Document:

Exhibit
        10.3

      

       

      AGREEMENT

       

      DATE :- The
        13th
        day of
        May 2005.

       

      PARTIES :-

       

      
        	
                A)

              	
                Chuangrun
                  Media Limited, a corporation incorporated in Hong Kong and having
                  its
                  registered office at Room 1403, 14/F, SUP Tower, 75-83 King’s Road, North
                  Point, Hong Kong (hereinafter referred to as ‘Chuangrun’) represented by
                  its authorized representative Mr. Cai Han-Xiong
                  and

              

      

       

      
        	
                B)

              	
                Actionview
                  Far East Limited, a corporation incorporated in Hong Kong and having
                  its
                  registered office/principal place of business at 12/F, Chuang’s City Tower
                  No. 35-39 Morrison Hill Road, Wanchai, Hong Kong (hereinafter referred
                  to
                  as ‘Actionview’) represented by its legal representative Mr. Justin
                  Kwei.

              

      

       

      

       

      WHEREAS:

       

      
        	
                1.

              	
                ActionView
                  International, Inc.
                  of
                  Canada has developed and owns a proprietary backlit scrolling billboard
                  advertising system (defined in Clause 1 and hereinafter referred
                  to as the
                  Display System).

              

      

       

      
        	
                2.

              	
                ActionView
                  International, Inc.
                  is
                  a shareholder of Actionview and has duly licensed Actionview to
                  market and
                  distribute the Display System and to grant sub-licenses of the
                  Display
                  System and the Proprietary Rights (as defined hereunder) to third
                  parties
                  in Asia.

              

      

       

      
        	
                3.

              	
                Actionview
                  and Chuangrun have agreed to co-operate in providing advertising
                  service
                  to customers in Guangzhou, PRC using the Display
                  System.

              

      

       

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      IT
        IS
        HEREBY MUTUALLY AGREED as follows:

       

      
        	
                1

              	
                DEFINITIONS
                  AND INTERPRETATION

              

      

       

      
        	 	
                1.1

              	
                For
                  the purpose of this agreement, the following expressions shall
                  bear the
                  respective meaning set forth below.

              

      

       

      Business:
        the
        business of advertising by means of the Display System.

       

      Display
        Unit:
        means a
        unit of the Display System deployed in the Business of either 1m. x 1.5 m.
        or
        1.2 m. x 1.8 m. or 1.5 m. x 4.0 m
        or 1m. x
        1.5m. (double-sided) or
        such
        other dimensions as the parties may agree from time to time.

       

      Display
        System:
        means
        the Actionview backlit scrolling billboard including the built-in controlling
        software.

       

      Effective
        Date:
        as
        defined in Clause 6.

       

      Force
        Majeure:
        means,
        in relation to either party, any circumstances beyond the reasonable control
        of
        that party.

       

      Hong
        Kong: the
        Hong
        Kong Special Administrative Region of the PRC

       

      Manual:
        the
        operation manual produced by Actionview as amended from time to time by
        Actionview in respect of the Display System

       

      Patents:
        means
        all patents now or hereafter held (including but not limited to patents now
        in
        the course of registration) by ActionView Inc. and/or Actionview relating
        to the
        Display System or any part thereof.

       

      Premises:
        the
        locations proposed to be used by Chuangrun for the installation of Display
        Units

       

      PRC:
        the
        People’s Republic of China

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Proprietary
        Rights:
        means
        the Patents, Trade Marks, Trade Names and the package of industrial and
        intellectual property rights relating to all trade marks, trade names, logos,
        insignia, models, designs, copyrights, know-how, drawings, plans and/or patent
        in or in connection with the Display System and/or the Manual licensed by
        ActionView
        International Inc.
        to
        Actionview.

       

      Restricted
        Information:
        means
        any information which is disclosed by either party to this agreement to the
        other pursuant to or in connection with this agreement (whether orally or
        in
        writing, and whether or not such information is expressly stated to be
        confidential or marked as such).

       

      Revenue:
        means
        the gross turnover derived from the Business by Chuangrun whether or not
        invoiced, less business tax, sales commissions and Premises rental
        fee.

       

      Term:
        means
        the term of this agreement as defined in Clause 6 below.

       

      Territory:
        means
        Guangzhou City Area of the PRC.

       

      Trade
        Marks:
        means
‘ActionView’ or any other trade mark (whether registered or not) which may now
        or hereafter be used by ActionView
        International Inc.
        and/or
        Actionview in connection with the Display System.

       

      Trade
        Names:
        means
‘ActionView’ or any other trade name (whether registered or not) which may now
        or hereafter be used by ActionView
        International Inc.
        and/or
        Actionview in connection with the Display System.

       

      
        	 	
                1.2

              	
                The
                  headings in this agreement are for convenience only and shall not
                  affect
                  its interpretation.

              

      

       

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                2

              	
                RESPONSIBILITIES
                  OF THE PARTIES

              

      

       

      
        	 	
                2.1

              	
                Chuangrun
                  shall

              

      

       

      
        	 	
                2.1.1

              	
                procure
                  Premises within the Guangzhou Metro System, the Guangzhou Airport
                  at
                  Huadu, and such other locations within the City of Guangzhou, P.R.C.
                  for
                  installation of Display Units;

              

      

       

      
        	 	
                2.1.2

              	
                enter
                  into such lease, license or other agreement with such party as
                  may be
                  necessary for the use of Premises;

              

      

       

      
        	 	
                2.1.3

              	
                install
                  Display Units at the Premises and maintain the Display Units at
                  all times
                  in good clean operational
                  condition;

              

      

       

      
        	 	
                2.1.4

              	
                use
                  its best endeavor to promote the
                  Business;

              

      

       

      
        	 	
                2.1.5

              	
                enter
                  into binding contracts with advertisers and/or other users of the
                  Display
                  Units by itself or through its approved
                  agents;

              

      

       

      
        	 	
                2.1.6

              	
                perform
                  and observe all the terms and conditions contained in the aforesaid
                  lease,
                  license or other agreement mentioned in Clause 2.1.2 and contracts
                  mentioned in 2.1.5;

              

      

       

      
        	 	
                2.1.7

              	
                be
                  responsible for the collection of Revenue from advertisers and
                  other users
                  of the Display Units.

              

      

       

      
        	 	
                2.2

              	
                Actionview
                  shall

              

      

       

      
        	 	
                2.2.1

              	
                supply
                  Display Units to Chuangrun and deliver the same to Chuangrun in
                  Guangzhou
                  and provide technical support for
                  installation;

              

      

       

      
        	 	
                2.2.2

              	
                supply
                  spare parts for the Display Units;

              

      

       

      
        	 	
                2.2.3

              	
                provide
                  product training and technical
                  support;

              

      

       

      
        	 	
                2.2.4

              	
                be
                  responsible for the costs of transporting Display Units to Premises
                  within
                  the Territory.

              

      

       

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                3

              	
                RIGHTS
                  GRANTED TO CHUANGRUN

              

      

       

      
        	 	
                3.1

              	
                For
                  the sole purpose of the operation of the Business from the Premises,
                  Actionview grants Chuangrun for the Term, the following
                  rights:

              

      

       

      
        	 	
                3.1.1

              	
                the
                  right and license to use the Proprietary Rights and the Display
                  System;

              

      

       

      
        	 	
                3.1.2

              	
                the
                  right to receive all Actionview's know-how, training and assistance
                  as
                  indicated below;

              

      

       

      
        	 	
                3.2

              	
                Chuangrun
                  shall use the rights granted under Clause 3.1 in accordance with
                  the terms
                  and within the limits stated herein and shall perform each of its
                  obligations provided for herein.

              

      

       

      
        	 	
                3.3

              	
                Chuangrun
                  shall not use the rights hereby granted for any purpose other than
                  operating of Business from the Premises or use them after the expiration
                  or termination of this agreement, howsoever
                  caused.

              

      

       

      
        	 	
                3.4

              	
                The
                  grant of all such rights to Chuangrun shall be conditional (and
                  continue
                  to be conditional during the Term) upon Chuangrun observing in
                  full its
                  obligations set forth in Clauses 3.2 and 3.3
                  above.

              

      

       

      

      
        	
                4

              	
                LEGAL
                  STATUS OF THE PARTIES

              

      

       

      
        	 	
                4.1

              	
                Chuangrun
                  shall conduct the Business as an independent business operator
                  in its own
                  name and on its own account.

              

      

       

      
        	 	
                4.2

              	
                Chuangrun
                  shall operate the Business in compliance with all applicable laws
                  and
                  regulations and shall apply for, obtain and have renewed all permits,
                  authorizations and licenses required for the operation of the Business
                  at
                  its own expense.

              

      

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	 	
                4.3

              	
                Neither
                  party is an employee, agent, sales representative, nor a partner
                  of the
                  other. Neither party shall hold itself out as such or as having
                  any power
                  or authority to enter into contracts in the name of the other,
                  or to
                  commit the other in any way to any third parties or to incur any
                  obligation on behalf of the other.

              

      

       

      

      
        	
                5

              	
                RESTRAINTS
                  ON CHUANGRUN

              

      

       

      
        	 	
                5.1

              	
                During
                  the Term, Chuangrun shall not:

              

      

       

      
        	 	
                5.1.1

              	
                Install
                  Display Units at any location other than the Premises without the
                  prior
                  consent in writing of Actionview which consent shall not be unreasonably
                  withheld (provided that if Actionview is unable to supply the Display
                  Units, Chuangrun is entitled to co-operate with any third
                  party);

              

      

       

      
        	 	
                5.1.2

              	
                use
                  the Proprietary Rights otherwise than in relation to the operation
                  of the
                  Business;

              

      

       

      
        	 	
                5.1.3

              	
                have
                  the right to grant any further sub-license of the Proprietary Rights
                  or
                  part thereof to any third party;

              

      

       

      
        	 	
                5.1.4

              	
                conduct
                  the Business or any part thereof by or through any agent without
                  the prior
                  written consent of Actionview, which consent shall not be unreasonably
                  withheld.

              

      

      
 

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                6

              	
                TERM

              

      

       

      Subject
        to the provisions of Clauses 16 and 17 below, this agreement shall come into
        force on April 1, 2005 (hereinafter referred to as the Effective Date) and
        continue in force until March 31, 2010.

       

      

      
        	
                7

              	
                OBLIGATIONS
                  OF ACTIONVIEW

              

      

       

      
        	 	
                7.1

              	
                Prior
                  to the execution of this agreement, Actionview has delivered to
                  Chuangrun
                  those Display Units mentioned Schedule 1 to this agreement and
                  Chuangrun
                  hereby acknowledges the receipt of the said units. Actionview shall
                  deliver the number of Display Units mentioned in Schedule 2 to
                  this
                  agreement in accordance within the period mentioned therein. All
                  Display
                  Units shall remain the property of Actionview during and after
                  the
                  Term.

              

      

       

      
        	 	
                7.2

              	
                Actionview
                  shall provide Chuangrun from time to time
                  with:

              

      

       

      
        	 	
                7.2.1

              	
                plans
                  and specifications for the installation of Display Units at the
                  Premises
                  insofar as not included in the
                  Manual;

              

      

       

      
        	 	
                7.2.2

              	
                such
                  general supervision of the preparation of the Premises for installation
                  as
                  Actionview shall consider
                  appropriate;

              

      

       

      
        	 	
                7.3

              	
                Before
                  the execution of this agreement, Actionview has delivered a copy
                  of the
                  Manual to Chuangrun on loan and Chuangrun hereby acknowledges receipt
                  of
                  the Manual.
                  Actionview shall be entitled to update the Manual from time to
                  time
                  provided that Actionview shall forward to Chuangrun on loan full
                  written
                  particulars of such updates.

              

      

       

      
        	 	
                7.4

              	
                Actionview
                  shall be responsible for all maintenance and repairs of the display
                  units.

              

      

       

      
        	 	
                7.5

              	
                Actionview
                  shall carry out the maintenance works with an average response
                  time of 4
                  hours.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
                8

              	
                OBLIGATIONS
                  OF CHUANGRUN

              

      

       

      
        	 	
                8.1

              	
                Chuangrun
                  shall use its best endeavors to promote and expand the Business
                  within the
                  Territory and collaborate with Actionview and protect its interests
                  with
                  the diligence of a responsible
                  businessperson.

              

      

       

      
        	 	
                8.2

              	
                Chuangrun
                  shall conduct the Business in full compliance with all operational
                  systems, procedures, policies, methods and requirements prescribed
                  in the
                  Manual as well as in any supplemental notices, revisions or amendments
                  thereto.

              

      

       

      
        	 	
                8.3

              	
                Chuangrun
                  acknowledges that the Manual and all such additional and supplemental
                  materials shall at all times remain the sole and exclusive property
                  of
                  Actionview and the copyright therein shall at all times remain
                  and/or vest
                  in Actionview.

              

      

      

       

      
        	 	
                8.4

              	
                Chuangrun
                  shall hire a sufficient number of employees, suitably qualified
                  to operate
                  the Business and to meet all likely demands of its
                  customers.

              

      

       

      
        	 	
                8.5

              	
                Chuangrun
                  shall keep true and complete documentation and accounting records
                  concerning the Business and Revenue including but not limited
                  to

              

      

       

      
        	 	
                8.5.1

              	
                Contracts
                  with advertisers and third parties for the use of the Display Units;
                  and

              

      

       

      
        	 	
                8.5.2

              	
                Invoices
                  issued to such advertisers and third
                  parties

              

      

       

      
        	 	
                8.5.3

              	
                All
                  evidence of receipts of Revenue and payment of
                  tax

              

      

       

      and
        allow
        Actionview to inspect and take copy of such documentation and records upon
        48
        hours prior notice

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	 	
                8.6

              	
                Chuangrun
                  shall establish a good system of financial control and take all
                  practicable steps to prevent late payment or default in payment
                  of Revenue
                  by third parties. 

              

      

       

      

      
        	
                9

              	
                IMPROVEMENTS
                  MADE BY ACTIONVIEW

              

      

       

      
        	 	
                9.1

              	
                If
                  Actionview makes any improvements to the Display System, it shall
                  without
                  delay communicate the same to Chuangrun and Chuangrun shall without
                  delay
                  use such improvements, free of all further royalties, charges or
                  payment
                  whatsoever, at the time and in the manner specified by Actionview
                  in
                  writing.

              

      

       

      

      
        	
                10

              	
                IMPROVEMENTS
                  MADE BY CHUANGRUN

              

      

       

      
        	 	
                10.1

              	
                Chuangrun
                  shall notify Actionview any improvements which shall be made to
                  the
                  Display System to be useful to the operation of the Business and
                  shall
                  grant Actionview a permanent, royalty-free, exclusive and worldwide
                  license with respect to said improvements, including the right
                  to
                  sub-license.

              

      

       

      

      
        	
                11

              	
                REPRESENTATIONS
                  BY ACTIONVIEW/OBLIGATIONS OF
                  ACTIONVIEW

              

      

       

      
        	 	
                11.1

              	
                Actionview
                  represents that:

              

      

       

      
        	 	
                11.1.1

              	
                it
                  is duly licensed by ActionView
                  International, Inc.
                  to
                  use the Proprietary Rights, including the right to grant sub-licenses
                  thereof to Chuangrun in the manner set out in this
                  agreement;

              

      

       

      
        	 	
                11.1.2

              	
                as
                  far as Actionview is aware, the use by Chuangrun of the rights
                  granted
                  under Clause 3 of this agreement does not infringe the rights of
                  any third
                  party within the Territory;

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	 	
                11.1.3

              	
                it
                  is not aware, at the time of the execution of this agreement, of
                  any
                  action, claim or proceedings brought or threatened in respect of
                  any of
                  the Proprietary Rights.

              

      

       

      

      
        	
                12

              	
                REPRESENTATIONS
                  BY CHUANGRUN/OBLIGATIONS OF
                  CHUANGRUN

              

      

       

      
        	 	
                12.1

              	
                Chuangrun
                  acknowledges that Actionview
                  International, Inc.
                  is
                  the owner and Actionview is the licensee of the Proprietary Rights
                  and all
                  proprietary rights , title, and interest in the Display System
                  and the
                  goodwill associated therewith and that such goodwill shall inure
                  to and be
                  at all times vested in ActionView
                  International, Inc.
                  and Actionview exclusively.

              

      

       

      
        	 	
                12.2

              	
                Chuangrun
                  shall use the Proprietary Rights only in the manner required or
                  authorized
                  and permitted by Actionview and only in connection with the operation
                  of
                  the Business.

              

      

       

      
        	 	
                12.3

              	
                Chuangrun
                  shall not register or attempt to register any of the Trade Marks,
                  Trade
                  Names, Patents or any other Proprietary Rights in Chuangrun's name
                  or that
                  of any other person, firm, entity or
                  corporation.

              

      

       

      
        	 	
                12.4

              	
                Chuangrun
                  shall not, without Actionview's prior written consent, register
                  any
                  company name or trade mark or make use of any business name incorporating
                  any of the Trade Names or Trade Marks or other Proprietary Rights
                  or
                  incorporating any similar-sounding name which is confusingly similar
                  to,
                  or unfairly competing with, any of the Trade Marks or Trade
                  Names.

              

      

       

      
        	 	
                12.5

              	
                If
                  Chuangrun becomes aware of any infringement or threatened infringement
                  of
                  any of the Trade Marks, Trade Names or Patents or any other Proprietary
                  Rights or any act of unfair competition or any act likely to impair
                  the
                  goodwill or reputation of/or associated with any of the Trade Marks
                  or
                  Trade Names or Proprietary Rights, or of any claim asserted by
                  a third
                  party in respect of the use of any of the aforesaid within the
                  Territory,
                  Chuangrun shall promptly give Actionview full particulars of such
                  circumstance.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	 	
                12.6

              	
                Actionview
                  shall have the conduct of all proceedings relating to the Trade
                  Marks or
                  Trade Names or Patents or any other Proprietary Rights and Actionview
                  shall in its sole discretion decide what action (including an action
                  at
                  law, an arbitral proceeding or an out-of-court settlement) to take,
                  if
                  any, with respect to any infringement of the aforesaid or any claims
                  asserted by any third party in relation
                  thereto.

              

      

       

      
        	 	
                12.7

              	
                Chuangrun
                  shall provide Actionview with full assistance and cooperation in
                  any
                  action, claim or proceedings brought or threatened in respect of
                  any of
                  the Trade Marks or Trade Names or Patents or any other Proprietary
                  Rights
                  and at the request of Actionview shall join with Actionview in
                  such action
                  or proceedings, provided it has a cause of action under the applicable
                  law
                  - it being understood that all costs incurred in connection with
                  this
                  assistance/actions will be borne by
                  Actionview.

              

      

       

      
        	 	
                12.8

              	
                During
                  the Term, Chuangrun must expressly identify itself as a licensee
                  (and not
                  the owner) of the Trade Marks, Trade Names and Patents on all invoices,
                  order forms, receipts, business stationery, and
                  contracts.

              

      

       

      
        	 	
                12.9

              	
                If
                  so requested by Actionview, Chuangrun shall arrange for the execution
                  of a
                  formal Trade Mark sub-license and the registration thereof at the
                  relevant
                  Trade Marks Registry or Registries, at its own expense and shall
                  make any
                  other necessary filings under national law to reflect its status
                  as a
                  licensee.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	 	
                12.10

              	
                Chuangrun
                  must comply with Actionview's instructions in filing and maintaining
                  any
                  requisite Trade Names and Trade Marks registrations and must execute
                  any
                  documents Actionview or its counsel deems necessary to obtain protection
                  for the Trade Marks or the Trade Names and to maintain their continued
                  validity and enforceability.

              

      

       

      
        	 	
                12.11

              	
                Chuangrun
                  expressly acknowledges and agrees
                  that:

              

      

       

      
        	 	
                12.11.1

              	
                any
                  and all goodwill arising from Chuangrun's use of the Proprietary
                  Rights in
                  accordance with this agreement is solely and exclusively for Actionview's
                  benefit, and upon expiration or termination of this agreement,
                  no monetary
                  amount will be assigned as attributable to any goodwill associated
                  with
                  Chuangrun's use of the Display System or the Proprietary
                  Rights;

              

      

       

      
        	 	
                12.11.2

              	
                Actionview
                  reserves the right to add and/or substitute different Proprietary
                  Rights
                  for use in connection with the Display System and the businesses
                  operating
                  under the Display System.

              

      

      

      

      
        	
                13

              	
                REVENUE
                  SHARING

              

      

       

      
        	 	
                13.1

              	
                Chuangrun
                  shall pay Actionview 30% of the Revenue. Revenue is defined as
                  the gross
                  turnover derived from the Business by Chuangrun less Premises rental
                  fees,
                  15% sales commissions and 8% sales
                  tax.

              

      

      
        	 	
                13.2

              	
                Notwithstanding
                  Clause 13.1, Chuangrun shall pay Actionview for each and every
                  Display
                  Unit of the dimensions mentioned in column 1 of the table below
                  the
                  minimum revenue mentioned in the corresponding row of column 2
                  within the
                  period mentioned in the corresponding row in column 3 of that
                  table:

              

      

      

      
        	
                1

              	
                2

              	
                3

              
	
                1.0
                  m. x 1.5 m

              	
                RMB¥
                  25,200.00

              	
                6
                  months from date of delivery of the Display Unit to
                  Chuangrun

              
	
                1.2
                  m x 1.8 m

              	
                RMB¥
                  25,200.00

              	
                6
                  months from date of delivery of the Display Unit to
                  Chuangrun

              
	
                1.5
                  m x 4.0 m

              	
                RMB¥
                  94,500.00

              	
                6
                  months from date of delivery of the Display Unit to
                  Chuangrun

              
	
                1.0m
                  x 1.5 m. 

                (double-sided)

              	
                RMB¥
                  70,000.00

              	
                3
                  months from date of delivery of the Display Unit to
                  Chuangrun

              

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	 	
                13.3

              	
                Conditional
                  upon Actionview having received the minimum revenue as set out
                  in the
                  table in clause 13.2, Actionview’s share of the Revenue shall be reduced
                  to 25% in respect of that Display Unit of the dimensions mentioned
                  in
                  column 1 of the table below for the period set out in the corresponding
                  row of column 2 of that table:

              

      

       

      
        	
                1

              	
                2

              
	
                1.0
                  m. x 1.5 m

              	
                For
                  the 1st to 6th months (inclusive) after the date of receipt by
                  Actionview
                  of the said minimum revenue in respect of that Display
                  Unit

              
	
                1.2
                  m x 1.8 m

              	
                For
                  the 1st to 6th months (inclusive) after the date of receipt by
                  Actionview
                  of the said minimum revenue in respect of that Display
                  Unit

              
	
                1.5
                  m x 4.0 m

              	
                For
                  the 1st to 6th months (inclusive) after the date of receipt by
                  Actionview
                  of the said minimum revenue in respect of that Display
                  Unit

              
	
                1.0
                  m. x 1.5 m. 

                (double-sided)

              	
                For
                  the 1st to 3rd months (inclusive) after the date of receipt by
                  Actionview
                  of the said minimum revenue in respect of that Display
                  Unit

              

      

       

      

      
        	 	
                13.4

              	
                Conditional
                  upon Actionview having received the minimum revenue as set out
                  in the
                  table in clause 13.2, Actionview’s share of the Revenue shall be further
                  reduced to 20% in respect of that Display Unit of the dimensions
                  mentioned
                  in column 1 of the table in Clause 13.3 from the date of expiry
                  of the
                  period mentioned in the corresponding row of column 2 of that table
                  until
                  the expiration or earlier termination of this
                  agreement.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	 	
                13.5

              	
                For
                  the avoidance of doubt, notwithstanding Clause 13.3 or 13.4 Actionview’s
                  share of Revenue in respect of other
                  Display Units in respect of which Actionview has not been paid
                  the
                  aforesaid minimum revenue shall remain at 30% throughout the term
                  of this
                  agreement.

              

      

       

      
        	 	
                13.6

              	
                Within
                  14 days after the end of each month, Chuangrun shall deliver to
                  Actionview
                  a true and accurate statement of the month’s total Revenue with detailed
                  breakdown by each Display Unit and
                  customer.

              

      

       

      
        	 	
                13.7

              	
                Chuangrun
                  shall, within 30 days of receipt of Activonview’s invoice on its share of
                  Revenue or the minimum revenue pursuant to Clauses 13.2, pay to
                  Actionview
                  in Hong Kong and in Hong Kong dollars (at the exchange rate between
                  Hong
                  Kong dollars and Renminbi published by the People’s Bank of China on the
                  date of payment) the amount due to Actionview without any demand.
                  Chuangrun shall not make any deduction or set-off from the amount
                  payable
                  to Actionview save and except the administrative fee and tax set
                  out in
                  Clause 13.8. Chuangrun shall cause the payment to be paid to the
                  following
                  bank account:-

              

      

       

      Bank
        & Branch :
        Hong
        Kong and Shanghai Banking Corporation Limited

       

      Account
        Name :
        Actionview Far East Limited

       

      Account
        No. : 404-160145-001

       

      
        	 	
                13.8

              	
                Chuangrun
                  shall be entitled to deduct from the amount payable to Actionview
                  an
                  administrative fee equivalent to 2% of such
                  amount.

              

      

       

      
        	 	
                13.9

              	
                In
                  case Chuangrun having received Revenue but fails to pay Actionview’s share
                  of Revenue in full or fails to pay Actionview the minimum share
                  of Revenue
                  in accordance with Clause 13.2, Chuangrun shall pay interest on
                  the amount
                  due and unpaid at the rate of 0.3% per day, such interest shall
                  be payable
                  from the due date for payment until the actual date of payment
                  whether
                  before or after any judgment is given by any court having
                  jurisdiction.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
                14

              	
                CONFIDENTIALITY

              

      

       

      
        	 	
                14.1

              	
                Except
                  as provided by clauses 14.2 and 14.3, each of Chuangrun and Actionview
                  shall at all times during the continuance of this agreement and
                  after its
                  expiration or termination:

              

      

       

      
        	 	
                14.1.1

              	
                Use
                  its best endeavors to keep all Restricted Information confidential
                  and
                  accordingly not to disclose any Restricted Information to any other
                  person; and

              

      

       

      
        	 	
                14.1.2

              	
                Not
                  use any Restricted Information for any purpose other than the performance
                  of the obligations under this
                  agreement.

              

      

       

      
        	 	
                14.2

              	
                Any
                  Restricted Information may be disclosed by either party
                  to:

              

      

       

      
        	 	
                14.2.1

              	
                Any
                  customers or prospective customers of the Business on a need to
                  know
                  basis

              

      

       

      
        	 	
                14.2.2

              	
                Any
                  governmental or other authority or regulatory body;
                  or

              

      

       

      
        	 	
                14.2.3

              	
                any
                  employee of that party or of any of the afore mentioned persons,
                  to such
                  extent only as is necessary for the purposes contemplated by this
                  agreement, or as is required by law and subject in each case to
                  the
                  discloser using its best endeavors to ensure that the person in
                  question
                  keeps the same confidential and does not use the same except for
                  the
                  purposes for which the disclosure is
                  made.

              

      

       

      
        	 	
                14.3

              	
                Any
                  Restricted Information may be used by either party for any purpose,
                  or
                  disclosed by either party to any other person, to the extent only
                  that:

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	 	
                14.3.1

              	
                It
                  is at the date hereof, or hereafter becomes, public knowledge through
                  no
                  fault of that party (provided that in doing so the discloser shall
                  not
                  disclose any Restricted Information which is not public knowledge);
                  or

              

      

       

      
        	 	
                14.3.2

              	
                It
                  can be shown by the discloser, to the reasonable satisfaction of
                  the other
                  party, to have been known to it prior to its being disclosed by
                  the other
                  party to the discloser.

              

      

       

      

      
        	
                15

              	
                FORCE
                  MAJEURE

              

      

       

      
        	 	
                15.1

              	
                If
                  either party is affected by Force Majeure it shall forthwith notify
                  the
                  other party of the nature and extent
                  thereof.

              

      

       

      
        	 	
                15.2

              	
                Neither
                  party shall be deemed to be in breach of this agreement, or otherwise
                  be
                  liable to the other, by reason of any delay in performance, or
                  non-performance, of any of its obligations hereunder to the extent
                  that
                  such delay or non-performance is due to any Force Majeure of which
                  it has
                  notified the other party; and the time for performance of that
                  obligation
                  shall be extended accordingly.

              

      

       

      
        	 	
                15.3

              	
                If
                  the Force Majeure in question prevails for a continuous period
                  in excess
                  of six months, the parties shall enter into bona fide discussions
                  with a
                  view to alleviating its effects, or to agreeing upon such alternative
                  arrangements as may be fair and
                  reasonable.

              

      

       

      

      
        	
                16

              	
                TERMINATION

              

      

       

      
        	 	
                16.1

              	
                If
                  either party at any time commit any material breach of any terms,
                  covenants or representations herein contained and shall fail to
                  remedy any
                  such breach within 30 days after written notice given hereof by
                  the other
                  party, this agreement shall terminate automatically (i.e. without
                  the need
                  for the non-defaulting party to obtain a Court's decision in this
                  respect)
                  upon the expiration of the above mentioned
                  period.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	 	
                16.2

              	
                Without
                  prejudice to the application of Clause 16.1, either party (hereafter
                  called the ‘Innocent Party’) shall be entitled to terminate this
                  agreement, with immediate effect (i.e., without the need to obtain
                  a
                  Court's decision in this respect) by written notice to such effect
                  to the
                  other party (hereafter called the ‘Wrongful
                  Party’):

              

      

       

      
        	 	
                16.2.1

              	
                if
                  the Wrongful Party shall be liquidated, becomes insolvent or suffers
                  any
                  other insolvency or bankruptcy process or seeks any protection
                  from its
                  creditors or is unable to pay its debts as and when they fall
                  due;

              

      

       

      
        	 	
                16.2.2

              	
                If
                  the Wrongful Party ceases to do business, or otherwise forfeits
                  the right
                  to do or transact business in the jurisdiction where the Premises
                  are
                  located.

              

      

       

      
        	 	
                16.2.3

              	
                If
                  

              

      

       

      
        	 	
                a)

              	
                all
                  or a substantial part of the capital stock or other property assets
                  or
                  interests of the Wrongful Party is acquired by any third party,
                  or
                  

              

      

       

      
        	 	
                b)

              	
                A
                  major change in the allocation of the voting rights held in respect
                  of the
                  Wrongful Party occurs, or 

              

      

       

      
        	 	
                c)

              	
                The
                  Wrongful Party merges with any third party or

              

      

       

      
        	 	
                d)

              	
                There
                  shall be a change in the ownership of 50% or more of the shareholdings
                  in
                  the Wrongful Party from that existing at the date of this agreement
                  and
                  the Wrongful Party fails to give any prior written notice to the
                  Innocent
                  Party 

              

      

       

      The
        Innocent Party may in its own discretion terminate this agreement with immediate
        effect (without need to obtain a Court's decision in this respect).

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
                17

              	
                EFFECTS/OBLIGATIONS
                  UPON TERMINATION

              

      

       

      
        	 	
                17.1

              	
                Upon
                  termination or expiration of this agreement, all rights granted
                  hereunder
                  to Chuangrun shall forthwith terminate, and Chuangrun shall observe
                  and
                  perform the following:

              

      

       

      
        	 	
                17.1.1

              	
                Chuangrun
                  shall immediately cease to operate the Business and shall not thereafter,
                  directly or indirectly, represent to the public or hold itself
                  out to have
                  any business relation with
                  Actionview.

              

      

       

      
        	 	
                17.1.2

              	
                Chuangrun
                  shall allow, and procure all relevant third parties to allow, Actionview
                  to have access to the Premises and remove all Display Units within
                  30
                  days. The costs of removal and transportation of Display Units
                  from
                  Premises shall be borne by
                  Actionview.

              

      

       

      
        	 	
                17.1.3

              	
                Chuangrun
                  shall immediately and permanently cease to use, in any manner whatsoever,
                  any format, confidential methods, programs, procedures and techniques
                  associated with the Display System, the Trade Names/Trade Marks
                  and any
                  other Proprietary Rights. In particular, Chuangrun shall cease
                  to use,
                  without limitation, all advertising materials or promotional displays,
                  uniforms, stationery, forms and any other articles which display
                  the Trade
                  Marks/Trade Names.

              

      

       

      
        	 	
                17.1.4

              	
                Chuangrun
                  shall promptly pay 

              

      

       

      
        	 	
                a)

              	
                Actionview’s
                  share in all amounts receivable from advertisers and other users
                  of
                  Display Units (whether actually received by Chuangrun in its account
                  or
                  not) up to the date of termination or expiration of this agreement;
                  and

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	 	
                b)

              	
                All
                  other sums due and payable to
                  Actionview.

              

      

       

      
        	 	
                17.1.5

              	
                Chuangrun
                  shall immediately return Display Units which are not installed
                  at Premises
                  and
                  all unused spare parts to Actionview. The transportation costs
                  thereof
                  shall be borne by Actionview.

              

      

       

      
        	 	
                17.1.6

              	
                Chuangrun
                  shall immediately return to Actionview all copies of all proprietary
                  materials delivered by Actionview to Chuangrun under this agreement,
                  including the Manual, all records, files, instructions, correspondence,
                  brochures, agreements, disclosure statements and any material bearing
                  Confidential Information any and all other materials provided on
                  loan and
                  relating to the operation of the Business in Chuangrun's possession
                  (in
                  each case in whatsoever media or format the same shall be recorded),
                  and
                  all copies thereof (all of which are acknowledged to be Actionview's
                  property), and shall retain no copy or record of any of the foregoing
                  excepting only Chuangrun’s copy of this agreement, any correspondence
                  between the parties and any other documents which Chuangrun reasonably
                  needs for compliance with any provision of law. All costs of delivering
                  all materials required by this Clause 18 shall be borne by Chuangrun.
                  In
                  addition to the foregoing, Chuangrun shall immediately turn over
                  to
                  Actionview any and all signs, software and/or other property under
                  lease
                  or license from Actionview.

              

      

       

      
        	 	
                17.2

              	
                The
                  termination or expiration of this agreement shall not prejudice
                  any right
                  or liability accrued to either party under the terms of this agreement
                  before the termination or
                  expiration.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	 	
                17.3

              	
                Upon
                  the termination or expiration of this
                  agreement,

              

      

       

      
        	 	
                17.3.1

              	
                Clauses
                  1, 7.1 (in respect of Actionview’s property rights in Display Units), 8.3,
                  12.1, 12.2, 12.3, 12.4, 12.6, 12.11, 13.8 (relating to Chuangrun’s
                  responsibility for taxes payable to the PRC tax authorities), 14,
                  17, 18,
                  19, 20, 21 and 22 shall survive and continue to be valid and binding
                  on
                  the parties.

              

      

       

      
        	 	
                17.3.2

              	
                Clauses
                  7.5.1 and 7.5.2 shall survive and continue to be valid and binding
                  on the
                  parties before Chuangrun has fully performed its obligations under
                  Clause
                  17.1.5.

              

      

       

      
        	 	
                17.3.3

              	
                Clauses
                  8.6, 13.7, 13.8 and 13.9 shall survive and continue to be valid
                  and
                  binding on the parties before Chuangrun has fully performed its
                  obligations under Clause 17.1.4.

              

      

       

      

      
        	
                18

              	
                SEVERABILITY

              

      

       

      
        	 	
                18.1

              	
                Should
                  any clause be considered invalid or unenforceable by a Court of
                  competent
                  jurisdiction or an Arbitral Tribunal, all other provisions shall
                  remain in
                  full force and effect and shall not be
                  affected.

              

      

       

      
        	 	
                18.2

              	
                The
                  parties agree, however, to replace, when possible, any provision
                  declared
                  invalid by a provision which shall reflect their initial intent,
                  as
                  objectively and consistently as possible and in accordance with
                  the basic
                  relationship existing between the
                  parties.

              

      

       

      

      
        	
                19

              	
                ENTIRE
                  AGREEMENT

              

      

       

      
        	 	
                19.1

              	
                This
                  agreement sets forth the entire agreement and understanding of
                  the parties
                  hereto relating to the subject matter contained herein and merges
                  all
                  prior discussions between them and neither party shall be bound
                  by any
                  previous agreements, negotiations, commitments and writings other
                  than as
                  expressly stated in this agreement.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	 	
                19.2

              	
                This
                  agreement may not be changed, modified or supplemented in any manner
                  orally or otherwise except by an instrument in writing signed by
                  a duly
                  authorized representative of each of the parties
                  hereto.

              

      

       

      

      
        	
                20

              	
                NO
                  WAIVER

              

      

       

      
        	 	
                20.1

              	
                The
                  non-enforcement of any provision contained in this agreement shall
                  not be
                  construed by either party as a waiver of the right to enforce the
                  provision at another time under different circumstances and/or
                  enforce
                  other provisions of this agreement.

              

      

       

      
        	 	
                20.2

              	
                In
                  particular, the failure of either of the parties hereto to claim
                  damages
                  or to terminate this agreement by reason of the breach of any of
                  the
                  provisions hereof by the other party shall not stop the party not
                  in
                  default from thereafter claiming damages or terminating this agreement
                  by
                  reason of any subsequent breach of any of the provisions
                  hereof.

              

      

       

      

      
        	
                21

              	
                APPLICABLE
                  LAW

              

      

       

      This
        agreement is governed by the law of Hong Kong and the parties agree to submit
        to
        the non-exclusive jurisdiction of the Hong Kong courts.

       

      

      
        	
                22

              	
                LANGUAGE
                  AND COUNTERPARTS

              

      

       

      This
        agreement is executed in quadruplicate and in Chinese languages. 

       

      

      
        	
                23

              	
                FURTHER
                  ASSURANCE

              

      

       

      Chuangrun
        and Actionview agrees to negotiate in good faith and execute such further
        documents or agreements and do all such things reasonably necessary to carry
        out
        the provisions of this agreement, including, without limitation, the
        facilitation of legally remitting Actionview’s share of Revenue from
        China.

       

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    SCHEDULE
      1

    

      
        	
                Size

              	
                Quantity

              	
                Remark

              
	
                1.0m
                  x 1.5m

              	
                10
                  sets

              	
                Already
                  installed in Guangzhou Metro

              
	
                (Single-sided)

              	 	 
	
                1.2m
                  x 1.8m

              	
                2
                  sets

              	
                In
                  Chuangrun’s warehouse pending installation

              
	
                (Single-sided)

              	 	 

      

    

     

    SCHEDULE
      2

     

    
      	
              Size

            	
              Quantity
                

            	
              Delivery
                on or before

            	
              Remark

            
	
              1.0m
                x 1.5m

            	
              50
                sets

            	
              30th
                April, 2005

            	
              For
                Airport Bus Stop

            
	
              (Double-sided)

            	 	 	 
	
              1.5m
                x 4.0m

            	
              100
                sets

            	
              Date
                to be advised

            	
              For
                Airport Departure Hall

            
	
              (Single-sided)
                

            

    

     

     

    
      	
              For
                and on behalf of

              
                CHUANGRUN
                  MEDIA LIMITED

                
                  LIMITED

                

              

            	
              For
                and on behalf of

              
                ACTIONVIEW
                  FAR EAST 

              

            
	 	 
	
              “SIGNED”

              
                /s/
                  Cai Han-Xiong

                
                  Chuangrun
                    Media Limited

                  
                    By
                      Cai Han-Xiong, its director 

                    
                      and
                        duly authorized representative

                      
                        representative
                          

                         

                      

                    

                  

                

              

            	
              “SIGNED”

              
                /s/
                  Justin Kwei

                
                  Actionview
                    Far East Limited

                  
                    By
                      Justin Kwei, its director

                    
                      and
                        duly authorized 

                    

                  

                

              

            
	
              Witness:

            	
              Witness:Exhibit
        4.1

       

      
        INFINIUM
          LABS, INC.

        2005
          STOCK COMPENSATION PLAN B

      

      
 

      THIS
        INFINIUM LABS, INC. 2005 STOCK COMPENSATION PLAN B (the "Plan") is designed
        to
        retain employees and reward them for making major contributions to the success
        of the Company. These objectives are accomplished by making incentive awards
        under the Plan thereby providing Participants with a proprietary interest
        in the
        growth and performance of the Company. 

      

      1.
        Definitions. 

      

      (a)
        "Board" - The Board of Directors of the Company. 

      

      (b)
        "Code" - The Internal Revenue Code of 1986, as amended from time to time.
        

      

      (c)
        "Committee" - The Compensation Committee of the Company's Board, or such
        other
        committee of the Board that is designated by the Board to administer the
        Plan,
        composed of not less than two members of the Board all of whom are disinterested
        persons, as contemplated by Rule 16b-3 ("Rule 16b-3") promulgated under the
        Securities Exchange Act of 1934, as amended (the "Exchange Act"). 

      

      (d)
        "Company" - Infinium Labs, Inc. and its subsidiaries including subsidiaries
        of
        subsidiaries. 

      

      (e)
        "Exchange Act" - The Securities Exchange Act of 1934, as amended from time
        to
        time. 

      

      (f)
        "Fair
        Market Value" - The fair market value of the Company's issued and outstanding
        Stock as determined in good faith by the Board or Committee. 

      

      (g)
        "Grant" - The grant of any stock award to a Participant pursuant to such
        terms,
        conditions and limitations as the Committee may establish in order to fulfill
        the objectives of the Plan. 

      

      (h)
        "Grant Agreement" - An agreement between the Company and a Participant that
        sets
        forth the terms, conditions and limitations applicable to a Grant. 

      

      (i)
        "Participant" - An outside consultants, professional and service provider
        of the
        Company to whom an Award has been made under the Plan. 

      

      (j)
        "Securities Act" - The Securities Act of 1933, as amended from time to time.
        

      

      (k)
        "Stock" - Authorized and issued or unissued shares of common stock of the
        Company. 

      

      (l)
        "Stock Award" - A Grant made under the Plan in stock or denominated in units
        of
        stock for which the Participant is not obligated to pay additional
        consideration. 

      

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      2.
        Administration. 

      

      The
        Plan
        shall be administered by the Board, provided however, that the Board may
        delegate such administration to the Committee. Subject to the provisions
        of the
        Plan, the Board and/or the Committee shall have authority to (a) grant, in
        its
        discretion, Stock Awards; (b) determine in good faith the fair market value
        of
        the Stock covered by any Grant; (c) determine which eligible persons shall
        receive Grants and the number of shares, restrictions, terms and conditions
        to
        be included in such Grants; (d) construe and interpret the Plan; (e) promulgate,
        amend and rescind rules and regulations relating to its administration, and
        correct defects, omissions and inconsistencies in the Plan or any Grant;
        (f)
        consistent with the Plan and with the consent of the Participant, as
        appropriate, amend any outstanding Grant; (g) determine the duration and
        purpose
        of leaves of absence which may be granted to Participants without constituting
        termination of their engagement for the purpose of the Plan or any Grant;
        and
        (h) make all other determinations necessary or advisable for the Plan's
        administration. The interpretation and construction by the Board of any
        provisions of the Plan or selection of Participants shall be conclusive and
        final. No member of the Board or the Committee shall be liable for any action
        or
        determination made in good faith with respect to the Plan or any Grant made
        thereunder. 

      

      3.
        Eligibility. 

      

      The
        persons who shall be eligible to receive Grants shall be non-executive
        employees, professional advisors and consultants of the Company. 

      

      4.
        Stock.

      

      (a)
        Authorized Stock: Stock subject to Grants may be either unissued or reacquired
        Stock. 

      

      (b)
        Number of Shares: Subject to adjustment as provided in Section 5(i) of the
        Plan,
        the total number of shares of Stock which may be purchased or granted directly
        by Stock Awards granted under the Plan shall not exceed Seven Million
        (7,000,000) shares. If any Grant shall for any reason terminate or expire,
        any
        shares allocated thereto but remaining unvested shall again be available
        for
        Grants with respect thereto under the Plan as though no Grant had previously
        occurred with respect to such shares. Any shares of Stock issued pursuant
        to a
        Grant and repurchased pursuant to the terms thereof shall be available for
        future Grants as though not previously covered by a Grant. 

      

      (c)
        Reservation of Shares: The Company shall reserve and keep available at all
        times
        during the term of the Plan such number of shares as shall be sufficient
        to
        satisfy the requirements of the Plan. If, after reasonable efforts, which
        efforts shall not include the registration of the Plan or Grants under the
        Securities Act, the Company is unable to obtain authority from any applicable
        regulatory body, which authorization is deemed necessary by legal counsel
        for
        the Company for the lawful issuance of shares hereunder, the Company shall
        be
        relieved of any liability with respect to its failure to issue and sell the
        shares for which such requisite authority was so deemed necessary unless
        and
        until such authority is obtained. 

      

      5.
        Stock
        Awards. 

      

      All
        or
        part of any Stock Award under the Plan may be subject to conditions established
        by the Board or the Committee, and set forth in a Stock Award Agreement,
        which
        may include, but are not limited to, continuous service with the Company,
        achievement of specific business objectives, increases in specified indices,
        attaining growth rates and other comparable measurements of Company performance.
        Such Awards may be based on Fair Market Value or other specified valuation.
        All
        Stock Awards will be made pursuant to the execution of a Stock Award Agreement.
        

      

      (a)
        Conditions and Restrictions. Shares of Stock which Participants may receive
        as a
        Stock Award under a Stock Award Agreement may include such restrictions as
        the
        Board or Committee, as applicable, shall determine, including restrictions
        on
        transfer, repurchase rights, right of first refusal, and forfeiture provisions.
        When transfer of Stock is so restricted or subject to forfeiture provisions
        it
        is referred to as "Restricted Stock." Further, with Board or Committee approval,
        Stock Awards may be deferred, either in the form of installments or a future
        lump sum distribution. The Board or Committee may permit selected Participants
        to elect to defer distributions of Stock Awards in accordance with procedures
        established by the Board or Committee to assure that such deferrals comply
        with
        applicable requirements of the Code including, at the choice of Participants,
        the capability to make further deferrals for distribution after retirement.
        Any
        deferred distribution, whether elected by the Participant or specified by
        the
        Stock Award Agreement or by the Board or Committee, may require the payment
        be
        forfeited in accordance with the provisions of Section 5(c). Dividends or
        dividend equivalent rights may be extended to and made part of any Stock
        Award,
        subject to such terms, conditions and restrictions as the Board or Committee
        may
        establish. 

      

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      (b)
        Cancellation and Rescission of Grants. Unless the Stock Award Agreement
        specifies otherwise, the Board or Committee, as applicable, may cancel any
        unvested or deferred Grants at any time if the Participant is not in compliance
        with all other applicable provisions of the Stock Award Agreement, the Plan
        and
        with the following conditions: 

      

      (i)
        A
        Participant shall not render services for any organization or engage directly
        or
        indirectly in any business which, in the judgment of the chief executive
        officer
        of the Company or other senior officer designated by the Board or Committee,
        is
        or becomes competitive with the Company, or which organization or business,
        or
        the rendering of services to such organization or business, is or becomes
        otherwise prejudicial to or in conflict with the interests of the Company.
        For
        Participants whose engagement has terminated, the judgment of the chief
        executive officer shall be based on the Participant's position and
        responsibilities while employed by the Company, the Participant's
        post-engagement responsibilities and position with the other organization
        or
        business, the extent of past, current and potential competition or conflict
        between the Company and the other organization or business, the effect on
        the
        Company's customers, suppliers and competitors and such other considerations
        as
        are deemed relevant given the applicable facts and circumstances. A Participant
        who has retired shall be free, however, to purchase as an investment or
        otherwise, stock or other securities of such organization or business so
        long as
        they are listed upon a recognized securities exchange or traded
        over-the-counter, and such investment does not represent a substantial
        investment to the Participant or a greater than five percent (5%) equity
        interest in the organization or business. 

      

      (ii)
        A
        Participant shall not, without prior written authorization from the Company,
        disclose to anyone outside the Company, or use in other than the Company's
        business, any confidential information or material relating to the business
        of
        the Company, acquired by the Participant either during or after engagement
        with
        the Company. 

      

      (iii)AParticipant
        shall disclose promptly and assign to the Company all right, title and interest
        in any invention or idea, patentable or not, made or conceived by the
        Participant during engagement by the Company, relating in any manner to the
        actual or anticipated business, research or development work of the Company
        and
        shall do anything reasonably necessary to enable the Company to secure a
        patent
        where appropriate in the United States and in foreign countries. 

      

      (iv)
        Upon
        exercise, payment or delivery pursuant to a Grant, the Participant shall
        certify
        on a form acceptable to the Committee that he or she is in compliance with
        the
        terms and conditions of the Plan. 

      

      (c)
        Nonassignability. 

      

      (i)
        Except pursuant to Section 5(e)(iii) and except as set forth in Section
        5(d)(ii), no Grant or any other benefit under the Plan shall be assignable
        or
        transferable, or payable to, anyone other than the Participant to whom it
        was
        granted. 

      

      (ii)
        Where a Participant terminates engagement and retains a Grant pursuant to
        Section 5(e)(ii) in order to assume a position with a governmental, charitable
        or educational institution, the Board or Committee, in its discretion and
        to the
        extent permitted by law, may authorize a third party (including but not limited
        to the trustee of a "blind" trust), acceptable to the applicable governmental
        or
        institutional authorities, the Participant and the Board or Committee, to
        act on
        behalf of the Participant with regard to such Awards. 

      

      (d)
        Termination of Engagement. If the engagement or service to the Company of
        a
        Participant terminates, other than pursuant to any of the following provisions
        under this Section 5(e), all unvested or deferred Stock Awards shall be
        cancelled immediately, unless the Stock Award Agreement provides otherwise:
        

      

      (i)
        Retirement Under a Company Retirement Plan. When a Participant's engagement
        terminates as a result of retirement in accordance with the terms of a Company
        retirement plan, the Board or Committee may permit Stock Awards to continue
        in
        effect beyond the date of retirement in accordance with the applicable Grant
        Agreement and vesting of any such Grants may be accelerated. 

      

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      (ii)
        Rights in the Best Interests of the Company. When a Participant resigns from
        the
        Company and, in the judgment of the Board or Committee, the acceleration
        and/or
        continuation of outstanding Stock Awards would be in the best interests of
        the
        Company, the Board or Committee may (i) authorize, where appropriate, the
        acceleration and/or continuation of all or any part of Grants issued prior
        to
        such termination and (ii) permit the vesting of such Grants for such period
        as
        may be set forth in the applicable Grant Agreement, subject to earlier
        cancellation pursuant to Section 8 or at such time as the Board or Committee
        shall deem the continuation of all or any part of the Participant's Grants
        are
        not in the Company's best interest. 

      

      (iii)
        Death or Disability of a Participant. 

      

      (1)
        In
        the event of a Participant's death, the Participant's estate or beneficiaries
        shall have a period up to the expiration date specified in the Grant Agreement
        within which to receive or exercise any outstanding Grant held by the
        Participant under such terms as may be specified in the applicable Grant
        Agreement. Rights to any such outstanding Grants shall pass by will or the
        laws
        of descent and distribution in the following order: (a) to beneficiaries
        so
        designated by the Participant; if none, then (b) to a legal representative
        of
        the Participant; if none, then (c) to the persons entitled thereto as determined
        by a court of competent jurisdiction. Grants so passing shall be made at
        such
        times and in such manner as if the Participant were living. 

      

      (2)
        In
        the event a Participant is deemed by the Board or Committee to be unable
        to
        perform his or her usual duties by reason of mental disorder or medical
        condition which does not result from facts which would be grounds for
        termination for cause, Grants and rights to any such Grants may be paid to
        the
        Participant, if legally competent, or a committee or other legally designated
        guardian or representative if the Participant is legally incompetent by virtue
        of such disability. 

      

      (3)
        After
        the death or disability of a Participant, the Board or Committee may in its
        sole
        discretion at any time (1) terminate restrictions in Grant Agreements; (2)
        accelerate any or all installments and rights; and (3) instruct the Company
        to
        pay the total of any accelerated payments in a lump sum to the Participant,
        the
        Participant's estate, beneficiaries or representative; notwithstanding that,
        in
        the absence of such termination of restrictions or acceleration of payments,
        any
        or all of the payments due under the Grant might ultimately have become payable
        to other beneficiaries. 

      

      (4)
        In
        the event of uncertainty as to interpretation of or controversies concerning
        this Section 5, the determinations of the Board or Committee, as applicable,
        shall be binding and conclusive. 

      

      6.
        Investment Intent. All Grants under the Plan are intended to be exempt from
        registration under the Securities Act provided by Rule 701 thereunder. Unless
        and until the sale and issuance of Stock subject to the Plan are registered
        under the Securities Act or shall be exempt pursuant to the rules promulgated
        thereunder, each Grant under the Plan shall provide that the purchases or
        other
        acquisitions of Stock thereunder shall be for investment purposes and not
        with a
        view to, or for resale in connection with, any distribution thereof. Further,
        unless the issuance and sale of the Stock have been registered under the
        Securities Act, each Grant shall provide that no shares shall be purchased
        upon
        the exercise of the rights under such Grant unless and until (i) all then
        applicable requirements of state and federal laws and regulatory agencies
        shall
        have been fully complied with to the satisfaction of the Company and its
        counsel, and (ii) if requested to do so by the Company, the person exercising
        the rights under the Grant shall (i) give written assurances as to knowledge
        and
        experience of such person (or a representative employed by such person) in
        financial and business matters and the ability of such person (or
        representative) to evaluate the merits and risks of receiving the Stock as
        compensation, and (ii) execute and deliver to the Company a letter of investment
        intent and/or such other form related to applicable exemptions from
        registration, all in such form and substance as the Company may require.
        If
        shares are issued upon exercise of any rights under a Grant without registration
        under the Securities Act, subsequent registration of such shares shall relieve
        the purchaser thereof of any investment restrictions or representations made
        upon the exercise of such rights. 

      

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      7.
        Amendment, Modification, Suspension or Discontinuance of the Plan. The Board
        may, insofar as permitted by law, from time to time, with respect to any
        shares
        at the time not subject to outstanding Grants, suspend or terminate the Plan
        or
        revise or amend it in any respect whatsoever, except that without the approval
        of the shareholders of the Company, no such revision or amendment shall (i)
        increase the number of shares subject to the Plan, (ii) decrease the price
        at
        which Grants may be granted, (iii) materially increase the benefits to
        Participants, or (iv) change the class of persons eligible to receive Grants
        under the Plan; provided, however, no such action shall alter or impair the
        rights and obligations under any Stock Award outstanding as of the date thereof
        without the written consent of the Participant thereunder. No Grant may be
        issued while the Plan is suspended or after it is terminated, but the rights
        and
        obligations under any Grant issued while the Plan is in effect shall not
        be
        impaired by suspension or termination of the Plan. 

      

      In
        the
        event of any change in the outstanding Stock by reason of a stock split,
        stock
        dividend, combination or reclassification of shares, recapitalization, merger,
        or similar event, the Board or the Committee may adjust proportionally (a)
        the
        number of shares of Stock (i) reserved under the Plan, (ii) covered by
        outstanding Stock Awards; (b) the Stock prices related to outstanding Grants;
        and (c) the appropriate Fair Market Value and other price determinations
        for
        such Grants. In the event of any other change affecting the Stock or any
        distribution (other than normal cash dividends) to holders of Stock, such
        adjustments as may be deemed equitable by the Board or the Committee, including
        adjustments to avoid fractional shares, shall be made to give proper effect
        to
        such event. In the event of a corporate merger, consolidation, acquisition
        of
        property or stock, separation, reorganization or liquidation, the Board or
        the
        Committee shall be authorized to issue or assume stock options, whether or
        not
        in a transaction to which Section 424(a) of the Code applies, and other Grants
        by means of substitution of new Grant Agreements for previously issued Grants
        or
        an assumption of previously issued Grants. 

      

      8.
        Tax
        Withholding. The Company shall have the right to deduct applicable taxes
        from
        any Grant payment and withhold, at the time of delivery or exercise of Stock
        Awards or vesting of shares under such Grants, an appropriate number of shares
        for payment of taxes required by law or to take such other action as may
        be
        necessary in the opinion of the Company to satisfy all obligations for
        withholding of such taxes. If Stock is used to satisfy tax withholding, such
        stock shall be valued based on the Fair Market Value when the tax withholding
        is
        required to be made. 

      

      9.
        Availability of Information. During the term of the Plan and any additional
        period during which a Grant granted pursuant to the Plan shall be payable,
        the
        Company shall make available, not later than one hundred and twenty (120)
        days
        following the close of each of its fiscal years, such financial and other
        information regarding the Company as is required by the bylaws of the Company
        and applicable law to be furnished in an annual report to the shareholders
        of
        the Company. 

      

      10.
        Notice. Any written notice to the Company required by any of the provisions
        of
        the Plan shall be addressed to the chief personnel officer or to the chief
        executive officer of the Company, and shall become effective when it is received
        by the office of the chief personnel officer or the chief executive officer.
        

      

      11.
        Indemnification of Board. In addition to such other rights or indemnifications
        as they may have as directors or otherwise, and to the extent allowed by
        applicable law, the members of the Board and the Committee shall be indemnified
        by the Company against the reasonable expenses, including attorneys' fees,
        actually and necessarily incurred in connection with the defense of any claim,
        action, suit or proceeding, or in connection with any appeal thereof, to
        which
        they or any of them may be a party by reason of any action taken, or failure
        to
        act, under or in connection with the Plan or any Grant granted thereunder,
        and
        against all amounts paid by them in settlement thereof (provided such settlement
        is approved by independent legal counsel selected by the Company) or paid
        by
        them in satisfaction of a judgment in any such claim, action, suit or
        proceeding, except in any case in relation to matters as to which it shall
        be
        adjudged in such claim, action, suit or proceeding that such Board or Committee
        member is liable for negligence or misconduct in the performance of his or
        her
        duties; provided that within sixty (60) days after institution of any such
        action, suit or Board proceeding the member involved shall offer the Company,
        in
        writing, the opportunity, at its own expense, to handle and defend the same.
        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      12.
        Governing Law. The Plan and all determinations made and actions taken pursuant
        hereto, to the extent not otherwise governed by the Code or the securities
        laws
        of the United States, shall be governed by the law of the State of Delaware
        and
        construed accordingly. 

      

      13.
        Termination Dates. The Plan shall terminate ten years later, subject to earlier
        termination by the Board pursuant to Section 7. 

      

      INFINIUM
        LABS, INC. 

      a
        Delaware corporation 

      

      By:
        /s/
        Timothy Roberts

      

      Its:
        Chief Executive Officer

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