A to Party
                B.

            

    

    

    
      	
              8.

            	
              Party
                A shall provide to Party B at least 5 working days prior to the intended
                date of publication a full set of documents in respect of the
                advertisements as proposed by its customer to enable Party B to make
                the
                relevant application to the relevant department of the government
                for the
                requisite approval. Party B shall return to Party A the copy of the
                approval papers issued by the relevant government department with
                the seal
                of Party B thereon within 3 working days upon the issue of such approval
                to provide the legal basis for Party A to proceed with the publication
                of
                the relevant advertisement. Party B shall also consent to Party A
                sending
                persons to make inquiries at the relevant department of the government
                to
                verify the issuance of the approval papers. If the contents of the
                intended advertisement fail to get the relevant approval Party A
                shall
                co-ordinate its effort with Party B to make a fresh application or
                cancel
                the advertisement altogether. Any
                issue arising in respect of the fees payable for such application
                shall be
                resolved through negotiation between the parties
                hereto.

            

    

    

    *
      * *
      TEXT OMITTED AND FILED SEPARATELY

    CONFIDENTIAL
      TREATMENT REQUESTED

    EXHIBIT
      10.1

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
 

    Section
      4.  Duration of Contract

    

    
      	
              1.

            	
              Duration
                of Contract : This contract shall remain effective for a period of
                sixty
                calendar months commencing from the date of issue of the Certificate
                of
                Inspection and Acceptance in Good Order after the signing of this
                contract.

            

    

    

    
      	
              2.

            	
              The
                two parties hereto may, within 60 days before the expiration of the
                term
                of this contract, by a written confirmation of their supplemental
                agreement extend the term of this contract for a further period of
                60
                calendar months. The other terms and conditions of such supplemental
                agreement shall be adopted from and be in accordance with those contained
                in this contract.

            

    

    

    

    Section
      5

    

    Party
      A
      shall be entitled to obtain the right to operate and publish advertisements
      through the media of the outdoor visual advertisement LED Panel by payment
      of a
      fee which is specified below :-

    

    
      	
              1.

            	
              The
                period for the operation of the business in respect of the outdoor
                visual
                advertisement LED Panel shall be : a period of Five Calendar Years
                commencing from the date of signing of this contract or the date
                of
                issuance of the Certificate of Inspection and Acceptance in Good
                Order, as
                appropriate. Party B should propose in writing the terms for the
                renewal
                of the contract at least 12 calendar months prior to the expiration
                of the
                term of this contract so that this contract may be renewed after
                negotiation between the parties. Other terms being equal, Party A
                shall be
                preferred to other parties in a competition for the right to renew
                this
                contract.

            

    

    

    
      	
              2.

            	
              Party
                A shall pay a fee of RMB * * * per year, being a total of RMB * *
                * for
                the full term of five years in order to obtain the advertising right
                to
                publish advertisements through the LED Panel mentioned
                above.

            

    

    

    *
      * *
      TEXT OMITTED AND FILED SEPARATELY

    CONFIDENTIAL
      TREATMENT REQUESTED

    EXHIBIT
      10.1

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    
      	
              3.

            	
              Manner
                of Payment :-

            

    

    

    

    
      	
               

            	
              (1)

            	
              Party
                A shall pay to Party B a * * *% deposit of the aggregate fee for
                the whole
                term of five years within 10 working days after Party B’s obtaining of all
                the requisite approval papers for the commencement of work, namely,
                being
                the sum of RMB * * *.

            

    

    

    
      	
               

            	
              (2)

            	
              Party
                A shall pay to Party B a sum equivalent to * * * % of the aggregate
                fee
                for the whole term of five years within 60 days after the signing
                of this
                contract (or in the event of Party A being able to complete the
                installation of the visual advertisement LED Panel mentioned above
                and the
                LED Panel having been accepted by Party B after inspection then computing
                of the 60 days period shall commence from the conclusion of such
                activities), namely, being the sum of RMB * *
                *.

            

    

    

    
      	
               

            	
              (3)

            	
              Party
                A shall pay to Party B a sum equivalent to * * * % of the aggregate
                fee
                for the whole term of five years within the 10 last working days
                right
                before the expiration of the first two years of the term of contract,
                namely, the sum of RMB * * *.

            

    

    

    
      	
               

            	
              (4)

            	
              Party
                A shall pay to Party B a sum equivalent to * * * % of the aggregate
                fee
                for the whole term of five years within the 10 last working days
                right
                before the expiration of the first three years of the term of contract,
                namely, the sum of RMB * * *.

            

    

    

    
      	
               

            	
              (5)

            	
              Party
                A shall pay to Party B a sum equivalent to * * *% of the aggregate
                fee for
                the whole term of five years within the 10 last working days right
                before
                the expiration of the first three years of the term of contract,
                namely,
                the sum of RMB * * *.

            

    

    

    
      	
              4.

            	
              If
                both parties to this Agreement agree to terminate their co-operation
                hereunder during the term of performance of this Agreement then the
                parties hereto shall finalise and conclude their account with regard
                to
                the duration for which the right to operate advertisement business
                hereunder has actually been enjoyed by Party A, Party B shall accordingly
                refund to Party A any unused portion of fee for publication of
                advertisements (if any) already paid by Party
                A.

            

    

     

    Section
      6

    

    Party
      A
      is responsible for the setting up, installation and tuning of the visual
      advertisement LED Panel.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    Section
      7

    

    In
      so far
      as it is acting strictly in accordance with relevant laws and regulations Party
      A shall be entitled to carry on its advertising business regarding the visual
      advertisement LED Panels free from interference by Party B and shall be entitled
      to assign or transfer the right to business operations and applications in
      respect of the LED Panels under this Agreement to any third party and to retain
      the revenue thereby obtained for its own benefit.

    

    Section
      8

    

    In
      order
      to guarantee the lawful rights of Party A during the subsistence of this
      contract, the parties hereto have agreed to the special provisions hereunder
      :-

    

    
      	
              1.

            	
              Party
                B shall give advance notice to Party A of the impending occurrence
                of the
                following incidents : changes in the identity of its substantial
                shareholder (being a shareholder in itself or as a group holding
                more than
                30% of the shares of Party B);  impending bankruptcy, winding
                up, receivership or cessation of business of Party B; impending
                deregistration, cancellation or revocation of the Party B’s permit
                certificate or relevant government approval papers or permits or
                licenses;
                other incidents which shall affect the Party A’s rights and interest under
                this Agreement.

            

    

    

    
      	
              2.

            	
              In
                the event of any impending occurrence of the above mentioned incidents
                to
                Party B Party A shall be entitled to demand Party B to take necessary
                measures to safeguard the rights of Party A under this contract,
                including
                but not limited to the requirement for Party B’s shareholders to provide
                written undertakings to allow Party A to buy the shares of Party
                B on
                terms equally favourable as if offered to themselves; to require
                Party B
                to apply for, obtain or maintain relevant licenses, approval papers
                and
                permits or to require for undertakings from third parties to confirm
                that
                they will respect and have regard to this contract and the right
                of Party
                A under this contract.

            

    

    

    
      	
              3.

            	
              Party
                B shall not engage in any business activity concerning the same type
                of
                advertisement business hereunder or any other business of a nature
                similar
                to the advertisement business
                hereunder.

            

    

    

    Section
      9

    

    Except
      in
      the situations specified below each party to this Agreement shall keep
      confidential the contents of this Agreement and any information owned
      exclusively by the other party and obtained from the other party in the course
      of negotiation for this Agreement and shall not disclose the same to any third
      party without the consent of the other party :-

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    

    
      	
              1.

            	
              Disclosure
                pursuant to an effective requirement in writing made under any law
                or
                regulation or made by the government, courts of law or court of
                arbitration.

            

    

    

    
      	
              2.

            	
              Such
                confidential information being disclosed not by reason of the default
                of
                the party in question and becoming the exclusive information of a
                third
                party.

            

    

    

    
      	
              3.

            	
              Where
                such disclosure is appropriate and necessary in pursuit of a legal
                remedy
                for the protection of the lawful rights and interest of the party
                in
                question under this Agreement.

            

    

    

    
      	
              4.

            	
              Where
                such disclosure is appropriate and necessary for the performance
                of this
                Agreement, for instances, disclosures made in relation to the filing
                of
                applications for approvals of relevant governmental authorities,
                disclosures to interested parties such as the consultants and shareholders
                of the parties to this Agreement (provided that in such event each
                party
                to this Agreement should require such interested parties such as
                its
                consultants and shareholders to take up and assume an obligation
                of
                confidentiality equivalent to that pertaining
                hereunder).

            

    

    

    

    Section
      10

    

    During
      the subsistence of this Agreement the act or omission of any party to this
      Agreement in contravention of its obligations hereunder shall be regarded as
      an
      act in breach of this Agreement and such party shall compensate
      the  other party which has abided by the terms of this Agreement for
      the losses and damages thereby occasioned.

    

    

    Section
      11

    

    In
      the
      course of implementation of this Agreement if Party A should fail to pay Party
      B
      the relevant fee payable to Party B hereunder Party B shall have the right
      to
      suspend or terminate the operational right of Party A to publicize its
      advertisements to the extent where the advertising fee of such suspended
      advertising is equivalent in amount to the payment that is
      owing.  Provided that this section shall not apply to the situation
      where the delay in Party A’s payment has resulted from a breach of this contract
      on the part of Party B.

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    Section
      12

    

    On
      the
      occurrences of any one of the following events, Party A shall be entitled to
      defer its payment of any payment payable and which has not been paid already
      hereunder and shall have the right to require Party B to bear the liability
      to
      compensate for the resulting losses and to pay full compensation to Party A
      for
      all its economic losses thereby occasioned :-

    

    
      	
              1.

            	
              If
                Party B fails to complete the procedures for its submission of
                applications for approval of the relevant authorities within the
                prescribed period.

            

    

    

    
      	
              2.

            	
              If
                Party B sell or transfer its right to operate the outdoor visual
                advertisement LED Panel to a third party thereby preventing Party
                A’s
                normal operation of its business in relation to such outdoor visual
                advertisement LED Panel.

            

    

    

    
      	
              3.

            	
              If
                Party B fails to complete the examination and scrutinizing procedures
                of
                the Municipal Management Bureau and of other relevant authorities
                before
                31st
                August, 2007 and therefore fails to ensure that Party A will be able
                to
                commence working on the building of the foundation for the LED Panel
                as
                confirmed in writing and with electricity supply connected to such
                location, thereby causing delay in the project
                hereunder.

            

    

    

    
      	
              4.

            	
              If
                Party B terminates this contract without the consent of Party A and
                without justification before the expiration of its
                term.

            

    

    

    
      	
              5.

            	
              If
                Party B fails to resolve in a timely fashion any obstacle which prevents
                Party A to have independent, exclusive and complete utilization of
                the LED
                Panel (including but not limited to matter such as the provision
                of
                electricity supply, the carrying out of installation work, maintenance
                of
                the Panel etc.).In such event Party B shall compensate Party A for
                any
                economic loss thereby occasioned.

            

    

    

    
      	
              6.

            	
              If
                Party B has acted in violation of this Agreement. In such event Party
                A
                shall be entitled to terminate this contract unilaterally and to
                dismantle
                and remove the LED Panel which shall belong to Party
                A.

            

    

    

    

    Section
      13  Force Majeure

    

    
      	
              1.

            	
              Whenever
                an earthquake, typhoon, flooding, accidental fire, arson, act of
                war or
                any other unanticipated event the happening and consequence of which
                is
                unpreventable, insurmountable and unavoidable causes a direct impact
                on
                the

            

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
      	
               

            	
              performance
                of this Agreement or rendering both parties to this Agreement unable
                to
                perform its obligation under this Agreement, any party hereto which
                encounters such difficulty of force majeure (“Force Majeure”) shall be
                exonerated from the performance of its relevant obligation(s) under
                this
                Agreement.  Nevertheless, the party encountering Force Majeure
                must give written notice of the Force Majeure to the other party
                forthwith
                and shall within 15 days after the onset of the Force Majeure provide
                a
                detailed account of the situation of the Force Majeure and state
                the
                reason for the non-performance or deferral in performance of its
                obligations under this Agreement whether as a whole or partially
                and
                substantiate its case with effective documentary proof.  Having
                regard to the extent to which the performance of this Agreement is
                affected by Force Majeure the parties shall enter into negotiation
                to
                determine and decide whether this Agreement should be annulled or
                whether
                the performance of some of the obligations hereunder be relieved
                or that
                the time for the performance of this Agreement should be
                extended.  If Force Majeure occurs during such time when one of
                the parties hereto is already failing to perform any of its obligations
                hereunder in time then such party shall not be exonerated from the
                performance of such obligation.

            

    

    

    
      	
              2.

            	
              Any
                party hereto affected by Force Majeure shall take all reasonable
                steps and
                appropriate procedures to mitigate and alleviate the effect of Force
                Majeure on to performance of this Agreement.  Any party hereto
                which fails to take appropriate procedure and thereby causes an
                aggravation of the extent of damages shall not be entitled to claim
                any
                exoneration of liability or compensation in respect of the additional
                damages thereby caused.

            

    

    

    
      	
              3.

            	
              If
                the advertisement (panel) under this Agreement has to be removed
                or
                demolished due to causes such as the change in the requirement of
                national
                laws or regional regulations or the needs for city planning or urban
                renewal such event shall be regarded as Force Majeure and this contract
                shall according come to an end upon the occurrence of such
                event.

            

    

    

    Section
      14

    

    If
      the
      further performance of this Agreement is rendered impossible by reason of any
      change in the governmental policy of the Municipal Government of Wuhan City
      during the subsistence of this Agreement then neither party hereto may claim
      against the other party for violation of contract.  The parties hereto
      shall negotiable with each other in such event to decide whether or not to
      terminate this Agreement and to work out a solution for the resolution of the
      situation.

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    Section
      15

    

    All
      matters that have not been adequately provided for under the terms of this
      Agreement may be resolved by friendly negotiation between the parties hereto
      and
      upon the parties reaching consensus on such matter, may be put into a legal
      document as a supplement to these presents.  Supplementary agreement
      like that shall have effect equal to that of this Agreement.

    

    

    Section
      16

    

    The
      following appendices are inseparable parts of this Agreement and shall have
      effect under the law as if they are contents of this Agreement :-

                                

    
      	Appendix
              1: 	Relevant
              Governmental Approval Papers.

      	Appendix
              2: 	Map
              of Locations of one visual advertisement LED
              Panel.

      	Appendix
              3:    	Design
              Drawings of visual advertisement LED Panel.

      	
              Appendix
                4:

            	
              Certificate
                of Inspection and Acceptance in Good
                Order.

            

    

    
      	
              Appendix
                5:

            	
              Design
                drawings and requite requirements for the construction of
                foundations.

            

    

    

    

    Section
      17

    

    This
      Agreement shall become legally binding immediately from the moment when both
      Party A and Party B have signed the same and put their respective company seals
      on the same.

    

    

    Section
      18

    

    The
      parties hereto shall try to resolve their differences in the course of
      implementation of this Agreement through negotiation and if they should fail
      to
      resolve their differences in that manner either party shall be entitled to
      commence legal proceedings under the jurisdiction of the People’s Court where
      the performance of this contract is supposed to take place.

    Section
      19

    

    This
      Agreement is signed in four identical counterparts, each of Party A and Party
      B
      shall retain two of the counterparts.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    

    
      	
              Party
                A :- Shanghai Quo Advertising

              Company
                Limited

              (Seal
                of Corporation)

               

              Statutory
                Representative of Party A :

            	
              Party  B
                :- Wuhan Weiao Advertising Company Limited

              (Seal
                of Corporation)

               

              Statutory
                Representative of Party B :

            
	
               

               

               

               

               

               

               

               

              Date:
                16th
                August, 2007

            	
               

               

               

               

               

               

               

               

              Date:
                8th
                August, 2007

            

    

    TW/06044/10.Translation

     

     

    13EX-10.1

RESTRICTED STOCK AGREEMENT

THIS RESTRICTED STOCK AGREEMENT, made and entered into as of the       day of
     , 2007, by and between Smart Online, Inc., a Delaware corporation (the “Company), and
     (the “Employee”).

WHEREAS, in consideration of the services of the Employee, the Company is desirous of giving
the Employee shares of common stock of the Company under the Company’s 2004 Equity Compensation
Plan (the “Plan”) (all capitalized terms not otherwise defined herein shall have the meaning set
forth in the Plan), subject to the restrictions set forth below.

NOW, THEREFORE, in consideration of the foregoing, of the mutual promises set forth below and
of other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

1. Restricted Stock Award. The Company shall issue      (     ) shares of
the common stock of the Company (the “Securities”) to the Employee, as part of the Employee’s
compensation. The Securities are subject to the restrictions set forth in Section 4 below.

2. Employee Representations. The Employee hereby acknowledges and represents the
following:

(a) Compensation. The Employee acknowledges that the Securities is part of his or her
compensation from the Company.

(b) Investment. The Employee will treat the Securities as if acquired for investment
for the Employee’s own account and not with a view to, or for resale in connection with, any
distribution thereof, and Employee has no present intention of selling or distributing the
Securities. The Employee does not have any contract, undertaking, agreement or arrangement with
any person to sell, transfer or grant participation to such person or to any third person with
respect to any of the Securities other than as set forth in this Agreement. The Employee
understands that the Securities to be issued to the Employee have not been registered under the
Securities Act of 1933, as amended (the “Act”) by reason of a specific exemption from the
registration provisions of the Act which depends upon, among other things, the bona fide nature of
the investment intent as expressed herein.

(c) Taxes. The Employee has not relied upon the Company with respect to any tax
consequences related to the acquisition or disposition of the Securities. The Employee
acknowledges that the Employee may incur a substantial tax liability. The Employee assumes full
responsibility for all such consequences and the filing of all tax returns and elections the
Employee may be required or find desirable to file in connection therewith. In the event any
valuation of the Securities purchased pursuant to its exercise must be made under federal or state
tax laws and such valuation affects any return or election of the Company, the Employee agrees that
the Company may determine such value and that the Employee will observe any determination so made
by the Company in all returns and elections filed by the Employee. In the event the Company is
required by applicable law to collect any withholding, payroll or similar taxes by reason of the
grant of the Securities, the Employee agrees that the Company may withhold such taxes from any
monetary amounts otherwise payable by the Company to the Employee and that, if such amounts are
insufficient to cover the taxes required to be collected by the Company, the Employee will pay to
the Company such additional amounts as are required.

(d) No Registration Obligation. The Company will be under no obligation to register
the Securities or to comply with any exemption available for sale of the Securities by the Employee
without registration, and the Company is under no obligation to act in any manner so as to make
Rule 144 promulgated under the Securities Act of 1933 available with respect to any sale of the
Securities by the Employee.

(e) Underwriter Restrictions. In the event any underwriter of securities of the
Company requests the Employee to sign any agreement restricting resale of the Securities in
connection with any public offering by the Company, the Employee agrees to sign such agreement,
provided the officers of the Company have signed an agreement no less restrictive. The Company may
instruct its transfer agent not to transfer the Securities if requested by an underwriter as
described above.

(f) Compliance with Securities Laws. The Employee hereby agrees to comply with any
plan, policy or other document of the Company approved by the Board of Directors of the Company to
ensure compliance with securities laws, rules and regulations both prior to the Termination of
Service of the Employee and for one (1) year thereafter. The Company may impose stop transfer
restrictions with respect to the Securities to enforce this provision.

(g) Legends. Each certificate representing Securities shall also bear any legend
required by any applicable state securities law or by any other agreement to which the holder
thereof is a party or by which the holder thereof is bound, including the provisions of any
existing “lock-up” or similar agreements between the Employee and the Company, and including the
following legend as required in Section 4, below:

THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ASSIGNED, CONVEYED OR
PLEDGED ONLY UPON COMPLIANCE WITH THE TERMS AND CONDITIONS OF A RESTRICTED STOCK
AGREEMENT, AS THE SAME MAY BE AMENDED OR REPLACED FROM TIME TO TIME, A COPY OF WHICH
IS ON FILE WITH, AND AVAILABLE FOR INSPECTION AT THE OFFICES OF THE SECRETARY OF THE
CORPORATION.

3. Condition to Issuance. The representations, warranties, understandings,
acknowledgments and agreements in this Agreement are true and accurate as of the date hereof, shall
be true and accurate as of the date of the issuance of the Securities by the Company and shall
survive thereafter.

4. Restrictions. The Securities described above shall be subject to the following
restrictions:

(a) Restriction Period; Lapse of Restriction. For a period of      following
the date of this Agreement, the Employee agrees not to transfer, assign or sell the Securities,
without the express written consent of the Company, which may be granted or withheld in the sole
discretion of the Company. This restriction shall expire and cease to be of any effect with
respect to the number of shares equal to      of the Securities in
     following the date hereof; provided that this restriction shall
lapse with respect to an increment as specified only if the Employee is employed by the Company on
the specified date for such increment. Shares representing the Securities shall bear a legend to
such effect.

The schedule set forth above is cumulative, so that the Securities as to which the restriction has
lapsed on and after a date indicated by the schedule may be transferred, assigned, or sold at any
subsequent date.

(b) Acceleration of Lapse of Restriction. Upon a Change of Control or Corporate
Organization, as defined below, the restriction set forth in Section 5(a) shall accelerate so as to
lapse as to all of the Securities to which the restriction applies on the date of such event.

(i) A “Change in Control” shall be deemed to have occurred if, after the class of stock then
subject to this Agreement becomes publicly traded, (1) the direct or indirect beneficial ownership
(within the meaning of Section 13(d) of the Act and Regulation 13D thereunder) of fifty percent
(50%) or more of the class of securities then subject to this Agreement is acquired or becomes held
by any person or group of persons (within the meaning of Section 13(d)(3) of the Act), but
excluding the Company and any employee benefit plan sponsored or maintained by the Company, or (2)
assets or earning power constituting more than fifty percent (50%) of the assets or earning power
of the Company and its subsidiaries (taken as a whole) is sold, mortgaged, leased or otherwise
transferred, in one or more transactions not in the ordinary course of the Company’s business, to
any such person or group of persons; provided, however, that a Change in Control shall not be
deemed to have occurred upon an investment by one or more venture capital funds, Small Business
Investment Companies (as defined in the Small Business Investment Act of 1958, as amended) or
similar financial investors. For the purposes of this Agreement, the class of stock then subject
to this Agreement shall be deemed to be “publicly traded” if such stock is listed or admitted to
unlisted trading privileges on a national securities exchange or as to which sales or bid and offer
quotations are reported in the automated system operated by the National Association of Securities
Dealers, Inc.

(ii) A “Corporate Reorganization” means the happening of any one (1) of the following events:
(1) the dissolution or liquidation of the Company; (2) a capital reorganization, merger or
consolidation involving the Company, unless (A) the transaction involves only the Company and one
or more of the Company’s parent corporation and wholly-owned (excluding interests held by
employees, officers and directors) subsidiaries; or (B) the shareholders who had the power to elect
a majority of the board of directors of the Company immediately prior to the transaction have the
power to elect a majority of the board of directors of the surviving entity immediately following
the transaction; (3) the sale of all or substantially all of the assets of the Company to another
corporation, person or business entity; or (4) an acquisition of Company stock, unless the
shareholders who had the power to elect a majority of the board of directors of the Company
immediately prior to the acquisition have the power to elect a majority of the board of directors
of the Company immediately following the transaction; provided, however, that a Corporate
Reorganization shall not be deemed to have occurred upon an investment by one or more venture
capital funds, Small Business Investment Companies (as defined in the Small Business Investment Act
of 1958, as amended) or similar financial investors.

5. Effect of Termination of Service. The restriction on the Securities shall lapse as
specified in Section 4 above until the Termination of Service of the Employee for reasons other
than death, Disability or Retirement. Pursuant to Section 7.6 of the Plan, where the Termination
of Service is for death, Disability or Retirement, than the Committee shall determine, in its sole
discretion, whether to waive any remaining restriction.

All shares of the Securities still subject to the restriction set forth in Section 5 shall be
forfeited by the Employee and reacquired by the Company on such date. Upon such date, the Employee
shall have no further rights to any Securities to which the restriction has not lapsed.

6. Rights as Stockholder. The Employee shall have all rights as a stockholder with
respect to the Securities; provided, however, any dividends or distributions on the
Securities shall be automatically deferred and reinvested as restricted Securities subject to the
same restrictions set forth in this Agreement.

7. Incorporation of the Plan. The terms and conditions included in the Plan, the
receipt of a copy of which Participant hereby acknowledges by execution of this Agreement, are
incorporated by reference herein, and to the extent that any conflict may exist between any term or
provision of this Agreement and any term or provision of the Plan, such term or provision of the
Plan shall control.

8. Governing Law. This Agreement shall be enforced, governed and construed in all
respects in accordance with the laws of the State of Delaware, as such laws are applied by Delaware
courts to agreements entered into and to be performed in Delaware, and shall be binding upon the
Employee, the Employee’s heirs, estate, legal representatives, successors and assigns and shall
inure to the benefit of the Company and its successors and assigns.

9. Miscellaneous. This Agreement and the Plan constitute the entire agreement among
the parties hereto with respect to the subject matter hereof and supersedes any and all prior or
contemporaneous representations, warranties, agreements and understandings in connection therewith,
other than any existing “lock-up” or similar agreements between the parties which by their terms
would apply to the Securities. This Agreement may be amended only by a writing executed by all
parties hereto. This Agreement may be executed in one or more counterparts.

1

IN WITNESS WHEREOF, Employee has executed this Restricted Stock Agreement effective as of the date
first written above.

	 	 	 
	EMPLOYEE:

	 	SMART ONLINE, INC.
	By:     

	 	By:     

Name:      

Title:      

Print Name:     

Address:     

     

     

2

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