Document:

EX-10.1

Exhibit 10.1

EXECUTIVE EMPLOYMENT AGREEMENT

This EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of
January 29, 2010 by and between SearchMedia Holdings Limited, a company incorporated and existing
under the laws of the Cayman Islands (the “Company”), and Mr. Paul Conway, an individual
(the “Executive”) and effective on the Effective Date (as hereinafter defined). The Company
and all of its direct or indirect parent companies, subsidiaries, affiliates, or subsidiaries or
affiliates of its parent companies are referred to collectively as the “SM Group.”

RECITALS

A. The Company desires to employ the Executive and to assure itself of the services of the
Executive during the term of Employment (as defined below).

B. The Executive desires to be employed by the Company during the term of Employment and under the
terms and conditions of this Agreement.

AGREEMENT

The parties hereto agree as follows:

	1.	 	POSITION

The Executive hereby accepts a position of Chief Executive Officer (the
“Employment”) of the Company.

	2.	 	TERM

Subject to the terms and conditions of this Agreement, the initial term of the Employment
shall be three years, commencing on February 1, 2010 (the “Effective Date”), until
February 1, 2013, unless terminated earlier pursuant to the terms of this Agreement. Upon
expiration of the initial three-year term, the Employment shall be automatically extended
for successive one-year terms unless either party gives the other party hereto written
notice to terminate the Employment no less than 60 days, and no more than 120 days, prior to
the expiration of such one-year term or unless terminated earlier pursuant to the terms of
this Agreement.

	3.	 	DUTIES AND RESPONSIBILITIES

The Executive’s duties at the Company will include all jobs assigned by the Board of
Directors of the Company (the “Board”).

Prior to the first anniversary of this Agreement, Executive shall be appointed to the
Company’s Board.

The Executive shall devote all of his working time, attention and skills to the performance
of his duties at the Company and shall faithfully and diligently serve the Company in
accordance with this Agreement and the guidelines, policies and procedures of the Company
approved from time to time by the Company.

The Executive shall use his best efforts to perform his duties hereunder. The Executive
shall not, without the prior written consent of the Board, become an employee or consultant
of any entity other than the Company and/or any member of the SM Group, and shall not carry
on or be interested in the business or entity that competes with that carried on by the SM
Group (any such business or entity, a “Competitor”), provided that nothing in this
clause shall preclude the Executive from holding any shares or other securities of any
Competitor that is listed on any securities exchange or recognized securities market
anywhere. The Executive shall notify the Company in writing of his interest in such shares
or securities in a timely manner and with such details and particulars as the Company may
reasonably require.

	4.	 	NO BREACH OF CONTRACT

The Executive hereby represents to the Company that: (i) the execution and delivery of this
Agreement by the Executive and the performance by the Executive of the Executive’s duties
hereunder shall not constitute a breach of, or otherwise contravene, the terms of any other
agreement or policy to which the Executive is a party or otherwise bound, except for
agreements that are required to be entered into by and between the Executive and any member
of the SM Group pursuant to applicable law of the jurisdiction where the Executive is based,
if any; (ii) that the Executive has no information (including, without limitation,
confidential information and trade secrets) relating to any other person or entity which
would prevent, or be violated by, the Executive entering into this Agreement or carrying out
his duties hereunder; (iii) that the Executive is not bound by any confidentiality, trade
secret or similar agreement (other than this) with any other person or entity except for
other member(s) of the SM Group, as the case may be.

	5.	 	LOCATION

The Executive will be based in, and shall work from, Shanghai, China on a full time basis.

	6.	 	COMPENSATION AND BENEFITS

	 	(a)	 	Cash Compensation. The Executive’s cash compensation shall be
provided by the Company pursuant to Schedule A-1 hereto, subject to annual
review and adjustment by the Board. The Company and the Executive hereby agree that
any of the Company’s subsidiaries’ or affiliated entities’ payment of the cash
compensation payable for the applicable time period under its labor contract with the
Executive shall constitute payment of part of the above cash compensation. The
Executive’s entitlement to the aggregate cash compensation payable by the Company and
any of the Company’s subsidiaries or affiliated entities shall not exceed the amount
set out in Schedule A-1 hereto.

	 	(b)	 	Equity Incentives. The Executive will be eligible to participate in
any of the Company’s equity incentive plans as determined by the Board, consistent with
the terms provided to the Company’s other senior officers. Subject to approval by the
Company’s Board of Directors and the execution of a stock option agreement and
restricted share agreement which will govern the terms and conditions of your equity
incentive awards, you will receive the equity awards listed on Schedule A-2
(respectively, the “Initial Option Grant” and “Initial Restricted Stock Grant”).
Following a Company Change of Control Transaction (as hereinafter defined), all
unvested options and restricted shares granted pursuant to the Initial Option Grant and
Initial Restricted Stock Grant shall vest upon the closing of the Change of Control
Transaction.

	 	(c)	 	Expatriate Benefits. The Executive shall be entitled to an annual
expatriate benefit package of up to US$50,000 (the “Expatriate Benefit
Package”), which shall include reimbursements for relocation to Shanghai, China for
the Executive and his family, housing, private transportation in China, education for
the Executive’s children and such other matters as the Compensation Committee of the
Board reasonably approves in advance. Any expenses to be incurred or reimbursed
pursuant to the Executive’s Expatriate Benefit Package shall be approved in advance by
the Company’s Compensation Committee, or a designee of the Compensation Committee,
prior to incurring such expenses. The Expatriate Benefit Package will be directly paid
or reimbursed by the Company. If, within one year from the date of Executive’s
relocation, Executive voluntarily terminates his employment with the Company for any
reason other than by the Executive for Good Reason pursuant to Section 7(c) herein,
Executive will be required to refund all funds expended by the Company related to the
Expatriate Benefit Package to the Company within 30 days of his termination date.

	 	(d)	 	Benefits. The Company will provide the Executive and his family
with an international health insurance program (“International Health Insurance”). To
the extent the cost of the International Health Insurance exceeds the cost of the
standard health insurance plan for senior employees, the difference, up to a maximum of
$10,000.00, shall be applied towards the Expatriate Benefit Package cap described in
Section 6(c)(3). The Company will assist the Executive in obtaining International
Health Insurance. In addition, the Executive and his family will be eligible to
participate in any standard employee benefit plan of the Company, including any health
insurance plan and annual holiday plan.

	 	(e)	 	Legal Fees. Upon execution of this Agreement, the Company agrees to
pay the legal fees incurred by the Executive in connection with this Agreement and
Executive joining the Company, up to a maximum of $10,000.00. Such fees shall be
payable within a reasonable time following the Company’s receipt of such bills, not to
exceed 15 days.

	 	(f)	 	Certain Definitions. For purposes of this Agreement, a Change of
Control Transaction shall mean (1) any sale, lease, exchange or other transfer (in one
transaction or a series of transactions) of all or substantially all of the assets of
the Company other than to a Company Affiliate; (2) any consolidation or merger or other
business combination of the Company with any other entity, other than a Company
Affiliate, where the shareholders of the Company, immediately prior to the
consolidation or merger or other business combination would not, immediately after the
consolidation or merger or other business combination, beneficially own, directly or
indirectly, shares representing fifty percent (50%) of the combined voting power of all
of the outstanding securities of the entity issuing cash or securities in the
consolidation or merger or other business combination (or its ultimate parent
corporation, if any); or (3) the Board of the Company adopts a resolution to the effect
that a “Change In Control” has occurred for purposes of this Agreement. Company
Affiliate shall mean any affiliate of the Company, including without limitation,
Phillip Frost, Frost Gamma Investments Trust, The Frost Group, LLC or any of their
respective members or affiliates.

	7.	 	TERMINATION OF THE AGREEMENT

	 	(a)	 	By the Company with cause. The Company may terminate the Executive’s
Employment for cause, at any time, without advance notice or remuneration, if (1) the
Executive is convicted or pleads guilty to a felony or to an act of fraud,
misappropriation or embezzlement, (2) the Executive has been grossly negligent or acted
dishonestly to the material financial detriment of the Company, (3) the Executive has
engaged in actions amounting to gross misconduct or failed to perform his duties
hereunder and such failure continues after the Executive has been provided with written
notice of such failure and is afforded a reasonable opportunity (of no less than 30
days) to cure such failure, (4) the Executive has died, or (5) the Executive has a
disability which shall mean a physical or mental impairment which, as reasonably
determined by the Board, renders the Executive unable to perform the essential
functions of his employment with the Company, even with reasonable accommodation that
does not impose an undue hardship on the Company, for more than 180 days in any
12-month period, unless a longer period is required by applicable law, in which case
that longer period would apply.

	 	(b)	 	By the Company without cause. The Company may terminate the
Executive’s Employment without cause, at any time, upon 60 days prior written notice to
the Executive.

	 	(c)	 	By the Executive for Good Reason. If there is a material and
substantial reduction in the Executive’s existing authority and responsibilities, or
the Executive’s compensation or benefits, or location of the Executive’s position, the
Executive may resign upon one-month prior written notice to the Company during the
first year after the Effective Date, or two-month prior written notice to the Company
during any period after the first anniversary of the Effective Date. A resignation by
Executive shall not constitute termination for Good Reason unless (i) there shall have
passed a reasonable time (not less than 30 days) within which the Company may take
action to correct, rescind or otherwise substantially reverse the occurrence supporting
termination for Good Reason as identified by Executive and (ii) the Executive’s
termination of employment occurs within 30 days of the occurrence of an event of Good
Reason.

	 	(d)	 	Notice of Termination. Any termination of the Executive’s employment
under this Agreement shall be communicated by written notice of termination from the
terminating party to the other party. The notice of termination shall indicate the
specific provision(s) of this Agreement relied upon in effecting the termination.

	 	(e)	 	Remuneration upon Termination. Upon the Company’s termination of the
Employment without cause pursuant to Section 7(b) above or the Executive’s resignation
for good reason pursuant to Section 7(c) above and upon the execution of a general
release agreement in a form reasonably acceptable to the Company, the Company will
provide remuneration to the Executive as follows: (1) if such termination or
resignation becomes effective during the first year after the Effective Date, the
Company will provide the Executive with severance pay equal to six months base salary
of the Executive; (2) if such termination or resignation becomes effective during any
period after the first anniversary of the Effective Date and before the second
anniversary of the Effective Date, the Company will provide the Executive with
severance pay equal to nine months base salary of the Executive; (3) if such
termination or resignation becomes effective during any period after the second
anniversary of the Effective Date, the Company will provide the Executive with a
severance pay equal to 12 months base salary of the Executive; (4) the Company will
vest any options of the Initial Option Grant that would have vested during the
applicable severance period, (5) if such termination or resignation becomes effective
during any period after the first anniversary of the Effective Date and before the
second anniversary of the Effective Date, the Company will vest 33,333 shares of
restricted stock from the Initial Restricted Stock Grant, and (6) if such termination
or resignation becomes effective during any period after the second anniversary of the
Effective Date and before the third anniversary of the Effective Date, the Company will
vest a total of 66,666 shares of restricted stock from the Initial Restricted Stock
Grant. Except for the foregoing, the Executive shall not be entitled to any severance
payments or benefits upon the termination of the Employment for any reason, unless
otherwise agreed to by the Company. Any payments made pursuant to Section 7(e)(1-3)
shall be paid in accordance with the Company’s normal payroll cycles in effect on the
termination or resignation date.

	 	(f)	 	Termination by Executive for No Reason. The Executive may terminate
his Employment for any reason, at any time, upon 90 days prior written notice to the
Company.

	8.	 	CONFIDENTIALITY AND NONDISCLOSURE

	 	(a)	 	Confidentiality and Non-disclosure. In the course of the Executive’s
services, the Executive may have access to the Company and/or the Company’s client’s
and/or prospective client’s trade secrets and confidential information, including but
not limited to those embodied in memoranda, manuals, letters or other documents,
computer disks, tapes or other information storage devices, hardware, or other media or
vehicles, pertaining to the Company and/or the Company’s client’s and/or prospective
client’s business. All such trade secrets and confidential information are considered
confidential. All materials containing any such trade secret and confidential
information are the property of the Company and/or the Company’s client and/or
prospective client, and shall be returned to the Company and/or the Company’s client
and/or prospective client upon expiration or earlier termination of this Agreement.
The Executive shall not directly or indirectly disclose or use any such trade secret or
confidential information, except as required in the performance of the Executive’s
duties in connection with the Employment, or pursuant to applicable law.

	 	(b)	 	Trade Secrets. During and after the Employment, the Executive shall
hold the Trade Secrets in strict confidence; the Executive shall not disclose these
Trade Secrets to anyone except other employees of the Company who have a need to know
the Trade Secrets in connection with the Company’s business. The Executive shall not
use the Trade Secrets other than for the benefits of the Company.

“Trade Secrets” means information deemed confidential by the Company,
treated by the Company or which the Executive know or ought reasonably to have known
to be confidential, and trade secrets, including without limitation designs,
processes, pricing policies, methods, inventions, conceptions, technology, technical
data, financial information, corporate structure and know-how, relating to the
business and affairs of the Company and its subsidiaries, affiliates and business
associates, whether embodied in memoranda, manuals, letters or other documents,
computer disks, tapes or other information storage devices, hardware, or other media
or vehicles. Trade Secrets do not include information generally known or released
to public domain through no fault of the Executive.

	 	(c)	 	Former Employer Information. The Executive agrees that he has not and
will not, during the term of his employment improperly use or disclose any proprietary
information or trade secrets of any former employer, unless the former employer has
been acquired by the Company, or other person or entity with which the Executive has an
agreement to keep in confidence information acquired by Executive, if any. The
Executive will indemnify the Company and hold it harmless from and against all claims,
liabilities, damages and expenses, including reasonable attorneys’ fees and costs of
suit, arising out of or in connection with any violation of the foregoing.

	 	(d)	 	Third Party Information. The Executive recognizes that the Company may
have received, and in the future may receive, from third parties their confidential or
proprietary information subject to a duty on the Company’s part to maintain the
confidentiality of such information and to use it only for certain limited purposes.
The Executive agrees that the Executive owes the Company and such third parties, during
the Executive’s employment by the Company and thereafter, a duty to hold all such
confidential or proprietary information in the strictest confidence and not to disclose
it to any person or firm and to use it in a manner consistent with, and for the limited
purposes permitted by, the Company’s agreement with such third party.

This Section 8 shall survive the termination of this Agreement for any reason. In the
event the Executive breaches this Section 8, the Company shall have right to seek any and
all remedies at law or in equity.

	9.	 	NON-COMPETITION AND NON-SOLICITATION

(a) In consideration of the base salary provided to the Executive by the Company hereunder,
the adequacy of which is hereby acknowledged by the parties hereto, the Executive agrees
that during the term of the Employment and for a period of one year following the
termination of the Employment for whatever reason:

(i) The Executive will not approach clients, customers or contacts of the Company or
other persons or entities introduced to the Executive in the Executive’s capacity as
a representative of the Company for the purposes of doing business with such persons
or entities which will harm the business relationship between the Company and such
persons and/or entities;

(ii) unless expressly consented to by the Company, the Executive will not seek
directly or indirectly, by the offer of alternative employment or other inducement
whatsoever, to solicit the services of any employee of the Company employed as at or
after the date of such termination, or in the year preceding such termination.

(b) In consideration of the base salary provided to the Executive by the Company hereunder,
the adequacy of which is hereby acknowledged by the parties hereto, the Executive agrees
that during the term of the Employment and for a period of one year thereafter (except in
the event of a Termination by the Company without cause pursuant to Section 7(b) or in the
event of a Termination by the Executive for Good Reason pursuant to Section 7(c)), following
the termination of the Employment for whatever reason, unless expressly consented to by the
Company, the Executive will not assume employment with or provide services for any
Competitor, or engage, whether as principal, partner, licensor or otherwise, in any
Competitor.

(c) In consideration of the base salary provided to the Executive by the Company hereunder,
the adequacy of which is hereby acknowledged by the parties hereto, the Executive agrees
that in the event of a Termination by the Company without cause pursuant to Section 7(b) or
in the event of a Termination by the Executive for Good Reason pursuant to Section 7(c),
then during the term of the Employment and for the period of the duration of the severance
pay described in Section 7(e)(1), Section 7(e)(2) or Section 7(e)(3), as appropriate, unless
expressly consented to by the Company, the Executive will not assume employment with or
provide services for any Competitor, or engage, whether as principal, partner, licensor or
otherwise, in any Competitor.

The provisions contained in this Section 9 are considered reasonable by the Executive and
the Company. In the event that any such provisions should be found to be void under
applicable laws but would be valid if some part thereof was deleted or the period or area of
application reduced, such provisions shall apply with such modification as may be necessary
to make them valid and effective.

This Section 9 shall survive the termination of this Agreement for any reason. In the event
the Executive breaches this Section 9, the Executive acknowledges that there will be no
adequate remedy at law, and the Company shall be entitled to injunctive relief and/or a
decree for specific performance, and such other relief as may be proper (including monetary
damages if appropriate). In any event, the Company shall have right to seek any and all
remedies permissible at law or in equity.

	10.	 	ASSIGNMENT

This Agreement is personal in its nature and neither of the parties hereto shall, without
the consent of the other, assign or transfer this Agreement or any rights or obligations
hereunder; provided, however, that (i) the Company may assign or transfer this Agreement or
any rights or obligations hereunder to any member of the SM Group without such consent, and
(ii) in the event of a Change-of-Control Transaction of the Company, this Agreement shall,
subject to the provisions hereof, be binding upon and inure to the benefit of such successor
and such successor shall discharge and perform all the promises, covenants, duties, and
obligations of the Company hereunder.

	11.	 	SEVERABILITY

If any provision of this Agreement or the application thereof is held invalid, the
invalidity shall not affect other provisions or applications of this Agreement which can be
given effect without the invalid provisions or applications and to this end the provisions
of this Agreement are declared to be severable.

	12.	 	GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the law of the State of
New York, U.S.A. Any dispute or claim arising out of or related to this Agreement shall be
brought only in a court of competent jurisdiction located in the state, county and city of
New York. The parties hereto waive any objection to venue and jurisdiction of that forum.

	13.	 	AMENDMENT

This Agreement may not be amended, modified or changed (in whole or in part), except by a
formal, definitive written agreement expressly referring to this Agreement, which agreement
is executed by both of the parties hereto.

	14.	 	WAIVER

Neither the failure nor any delay on the part of a party to exercise any right, remedy,
power or privilege under this Agreement shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, remedy, power or privilege preclude any other or
further exercise of the same or of any right, remedy, power or privilege, nor shall any
waiver of any right, remedy, power or privilege with respect to any occurrence be construed
as a waiver of such right, remedy, power or privilege with respect to any other occurrence.
No waiver shall be effective unless it is in writing and is signed by the party asserted to
have granted such waiver.

	15.	 	NOTICES

All notices, requests, demands and other communications required or permitted under this
Agreement shall be in writing and shall be deemed to have been duly given and made if (i)
delivered by hand, (ii) otherwise delivered against receipt therefor, or (iii) sent by a
recognized courier with next-day or second-day delivery to the last known address of the
other party.

	16.	 	COUNTERPARTS

This Agreement may be executed in any number of counterparts, each of which shall be deemed
an original as against any party whose signature appears thereon, and all of which together
shall constitute one and the same instrument. This Agreement shall become binding when one
or more counterparts hereof, individually or taken together, shall bear the signatures of
all of the parties reflected hereon as the signatories. Photographic copies of such signed
counterparts may be used in lieu of the originals for any purpose.

	17.	 	NO INTERPRETATION AGAINST DRAFTER

Each party recognizes that this Agreement is a legally binding contract and acknowledges
that such party has had the opportunity to consult with legal counsel of choice. In any
construction of the terms of this Agreement, the same shall not be construed against either
party on the basis of that party being the drafter of such terms.

	18.	 	LANGUAGE

This Agreement is prepared and executed in English.

	19.	 	CODE SECTIONS 409A.

(a) General. This Agreement shall be interpreted and administered in a manner so
that any amount or benefit payable hereunder shall be paid or provided in a manner that is
either exempt from or compliant with the requirements Section 409A of the Code and
applicable Internal Revenue Service guidance and Treasury Regulations issued thereunder (and
any applicable transition relief under Section 409A of the Code).

(b) Definitional Restrictions. Notwithstanding anything in this Agreement to the
contrary, to the extent that any amount payable under Section 7(e) (“Remuneration upon
Termination”) that would constitute non-exempt “deferred compensation” for purposes of
Section 409A of the Code, such amount will not be payable to the Executive by reason of such
circumstance unless (i) such termination of employment meets any definition of “separation
from service” in Section 409A of the Code and applicable regulations (without giving effect
to any elective provisions that may be available under such definition), or (ii) the payment
of such amount or benefit would be exempt from the application of Section 409A of the Code
by reason of the short-term deferral exemption or otherwise. If this provision prevents the
payment of any amount, such payment shall be made on the date on which an event occurs that
constitutes a Section 409A-compliant “separation from service” or such later date as may be
required by subsection (c) below.

(c) Six-Month Delay in Certain Circumstances. Notwithstanding anything in this
Agreement to the contrary, if any amount or benefit that would constitute non-exempt
“deferred compensation” for purposes of Section 409A of the Code would otherwise be payable
under this Agreement by reason of the Executive’s separation from service during a period in
which he is a Specified Employee (as defined below), then, subject to any permissible
acceleration of payment by the Company under Treas. Reg. Section 1.409A-3(j)(4)(ii)
(domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of
employment taxes):

(i) the amount of such non-exempt deferred compensation that would otherwise be
payable during the six-month period immediately following the Executive’s separation
from service will be accumulated through and paid or provided on the first day of
the seventh month following the Executive’s separation from service (or, if the
Executive dies during such period, within 30 days after the Executive’s death) (in
either case, the “Required Delay Period”); and

(ii) the normal payment schedule for any remaining payments will resume at the end
of the Required Delay Period.

(iii) in the case of any such delayed payment, the Company shall pay interest on
the deferred amount at 100% of the short-term applicable federal rate as in effect
for the month in which the date of termination occurred.

For purposes of this Agreement, the term “Specified Employee” has the meaning given such
term in Code Section 409A and the final regulations thereunder: provided, however, that the
Company’s Specified Employees and its application of the six-month delay rule of Code
Section 409A(a)(2)(B)(i) shall be determined in accordance with rules adopted by the Board
or a committee thereof, which shall be applied consistently with respect to all nonqualified
deferred compensation arrangements of the Company, including this Agreement.

(d) Treatment of Installment Payments. Each payment of severance benefits under
Section 7(e) of this Agreement shall be considered a separate payment, as described in
Treas. Reg. Section 1.409A-2(b)(2), for purposes of Section 409A of the Code.

(e) Timing of Release of Claims. With respect to the requirement in Section 7(e) of
this agreement where payment is conditioned on the Executive’s execution and non-revocation
of a general release, such release, must be executed, and all revocation periods shall have
expired, within 60 days after the date of termination of the Executive’s employment and (i)
if the payment would be exempt from the application of Section 409A of the Code by reason of
the short-term deferral exemption or otherwise, then the Company may elect to commence
payment at any time during such 60-day period or (ii) if the payment would constitute
non-exempt “deferred compensation” for purposes of Section 409A of the Code, then payment
will commence on the 61st day following termination of employment.

(f) Timing of Reimbursements and In-kind Benefits. If the Executive is entitled to
be paid or reimbursed for any taxable expenses under Sections 6(c), 6(d), or 6(e) and such
payments or reimbursements are includible in the Executive’s federal gross taxable income,
the amount of such expenses reimbursable in any one calendar year shall not affect the
amount reimbursable in any other calendar year, and the reimbursement of an eligible expense
must be made no later than December 31 of the year after the year in which the expense was
incurred. No right of the Executive to reimbursement of expenses under Sections 6(c), 6(d),
or 6(e) shall be subject to liquidation or exchange for another benefit.

(g) Timing of Discretionary Bonus. Any discretionary bonus that may be payable to
the Executive pursuant to Schedule A-1 shall be paid after the end of the calendar year for
which the bonus is earned and shall be paid no later than December 31 of the calendar year
following the calendar year in which the bonus is earned.

20. Compliance with Internal Revenue Code Section 409A and 457A. This Agreement
is intended to comply with the requirements of Internal Revenue Code (the “Code”) Section 409A and
457A, as applicable, and the corresponding regulations and related guidance, and shall be
interpreted and administered in accordance with Section 409A and Section 457A, to the extent such
sections apply. To the extent Section 409A and/or Section 457A applies, the parties agree to work
together to ensure any payments pursuant to Section 7(e) of this Agreement or any other payment or
benefits provided under this Agreement that constitute non-exempt “deferred compensation” for
purposes of Section 409A of the Code comply with Section 409A and Section 457A, as applicable.
 

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IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above.

SEARCHMEDIA HOLDINGS LIMITED

By: /s/ Robert Fried

Name: Robert Fried

Title: Co-Chairman of the Board

EXECUTIVE

By:  /s. Paul Conway

Name: Paul Conway

1

Schedule A-1

Cash Compensation

	 	 	 	 	 
	 	 	Amount	 	Pay Period
	Base Salary 
	 	US $250,000 annually, subject to applicable

withholding and other taxes

 

  
	 	Payable in 12 equal

monthly

installments for

each calendar year

 

	Bonus
	 	Discretionary as approved by the Board of Directors.
	 	As determined by

the Board of

Directors

Schedule A-2

Initial Equity Award

Stock Options:

Subject to the approval of the Company’s Board of Directors, Executive will be granted an option to
purchase 250,000 shares of the Company’s common stock pursuant to the Amended and Restated 2008
Share Incentive Plan. This award will vest 83,333 shares on the one year anniversary of the date
of grant, 83,333 shares on the second anniversary on the date of grant and 83,334 on the third
anniversary of the date of grant and which will subject to the terms and conditions contained in a
stock option agreement to be entered into by you and the Company prior to the grant. The exercise
price per share will be equal to the closing price of the Company’s common stock on the date the
option is granted. Following any Change of Control Transaction, all unvested options in this grant
will vest upon the closing of the Change of Control Transaction. The number of options will be
adjusted for stock splits, recapitalizations, stock dividends, mergers and other corporate events
that occur after the date of this Agreement. The option exercise period will be ten (10) years.

Restricted Shares:

Subject to the approval of the Company’s Board of Directors, Executive will be granted 100,000
Restricted Shares pursuant to the Amended and Restated 2008 Share Incentive Plan which shall vest
three years from the date of grant, except as noted herein. Following any Change of Control
Transaction, any unvested Restricted Shares vest upon the closing of the Change of Control
Transaction. The number of Restricted Shares will be adjusted for stock splits, recapitalizations,
stock dividends, mergers and other corporate events that occur after the date of this Agreement.

2LEO MOTORS, INC.
                        2010 EMPLOYEE STOCK OPTION PLAN

1.     Purpose  of  the  2010  Employee  Stock  Option  Plan  (the  "Plan").

     The  purpose  of  the  Plan is to enable the Company to attract, retain and
motivate  its employees and qualified consultants by providing for or increasing
the  proprietary  interests  of  such employees in the Company through increased
stock  ownership.

     The  Plan  provides for options which either (i) qualify as incentive stock
options  ("Incentive Options") within the meaning of that term in Section 422 of
the  Internal  Revenue Code of 1986, as amended, or (ii) do not so qualify under
Section  422 of the Code ("Nonstatutory Options") (collectively "Options").  Any
Option  granted  under this Plan will be clearly identified at the time of grant
as  to whether it is intended to be either an Incentive Option or a Nonstatutory
Option.

2.     Definitions.

     The following terms, when appearing in the text of this Plan in capitalized
form,  will  have  the  meanings  set  out  below:

     (a)      "Board"  means  the  Board  of  Directors  of  the  Company.

     (b     "Code"  means  the  Internal  Revenue Code of 1986, as heretofore or
hereafter  amended.

     (c)     "Committee"  means the committee appointed by the Board pursuant to
Section  3  below.

     (d)     "Company"  means  Leo  Motors,  Inc.  or  any parent or "subsidiary
corporation,"  as  that  term is defined by Section 424(f) of the Code, thereof,
unless  the  context  requires  it  to  be  limited  to  Leo  Motors,  Inc.

     (e)     "Consultants"  means the class of persons consisting of individuals
engaged  by  the  Company  by  contract  or otherwise to provide services to the
Company  as  the  Committee  shall  so  determine.

     (f)     "Disabled  Grantee"  means  a  Grantee  who  is disabled within the
meaning  of  Section  422(c)(6)  of  the  Code.

     (g)     "Employees"  means the class of employees consisting of individuals
regularly  employed  by  the  Company  on  a  full-time  salaried  basis who are
identified  as  key employees, or such other employees as the Committee shall so
determine.

     (h)     "Executive Officer" means those individuals who, on the last day of
the  taxable year at issue:  (i) served as the Company's chief executive officer
or  was acting in a similar capacity, regardless of compensation level; and (ii)
the  four  most  highly  compensated  executive  officers  (other than the chief
executive  officer)  all  as  determined  pursuant  to  Treasury  Regulation
1.162-27(c)(2).

     (i)     "Fair  Market Value" means, with respect to the common stock of the
Company,  the  price  at which the stock would change hands between an informed,
able  and  willing  buyer  and seller, neither of which is under a compulsion to
enter  into the transaction.  Fair Market Value will be determined in good faith
by  the Committee in accordance with a valuation method which is consistent with
the  guidelines  set  forth  in  Treasury  Regulation  1.421-7  (e)  (2)  or any
applicable  regulations  issued  pursuant  to  Section  422(a)  of  the

<PAGE>
Code.  Fair  Market  Value  will be determined without regard to any restriction
other  than  a  restriction  which,  by  its  terms,  will  never  lapse.

     (j)     "Grantee"  means an eligible Employee or Consultant under this Plan
who  has  been  granted  an  Option.

     (k)     "Incentive  Option"  means an Option that qualifies for the benefit
described  in  Section  421  of  the  Code,  by  virtue  of  compliance with the
provisions  of  Section  422  of  the  Code.

     (l)     "Nonstatutory  Option"  means  an  Option  that is not an Incentive
Option.

     (m)     "Option"  means either an Incentive Option or a Nonstatutory Option
granted  under  this  Plan.

     (n)     "Option  Agreement"  means  the  agreement entered into between the
Company and an individual Grantee and specifying the terms and conditions of the
Option  granted  to  the  Grantee,  which  terms  and  conditions will recite or
incorporate by reference:  (i) the provisions of this Plan which are not subject
to  variation; and (ii) the variable terms and conditions of each Option granted
hereunder  which  will  apply  to  that  Grantee.

     (o)     "Optionee"  means  a  Grantee,  and,  under  the  appropriate
circumstances,  his  guardian,  representative,  heir,  distributee,  legatee or
successor  in  interest,  including  any  transferee.

     (p)     "Plan"  means  this 2010 Employee Stock Option Plan, as it may from
time  to  time  be  amended.

     (q)     "Stock"  means  the  Company's  common  stock.

3.     Administration  of  the  Plan.

     (a)     Committee  Membership.  The  Plan  shall  be  administered  by  a
committee appointed by the Board, to be known as the Compensation Committee (the
"Committee").  The  Committee  shall  be  not  less  than two members and to the
extent  possible shall be comprised solely of Non-employee Directors, as defined
by  Rule  16b-3(b)(3)(i) of the Securities Exchange Act of 1934 ("1934 Act"), or
any  successor definition adopted by the Securities and Exchange Commission, and
who  shall  each  also  qualify  as  an Outside Director for purposes of Section
162(m)  of  the  Code.  Any  vacancy occurring on the Committee may be filled by
appointment  by  the  Board.  The  Board at its discretion may from time to time
appoint  members  to  the  Committee  in  substitution  of  members  previously
appointed,  may  remove members of the Committee and may fill vacancies, however
caused,  in  the  Committee.  The Committee shall initially consist of Jung Yong
Lee  and  Young  Il  Kim.

      (b)     Committee  Procedures.  The  Committee  shall  select  one  of its
members  as  chairman and shall hold meetings at such times and places as it may
determine.  A  quorum  of  the  Committee  shall  consist  of  a majority of its
members,  and the Committee may act by vote of a majority of its members present
at a meeting at which there is a quorum, or without a meeting by written consent
signed  by  all  members  of  the  Committee.  If  any  powers  of the Committee
hereunder  are  limited or denied by the Board or under applicable law, the same
powers  may  be  exercised  by  the  Board.

     (c)     Committee  Powers  and  Responsibilities.  The  Committee  will
interpret  the  Plan,  prescribe,  amend  and  rescind  any rules or regulations
necessary or appropriate for the administration of the Plan, and make such other
determinations  and  take  such  other  actions it deems necessary or advisable,
except  as  otherwise  expressly  reserved  for  the  Board.  Subject  to  the
limitations  imposed  by  the Board or under applicable law and the terms of the
Plan,  the  Committee  may  periodically  determine  which  Employees  and/or

<PAGE>
Consultants  should receive Options under the Plan, whether the options shall be
Incentive  Options or Nonstatutory Options, the number of shares covered by such
Options,  the  per  share purchase price for such shares, and the terms thereof,
including  but  not  limited  to transferability of such Options, and shall have
full  power  to grant such Options.  In making its determinations, the Committee
shall  consider,  among  other relevant factors, the importance of the duties of
the  Grantee  to the Company, his or her experience with the Company, and his or
her  future  value  to  the  Company.  All  decisions, interpretations and other
actions  of  the Committee shall be final and binding on all Grantees, Optionees
and  all persons deriving their rights from a Grantee or Optionee.  No member of
the  Board or the Committee shall be liable for any action taken or failed to be
taken  in  good  faith  or  for  any  determination  made  pursuant to the Plan.

4.     Stock  Subject  to  Plan.

     This  Plan authorizes the Committee to grant Options to Employees up to the
aggregate  amount  of 10,000,000 shares of Stock, subject to eligibility and any
limitations  specified  herein.  Adjustment  in  the  shares subject to the Plan
shall  be made as provided in Section 9.  Any shares covered by an Option which,
for  any  reason, expires, terminates or is canceled may be reoptioned under the
Plan.

5.     Eligibility

     (a)     General Rule. All Employees and Consultants defined in Section 2(e)
and  2(g)  shall  be  eligible.

     (b)     Ten  Percent Stockholders.  An Employee or Consultant who owns more
than  ten  percent  (10%)  of  the total combined voting power of all classes of
outstanding  Stock  shall  not  be  eligible  for designation as a Grantee of an
Incentive  Option  unless (i) the exercise price for each share of Stock subject
to  such Incentive Option is at least one hundred ten percent (110%) of the Fair
Market  Value  of a share of Stock on the date of grant, and (ii) such Incentive
Option,  by its terms, is not exercisable after the expiration of five (5) years
from  the  date  of  grant.

     (c)     Attribution  Rules.  For  purposes  of  Subsection  (b)  above,  in
determining  stock  ownership,  an Employee or Consultant shall be deemed to own
the  Stock  owned,  directly  or  indirectly,  by  or  for his brothers, sisters
(whether  by  whole  or  half  blood), spouse, ancestors and lineal descendants.
Stock  owned,  directly  or  indirectly,  by  or for a corporation, partnership,
estate  or  trust  shall  be  deemed  to  be owned proportionately by or for its
stockholders,  partners  or  beneficiaries.

     (d)     Outstanding  Stock.  For  purposes  of  Subsection  (b)  above,
"Outstanding  Stock"  shall  include  all  Stock actually issued and outstanding
immediately  after  the  grant.  "Outstanding  Stock"  shall  not include shares
authorized for issuance under outstanding options held by the Employee or by any
other  person.

     (e)     Individual  Limits of Executive Officers. Subject to the provisions
of Section 9 hereof, the number of option shares granted in a fiscal year to any
Executive  Officer  shall not exceed 10,000,000 shares for the first fiscal year
during  which  such  person  becomes  an  Executive Officer and shall not exceed
20,000,000 shares for any subsequent fiscal year during which such person serves
as  an  Executive  Officer.

     (f)     Incentive  Option  Limitation.  The  aggregate Fair Market Value of
the  stock  for  which Incentive Options granted to any one eligible Employee or
Consultant  under  this  Plan  and under all incentive stock option plans of the
Company,  its  parent(s)  and  subsidiaries,  may  by  their  terms first become
exercisable during any calendar year shall not exceed $100,000, determining Fair
Market  Value  of  the stock subject to any Option as of the time that Option is
granted.  If  the  date  on  which  one or more Incentive Options could be first
exercised  would  be  accelerated pursuant to any other provision of the Plan or
any Stock Option Agreement referred to in Section 6(a), or an amendment thereto,
and  the  acceleration  of such exercise date would result in a violation of the
restriction  set  forth  in  the  preceding  sentence,  then notwithstanding any

<PAGE>
such  other  provision  the  exercise  date  of  such Incentive Options shall be
accelerated  only  to the extent, if any, that is permitted under Section 422 of
the  Code  and the exercise date of the Incentive Options with the lowest option
prices  shall  be  accelerated  first.  Any  exercise  date  which  cannot  be
accelerated  without  violating  the  $100,000 restriction of this section shall
nevertheless  be accelerated, and the portion of the Option becoming exercisable
thereby  shall  be  treated  as  a  Nonstatutory  Option.

6.     Terms  and  Conditions  of  All  Options  Under  the  Plan.

     (a)     Option  Agreement.  All  Options  granted  under  the Plan shall be
evidenced  by  a written Option Agreement and shall be subject to all applicable
terms  and  conditions  of  the  Plan  and may be subject to any other terms and
conditions  which  are  not  inconsistent  with the Plan and which the Committee
deems  appropriate  for  inclusion  in  an  Option  Agreement.

     (b)     Number  of  Shares.  Each Option Agreement shall specify the number
of  shares  of  the  Stock  each such Employee or Consultant will be entitled to
purchase  pursuant  to  the  Option and shall provide for the adjustment of such
number  in  accordance  with  Section  9.  Each Option Agreement shall state the
minimum  number  of  shares  which  must  be  exercised  at  any  time,  if any.

     (c)     Nature of Option.  Each Option Agreement shall specify the intended
nature  of the Option as an Incentive Option, a Nonstatutory Option or partly of
each  type.

     (d)     Exercise  Price.  Each  Option Agreement shall specify the exercise
price.  The  exercise  price  of either the Incentive Option or the Nonstatutory
Option  shall  not  be  less  than one hundred percent (100%) of the Fair Market
Value  of  a  share of Stock on the date of grant. Subject to the foregoing, the
exercise price under any Option shall be determined by the Committee in its sole
discretion.  The  exercise  price  shall  be  payable  in  the form described in
Section  7.

     (e)     Term of Option.  The Option Agreement shall specify the term of the
Option.  The  term  of  any  Option  granted  under  this  Plan  is  subject  to
expiration,  termination,  and  cancellation  as  set  forth  within  this Plan.

     (f)     Exercisability.  Each  Option Agreement shall specify the date when
all  or  any  installment  of  the Option is to become exercisable.  Such Option
shall  not be exercisable after the expiration of such term which shall be fixed
by  the  Committee, but in any event not later than ten years from the date such
Option  is  granted.  Subject  to  the provisions of the Plan, the Committee may
grant  Options which are vested, or which become vested upon the happening of an
event  or  events  as  specified  by  the  Committee.

     (g)     Withholding  Taxes.  Upon  exercise  of any Nonstatutory Option (or
any  Incentive Option which is treated as a Nonstatutory Option because it fails
to  meet  the  requirements  set  forth  in the Code for Incentive Options), the
Optionee  must  tender  full  payment  to the Company for any federal income tax
withholding  required  under  the  Code  in  connection  with  such  exercise
("Withholding  Tax").  If  the  Optionee  fails  to  tender  to  the Company the
Withholding  Tax,  the  Committee,  at  its  discretion, shall withhold from the
Optionee  any and all shares subject to such Option, and accordingly, subject to
Withholding  Tax until such time as either of the following events has occurred:

          (i)     the Employee tenders to the Company payment in cash to pay the
Withholding  Tax;  or

          (ii)     the  Company  withholds  from  the Employee's wages an amount
sufficient  to  pay  the  Withholding  Tax.

<PAGE>
     (h)     Termination  and  Acceleration  of  Option.

          For  Incentive  Options:

          (i)     If  the  employment of a Grantee who is not a Disabled Grantee
is  terminated without cause, or such Grantee voluntarily quits or retires under
any  retirement  plan of the Company, any then outstanding and exercisable stock
option  held  by  such  a  Grantee  shall be exercisable, in accordance with the
provisions  of  the  Option  Agreement, by such Grantee at any time prior to the
expiration  date  of  such  Option  or  within  three  months  after the date of
termination  of  employment  or  service,  whichever  is  the  shorter  period.

          (ii)     If  the  employment of a Grantee who is a Disabled Grantee is
terminated  without  cause,  any then outstanding and exercisable Option held by
such  a  Grantee  shall be exercisable, in accordance with the provisions of the
Option  Agreement, by such a Grantee at any time prior to the expiration date of
such  Option or within one year after the date of such termination of employment
or  service,  whichever  is  the  shorter  period.

          For  all  Options  issued  hereunder:

          (i)     If  the  Company  terminates  the  employment of a Grantee for
cause,  all  outstanding  stock  options held by the Grantee at the time of such
termination  shall  automatically  terminate  unless  the Committee notifies the
Grantee  that  his or her options will not terminate.  A termination "for cause"
shall  be  defined  under each written Option Agreement.  The Company assumes no
responsibility  and  is under no obligation to notify a Permitted Transferee (as
hereafter defined in section 13) of early termination of an Option on account of
a  Grantee's  termination  of  employment.

          (ii)     Whether  termination  of  employment  or  other  service is a
termination  "for  cause"  or  whether  a Grantee is a Disabled Grantee shall be
determined  in  each  case,  in  its  discretion,  by the Committee and any such
determination  by  the  Committee  shall  be  final  and  binding.

          (iii)     Following  the  death  of  a  Grantee during employment, any
outstanding  and  exercisable  Options held by such Grantee at the time of death
shall be exercisable, in accordance with the provisions of the Option Agreement,
by the person or persons entitled to do so under the Will of the Grantee, or, if
the  Grantee  shall fail to make testamentary disposition of the stock option or
shall  die  intestate,  by  the  legal representative of the Grantee at any time
prior to the expiration date of such Option or within one year after the date of
death,  whichever  is  the  shorter  period.

          (iv)     The  Committee may grant Options, or amend Options previously
granted, to provide that such Options continue to be exercisable up to ten years
after  the  date  of  grant  irrespective  of  the  termination of the Grantee's
employment with the Company, and which vest upon grant or become vested upon the
happening  of  an  event  or  events  specified  by  the Committee, although the
exercise of such vested Options in the case of Incentive Options more than three
months  after termination of employment may convert such Options to Nonstatutory
Options  with  respect  to  the  income  tax  consequences  of  such  exercise.

7.     Payment  for  Shares

     (a)     Cash.  Payment  in  full for shares purchased under an Option shall
be  made  in  cash (including check, bank draft or money order) at the time that
the  Option  is  exercised.

     (b)     Stock.  In  lieu  of  cash an Optionee may, with the consent of the
Committee,  make  payment  for  Stock  purchased under an Option, in whole or in
part,  by  tendering  to  the Company in good form for transfer, shares of Stock
valued  at  Fair  Market Value on the date the Option is exercised.  Such shares
will  have  been  owned by the Optionee or the Optionee's representative for the
time  specified  by  the  Committee

<PAGE>
but  in  no case shall the Optionee or his representative have held a beneficial
interest  in such tendered shares for a period less than six months prior to the
exercise  of  the  Option.

8.     Use  of  Proceeds  from  Stock.

     Cash  proceeds from the sale of Stock pursuant to Options granted under the
Plan  shall  constitute  general  funds  of  the  Company.

9.     Adjustments.

     Changes  or adjustments in the Option price, number of shares subject to an
Option  or  other specifics as the Committee should decide will be considered or
made  pursuant  to  the  following  rules:

     (a)     Upon  Changes  in  Stock.  If the outstanding Stock is increased or
decreased,  or  is  changed into or exchanged for a different number or kinds of
shares  or  securities,  as  a  result  of  one  or  more  reorganizations,
recapitalization,  stock  splits, reverse stock splits, split-up, combination of
shares,  exchange  of  shares,  change  in  corporate  structure,  or otherwise,
appropriate  adjustments  will  be made in the exercise price and/ or the number
and/or  kind of shares or securities for which Options may thereafter be granted
under  this  Plan  and  for  which  Options then outstanding under this Plan may
thereafter  be  exercised.  The  Committee  will make such adjustments as it may
deem  fair, just and equitable to prevent substantial dilution or enlargement of
the rights granted to or available for Optionees.  No adjustment provided for in
this  Section  9 will require the Company to issue or sell a fraction of a share
or  other  security.  Nothing  in  this Section will be construed to require the
Company  to  make  any  specific  or  formula  adjustment.

     (b)     Prohibited Adjustment.  If any such adjustment provided for in this
Section  9  requires the approval of stockholders in order to enable the Company
to  grant  or  amend  Options,  then no such adjustment will be made without the
required  stockholder approval.  Notwithstanding the foregoing, if the effect of
any such adjustment would be to cause an Incentive Option to fail to continue to
qualify  under  Section 422 of the Code or to cause a modification, extension or
renewal  of such stock option within the meaning described in Section 424 of the
Code,  the Committee may elect that such adjustment not be made but rather shall
use  reasonable efforts to effect such other adjustment of each then outstanding
Option  as the Committee, in its sole discretion, shall deem equitable and which
will  not  result  in  any  disqualification, modification, extension or renewal
(within  the  meaning  of  Section  424  of  the Code) of such Incentive Option.

     (c)     Further  Limitations.  Nothing  in  this  Section  will entitle the
Optionee  to  adjustment  of  his  Option  in  the  following  circumstances:

          (i)     The  issuance  or  sale  of  additional  shares  of the Stock,
through  public  offering  or  otherwise;

          (ii)     The  issuance  or  authorization  of  an  additional class of
capital  stock  of  the  Company;

          (iii)     The conversion of convertible preferred stock or debt of the
Company  into  Stock;  and

          (iv)     The payment of dividends except as provided in Section 9 (a).

The  grant  of  an  Option shall not affect in any way the right or power of the
Company  to  make  adjustments, reclassifications, reorganizations or changes of
its  capital  or  business  structure,  to  merge or consolidate or to dissolve,
liquidate,  sell  or  transfer  all  or  any  part  of  its  business or assets.

<PAGE>
10.     Legal  Requirements:

     (a)     Compliance  with  All  Laws.  The  Company  will not be required to
issue  or  deliver any certificates for shares of Stock prior to (a) the listing
of  any  such Stock to be acquired pursuant to the exercise of any Option on any
stock  exchange  on  which  the Stock may then be listed, and (b) the compliance
with  any  registration  requirements  or qualification of such shares under any
federal  securities  laws,  including  without  limitation the Securities Act of
1933, as amended ("1933 Act"), the rules and regulations promulgated thereunder,
or  state securities laws and regulations, the regulations of any stock exchange
or  interdealer  quotation  system on which the Company's securities may then be
listed,  or  obtaining  any  ruling or waiver from any government body which the
Company  may, in its sole discretion, determine to be necessary or advisable, or
which,  in  the  opinion  of  counsel  to  the  Company,  is otherwise required.

     (b)     Compliance  with Specific Code Provisions.  It is the intent of the
Company  that  the  Plan  and  its  administration  conform  strictly  to  the
requirements  of  Section  422  of  the  Code with respect to Incentive Options.
Therefore, notwithstanding any other provision of this Plan, nothing herein will
contravene  any requirement set forth in Section 422 of the Code with respect to
Incentive  Options  and  if  inconsistent provisions are otherwise found herein,
they  will be deemed void and unenforceable or automatically amended to conform,
as  the  case  may  be.

     (c)     Plan  Subject  to Delaware Law.  All questions arising with respect
to  the  provisions of the Plan will be determined by application of the laws of
the  state  of Delaware except to the extent that Delaware laws are preempted by
any  federal  law.

11.     Rights  as  a  Stockholder.

     An Optionee shall have no rights as a stockholder with respect to any Stock
covered by his Option until the date of issuance of the stock certificate to him
or  her  after  receipt  of  the  consideration  in full set forth in the Option
Agreement.  Except  as provided in Section 9 hereof, no adjustments will be made
for  dividends,  whether ordinary or extraordinary, whether in cash, securities,
or  other  property,  or for distributions for which the record date is prior to
the  date  on  which  the  Option  is  exercised.

12.     Restrictions  on  Shares.

     Prior  to  the  issuance  or  delivery of any shares of the Stock under the
Plan,  the  person  exercising  the  Option  may  be  required  to:

     (a)     represent  and  warrant that the shares of the Stock to be acquired
upon exercise of the Option are being acquired for investment for the account of
such  person  and  not  with  a  view  to  resale or other distribution thereof;

     (b)     represent  and  warrant  that  such  person  will  not, directly or
indirectly,  sell, transfer, assign, pledge, hypothecate or otherwise dispose of
any  such shares unless the sale, transfer, assignment, pledge, hypothecation or
other  disposition  of the shares is pursuant to the provisions of this Plan and
effective  registrations  under the 1933 Act and any applicable state or foreign
securities  laws  or  pursuant  to  appropriate  exemptions  from  any  such
registrations;  and

     (c)     execute such further documents as may reasonably be required by the
Committee  upon  exercise  of  the Option or any part thereof, including but not
limited  to  any  stock  restriction  agreement that the Committee may choose to
require.

     Nothing  in  this Plan shall assure any Optionee that shares issuable under
this  Option  are  registered  on  a Form S-8 under the 1933 Act or on any other
Form.  The  certificate  or certificates representing the shares of the Stock to
be  issued  or delivered upon exercise of an Option may bear a legend evidencing
the

<PAGE>
foregoing  and  other  legends  required  by  any  applicable  securities  laws.
Furthermore,  nothing  herein  or  any Option granted hereunder will require the
Company to issue any Stock upon exercise of any Option if the issuance would, in
the  opinion of counsel for the Company, constitute a violation of the 1933 Act,
applicable  state  securities  laws,  or any other applicable rule or regulation
then in effect.  The Company shall have no liability for failure to issue shares
upon  any exercise of Options because of a delay pending the meeting of any such
requirements.

13.     Transferability.

     The  Committee  shall  retain  the  authority  and  discretion  to permit a
Nonstatutory  Option,  but in no case an Incentive Option, to be transferable as
long  as  such  transfers  are made only to one or more of the following: family
members,  limited to children of Grantee, spouse of Grantee, or grandchildren of
Grantee,  or  trusts  for  the  benefit  of  Grantee  and/or such family members
("Permitted  Transferee"),  provided  that such transfer is a bona fide gift and
accordingly,  the  Grantee  receives no consideration for the transfer, and that
the  Options transferred continue to be subject to the same terms and conditions
that  were applicable to the Options immediately prior to the transfer.  Options
are  also  subject  to transfer by will or the laws of descent and distribution.
Options  granted  pursuant  to  this  Plan  shall  not be otherwise transferred,
assigned,  pledged, hypothecated or disposed of in any way, whether by operation
of  law  or  otherwise.  A Permitted Transferee may not subsequently transfer an
Option.  The  designation  of  a  beneficiary  shall  not constitute a transfer.

14.     No  Right  to  Continued  Employment.

     This  Plan  and any Option granted under this Plan will not confer upon any
Optionee  any  right  with  respect to continued employment or engagement by the
Company  nor  shall  they  alter,  modify,  limit or interfere with any right or
privilege  of the Company under any employment agreement heretofore or hereafter
executed  with  any  Optionee,  including  the right to terminate any Optionee's
employment  or engagement at any time for or without cause, to change his or her
level  of  compensation  or  to  change his or her responsibilities or position.

15.     Corporate  Reorganizations.

     Upon  the  dissolution  or  liquidation  of  the  Company,  or  upon  a
reorganization,  merger or consolidation of the Company as a result of which the
outstanding  securities  of  the  class  then  subject  to Options hereunder are
changed  into  or  exchanged  for  cash  or  property  or  securities not of the
Company's issue, or upon a sale of substantially all the property of the Company
to,  or  the acquisition of stock representing more than eighty percent (80%) of
the  voting  power  of  the  stock  of  the  Company then outstanding by another
corporation  or person, the Plan will terminate and all Options will lapse.  The
result  described  above  will  not  occur  if  provision  is made in writing in
connection  with such transaction for the continuance of the Plan and/or for the
assumption  of  Options earlier granted, or the substitution for such Options of
options covering the stock of a successor employer corporation, or a parent or a
subsidiary  thereof,  with  appropriate adjustments as to the number and kind of
shares  and prices, in which event the Plan and Options theretofore granted will
continue  in  the  manner  and  under  the  terms  so provided.  If the Plan and
unexercised  Options  shall  terminate  pursuant  to  the foregoing, all persons
holding  any  unexercised  portions  of  Options then outstanding shall have the
right,  at  such  time  prior to the consummation of the transaction causing the
termination as the Company shall designate, to exercise the unexercised portions
of  their  options,  including  the  portions  thereof  which would but for this
Section  15  not  yet  be  exercisable.

16.     Modification,  Extension  and  Renewal.

     (a)     Options.  Subject  to  the conditions of and within the limitations
prescribed in the Plan herein, the Committee may modify, extend, cancel or renew
outstanding  Options.  Notwithstanding  the  foregoing,  no  modification  will,
without  the  prior  written consent of the Optionee, alter, impair or waive any
rights or obligations associated with any Option earlier granted under the Plan.

<PAGE>

     (b)     Plan.  The  Board  may at any time and from time to time interpret,
amend  or discontinue the Plan, subject to the limitation, however, that, except
as  provided  in  Section  9 (relating to adjustments upon changes in stock), no
amendment  shall  be  made,  except  upon  stockholder  approval,  which  will:

          (i)     Increase  the  number of shares reserved for Options under the
Plan;  or

          (ii)     Reduce  the  Option  price below 100% of Fair Market Value at
the  time  an  Option  is  granted;  or

          (iii)     Change  the  requirements  for eligibility for participation
under  the  Plan.

17.     Plan  Date  and  Duration.

     The Plan shall take effect on the date it is adopted by the Board.  Options
may  not  be  granted  under  this  Plan  after  December  31,  2013.

                            CERTIFICATE OF ADOPTION

     The  above  2010  Employee  Stock  Option Plan was adopted the  15th day of
January,  2010  by  unanimous  written  consent of the Board of Directors of Leo
Motors,  Inc.

DIRECTORS  OF  LEO  MOTORS,  INC.

\s\ Shi Chul Kang
-----------------
Shi  Chul  Kang

\s\ Young Il Kim
----------------
Young  Il  Kim

\s\ Jung Yong Lee
-----------------
Jung  Yong  Lee

<PAGE>
Form of Stock Option Agreement

                             STOCK OPTION AGREEMENT

     This STOCK OPTION AGREEMENT ("Agreement") is dated as of Feb 1st  2010 (the
"Effective  Date"), by and between Leo Motors, Inc., a Delaware corporation (the
"Company"),  and  Shi  Chul  Kang,  an  individual  ("Holder").

                                    RECITALS

     WHEREAS,  pursuant  to  the  Company's  2010 Employee Stock Option Plan the
Company proposes to issue to Holder an option to acquire up to 10,000,000 shares
(the  "Shares")  of  the  authorized and issued common stock of the Company (the
"Common  Stock")  in  accordance  with  the  terms  of  this  Agreement;  and

     WHEREAS,  in consideration of the promises and the mutual agreements herein
set  forth,  the  parties  hereto  agree  as  follows:

                                   AGREEMENT

     SECTION  1.  Issuance  of  Option.  Upon  execution  of this Agreement, the
                  ---------------------
Company  hereby  issues  Holder  an  option  to acquire 10,000,000 shares of the
Company's Common Stock at $ 1.20 per share (the Exercise Price"), subject to the
terms  of  this  Agreement (the "Option"), as well as the terms of the Company's
2010  Employee  Stock Option Plan (the "Plan").  The terms and conditions of the
Plan  are  hereby  incorporated  by  referenced.

     SECTION  2.   Vesting  of the Option.  Holder's right to acquire the Shares
                   -----------------------
shall  vest immediately.  However, Holder can exercise the Option after one year
from  the  effective  date  of  this  Agreement

     Upon  such  exercise  of  the  Option and payment of the Exercise Price the
Company  shall cause to be issued and delivered promptly to Holder a certificate
for  the  Shares  issuable  upon  the  exercise  of  the  Option.

     SECTION  3.   Expiration of Option.   Holder's option rights to acquire the
                   ---------------------
Shares shall expire on the earlier of (i) five (5) years following the Effective
Date  of  this  Agreement,  (ii)  immediately  upon  termination of the Holder's
employment  or  engagement  with  the Company if the termination is for "cause",
(iii)  one  year  from  the  date  of  the  death of the Holder, or (iv) 90 days
following  termination of the Holder's employment or engagement with the Company
so  long  as  such  termination  is  not  for  "cause".

     SECTION  4.   Mutilated  or  Missing  Option  Certificates.   In  case  the
                   ---------------------------------------------
original  of  this  Agreement shall be mutilated, lost, stolen or destroyed, the
Company  shall  issue  and  deliver,  in  exchange and substitution for and upon
cancellation  of  this Agreement, a new Option of like tenor and representing an
equivalent  right  or  interest.

<PAGE>
     SECTION 5.   Reservation of Shares.   The Company will at all times reserve
                  ----------------------
and  keep  available,  free  from preemptive rights, out of the aggregate of its
authorized  but  unissued Common Stock or its authorized and issued Common Stock
held in its treasury for the purpose of enabling it to satisfy its obligation to
issue  Shares upon exercise of the Option, the full number of Shares deliverable
upon  the  exercise  of  the  entire  Option.

     SECTION  6.   Non-Assignable  Option  Rights.   Holder's  Option  right  to
                   -------------------------------
acquire  all or the balance of Shares that Holder has the right to acquire under
this  Agreement  is  non-assignable  by  Holder.

     SECTION  7.   Certificates  to  Bear  Language.   Unless  appropriately
                   ---------------------------------
registered  with  the  US Securities and Exchange Commission, the Shares and the
certificate  or certificates evidencing any such Shares shall bear the following
legend:

"THE  SHARES (OR OTHER SECURITIES) REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED  UNDER  THE  SECURITIES  ACT  OF 1933.  THE SHARES MAY NOT BE SOLD OR
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF COUNSEL THAT AN
EXEMPTION  FROM  REGISTRATION  UNDER  SUCH  ACT  IS  AVAILABLE."

Share  Certificates  can be issued, without such restrictive language or legend,
if  the  Option  or  the  Shares  are sold pursuant to an effective registration
statement  under  the  Securities  Act of 1933 or if the Company has received an
opinion  from  counsel, reasonably satisfactory to counsel for the Company, that
such  restrictive  language  or  legend  is  no  longer  required under the Act.

     SECTION 8.   Consolidation, Merger or Sale of the Company.   If the Company
                  ---------------------------------------------
is  a  party to a consolidation, merger or transfer of assets which reclassifies
or  changes  its  outstanding  Common  Stock,  the  successor  corporation  (or
corporation  controlling  the  successor corporation or the Company, as the case
may  be)  shall  by operation of law assume the Company's obligations under this
Agreement.  Upon consummation of such transaction the Option shall automatically
become  exercisable  for the kind and amount of securities, cash or other assets
which  the  holder  of  the  Option  would  have  owned  immediately  after  the
consolidation,  merger  or  transfer  if  the  holder  had  exercised the Option
immediately  before  the  effective  date  of  such  transaction.

     SECTION  9.   Notices  to  Company  and  Holder.   Any  notice  or  demand
                   ----------------------------------
authorized  by  this Agreement to be given or made by Holder or by Company shall
be  sufficiently  given  or  made  if sent by  registered mail, postage prepaid,
return  receipt  requested  to  the principal office of the party to receive the
notice  if  to  the  Holder  at  the last address provided to the Company by the
Holder  and  if  to  the  Company  as  below:

Leo  Motors,  Inc.
291-1,  Hasangok-dong,  Hanam  City,  Gyeonggi-do
Republic  of  Korea  465-250

<PAGE>
     SECTION  10.   Supplements  and  Amendments.   This  Agreement  may only be
                    -----------------------------
amended  with  the  express  written  consent  of  Holder  and  the  Company.

     SECTION  11.   Successors.   All  the  covenants  and  provisions  of  this
                    -----------
Agreement  by  and for the benefit of the Company of Holder shall bind and inure
to  the  benefit  of  their  respective  successor  and  assigns  hereunder.

     SECTION 12.   Counterparts.   This Agreement may be executed in one or more
                   -------------
counter  parts,  such  that  when  integrated  together they will form a binding
Agreement.

     IN  WITNESS  WHEREOF,  the  parties hereto have caused this Agreement to be
duly  executed,  as  of  the  date  and  year  first  above  written.

LEO  MOTORS,  INC.

-----------------
By:     Shi  Chul  Kang,  Chief  Executive  Officer

-----------------
By:     Jung  Yong  Lee,  Director

------------
By:     Young  Il  Kim,  Director

HOLDER

_______________________________________
Name:

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