Document:

EXHIBIT
      10.1

     

    MARKETING,
      SALES and DISTRIBUTION AGREEMENT

     

    Between

     

    LABORATORIES
      DOLIAGE and CORONADO INDUSTRIES

     

    

    

    THIS
      AGREEMENT made and entered into this 21st day of April 2006 (hereinafter
      referred to as “Effective Date”), by and between, Coronado Industries, Inc.
      having its headquarters at 16857 E. Saguaro Blvd., Fountain Hills, Arizona
      85268, its subsidiaries, affiliates and partners (hereinafter Coronado
      Industries referred to as “CI”), and Laboratoires DOLIAGE having a place of
      business located at 81 rue de Verdun, 92150 Suresnes, France, (hereinafter
      referred to as “DOLIAGE”).

     

    WITNESSETH

     

    WHEREAS,
      CI is
      engaged in the distribution and sale of a patented Pneumatic Trabeculoplasty
      (PNT) device as described on Schedule A (hereinafter called the
“Products”).

     

    WHEREAS
      DOLIAGE
      is engaged in the business of marketing, selling and distributing ophthalmic
      products within France (hereinafter referred to as “TERRITORY”).

     

    WHEREAS
      DOLIAGE
      has expressed an interest in marketing, selling and distributing CI's Pneumatic
      Trabeculoplasty device (hereinafter referred to as “PNT”) which is composed of
      CI's proprietary PNT vacuum controller and CI's patented PNT fixation ring
      (hereinafter referred to as “PRODUCTS”)

     

    NOW
      THEREFORE
      in
      consideration of the mutual covenants herein contained, and other good and
      valuable consideration, it is mutually agreed as follows:

     

    
      	
              1.

            	
              APPOINTMENT
                AND ACCEPTANCE

            

    

     

    
      	
               

            	
              1.1.

            	
              CI
                hereby appoints DOLIAGE as CI's exclusive partner in the Territory.
                Exclusive partner in this Section 1.1 shall mean (i) that CI grants
                DOLIAGE the exclusive right to promote, market, sell and distribute
                the
                Products in the Territory under CI's Brand name(s) and Trademark(s)
                and
                that (ii) that CI shall not appoint any other party than DOLIAGE
                to
                promote, market, sell and distribute the Products in the
                Territory

            

    

     

    
      	
               

            	
              1.2.

            	
              CI
                hereby grants DOLIAGE rights, without the right to sublicense, to
                use CI's
                patents, listed in Schedule A within the Territory for the sole purposes
                of carrying out DOLIAGE's obligations under this AGREEMENT. DOLIAGE
                agrees
                to exercise these rights only as are necessary to meet its obligations
                to
                promote, market, sell or distribute the Products in the Territory
                under
                this Agreement. DOLIAGE agrees not use these rights to promote, market,
                sell or distribute competitive product(s) within the Territory. CI
                agrees
                not to grant rights under the patents listed in Schedule A which
                would
                allow a competitor to promote, market, sell or distribute a competing
                medical device for the treatment of primary open angle glaucoma or
                ocular
                hypertension within the Territory. Passive sales by other distributors
                within the Territory and sales on part of the customers of CI shall
                not be
                restricted by this provision

            

    

    ____________

    Confidential
      treatment has been requested with respect to certain portions of this
      exhibit. Omitted portions have been filed separately with the Securities and
      Exchange Commission.  This exhibit omits the information subject to the
      confidentiality request. Omissions are designated as [ *
      ].

     

    

    

    

    
      
         

      

      
        1/17

        
          

        

      

      
         

      

    

    

     

    
      	
               

            	
              1.3.

            	
              DOLIAGE
                accepts such appointment and agrees to use its commercially reasonable
                efforts to promote, develop and increase sales of the Products within
                the
                Territory. Without limiting the generality of the foregoing, DOLIAGE
                shall:

            

    

     

    
      	
               

            	
              1.3.1.

            	
              develop
                and distribute to the best advantage of the Products such literature
                and
                other advertising material as may be agreed to by CI and will not
                use or
                release any advertising or promotional materials (including, without
                limitation, labels, packages, circulars, and advertisements) without
                the
                prior approval of CI. The consent of CI shall not be unreasonably
                withheld.

            

    

     

    
      	
               

            	
              1.3.2.

            	
              solicit
                prospective purchasers who may specify or utilize the
                Products;

            

    

     

    
      	
               

            	
              1.3.3.

            	
              shall
                not promote or sell any other product or other product lines which
                are a
                medical device indicated in the non-surgical treatment of primary
                open
                angle glaucoma or ocular
                hypertension.

            

    

     

    
      	
               

            	
              1.3.4.

            	
              take
                no action which might impair the goodwill or reputation of CI or
                any of
                its affiliated companies or of the
                Products;

            

    

     

    
      	
               

            	
              1.3.5.

            	
              refrain
                from making quotations or writing letters under the name of CI or
                any of
                its affiliates. The name of CI or its subsidiaries shall not appear
                on
                stationery used by DOLIAGE, except as a marginal note showing for
                example
                “Distributor for Coronado
                Industries”;

            

    

     

    
      	
               

            	
              1.3.6.

            	
              interface
                with customers and potential customers on behalf of CI for inquiries
                with
                respect to the Products and use of the
                Products;

            

    

     

    
      	
               

            	
              1.3.7.

            	
              not
                make claims with respect to indications for the Products that are
                not
                approved by the appropriate Health Authority or other appropriate
                regulatory body;

            

    

     

    
      	
               

            	
              1.3.8.

            	
              purchase
                sufficient quantities of the Products from CI so as to be able to
                maintain
                an adequate supply for resale of the
                Products;

            

    

     

    
      	
               

            	
              1.3.9.

            	
              comply
                with all applicable European and French laws and regulations with
                regard
                to the promotion, marketing, sale and distribution of the Products,
                including any reporting requirements in regards to complaints or
                incidents;

            

    

     

    
      	
               

            	
              1.4.

            	
              promptly
                report to CI, or its European representative which is
                currently

               

                  Donowa
                Consulting Srl

                  Piazza
                Albania 10

                  00153
                Rome, Italy

               

               

              all
                complaints, incidents or problems it receives relating to the
                Products;

            

    

     

    
      	
               

            	
              1.5.

            	
              follow
                all CI marketing and promotion
                policies.

            

    

     

    
      	
               

            	
              1.6.

            	
              handle
                and store all Products in accordance with French and European laws
                and the
                labeling and instructions for the
                Products.

            

    

     

     

    

    

    

    
      
         

      

      
        2/17

        
          

        

      

      
         

      

    

    

     

    
      	
               

            	
              1.7.

            	
              CI
                agrees to support DOLIAGE in the promotion, marketing, sale, distribution
                and/or application for reimbursement of the Products in the Territory
                and
                the technical training for the employees of DOLIAGE. CI may decide,
                at its
                sole discretion, whether such support is possible for and available
                within
                CI.

            

    

     

    
      	
              2.

            	
              SUPPLY
                PRICE

            

    

     

    
      	
               

            	
              2.1.

            	
              The
                Supply Price of the Products to DOLIAGE shall be as outlined
                below;

            

    

     

    
      	
               

            	
              2.1.1.

            	
              PNT
                controllers at
                [ * ]
                per controller for the first two years of the AGREEMENT. For years
                three
                (3) and four (4) the price will be
                [ * ]
                per controller. For year five (5) until the end of the original AGREEMENT
                the costs will be
                [ * ]
                per controller.

            

    

     

    
      	
               

            	
              2.1.2.

            	
              [
                * ]
                per box of 100 rings. Each ring is individually packaged in a sterile
                sachet with current labeling.

            

    

     

    
      	
               

            	
              2.2.

            	
              CI
                will arrange for shipment of the Products from CI's manufacturing
                facility
                to DOLIAGE' warehouse in France. The cost of shipping the Products
                from
                CI's distribution facility to DOLIAGE's central receiving facility
                in
                France will be the responsibility of
                CI.

            

    

     

    
      	
               

            	
              2.3.

            	
              Payment
                under Clause 2.11 and 2.22 shall be Net 45 days upon delivery of
                goods to
                DOLIAGES' facility.

            

    

     

    
      	
               

            	
              2.4.

            	
              The
                above Supply Prices reflect the current PNT controller and PNT ring
                design
                and manufacturing processes. In the event the United States Food
                and Drug
                Administration (USFDA) or any other competent governmental health
                authority (HA) requires modifications to the PNT controller and/or
                the PNT
                ring in order to allow continuing sale within the Territory which
                would
                lead to an increase in the manufacturing costs to CI of more
                than
                [ * ]
                ,
                then CI would supply proper documentation supporting this increase,
                and
                the Parties agree to negotiate a new Supply Price. If DOLIAGE was
                to
                challenge the price increase under this clause, DOLIAGE could have
                an
                auditor give an independent confirmation. If the auditor found the
                increase was greater than or equal to
                [ * ]
                then DOLIAGE would accept the increase and pay for the audit. If
                the
                increase was less than
                [ * ]
                then the price would remain where it was and CI would pay for the
                audit.

            

    

     

    
      	
               

            	
              2.5.

            	
              All
                Supply Prices quoted shall be understood as excluding VAT at the
                statutory
                tax rate or custom duties, to the extent payable. All taxes and duties
                due
                on the Products are the responsibility of
                DOLIAGE.

            

    

     

    
      	
               

            	
              2.6.

            	
              DOLIAGE
                will not sell materials which are provided to them free of
                charge.

            

    

     

    
      	
               

            	
              2.7.

            	
              DOLIAGE
                may return goods, including vacuum units which may require service,
                to CI
                only in accordance with CI's returned goods policy. Used PNT rings
                cannot
                be returned to CI. In general CI's returned goods policy allows for
                the
                return of goods which are received damaged (Section 16 below) from
                CI.
                Such damaged goods may be returned to CI at CI's expense. CI will
                provide
                shipping instructions for such returns. All other returned goods
                will be
                at the cost of DOLIAGE and such costs may be charged against the
                PPL
                (Section 5.2.2.2).

            

    

    ____________

    * 
      Confidential treatment has been requested with respect to certain portions
      of this exhibit. Omitted portions have been filed separately with the Securities
      and Exchange Commission.  This exhibit omits the information subject to the
      confidentiality request. Omissions are designated as [ * ].

     

    
      
         

      

      
        3/17

        
          

        

      

      
         

      

    

    

     

    
      	
               

            	
              2.8.

            	
              CI
                will warrant the controller for a period of
                [ * ].
                DOLIAGE will coordinate return of equipment under warranty, as per
                the
                instructions of CI, for repair or replacement. The costs of shipping
                the
                equipment under warranty from DOLIAGE's facility to CI's facility
                will be
                the responsibility of CI.

            

    

     

    
      	
               

            	
              2.9.

            	
              CI
                will attempt to repair equipment, which is out of warranty, at the
                request
                of DOLIAGE. DOLIAGE will be responsible for return shipping of the
                out of
                warranty equipment to CI. CI will provide a cost estimate for the
                repair
                and will only proceed if agreed to by DOLIAGE. The cost of shipping
                repaired equipment back to DOLIAGE will be born by DOLIAGE and all
                costs
                incurred by DOLIAGE, which are not reimbursed by DOLIAGE's customers,
                associated with repair of out of warranty equipment can be charged
                against
                the PPL

            

    

     

    
      	
               

            	
              2.10.

            	
              CI
                will be responsible for the production of the Products, including
                sourcing
                of raw materials, CI guarantees that all Products shipped to DOLIAGE
                will
                be free from defects and in compliance with relevant regulatory and
                governmental requirements, including compliance with the requirements
                of
                an EU 2a device classification and applicable cGMP Rules and will
                have
                sufficient expiry dating to allow for distribution through normal
                distribution channels.

            

    

     

    
      	
              3.

            	
              SALES
                OF PRODUCT OUTSIDE OF
                TERRITORY

            

    

     

    
      	
               

            	
              3.1.

            	
              DOLIAGE
                shall not actively sell the PRODUCTS in territories or to customers
                groups
                which (i) CI allocated exclusively to a third party or (ii) CI reserves
                for itself or for a company affiliated with
                CI.

            

    

     

    
      	
               

            	
              3.2.

            	
              Passive
                sales outside the TERRITORY and sales on part of the customers of
                DOLIAGE
                shall not be restricted by this
                provision.

            

    

     

    
      	
              4.

            	
              PROFIT
                and LOSS CALCULATIONS

            

    

     

    
      	
               

            	
              4.1.

            	
              A
                separate PRODUCT Profit and Loss statement (herein referred to as
                the
                “PPL”) will be established and maintained under this AGREEMENT. All
                charges against and income credited to the PPL will be in line with
                the
                following guidelines. In the event that a specific charge or income
                item
                is not addressed below the PARTIES will discuss, in good faith, how
                to
                incorporate the specific item so that it is consistent and in the
                spirit
                of the guidelines outlined below.

            

    

     

    
      	
               

            	
              4.1.1.

            	
              [
                * ]
                in
                support of the PRODUCTS within the TERRITORY will be born by DOLIAGE
                and
                included in the PPL.

            

    

     

    
      	
               

            	
              4.1.2.

            	
              [
                * ]
                will be credited towards the PPL.

            

    

     

    
      	
               

            	
              4.1.3.

            	
              DOLIAGE
                will use best efforts to maximize the profits from sales of the PRODUCTS
                which is credited to the PPL

            

    

     

    
      	
               

            	
              4.1.4.

            	
              DOLIAGE
                will not purposely offer discounts on PRODUCTS within the TERRITORY
                in
                order to increase sales or achieve acceptance of other products which
                DOLIAGE or one of its partners sell without the written approval
                of CI. In
                such situations the PARTIES will agree to what additional compensation
                will be credited to CI or the PPL in consideration of the discounts
                that
                were offered on the PRODUCTS within the
                TERRITORY.

            

    

    ____________

    * 
      Confidential treatment has been requested with respect to certain portions
      of this exhibit. Omitted portions have been filed separately with the Securities
      and Exchange Commission.  This exhibit omits the information subject to the
      confidentiality request. Omissions are designated as [ * ].

    
 

    
      
         

      

      
        4/17

        
          

        

      

      
         

      

    

    

     

    
      	
               

            	
              4.1.5.

            	
              CI
                will share the cost of a clinical trial
                [ * ],
                up to a maximum contribution of [
                * ]
                per year during the first two years of the contract for a total
                contribution not to exceed
                [ * ]
                .
                Payment will be made at the end of each calendar year upon receipt
                of an
                invoice with sufficient detail to explain the actual costs incurred
                in
                performing the trial. Any payments made by CI to DOLIAGE in support
                of the
                clinical trial will be accounted for in the P&L and accounted for in
                the calculation of any profit sharing (for example as income or an
                expense
                offset in the collaboration) so as to avoid an inappropriate charge
                against the calculation of the profit sharing. The actual schedule
                of the
                clinical trial being beyond DOLIAGE's control, any delay encountered
                while
                undertaking the trial will be reported by DOLIAGE to CI in order
                to extend
                accordingly the two years time frame originally planned for CI
                participation to the cost.

            

    

     

    
      	
               

            	
              4.2.

            	
              The
                PARTIES shall agree on the marketing plan and develop a mutually
                agreed
                upon budget for marketing activities related to the
                PRODUCTS

            

    

     

    
      	
               

            	
              4.2.1.

            	
              DOLIAGE
                will be responsible for all marketing costs for the PRODUCTS within
                the
                TERRITORY.

            

    

     

    
      	
               

            	
              4.2.2.

            	
              All
                external costs
                [ * ]
                can be charged against the PPL at full
                costs

            

    

     

    
      	
               

            	
              4.2.3.

            	
              [
                * ]

            

    

     

    
      	
               

            	
              4.3.

            	
              DOLIAGE
                will build and maintain a sales organization commensurate with the
                sales
                potential of the Products in the Territory and employ sales personnel
                trained with sufficient product knowledge to sell the Products adequately
                within the Territory;

            

    

     

    
      	
               

            	
              4.3.1.

            	
              [
                * ]

            

    

     

    
      	
               

            	
              4.3.2.

            	
              [
                * ]

            

    

     

    
      	
               

            	
              4.4.

            	
              [
                * ]

            

    

     

    
      	
               

            	
              4.5.

            	
              [
                * ]

            

    

    ____________

    * 
      Confidential treatment has been requested with respect to certain portions
      of this exhibit. Omitted portions have been filed separately with the Securities
      and Exchange Commission.  This exhibit omits the information subject to the
      confidentiality request. Omissions are designated as [ * ].

     

    

    

    
      
         

      

      
        5/17

        
          

        

      

      
         

      

    

    

     

    
      	
              5.

            	
              PROFIT
                SHARING

            

    

     

    
      	
               

            	
              5.1.

            	
              Revenue
                sharing shall be based on a profit sharing model as outlined
                below.

            

    

     

    
      	
               

            	
              5.2.

            	
              Profit/loss
                from the sales of PRODUCTS will be calculated as
                follows;

            

    

     

    
      	
               

            	
              5.2.1.

            	
              [
                * ]

            

    

     

    
      	
               

            	
              5.2.1.1.

            	
              [
                * ] 

            

    

     

    
      	
               

            	
              5.2.1.2.

            	
              [
                * ]

            

    

     

    
      	
               

            	
              5.2.2.

            	
              [
                * ]

            

    

     

    
      	
               

            	
              5.2.2.1.

            	
              [
                * ]

            

    

    

    
      	
               

            	
              5.2.2.2.

            	
              [
                * ]

            

    

    

    
      	
               

            	
              5.2.2.3.

            	
              [
                * ]

            

    

    

    
      	
               

            	
              5.2.2.4.

            	
              [
                * ]

            

    

    

    
      	
               

            	
              5.2.2.5.

            	
              [
                * ]

            

    

    

    
      	
               

            	
              5.2.2.6.

            	
              [
                * ]

            

    

    

    
      	
               

            	
              5.2.2.7.

            	
              [
                * ]

            

    

    

    
      	
               

            	
              5.2.2.8.

            	
              [
                * ]

            

    

     

    
      	
               

            	
              5.2.3.

            	
              [
                * ] 

            

    

     

    
      	
               

            	
              5.3.

            	
              [
                * ]

            

    

     

    
      	
               

            	
              5.4.

            	
              [
                * ]

            

    

     

    
      	
               

            	
              5.5.

            	
              [
                * ]

            

    

     

    
      	
               

            	
              5.6.

            	
              The
                budget year for the PPL will coincide with DOLIAGE's budget year,
                which
                currently runs from October 1st
                to
                September 30
                th
                .

            

    

     

    
      	
               

            	
              5.7.

            	
              DOLIAGE
                will submit the final detailed PPL for the prior budget year, from
                which
                the profit/loss will be calculated, by October 31
                st
                of
                the current budget year. For example, the final detailed PPL for
                the
                budget year October 1, 2006 to September 30, 2007 will be submitted
                to CI
                by October 31, 2007. CI will have the right to review the detailed
                PPL and
                if they disagree with specific aspects of PPL can request that they
                be
                adjusted. For the budget period from contract initiation until September
                30, 2006 the PPL will be prepared and agreed to by May 30,
                2006.

            

    

    ____________

    * 
      Confidential treatment has been requested with respect to certain portions
      of this exhibit. Omitted portions have been filed separately with the Securities
      and Exchange Commission.  This exhibit omits the information subject to the
      confidentiality request. Omissions are designated as [ * ].

    
 

    
      
         

      

      
        6/17

        
          

        

      

      
         

      

    

    

     

    
      	
               

            	
              5.8.

            	
              In
                the event that the PARTIES cannot agreed on whether a specific charge
                or
                income item should be included on the PPL, the PARTIES will have
                an
                independent auditor, acceptable to both PARTIES with such acceptance
                not
                to be unreasonably withheld, review the PPL and render a decision
                on
                whether the charge is valid. The PARTIES will share the costs of
                the
                audit

            

    

     

    
      	
               

            	
              5.9.

            	
              CI
                can request once a year that an independent auditor, acceptable to
                both
                PARTIES with such acceptance not to be unreasonably withheld, review
                the
                entire PPL and all supporting documentation to verify that the PPL
                was
                prepared in compliance with this AGREEMENT. If it is found that additional
                monies are owed CI as a result of the audit then DOLIAGE will pay
                the
                additional funds. If the amount of the additional monies owed CI
                is
                greater than 10% of the monies originally calculated in the PPL the
                costs
                of the external auditor will be borne by DOLIAGE otherwise the costs
                of
                the external auditor will be the responsibility of CI. DOLIAGE will
                provide its own resources for such audit at no cost. Reasonable advance
                notice should be given by CI of its intention to perform such an
                audit,
                and reasonable usage of DOLIAGE resources will be made, so as not
                to
                affect DOLIAGE's operation.

            

    

     

    
      	
               

            	
              5.10.

            	
              The
                PARTIES will use best efforts to finalize and close the PPL for the
                prior
                budget year by December 1st
                of
                the current budget year. For example, the PPL for the period October
                1
                st,
                2006, to September 30th, 2007 should be finalized and closed by December
                1
                st
                ,
                2007.

            

    

     

    
      	
               

            	
              5.11.

            	
              [
                * ]

            

    

     

    
      	
              6.

            	
              BUDGETS

            

    

     

    
      	
               

            	
              6.1.

            	
              DOLIAGE
                will prepare a budget in line with the Sales and Marketing plan agreed
                to
                by the PARTIES. The PARTIES must mutually agree and approve each
                annual
                budget by December 31
                st
                of
                the prior year. For example the annual budget for the period October
                1
                st
                2006 to September 30
                th
                2007 should be approved by December 31
                st
                ,
                2006.

            

    

     

    
      	
               

            	
              6.2.

            	
              If
                the PARTIES do not agree on the budget submitted by DOLIAGE the PARTIES
                will discuss in good faith such differences and utilize best efforts
                to
                reach agreement on the annual
                budget.

            

    

     

    
      	
              7.

            	
              FORECASTING

            

    

     

    
      	
               

            	
              7.1.

            	
              On
                the first day of each calendar quarter, DOLIAGE shall provide CI
                with a
                written rolling forecast of the requirement for the Products, per
                month,
                for the then current calendar quarter and the next 3 (three) calendar
                quarters. The forecast for the then current calendar quarter shall
                be
                binding, for the remaining calendar quarter's
                non-binding.

            

    

     

    
      	
               

            	
              7.2.

            	
              At
                least three (3) months in advance of the requested delivery date
                of the
                Products, DOLIAGE shall submit to CI a written purchase order for
                the
                desired quantities of the Products (hereinafter referred to as “Purchase
                Order”). All Purchase Order shall be firm and binding upon the Parties
                and
                shall bear the exact quantity ordered and the agreed upon delivery
                date.

            

    

    ____________

    * 
      Confidential treatment has been requested with respect to certain portions
      of this exhibit. Omitted portions have been filed separately with the Securities
      and Exchange Commission.  This exhibit omits the information subject to the
      confidentiality request. Omissions are designated as [ * ].

     

    
      
         

      

      
        7/17

        
          

        

      

      
         

      

    

    

     

    
      	
              8.

            	
              RELATIONSHIP
                OF THE PARTIES

            

    

     

    DOLIAGE
      shall be an independent contractor of CI. This Agreement does not create any
      employer-employee, agency, joint venture or partnership relationship between
      CI
      and DOLIAGE. DOLIAGE is not authorized or empowered to act as agent for CI
      for
      any purpose, except those specifically outlined in this AGREEMENT, and shall
      not
      on behalf of CI either enter into any contract, undertaking, or agreement of
      any
      kind whatever, or make any promise, warranty, or representation with respect
      to
      the Products other than those published by CI in the advertising and sales
      promotional material provided to DOLIAGE

     

    
      	
              9.

            	
              NOTICES

            

    

     

    Any
      notices will be sent via facsimile and by a recognized express mail
      carrier:

     

    
      	
              If
                to DOLIAGE:

            	
              Laboratories
                DOLIAGE 

            
	
               

            	
              81
                rue de Verdun, 

            
	
               

            	
              92150
                Suresnes, 

            
	
               

            	
              France 

            
	
               

            	
              Facsimile:
                (33) 1 41 38 29 55 

            
	
               

            	
              Attention:
                CEO 

            
	
               

            	
               

            
	
              If
                to CI: 

            	
              Coronado
                Industries 

            
	
               

            	
              16857
                Saguaro Blvd 

            
	
               

            	
              Fountain
                Hills, Arizona 85268 

            
	
               

            	
              USA

            
	
               

            	
              Attention:
                CEO

            
	
               

            	
              CC: Director
                of Operations

            
	
               

            	
              Facsimile
                +1 480 837 6870

            

    

     

    or
      to
      such other address as either Party may hereafter designate by notice to the
      other Party. The date of giving of any such notice shall be on the date received
      from an express mail carrier.

     

    
      	
              10.

            	
              FORCE
                MAJEURE

            

    

     

    Neither
      Party hereto will be liable to the other for its failure to perform hereunder
      due to act of God, accident, fire, flood, storm, riot, sabotage, explosion,
      strike, labor disturbance, national defense requirement, governmental law,
      ordinance, rule or regulation, whether valid or invalid, inability to obtain
      electricity or other type of energy, raw materials, labor, equipment or
      transportation, or any other contingency beyond its reasonable control which
      would make performance commercially impracticable. In the event of a shortage
      of
      Products, CI reserves the right to allocate its inventory of Products as it
      may
      determine in its sole discretion. Either Party may terminate this Agreement
      by
      giving notice in writing to the other Party should an event of force majeure
      continue for more than 6 (six) months.

     

    
      
         

      

      
        8/17

        
          

        

      

      
         

      

    

    

     

    
      	
              11.

            	
              TRADEMARKS
                AND PATENTS

            

    

     

    
      	
               

            	
              11.1.

            	
              CI
                will be responsible for registering and maintaining all applicable
                Patents
                within the Territory as listed in Schedule B (hereinafter referred
                to as
                “Patents”) relating to the Products in the Territory at CI's
                costs.

            

    

     

    
      	
               

            	
              11.2.

            	
              By
                virtue of the Agreement and DOLIAGE's performance hereunder, DOLIAGE
                shall
                acquire no interest in CI trademarks or corporate names, label designs
                or
                other identifying marks used to distinguish CI's Products. Except
                for
                undertaking such activities as are directly related to promoting
                the sale
                of the Product under this Agreement, DOLIAGE shall not make use of
                the
                name CI, or make use of any trademark or trade name which in the
                judgment
                of CI is confusingly similar thereto without the written consent
                of
                CI.

            

    

     

    
      	
               

            	
              11.3.

            	
              The
                Parties will use their best efforts to discover any infringement
                of any
                Patent, Trademark or corporate name of Coronado Industries and will
                promptly notify each other of any such infringement or wrongful use.
                Any
                Proprietary Information provided shall be and remain the property
                of CI,
                and CI will impose any conditions with respect thereto which it deems
                reasonably necessary to preserve the confidential nature thereof.
                DOLIAGE
                will retain all Proprietary Information in strict confidence as trade
                secrets of CI and will not disclose, or permit any employee or agent
                of
                DOLIAGE to disclose, any Proprietary Information to anyone without
                the
                prior written approval of CI, provided, however, that such disclosure
                may
                be made to any employee of DOLIAGE who has a reasonable need for
                access
                thereto. For the purpose of this Agreement, the term “Proprietary
                Information” shall mean all formulae, processes, and other information
                relating to the distribution, sale, and use of any Product which
                has been
                or may hereafter be furnished to DOLIAGE and which would not be available
                to the general public otherwise than through violation of this
                Agreement.

            

    

     

    
      	
               

            	
              11.4.

            	
              CI
                shall use its best efforts so that DOLIAGE will not incur any claim
                of
                patent infringement as a result of distribution of the Products within
                the
                Territory under this Agreement. If such claims arise, and are attributable
                to the actions of DOLIAGE allowed under this Agreement, CI will at
                its own
                costs use reasonable efforts to interfere and resolve the issue.
                DOLIAGE
                will notify CI immediately of any claims of patent infringement.
                Any
                liability for damages from an infringement as a direct result of
                the sale
                of the Products by DOLIAGE under the terms of this Agreement, will
                be the
                responsibility of CI. DOLIAGE will cooperate fully with CI to resolve
                and/or defend against any claim of infringement under this
                Agreement.

            

    

     

    
      	
               

            	
              11.5.

            	
              If
                DOLIAGE is aware of a patent infringement on its territory, DOLIAGE
                will
                inform CI, and CI will at its own cost take any action to protect
                the
                patent rights.

            

    

     

    
      	
               

            	
              11.6.

            	
              Upon
                the expiration or prior termination of this Agreement, DOLIAGE will
                exercise all necessary precautions to safeguard the secrecy of Proprietary
                Information and to prevent the unauthorized disclosure thereof, DOLIAGE
                will consult CI as to the procedures established by it for this purpose
                and will from time to time, if requested by CI, advise CI of the
                procedures which it then has in
                effect.

            

    

     

    
      	
              12.

            	
              REGISTRATIONS
                AND HEALTH AUTHORITY
                INTERACTIONS

            

    

     

    
      	
               

            	
              12.1.

            	
              CI,
                with the assistance of DOLIAGE, will be responsible for all interactions
                with the relevant Health Authorities (HA's), including but not limited
                to
                the Type 2a device classification filling of the Product and any
                maintenance of the Type 2a filling with the relevant
                authorities.

            

    

     

    
 

    
      
         

      

      
        9/17

        
          

        

      

      
         

      

    

    

     

    
      	
               

            	
              12.2.

            	
              DOLIAGE
                will bear the costs associated with any additional registration(s)
                with or
                applications to the relevant Health Authority(s) within in the Territory
                which are required to sell the
                Products.

            

    

     

    
      	
               

            	
              12.3.

            	
              DOLIAGE,
                as reasonably requested by CI, will assist, provide expertise and
                interact
                as required in dealing with the relevant HA's in the
                Territory.

            

    

     

    
      	
               

            	
              12.4.

            	
              CI
                and DOLIAGE agree that a Type 2a device classification is required
                to
                allow the sale of the Products in the Territory. CI agrees to supply
                DOLIAGE with Products meeting this classification and will not knowingly
                or negligently ship Products which does not meet this
                classification.

            

    

     

    
      	
              13.

            	
              CLINICAL
                TRIAL

            

    

     

    
      	
               

            	
              13.1.

            	
              DOLIAGE
                will be allowed to perform, in collaboration with CI, clinical trials
                in
                order to enhance the marketability of the PRODUCTS within the
                TERRITORY

            

    

     

    
      	
               

            	
              13.2.

            	
              The
                clinical trials will involve up to 2/4 centers and approximately
                100
                patients.

            

    

     

    
      	
               

            	
              13.3.

            	
              The
                protocols for the clinical trials will be approved by both Parties
                and
                respective Ethical Committees prior to initiation of the
                study.

            

    

     

    
      	
               

            	
              13.4.

            	
              The
                costs of performing the clinical trial will be born by DOLIAGE. CI
                will
                reimburse DOLIAGE as outlined Section 4.1.5
                above

            

    

     

    
      	
               

            	
              13.5.

            	
              DOLIAGE
                will have in place confidentiality agreements with all clinicians
                involved
                with the clinical trial. DOLIAGE will do its best to prevent any
                non-agreed dissemination regarding the clinical trial or its results
                without the prior consent of CI.

            

    

     

    
      	
               

            	
              13.6.

            	
              All
                information developed as part of the clinical trial will be considered
                as
                Confidential Information (as defined below under Section 14) and
                cannot be
                used for any other purpose by DOLIAGE other than to promote the Products
                in a way which is beneficial for the Product. In the event the AGREEMENT
                is terminated then all information collected under this Agreement,
                including the information gathered as part of the clinical trial
                will
                become the property of CI. DOLIAGE also acknowledges that it will
                not use
                any of the information obtained under this Agreement, including
                information obtained as part of the clinical trial, to promote another
                device which would compete with the
                PRODUCTS.

            

    

     

    
      	
              14.

            	
              TERM
                AND TERMINATON

            

    

     

    
      	
               

            	
              14.1.

            	
              The
                term of this Agreement shall be for a period of eight (8) years from
                the
                Effective Date of this Agreement (hereinafter referred to as “Initial
                Term”). Following the Initial Term outlined above, this Agreement will
                be
                automatically renewable on an annual basis, unless either Party notifies
                the other 6 months prior to expiration of the Initial Term, or each
                annual
                extension, of their intention not to
                renew.

            

    

     

     

    
      
         

      

      
        10/17

        
          

        

      

      
         

      

    

    

     

    
      	
               

            	
              14.2.

            	
              If
                DOLIAGE's cumulative losses, which will be calculated as their costs
                directly associated with the AGREEMENT less any monies from the envisioned
                profit share, over the first two years of the AGREEMENT exceed 150,000
                Euros DOLIAGE will have an option to request a renegotiation of the
                AGREEMENT and if CORONADO declines to terminate the
                AGREEMENT

            

    

     

    
      	
               

            	
              14.3.

            	
              CI
                shall have the option to terminate, upon ninety (90) days' written
                notice,
                if ownership or control (for example. greater than 50.01 % of the
                shares)
                of DOLIAGE is transferred to a third party, which is considered by
                CI to
                be detrimental for CI's interests. Either Party may terminate this
                Agreement if the other Party is adjudged bankrupt, files or has filed
                against it any petition under any bankruptcy or insolvency law, has
                a
                receiver appointed for its business or property, or makes a general
                assignment for the benefit of its
                creditors.

            

    

     

    
      	
               

            	
              14.4.

            	
              DOLIAGE
                hereby accords CI upon termination or expiration of this Agreement
                an
                option to repurchase from DOLIAGE all or any part of DOLIAGE' inventory
                of
                that Products, which DOLIAGE will not need in order to fulfill its
                delivery commitments towards its customers for commitments which
                can be
                documented were made prior to termination of expiration of this Agreement
                (hereinafter referred to as “Inventory Products”), at the price paid
                therefore by DOLIAGE (hereinafter referred to as “Repurchase Price”),
                pursuant to the following
                procedures:

            

    

     

    
      	
               

            	
              14.4.1.

            	
              Within
                five (5) days after the effective date of termination, DOLIAGE shall
                submit to CI a written schedule reflecting all Inventory Products
                then
                owned by or in DOLIAGE' possession. Said schedule shall identify
                each
                Inventory Product and shall indicate the quantity thereof on
                hand.

            

    

     

    
      	
               

            	
              14.4.2.

            	
              Within
                ten (10) days after the receipt of such schedule by CI, CI shall
                have the
                right to inspect the inventory reflected on such
                schedule.

            

    

     

    
      	
               

            	
              14.4.3.

            	
              Within
                five (5) days after completion of CI's inspection of said inventory,
                CI
                shall give written notice of its election to repurchase all or any
                part of
                the Inventory Products.

            

    

     

    
      	
               

            	
              14.4.4.

            	
              Upon
                receipt of said notice of repurchase, DOLIAGE shall forthwith deliver
                such
                Inventory Products as may be specified therein to a carrier designated
                by
                CI and at the costs of CI. Payment of the Repurchase Price as hereinabove
                provided shall be made by CI to DOLIAGE within five (5) days after
                the
                delivery of said Products to
                carrier.

            

    

     

    
      	
               

            	
              14.5.

            	
              Upon
                termination or expiration of this Agreement, DOLIAGE shall immediately
                cease to represent itself as an authorized distributor of CI with
                respect
                to the Products.

            

    

     

    
      	
               

            	
              14.6.

            	
              CI
                can elect, but will have no obligation, to provide additional product
                in
                order to allow DOLIAGE' to fulfill commitments towards its customers
                following termination or expiration of this
                Agreement.

            

    

     

    
      	
               

            	
              14.7.

            	
              The
                termination or expiration of this Agreement shall not release either
                Party
                from the obligation to pay any sum that may be owing to the other
                Party or
                operate to discharge any liability that had been incurred by either
                Party
                prior to any such termination.

            

    

     

     

    
      
         

      

      
        11/17

        
          

        

      

      
         

      

    

    

     

    
      	
               

            	
              14.8.

            	
              Failure
                by a Party to comply with any of its material obligations contained
                in
                this Agreement, including payment term obligations, shall entitle
                the
                non-defaulting Party to give to the defaulting Party written notice
                specifying the nature of the default and requiring the defaulting
                Party to
                make good such default. If such default is not cured within sixty
                (60)
                days after the receipt of such notice (or, if such default is not
                capable
                of being cured within such sixty (60) day period, within such amount
                of
                time as may be reasonably necessary to cure such breach, as long
                as the
                Defaulting Party is making diligent efforts to do so, except in the
                case
                of payment default, as to which the defaulting Party shall have only
                a
                sixty (60) day cure period), the non-defaulting Party shall be entitled
                immediately to terminate this Agreement by giving written notice
                to the
                defaulting Party. The right of a Party to terminate this Agreement,
                as
                hereinafter provided, shall not be affected in any way by its waiver
                or
                failure to take action with respect to any previous
                default.

            

    

     

    
      	
               

            	
              14.9.

            	
              The
                Parties may agree in writing, signed by both Parties, to terminate
                this
                Agreement in its entirety. In such an event, the Parties shall agree
                to
                the effects of such termination at that
                time.

            

    

     

    
      	
               

            	
              14.10.

            	
              If
                the PARTIES cannot agree on the annual budget as outlined under Clause
                6
                by November 15th
                of
                the prior year then either PARTY may elect to terminate this
                AGREEMENT.

            

    

     

    
      	
               

            	
              14.11.

            	
              In
                the event this AGREEMENT is terminated under clause 14.10 above then
                Clauses 14.4, 14.4.1, 14.4.2, 14.4.3, 14.4.4, 14.4.5, 14.5, 14.6
                and 14.7
                will apply.

            

    

     

    
      	
              15.

            	
              CONFIDENTIALITY

            

    

     

    A
      separate Confidentiality Agreement has been previously executed by the PARTIES
      and is incorporated by reference into this AGREEMENT

     

    
      	
              16.

            	
              ASSIGNMENT

            

    

     

    
      	
               

            	
              16.1.

            	
              This
                Agreement shall be binding upon the successors and assignees of CI
                and
                DOLIAGE.

            

    

     

    
      	
               

            	
              16.2.

            	
              Either
                Party may assign this Agreement to a wholly owned subsidiary or other
                entity in which the transferring Party has a majority share and
                operational control. In case of such an assignment, the assigning
                party
                will remain jointly and severally liable for all of its obligations
                under
                this Agreement.

            

    

     

    
      	
               

            	
              16.3.

            	
              This
                Agreement shall not be assignable by either Party to an independent
                third
                party, without the prior written consent of the other Party, such
                consent
                not to be unreasonably withheld.

            

    

     

    
      	
              17.

            	
              INDEMNIFICATION
                / DEFECTS OF THE PRODUCTS

            

    

     

    
      	
               

            	
              17.1.

            	
              CI
                will indemnify, defend and hold harmless DOLIAGE from any and all
                liability, loss, or damage DOLIAGE may suffer as a result of claims,
                demands, costs, or judgment against it arising from product liabilities
                of
                any kind under any jurisdiction provided that such product liability
                is
                not based on DOLIAGE' negligence in storing, maintaining, labeling,
                promoting or selling the Products or otherwise failing to comply
                with
                applicable laws and regulations and the terms of this Agreement.
                In the
                latter case, DOLIAGE will indemnify, defend and hold harmless CI
                from any
                and all liability, loss or damage CI may suffer as a result of such
                claims, demands, costs or judgments against
                it.

            

    

     

     

    
      
         

      

      
        12/17

        
          

        

      

      
         

      

    

    

     

    
      	
               

            	
              17.2.

            	
              For
                the duration of this Agreement, each Party will maintain, at each
                Party's
                own expense, insurance coverage from a reputable insurance carrier
                in the
                amount of a minimum of USD $1.0 million per incidence. Upon request
                of a
                Party, the other Party shall submit a copy of the respective certificate
                of insurance.

            

    

     

    
      	
               

            	
              17.3.

            	
              DOLIAGE
                shall inspect the delivered Products immediately following delivery
                by CI
                insofar it is practicable in the orderly course of business and notify
                apparent defects to CI within 14 days after their discovery. All
                other
                defects, such as hidden defects, will be notified by DOLIAGE within
                14
                days after their discovery.

            

    

     

    
      	
               

            	
              17.4.

            	
              If
                (i) the Products delivered by CI are agreed by the Parties to be
                defective
                and/or (ii) if it turns out and the Parties agree that the Products
                were
                damaged prior to receipt by DOLIAGE and/or (iii) the Parties agree
                that
                the Products do not have the agreed upon quality, DOLIAGE shall have
                the
                right to request defect-free goods as replacement. In the event that
                CI
                cannot deliver within 45 days following notification by DOLIAGE and
                agreement between the Parties that the Products are defective as
                described
                under (i) - (iii) above DOLIAGE will have the right to cancel the
                respective individual orders involving the above goods and receive
                a
                refund of any monies paid to CI. Removal and return deliveries of
                defective Products shall be effected at CI ́s costs and
                risk.

            

    

     

    
      	
              18.

            	
              MISCELLANEOUS

            

    

     

    
      	
               

            	
              18.1.

            	
              The
                provisions of this Agreement shall be construed and the performance
                thereof governed in accordance with the laws of the State of New
                York,
                USA.

            

    

     

    
      	
               

            	
              18.2.

            	
              All
                sub-distributors selected by DOLIAGE must be pre-approved by CI.
                The
                consent of CI shall not be unreasonably withheld. In the event that
                DOLIAGE becomes aware that a sub-distributor is in violation of any
                part
                of this Agreement DOLIAGE will immediately inform CI and will take
                all
                necessary actions to ensure compliance with this Agreement by the
                sub-distributor.

            

    

     

    
      	
               

            	
              18.3.

            	
              The
                article headings in this Agreement are inserted for convenience only
                and
                shall not be deemed to be part of this Agreement or considered in
                construing this Agreement.

            

    

     

    
      	
               

            	
              18.4.

            	
              This
                Agreement constitutes the entire understanding between the Parties
                and
                supersedes any previous written or oral agreements or understandings
                between the Parties.

            

    

     

    
      	
               

            	
              18.5.

            	
              No
                modification to or waiver of the terms or conditions hereof shall
                be
                binding upon either Party unless approved in writing by an authorized
                representative and no modification can be made by the acknowledgment
                of
                acceptance or by the use of purchase order forms containing other
                or
                different terms or conditions.

            

    

     

    
      	
               

            	
              18.6.

            	
              This
                Agreement may be executed in one or more counterparts, each of which
                shall
                be deemed an original but all of which shall constitute one and the
                same
                instrument.

            

    

     

    
      
         

      

      
        13/17

        
          

        

      

      
         

      

    

    

     

    
      	
               

            	
              18.7.

            	
              Should
                the effects of this Agreement resulting from future unforeseen events
                and
                developments lead to an unjust hardship for either Party and which
                hardship does not correspond with the intention of the Parties in
                good
                faith, the Parties shall without delay enter into negotiations to
                see in
                what way the conditions of the Agreement can be modified to suit
                altered
                circumstances.

            

    

     

    
      	
               

            	
              18.8.

            	
              Neither
                the general terms of sale and delivery of CI nor the general terms
                of
                purchase of DOLIAGE shall apply to this Agreement or the individual
                transactions concluded on its basis. This shall also apply if either
                Party
                refers to its general terms and conditions when concluding an individual
                transaction.

            

    

     

    
      	
               

            	
              18.9.

            	
              All
                disputes arising out of or in connection with this Agreement shall
                first
                be attempted to be settled between the Parties on a good faith basis.
                If
                the Parties are unable to resolve the dispute within 60 (sixty) days
                from
                the receipt by one Party of the other Party's written notice asking
                for
                such amicable settlement discussions, then such dispute shall be
                finally
                settled by arbitration in accordance with the International Chamber
                of
                Commerce (ICC) Rules of Arbitration by three arbitrators, appointed
                in
                accordance with said rules. The place of arbitration shall be New
                York
                City, New York, USA. The proceedings shall be conducted and all
                documentation shall be presented in
                English.

            

    

     

    
      
         

      

      
        14/17

        
          

        

      

      
         

      

    

    

     

    
      	
              19.

            	
              SCHEDULES

            

    

     

    
      	
               

            	
              19.1.

            	
              Schedule
                A:   Products

            

    

    

    
      	
               

            	
              19.2.

            	
              Schedule
                B:    Patent

            

    

     

    IN
      WITNESS THEREOF,
      the
      Parties have executed this Agreement as of the day and year first written
      above.

     

    
      	
              CORONADO
                INDUSTRIES, Inc. 

            	
               

            	
              Laboratories
                DOLIAGE

            
	
               

            	
               

            	
               

            
	
              By:  

            	
              /s/ 

            	
               

            	
              By:  

            	
              /s/ 

            
	
               

            	
              

              Name

              Title

            	
               

            	
               

            	
              
                

                Name

              Title

            
	
               

            	
               

            	
               

            	
               

            	
               

            

    

    

     

     

    

    
      
         

      

      
        15/17

        
          

        

      

      
         

      

    

    

    

    SCHEDULE
      A

     

     

    
      	
              Products 

            	
               

            	
               

            
	
               

            	
               

            	
              PNT
                Vacuum Controller - Model 1000

            
	
               

            	
               

            	
               

            
	
               

            	
               

            	
              PNT
                Sterilized/Single Use/Disposable Ring - pre-sterilized polypropylene
                3-port PNT ring. One (1) sterilized ring per sealed Tyvek® pouch. 100
                rings per carton

            

    

     

     

    
      
         

      

      
        16/17

        
          

        

      

      
         

      

    

    

    

    SCHEDULE
      B

     

    

     

    
      	
              Patents 

            	
               

            	
               

            
	
               

            	
               

            	
              Patent
                Number 0790803 `Open Angle Glaucoma Treatment Apparatus' issued February
                19, 2003

            

    

     

     

     

    
      
         

      

      
        17/17EX 10.1

    EXHIBIT
      10.1

    

    OPERATING
      AND SERVICES AGREEMENT

    (English
      Translation)

    

    Agreement
      No.: _____

    

    This
      Operating and Services Agreement (hereinafter the “Agreement”) is entered into
      by the following parties as of January 5, 2006:

    

    Shanxi
      Bestlink Management Consulting Co., Ltd.
      (hereinafter the “Servicing Party”);

    

    Address:
      8/F, Beicang Building, Jianshe North Road No76, Taiyuan, Shanxi Province,
      PRC

    

    Fanshi
      County Xinyu Iron Resource Co., Ltd.
      (hereinafter the “Owner”);

    

    Address:
      Daying Town South, Fanshi County, Shanxi Province, PRC

    

    Shanxi
      Changchi Enterprise Co., Ltd. (hereinafter
      “Party C”);

    

    Address:
      Liuxiang
      South Road No48,Taiyuan City, Shanxi Province, PRC

    

    Legal
      Representative: Beicang Hou

    

    Junsheng
      Wang (hereinafter
      “Party D”, and collectively with Party C the “Shareholders”)

    

    Personal
      Identification No.: 142226600516171

     

    Whereas,
      the Owner has free and clear title to all of the assets (hereinafter the
“Assets”)
      as set
      forth on Attachment
      1;

    

    Whereas,
      the Servicing Party and its management possess the management “know-how”,
      marketing channels and networking resources relevant to the Owner’s business
      operations, and are willing to provide to Owner management consulting services,
      loans for operating capitals and other services; and 

    

    Whereas,
      Owner desires to retain the services of Servicing Party in accordance with
      the
      terms and conditions set forth herein. 

    

    Now,
      therefore, in consideration of the foregoing and of the promises and of the
      mutual covenants contained herein, the parties agree as follows:

    

    1. Definition.

    1.1. Definitive
      Definitions.
      In this
      Agreement the following terms shall have the following meanings, whether used
      in
      the singular or plural as appropriate. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    “Interest”
means
      the interest from the Servicing Party’s

    “Receivable”
means
      all receivables generated by Servicing Party’s management of the
      Assets;

    

    “Receivable
      Account”
means
      the designated account to be set up within China by Servicing Party or its
      designee into which Servicing Party is to deposit all Receivable. 

    

    “Receivable
      Expenses”
means
      all expenses reasonably incurred by Servicing Party in connection with its
      management services other duties on behalf of Owner, including legal and other
      fees and costs. 

    

    “Deposit
      Account”
means
      the account to be set up by Owner into which Servicing Party will wire
      Receivable money into at Owner’s direction.

    

    “Event
      of Breach”
means
      the events described in Section 8 of this Agreement.

    

    “Governmental
      Regulation”
means
      the law, regulation, order, opinion, rule, decision and direction of any and
      all
      relevant governmental oversight agencies and/or committees.

    

    “Significant
      Asset”
means
      any asset or class of assets which value is at least ten percent (10%) of
      Owner’s total assets as of the date of this Agreement.

    

    “Service
      Fee”
means
      the fee to be paid to Servicing Party in accordance with Section 6.1 of this
      Agreement.

    

    “Successor
      Servicing Party”
means
      the party to assume from Servicing Party the services to be provided as set
      forth in the Agreement, to be mutually agreed upon by Owner and Servicing
      Party.

    

    1.2. Accounting
      Terms.
      Except
      otherwise set forth herein, all accounting terms used in the Agreement shall
      be
      interpreted in accordance with China’s general accepted accounting principles,
      and all accounting decisions and financial reports to be provided hereunder
      shall be in accordance with China’s general accounting principles.

    

    2. Appointment
      of Servicing Party

    

    2.1. Appointment.
      Pursuant to the terms of this Agreement, Owner hereby appoints Servicing Party,
      on an exclusive basis, to provide management services, including without
      limitations the services set forth on Attachment
      3,
      with
      respect to the Assets, and grants Servicing Party all of Owner’s rights
      thereunder. Unless permitted under this Agreement, Owner may not terminate
      the
      above-described appointment of Servicing Party. Except as otherwise required
      by
      law or for obligations entered into prior to this Agreement, Owner and
      Shareholders agree that Owner may not engage in any transactions during the
      term
      of this Agreement that may

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    affect
      the Assets or Owner’s rights, obligations and business operations (including
      existing pledges and other liabilities) without the express consent of Servicing
      Party.

    

    2.2. Independent
      Contractor.
      In
      providing the services as set forth in the Agreement, Servicing Party is an
      independent contractor, and shall provide the services and take actions on
      behalf of Owner as such. Nothing in this Agreement shall be construed to mean
      that Servicing Party and Owner are partners or joint-venturers, or that
      Servicing Party is an agent of Owner. Servicing Party may retain the services
      of
      sub-contractors, which services shall be deemed those to be provided by
      Servicing Party. 

    

    2.3. Acceptable
      Standard of Service.
      Servicing Party shall exercise diligence and care and, in accordance with the
      terms of this Agreement, provide all services as permitted under Chinese law
      and
      in strict compliance with generally accepted commercial practice and standard
      of
      China. 

    

    2.4. Further
      Cooperation.
      

    

    2.4.1 Owner
      agrees to pledge all of its Assets and accounts receivable to Servicing Party
      as
      guaranty of Owner’s obligations under the Agreement. Owner and Shareholders
      shall take all actions required for the pledge, including without limitations
      executing all related documents and registrations.

    

    2.4.2 Except
      for the quarterly report as set forth in Section 5.1 of the Agreement, Servicing
      Party shall timely report to Owner as to the management of the Assets, which
      Servicing Party has agreed to be in the aggregate amount of Two Million Renminbi
      (2,000,000 RMB). Upon receipt of a report, Owner has 7 working days to provide
      Servicing Party with comments and suggestions, which Servicing Party agrees
      to
      take into consideration and to implement when it is commercially reasonable
      to
      do so, in rendering its services in the future. 

    

    2.4.3 Upon
      reasonable request from Owner, including its management, employees and
      authorized representative (such as its accountants and lawyers), Servicing
      Party
      shall furnish the requested information. Servicing Party agrees (i) to cooperate
      with Owner in order to facilitate the services relating to the Assets, and
      (ii)
      to immediately provide Owner with the relevant documents necessary to effectuate
      the services to be provided by Servicing party, and take all such further
      actions as deemed necessary. 

    

    2.4.4 To
      facilitate the ability of Servicing Party to provide the services set forth
      in
      this Agreement, Owner hereby grants Servicing Party its power of attorney,
      attached hereto as Attachment
      2.

    

    2.5. Meeting
      and Communication.
      Servicing Party and Owner shall meet regularly to review Servicing Party’s
      services. Servicing Party shall designate a primary contact person to whom
      Owner
      may direct all inquiries concerning Servicing Party’s services. 

    

    2.5.1 Servicing
      Party will respond in a commercially reasonable manner to any Owner’s inquiry
      regarding Servicing Party’s services. Servicing Party will implement in a
      commercially reasonable manner any Owner’s suggestions regarding Servicing
      Party’s services.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.5.2 Servicing
      Party will communicate with Owner regarding any issues relating to the Assets
      that may affect the ability to maintain Owner’s business
      operations.

    3. Records

    

    3.1. Maintaining
      Records.
      Servicing Party shall maintain all records relating to the Assets, including
      all
      communications with between Servicing Party and third-parties regarding the
      Assets.

    

    3.2. Original
      Documents.
      Servicing Party shall be entrusted with and maintain all original Owner’s
      documents, including without limitations documents containing original
      signatures and company seals. Servicing Party shall not release original
      documents to any individual or entity other than Owner. 

    

    3.3. Examination
      of Records.
      Upon
      3-month notice, Owner or its representative may (i) examine any and all records
      and documents described in this Section 3, and (ii) discuss with the management
      and employees of Servicing Party regarding the records and documents, provided
      that any such examination does not affect Owner’s other rights under this
      Agreement and is undertaken in a manner that minimizes any interference with
      Servicing Party’s normal operations. Owner shall assume all expenses incurred in
      connection with the examination described herein.

     

    4. Servicing
      Party’s Obligations

    

    4.1. Receivable
      Account.
      After
      the execution of this Agreement, Servicing Party shall immediately set up the
      Receivable Account either in its name or in Owner’s name. The money to be
      deposited in the Receivable Account shall be without deduction of the Service
      Fee. Owner is entitled to any interests earned or credits extended arising
      from
      the Receivable Account.

    

    4.2. Servicing
      Party as Owner’s Administrator.
      Owner
      hereby appoints Servicing Party as its administrator, to collect and deposit
      the
      Receivable into the Receivable Account. Owner is the sole beneficiary of the
      Receivable, the Assets and related rights. Servicing Party shall not commingle
      the Receivable with its own funds. Until a Receivable is deposited into the
      Receivable Account, Servicing Party shall hold any such Receivable in trust
      for
      the benefit of Owner. 

    

    4.3. Late
      Payment and Breach.
      If any
      third party breaches its obligations, Servicing Party shall take all
      commercially reasonable actions to seek damages from such third
      party.

    

    4.4. Certain
      Rights of Owner.
      In the
      event of any one of the following: (i) a court order to assist a third-party
      involuntary bankruptcy, (ii) a court order to appoint an administrator, trustee
      or someone serving similar functions with respect to the assets of a
      third-party, or (iii) a court order to cease the business operation of a third
      party (these three events are collectively referred to as “Third-Party
      Bankruptcy Event”), Servicing Party shall immediately establish and maintain
      Owner’s rights with respect to any such third-party.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5. Financial
      Reports

    

    5.1. Quarterly
      Report.
      Beginning on March 31, 2006, Servicing Party shall provide Owner with quarterly
      reports within thirty (30) days from the last day of each quarter, to enable
      Owner to review and assess (i) Servicing Party’s services, (ii) the Assets, and
      (iii) any third-party breach. The quarterly report shall conform to the format
      to be agreed to by Owner and Servicing Party, and shall describe Servicing
      Party’s services and efforts in collecting the Receivable during the relevant
      time period.

    

    5.2. Indemnification
      Notice.
      Beginning on March 31, 2006, Servicing Party shall, on a quarterly basis, notify
      Owner in writing within thirty (30) days from the last day of each quarter
      the
      following:

    

    5.2.1
      any
      litigation, investigation or proceedings relating to the Assets;

    

    5.2.2
      any
      notices from a governmental agency to (A) suspend or revoke any licenses,
      permits, registration or membership of Servicing Party necessary for its
      operation or the services to be provided under this Agreement or (B) suspend
      or
      cease any of the services or operations of Servicing Party, which suspension
      cessation will detrimentally affect Servicing Party’s ability to carry out its
      obligations under this Agreement.

    

    5.3. Transfer
      of Records.
      Within
      thirty (30) days from the termination of this Agreement, at the request of
      Owner, Servicing Party shall transfer all records and documents to Owner, except
      for such records and documents already in Owner’s possession. Owner shall bear
      all expenses relating to said transfer. 

    

    5.4. Report
      of Independent Auditor.
      During
      the term of this Agreement, Owner has the right each year to request that
      Servicing Party retain an independent auditor in China to audit the relevant
      books and records. The auditor shall provide owner with a copy of its audit
      report, which shall disclose all of the findings of the auditor. Owner shall
      bear all expenses relating to the independent auditor. 

     

    6. Service
      Fee

    

    6.1. Service
      Fee.
      In
      consideration of its services, Servicing Party shall be entitled to the
      following fees: ninety-five percent (95%) of the total amount deposited into
      the
      Receivable Account (as determined by the quarterly report from Servicing Party),
      minus Owner’s operating costs and related expenses. 

    

    6.2. Payment
      by Owner.
      

    

    6.2.1 At
      any
      time that the balance of the Receivable Account exceeds 10,000,000 RMB
      (excluding Service Fee and Receivable Expenses), Servicing Party shall deduct
      Service Fee and Receivable Expenses, and deposit the remaining sum in the
      Deposit Account.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.2.2 At
      any
      time it incurs a Receivable Expense, Servicing Party may reimburse said
      Receivable Expense from the Receivable Account.

    

    6.2.3 Provided
      that there is no breach of Section 8.2 of this Agreement, and after Servicing
      Party has verified with Owner the Receivable Expense and the amount of money
      deposited into the Deposit Account, the remaining sum shall be deemed to be
      the
      Service Fee earned by Servicing Party.

     

    7. Covenants
      by Servicing Party

    

    7.1. Standing,
      Status and Authority.
      During
      the term of this Agreement, Servicing Party shall maintain its good standing
      and
      its ability to carry out its obligations under this Agreement. Servicing Party
      has the authority to enter into this Agreement and provide all the services
      set
      forth herein and is not in breach or in conflict with its organizational
      documents or the relevant laws. 

    

    7.2. Servicing
      Party’s Performance of Its Services. Except
      as
      otherwise provided herein, Servicing Party shall not, in providing its services,
      cause detriment to (i) the obligations of any third-party, (ii) any records
      and
      files, (ii) the rights of Owner under this Agreement, or (iv) the exercise
      of
      Owner’s rights relating to the Assets. 

    

    7.3. Termination
      Right.
      Servicing Party may terminate this Agreement at any time in accordance with
      the
      terms of the Agreement. 

     

    8. Breach

    

    8.1. Breach
      by Servicing Party.
      Servicing Party shall have 30 days after notice from Owner to correct any breach
      of its obligations under the Agreement. If Servicing Party fails to correct
      the
      breach, Owner shall commence legal action against Servicing Party. 

    

    8.2. Breach
      by Owner.
      The
      failure by Owner of its obligations under this Agreement shall constitute a
      breach (unless Owner can demonstrate that such failure is the result of events
      beyond its control). Owner shall have 30 days after notice from Servicing Party
      to correct any breach of its obligations under the Agreement. 

    

    8.3. Remedies.
      

    

    8.3.1
      The
      rights, privileges, powers, and remedies available to Owner hereto are
      cumulative and not exclusive of any other rights, privileges, powers, or
      remedies otherwise available to Owner. Additionally, Owner has the right to
      terminate its pledge, if any, to guaranty its performance of this Agreement.
      

    

    8.3.2
      The
      rights, privileges, powers, and remedies available to Servicing Party hereto
      are
      cumulative and not exclusive of any other rights, privileges, powers, or
      remedies otherwise available to Servicing Party. Additionally, Servicing Party
      has the right to terminate its pledge, if any, to guaranty its performance
      of
      this Agreement. 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    9. Indemnification

    

    9.1. Indemnification
      by Servicing Party.
      Servicing Party shall indemnify and hold Owner harmless from and against any
      and
      all damages, losses, liabilities, expenses, settlement funds, attorney fees
      and
      all related costs incurred by Owner (collectively hereinafter “Owner Damages”)
      arising from (i) Servicing Party’s breach of its obligations, or (ii) Servicing
      Party’s breach of its covenants and warranties, except that Servicing Party
      shall not be liable for any Owner Damages caused by (a) any third-party, (b)
      Owner, and (c) actions taken by Servicing Party at the direction of Owner.
      Except for the Owner Damages, Servicing Party shall not assume liability for
      other damages, liquidated damages or damages to Owner’s goodwill. 

    

    9.2. Indemnification
      by Owner.
      Owner
      shall indemnify and hold Servicing Party harmless from and against any and
      all
      damages, losses, liabilities, expenses, settlement funds, attorney fees and
      all
      related costs incurred by Servicing Party (collectively hereinafter “Servicing
      Party Damages”) arising from (i) Owner’s breach of its obligations, or (ii)
      Owner’s breach of its covenants and warranties, except that Owner shall not be
      liable for any Servicing Party Damages caused by (a) Servicing Party, and (c)
      actions taken by Owner at the direction of Servicing Party. Except for the
      Servicing Party Damages, Owner shall not assume liability for other damages,
      liquidated damages or damages to Servicing Party’s goodwill. 

     

    10. Term

    

    10.1. Term
      of this Agreement.
      In
      accordance with Section 11.1 of this Agreement, this Agreement shall commence
      on
      January 5, 2006, and shall terminate at the earlier of:

    

    10.1.1
      Twenty (20) years from the execution of this Agreement (hereinafter the
“Term”);

    

    10.1.2
      The mutual agreement of the parties to terminate the Agreement;

    

    10.1.3
      The termination of this Agreement by Servicing Party.

    

    10.2. Effect
      of Termination.
      Either
      before the end of the Term, or within three months after the termination by
      mutual agreement of the parties or by Servicing Party:

    

    10.2.1. Servicing
      Party shall transfer all of its services to the Successor Servicing Party,
      including without limitation, direct all third-parties to transfer all
      Receivable to the account or location designated by Owner. However, in the
      event
      that at the end of the term there is no Successor Servicing Party or Owner
      and
      Servicing Party have not agreed to extend the Term, then all remaining Assets
      shall be auctioned off in a commercially reasonable manner with consent from
      Owner;

    

    10.2.2 The
      termination of the Agreement shall not affect any rights that Owner has during
      the course of the Term; and

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    10.2.3 
      After
      the termination of the Agreement, Owner shall have no further obligations with
      respect to the Service Fee, and Servicing Party with respect to the services
      relating to the Assets.

     

    11. General
      Provisions

    

    11.1. Ownership.
      All
      receipts, all records and files as described in Section 3 of this Agreement,
      and
      all related documents are the sole and exclusive property of Owner.

    

    11.2. Applicable
      Law and Jurisdiction.
      This
      Agreement shall be governed by and interpreted in accordance with the laws
      of
      the PRC. Any dispute arising out of this Agreement shall be submitted to
      arbitration in Beijing under the auspices of China International Economic and
      Trade Arbitration Commission. During the period when a dispute is being
      resolved, the parties shall in all other respects continue their implementation
      of this Agreement.

    

    11.3. Notice.
      Except
      as otherwise provided, all notices pursuant to this Agreement shall be written
      in Chinese and English and delivered personally, or sent by registered mail
      of
      by facsimile transmission to the address of the parties set forth below (or
      to
      the address or facsimile number provided by a party in writing 5 days before
      the
      notice). The date when the notice is deemed duly served shall be determined
      as
      follows: (a) a notice delivered personally is deemed duly served upon the
      delivery, (b) a notice sent by facsimile transmission is deemed duly served
      upon
      the completion of the transmission, except that if the notice is transmitted
      on
      a non-work day, the notice is deemed duly served upon the first work-day
      thereafter. 

    

    Shanxi
      Bestlink Management Consulting Co., Ltd.

    Business
      Address: 8/F, Beicang Building, Jianshe North Road No76, Taiyuan, Shanxi
      Province, PRC

    Attn:
      Beicang Hou

    Fax:
      0351-4656787

    

    Fanshi
      County Xinyu Iron Resource Co., Ltd.

    Business
      Address: Daying Town South, Fanshi County, Shanxi Province, PRC

    Attn:
      Junsheng Wang

    Fax:
      0350-5582700

    

    Shanxi
      Changchi Enterprises Co., Ltd.

    Business
      Address:
      Liuxiang
      South Road No48, Taiyuan City, Shanxi Province, PRC

    Attn:
      Beicang Hou

    Fax:0351-4656981

    

    Junsheng
      Wang

    Business
      Address: Daying Town South, Fanshi County, Shanxi Province, PRC

    Attn:
      Junsheng Wang

    Fax:
      0350-5582700

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    11.4. Headings.
      Headings in this Agreement are for convenience only and shall not be used to
      interpret or construe the provisions of this Agreement.

    

    11.5. Severability.
      If any
      provision of this Agreement shall be held to be prohibited by or invalid under
      any applicable law, such provision shall be ineffective only to the extent
      of
      such prohibition or invalidity, without invalidating the remaining provisions
      of
      this Agreement.

    11.6. Assign.
      This
      Agreement shall be binding upon the parties’ successors and assigns.
      

    

    11.7. Surrender
      of Rights.
      The
      untimeliness or delay by any party in the execution or implementation of this
      Agreement shall not be deemed as surrender by that party of its rights under
      the
      Agreement. A party may only surrender its rights under the Agreement in writing.
      

    

    11.8. Further
      Actions.
      The
      parties shall take all such further actions as necessary to implement and
      effectuate this Agreement.

    

    11.9. Expenses.
      Except
      as otherwise provided, each party is to bear its own expenses incurred relating
      to the negotiation and preparation of this Agreement.

    

    11.10. Counterparts.  This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed an original and all of which taken together shall constitute one and
      the
      same instrument.

    

    11.11. Language.
      The
      language of this Agreement shall be in Chinese and English. 

    

    [Remainder
      of the Page Intentionally Blank]

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    [Signature
      Page]

    

    In
      witness whereof,
      the
      parties have signed this Agreement as of the date and year first written
      above.

    

    Owner:   

    Fanshi
      County Xinyu Iron Resource Co., Ltd.

    

    /s/
      Junsheng Wang

      
        

      

    

    Authorized
      Representative

    

    

    Shareholder:

    Shanxi
      Chungchi Enterprise Co., Ltd.

    

    /s/
      Beicang Hou

      
        

      

    

    Authorized
      Representative

    

    

    /s/
      Junsheng Wang

      
        

      

    

    Junsheng
      Wang,
      Shareholder

    

    

    Servicing
      Party: 

    Shanxi
      Bestlink Management Consulting Co., Ltd.

    

    /s/
      Beicang Hou

      
        

      

    

    Authorized
      Representative 

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    Attachment
      1

    Assets

    

    
      	 	
              1.

            	
              All
                the rights to use of Owner with respect to assets and inventories
                however
                owned by Owner (“Assets”), including without limitations cash, equipments
                and machinery, land use rights, factories and
                construction-in-progress.

            

    

    

    
      	 	
              2.

            	
              All
                contracts, permits, authorizations of Owner (with any amendments,
                additions, restatements are collectively referred to as “Business
                Agreements”) and rights thereto. 

            

    

    

    
      	 	
              3.

            	
              All
                agreements, files, records, communications (including without limitation
                all programs, storage tapes, software and related intellectual property
                rights are collectively referred to as
                “Records”).

            

    

    

    
      	 	
              4.

            	
              All
                benefits and liabilities relating to Items 1 and 2
                above.

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    Attachment
      2

    Power
      of
      Attorney

    

    Fanshi
      County Xinyu Iron Resource Co., Ltd. (“Fanshi
      Iron Resource”) hereby grants Shanxi
      Bestlink Management Consulting Co., Ltd. (“Bestlink”)
      on an exclusive basis to manage all of the assets (“Assets”) of Fanshi Iron
      Resource and to represent Fanshi Iron Resource in contract negotiation and
      all
      other business matters, using all methods permissible under PRC law (including
      without limitations legal proceeding, debt collection, debt consolidation,
      debt
      negotiation and settlement. 

    

    To
      avoid
      any conflict, Bestlink is hereby granted the right, without the prior consent
      of
      Fanshi Iron Resource, to: (1) appoint attorneys, accountants and other
      consultants, (2) negotiate, (3) forgive or settle debts, and (4) take all other
      actions that Bestlink believes is necessary and/or appropriate to manage the
      Assets and perform related services, including without limitation to communicate
      with any oversight governmental agencies. 

    

    Fanshi
      Iron Resource has the authority to grant Bestlink all the rights
      herein.

    

    This
      Power of Attorney is effective as of January 5, 2006 and shall expire on
      December 31, 2025. 

    

    Fanshi
      County Xinyu Iron Resource Co., Ltd.

     

     

    /s/
      Junsheng Wang

      
        

      

    

    Authorized
      Representative

     

    Dated:
      1/5/2006

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    Attachment
      3

    Description
      of Management Services

    

    
      	1.	
              General
                Management:

            

    

    

    To
      advise
      and assist with business operation and to provide consulting service, especially
      with respect to organization of production lines and quality
      control.

    

    
      	2.	
              Human
                Resource:

            

    

    

    
      	 	
              (i)

            	
              To
                advise and assist with Fanshi Iron Resource’s human resource, including
                hiring and retention of management and administrative personnel and
                workers;

            

    

    

    
      	 	
              (ii)

            	
              To
                train and develop management and administrative personnel and
                workers;

            

    

    

    
      	 	
              (iii)

            	
              To
                assist Fanshi Iron Resource with management of
                payroll;

            

    

    

    
      	 	
              (iv)

            	
              To
                advise and assist Fanshi Iron Resource with changes in management
                and
                employee personnel.

            

    

    

    
      	3.	
              Sales
                Distribution Management:

            

    

    

    To
      assist
      Fanshi Iron Resource with managing and developing sales distribution
      channels

    

    
      	4.	
              Other
                Services:

            

    

    

    To
      be
      determined as mutually agreed by the parties.

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