Document:

English Translation of Agency Sales Cooperation Agreement

 Exhibit 10.18 
 English Translation 
 Agency Sales Cooperation Agreement for Taomee
Internet Physical Cards 
 (Hunan) 
 THIS AGENCY SALES COOPERATION AGREEMENT FOR TAOMEE INTERNET PHYSICAL CARDS (this “Agreement”) is entered into in Shanghai on December 20, 2009 by and between 

Party A: Shanghai Taomee Network Technology Co., Ltd. 
 Address: 24/F, Building 20, Gem Tower, 487, Tianlin Road, Xuhui District, Shanghai, 
 Zip code:
200233 
 Tel.: 021-61280056 
 Fax:
021-33674311 
 Bank A/C No.: 3100 1613 4020 5000 7213 
 Opening bank: China Construction Bank Shanghai Caohejing Sub-branch 
 Account name: Shanghai Taomee
Network Technology Co., Ltd. 
 Alipay account: zhifubao@taomee.com 
 and 
 Party B: Guangzhou New Fanlian Digital Technology Co., Ltd. 

Address: 20/F, Fengwei Building, No. 108, Siyouxin Road, Wuyang New Town, Yuexiu District, Guangzhou 

Zip code: 510600 
 Tel.: 020-87383888 

Fax: 020-87372488 
  

	Article 1	WHEREAS: 

 The internet products operated
by Party A in China use Mimi cards charging as the means for payments. 
 Party B is a software sale and service enterprise with rich
experiences in the sale of software and network products as well as good local channel coverage and marketing capabilities. 
 Party A and Party
B, based on their respective strengths, are willing to cooperate with each other by authorizing Party B to provide Taomee Mibi selling services in the regions designated herein. 

  
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	Article 2	Definitions 

 Unless otherwise agreed
herein, the following terms shall have the following meanings: 
 2.1 Taomee Mibi 

Taomee Mibi are virtual currencies issued by Taomee and purchased and used by users as the payment vouchers for ordering or selecting related value-added
services from Taomee’s website. Each Taomee Mibi is worth RMB1 (subject to the announcements made by Taomee company). 
 2.2 Taomee Mibi
Physical Cards 
 As a payment card for Taomee Mibi, Taomee Physical Card supports the free selection of a series of Taomee-related charging
services according to the Mibi amount in the card. Due to the physical nature, it is named as Taomee Mibi Physical Card (hereinafter referred to as the “Physical Card”). They include but are not limited to two forms, one with a face value
of RMB30 and the other RMB10. 
 Physical cards apply to all the products under the Taomee network platform, including but not limited to
Mole’s World, Seer and other forthcoming products. 
 2.3 Month 
 When the word “month” used in different places herein means a unit of time, it refers to the period of time from the first day to the last day of a month, except the month in which this
Agreement is signed. 
 2.4 Agreed Region 
 Party B is authorized as the sole and exclusive agent for Party A’s Taomee Mibi Physical Cards in the Hunan Province of the People’s Republic of China (hereinafter referred to as the
“Agreed Region”). During the term of this Agreement, Party A shall not authorize any third party to sell Taomee Mibi Physical Cards in Hunan Province. 
 2.5 Nature of the Sale of Physical Cards 
 2.5.1 The terminals of sale of
Physical Cards include but are not limited to software stores, newsstands, supermarkets, convenience stores, etc. 
 2.5.2 It is
prohibited to scratch the coating of Physical Cards to sell the card number and password in Internet or otherwise to conduct sales in a virtual manner based on the Physical Cards. 

 

	Article 3	Representations and Warranties 

  

	3.1	It is hereby warranted by both Party A and Party B that they are qualified for engaging in the transactions hereunder and that such transactions fall within their
respective scope of business. 

  

	3.2	It is hereby warranted by both Party A and Party B that they are fully qualified for concluding this Agreement and performing their respective obligations hereunder.

  

	3.3	Each party warrants that its authorized representative has the full authority to execute this Agreement on its behalf. 

  
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	3.4	During the term hereof, Party B cannot operate competitive products of the same kind of Party A’s product. (This clause can be incorporated herein based on
specific circumstances.) 

  

	Article 4	Supply, Pricing and Settlement 

  

	4.1	Agency prices refer to the actual prices at which Party A provides online charging cards to Party B. The margin between the distribution price and the supply price is
the service fee income for Party B. The supply price offered by Party A to Party B will be calculated at a certain discount rate. For the specific supply prices, please see Attachment 1 (“Commercial Terms and Conditions”) hereto.

  

	4.2	When Party B buys Taomee Mibi from Party A during the term of this Agreement, it shall appropriately give Party A a notice 5 working days in advance about the types and
quantities of products which it wants to buy. Party A or an agent designated by Party A shall directly deliver products to Party B, provided that the delivery will be made only after payments are made by Party B. 

 

	4.3	For details about the principles for buying and receiving goods by agents, please see Attachment 1 (Commercial Terms and Conditions) hereto. 

 

	Article 5	Marketing and Technical Support 

  

	5.1	Party A has the obligation to provide Party B with timely technical support, information and data relating to product sales so that Party B may carry out sales and
promotional work. 

  

	5.2	Party A shall fully and accurately provide the marketing strategy and promotional plan for its products. When carrying out promotional activities, Party A shall notify
Party B in advance, so that Party B can cooperate in connection with sales. Party A shall use effective channels (e.g. Party A’s website, Taomee login interface, etc. to let users know the promotional activities of Taomee Mibi.

  

	5.3	It is determined by Party A and Party B through negotiation that Party A shall actively support Party B in marketing and advertising; that Party A’s market
promotional activities shall mainly be sponsored or assisted by Party B. 

  

	5.4	It is determined by Party A and Party B through negotiation that, during the sales process, Party B may cooperate Party A in promoting and publicizing products through
distributing promotional materials, hosting exhibitions, organizing topic-specific promotions, etc, for free or with compensation. Details shall be separately agreed by both parties. Party B shall actively publicize the Party A’s products and
duly carry out its sales work in its sales region. 

  

	5.5	Common Advertisement Support - Party A and Party B shall closely collaborate in promoting and publicizing the Taomee Mibi Physical Cards. 

  
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	Article 6	Product Replacement 

  

	6.1	As for the agents for the Taomee Mibi Physical Cards, in the event that any Mibi Physical Cards are unable to be used within the valid period set in the card face due
to Party A’ reason, Party A shall replace those products and complete the product replacement and deliver the replacement products to Party B within 30 days after Party B returns the defective products to Party A. 

 

	6.2	The Taomee Mibi Physical Cards to be replaced as above must have been purchased from Party A or its designated agent during the term of this contract and the time of
return to Party A shall be no later than 30 working days prior to the last day of the valid term as indicated on the card. Otherwise, Party A will make no replacement. The costs arising in connection with such replacement (including transport costs,
insurance premium, loading and unloading costs, cost of production, necessary handling charge, etc) shall be borne by Party B. 

  

	Article 7	After-sale Services 

  

	7.1	Party A shall provide users with good after-sale services and Party B may assist Party A in doing so. 

 

	7.2	Party A shall notify Party B of the way and approach by which users may have access to services for the above-mentioned products to ensure that users have access to
corresponding training, maintenance, upgrade and other services. If the way and approach to service is changed, Party A shall promptly notify Party B of such change. 

 

	7.3	When any of Party A’s product is upgraded, Party A shall notify Party B of such update in writing beforehand, detailing the way for upgrading the product, Party
B’s settlement means, etc. Party A shall ensure that Party B can successfully conduct upgrading for users. 

  

	7.4	At Party A’s request, Party B shall promptly feed back sales situation, users’ records, product quality issues and users’ opinions to Party A.

  

	Article 8	Confidentiality 

  

	8.1	Party A shall strictly keep confidential and not disclose to any third party any and all the sales, market, inventory information, etc. provided by Party B.

  

	8.2	Party B shall strictly keep confidential and not disclose to any third party any and all the market, price, agency stipulations information provided by Party A in
connection with the products 

  

	8.3	Each party shall also keep confidential the other party’s business secrets (operational information, technical information, etc), regardless if such secrets were
obtained at the time of signing, during performance or after termination hereof. The obligation for confidentiality will not be terminated when this Agreement terminates. 

 

	8.4	Unless required by any lawsuit or arbitration regarding this Agreement, neither party shall disclose any content hereof to any third party without prior consent from
the other party. 

  
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	Article 9	Party A’s Warranties for Products and Services 

  

	9.1	Party A is responsible for maintenance of the service websites and customer client programs for Taomee Mibi to ensure that users enjoy the services promised by Party A.

  

	9.2	Party A warrants that all the Taomee Mibi sold by Party B are safe and valid and can be effectively registered within six months after this Agreement terminates. If the
registration period implemented by Party A is longer, the longer shall be adopted. 

  

	9.3	Party A is responsible for setting the service contents of Taomee Mibi cards. Party A shall promptly report to Party B the introductions of newly added services and
improvements on existing services, respect and listen to the service opinions and suggestions offered by Party B and promptly answer them. 

  

	9.4	Party A is responsible for providing Taomee Mibi users with services, including answering user questions, handling user complaints and feedback, etc.

  

	9.5	All the intellectual property rights owned by Party A are owned by Party A. This Agreement does not grant Party B any right for owning any of Party A’s
intellectual property rights. When performing this Agreement, Party B shall respect the intellectual property rights (patent rights, trademark rights, copyrights, etc) of Party A. Party B shall use the intellectual property rights owned by Party A
solely for the purpose of performing this Agreement. If Party B intends to use any of the intellectual property rights owned by Party A for any purpose out of the scope of performing this Agreement, Party B shall give Party A 15 days’ written
notice and obtain written consent from Party A before using such intellectual property right. 

  

	Article 10	Term, Effectiveness and Renewal of Agreement 

  

	10.1	Attachment 1 (Commercial Terms and Conditions) and Attachment 2 (Rebate Calculation Method) hereto are integral parts hereof. Such attachments have the same legal force
as this Agreement and will be officially implemented on and from the date of effectiveness hereof. Taomee reserves the right to amend, supplement and interpret the two attachments. This Agreement will take effect when signed by and affixed with the
company seals of both parties. The term of this Agreement will last until December 31, 2010. 

  

	10.2	When the term of this Agreement ends, both parties may sign a written agreement to extend the term. 

 

	Article 11	Liabilities for Breach of Contract 

  

	11.1	Both parties shall strictly abide by the provisions herein. If any party suffers any adverse social impact or economic loss due to any material default on the other
party, the former shall have the right to hold the latter liable, requesting the latter to eliminate the impact and compensate the former for the corresponding economic loss, and terminate this Agreement, unless otherwise provided for herein.

  
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	11.2	If any party cannot perform or fully perform its obligations hereunder due to any inevitable/irresistible force majeure event (earthquake, flood, fire disaster, policy
change, etc), the affected party may be exempt from or partly exempt from liabilities of breach, provided that it shall notify the other party in a timely manner and provide the other party with a document that effectively evidence the occurrence of
the force majeure event. In reasonable time after the impact of the force majeure event disappears, either party or both parties shall continue to performance this Agreement. 

 

	Article 12	Settlement of Disputes 

 Any dispute
arising out of performing this Agreement shall be solved by both parties through friendly negotiation. In case negotiation fails to solve the dispute, either party may submit it to the people’s court that has jurisdiction over this Agreement
for judgment. 
  

	Article 13	Miscellaneous 

 For any matter not covered
herein, both parties may sign a supplementary agreement which shall have the same legal force as this Agreement. 
  

	
	Party A
	[seal: Shanghai Taomee Network Technology Co., Ltd.]
	Legal or authorized representative: /s/ Cheng Yunpeng

  

	
	Party B
	[seal: Guangzhou New Fanlian Digital Technology Co., Ltd.]
	Legal or authorized representative

  
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 Attachment 1 Commercial Terms and Conditions 

 

	I.	Ordering and delivery 

 1. Party B submits
order requirements to Party A’s channel manager. After Party A’s channel manager confirms that the inventory is sufficient, Party B fills out, signs and affixes its company seal to the Internet physical card order form, and makes payment
through Alipay or bank remittance. At the same time, Party B shall fill out the order application form in the card system. 
 2. If Party B uses
any personal bank account or any other bank account of any non-contractual company to make payment, a collection and payment agreement shall be signed beforehand. 
 3. Party B shall fill out the order application form in the card system by 15:30 every working day and fax the order form and remittance slip to Party A’s Sales Support at 021-33674012. 

4. An order entered into the system by Party B and faxed after 15:30 will be regarded as an order for the next day; for an order whose payment is
received by 16:00 of a working day, Party A will arrange the card factory to make delivery within 2 working days. 
 5. Instructions for
ordering: the order quantity of cards with a face value of RMB10 must be multiples of 2000, while that of RMB30 must be multiples of 100. 
  

	II.	First payment 

 1. If Party B acts as an
agent for Mimi cards for the first time, the total RMB amount (calculated at the discount price offered by Party A to Party B) of the first Mimi cards undertaken by Party B shall be Renminbi Zero (in figures: RMB 0 ) (hereinafter
referred to as the “First Payment”). 
 2. Party B undertakes to make the First Payment within one week after conclusion hereof for
purchasing the Internet physical cards. Party A will deliver the goods after receipt of the payment. If Party B fails to make the first payment within the specified time, Party A shall have the right to unilaterally rescind this Agreement.

 3. Unless otherwise agreed by both parties, Party A will at its own expense deliver the Internet physical cards to the following address
designated by Party B: 
  

					
	Recipient:	 	 Lu Zhiwei
	 	

					
			
	Tel.:	 	 13560245715
	 	

					
		
	Address:	 	 20/F, Fengwei Building, No. 108, Siyouxin Road, Wuyang New Town, Yuexiu District,
Guangzhou

					
			
	Zip code:	 	 510600
	 	

  
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	III.	Prices 

 1. Party A will offer Party B a
price discount of 16%. The sales prices offered by Party B to its sub-agents and end users shall not exceed the face values of cards. 
 2. Mimi
cards can be used nationwide and are not subject to regional settings or divided by region. 
 3. The valid period of any Mimi card is no longer
than two years. 
 Note: After the execution of this Agreement, in the event of launch of new products, Party A will release sales policies for
new products and have the right to decide whether the sales policies hereunder apply to new products. 
  

	IV.	Rebates 

 1. Taomee Network will offer any
distributor with a rebate of a certain numerical value as reward on the basis of the distributor’s sales amount for the previous rebate calculating period and the consumption of cards charged in its region. 

2. The maximum rebate is 4%. 
 3. The rebate
will be calculated on a monthly basis. The reward will be granted to offset the price for the cards shipped to the distributor next time. 
 4.
All rebates shall be preconditioned on the channel policy of Taomee Network. 
 5. For the method for calculating rebate percentage, please see
Attachment 2. 
  

	V.	Sales rewards 

 Party A will provide Party
B with extra rewards on the basis of the work performance of Party B. 
 The term of this Attachment shall be the same as that of the Main
Agreement. 
 This Attachment will take effect on and from the day it is signed by and affixed with the company seals of both parties.

  

	
	Party A
	[seal: Shanghai Taomee Network Technology Co., Ltd.]
	Representative: /s/ Cheng Yunpeng

  

	
	Party B
	[seal: Guangzhou New Fanlian Digital Technology Co., Ltd.]
	Representative:

  
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 Attachment 2 Rebate Calculation Method 
 The rebate for Internet physical cards consists of three parts: local consumption rate, market share and channel manager evaluation. 
 The weights of local consumption rate, market share and channel manager evaluation are 60%, 20% and 20%, respectively. 
 i.e.: 
 Rebate = Quantity shipped for current month × (rebate percentage obtained for local
consumption rate + rebate percentage obtained for market share + rebate percentage obtained for channel manager evaluation) 
 (1) Rebate
percentage calculation method for local consumption rate 
 Local consumption rate is the quotient obtained through dividing the consumption
within the local region of Mimi cards sold by an agent during a certain period of time by the consumption of Mimi cards sold by the same agent during the same period of time. 
 Rebate percentage obtained for local consumption rate 
  

			
	Local consumption rate (X)	  	Rebate percentage obtained
	Local consumption rate <60%	  	0
	60%£ local consumption rate<85%	  	Base rebate percentage (4%) × X × 60%
	85%£ local consumption rate	  	Base rebate percentage (4%) × 60%

Note: For the local consumption rate (X× 100%) ranges 0-60%, 60%-85% and 85-100% in the rebate percentage calculation table, the boundaries are
temporary and determined by Taomee Network on the basis of the market conditions. 
 Taomee Network will adjust the local consumption rate for
every agent on a monthly basis. If the local consumption rate is found to be lower than 60% for one time, Taomee Network will alert the agent of this. If the local consumption rate is found to be lower than 60% twice, Taomee Network will warn the
agent. If the local consumption rate is lower than 60% for three consecutive months, this Agreement will be regarded as unilaterally terminated by the agent. 
 (2) Rebate percentage calculation method for market share 
 Market share is the quotient obtained
through dividing the consumption within the local region of Mimi cards sold by an agent during a certain period of time by the total consumption of Mimi cards within the region of the same agent during the same period of time. 

When the local market share of the agent is lower than a certain percentage, we may consider degrading or replacing the agent. 

Rebate percentage obtained for market share 
  

			
	Market share (X)	  	Rebate percentage obtained
	Market share <60%	  	0
	60%£ market share <85%	  	Base rebate percentage (4%) × X × 20%
	85%£ market share	  	Base rebate percentage (4%) × 20%

  
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 Note: For the market share (X× 100%) ranges 0-60%, 60%-85% and 85-100% in the rebate percentage
calculation table, the boundaries are temporary and determined by Taomee Network on the basis of the market conditions. 
 (3) Rebate percentage
calculation method for channel manager evaluation 
 The full score for channel manager evaluation is 100 marks, including the following parts:

 (a) Information collection evaluation: Agent shall cooperate with the relevant department of Taomee Network in collecting various kinds of
related information. Agents at various levels must feed important information back to the Channel Department of Taomee Network as soon as possible. If any agent fails to report any related information in a timely manner or if it reports any untrue
information which causes any serious impact, Taomee Network shall have the right to rescind the agent relationship at any time and, depending on the severity of the circumstance, deduct the agency fee. If any information provided by an agent is
indeed valuable and positively promotes the development of Taomee Network, Taomee Network will grant the certain reward to the agent. 
 (b)
Work attitude evaluation: Distributor shall actively carry out related jobs and cooperate with Taomee Network in performing activities within the region for which it is responsible, including submitting routine work reports, collecting market
information, organizing team building, etc. 
 (c) Non-disclosure system evaluation: Distributor shall not, for any reason whatsoever, disclose
any of Taomee Network’s business secrets to any third party, especially Taomee Network’s competitors, failing which it will be subject to severe penalty and, if the circumstance is serious, legal liability. 

(d) Routine work. 
 Scoring
Composition Table 
  

					
	 Scoring item
	  	Weight	 
	 Information collection
	  	 	0-15	  
	 Work attitude
	  	 	0-35	  
	 Non-disclosure system
	  	 	0-10	  
	 Routine work
	  	 	0-40	  
		  	 	 	 
	 Total score
	  	 	x	  
		  	 	 	 

 Rebate percentage for channel manager evaluation = x% × base rebate percentage (4%) × 20% 

The term of this Attachment shall be the same as that of the Main Agreement. 
 All the matters covered herein shall be subject to this Attachment. Any matter not covered herein shall be subject to the provisions of the Main Agreement. 

  
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 This Attachment will take effect on and from the day it is signed by and affixed with the company seals of
both parties. 
  

	
	Party A
	[seal: Shanghai Taomee Network Technology Co., Ltd.]
	Representative: /s/ Cheng Yunpeng

  

	
	Party B
	[seal: Guangzhou New Fanlian Digital Technology Co., Ltd.]
	Representative

  
 11English Translation of Agency Sales Cooperation Agreement

 Exhibit 10.19 
 English Translation 
 Agency Sales Cooperation Agreement for Taomee
Internet Virtual Cards 
 THIS AGENCY SALES COOPERATION AGREEMENT FOR TAOMEE INTERNET VIRTUAL CARDS (hereinafter referred to as “this
Agreement”) is entered into in Shanghai on December 20, 2009 by and between: 
 Party A: Shanghai Taomee Network Technology Co., Ltd.

 Address: 24/F, Building 20, Gem Tower, 487 Tianlin Road, Xuhui District, Shanghai 
 Zip Code: 200233 
 Tel.: 021-61280056 
 Fax: 021-33674311 
 Bank Acount No.: 3100 1613 4020 5000 7213 

Opening bank: China Construction Bank Shanghai Caohejing Sub-branch 
 Account name: Shanghai Taomee Network Technology Co., Ltd. 
 Alipay account:
zhifubao@taomee.com 
 and 

Party B: Guangzhou New Fanlian Digital Technology Co., Ltd.  
 Address: 20/F, Fengwei Building, No. 108, Siyouxin Road, Wuyang New Town, Yuexiu District, Guangzhou 
 Zip Code: 510600 
 Tel.: 020-87383888 

Fax: 020-87372488 
  

	Article 1	WHEREAS: 

  

	1.1	The online game products operated by Party A in China use Taomee charging cards as for payments; 

 

	1.2	Party B is a software sale and service enterprise with rich experiences in the sale of software and network game products as well as good local channel coverage and
marketing capabilities; and 

  

	1.3	Party A and Party B, based on their respective strengths, are willing to cooperate with each other by authorizing Party B to provide Taomee Mibi selling services in the
regions designated herein. 

  

	Article 2	Definitions 

 Unless otherwise
specifically agreed herein, the following terms shall have the following meanings: 
  

	2.1	Taomee Mibi 

 Taomee Mibi are
virtual currencies issued by Party A and purchased and used by users as the payment vouchers for ordering or selecting relevant value-added services from Party A’s website. Each Taomee Mibi is worth RMB1.00 (subject to the announcements made by
Party A). 

  
 1 

	2.2	Taomee Mibi Virtual Cards 

Taomee Mibi Virtual Cards are digital products representing the Taomee Mibi issued by Party A. Such cards (“Virtual Cards”) do
not have any physical carriers but are made up of two character strings, which are card numbers and card passwords. They include but are not limited to two kinds, one with the face value of RMB30.00 and the other RMB10.00. 

Virtual Cards can be used for all the products under the Taomee network platform, including but not limited to Mole’s World and Seer
and other forthcoming products. 
  

	2.3	Month 

 When the word
“month” is used in different places herein as a unit of time, it refers to the period of time from the first day to the last day of a month, except the month in which this Agreement is signed. 

 

	2.4	Agency-sold products and authorization 

 Party A hereby authorizes Party B to act as the sole general agent for the Taomee Mibi Virtual Cards in the Mainland China (except Hong Kong, Macao and Taiwan). During the term of this Agreement,
Party A shall not authorize any third party to sell Taomee Mibi Virtual Cards in the Mainland China (except Hong Kong, Macao and Taiwan). 
  

	Article 3	Representations and warranties 

  

	3.1	It is hereby warranted by both Party A and Party B that they are qualified for engaging in the transactions hereunder and that such transactions fall within their
respective scope of business. 

  

	3.2	It is hereby warranted by both Party A and Party B that they are fully qualified for concluding this Agreement and performing their respective obligations hereunder.

  

	3.3	Each party warrants that its authorized representative has the competent authority to execute this Agreement on its behalf. 

 

	3.4	It is hereby warranted by Party A that its products have the qualifications pursuant to relevant governmental laws and administrative regulations and have obtained all
the legal documents regarding online games pursuant to relevant governmental authorities, including the Ministry of Culture of the People’s Republic of China, the General Administration of Press and Publication of the People’s Republic of
China, the Ministry of Commerce of the People’s Republic of China, etc. 

  

	3.5	Party A hereby agrees that Party B may incorporate the Taomee Mibi Virtual Cards into the “Universal Card – One Card” issued by Party B for sale. The
forms of “TXTONG All-In-One Card” for sale include but are not limited to “TXTONG All-In-One Card” physical card, “TXTONG All-In-One Card” electronic cards and forthcoming forms developed by Party B. However, Party B
warrants that it shall not directly print Virtual Cards in any other form other than the above forms as “TXTONG All-In-One Card” for sale, unless with prior written consent from Party A. 

  
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	Article 4	Supply, pricing and settlement 

  

	4.1	Agency prices refer to the actual prices at which Party A provides online charging cards to Party B. The margin between the distribution price and the supply price is
the service fee income for Party B. The supply price offered by Party A to Party B will be calculated at a certain discount rate. The specific supply prices are specified in Commercial Terms and Conditions as Attachment 1 hereto.

  

	4.2	When Party B purchases Taomee Mibi from Party A during the term of this Agreement, it shall appropriately give Party A a prior notice of 1 business day about the types
and quantities of products which it wishes to purchase. Within 2 business days after receiving the payment from Party B (the receiving time shall be determined according to the time recorded by the bank), Party A shall deliver the products ordered
by Party B to the receiving mail box as agreed in Attachment 1 hereto. If Party A delays such delivery, Party B may reserve the right to further claim losses from Party A. 

 

	4.3	Details about the principles of the agents regarding purchasing and receiving goods are specified in Commercial Terms and Conditions as Attachment 1 hereto.

  

	Article 5	Marketing and technical support 

  

	5.1	Party A has the obligation to provide Party B with timely technical support, information and data relating to product sales so that Party B may carry out sales and
promotional work. 

  

	5.2	Party A shall fully and accurately provide the marketing strategy and promotional plan for its products. In the event of promotion activities where Party A has special
plans, e.g. Taomee Mibi Virtual Cards are sold in package with peripheral products, etc., Party A shall notify Party B in advance of such special needs. Party A shall use effective channels (e.g. Party A’s website, Taomee login interface, etc.
to market the promotional activities of Taomee Mibi to the users. 

  

	5.3	It is determined by Party A and Party B through negotiation that Party A shall actively support Party B in marketing and advertising; that Party A’s market
promotional activities shall essentially be sponsored or assisted by Party B; that Party A shall provide Party B with necessary support in material, economic and other aspects, depending on the difficulty of the activity concerned.

  

	5.4	It is determined by Party A and Party B through negotiation that, during the sales process, Party B may cooperate Party A in promoting and marketing products by
distributing promotional materials, holding exhibitions, organizing topic-specific promotions, etc. Details shall be otherwise agreed by both parties. Party B shall actively market the Taomee Mibi Virtual Cards and duly carry out its sales work.

  
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	5.5	Common Advertisement Support - Party A and Party B shall closely collaborate in promoting and marketing the Taomee Mibi Virtual Cards. 

 

	5.6	For the purpose of managing the Virtual Card market for Taomee Mibi, if any Taomee Mibi Virtual Cards being sold are obtained through theft or malicious screen
flooding, Party B shall reserve the rights to request Party A to block such cards. Within 48 hours after Party B submits relevant evidences, Party A shall cooperate with Party B to carry out relevant operations (e.g. blocking cards, freezing cards,
etc.) regarding to the issue reported by Party B. 

  

	Article 6	After-sale services 

  

	6.1	Party A shall provide users with good after-sale services and Party B may assist Party A in doing so. 

 

	6.2	Party A shall notify Party B of the way and approach by which users of the above-mentioned products may have access to services, thus to ensure that users have access
to relevant training, maintenance, upgrading and other services. If the way and access to service is changed, Party A shall promptly notify Party B of such change. 

 

	6.3	When any of Party A’s product is upgraded, Party A shall give prior written notice to Party B of such, and shall specify the way for upgrading the product and
Party B’s way of settlement, etc. 

  

	6.4	Party B shall promptly feed back users’ opinions identified during the sales process to Party A, and Party A shall appoint a dedicated person to reply to the
feedback submitted by Party B to help Party B carry out its sales work. 

  

	6.5	For the Taomee Mibi Virtual Cards purchased by Party B, Party A shall bear the quality warranty responsibility. If any user uses any Virtual Card for Taomee Mibi for
charging but the charged amount is not transferred to the user’s account, or if no point value is charged, or if the card was used before charging, etc, Party A, in order to protect the users’ interests, shall replace the Mibi with a
product of the same face value, and Party A shall, within 10 business days after Party B submit the problematic product to Party A, replace the problematic product with new product and delivered the product to Party B. After replacement, Party A may
check with Party B to identity and determine which party is responsible for the problematic Mibi. If Party B is found to be responsible (i.e. the password for the Virtual Card was stolen due to improper maintenance of Party B), Party A may claim
recourse of the actual loss from Party B. 

  

	Article 7	Confidentiality 

  

	7.1	Party A shall strictly keep confidential and not disclose to any third party any and all the information of sales, market, inventory, etc. provided by Party B.

  
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	7.2	Party B shall strictly keep confidential and not disclose to any third party any and all the product related information of market, pricing, agent rules, etc. provided
by Party A. 

  

	7.3	Each party shall also keep confidential the other party’s business secrets of operational information, technical information, etc, regardless whether such secrets
were obtained at the time of signing, during performance or after termination of this Agreement. The obligation for confidentiality will not be terminated upon the termination of this Agreement. 

 

	7.4	Unless required by any lawsuit or arbitration regarding this Agreement, neither party shall disclose any content hereof to any third party without prior written consent
from the other party. 

  

	Article 8	Party A’s warranties for products and services 

  

	8.1	Party A is responsible for maintenance of the service websites and client programs for Taomee Mibi to ensure that users enjoy the services promised by Party A.

  

	8.2	Party A warrants that all the Taomee Mibi sold by Party B are safe and valid and can be effectively registered within the terms of this Agreement and also within at
least six months after this Agreement terminates. If the registration period implemented by Party A is longer, the longer period shall be adopted. 

  

	8.3	Party A is responsible for setting the service contents of Taomee Mibi cards. Party B shall promptly report to Party A the introductions of any newly added services and
improvements on existing services, respect and pay attention to opinions and suggestions regarding the service offered by Party A and promptly provide answers accordingly. 

 

	8.4	Party A is responsible for providing Taomee Mibi users with services, including answering user questions, handling user complaints and feedback, etc.

  

	8.5	All the intellectual property rights owned by Party A are retained to itself. This Agreement does not grant Party B any right upon Party A’s intellectual property
rights. 

  

	8.6	During the performance of this Agreement, Party B shall respect the intellectual property rights, including patent rights, trademark rights, copyrights, etc. of Party
A. Party B shall use the intellectual properties owned by Party A solely for the purpose of performing this Agreement. If Party B intends to use any of the intellectual properties owned by Party A for any purpose beyond the scope of performing this
Agreement, Party B shall give Party A 15 days’ written notice and obtain written consent from Party A before using such intellectual property right. 

  
 5 

	Article 9	Term, effectiveness and renewal of this Agreement 

  

	9.1	 Commercial Terms and Conditions as Attachment 1 and Rebate Calculation Method as Attachment 21 hereof are integral parts of this Agreement. Such attachments have the same legal force as this Agreement and shall be
performed on and from the date of effectiveness hereof. This Agreement shall be effective upon the execution and sealing by both parties. The expiration date of this Agreement is December 31, 2011. 

 

	9.2	When this Agreement expires, both parties may sign a written agreement to extend the term. 

 

	Article 10	Liabilities for breach of contract 

  

	10.1	Both parties shall strictly abide by the provisions herein. If any party suffers any adverse social impact or economic loss due to any material default by the other
party, the former is entitled to hold the latter liable by requesting the latter to eliminate the impact and compensate the former for the corresponding economic loss, and is entitled to terminate this Agreement, unless otherwise provided for
herein. 

  

	10.2	If any party or parties cannot perform or fully perform its obligations hereunder due to any inevitable or irresistible force majeure event (earthquake, flood, fire
disaster, policy change, etc.), the affected party shall immediately use the most express way available to notify the other party of such event and within 10 days after the occurrence of the force majeure event shall provide the other party with a
document of valid evidence regarding the occurrence of the force majeure event. The party affected by the force majeure event shall take active and effective measures to minimize the losses sustained by the other party as a result of impossible or
delayed performance of this Agreement. After the impact of the force majeure event is eliminated, both parties shall continue to performance this Agreement, unless otherwise provided for herein. 

 

	Article 11	Settlement of disputes 

  

	11.1	Any dispute arising out of performing this Agreement may be solved by both parties through friendly negotiation. In case negotiation fails, either party may submit it
to the people’s court that has jurisdiction over this Agreement. 

  

	11.2	Considering the special characteristics of Taomee Mibi users, during the period when there is any dispute or lawsuit between both parties, both parties shall continue
to perform relevant contents hereof, unless the disputed issue or lawsuit is caused by any force majeure event as described in Article 10.2 herein. 

  

	Article 12	Miscellaneous 

 For any
issue not covered herein, both parties may sign a supplement agreement which shall have the same legal force as this Agreement. 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

 

	1	 There is no such Attachment 2. 

  
 6 

	
	Party A
	[seal: Shanghai Taomee Network Technology Co., Ltd.]
	Legal or authorized representative: /s/ Cheng Yunpeng

  

	
	Party B
	[seal: Guangzhou New Fanlian Digital Technology Co., Ltd. ]
	Legal or authorized representative

  
 7 

 Attachment 1: Commercial Terms and Conditions 

 

	I.	Ordering and dispatching of goods 

  

	1.	Party B shall submit its ordering requirements to Party A’s channel manager. The channel manager shall confirm whether the inventory is sufficient before Party B
completely fills out, signs and affixes its company seal to the Virtual Card order sheet and make payment through Alipay or bank remittance. At the same time, Party B shall also fill out a request for ordering in the card system.

  

	2.	If Party B intends to use any personal bank account or any bank account not owned by Party B to make such payment, Party B shall sign a collection agreement beforehand.

  

	3.	Party B shall complete the request for ordering in the card system by 15:30 of every business day and then fax the order and payment receipt to the sales support of
Party A at 021-33674012. 

  

	4.	Any order completed by Party B into the card system after 15:30 and faxed to Party A will be regarded as an order for the next day. For any order of which payment is
received by 16:00 on the same business day, Party A will arrange delivery within 2 business days. 

  

	5.	It shall be noted in ordering that any Virtual Card order amount must be an integral multiple of “100”. 

 

	II.	Initial payment 

  

	1.	If Party B is a new agent of Taomee cards, the total amount (calculated on the basis of the discounted price offered by Party A to Party B) of the first Taomee cards
distributed by Party B shall be RMB ZERO (in characters) or RMB0.00 (in figures) (hereinafter referred to as the “Initial Payment”). 

 

	2.	Party B acknowledges to deliver the Initial Payment within one week after concluding this Agreement for purchasing Virtual Cards. Party A shall deliver the ordered
cards against receipt of the payment in full. If Party B fails to deliver the Initial Payment in due time, Party A has the right to unilaterally rescind this Agreement. 

 

	3.	Unless otherwise agreed by both parties, Party A shall deliver the Virtual Cards to the following email box designated by Party B:
            . 

  

	III.	Prices 

  

	1.	Party A sells cards to Party B at 81% of the face values of Virtual Cards. In addition, the prices at which Party B sells Virtual Cards to subagents and end users shall
not be higher than the face values. 

  

	2.	No regional limitation is imposed upon Virtual Cards, i.e. Virtual Cards are not restricted within any region and can be used nationwide. 

  
 8 

	3.	The period of validity for Virtual Cards does not exceed two years. 

 The term of this Attachment is consistent with that of the main contract. 
 This Attachment shall
be effective on the date when executed and sealed by both parties. 
  

	
	Party A
	[seal: Shanghai Taomee Network Technology Co., Ltd.]
	Representative: /s/ Cheng Yunpeng

  

	
	Party B
	[seal: Guangzhou New Fanlian Digital Technology Co., Ltd. ]
	Representative

  
 9

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