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exv10wk

 

EXHIBIT 10(k)

COOPERATION AGREEMENT

     This Cooperation Agreement (this “Agreement”) is entered into by and among
the following parties (together, the “Parties”) in Beijing in the People’s
Republic of China (“China” or “PRC”) on February 27, 2004:

Party A: e-Smart Technologies, Inc., a corporation incorporated under the laws
of the State of Nevada, U.S.A.;

Party B: Guo Xin Well-tel Technology Co., Ltd., a limited liability
company organized and registered in Beijing, China;

Party C: EarthNetMedia Trading Corporation, a limited liability company
organized and registered in Shanghai, China, or its Chinese nominees.

     WHEREAS, Party A has the exclusive license to promote and operate the
Biometric Verification Security SystemTM (the “System”), which utilizes certain
core technologies including the Super Smart CardTM and prontDOUGHTM as well as
other related technologies (the “Technologies”) in China (the “Project”), and
the ability to obtain the financing necessary for the Project;

     WHEREAS, Party B is a company organized by and majority owned by an agency
of the Ministry of Information Industry, and has the ability, resource and
experience in working with the Chinese government to assist with the entrance
of party A’s products and technologies into the Chinese market;

     WHEREAS, Party C has the ability to assist Party A and Party B with the
cooperation contemplated by this Agreement and the ability to facilitate the
promotion of Party A’s products and technologies in China by Party A, Party B
and the Joint Venture (as defined below); and

     WHEREAS, the Parties agree to establish a Sino-foreign cooperative joint
venture (the “Joint Venture”) in Beijing, China in connection with the Project
under this Agreement.

     NOW, THEREFORE, the Parties agree as follows after friendly consultation
with each other:

I. The Purpose of the Joint Venture shall be to:

	1.	 	operate a value added network or networks that allow for
the nationwide roaming and operation of Party A’s Biometrically powered
multi-application smart cards(i.e., the Super Smart CardTM) in China;
	 
	2.	 	provide the Systems and Technologies to Chinese customers
and promote, to the maximum extent practicable, the use of the Systems
and Technologies in the financial sector;

 

 

	3.	 	promote the System and Technologies to the maximum extent
possible in China so as to maximize the usage of same in as many fields as
possible; and
	 
	4.	 	establish The rights and responsibilities of the Parties
in the Joint Venture.

II. Rights and responsibilities of the parties:

	1.	 	Party A shall have the following rights and responsibilities:

	(1)	 	Party A shall, pursuant to the Chinese law,
contribute 15% of the
registered capital of the Joint Venture, i.e., the amount of
U.S. dollars in cash equivalent to 3.75 million Chinese Yuan, as
part of the registered capital that Party A has agreed to pay,
within three months after the date on which the Joint Venture
obtains a legal and effective business license. Party A shall
contribute the remaining registered capital pursuant to the timeline
provided by the relevant Chinese laws, or earlier depending on the
operational needs of the Joint Venture.
	 
	(2)	 	After the establishment of the Joint Venture, the
Joint Venture shall hire Party A to provide products suitable for sale in
China, and technologies, technology support and after-sales
services on terms to be agreed upon between Party A and the Joint
Venture.
	 
	(3)	 	Party A shall assist Party B in negotiations with
Chinese government agencies and enterprises to cause them to use
Party A’s products and technologies.
	 
	(4)	 	If, in the future, it becomes necessary for Party
A to enter into additional Sino-foreign cooperative joint ventures for the
goals of this Project, Party B and Party C shall have the right to be
included as partners in such joint ventures.
	 
	(5)	 	Party A owns the exclusive licenses to provide
and operate the System and the Technologies in China and the Joint Venture,
Party B and Party C shall respect and protect the rights of
Party A related to such licenses in China.
	 
	(6)	 	Party A has the right to supervise the Joint
Venture’s use of the funds.
	 
	(7)	 	After consultation with Party B, Party A has the
right to set the Joint Venture’s strategies and guidelines for its operations
in the Chinese market, and supervise the execution of such
strategies and guidelines.

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	(8)	 	Party A shall pay Party B US$10,000 per month for the three
months after the effective date of this Agreement. This amount
shall be used to pay for the cost of providing the initial office
premises to the Joint Venture on an adequately staffed and
equipped basis at the offices of Party B, organizing and obtaining
the necessary and required government approvals for the creation
of the Joint Venture, conducting relevant research and feasibility
study for the Joint Ventureand, generally, to do all things
necessary and proper prior to the establishment of the Joint
Venture necessary to facilitate its earliest possible creation of
and
the business of the Joint Venture. In the event that the Joint
Venture is created in three months or less after the effective
date
of this Agreement, Party A shall extend its payment of
US$10,000 per month to Party B until such time as the Joint
Venture receives its initial capitalization. Upon creation and
capitalization of the Joint Venture, the Joint Venture shall pay
Party B US$10,000 per month to compensate Party B for its
cooperation under this Project.
	 
	 	 	Notwithstanding the foregoing, however, if the Joint Venture is
not able to obtain the required temporary business license within
three months after the effective date of this Agreement, Party A
has the right to decide how to proceed and Party B and Party C
shall cooperate accordingly.
	 
	(9)	 	Party A has the right to receive 20% of the Joint Venture’s
gross operating income as compensation for the products, technologies
and services that Party A shall provide to the Joint Venture.

	2.	 	Party B shall have the following responsibilities:

	(1)	 	Party B shall use its resources and relationship with the
relevant departments and agencies of the Chinese government to promote
Party A’s products and technologies in all relevant Chinese
government agencies and relevant industries, and to apply for and
obtain all necessary and proper licenses, approvals and permits
within China for the lawful operation of the Joint Venture.
	 
	(2)	 	Party B shall assist Party A in negotiations with relevant
Chinese
government agencies and enterprises to cause them to use Party
A’s products and technologies.
	 
	(3)	 	Party B shall assist Party A in completing the study of
relevant
network infrastructure and all related issues, provide statistical
information necessary for the fullest development of the Chinese
market, and assist the Joint Venture in setting market strategies

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	 	 	and related investment plans, and establishing cooperative
relationships with agencies and enterprises in relevant industries.
	 
	(4)	 	Party B shall respect Party A’s intellectual property, and help
Party A in preventing its technologies from being imitated,
copied or stolen by other Chinese enterprises.
	 
	(5)	 	If, in the future, it becomes necessary for Party
A to enter into additional joint ventures for the goals of this Project,
Party B shall have the right to be included as a partner in such
joint ventures.
	 
	(6)	 	Party B has the right to send not more than four
people to the headquarters of Party A in the United States within 90 days
after the establishment of the Joint Venture for the purpose of
training and learning the technologies of Party A. The duration of
such trip shall not exceed 12 days and the expenses shall be
borne by the Joint Venture.
	 
	(7)	 	After the signing of this Agreement, Party B
shall immediately start promoting the System and Technologies among the
relevant Chinese government agencies and department pursuant to this Agreement.

	3.	 	Party C has the following rights and responsibilities:

	(1)	 	Party C shall coordinate and expedite the
cooperation between Party A and Party B.
	 
	(2)	 	Party C shall assist Party A, Party B and the
Joint Venture in obtaining the required documentation for obtaining the
financing for the Joint Venture and Project.
	 
	(3)	 	Party C shall fully use its resources to assist
Party A, Party B and the Joint Venture to fulfill the Joint Venture’s goals with
respect the Chinese market.

III. Other matters related to the Joint Venture Company

	1.	 	The registered capital of the Joint Venture shall be 25
million Chinese
Yuan.
	 
	2.	 	Party A shall have 50% of the shares of the Joint Venture,
Party B shall
have 30% of the shares of the Joint Venture, and Party C shall have
20% of the shares of the Joint Venture.
	 
	3.	 	The Joint Venture shall have the right to use Party A’s
technologies in
accordance with the terms of the licensing agreement to be entered
into by the Joint Venture and Party A.

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	4.	 	The composition of the board of directors and management team of
the Joint Venture shall be determined by the Parties through
consultation with each other.
	 
	5.	 	Expenses incurred by Party A for the establishment of the
Joint Venture, including legal fees, should be borne by the Joint Venture in
accordance with the law. The Joint Venture shall reimburse Party A for such
expenses immediately after the Joint Venture receives the initial
capital contribution. Party A shall present receipts acceptable to
accountants registered in China for such reimbursement.

IV. Other issues

	1.	 	This Agreement shall be the only agreement among the Parties
until it is
replaced by a new agreement in writing and duly signed by the
parties
duly authorized representatives. No Party shall revise this
Agreement
without the written consent of all Parties. This Agreement shall
become legally binding after it is signed by persons authorized by the
parties,
	 
	2.	 	The Parties shall keep confidential all information contained
in this Agreement; Party B and Party C shall keep confidential all
technological
information that Party A has disclosed to Party B and/or Party C
during the negotiations leading to this Agreement. However, since Party A
is a U.S. listed public company, Party A shall have the right to
disclose any information contained in this Agreement without the written consent
of Party B or Party C pursuant to the requirements of the relevant
governmental and listing obligations.
	 
	3.	 	Governing laws; Jurisdiction; Venue

	(1)	 	This Agreement will be construed, and the rights
and obligations
under this Agreement determined, in accordance with the laws
of the PRC.
	 
	(2)	 	In the event of any dispute arising from, or in
connection with this Agreement, the relevant parties shall first attempt to
resolve the dispute through friendly consultations. In the event
that satisfactory resolution is not reached within sixty (60)
days after commencement of such consultations, the dispute shall be
submitted (which submission may be made by any of the
Parties) for resolution by arbitration administered by the China
International Economic and Trade Arbitration Commission (the
“Commission”) in Beijing, PRC, in accordance with the
procedural rules of the Commission which are in effect at
the time the application for arbitration is made.
	 
	(3)	 	There shall be three arbitrators, one of whom
shall be appointed by party A, one of whom shall be appointed by
Party B, and
the

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	 	 	third arbitrator, who shall be the presiding arbitrator,
shall be appointed according to the mutual decision of Party
A and Party B. In the event the Parties do not mutually agree
on a presiding arbitrator within twenty (20) days after each
Party has been notified by the Commission regarding the
selection of the two party-appointed arbitrators, the
presiding arbitrator shall be appointed by the Chairman of
the Commission. The presiding arbitrator may not be a
national of either the PRC or the U.S. but only from a
neutral third party nationality. The arbitral award shall be
final and binding upon all parties hereto.

	4.	 	This Agreement is prepared in Chinese and English, and the
English and
Chinese versions have equal legal effect. There shall be three
Chinese and three English originals. In case of any discrepancy between the
Chinese and English versions, the Chinese version shall govern.
	 
	5.	 	This Agreement is effective as of March 1, 2004, after being
executed by persons authorized by the Parties.

Party A: e-Smart Technologies, Inc.

	 	 	 
	Authorized
Person: 

	 	/s/
	

	 	

	 
	 	 
	Date: 27/02/2004
	 	 

Party B: Guo Xin Well-tel Technology Co., Ltd.

	 	 	 
	Authorized
Person: 

	 	/s/

	 
	 	 
	Date: 2004.2.27
	 	 

Party C: EarthNetMedia Trading Corporation

	 	 	 
	Authorized
Person: 

	 	/s/

	 
	 	 
	Date: 2.27.2004
	 	 

6exv10wl

 

Exhibit 10(l)

MUTUAL COOPERATION AGREEMENT

This Mutual Cooperation Agreement (the “Agreement”) made and entered into this
25th day of February, 2004 by and Between Daewoo International Corporation, a
corporation duly organized under the laws of the Republic of Korea and having
its principal place of business at 541 Namdaemunno 5-ga, Chung-gu, Seoul, Korea
(“DWI”) and e-Smart Korea Inc., a corporation duly organized under the laws of
the Republic of Korea and having its principal place of business at 642-9,
Songchon B/D 9F, Yeoksam-dong, Gangnam-gu, Seoul, Korea (“e-Smart”)
(hereinafter individually referred to as the “Party” and collectively referred
to as the “Parties”.)

WITNESSETH THAT:

WHRERAS, DWI is an international trading company having much experience as a
project developer and organizer having great interest in participating in
national identification smartcard projects and is desirous of utilizing its
marketing expertise, its business facilities and its IT implementation
abilities to support e-Smart to implement the Project (as hereinbelow defined)
to the extent of DWI’s ability;

WHRERAS, e-Smart has an unique biometric smartcard technology and operating
system particularly well suited for national identification card projects as
well as the necessary technical facilities, experience and capabilities
necessary to engage in such projects when working with a qualified
implementation partner such as DWI;

WHEREAS, the Parties wish to closely collaborate with each other for any and
all matters related to mutually agreed specific National Identification Card
and other mutually agreed specific Smart Card Projects (the “Projects”) for
the mutual benefit of the Parties in the territories, including but not
limited to:

Taiwan, Philippines, Vietnam, Australia, Indonesia, Bangladesh, India,
Myanmar, Russia, Uzbekistan, Turkey, Israel, Arab Emirates, Iran, Iraq,
Jordan, Egypt, Algeria, Morocco, Kenya, Nigeria, Angola, South Africa
(always subject to relevant export licensing and control if applicable).

NOW, THEREFORE, in consideration of the premises and covenants contained
herein, the Parties hereto agree as follows:

	l.	 	The Parties have engaged in preliminary discussion in connection with
mutual cooperation for the Project and wish to set forth their basic
understanding and intents therefor.

	2.	 	In the spirit of mutual understanding and fairness, DWI and e-Smart
shall diligently and adequately promote for the mutual benefit of the
Parties hereto and in case by

 

 

	 	 	case manner negotiate in good faith the terms and conditions of a formal
agreement for the implementation of each and any mutually agreed
specific project falling under the definition of the Projects herein.
	 
	3.	 	Each Party agrees to hold in confidence all the commercial and technical
information, documents and other unpublished information in relation to the Projects (the
“Confidential Information”) disclosed to it by the other Party under this
Agreement,
and not to disclose such Confidential Information to any third party without
prior written consent of disclosing Party.
	 
	4.	 	Each Party shall, unless otherwise agreed among the Parties in writing,
bear his own costs and expenses incurred by himself for the performance of this Agreement,
including but not limited to, teaming discussion, proposal preparation and
submission.
	 
	5.	 	Neither Party shall assign or transfer his obligations, rights and/or
interests herein without the prior written consent of the other Party.
	 
	6.	 	This Agreement shall become effective upon execution of the duly
authorized representatives of the Parties hereto and continues in force for two (2)
year.
	 
	7.	 	This Agreement shall be governed by and construed in all respects in
accordance with the laws of the Republic of Korea. All disputes, controversies or differences
which may arise out of or in connection with this Agreement, or for the breach
thereof, shall be finally settled by arbitration in SEOUL, KOREA in accordance with the
Commercial Arbitration Rules of the Korean Commercial Arbitration Board. The
arbitration panel shall consist of three (3) members the chairman of which
shall be from a neutral country and background. The award rendered by the
arbitrators shall be final and binding upon the Parties concerned.
	 
	8.	 	No terms and conditions of this Agreement shall be changed, altered or
modified unless agreed upon in writing by the Parties hereto.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed
on the day and year first above written.

	 	 	 
	For and on behalf of

	 	For and on behalf of
	Daewoo International Corporation

	 	e-Smart Korea Inc.

	 	 	 
	-s- Chang-Rae Kim

	 	-s- Richard IK Kim
	
 

	 	
 
	Chang-Rae Kim

	 	Richard IK Kim
	Executive Vice President

	 	Managing Director

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