Document:

exh102

    Agreement
      Between Investcol Limited. and Colombia Goldfields
      Limited

    

    

    This
      agreement effective September 22, 2005 sets forth the terms and conditions
      under
      which Investcol Limited (the "Contractor"), a Belize company, will provide
      to
      Colombia Goldfields, Ltd. ("Colombia Goldfields"), services for project
      management of the Caramanta Project in Department of Antioquia, Colombia
      (identified on Exhibit "1").

    

    
      	1.  	
              Responsibilities
                and duties to be performed by the Contractor are as
                follows:

            

    

    

    (a) Contractor
      will manage the operation of the Caramanta project according to an approved
      three year budget (see attached Exhibit "2"). During the term of this Agreement,
      two month detailed budgets will be prepared and presented to Colombia Goldfields
      for approval, at least 10 days prior to each two month period. Contractor's
      objective is to conduct an intensive exploration program for the Caramanta
      district north of Marmato (the "Caramanta Project"). Project management will
      include supervision of all personnel, including field geologists and drilling
      companies.

    

    (b) Contractor
      will be responsible that the exploration operations comply, in all material
      ways, with all governmental rules and regulations.

    

    (c) Contractor
      will be responsible for the operational management, as it applies to the
      exploration programs, functioning properly. This includes preparation of monthly
      budgets, purchase programming and human resources. Contractor will provide
      monthly reports detailing use of funds for the exploration program on the
      Caramanta Project.

    

    (d) The
      Contractor will provide written notice to Colombia Goldfields when third party
      consultants or contractors are engaged for operations and will provide copies
      to
      Colombia Goldfields of all executed agreements with such consultants or
      contractors.

    

    (e) Contractor
      will, no later than September 30, 2005, enter into an agreement with Cia
      Servicios y Logisticos Ltda. (the "Owner"), to provide local labor and logistics
      for the Caramanta Project and shall provide a copy of such agreement to Colombia
      Goldfields.

    

    (f) Contractor
      will provide the services of Ian Park who will be available at reasonable times
      upon reasonable notice to coordinate exploration activities on the Caramanta
      Project.

    

    
      	2.  	
              Payment
                by Colombia Goldfields for services to be performed by Contractor
                and its
                agents, representatives and designees, shall be made as
                follows:

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (a) Five
      hundred thousand dollars ($500,000) at Closing, of which two hundred thousand
      dollars ($200,000) has been paid;

    

    (b) up
      to
      seven hundred fifty thousand dollars ($750,000) during the 12 month period
      of
      this Agreement commencing June 25, 2006, and on the earlier of June 26, 2006,
      or
      commencement of the second exploration phase one million shares of its common
      stock restricted as to transfer in accordance with applicable securities laws
      but subject to the same piggy-back registration rights contained in Section
      5 of
      the Assignment Agreement effective August 31, 2005; and

    

    (c) up
      to one
      million seven hundred and forty thousand dollars ($1,740,000) during the 12
      month period of this Agreement, commencing June 25, 2007. and

    

    (d) a
      monthly
      office fee of $7,500 through July 31, 2006.

    

    Colombia
      Goldfields may, in its sole and absolute discretion, accelerate payments under
      2(a), (b) and (c) above. All payments made by Colombia Goldfields to Contractor
      hereunder shall be certified in writing (at least quarterly) by Contractor
      to
      the Owner as having been made, with a copy of such written certification
      delivered to Colombia Goldfields.

    

    Payment
      made by Colombia Goldfields hereunder shall be for those items set forth on
      Exhibit "2", which includes the Contractor fee. With respect to purchases of
      drilling core and other tangible equipment, title ownership shall belong to
      Colombia Goldfields and Contractor shall ensure that all such tangible equipment
      is owned by Colombia Goldfields.

    

    
      	3.  	
              This
                Agreement can be terminated by Colombia Goldfields in the event Contractor
                fails to carry out its responsibilities and duties hereunder and
                Colombia
                Goldfields provides at least ten days written notice specifying the
                reason(s) for such termination and Contractor fails to cure or remedy
                such
                breach or violation within such ten day period. Upon such termination,
                Colombia Goldfields shall have no further liability for payment
                hereunder.

            

    

    

    
      	4.  	
              Contractor
                shall indemnify, hold harmless, protect and defend Colombia Goldfields
                from and against any and all liabilities, claims, losses and expenses
                (i)
                incurred by Colombia Goldfields arising out of, relating to, or based
                upon
                any failure of Contractor to perform its duties and responsibilities,
                or
                (ii) incurred by Colombia Goldfields in defense of any claim brought
                by a
                third party with respect to activities performed (or not performed)
                by
                Contractor hereunder. 

            

    

    

    
      	5.  	
              This
                Agreement may not be assigned by Contractor without the prior written
                consent of Colombia Goldfields, which consent can be withheld by
                Colombia
                Goldfields in its sole and absolute
                discretion.

            

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	6.  	
              Any
                waiver, alteration or modification of any of the provisions of this
                Agreement, or cancellation or replacement of the same, shall not
                be valid
                unless made in writing and signed by the parties
                hereto.

            

    

    

    
      	7.  	
              The
                validity of this Agreement or any of its terms, covenants an conditions,
                as well as the rights and duties of the parties hereunder, shall
                be
                interpreted and construed pursuant to and in accordance with the
                laws of
                the State of Nevada. Contractor agrees that nay controversy or dispute
                concerning this Agreement will be determined by a United States District
                Court in Nevada, and Contractor hereby agrees to submit to the
                jurisdiction of such court.

            

    

    

    
      	8.  	
              All
                notices or other communications required or permitted hereunder shall
                be
                in writing and shall be deemed given or delivered (i) when delivered
                personally; (ii) if transmitted by facsimile when confirmation of
                delivery
                is received or (iii) if sent by registered or certified mail return
                receipt requested, or by private courier when received, and shall
                be
                addressed as follows:

            

    

    

    If
      to
      Contractor:        Investcol
      Limited

    1
      Mapp
      Street, Belize

    Attention:
      Tom Lough

    Facsimile:
      416-365-1828

    

    If
      to
      Colombia Goldfields:       610-375
      Water Street, Vancouver, BC

     
      Attention: Dan Hunter

     
      Facsimile: 604-801-5575

    

    
      	9.  	
              This
                Agreement contains the entire understanding of the parties with respect
                to
                the subject matter set forth herein, superseding any and all prior
                agreements, written or oral, between the parties regarding the same
                subject matter.

            

    

    

    
      	10.  	
              This
                Agreement is valid for three years from the date
                hereof.

            

    

    

    

    INVESTCOL
      LIMITED   COLOMBIA
      GOLDFIELDS LIMITED

    

    /s/
      T.W. Lough    /s/  
      Dan Hunter      

    T.W.
      Lough        Dan
      Hunter

    Legal
      Representative      PresidentExhibit 10.18

    Exhibit
      10.18

       

      Beijing
        World Trade Center Club

       

      CONTRACT

       

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      Beijing
        World Trade Center Club

       

      CONTRACT

       

       

      Chapter
        I    General
        Provisions

       

       

      In
        accordance with the Sino-foreign
        Cooperative Venture Law of PRC
        and
        other relevant laws, rules and regulations of PRC, and based on the principle
        of
        equality and mutual benefit, Beijing Wanlong Economic Consulting Ltd. (a
        subsidiary body of Beijing World Trade Center) and Canada Belford Enterprises
        Ltd. hereby agree to jointly found a cooperative venture in Beijing, China
        after
        amiable consultations. In light of this, this Contract is hereby
        formulated.

       

       

      Chapter
        II    Cooperative
        Parties

      
         

        
          	
                  Article
                    1.

                	
                  Both
                    cooperative parties are as follows:

                

        

         

      

          Party
        A:  Beijing
        Wanlong Economic Consulting Ltd.

                             
        Registered place: Beijing, China

                             
        Legal
        address: Floor 5, Section 2, Middle Building, Hualong Street, Nanheyan,
        Beijing.

                             
        Legal representative: Duan
        Zemin

                             
        Post: General
        Manger
                       
        Nationality: China

       

          Party
        B:  Canada
        Belford Enterprises Ltd.

                              
        Registered
        place: Canada

                              
        Legal
        address: 112-3880 Westminster HWY, Richmond, B.C. Canada V7C 5S1.

                              
        Legal representative: Xu
        Xiaowei

                              
        Post: President
                        
        Nationality: UK

       

       

      Chapter
        III    Establishment
        of Cooperative Venture

       

      
        
          	Article
                  2.	
                  In
                    accordance with the Sino-foreign Cooperative Venture Law of PRC
                    and other
                    relevant laws, rules and regulations of PRC, both parties hereby
                    agree to
                    jointly found a cooperative venture (hereinafter referred to
                    as
                    åCooperative Ventureæ) in Beijing, China.

                

        

      

       

      
        	Article
                3.	
                Name
                  of the Cooperative Venture: 

              

      

       

          –k‹ž�中垏3ii妷3⁄4惹倎2¿ěi牊窘1«槜3⁄4(in
        Chinese)

       

          Beijing
        World
        Trade Center Club (in English)

       

          Legal
        address
        of the Cooperative Venture: Floor 4, Hualong Street, Nanheyan, Dongcheng
        District, Beijing.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        	Article
                4.	
                The
                  Cooperative Venture shall take and behave any or all its acts in
                  accordance with the laws, rules and regulations of the People’s Republic
                  of China and shall be protected by the
                  latter.

              

      

       

      
        	Article
                5.	
                The
                  organization form of the Cooperative Venture shall be a limited
                  liability
                  company.

              

      

       

       

      Chapter
        IV    Purpose
        of Cooperation, Business Activities and Scale
        of Operation

       

      
        	Article
                6.	
                The
                  purpose of the Cooperative Venture shall be: to provide integrated
                  and
                  full range of services to the members of World Trade Center Association
                  and the members of Beijing World Trade Center, so as to enhance
                  the
                  economic communication and cooperation and to promote the development
                  of
                  international trade. The Cooperative Venture also aims at attaining
                  economic return for both parties through scientific
                  management.

              

      

       

      
        	Article
                7.	
                The
                  business activities of the Cooperative Venture shall
                  be:

              

      

       

      
        
          	  
                  1.	
                  Providing
                    integrated and full range of services to the members of World
                    Trade Center
                    Association and the members of Beijing World Trade Center, including
                    scriptorium, meeting room, restaurant, entertainment and business
                    center,
                    etc.

                

        

        
          	  
                  2.	
                  Providing
                    information and consulting services, including holding periodic
                    information release, members reception, seminar, and technical
                    information
                    exchange meeting, etc. 

                

        

        
          	  
                  3.	
                  Mini-products
                    display service.

                

        

        
          	  
                  4.	
                  Miscellaneous
                    services.

                

        

      

       

      
        	Article
                8.	
                The
                  operating scale of the Cooperative Venture shall be bound in: based
                  on the
                  existing facility in Beijing, to rent or purchase the business
                  place of
                  2,000 - 3,000 m2, falling into meeting hall, banqueting hall &
                  restaurant, computer network center, reference library, reception
                  room and
                  business center, etc. 

              

      

       

       

      Chapter
        V    Gross
        Investment and Registered Capital

       

      
        	Article
                9. 	
                The
                  gross investment of the Cooperative Venture shall be USD 3,000,000
                  (USD
                  three million) and all of this investment shall be treated as the
                  registered capital.

              

      

       

      
        	Article
                10.	
                Party
                  A and Party B shall start the cooperation under the following
                  premises:

              

      

       

      Party
        A
        shall, with the consent of Beijing World Trade Center, obtain the relevant
        service items involved by World Trade Center Organization for the Cooperative
        Venture to operate. Party A shall also be in charge of the earlier-stage
        work of
        the project as well as the inquiring work.

       

      Party
        B
        shall subscribe the capital of USD 3,000,000 (USD three million).

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
        	Article
                11.	
                Subscribing
                  method of the registered capital shall be as
                  follows:

              

      

       

      USD
        300,000 (USD three hundred thousand) shall be subscribed within three (3)
        months
        after the issuing of business license of Cooperative Venture. The rest capital
        of USD 2,700,000 (USD two million seven hundred thousand) shall be subscribed
        with the next nine (9) months. All the registered capital of Cooperative
        Venture
        shall be paid in full within one (1) year.

       

      
        	Article
                12.	
                Upon
                  Party B subscribes the capital, a certified public accountants
                  firm
                  invited by the Cooperative Venture shall commence the verification
                  on the
                  capital and shall issue a report on verification of capital. Accordingly,
                  the Cooperative Venture shall issue the certificate of capital
                  subscribed,
                  testifying the name of cooperative venture, date of establishment,
                  name of
                  investors and their capital subscribed, date of subscription, as
                  well as
                  the issuing date of the certificate
                  herein.

              

      

       

      
        	Article
                13.	
                The
                  registered capital of Cooperative Venture shall not be reduced
                  during the
                  period of cooperation.

              

      

       

      
        	Article
                14.	
                Without
                  the consent of the other party and the approval of original approval
                  authority, any party shall not assign all or part of his capital
                  subscribed to outsider, nor such assignment be deemed as effective.
                  As to
                  any party’s assignment acceded, on an equal footing, other party shall
                  have preemptive right. 

              

      

       

       

      Chapter
        VI    Liabilities
        of Both Parties

       

      
        	Article
                15.	
                Party
                  A is liable for the following
                  affairs:

              

      

       

      
        	1.	
                To
                  handle the project declaration and the feasibility study,
                  etc.

              

      

      
        	2.	
                To
                  apply to the relevant authorities of PRC for the approval of Cooperative
                  Venture, to handle the registration and to get the business license
                  for
                  Cooperative Venture.

              

      

      
        	3.	
                To
                  handle the earlier-stage work and inquiring work of the
                  project.

              

      

      
        	4.	
                To
                  obtain the consent from Beijing World Trade Center so as to endow
                  the
                  Cooperative Venture with the name of "Beijing World Trade Center
                  Club"
                  both in Chinese and in English.

              

      

      
        	5.	
                To
                  handle the other affairs entrusted by the Cooperative
                  Venture.

              

      

       

      
        	Article
                16.	
                Party
                  B is liable for the following
                  affairs:

              

      

       

      
        	1.	
                To
                  ensure the registered capital of USD 3,000,000 be subscribed smoothly
                  as
                  per the Contract.

              

      

      
        	2.	
                To
                  provide any or all the necessary certificates and legal instruments
                  to the
                  Cooperative Venture.

              

      

      
        	3.	
                To
                  settle the business place of the Cooperative
                  Venture.

              

      

      
        	4.	
                To
                  handle the earlier-stage preparation, promotion and management
                  of the
                  Cooperative Venture.

              

      

      
        	5.	
                To
                  handle the other affairs entrusted by the Cooperative
                  Venture.

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      Chapter
        VII    Board
        of Directors

       

      
        	Article
                17. 	
                The
                  board of directors of Cooperative Venture shall be setup in the
                  even date
                  as of the registration of Cooperative Venture.

              

      

       

      
        	Article
                18.	
                The
                  board of directors shall be consisted of 5 directors, in whom,
                  2 directors
                  shall be appointed by Party A and 3 by Party B. At the same time,
                  one
                  chairman of board shall be appointed by Party B and Party A shall
                  appoint
                  the only vice-chairman. 

              

      

       

      
        	Article
                19. 	
                The
                  tenures of the chairman and the vice-chairman shall be 3 years
                  respectively and may be renewed upon the appointment
                  hereinafter.

              

      

       

      
        	Article
                20. 	
                The
                  board of directors shall be the highest authority and will decide
                  all the
                  important matters of the Cooperative Venture. However, the following
                  matters shall be approved by all the members of board of
                  directors:

              

      

       

      1. 
        Modification
        to the Contract and the Articles of Association of Cooperative
        Venture.

      2. 
        Termination,
        dissolution and liquidation of the Cooperative Venture.

      3. 
        Increase
        of registered capital and mortgage and assignment of assets of the Cooperative
        Venture.

      4. 
        Merging
        the Cooperative Venture with other business entity.

      5. 
        Other
        important matters, in the views of both parties, necessary to be approved
        by all
        the members of board of directors.

       

      As
        to
        other matters of the Cooperative Venture, it can be decided based on the
        approval by more than three fifth of total number of the directors.

       

      
        	Article
                21.	
                The
                  chairman of board shall be the legal representative of Cooperative
                  Venture. In the case that the chairman fails to execute his duties
                  due to
                  any reason, he may temporarily authorize the vice-chairman or other
                  director to execute his duties.

              

      

       

      
        	Article
                22.	
                At
                  least one regular board meeting shall be held each year, convened
                  and
                  presided over by the chairman of board. The chairman may convene
                  an
                  interim meeting based on a proposal made by more than one third
                  of total
                  number of the directors. All the cahiers shall be well
                  filed.

              

      

       

       

      Chapter
        VIII    Management
        Organization

       

      
        	Article
                23.	
                The
                  Cooperative Venture shall setup its management organization to
                  manage the
                  daily business. Instructed by the board of directors, the management
                  organization shall adopt the system of manager assuming the chief
                  responsibility. The management organization shall employ one general
                  manager, nominated by Party B, and shall employ two deputy general
                  managers, nominated by Party A and Party B respectively. The general
                  manager and the deputy general managers shall be invited by the
                  board of
                  directors and shall enjoy 3-year tenure. Upon the approval of board
                  of
                  directors, their tenures herein can be
                  renewed.

              

      

       

      
        	Article
                24.	
                Upon
                  the invitation of board of directors, a man who takes the post
                  of chairman
                  of board, vice-chairman or director may also take the post of general
                  manager, deputy general manager or other senior post in the Cooperative
                  Venture.

              

      

       

      
        	Article
                25. 	
                The
                  duties of general manager shall be to implement the resolutions
                  of board
                  meetings and to deploy and organize the daily management of the
                  Cooperative Venture. The deputy general managers shall assist the
                  general
                  manager.

              

      

       

      The
        management organization may be divided into subordinate departments. Those
        departments shall be responsible for the management of different areas, and
        shall fulfill and responsible to the tasks entrusted by the general manager
        and/or the deputy general manager.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        	Article
                26.	
                Should
                  the general manager or the deputy general manager fail to execute
                  the
                  resolution of board of directors, or be subject to any jobbery
                  behavior or
                  any gross misfeasance, he may be dismissed at any time upon the
                  decision
                  of board meeting and may be held responsible for any economic and
                  legal
                  liabilities.

              

      

       

       

      Chapter
        IX    Procurement
        of Equipment

       

      
        	Article
                27. 	
                As
                  to the raw material, equipment, transportation means or office
                  supplies,
                  on an equal footing, it should be preempted at home.
                  

              

      

       

      
        	Article
                28.	
                In
                  the case when the Cooperative Venture entrusts Party B to procure
                  the
                  equipment aboard, the representative from Party A shall also be
                  invited.

              

      

       

       

      Chapter
        X    Preparation
        and Construction

       

      
        	Article
                29. 	
                During
                  the preparation and construction of the Cooperative Venture, a
                  preparation
                  office shall be attached to the board of directors. Director and
                  deputy
                  director of the preparation office may be nominated by the general
                  manager
                  and be appointed by the board of directors. These positions also
                  can be
                  co-taken by the general manager and the deputy general
                  manager.

              

      

       

      
        	Article
                30.	
                The
                  preparation office shall examine the engineering design, sign the
                  construction contraction, organize the procurement and acceptance
                  of
                  equipment and goods, draw up the overall scheme for construction
                  progress,
                  schedule the expenditure plan, control the project financial expenditure
                  and final account, formulate the relevant management rules, and
                  shall keep
                  and arrange the documents, drawing, files, materials during the
                  construction.

              

      

       

      
        	Article
                31.	
                The
                  Cooperative Venture shall employ the technicians to form a technical
                  group. Instructed by the preparation office, this technical group
                  shall be
                  responsible for the examination, supervision and inspection over
                  the
                  design, construction quality, equipment, and imported and exported
                  materials, etc.

              

      

       

      
        	Article
                32.	
                The
                  organization, wage and expenses of the staff of preparation office
                  shall
                  be incorporated into the construction budget upon the approval
                  of
                  Cooperative Venture.

              

      

       

      
        	Article
                33.	
                The
                  preparation office shall be cancelled under the approval of board
                  of
                  directors upon the completion of construction and the hand
                  over.

              

      

       

       

      Chapter
        XI    Financial
        Accounting and Audit

       

      
        	Article
                34.	
                The
                  Cooperative Venture shall pay in full any or all the due and payable
                  taxes
                  and duties in accordance with the laws, rules and regulations of
                  the
                  People’s Republic of China.

              

      

       

      
        	Article
                35. 	
                The
                  employees of Cooperative Venture shall pay in full any or all the
                  individual income tax in accordance with the Individual Income
                  Tax Law of
                  PRC.

              

      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      
        	Article
                36. 	
                As
                  per the Sino-foreign Cooperative Venture Law of PRC, the Cooperative
                  Venture shall take out each year reserve fund, venture expansion
                  fund,
                  employee incentive fund and employee welfare fund in the proportion
                  decided by the board of directors in consideration of actual
                  situation.

              

      

       

      
        	Article
                37. 	
                The
                  Cooperative Venture shall employ one chief accountant, to be responsible
                  for the accounting work of the Cooperative Venture. The chief accountant
                  shall be invited by the board of
                  directors.

              

      

       

      
        	Article
                38.	
                Fiscal
                  year of the Cooperative Venture shall be calendar year, starting
                  from
                  January 1 and ending on December 31 of the same year. All the accounting
                  vouchers, bills, account books and financial statements of the
                  Cooperative
                  Venture shall be made both in Chinese and in
                  English.

              

      

       

      
        	Article
                39. 	
                The
                  Cooperative Venture adopts Chinese Yuan (Renminbi) as the standard
                  money
                  unit of account. As to converting from Renminbi into other currency,
                  the
                  exchange rate issued by State Administration of Exchange Control,
                  PRC on
                  the current day of conversion will be
                  adopted.

              

      

       

      
        	Article
                40.	
                The
                  Cooperative Venture shall keep its accounts in accordance with
                  the
                  worldwide-customized accrual system and debit-credit accounting
                  system. At
                  the same time, monthly, quarterly and annual accounting statement
                  system
                  shall be well executed.

              

      

       

      
        	Article
                41.	
                The
                  Cooperative Venture shall employ one chief auditor, invited by
                  the board
                  of directors. The chief auditor shall examine and check the financial
                  receipts and expenditures and the accounts, and submit the auditing
                  report
                  to the board of directors, general manager and both parties. Each
                  party
                  shall be entitled, at his own expense, to invite an auditor to
                  examine all
                  the account books of the Cooperative Venture. The Cooperative Venture
                  shall render the necessary assistance during the
                  examination.

              

      

       

      
        	Article
                42. 	
                The
                  financial department of the Cooperative Venture shall, within the
                  first
                  three months of each fiscal year, prepare the balance sheet, income
                  statement and scheme for profit distribution of previous fiscal
                  year. All
                  the balance sheet, income statement and scheme for profit distribution
                  of
                  previous fiscal year shall be audited and signed by the chief auditor,
                  and
                  shall be submitted to the board meeting for approval.
                  

              

      

       

       

      Chapter
        XII    Period
        of Cooperation

       

      
        	Article
                43.	
                The
                  period of cooperation of Cooperative Venture shall be 20 years,
                  counting
                  from the date on which the business license is
                  issued.

              

      

       

      
        	Article
                44. 	
                Upon
                  the proposal of any party and upon the approval of all the members
                  of
                  board meeting, an application may be submitted six (6) months prior
                  to the
                  expiration of cooperation to the original approval authority for
                  renewing
                  the cooperation. At the same time, upon the approval of all the
                  members of
                  board of directors and the approval of original approval authority,
                  this
                  Contract can be terminated
                  prematurely.

              

      

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      Chapter
        XIII    Foreign
        Exchange

       

      
        	Article
                45.	
                Any
                  or all the foreign exchange of the Cooperative Venture shall be
                  handled in
                  accordance with the Provisional Regulations on Foreign Exchange
                  Control,
                  PRC and the other relevant
                  stipulations.

              

      

       

      
        	Article
                46.	
                The
                  Cooperative Venture shall open RMB accounts and foreign currency
                  accounts
                  in Bank of China or in other banks approved by Bank of China, and
                  shall
                  accept the supervision of deposit
                  bank(s).

              

      

       

      Any
        or
        all the foreign earnings of Cooperative Venture shall be deposited in the
        foreign currency accounts of deposit bank, while any or all the foreign exchange
        disbursements shall be remitted from the same foreign accounts
        hereof.

       

      
        	Article
                47.	
                The
                  Cooperative Venture shall try its best to keep the balance of exchange.
                  In
                  the case that the foreign exchange is insufficient, it shall be
                  used in
                  the following orders:

              

      

       

      1.
         Maintaining
        the necessary balance for daily business.

      2.
         Repaying
        the principle of foreign exchange loan with interest.

      3. 
        Importing
        the necessary equipment, goods and materials.

      4. 
        Profit
        distribution for both parties.

       

       

      Chapter
        XIV    Labor
        Management

       

      
        	Article
                48.	
                As
                  to the employee’s recruitment, training, dismiss, wage, labor insurance,
                  welfare or reward and penalty, it should be handled and conducted
                  in
                  accordance with the Labor Management Provisions on Sino-foreign
                  Cooperative Venture, PRC and its enforcement regulations. At the
                  same
                  time, the above-mentioned items shall be decided by the board of
                  directors
                  and shall be stipulated in detail in the personal labor contract
                  or
                  collective labor contract signed by the Cooperative
                  Venture.

              

      

       

      The
        signed labor contract shall be submitted to the local labor authority for
        record.

       

      
        	Article
                49. 	
                The
                  Cooperative Venture is entitled to sign the labor contract with
                  the
                  employee in person or to sign a collective labor
                  contract.

              

      

       

      
        	Article
                50.	
                In
                  the case when the Cooperative Venture plans to recruit a Chinese
                  employee,
                  the candidate shall be assessed from his education, foreign language
                  level, know-how and technical skill, health condition and professional
                  ethics. Only the qualified and outstanding candidate can be recruited.
                  

              

      

       

      
        	Article
                51. 	
                The
                  employment, wage, labor insurance, welfare, standard of travelling
                  expenses of the senior management staff nominated by both parties
                  shall be
                  decided by the board meeting after
                  discussion.

              

      

       

       

      Chapter
        XV    Profit
        Distribution and Loss Share

       

      
        	Article
                52.	
                As
                  to the profit or loss after income-tax-paid and funds-taken-out,
                  it should
                  be allocated or shared in proportion to 25% for Party A and 75%
                  for Party
                  B.

              

      

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      
        	Article
                53. 	
                The
                  profit Cooperative Venture obtained shall be used in priority as
                  an
                  imbursement of Party B’s investment. At the same time, in order to
                  compensate Party A’s costs and expenses in providing service to the
                  Cooperative Venture hereof, Party B hereby agrees that from the
                  issuing
                  date of business license, the Cooperative Venture shall pay Party
                  A RMB
                  150,000 (RMB one hundred and fifty thousand) each year, up to the
                  time
                  when the profit Party A obtained from the Cooperative Venture exceeds
                  RMB
                  150,000 (RMB one hundred and fifty
                  thousand).

              

      

       

       

      Chapter
        XVI    Confidentiality

       

      
        	Article
                54.	
                Both
                  parties and their employees shall, during and for a period of five
                  (5)
                  years after the termination or expiration of this Contract, keep
                  strict
                  secret against the data or any other materials obtained from the
                  other
                  party and shall not disclose to outsider or the third party unless
                  for the
                  necessary of execution of the Contract.

              

      

       

       

      Chapter
        XVII    Termination
        and Liquidation

       

      
        	Article
                55.	
                In
                  either of the following cases, the Cooperative Venture can be
                  terminated:

              

      

       

      
        	                       
                1.	
                The
                  cooperation expires.

              

      

      
        	                       
                2.	
                The
                  Cooperative Venture can not maintain normal operation for more
                  than six
                  (6) months due to the great losses caused by force majeure set
                  forth in
                  Chapter XX hereof.

              

      

      
        	                       
                3.	
                The
                  Cooperative Venture can not continue the operation due to any party
                  fails
                  to execute his duties under the Contract and the Articles of Association,
                  and such failure is subject to the breach set forth in Chapter
                  XIX hereof
                  and furthermore, the party in breach fails to remedy the loss in
                  an
                  effective way within sixty (60) days upon the receipt of written
                  notice
                  from the other party.

              

      

      
        	                       
                4.	
                The
                  Cooperative Venture sustains losses for successive five (5) years
                  during
                  the period of operation and is disable to repay the mature
                  debts.

              

      

      
        	                       
                5.	
                The
                  Cooperative Venture can not meet its main business objectives while
                  is
                  disable to repay the mature debts.

              

      

      
        	                       
                6.	
                The
                  Cooperative Venture can not meet its main business objectives while
                  is
                  uncertain in the future’s
                  development.

              

      

       

      As
        to the
        Sub-clauses 2, 4, 5 and 6 herein, it shall be approved by all the members
        of
        board of directors and shall be reported to the original approval authority
        for
        termination of the cooperation and dissolution of the Contract.

       

      As
        to the
        Sub-clause 3 herein, the observant party, apart from being entitled to claim
        to
        the party in breach, is also entitled to declare to the arbitration authority
        described hereinafter for termination of the cooperation and dissolution
        of the
        Contract.

       

      
        	Article
                56.	
                In
                  the case that the Cooperative Venture is terminated, the board
                  of
                  directors shall immediately propose a procedure and principle for
                  liquidation and the composition of liquidation committee, and shall
                  submit
                  to the competent authority for examination.

              

      

       

      
        	Article
                57.	
                During
                  the liquidation, the liquidation committee shall act for the Cooperative
                  Venture to prosecute and respond to any prosecution.
                  

              

      

       

      
        	Article
                58.	
                The
                  liquidating expenses and the compensation to the members of liquidation
                  committee shall be paid in priority from the existing financial
                  account of
                  the Cooperative Venture. Upon all the debts of the Cooperative
                  Venture are
                  discharged by the liquidation assets, the residual assets shall
                  be
                  allocated in proportion to the amount of capital both parties described.
                  In the case that the Contract is terminated prematurely, all the
                  properties of Cooperative Venture shall be liquidated as per the
                  value on
                  the date of termination, and shall be allocated in proportion to
                  the
                  amount of capital both parties described after all the debts of
                  Cooperative Venture are discharged.

              

      

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      Chapter
        XVIII    Liabilities
        for Breach the Contract

       

      
        	Article
                59.	
                Should
                  Party A fail to execute his duties under Chapter V and Chapter
                  VI of this
                  Contract, the observant party shall be entitled to claim indemnity
                  from
                  the party in breach and may terminate the Contract as per Article
                  55
                  hereof.

              

      

       

      
        	Article
                60.	
                Should
                  Party B fail to subscribe the capital on the date and in the amount
                  described in Chapter V hereof, a penalty of 0.03 percent of the
                  total
                  payable capital shall be paid by the party in breach to Party A
                  for each
                  day’s delay. Should such delay exceed three (3) months, then apart
                  from
                  the total penalty, the observant party is also entitled to terminate
                  the
                  Contract as per Article 55 hereof and to claim indemnity from the
                  party in
                  breach.

              

      

       

       

      Chapter    XIX Force
        Majeure

       

      
        	Article
                61. 	
                Should
                  any force majeure circumstance arise preventing any party to fulfill
                  his
                  respective obligations under the Contract or under any other stipulations,
                  including but not limited to, earthquake, typhoon, flood, war and/or
                  any
                  other matters beyond the prevision and control of the parties,
                  the party
                  who suffered from these circumstances shall immediately inform
                  the other
                  party by telex, and shall render the valid certificates issued
                  by the
                  notary body where such circumstance arisen with fifteen (15) days,
                  testifying such circumstance in detail and the reason impossible
                  to
                  execute part or all the Contract, or the reason delaying the execution
                  of
                  the Contract. According to the severity, both parties shall decide
                  either
                  to terminate the Contract, or to exempt part obligations under
                  the
                  Contract, or to delay the execution of the
                  Contract.

              

      

       

       

      Chapter    XX Insurance

       

      
        	Article
                62. 	
                Any
                  or all the insurance of Cooperative Venture shall be procured within
                  the
                  People’s Republic of China. The insuring method, type of risks, value
                  of
                  insurance and period of insurance shall be decided by the board
                  of
                  directors in accordance with the relevant regulations of
                  PRC.

              

      

       

       

      Chapter
        XXI    Modification,
        Alteration and Termination of the Contract

       

      
        	Article
                63. 	
                No
                  modification to this Contract and its attachment shall be valid
                  unless in
                  writing and signed by both parties and approved by the original
                  approval
                  authority. 

              

      

       

      
        	Article
                64. 	
                During
                  the period of validity, should the Contract can not be executed
                  due to
                  force majeure hereof, or should the Cooperative Venture sustain
                  successive
                  losses and disable to continue the operation, the Contract may
                  be
                  terminated or cancelled upon the approval of all the members of
                  board of
                  directors and original approval
                  authority.

              

      

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      
        	Article
                65. 	
                Should
                  the Cooperative Venture can not continue the operation or can not
                  meet its
                  business purpose due to any party fails to execute his duties under
                  the
                  Contract and/or the Articles of Association, or due to his breach
                  against
                  the Contract and/or the Articles of Association hereof, the Contract
                  may
                  be deemed as terminated by the party in breach unilaterally. In
                  this case,
                  the observant party shall be entitled to lodge a claim against
                  the party
                  in breach and shall be entitled to terminate the Contract upon
                  approval of
                  the original approval authority. If both parties agree to continue
                  the
                  operation hereinafter, the party in breach shall indemnify any
                  or all the
                  losses imposed on the Cooperative
                  Venture.

              

      

       

       

      Chapter
        XXII    Governing
        Laws

       

      
        	Article
                66. 	
                This
                  Contract shall be governed by and constructed in accordance with
                  the laws
                  of the People’s Republic of China. Its effectiveness, interpretation and
                  settlement of disputes shall also be governed by the laws of the
                  People’s
                  Republic of China. 

              

      

       

       

      Chapter
        XXIII    Settlement
        of Disputes

       

      
        	Article
                67.	
                Any
                  dispute which arise out or in connection with the Contract or its
                  execution shall be settled by means of amicably negotiations. If
                  the
                  parties cannot reach a settlement amicably within a period of sixty
                  (60)
                  days, then such dispute shall be submitted for settlement to Beijing
                  Arbitration Commission, in accordance with its arbitration rules
                  hereof.
                  The awards of Beijing Arbitration Commission are final and binding
                  up both
                  parties.

              

      

       

      During
        the arbitration proceedings, performance of other parts out of disputes of
        the
        Contract shall continue. 

       

       

      Chapter
        XXIV    Language
        of the Contract

       

      
        	Article
                68.	
                This
                  Contract shall be made both in Chinese and in English, in the case
                  where
                  there is any discord in both versions, the version in Chinese shall
                  prevail.

              

      

       

       

      Chapter
        XXV    Coming
        into Force and Miscellaneous

       

      
        	Article
                69. 	
                The
                  Articles of Association of Cooperative Venture, formulated in accordance
                  with the principles and requirements of this Contract, shall be
                  as
                  attached to this Contract as its
                  attachment.

              

      

       

      
        	Article
                70.	
                This
                  Contract, together with its attachment, shall come into force as
                  of the
                  date approved by Beijing Foreign Trade and Economics
                  Committee.

              

      

       

      
        	Article
                71.	
                Any
                  notice sent by either party to the other party by telex or fax,
                  if it
                  involves any rights and liabilities of any party, shall be sent
                  subsequently in the form of writing letter. The addresses for notice
                  shall
                  be the legal addresses of both parties set forth in this
                  Contract.

              

      

       

       

      
        	Article
                72.	
                This
                  Contract is made in quadruplication, both in Chinese and in English.
                  Party
                  A and Party B shall hold each two in Chinese and in English with
                  equal
                  force therewith.

              

      

       

      
        	Article
                73.	
                In
                  witness whereof, both parties have caused this Contract to be executed
                  by
                  their respective legal representative or authorized representative
                  on May
                  9, 1997 in Beijing, China. 

              

      

       

       

      Beijing
        Wanlong Economic Consulting
        Ltd.                      
        Canada
        Belford Enterprises Ltd.

      Legal
        Representative: Duan
        Zemin                                  
        Legal
        Representative: John Hui

       

      May
        9,
        1997

      

      

      
        
          
          

        

        
          11

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