Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Capital Alliance Group Inc. - Exhibit 4.12

 

 

CAPITAL ALLIANCE GROUP INC. 

STOCK OPTION PLAN

 

 

 

Accepted for filing by the TSX Venture Exchange 
On October
1, 2002 and August 31, 2004

Table of Contents

	 	ARTICLE I — DEFINITIONS AND INTERPRETATION 
      	 
	  	  	  
	1.1 	Definitions 	1 
	1.2 	Choice of Law 	2 
	1.3 	Headings 	2 
	  	  	  
	 	ARTICLE II — PURPOSE AND PARTICIPATION   	 
	  	  	  
	2.1 	Purpose 	2 
	2.2 	Participation 	2 
	2.3 	Notification of Award 	3 
	2.4 	Copy of Plan 	3 
	2.5 	Limitation 	3 
	  	  	  
		 ARTICLE III — TERMS AND CONDITIONS OF OPTIONS 
      	 
	  	  	  
	3.1 	Board to Allot Shares 	3 
	3.2 	Number of Shares 	3 
	3.3 	Term of Option 	4 
	3.4 	Termination of Option 	4 
	3.5 	Exercise Price 	5 
	3.6 	Assignment of Options 	5 
	3.7 	Adjustments 	5 
	3.8 	Vesting 	5 
	  	  	  
	 	ARTICLE IV — EXERCISE OF OPTION   	 
	  	  	  
	4.1 	Exercise of Option 	6 
	4.2 	Exercise Restrictions 	6 
	4.3 	Issue of Share Certificates 	6 
	4.4 	Condition of Issue 	6 
	  	  	  
	 	ARTICLE V — ADMINISTRATION 
      	 
	  	  	  
	5.1 	Administration 	7 
	5.2 	Interpretation 	7 
	  	  	  
	 	ARTICLE VI — AMENDMENT AND TERMINATION 
      	 
	  	  	  
	6.1 	Prospective Amendment 	7 
	6.2 	Retrospective Amendment 	7 
	6.3 	Termination 	7 
	6.4 	Agreement 	8 
	  	  	  
		ARTICLE VII — APPROVALS REQUIRED FOR PLAN 
      	 
	  	  	  
	7.1 	Approvals Required for Plan 	8 
	7.2 	Substantive Amendments to Plan 	8 

ARTICLE I 
DEFINITIONS AND INTERPRETATION

1.1        DEFINITIONS

As used herein, unless anything in the subject matter or
context is inconsistent therewith, the following terms shall have the meanings
set forth below:

	(a) 	
      “Administrator” means, initially, the corporate secretary
      of the Company and thereafter shall mean such director or other senior
      officer or employee of the Company as may be designated as Administrator
      by the Board from time to time;

	 	 
	(b) 	
      “Award Date” means the date on which the Board grants and
      announces a particular Option;

	 	 
	(c) 	
      “Board” means the board of directors of the
    Company;

	 	 
	(d) 	
      “Company” means Capital Alliance Group Inc. or any
      “affiliate” thereof (as defined in the Securities Act;

	 	 
	(e) 	
      “Director” means directors and senior officers of the
      Company and employees of a Management Company;

	 	 
	(f) 	
      “Earlier Termination Date” means the date determined in
      accordance with section 3.4 after which a particular Option cannot be
      exercised;

	 	 
	(g) 	
      “Employee” means (i) an individual considered an employee
      under the Income Tax Act (i.e. for whom income tax and other deductions
      are made by the Company); (ii) an individual who works full-time for the
      Company providing services normally provided by an employee of the Company
      but for whom income tax and other deductions are not made by the Company;
      (iii) an individual who works for the Company on a continuing and regular
      basis for a minimum amount of time per week, but for whom income tax and
      other deductions are not made by the Company; and (iv) other persons who
      are providing, have provided, or have agreed to provide a service of value
      to the Company;

	 	 
	(h) 	
      “Exchange” means the TSX Venture Exchange or successor
      stock exchange;

	 	 
	(i) 	
      “Exercise Notice” means the notice respecting the
      exercise of an Option, in the form set out as Schedule “B” hereto, duly
      executed by the Option Holder;

	 	 
	(j) 	
      “Exercise Period” means the period during which a
      particular Option may be exercised and is the period from and including
      the Award Date through to and including the Expiry Date;

	 	 
	(k) 	
      “Exercise Price” means the price at which an Option may
      be exercised as determined in accordance with section 3.5;

	 	 
	(l) 	
      “Expiry Date” means the date determined in accordance
      with section 3.3 after which a particular Option cannot be
    exercised;

— 2 —

	(m) 	
      “Management Company” means a party providing management
      services to the Company;

	 	 
	(n) 	
      “Option” means an option to acquire Shares, awarded to a
      Director or Employee pursuant to the Plan;

	 	 
	(o) 	
      “Option Certificate” means the certificate, substantially
      in the form set out as Schedule “A” hereto, evidencing an
Option;

	 	 
	(p) 	
      “Option Holder” means a Director or Employee or former
      Director or Employee who holds an unexercised and unexpired Option or,
      where applicable, the Personal Representative of such person;

	 	 
	(q) 	
      “Personal Representative” means (i) in the case of a
      deceased Option Holder, the executor or administrator of the deceased duly
      appointed by a court or public authority having jurisdiction to do so; and
      (ii) in the case of an Option Holder who for any reason is unable to
      manage his or her affairs, the person entitled by law to act on behalf of
      such Option Holder;

	 	 
	(r) 	
      “Plan” means this stock option plan;

	 	 
	(s) 	
      “Securities Act” means the Securities Act (British
      Columbia); and

	 	 
	(t) 	
      “Share” or “Shares” means, as the case may be, one or
      more common shares without par value in the capital of the
  Company.

1.2        CHOICE OF LAW

The Plan is established under, and the provisions of the Plan
shall be interpreted and construed solely in accordance with, the laws of the
Province of British Columbia and the laws of Canada applicable therein.

1.3        HEADINGS

The headings used herein are for convenience only and are not
to affect the interpretation of the Plan.

ARTICLE II
PURPOSE AND PARTICIPATION

2.1        PURPOSE

The purpose of the Plan is to provide the Company with a
share-related mechanism to attract, retain and motivate Directors and Employees,
to reward such of those Directors and Employees as may be awarded Options under
the Plan by the Board from time to time for their contributions toward the long
term goals of the Company and to enable and encourage such persons to acquire
Shares as long term investments.

2.2        PARTICIPATION

The Board shall, from time to time, in its sole discretion
determine those Directors and/or Employees, if any, to whom Options are to be
awarded. If the Board elects to award an Option to a Director, the Board shall,
in its sole discretion but subject to section 3.2, determine the number of
Shares to be acquired on the exercise of such Option. If the Board elects to
award an Option to an Employee, the number of Shares to be acquired on the
exercise of such Option shall determined by the Board in its sole discretion,
and in so doing the Board may take into account the following criteria:

— 3 —

	(a) 	
      the Employee’s remuneration as at the Award Date in
      relation to the total remuneration payable by the Company to all of its
      Employees as at the Award Date;

	 	 
	(b) 	
      the length of time that the Employee has provided
      services to the Company; and

	 	 
	(c) 	
      the nature and quality of work performed by the
      Employee.

In the case of Options awarded to Employees, consultants or
Management Company employees, the Company will be deemed to have represented
that the recipient is a bona fide Employee, consultant or Management Company
employee as the case may be.

2.3        NOTIFICATION OF
AWARD

Following the approval by the Board of the awarding of an
Option, the Company shall notify the Option Holder in writing of the award and
shall enclose with such notice the Option Certificate representing the Option so
awarded.

2.4        COPY OF PLAN

Each Option Holder, concurrently with the notice of the award
of the Option, shall be provided with a copy of the Plan. A copy of any
amendment to the Plan shall be promptly provided by the Company to each Option
Holder.

2.5        LIMITATION

The Plan does not give any Option Holder who is a Director the
right to serve or continue to serve as a Director nor does it give any Option
Holder who is an Employee, the right to be or to continue to be employed or
engaged by the Company.

ARTICLE III
TERMS AND CONDITIONS OF OPTIONS

3.1        BOARD TO ALLOT
SHARES

The Shares to be issued to Option Holders upon the exercise of
Options shall be allotted and authorized for issuance by the Board prior to the
exercise thereof.

3.2        NUMBER OF
SHARES

The maximum number of Shares reserved for issuance under the
Plan at any one time shall not exceed 6,371,828 Shares. Except with the
consent/acceptance of the Exchange, the total number of Options awarded in a 12
month period to any one consultant or to any one person employed by the Company
to perform investor relations activities for the Company shall not exceed 2% of
the issued and outstanding Shares at the time of award. 

The total number of Options awarded to any one individual in
any 12 month period shall not exceed 5% of the issued and outstanding Shares as
at the Award Date (unless the Company becomes a Tier 1 issuer and has obtained
disinterested shareholder approval).

— 4 —

If any Option expires or otherwise terminates for any reason
without having been exercised in full, the number of Shares in respect of which
Option expired or terminated shall again be available for the purposes of the
Plan.

3.3        TERM OF
OPTION

Subject to section 3.4, the Expiry Date of an Option shall be
the date so fixed by the Board at the time the particular Option is awarded,
provided that such date shall not be later than:

	(a) 	
      for so long as the Company is classified as a Tier 2
      issuer or equivalent designation of the Exchange, the fifth anniversary of
      the Award Date of the Option; or

	 	 
	(b) 	
      if the classification of the Company on the Exchange is
      upgraded from that of a Tier 2 issuer, or the Shares are no longer listed
      on the Exchange, the tenth anniversary of the Award Date of the
    Option.

3.4        TERMINATION OF
OPTION

An Option Holder may exercise an Option in whole or in part at
any time or from time to time during the Exercise Period provided that, with
respect to the exercise of part of an Option, the Board may at any time and from
time to time fix a minimum or maximum number of Shares in respect of which an
Option Holder may exercise part of any Option held by such Option Holder. Any
Option or part thereof not exercised within the Exercise Period shall terminate
and become null, void and of no effect as of 5:00 p.m. (Vancouver time) on the
first to occur of the Expiry Date or the Earlier Termination Date. The Earlier
Termination Date shall be the date established, if applicable, in subsections
(a) or (b) below.

	(a) 	
      Death

	 	 	 
		
      In the event that the Option Holder should die while he
      or she is still a Director or Employee, the Expiry Date shall be 12 months
      from the date of death of the Option Holder.

	 	 	 
	(b) 	
      Ceasing to be a Director or
  Employee

	 	 	 
		
      In the event that the Option Holder ceases to be a
      Director or Employee other than by reason of death, the Expiry Date of the
      Option shall be the 30th day following the date the Option Holder ceases
      to be a Director or Employee of the Company unless any of the following
      apply:

	 	 	 
		(i) 	
      the Option Holder ceases to meet the qualifications for
      directors prescribed by the Business Corporations Act (British
      Columbia) and the Option Holder is not a Director (in another capacity
      within the definition in section 1.1(e) above) or an Employee of the
      Company;

	 	 	 
		(ii) 	
      the Option Holder ceases to be a director of the Company
      by reason of a special resolution to that effect having been passed by the
      members of the Company pursuant to the Business Corporations Act
      (British Columbia) and the Option Holder is not a Director (in another
      capacity within the definition in section 1.1(e) above) or an Employee of
      the Company;

	 	 	 
		(iii) 	
      the Option Holder’s relationship with the Company or the
      Management Company is terminated for cause;

— 5 —

	 	(iv) 	
      an order of the British Columbia Securities Commission or
      other regulatory authority having jurisdiction is made prohibiting the
      Option Holder from holding an Option; or

	 	 	 
	 	(v) 	
      written notification specifying earlier termination,
      signed by the Company’s chairman (if there is one) and one of either the
      Company’s chief executive officer or president, is given to the
      Administrator,

in which case the Earlier Termination Date shall be the date on
which any of the above occurs. 

3.5        EXERCISE
PRICE

The Exercise Price shall be that price per Share, as determined
by the Board in its sole discretion, and announced as of the Award Date, at
which an Option Holder may purchase a Share upon the exercise of an Option, and
shall not be less than the closing price of the Company’s Shares traded through
the facilities of the Exchange (or, if the shares are no longer listed for
trading on the Exchange, then such other exchange or quotation system on which
the shares are listed or quoted for trading) on the day preceding the Award
Date, less any discount permitted by the Exchange, or such other price as may be
required by the Exchange. Disinterested shareholder approval will be obtained
for any reduction in the exercise price of an Option if the Option Holder is an
insider of the Company at the time of the proposed amendment.

3.6        ASSIGNMENT OF
OPTIONS

Options may not be assigned or transferred, provided however
that the Personal Representative of an Option Holder may, to the extent
permitted by section 4.1, exercise the Option within the Exercise Period.

3.7        ADJUSTMENTS

If prior to the complete exercise of any Option the Shares are
consolidated, subdivided, converted, exchanged or reclassified or in any way
substituted for (collectively the “Event”), an Option, to the extent that it has
not been exercised, shall be adjusted by the Board in accordance with such Event
in the manner the Board deems appropriate. No fractional Shares shall be issued
upon the exercise of the Options and accordingly, if as a result of the Event an
Option Holder would become entitled to a fractional share, such Option Holder
shall have the right to purchase only the next lowest whole number of shares and
no payment or other adjustment will be made with respect to the fractional
interest so disregarded. Additionally, no lots of Shares in an amount less than
500 Shares shall be issued upon the exercise of the Options unless such amount
of Shares represents the balance left to be exercised under the Options.

3.8        VESTING

The following provisions regarding vesting shall apply to the
Options:

	(a) 	
      For so long as the Company is not classified as a Tier 1
      issuer or equivalent designation on the Exchange, all Options awarded
      pursuant to the Plan, except in exceptional circumstances as determined by
      the Board, must contain conditions relating to the vesting of the right to
      exercise an Option awarded to any Option Holder, which will provide that
      the right to purchase the Shares under the Option may not be exercised any
      earlier than the following times (although the Board may impose longer
      vesting periods):

	 	Percentage of Optioned Shares 	Date After Which Shares May Be Purchased
    
	 	 	 
	 	30% 	Six months following Award Date
    

— 6 —

	 	40% 	Twelve months following Award
      Date 
	 	 	 
	 	30% 	Eighteen months following Award
      Date 

		
      In the event that the classification of the Company on
      the Exchange is upgraded to that of a Tier 1 issuer or equivalent
      designation, or the Company’s common shares are no longer listed on the
      Exchange, the Board may, in its sole discretion at the time the Option is
      awarded, but will not be required to, impose conditions relating to the
      vesting of the right to exercise an Option awarded to any Option
      Holder.

	 	 
	(b) 	
      Notwithstanding the provisions of subsections 3.8(a) and
      subject to Exchange acceptance, the Board may grant Options bearing
      vesting provisions more favourable than those specified in subsections
      3.8(a).

	 	 
	(c) 	
      The Option Certificate representing any such Option will
      disclose the applicable vesting conditions.

	 	 
	(d) 	
      The vesting schedule in subsection 3.8(a) shall be
      automatically and immediately accelerated such that, subject to receipt of
      Exchange acceptance, all remaining Options will then be available for
      exercise upon the occurrence of a take over bid which is a
      formal bid, as those terms are defined under the Securities Act
      (British Columbia).

ARTICLE IV 
EXERCISE OF OPTION

4.1        EXERCISE OF
OPTION

An Option may be exercised only by the Option Holder or the
Personal Representative of any Option Holder. An Option Holder or the Personal
Representative of any Option Holder may exercise an Option in whole or in part,
subject to any applicable exercise restrictions, at any time or from time to
time during the Exercise Period up to 5:00 p.m. (Vancouver time) on the Expiry
Date by delivering to the Administrator an Exercise Notice, the applicable
Option Certificate and a certified cheque or bank draft payable to the Company
in an amount equal to the aggregate Exercise Price of the Shares to be purchased
pursuant to the exercise of the Option.

4.2        EXERCISE
RESTRICTIONS

The Board may, at the time an Option is awarded or upon
renegotiation of the same, attach restrictions relating to the exercise of the
Option in addition to the vesting provisions specified in section 3.8. Any such
restrictions shall be recorded on the applicable Option Certificate.

4.3        ISSUE OF SHARE
CERTIFICATES

As soon as practicable following the receipt of the Exercise
Notice, the Administrator shall cause to be delivered to the Option Holder a
certificate for the Shares so purchased. If the number of Shares so purchased is
less than the number of Shares subject to the Option Certificate surrendered,
the Administrator shall forward a new Option Certificate to the Option Holder
concurrently with delivery of the aforesaid share certificate for the balance of
the Shares available under the Option.

4.4        CONDITION OF
ISSUE

The issue of Shares by the Company pursuant to the exercise of
an Option is subject to this Plan and 

— 7 —

compliance with the laws, rules and regulations of all
regulatory bodies applicable to the issuance and distribution of such Shares and
to the listing requirements of any stock exchange or exchanges on which the
Shares may be listed. The Option Holder agrees to comply with all such laws,
rules and regulations and agrees to furnish to the Company any information,
report and/or undertakings required to comply with and to fully cooperate with
the Company in complying with such laws, rules and regulations.

ARTICLE V 
ADMINISTRATION

5.1       
ADMINISTRATION

The Plan shall be administered by the Administrator on the
instructions of the Board or such committee of the Board to which the Board may
authorize to act for the Board in respect of matters relating to the Plan. The
Board or such committee may make, amend and repeal at any time and from time to
time such regulations not inconsistent with the Plan as it may deem necessary or
advisable for the proper administration and operation of the Plan and such
regulations shall form part of the Plan. The Board may delegate to the
Administrator or any Director, Employee or officer of the Company such
administrative duties and powers as it may see fit.

5.2       
INTERPRETATION

The interpretation by the Board or its authorized committee of
any of the provisions of the Plan and any determination by it pursuant thereto
shall be final and conclusive and shall not be subject to any dispute by any
Option Holder. No member of the Board or any person acting pursuant to authority
delegated by the Board hereunder shall be liable for any action or determination
in connection with the Plan made or taken in good faith and each member of the
Board and each such person shall be entitled to indemnification with respect to
any such action or determination in the manner provided for by the Company.

ARTICLE VI 
AMENDMENT AND TERMINATION

6.1        PROSPECTIVE
AMENDMENT

Subject to applicable regulatory approval, the Board may from
time to time amend the Plan and the terms and condition of any Option thereafter
to be awarded and, without limiting the generality of the foregoing, may make
such amendment for the purpose of meeting any changes in any relevant law, rule
or regulation applicable to the Plan, any Option or the Shares, or for any other
purpose which may be permitted by all relevant laws, rules and regulations,
provided always that any such amendment shall not alter the terms or conditions
of any Option or impair any right of any Option Holder pursuant to any Option
awarded prior to such amendment.

6.2        RETROSPECTIVE
AMENDMENT

Subject to applicable regulatory approval, the Board may from
time to time retrospectively amend the Plan and may also, with the consent of
the affected Option Holders, retrospectively amend the terms and conditions of
any Options which have been previously awarded.

6.3        TERMINATION

The Board may terminate the Plan at any time provided that such
termination shall not alter the terms or 

— 8 —

conditions of any Option or impair any right of any Option
Holder pursuant to any Option awarded prior to the date of such termination and
notwithstanding such termination the Company, such Options and such Option
Holders shall continue to be governed by the provisions of the Plan.

6.4        AGREEMENT

The Company and every person to whom an Option is awarded
hereunder shall be bound by and subject to the terms and conditions of the
Plan.

ARTICLE VII 
APPROVALS REQUIRED FOR PLAN

7.1        APPROVALS
REQUIRED FOR PLAN

Prior to its implementation by the Company, the Plan is subject
to the receipt of approvals by the shareholders of the Company at general
meeting and the Exchange. 

7.2        SUBSTANTIVE
AMENDMENTS TO PLAN

Any substantive amendments to the Plan shall be subject to the
Company first obtaining the necessary approvals of:

	(a) 	
      the shareholders of the Company at general meeting,
      including the approval of disinterested shareholders where required by the
      rules and policies of any stock exchange on which the Shares may be listed
      for trading; and

	 	 
	(b) 	
      any stock exchange on which the Shares may be listed for
      trading.

Schedule A

CAPITAL ALLIANCE GROUP INC.

STOCK OPTION PLAN 
OPTION CERTIFICATE

This certificate is issued pursuant to the provisions of the
Capital Alliance Group Inc. (the “Company”) Stock Option Plan (the “Plan”) and
evidences that
____________________________________________________________________________
<Name.of.Optionee> is the holder of an option (the “Option”) to purchase
up to _______________ <Number.of.Shares> Shares at a purchase price of
$_____________ per Share. Subject to the provisions of the Plan:

	(a) 	
      the Award Date of this Option is ________________________
      <date of grant>;

	 	
       

	(b) 	
      the Expiry Date of this Option is
      _______________________<date of expiry>; and

	 	
       

	(c) 	
      the date of distribution of the Option is
      ____________________<date of Exchange
acceptance>.

Applicable Vesting or Other Restrictions

	Percentage of Optioned Shares 	Date After Which Shares May Be Purchased
    
	 	 
	30% 	Six months following Award Date
    
	40% 	Twelve months following Award Date 
	30% 	Eighteen months following Award
      Date 

This Option may be exercised in accordance with its terms at
any time and from time to time from and including the Award Date through to and
including up to 5:00 p.m. (Vancouver time) on the Expiry Date, by delivering to
the Administrator of the Plan an Exercise Notice, in the form provided in the
Plan, together with this certificate and a certified cheque or bank draft
payable to the Company in an amount equal to the aggregate of the Exercise Price
of the Shares in respect of which this Option is being exercised.

This certificate and the Option evidenced hereby is not
assignable, transferable or negotiable and is subject to the detailed terms and
conditions contained in the Plan. This certificate is issued for convenience
only and in the case of any dispute with regard to any matter in respect hereof,
the provisions of the Plan and the records of the Company shall prevail.

CAPITAL ALLIANCE GROUP INC. 
by its authorized
signatory:

_________________________________________

NAME: ___________________________________

TITLE:____________________________________

Schedule B

EXERCISE NOTICE

	To: 	The Administrator, Stock Option
      Plan 
	  	CAPITAL ALLIANCE GROUP INC.
  

The undersigned hereby irrevocably gives notice, pursuant to
the Capital Alliance Group Inc. (the “Company”) Stock Option Plan (the “Plan”),
of the exercise of the Option to acquire and hereby subscribes for (cross out
inapplicable item):

	(a) 	
      all of the Shares; or

	 	 
	(b) 	
      __________________ of the Shares, which are the subject
      of the Option Certificate attached hereto.

Calculation of total Exercise Price:

	 	(i) 	number of Shares to be acquired
      on exercise: 	_____________ Shares 
	 	 	 	 
	 	(ii) 	times the Exercise Price per
      Share: 	$____________ 
	 	 	 	 
	 	 	TOTAL EXERCISE
      PRICE, enclosed herewith:	$____________ 

The undersigned tenders herewith a certified cheque or bank
draft (circle one) in the amount of $_______________ payable to the Company in
an amount equal to the total Exercise Price of the aforesaid Shares, as
calculated above, and directs the Company to issue the share certificate
evidencing said Shares in the name of the undersigned to be mailed to the
undersigned at the following address:

_____________________________________________

_____________________________________________

_____________________________________________

DATED the ______day of _____________________, 200___.

	 	 	 
	Signature of Witness 	 	Signature of Option Holder 
	 	 	 
	 	 	 
	Name of Witness (please print) 	 	Name of Option Holder (please print)Filed by Automated Filing Services Inc. (604) 609-0244 - Capital Alliance Group Inc. - Exhibit 4.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CORPORATE ADVISORY AGREEMENT 

THIS AGREEMENT dated for reference the 15th
day of November, 2006.. 

	BETWEEN: 	
      Sun Media Investment Holdings Ltd, a company
      incorporated under the laws of the British Virgin Islands and having its
      registered office at PO Box 957, Offshore Incorporation Centre, Road Town,
      Tortola, British Virgin Islands ("SMIH") 

	  	
      

	  	
      OF THE FIRST PART 

	  	
      

	AND: 	
      Capital Alliance Group Inc., a company
      incorporated under the laws of British Columbia, having an office address
      of 1200-777 West Broadway, Vancouver, BC, V5Z 4J7, Canada (hereinafter
      referred to as “CAG”) 

	  	  
	  	OF THE SECOND PART 

WHEREAS: 

	A. 	
      SMIH is an investment holding company with investment
      interest in China’s media and internet sectors.

	 	 
	B. 	
      Sun New Media Inc, a subsidiary of SMIH quoted on the
      OTCBB symbol: SNMD.

	 	 
	C. 	
      CAG is in the business of providing merchant banking and
      corporate advisory services to emerging companies and has agreed to
      provide such services to SMIH on the terms and conditions set forth
      herein.

NOW THEREFORE THIS AGREEMENT WITNESSETH that in
consideration of the premises and of the mutual covenants and agreements herein
set forth, the parties covenant and agree as follows: 

1.        Interpretation

This Agreement and all matters arising hereunder will be
governed by, construed and enforced in accordance with the laws of the Courts of
the Province of British Columbia or the respective jurisdiction each of the
company resides, and all disputes arising under this Agreement will be referred
to the Courts of the Province of British Columbia. 

2.        Engagement

SMIH hereby engages CAG to provide corporate advisory services
to SMIH including, but not limited, to the following: 

	 	(a) 	
      Subject to applicable securities legislation, contacting
      persons who are authorized to trade in equity securities pursuant to the
      applicable securities legislation of the jurisdiction where such persons
      reside and informing them of the particulars of the development of the
      SMIH’s projects and business;

	 	 	 
	 	(b) 	
      Assisting SMIH in coordinating any advertising and other
      public relations programs being implemented by SMIH;

	 	 	 
	 	(c) 	
      Acting in a liaison capacity between SMIH management and
      senior officers, the persons referred to in Section 2(a) and the
      shareholders of SMIH;

2

	 	(d) 	
      Circulating to the persons referred to in Section 2(a)
      such of the quarterly reports and other material financial or information
      documentation as may be reasonably requested by such persons;
and

	 	 	 
	 	(e) 	
      And such other services as may be agreed upon by SMIH’s
      senior management and CAG, including assistance in arranging desired
      equity financing from time to time.

	 	 	 
	 	(f) 	
      CAG will introduce certain investor relation consultants
      to SMIH from time to time and it is the sole discretion of SMIH to decide
      whether or not SMIH will engage with those
consultants.

3.        Term

	 	(a) 	
      Subject to prior termination in accordance with Section
      10, this Agreement will be effective November 15th, 2006 and
      will remain in full force and effect for a twelve month period up to and
      including the close of business on November 14th, 2007;
    and

	 	 	 
	 	(b) 	
      If SMIH wishes to engage CAG after the term of this
      Agreement has expired, all work performed will be completed on a month to
      month basis at a fee to be determined by both
parties.

4.       
Remuneration 

In consideration of CAG having rendered the Services, SMIH
will: 

	 	(a) 	
      Pay to CAG 500,000 common shares (“Shares”) of Sun New
      Media Inc (OTCBB symbol: SNMD) (“SNMD”) in lieu of cash upon execution of
      this agreement.

	 	 	 
	 	(b) 	
      Provide a total of 500,000 Option Shares of Sun New Media
      Inc to two of CAG’s appointed executives, namely Toby Chu and James Neil
      (collectively “Optionee”). Each Optionee is entitled to 250,000 option
      shares with an exercise price of US$0.68 per share exercisable in part or
      in whole at any time for a period of three years commencing November
      15th 2006 expiring November 14th
  2009.

5.        Expenses

	 	(a) 	
      Provided that CAG will have obtained the prior consent of
      SMIH to incur expenses and disbursements in connection with the
      performance of CAG’s duties hereunder, SMIH will reimburse the CAG for all
      pre-approved expenses and disbursements, including all reasonable travel
      expenses, incurred by CAG in connection with the performance of the CAG’s
      duties hereunder within seven (7) days after receipt of invoices or such
      other documentation as SMIH’s Board of Directors may reasonably require.
      SMIH shall not be obligated to reimburse CAG for any expenses claimed by
      them which are not evidenced by receipt or other documentary evidence
      satisfactory to SMIH; and

	 	 	 
	 	(b) 	
      Notwithstanding any other provision of this Agreement,
      CAG shall not make any single expenditure, or any series of expenditures
      in connection with any single matter or any number of connected matters,
      exceeding US$500 without the prior consent of
SMIH.

3

6.       
Representation and Warranties of SMIH 

SMIH hereby represents and warrants to CAG that: 

	 	(a) 	
      SMIH is a duly incorporated company pursuant to the laws
      of BVI and is in good standing in the office of the registrar of Companies
      with respect to the filing of annual returns;

	 	 	 
	 	(b) 	
      To the best of SMIH’s knowledge, information and belief,
      SEG has complied with the continuous disclosure requirements as set out in
      the US Securities Act, as amended (the “Act”); and

	 	 	 
	 	(c) 	
      The execution and delivery of this Agreement has been
      duly authorized by all required corporate action on behalf of
  SMIH.

7.       
Representations and Warranties - CAG 

CAG hereby represents and warrants to SMIH that: 

	 	(a) 	
      CAG is duly incorporated pursuant to the provisions of
      the British Columbia Company Act;

	 	 	 
	 	(b) 	
      The execution and delivery of this Agreement has been
      duly authorized by all required corporate action on behalf of
  CAG;

	 	 	 
	 	(c) 	
      CAG and it’s associates, partners, directors, officers,
      employees, representatives and agents (collectively the “Management and
      Employees”) providing the Services pursuant to this Agreement are familiar
      with and responsible for compliance with all applicable securities
      legislation in relation to the providing the Services, including but not
      limited to the United States securities laws and in particular Regulation
      FD of the Act.

8.       
Covenants of SMIH 

SMIH hereby covenant and agree with CAG that: 

	 	(a) 	
      During the term of this Agreement, SMIH will promptly
      advise CAG of:

	 	 	 	 
	 		(i) 	
      Any material change in the business or affairs of SMIH
      and Sun New Media Inc;

	 	 	 	 
	 		(ii) 	
      Any cease trade order or trading halt made or imposed
      upon SNMD, any of the directors, senior officers or insiders of SNMD by
      any commission, exchange, governmental or self-regulatory body having
      jurisdiction over SNMD and its affairs; and

	 	 	 	 
	 	(b) 	
      SMIH will deliver to CAG copies of SNMD’s annual
      financial statements, quarterly reports, news releases, material change
      reports and other documentation required to be filed by SNMD with
      regulatory bodies including the North American Securities Dealers or the
      United States Securities and Exchange Commission or any other such
      regulatory body having jurisdiction over SNMD’s affairs within ten (10)
      business days of the date of such filing.

	 	 	 	 
	 	(c) 	
      In case of default by SMIH, Sun New Media Inc will
      guarantee all the terms and conditions of this agreement with full
      effect.

4

9.       
Covenants of CAG 

CAG covenants and agrees with SMIH that: 

	 	(a) 	
      In performing their duties hereunder, they will comply
      with all applicable securities legislation and regulations;

	 	 	 
	 	(b) 	
      No use may be made of confidential information relating
      to the SMIH’s business and affairs until SMIH has complied with the
      continuous disclosure requirements applicable to them;

	 	 	 
	 	(c) 	
      CAG will not disclose the private affairs of SMIH or its
      subsidiaries or any secrets of SMIH to any persons other than the board of
      directors of SMIH or as may be required by the laws of United States or
      any states therein;

	 	 	 
	 	(d) 	
      CAG will act in the best interests of SMIH & its
      affiliated companies and will not make any misrepresentations whatsoever
      with respect to the companies business and affairs;

	 	 	 
	 	(e) 	
      CAG and its Management and Employees will not, except as
      authorized or required in connection with provision of the Services,
      reveal or divulge to any person or company any of the trade secrets,
      secret or confidential operations, processes or dealings or any
      information concerning the organization, business, finances, transactions
      or other affairs of SMIH which may come to CAG’s or its Management’s and
      Employees’ knowledge during the term of this Agreement and will keep in
      complete secrecy all confidential information entrusted to CAG or its
      Management and Employees and will not use or attempt to use any such
      information in any manner which may injure or cause loss, either directly
      or indirectly, to SMIH’s businesses or may be likely so to do. This
      restriction will continue to apply after the termination of this Agreement
      without limit in point of time but will cease to apply to information or
      knowledge which may come into the public domain.

	 	 	 
	 		
      CAG will comply, and will cause its Management and
      Employees to comply with such directions as SMIH will make to ensure the
      safeguarding or confidentiality of all such information. SMIH may require
      that the Management and Employees execute an agreement with SMIH regarding
      the confidentiality of all such information.

	 	 	 
	 	(f) 	
      CAG and its Management and Employees will not disclose to
      any party information relating to SMIH that has not been publicly
      disclosed, nor will CAG or its Management and Employees trade in shares of
      SMIH while in possession of such knowledge.

10.       
Termination of Agreement 

Unless otherwise terminated pursuant to this section 10, this
Agreement will terminate on November 14th, 2006, provided that: 

	 	(a) 	
      SMIH may terminate this Agreement, with or without cause,
      upon a date which is 90 days after providing written notice of termination
      to the CAG;

	 	 	 
	 	(b) 	
      No termination of this Agreement shall operate to relieve
      either party of any obligation on the part of that party which arose
      before the date of notice of termination.

	 	 	 
	 	(c) 	
      All remuneration terms described in section 4a and 4b
      shall remain effective, due and payable in full regardless of early
      termination, with or without cause.

5

11.       
Reverse Split

	 	a) 	
      Adjustment. If, within three years from the commencement
      date of this agreement, Sun New Media Inc effects a reverse split of its
      share capital, the number of common Shares & Stock Option shares
      specified in sections 4(a) and (b) shall be adjusted accordingly to
      reflect the reverse split, such that the number of SNMD shares entitled by
      CAG and the Optionees shall be the same as that immediately prior to such
      reverse split.

	 	 	 
	 	b) 	
      Top Up. If, within three years from the commencement date
      of this agreement Sun New Media effects a reverse split of its share
      capital, SMIH shall, promptly following the effective date of such reverse
      split(s), pay to CAG and the Optionees a sufficient number of Common
      Shares and Stock Option shares of SNMD such that the number of such Common
      Shares & Stock Options then held by CAG and the Optionees are equal to
      the number it held immediately prior to the reverse split being effected.
      The provisions of this section shall survive the termination of this
      Agreement.

12.        General

	 	(a) 	
      Time of Essence

	 	 	 
	 		
      Time is hereby expressly made of the essence of this
      Agreement with respect to the performance by the parties of their
      respective obligations under this Agreement.

	 	 	 
	 	(b) 	
      Enurement

	 	 	 
	 		
      This Agreement will ensure to the benefit of and be
      binding upon the parties hereto and their respective heirs, executors,
      administrators, personal representatives, successors and
assigns.

	 	 	 
	 	(c) 	
      Entire Agreement

	 	 	 
	 		
      This Agreement constitutes the entire agreement between
      the parties and supersedes all previous expectations, understandings,
      communications, representations and agreements, whether verbal or written
      between the parties with respect to the subject matter hereof.

	 	 	 
	 	(d) 	
      Further Assurances

	 	 	 
	 		
      Each of the parties hereto hereby covenants and agrees to
      execute such further and other documents and instruments and do such
      further and other things as may be necessary to implement and carry out
      the intent of this Agreement.

	 	 	 
	 	(e) 	
      Notices

	 	 	 
	 		
      All notices, requests, demands and other communications
      hereunder will be in writing and will be deemed to have been duly given if
      delivered by hand or mailed, postage prepaid, addressed to the parties at
      their addresses first set forth above or to such other address as may be
      given in writing by SMIH or CAG and will be deemed to have been received,
      if delivered, on the date of delivery and if mailed as aforesaid within
      Canada or United States, then on the tenth business day following the
      posting thereof provided that if there will be, between the time of
      mailing, and the actual receipt of the notice a mail strike, slowdown or
      other labor dispute which might affect the delivery of the notice by the
      mails, then the notice will be effective if actually
  delivered.

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