Document:

EH EXHIBIT  10.3
b)  10.3  CONTRACT OF ELECTRIC VEHICLE COOPERATION BETWEEN
GUANGDONG EV CO.LTD. AND AMERICAN ELECTRIC AUTOMOBILE COMPANY (ASIA), INC.

CONTRACT OF ELECTRIC VEHICLE COOPERATION

(the Chinese translation shall be used as the final interpretation of this
contract.) The Parties:

GUANGDONG EV CO.. LTD.
of China (hereinafter referred to as GDEV)

and

AMERICAN ELECTRIC AUTOMOBILE COMPANY (ASIA). INC.
of California, USA (hereinafter referred to as AEAC), a subsidiary of American
Electric Automobile Company Inc. of California, USA (hereinafter referred to
as AEAS).

agree on this 25th day of February, 1997 to cooperate to develop and sell
electric vehicles and to carry out related business.

The two parties shall cooperate in trial design of prototypes in this contract
as follows:

Selection Of Vehicle Models: GDEV (together with institutes associated with
GDEV in electric vehicle development) has completed the electric vehicle
conversion of two conventional gasoline-engine vehicle models: the
passenger/goods vehicle model YH6460N from the Guangdong Yuehai Auto Refitting
Factory and a conventional mid-size bus.

New electric vehicle conversion prototypes of the passenger/goods vehicle and
the mid-size bus shall be jointly designed, engineered and assembled by the
two parties together, with AEAC's technical experience providing the main
basis for the design work.

The newly-designed prototype electric vehicle models for the YHG46ON and mid-
size bus shall hereinafter be referred to as the EV64601S1 and EV3230,
respectively.

GDEV shall provide relevant documents and information for each of the two new
prototype electric vehicles' pre-conversion gasoline models.

2.	Design Guidelines: The goal and guidelines for design and production of
the electric vehicles shall be:

     high performance, with low overall cost;
     suitability to the China market;
     utilization of parts from China whenever possible, but parts from the USA
       will be used when deemed more suitable;
     manufacturability;
     minimized cost of vehicle operation;
     minimized cost of vehicle maintenance.

3.     Basic Performance Standards: The economic performance and technical
performance targets for the newly designed electric vehicle models EV6460/S1
and EV3230 shall be as according to the technical contract.

4.     Selection of Parts & ComDonents: Parts and components shall be selected
in such a way as to maximize the technical performance, minimize the overall
cost of the vehicles, and be appropriate for the target markets for which each
vehicle is intended for.

GDEV and AEAC shall jointly discuss the selection of parts and components,
with AEAC taking on the main role in the task of selection. The purchasing
price of parts and components supplied by the two parties shall not be higher
than international market purchasing price.

5.     Design: To assist the designing of the electric vehicle prototypes GDEV
shall supply detailed plans, drawings, specifications and costs of the glider
sub-assemblies, components and parts for each prototype. (The term "glider"
refers here and elsewhere in this agreement to the pre-conversion vehicle
model less any parts associated with the gasoline engine).

6.     Engineering & Assembly: Two model EV6460/S1 prototypes and one model
EV3230 prototype shall be engineered and assembled. AEAC shall send expert
personnel to the Guangdong Yuehai Auto Refitting Factory to work with GDEV on
this task.

7.     Testing & Evaluation: Testing and evaluation of the completed
prototypes shall be performed jointly by GDEV and AEAC. Based on this
evaluation, GDEV shall determine whether or not to proceed with the next step
of forming a joint venture company with AEAC. Upon completion of the testing
and evaluation, one of the model EV6460/S1 electric vehicles will be shipped
to the USA for a period of time to test under USA conditions and to gather
market feedback. Cost of export and shipping will be shared equally by both
parties. After evaluation, any economic liabilities related to vehicle
operation in China shall be the responsibility of GDEV. Any economic
liabilities related to vehicle operation in USA shall be the responsibility of
AEAC.

8.     Division of ExDenses: Costs and expenses incurred in this Section 1
shall be divided as follows

GDEV shall be responsible for:

(i)     Supply of all gliders.

(ii)    Supply of all parts and components from China.

(iii)   The costs of engineering, assembling and testing the prototype
electric vehicles.

AEAC shall be responsible for:

(i)     Supply of all parts and components from the USA and the costs involved

in shipping these to GDEVs factory in China.
(ii)    Costs involved in selection, sourcing and testing of parts and
components from the USA.
(iii) Salaries and travel expenses of AEAC's personnel, including all AEAC

personnel expenses while in China.

Not all of the above expenses shall be included in calculation of investment.

9.     Ownership Of Prototype Electric Vehicles: Prior to commencement of the
joint venture company, each part, component and sub-assembly of the three
prototype electric vehicles shall remain the property of the respective party
that supplied such item.

All intellectual properties relating to the designs of each of the prototype
vehicles shall be jointly owned by GDEV and AEAC. Each party shall not use any
of the designs without obtaining the prior written consent of the other party.

10.    Implementation Plan: Within 60 days of the signing of this agreement,
GDEV and AEAC shall have jointly completed a written implementation plan.

11.    Confidentiality: The parties and each of their respective parent,
affiliate and subsidiary companies shall treat all technical information
pertaining to products produced through the cooperation of the two parties as
confidential and shall not disclose such information to any third parties
without the prior written consent of the other party.

12.    Exclusive Partnership: During the term of this agreement, none of the
parties, their parent, affiliates or subsidiary companies shall cooperate with
any third parties on the development, consultation, manufacture, assembly, or
sale of any products produced through the cooperation of the two parties
without the prior written consent of the other party.

13.    Within 60 days of the date of the signing of this contract by both
parties, the technical contract shall be signed. Otherwise this contract shall
be void.

14.    Both parties shall jointly guarantee that this contract must be
completed within one and a half years. Within 60 days of the completion of
this contract, if both parties agree to form a joint venture company, the
joint venture company shall be organized according to the letter of intent
signed on February 25th, 1997.

15.    This contract shall have four copies, with each party holding two
copies. Each copy shall have equal legal standing. This contract shall become
effective upon signing by the authorized representatives of both parties.

For and on behalf:
Guangdong EV Co. Ltd.

LIU ZHIGANG
-----------
Liu Zhigang

Date Feb. 25, 1997
Mr. Liu Zh'gang General Manager

For and on behalf of:
American Electric Automobile Company (Asia) Inc.

EDWARD F. MYRES
---------------
Edward F. Myers

Date  Feb. 25, 1997
Dr. Edward F. Myers ChairmanEH EXHIBIT  10.4
b)  10.4  AGREEMENT BETWEEN NATIONAL ELECTRIC VEHICLE RUNNING EXPERIMENT
DEMONSTRATION DISTRICT MANAGEMENT CENTER AND  AMERICAN ELECTRIC AUTOMOBILE
COMPANY (ASIA), INC.

This Agreement (THIS AGREEMENT) made this 28th day of October, 1999 ( this
twenty-eighth day of October in the year of nineteen ninety), by and between
National Electric Vehicle Running Experiment Demonstration District Management
Center (Shantou Guangxin Enterprise Science & Technology Development Company)
(hereinafter called "Party A") and America Electric Vehicle (Asia) Co. Ltd.
(hereinafter called "Party B").
WITNESSETH:
After full negotiation and discussion in Shantou City, Guangdong Province on
October 28, 1999, the parties have concluded mutual understanding of
cooperation of the project of conversion hybrid electric vehicle and made the
letter of intent for this Project on December 13, 1999. Both parties has
discussed and exchanged opinions in regard with conversion vehicle once more
on December 23, 1999, and entered into physical execution of the tasks
according to cooperation intention of both parties. Now, therefore, it is
hereby agreed and understood as follows: A. The parties have certified to
convert the hybrid electric vehicles with two Red Banner CA7180-2 cars into or
different application.B. From the date of signing of this Agreement until the
end of March, 2000, the parties shall do analysis and study works for the
conversion project, and shall certify the conversion schedule (including
technical data). C. The analysis and study works comprise a series of relative
issues, such as the planning of conversion schedule, selection and
distribution of power plant, technical data of hybrid power plant and each
performance, technical index (comprising power performance, economic
efficiency, emission and security, etc), fuel tank volume, continuous running
time and distance, space of compartment and boot.
D. For the convenience of studying the conversion schedule, Party A has
provided to Party B the technical data related to the said two vehicles
(provided) in the end December, 1999. Party B shall provide the relative
technical data in regard with hybrid power plant in the middle of April. The
parties shall hold a meeting for further discussion in the middle of March
2000 if necessary and shall decide detailed meeting time and place.
E. The said two conversion vehicles provided by Party A shall be available in
the middle of April, 2000. Party B shall provide the hybrid power plant,
including DC controller, generator, charger, energy display of the battery
pack, internal combustion and electrical elements matched with the generator
before the end of April, 2000. The vehicles will be converted in Party A's
fitting shop on April 30th, 2000. Party A shall do the major job in conversion
with assistance of Party B's technician. Party A shall invite the technician
from China No. 1 Automobile Company for assistance if both parties consider
that it is necessary. The conversion shall try to be accomplished in the end
of May.
F. After conversion and commission, the vehicles shall have a 2000-kilometer
running test. The test place will be at Party A's area. During the running
test, Party A shall reflect to Party B the problems occurred in the vehicles
or improvement suggestion which they consider necessary, and shall organize
and execute by Party A or both parties with consent of both parties. The
running test shall be accomplished at the beginning of August, 2000. The test
report shall be drafted by Party A and organize specialists to evaluate and
authenticate the vehicles after certified by the parties.
G. All the expenses necessary for conversion shall be borne by the parties
respectively. Each party shall be entitled to possession of the conversion
vehicles, on the principle of possession by the party (or parties) that
invested. The conversion vehicles shall be negotiated and dealt with by the
parties after the completion of experiment and authentication.
H. After the completion of conversion, if any reason causes future cooperation
failed, the Contract may be terminated by consultation and agreement between
the parties. In this case, one of the Red Banner CA7180-2 hybrid conversion
shall be possessed by Party A and the other possessed by Party B.
I. In accordance with promotion of global environmental industry, enhancing of
restraining emission of fuel vehicles, and the analysis of global intendance
of development, promotion and application of hybrid vehicles, the parties
consider that there is a broad future for cooperating and developing hybrid
vehicles. Starting from converting experimental vehicles, the parties intend
to develop and build an automobile conversion factory with unite efforts, and
are willing to try their best to cooperate with each other so that to
accomplish conversion, running test and authentication before the end of
August, 2000. According to the forecast, in case the technical index of the
experimental conversion vehicles can reach or exceed international standard by
test and authentication, the parties will build a conversion factory in China
and promote and sell the products to China (Hong Kong, Macao), Southeast Asia
and other countries and districts, the output can be 300,000 vehicles per
year. The parties shall set this as their target.
J. During conversion or after completion of conversion, running test and
authentication, provided that conditions are mature, the parties will consult
and negotiate to build a conversion factory at the place of Party A's
domicile, formalize the contract and article for build the factory with
cooperation. The factory scale, cooperation form and investment shall be
negotiated by the parties separately and shall be applied by Party A by
consultation and agreement between the parties. Application shall be executed
by Party A with assistance of Party B.K. Any party shall not breach the
Agreement after having signed. The party in breach shall bear the liability
therefor. The liability of breach shall be executed subject to the Contract
Law of the People's of Republic of China.L. Should any party decide to
terminate the Agreement due to any reason, such reason shall be submitted to
the other party in written form. The Agreement shall be terminated only by
consultation and agreement between the both parties, otherwise it shall be
regarded as breach.
M. Any content other than in this Agreement shall be enter into complementary
agreement by consultation and agreement between the parties separately. The
complementary agreement and the Agreement are equally authentic.
N. The Agreement shall come into force upon the signing of both parties'
representatives.
O. This Agreement are in two (2) originals and each party holds one (1)
original.
Party A:  National Electric Vehicle Running    Party B: America Electric
                                                        Automobile (Asia)
          Experiment Demonstration District             Ltd. Co.
          Electric Vehicles Management Center
          Shantou Guangxin Enterprise Science
          & Technology Development Company)
Representative:   Sun Zhao Qi(office chief)     Representative: Wang Zi Hui
                                                                (president)
Address: Shantou City Longhu District Xiapeng    Address: 505 Camino
         Industrial District                     Elevado, Bonita,
                                                 Califonia 91902, USA
Tel:     0754-8353589                            Tel (HK):  852-25736863
Fax:     0754-8353590                            Fax (HK):  852-28386878
                                                 Tel (USA): 1-619-2972717
                                                 Tel (USA): l-619-4212653

Signing Date: February 18, 2000
AUDI

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]