Document:

EXHIBIT 10

EXHIBIT 10.5

JOINT VENTURE OPTION AGREEMENT

THIS AGREEMENT MADE EFFECTIVE AS OF THE 30th DAY OF JANUARY, 2007 (the "Effective Date").

BETWEEN:

WORLD FORTUNE ENTERPRISE INC., a private corporation with offices at  870 East 54th Ave, Vancouver, British Columbia, V5X 1L7, Canada;

(“World Fortune”)

AND:

ASIAN DRAGON GROUP INC., a publicly traded corporation with offices at suite 1100 – 475 Howe Street, Vancouver, British Columbia, V6C 2B3;

(“Asian Dragon”) 

WHEREAS World Fortune is a private British Columbia corporation established to source and assess opportunities in the precious metals industry in China;

AND WHEREAS World Fortune has entered into an agreement (the “JV Agreement”) for the establishment of a Sino-Foreign Joint Venture (the “JV”) with the People’s Republic of China (“PRC”) and in particular the Gold Bureau of the PRC, through which World Fortune will hold a 70% equity position in the JV named Sanmenxia Yunjiu Investment and Consulting Company Limited. (“Sanmenxia”);

AND WHEREAS Sanmenxia is the owner of certain assets known as the Lingbao Jinshan Gold Mine in the Xiaoqinling Region of China (the “Assets”) of which World Fortune holds a 70% equity interest (the “Rights”);

AND WHEREAS the Rights, optioned herein to Asian Dragon by World Fortune, entitle Asian Dragon to administer the Assets and hold a 70% equity interest in the Assets in exchange for total investment of US$3,000,000 and a grant of Asian Dragon common shares to World Fortune.  

AND WHEREAS World Fortune wishes to option to Asian Dragon and Asian Dragon wishes to option from World Fortune, World Fortune’s Rights to the Assets (the “Option”) and upon execution of this Agreement, World Fortune will register this Option with the PRC and Sanmenxia.

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the covenants and agreements herein contained, the parties hereto do covenant and agree (the "Agreement") each with the other as follows:

1.

Representations and Warranties of World Fortune

1.1

In order to induce Asian Dragon to enter into this Agreement and complete the transactions contemplated under this Agreement, World Fortune represents and warrants to Asian Dragon that:

(a)

World Fortune is, and will remain during the term of this Agreement until formal assignment is made to Asian Dragon, the registered and beneficial owner of Rights pursuant to the JV and such Rights are free and clear of all transfer, assignment or other restric­tions, liens, charges and encumbrances of any kind whatso­ever;

(b)

World Fortune has good and sufficient right and authority to enter into this Agreement and carry out its obligations hereunder; and

(c)

World Fortune has, and will have at the time the Option is exercised, good and sufficient right and authority to transfer its legal and beneficial title and ownership of the Rights to Asian Dragon.

1.2

The representations and warranties of World Fortune contained in this Agreement shall be true at the time of closing as though such representations and warranties were made at the time of closing.

2.

Representations and Warranties of Asian Dragon

2.1

In order to induce World Fortune to enter into this Agreement and complete the transactions contemplated under this Agreement, Asian Dragon represents and warrants to World Fortune that Asian Dragon has good and sufficient right and authority to enter into this Agreement and has, and will have at the time the Option is exercised, good and sufficient right and authority to carry out its obligations contemplated under this Agreement.

2.2

The representations and warranties of Asian Dragon contained in this Agreement shall be true at the time of closing as though such representations and warranties were made at the Time of Closing.

3.

Option

3.1

Subject to the terms of this Agreement, World Fortune hereby grants to Asian Dragon the irrevocable Option to acquire World Fortune’s full Rights to the Assets, such Option to be exercised by Asian Dragon pursuant to the following schedule:

(a)

deposit of US$50,000 to Sanmenxia, through World Fortune, within 14 days of issuance of the Joint Venture Business License (the “JVL”) by the PRC;

(b)

deposit of US$250,000 to Sanmenxia, through World Fortune, within 45 days from the issuance of the JVL by the PRC;

(c)

deposit of a further US$300,000 to Sanmenxia, through World Fortune, within 6 months from the issuance of the JVL by the PRC; and

(d)

deposit of the balance of US$2,400,000 to Sanmenxia, through World Fortune, within three years year from the initial deposit.

3.2

As consideration for World Fortune granting this Option to Asian Dragon, Asian Dragon has agreed to issue to World Fortune 250,000 shares in the capital stock of Asian Dragon (the “World Fortune Shares”), such World Fortune Shares to be issued to World Fortune upon payment of the final deposit of US$2,400,000, made by Asian Dragon.  

3.3

In order to exercise the Option, Asian Dragon shall, no later than the dates noted above, make such payments to Sanmenxia.

4.

General

4.1

Time and each of the terms and conditions of this Agreement shall be of the essence of this Agreement.

4.2

The recitals to this Agreement constitute a part of this Agreement.

4.3

This Agreement constitutes the entire Agreement between the parties hereto in respect of the matters referred to herein and there are no representations, warranties, covenants or agreements, expressed or implied, collateral hereto other than as provided for herein.

4.4

No alteration, amendment, modification or interpre­tation of this Agreement or any provision of this Agreement shall be valid and binding upon the parties hereto unless such altera­tion, amendment, modification or interpretation is in written form executed by both of the parties hereto.

4.5

Whenever the singular or masculine is used in this Agreement the same shall be deemed to include the plural or the feminine or the body corporate as the context may require.

4.6

The parties hereto shall execute and deliver all such further documents and instruments and do all such acts and things as either party may, either before or after the Closing Date, reasonably require in order to carry out the full intent and meaning of this Agreement.

4.7

Any notice, request, demand or other communication, or any delivery, to be given or made under this Agreement as the case may be, shall be in writing and shall be delivered by hand or by telecopier to the parties at their addresses set forth on the first page of this Agreement or to such other addresses as may be given in writing by the parties hereto in the manner provided for in this paragraph, and shall be deemed to have been delivered, if delivered by hand, on the date of delivery, or if delivered by telecopier, on the day that it is sent.

4.8

This Agreement shall not be assigned by a party hereto without the written permission of the other party.

4.9

This Agreement shall be subject to, governed by, and construed in accordance with the laws of the Province of British Columbia.

4.10

This Agreement may be signed by the parties in as many counterparts as may be deemed necessary, each of which so signed shall be deemed to be an original, and all such counterparts together shall constitute one and the same instrument.

IN WITNESS WHEREOF the parties hereto have hereunto set their hands and seals as of the Effective Date first above written.

	SIGNED, SEALED & DELIVERED 

by WORLD FORTUNE ENTERPRISE INC., in the presence of:

Signature of Witness

Name of Witness:  

Address of Witness:  

Occupation of Witness:  

	)

)

)

)

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/s/ Richard Tong

)

WORLD FORTUNE ENTERPRISE INC.

)

per: Richard Tong, Director

)

)

)

)

)

)

)

	SIGNED, SEALED & DELIVERED 

by ASIAN DRAGON GROUP INC., in the presence of:

Signature of Witness

Name of Witness:  

Address of Witness:  

Occupation of Witness:  

	)

)

)

)

)

/s/ John Karlsson

)

ASIAN DRAGON GROUP INC.

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per: John Karlsson, Director

)

)

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)Exhibit 10.8

Summary of
Non-Employee Director and Named Executive Officer Compensation Arrangements

Director Compensation

The
following table sets forth current rates of cash compensation for non-employee
directors:

	
  Annual Retainer:

  	
   

  	
   

  	
   

  
	
  Chairman

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  Non-employee directors other than Chairman

  	
   

  	
  $

  	
  24,000

  	
   

  
	
  Committee Chair
  Annual Retainer:

  	
   

  	
   

  	
   

  
	
  Audit Committee

  	
   

  	
  $

  	
  12,000

  	
   

  
	
  Compensation Committee

  	
   

  	
  $

  	
  6,000

  	
   

  
	
  Nominating and Governance Committee

  	
   

  	
  $

  	
  6,000

  	
   

  
	
  Board Meeting Attendance Fees

  	
   

  	
  $

  	
  1,500

  	
   

  
	
  Committee Meeting
  Attendance Fees

  	
   

  	
  $

  	
  1,500

  	
   

  

 

In addition to cash compensation, under the terms of
our Stock Appreciation Rights Plan non-employee directors receive an annual
award of 2,700 stock appreciation rights. Non-employee directors received an
award of 5,000 stock appreciation rights when the Stock Appreciation Rights
Plan was approved at the 2004 Annual Meeting of Shareholders and each new
director will receive an award of 5,000 stock appreciation rights upon initial
election by the shareholders. The price and terms of stock appreciation rights
are established by our Board of Directors’ Compensation Committee. Stock
appreciation rights are historically granted at the reported market value of a
Cascade share at the grant date, become exercisable on an annual basis ratably
over four years, and have a 10-year term.

Non-employee directors are
also reimbursed for travel and other expenses attendant to membership on the
Cascade board.

Executive Compensation

Base Salary.   All of Cascade’s named executive
officers are at-will employees whose compensation and employment status may be
changed at any time by the Board of Directors. Base salary increases are
determined annually by the Board of Directors and become effective on February 1
of each year. The following table sets forth the current base salaries of
Cascade’s executive officers and their titles as of the date of filing of
Cascade’s Form 10-K for the fiscal year ended January 31, 2007:

	
  Named Executive Officer

  	
   

  	
   

  	
   

  	
  Fiscal 2008

  Base Salary

  	
   

  
	
  Robert C.
  Warren, Jr., President and Chief
  Executive Officer

  	
   

  	
   

  	
  $

  	
  500,000

  	
   

  	
   

  
	
  Terry H. Cathey, Senior Vice President and Chief Operating Officer

  	
   

  	
   

  	
  290,000

  	
   

  	
   

  
	
  Richard S.
  Anderson, Senior Vice President and Chief Financial
  Officer

  	
   

  	
   

  	
  290,000

  	
   

  	
   

  
	
  Gregory S.
  Anderson, Senior Vice President-Human Resources

  	
   

  	
   

  	
  200,000

  	
   

  	
   

  
	
  Joseph G. Pointer, Vice President-Finance

  	
   

  	
   

  	
  200,000

  	
   

  	
   

  

 

Annual Incentive.   The named executive officers are
also eligible to receive an incentive payment following the end of each fiscal
year under an executive incentive plan approved by Cascade’s Board of
Directors. Fiscal 2007 incentives approved for the executive officers are shown
in the following table:

	
  Named Executive Officer

  	
   

  	
   

  	
   

  	
  Fiscal 2007

  Incentive

  	
   

  
	
  Robert C.
  Warren, Jr., President and Chief
  Executive Officer

  	
   

  	
   

  	
  $

  	
  579,600

  	
   

  	
   

  
	
  Terry H. Cathey, Senior Vice President and Chief Operating Officer

  	
   

  	
   

  	
  324,000

  	
   

  	
   

  
	
  Richard S.
  Anderson, Senior Vice President and Chief Financial
  Officer

  	
   

  	
   

  	
  324,000

  	
   

  	
   

  
	
  Gregory S.
  Anderson, Senior Vice President-Human Resources

  	
   

  	
   

  	
  198,000

  	
   

  	
   

  
	
  Joseph G. Pointer, Vice President-Finance

  	
   

  	
   

  	
  198,000

  	
   

  	
   

  

 

Annual executive incentive payments are structured to
encourage the building of shareholder value by maximizing Cascade’s pre-tax
income. The incentive payments of the
executives named above were made under an executive incentive plan for the
fiscal year ended January 31, 2007, under which the executives were
eligible to receive a specified percentage (depending on position) of pre-tax
income before non-recurring items, incentive payments and certain other
expenses (“IBT”) if IBT exceeded $36 million. The percentage of IBT each
executive was entitled to receive increased if IBT exceeded $45 million, and
increased again if IBT exceeded $65 million. Annual incentive payments are
limited to a maximum award amount for each executive,  IBT for fiscal 2007 was $69.3 million,
resulting in incentive payments to all eligible executive officers of 100% of
the maximum amount participants could have received, with the exception of Mr. Warren,
who suggested to the Compensation Committee and the Board of Directors that his
incentive payment be adjusted downward by 10% due to results from Cascade’s
European operations that were below expectations.

Long-term
Incentive.   The
third component of executive compensation for Cascade’s executive officers is
long-term incentive awards. Long-term incentive awards granted in fiscal 2007
consisted of awards of stock appreciation rights under our Stock Appreciation
Rights Plan. The stock appreciation rights were granted with an exercise price
equal to the fair market value of Cascade’s common stock on the date of the
award, have a term of 10 years and become exercisable ratably over four
years.

The number of stock appreciation rights awarded to named executive
officers in fiscal 2007 are shown in the following table:

	
  Named Executive Officer

  	
   

  	
   

  	
   

  	
  Stock

  Appreciation

  Rights

  Awarded in 

  Fiscal 2007

  	
   

  
	
  Robert C.
  Warren, Jr., President and Chief
  Executive Officer

  	
   

  	
   

  	
  3,500

  	
   

  	
   

  
	
  Terry H. Cathey, Senior Vice President and Chief Operating Officer

  	
   

  	
   

  	
  25,000

  	
   

  	
   

  
	
  Richard S.
  Anderson, Senior Vice President and Chief Financial
  Officer

  	
   

  	
   

  	
  25,000

  	
   

  	
   

  
	
  Gregory S.
  Anderson, Senior Vice President-Human Resources

  	
   

  	
   

  	
  25,000

  	
   

  	
   

  
	
  Joseph G. Pointer, Vice President-Finance

  	
   

  	
   

  	
  17,500

  	
   

  	
   

  

 

Benefit
Plans and Other Arrangements.   Executive officers are also
eligible to participate in Cascade’s broad-based benefit programs generally
available to all salaried employees, including health, disability, life
insurance and defined contribution retirement plan. The executives also receive
certain perquisites offered by Cascade including the use of company automobiles
and tax reimbursements related thereto.

Messrs. Warren, Cathey, and R.S. Anderson are
each a party to a Severance Agreement with Cascade, which are Exhibits 10.3,
10.2, and 10.1, respectively, to Cascade’s Form 10-K for fiscal
2007.

 2

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