Document:

Commercial - in - Confidence

 

 

TECHNOLOGY EXPLOITATION AGREEMENT

 

 

THIS AGREEMENT is made the 29th day of July 2008

 

BETWEEN:

 

(l) 

ROKE MANOR RESEARCH LIMITED a company incorporated in England and Wales (registered no. 267550) whose registered office is at Faraday House, Sir William Siemens Square, Frimley, Camberley, England, GU16 8QD, trading from Roke Manor, Old Salisbury Lane, Romsey, Hampshire, England, SO51 0ZN ("ROKE”); and

 

(2)

PEAK RESOURCES INCORPORATED a company incorporated in the State of Nevada, USA (registration # E0661692005-9) whose statutory resident agent’s office is located at 5348 Vega Drive, Las Vegas, Nevada, 89108 and whose business office is located at 2103 Tyrone Place, Penticton, British Columbia, Canada, V2A 8Z2 (“PEAK”).

 

WHEREAS:

 

(A)

ROKE is the registered proprietor of certain intellectual property rights in buried object detection technology (“Technology”) as referred to in Appendix 1. As such ROKE has the right to licence third parties the ability to utilise and exploit such intellectual property.

 

(B)

PEAK wishes to obtain from ROKE the right to utilise the intellectual property rights in order to further develop, manufacture and sell products based on the Technology.

 

(A)

ROKE has agreed to licence PEAK the right to utilise the intellectual property rights in the Technology and to carry out the exploitation of such intellectual property rights in accordance with the terms of this agreement (hereinafter referred to as the “Agreement”).

(B)

PEAK has contracted ROKE to develop the Product for PEAK (“Development Programme”) as detailed in Task 1 (“Task 1”) under the Development and Consultancy Support Services Agreement.

 

 

IT IS AGREED as follows:

 

 

1.

INTERPRETATION

 

1.1 

In this Agreement:

 

“Intellectual Property” means the patents, copyright documents, designs and design techniques, software and know-how relating to Technology and embodied in any technical information and assistance furnished under Clause 4 and all other information provided to  PEAK by ROKE under this Agreement;

 

“Upfront Fee” means the upfront payment payable by PEAK to ROKE for the licence to use and incorporate the Intellectual Property in the Product. 

 

 

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"Product" means any anomaly or metal detector product or products developed by     PEAK and incorporating any or all of the Intellectual Property in the Technology [and shall include any spare parts, repair work, maintenance and support services, and user manuals];

 

“Royalty” means the royalty payment payable by PEAK to ROKE for each Product deployed and/or sold by PEAK in accordance with Clause 3.1 or 3.2.

 

“Effective Date”, “Duration” and “Initiating Party” shall have those meanings prescribed to them in Clause 11.

 

“Market” means the worldwide market for products, services and systems to detect exposed, buried or hidden mines. The parties may from time to time agree changes to this definition in accordance with Clause 13.1.

 

“Selling Price” means the total price invoiced by PEAK to its customers relating to the sale of any Product, excluding any VAT or other sales related taxes and excluding the costs of carriage, insurance and freight.  Any sales made in a currency other than UK pounds shall be converted to UK pounds in accordance with Clause 3.6.

 

“Technology” shall have the meaning prescribed above and referred to in Appendix 1. 

 

“Development Programme” shall have the meaning as prescribed in WHEREAS (D) above.

 

 

1.2

References to “deploy” the Product shall be deemed to be a reference to the manufacture, use, lease, hire or other use of the Product and the word “deployment” or "deployed" shall be construed accordingly.  

 

1.3

References to “sales(s)” shall be deemed to mean the sale or disposal including but not limited to lease, hire, gift or any other transaction which transfers title or possession of any Product or puts any Product into service to provide a benefit to another party and the word “sell” or “sold shall be construed accordingly. 

 

1.3

In this Agreement reference to:

 

(i) 

a "subsidiary" or "holding company" shall be construed in accordance with section 736 of the Companies Act 1985;

 

(ii)

“persons” includes a reference to any body corporate, unincorporated association or partnership;

 

(iii) 

a “person” includes a reference to that person's legal personal representatives, successors and permitted assigns;

 

(iv) 

a “Clause” or “Appendix”, unless the context otherwise requires, is a reference to a clause of or appendix to this Agreement;

 

1.4

The headings in this Agreement shall not affect its interpretation.

 

 

2. 

GRANT

 

2.1

ROKE hereby grants to PEAK, with effect from the Effective Date, a non-transferable licence to utilise the Intellectual Property in order to develop, manufacture, use and sell the Product in the Market for the Duration of this Agreement.

 

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2.2

For the Duration of this Agreement from the Effective date of this Agreement ROKE shall not without the prior written approval from PEAK use the Intellectual Property or Know-How to offer land mine detection products which compete with the Product or assist any third party to do so. For the avoidance of doubt, this restriction does not apply to ROKE’s involvement in:-

 

(i)

the ongoing support, installation, repair or enhancement of existing products already sold or contracted to be sold at the time of execution of this Agreement; and

(ii)

technologies, other than the Technology, for the location of buried objects. 

 

2.3 

The licence granted under Clauses 2.1 includes the right to carry out trials, production engineering and modelling activities in relation to the continuing development, deployment and sale of the Product.

 

 

3.

PAYMENTS

 

3.1

       PEAK shall pay to ROKE the following: 

 

(i)

an Upfront Fee of £125,000.00 (one hundred and twenty five thousand pounds sterling) shall be payable immediately upon completion of WP3 as detailed in Task 1; and thereafter

(ii)

shall pay to ROKE a Royalty of £125.00
(one hundred and twenty five pounds sterling) for each Product deployed by PEAK, including sales of the Product designed by PEAK for integration into systems manufactured by third parties or suppliers and spare or replacement parts.

 

3.3

PEAK shall pay up to a maximum Royalty of £250,000 (two hundred and fifty thousand pounds sterling) over a ten (10) year period commencing upon the completion of WP3 as detailed in Task 1. After the maximum has been paid no further royalty shall be due.

 

3.4

PEAK shall within thirty (30) days after the last days of March, June, September and December in each year, and three months after the expiry or other termination of this Agreement, send to ROKE a statement showing the quantity, Net Selling Price, description and customer of the Product deployed and/or sold by PEAK during the three months (or such shorter period as may be applicable) ending on that day and showing the amount of Royalty due under this Agreement in respect of the period. With each statement PEAK shall send a remittance to ROKE for the total aggregate amount of Royalty shown by that statement to be due.

 

3.5

PEAK shall provide ROKE with an annual statement [signed by the auditors of PEAK] confirming the information provided in accordance with Clause 3.3.  This statement shall be submitted to ROKE by 31 August each year confirming details of all products deployed and/or sales made for the twelve (12) month period ended 30 June.

 

3.6

PEAK shall keep proper records and books of account showing the quantity, prices, description and customer details of the Product deployed and/or sold under this Agreement. These records and books of account shall be open at reasonable times to inspection by ROKE, its auditors or other it’s appointed representatives.

 

3.7

All sums payable under this Agreement shall be paid in UK pounds sterling and shall be net of any deductions due in respect of any taxes, duties or other imposts arising outside the UK.  Sums payable shall be converted to UK pounds on the last Friday of the month in which payment is due using the Financial Times Pound Spot and Forward Tables (http://news.ft.com/markets/spotpound) using the ‘Closing Mid-Point’ rate valid on that day. All taxes and duties payable in respect of such amount in the UK shall be the responsibility of ROKE.

 

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4.

PROVISION OF INFORMATION AND SUPPORT

 

4.1

ROKE shall within thirty (30) days of the Effective Date furnish PEAK with copies of the patents as detailed in Appendix 1.  The parties accept that the Technology does not constitute the complete technical or manufacturing information required to produce the Product and that further development and production engineering work is required to be undertaken by PEAK. 

 

4.2

ROKE agrees to provide technical support and assistance to PEAK for the Duration of this Agreement on standard commercial terms to be agreed.

 

 

5.

TRADE MARKS AND MARKING 

 

5.1

Except to the extent required by law, a regulation of a stock exchange or the Panel on Takeovers and Mergers, publicity or advertising relating to this Agreement may be released by any of the parties only with the prior written approval of the other parties. 

 

5.2

PEAK shall not apply to register any trademarks relating to the Product in its own name without the prior written permission of ROKE, such permission to be not unreasonably withheld.

 

 

6.

PATENT

 

6.1

The Intellectual Property licensed to PEAK under this Agreement incorporates inventions described in certain UK patent applications detailed in Appendix 1.

 

 

7.

INTELLECTUAL PROPERTY RIGHTS

 

7.1

ROKE warrants and represents to PEAK that ROKE:

 

 (i)

is the owner of the Intellectual Property free from encumbrances;

 

(ii) 

has the right to grant to PEAK the rights and licences hereby granted or agreed to be granted.

 

7.2

ROKE gives no warranty or representation that the use or application of the Intellectual Property will not infringe any patent or other rights of any other person.  ROKE shall not be liable for or indemnify the PEAK against any loss sustained by the PEAK as the result of any claim made or action brought by any third party for infringement of any letters patent, registered design or other intellectual property right by reason of the manufacture, assembly, use, maintenance or sale by PEAK of the Product using the Intellectual Property or any other information supplied or to be supplied to PEAK pursuant to the terms of this Agreement.

 

7.3

PEAK acknowledges ROKE's right, title and interest in and to the Intellectual Property and shall not assert ownership rights to such Intellectual Property. PEAK agrees that it shall not obtain any right, title or interest in or to the Intellectual Property other than such as may be granted to it under this Agreement and that PEAK shall not do or permit anything to be done in its use of the Intellectual Property that would or could jeopardise their validity.

 

 

8.

INTELLECTUAL PROPERTY RIGHTS INFRINGEMENT

 

8.1

In the event that either Party identifies an infringement by a third party of any of the Intellectual Property ROKE shall at its own option either:

 

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(i)

institute or defend proceedings in its own name; or 

 

(ii)

consent on terms to be agreed the manner in which PEAK would be entitled to conduct litigation in its own name; or 

 

(iii)

lend its name to any proceedings, including interlocutory proceedings where relevant, and provide any other reasonable assistance to PEAK.

provided that PEAK shall indemnify ROKE in respect of all costs, damages and expenses that it may reasonably incur, including any award of costs against it arising from ROKE’s actions under this clause, and in addition any damages recovered from the third party shall be dealt with in a manner which shall be fair and reasonable as between ROKE and PEAK.

 

 

9.

WARRANTY

 

9.1

ROKE warrants that the patents referred to in Appendix 1 are registered. For the avoidance of doubt, any future infringement, loss or damage caused by defects found in the patents shall not be remediable by ROKE.

 

9.2

ROKE does not offer any warranty that the Intellectual Property or any other information supplied or services rendered by ROKE can be used to create a commercially successful Product.

 

9.2

The Intellectual Property and other information detailed in Appendix 1 has been generated out of a number of research activities undertaken by ROKE and is of a quality and format compatible with the output of typical research work.  PEAK has satisfied itself prior to entering into this Agreement that the Intellectual Property and other information detailed in Appendix 1 are adequate for its intended purpose.

 

9.3

ROKE disclaims and excludes all other warranties whether express or implied in law to the fullest extent permitted by law.

 

 

10.

CONFIDENTIALITY

 

10.1 

All information and data relating to this Agreement that is made available to PEAK in the performance of this Agreement will be treated as confidential and PEAK undertakes to treat such confidential information with the same care as it would reasonably treat its own confidential information.

 

10.2

PEAK agrees to ensure that provided such confidential information is not already in the public domain; ROKE’s confidential information shall not be copied or disclosed to any third party in any manner.

 

10.3

Upon expiration or termination of this Agreement PEAK undertakes, if required to do so by ROKE, to immediately return to ROKE all ROKE’s confidential information.

 

 

10.4

        The requirement for confidentiality will survive the termination of this Agreement by ten years.

 

 

11.

DURATION AND TERMINATION

 

11.1

 This Agreement shall commence on the date of signing by all parties (the “Effective Date”) and shall then, continue in full force and effect until otherwise terminated in accordance with this Clause (the “Duration”). 

 

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11.2

Either party (the "Initiating Party") may terminate this Agreement with immediate effect by notice in writing to the other party (the "Breaching Party) on or at any time after the occurrence of any of the events specified in Clause 11.3 in relation to the Breaching Party.

 

11.3

The events are:

 

(i) 

a material breach by the Breaching Party of any of its obligations under this Agreement which (if the breach is capable of remedy) the Breaching Party has failed to remedy within 30 days after receipt of notice in writing from the Initiating Party giving particulars of the breach and requiring the Breaching Party to do so provided that if such breach is incapable of remedy within such 30 day period and the Breaching Party is diligently proceeding to remedy the default by taking active, effective and continuing steps to do so the Initiating Party shall not be entitled to terminate if the default is in fact remedied within a reasonable time;

 

(ii) 

the passing by the Breaching Party of a resolution for its winding-up or the making by a court of competent jurisdiction of an order for the winding-up of the Breaching Party or the dissolution of the Breaching Party;

 

(iii) 

the making of an administration order in relation to the Breaching Party or the appointment of a receiver over, or the taking possession or sale by an encumbrancer of, any of the Breaching Party's assets; and/or

 

(iv) 

the Breaching Party making an arrangement or composition with its creditors generally or making an application to a court of competent jurisdiction for protection from its creditors generally.

 

 

11.4

This Agreement shall immediately terminate and all rights and obligations shall immediately cease should the development work contemplated by ROKE under Task 1 be terminated prior to completion of the development of the Product in accordance with the terms and conditions of the Development and Consultancy Support Services Agreement. 

 

11.5

All rights and obligations of the parties shall cease to have effect immediately upon termination of this Agreement except that termination shall not affect:

 

(i)

the accrued rights and obligations of the parties at the date of termination; and

 

(ii)

any provisions of this Agreement necessary for the interpretation or enforcement of this Agreement.

 

 

12.

EXPORT LICENSES

 

12.1

Each Party agrees to
abide by any applicable national or international rules and regulations
controlling the export of the Technology or Products incorporating the
Technology and agrees to indemnify and hold the other Party harmless for all
claims, demands, damages, costs, fines, penalties, attorney's fees, and all
other expenses arising from failure of the indemnifying Party to comply with
such rules or restrictions.

 

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13.

MARKET DESIGNATION

 

13.1 

If at any time, PEAK considers that a Product developed for a particular market application could be exploited in a different market in the business interests of both Parties, then PEAK may request ROKE to redefine the definitions of Market.  Subject to any outstanding third party commitments, ROKE shall not unreasonably refuse such a request.

 

 

14. 

ASSIGNMENT AND SUBCONTRACTING

 

14.1

        Neither party shall assign or transfer or purport to assign or transfer any of its rights or obligations under this Agreement. Provided that:-

 

(i)

ROKE may assign its rights under this Agreement in connection with the transfer to Siemens PLC or any of its subsidiaries for the time being of the business of ROKE.

(ii)

PEAK may subcontract the manufacture, support or distribution of the Product to a third party.

 

14.2

Neither party shall subcontract the performance of any of its obligations under this Agreement (other than as specifically stated in Clause 2.4) without the prior consent of the other, such consent not to be unreasonably withheld or delayed.

 

15.

INDEMNITIES AND LIMITATIONS OF LIABILITY 

 

15.1

Each party indemnifies the other for direct physical injury or death to the extent that it is shown to have been caused by the negligence of that party or its employees in connection with the performance of this Agreement.

 

15.2

ROKE will indemnify PEAK for direct damage to property to the extent that it is shown to have been caused by the negligence of ROKE or its employees in connection with the performance of this Agreement.  ROKE’s total liability under this sub-clause will by limited to £250,000 (two hundred and fifty thousand pounds sterling) for any one event or series of connected events.

 

15.3

Any contractual liabilities of ROKE to PEAK under this Agreement including all related costs, fees and expenses will not under any circumstances cumulatively exceed £125,000 paid to ROKE by PEAK under Clause 3 of this Agreement.

 

15.4

Except as stated in this Agreement ROKE disclaims all liability to PEAK in connection with ROKE’s performance under this Agreement and in no event will ROKE be liable to PEAK for any special, indirect or consequential damages including but not limited to loss of profits or arising from loss of data, loss of use or loss of opportunity.

 

 

16. 

GENERAL

 

16.1 

No variation of this Agreement shall be valid unless it is in writing and signed by or on behalf of each of the parties.

 

 

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16.2 

The failure to exercise or delay in exercising a right or remedy under this Agreement shall not constitute a waiver of the right or remedy or a waiver of any other rights or remedies and no single or partial exercise of any right or remedy under this Agreement shall prevent any further exercise of the right or remedy or the exercise of any other right or remedy. Nothing in this Agreement shall be construed as creating a partnership between the parties or as constituting either party as the agent of the other party (save as expressly set out in this Agreement) for any purpose whatsoever and neither party shall have the authority or power to bind the other party or to contract in the name of or create a liability against the other party in any way or for any purpose.

 

16.3

Neither party shall be liable for total or partial failure to perform its obligations in this Agreement during any period in which its performance is prevented or hindered by circumstances beyond its reasonable control.

 

16.4

In the event that any of the terms of this Agreement is judged to be in whole or in part illegal or unenforceable for any reason the remainder of the terms shall remain in force.

 

16.5

Both parties agree during the period of this Agreement not directly or indirectly to solicit for employment any of the staff of the other party at any time engaged directly in the pursuance of this Agreement without the prior written consent from that other party. 

 

16.6

This Agreement represents the entire agreement between the parties.  The Agreement supersedes any and all prior or contemporaneous, written or oral negotiations, correspondence, understandings and agreements between the parties, respecting the subject matter of this Agreement but excluding any misrepresentations that were made or given fraudulently.

 

16.7

The parties hereby agree that a person who is not a party to this Agreement shall have no rights under the Contracts (Rights of Third Parties) Act 1999 and that nothing in this Agreement shall be deemed to create a right that is enforceable by any person who is not a party to the Agreement.

 

16.8

This Agreement is governed by and shall be construed in accordance with English law and the exclusive jurisdiction of the English courts.  In the event of any dispute arising in respect of this Agreement and the matter is not resolved within a period of fourteen (14) days from the date of notification of the dispute then the parties shall aim to resolve the dispute by Alternative Dispute Resolution (ADR) Procedure using the services for the Centre of Dispute Resolution (CEDR), 3-5 Norwich Street, London EC4A IEJ, prior to any such dispute being referred to the courts.

 

 

EXECUTED by the parties

 

Signed by  /s/ Authorized Signatory                     )

                                                                                     )

for and on behalf of                                                  )

ROKE MANOR RESEARCH LIMITED                )

 

 

 

 

Signed by /s/ Larry Olson                                     )

                                                                                   )

for and on behalf of                                                )

 PEAK RESOURCES INCORPORATED              )

 

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APPENDIX I

 

 

 

Copies of the following patents for
'Fig8' sensor Technology:

 

	Patent Reference 

	Number

	Status

	Publication 

	date

	Filings

	Description

	
	GB2339288

	Granted

	
	19.01.2000

	UK

	
	Buried object detector apparatus. 

	
	GB2278199
	Granted	
	23.11.1994	
	UK	
	Apparatus for
	detecting and estimating 

	length of
	hidden elongated conductive objects.

	
	GB2280270
	Granted	
	25.01.1995	
	UK	
	Improvements
	in or relating to apparatus 

	for the
	detection of buried elongate 

	conductive
	objects.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page 9 of 9ex10-1.htm

    
      

    

    EXHIBIT
10.1

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    EMPLOYMENT
AGREEMENT

     

    BETWEEN

     

    YI
XIN INTERNATIONAL COPPER INC.

     

    AND

     

    LINQUAN
HU

     

    

     

    ________________________________

     

    Dated
August 14, 2008

     

    ________________________________

     

    

     

    

     

    

    

    

    

    

    

     

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    THIS
EMPLOYMENT AGREEMENT (this "Agreement"), dated as of August 14, 2008 is entered
into by and between Yi Xin International Copper Inc, a company organized and
existing under the laws of the State of Delaware (the "Company"), and Linquan Hu
("Executive"), and shall become effective as of the date hereof (the "Effective
Date").

     

    WHEREAS,
the Company desires to employ Executive and to enter into an agreement embodying
the terms of such employment on and after the Effective Date and considers it
essential to its best interests and the best interests of its shareholders to
foster the employment of Executive by the Company during the term of this
Agreement; and

     

    WHEREAS,
Executive desires and is willing to enter into such employment with the Company
and to enter into this Agreement; and

     

    NOW,
THEREFORE, in consideration of the premises and mutual covenants herein and for
other good and valuable consideration, the parties hereby agree as
follows:

     

    1.           Definitions.
For the purposes of this Agreement:

     

    "Group" means the Company
and any company which is for the time being and from time to time, the holding
company, parent, subsidiary or Affiliate of the Company.

    

    "Affiliate" of a Person (the
"Subject Person") means any other
Person directly or indirectly controlling, controlled by or under common control
with the Subject Person, where "control" means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise, and includes
(a) ownership directly or indirectly of 50% or more of the shares in issue
or other equity interests of such Person, (b) possession directly or indirectly
of 50% or more of the voting power of such Person or (c) the power directly or
indirectly to appoint a majority of the members of the board of directors or
similar governing body of such Person, and the terms "controlling" and "controlled" have meanings
correlative to the foregoing.

    

    "Person", for the purpose
of this Agreement, means an individual, corporation, joint venture, enterprise,
partnership, trust, unincorporated association, Limited Liability Company,
government or any department or agency thereof, or any other
entity.

    

    2.           Term of
Employment.  Subject to the provisions of Section 0 of
this Agreement, this Agreement shall be effective for a period commencing on the
Effective Date and ending on the day immediately preceding the Third (3th)
anniversary of the Effective Date (the "Initial Term");
provided, however, that such term shall be automatically extended for successive
twelve (12) month periods unless, no later than thirty (30) days prior to the
expiration of the Initial Term or any extension thereof, either party hereto
shall provide written notice to the other party hereto of its or his desire not
to extend the term hereof (the Initial Term together with any extension shall be
referred to hereinafter as the "Employment
Term").

     

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    
      3.           Position.

       

    

    (a)           Executive
shall serve as the Chief
Executive Officer of the Company.  In such position, Executive
shall have such duties and authority as stated in the Job attached to this
Agreement as Attachment I.  Executive shall report to the Board of
Directors of the Company (the “Board”). The Board shall have the right to adjust
the duties and authority of Executive, provided the adjustment shall be suitable
for an ordinary position of any Chief Executive Officer, shall not be
substantial and shall be previously agreed by Executive.

    

    (b)           During
the Employment Term, Executive will devote his business time and best efforts to
the performance of his duties hereunder and will not engage in any other
business, profession or occupation for compensation or otherwise which would
conflict with the rendition of such services either directly or indirectly,
without the prior written consent of the Board.

     

    4.           Base
Salary.  During the Employment Term, the Company shall pay
Executive a base salary (the "Base Salary") at the
annual rate of $ 24,000, payable in regular installments in accordance with the
Company's usual payroll practices. The Board may from time to time review and
increase the Base Salary in its sole discretion. However the Base Salary shall
not be decreased during the Employment Term. During the Employment Term, the
Executive shall be eligible for any bonus program approved by the Board for the
benefit of the senior executives of the Company; provided however, that the
foregoing shall not create any presumption that a bonus will actually be granted
by the Company to the Executive.

     

    5.           Other
Compensation The Company shall pay the executive 250,000 restricted shares of
common stock (“Stock Award”), vesting in three
equal installments over three years.

     

    6.           Employee
Benefits.  During the Employment Term, Executive shall be
provided with benefits on the same basis, as benefits are generally made
available to other senior executives of the Company.

     

    7.           Vacation.  Executive
shall be entitled to three (3)
weeks annual paid vacation in accordance with the vacation accrual policy
of the Company, in addition to the official regulatory holidays and
vacations.

     

    8.           Business
Expenses.  During the Employment Term, the Company in
accordance with Company policies shall reimburse all business expenses incurred
by Executive in the performance of his duties hereunder.

     

    9.           Termination.  Notwithstanding
any other provision of this Agreement:

     

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    
       

      (a)           For Cause by the
Company.   The Company hereunder, may terminate the
Employment Term, and Executive’s employment at any time for "Cause" (as defined
below) upon delivery of a 30-day "Notice of Termination"
(as defined in Section 90) by
the Company to Executive, in which the cause or reason of such termination is
stated.  For purposes of this Agreement, "Cause" shall mean, in
each case, as reasonably determined by the Board: (i) conviction of, or entry of
a pleading of guilty or no contest by, Executive with respect to a felony or any
lesser crime of which fraud or dishonesty is a material element; (ii)
Executive's willful dishonesty towards the Company; (iii) Executive's
willful and continued failure to perform substantially all of his duties
with the
Company, or a failure to follow the lawful direction of the Board after the
Board delivers a written demand for substantial performance and Executive
neglects to cure such a failure to the reasonable satisfaction of the Board
within fifteen (15) days following receipt of such written demand; (iv)
Executive's material, knowing and intentional failure to comply with applicable
laws with respect to the execution of the Company's business operations or his
material breach of this Agreement; (v) Executive's theft, fraud, embezzlement,
dishonesty or similar conduct which has resulted or is likely to result in
material damage to the Company or any of its affiliates or subsidiaries; or (vi)
Executive's habitual intoxication or continued abuse of illegal drugs which
materially interferes with Executive's ability to perform his assigned duties
and responsibilities.

    

     

    If Executive is terminated for Cause
pursuant to this Section 90 he shall be entitled to receive only his Base
Salary, vested stock award and authorized benefits through the date of
termination and he shall have no further rights to any compensation (including
any Base Salary or Bonus) or any other benefits under this
Agreement.  All other benefits, if any, due to the Executive following
Executive's termination of employment for Cause pursuant to this Section 90
shall be determined in accordance with the plans, policies and practices of the
Company; provided, however, that
Executive shall not participate in any severance plan, policy or program of the
Company.

     

    (b)           Disability or
Death.  The Employment Term, and Executive's employment
hereunder, shall terminate immediately upon his death or following delivery of a
Notice of Termination by the Company to Executive if Executive becomes
physically or mentally incapacitated and is therefore unable for a period of
ninety (90) consecutive days or one hundred twenty (120) days during any
consecutive six (6) month period to perform his duties with substantially the
same level of quality as immediately prior to such incapacity (such incapacity
is hereinafter referred to as "Disability").  Upon
termination of Executive's employment hereunder for either Disability or death,
Executive or Executive's estate (as the case may be) shall be entitled to
receive his Base Salary through the date of termination and any earned but
unpaid Bonus for any calendar year preceding the year in which the termination
occurs.  Executive or Executive's estate (as the case may be) shall
have no further rights to any compensation (including any Base Salary, stock
award or Bonus) or any other benefits under this Agreement.  All other
benefits, if any, due Executive following Executive's termination for Disability
or death shall be determined in accordance with the plans, policies and
practices of the Company; provided, however, that Executive (or his estate, as
the case may be) shall not participate in any severance plan, policy or program
of the Company.

     

    (c)           Without Cause by the
Company. The Employment Term, and Executive's employment hereunder, may
be terminated by the Company without Cause (other than by reason of Executive's
Disability) following the delivery of a Notice of Termination to
Executive.  If Executive's employment is terminated by the Company
without Cause (other than by reason of Disability) , Executive shall receive,
within ten (10) days following termination (ii) any vested but unissued Stock
Award and (iii) any earned but unpaid Base Salary through the date of
termination and (ii) any earned but unpaid Bonus for any calendar year preceding
the year in which the termination occurs.  In addition, subject to
Executive's compliance with Sections 10, 11 and 12, Executive shall continue to
receive in bi-weekly installments the Base Salary Executive would have otherwise
received through the first (1st)
anniversary of the date of termination; provided, however, that if necessary to
avoid additional or accelerated taxation pursuant to Section 409A of the Code,
Executive will receive the first twelve (12) installments of the foregoing
payments on the six-month anniversary
of the date of his termination in a lump sum payment and the remainder of such
payments shall thereafter be paid in bi-weekly installments through the first
anniversary of the date of termination.  Executive shall have no
further rights to any compensation (including any Base Salary, stock award or
Bonus) or any other benefits under this Agreement.  All other
benefits, if any, due Executive following a termination pursuant to this Section
90 shall be determined in accordance with the plans, policies and practices of
the Company; provided, however, that Executive shall not participate in any
severance plan, policy or program of the Company.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    (d)For Good Reason of
Executive. The Employment Term, and Executive's employment hereunder, may be
terminated by Executive for "Good Reason" (as defined below) following the
delivery of a Notice of Termination to the other party.  If
Executive's employment is terminated by Executive for Good Reason, Executive
shall receive, within thirty (30) days following termination, a lump sum payment
of (i) any earned but unpaid Base Salary through the date of termination and
(ii) any earned but unpaid Bonus for any calendar year preceding the year in
which the termination occurs.  In addition, subject to Executive's
compliance with Sections 0, 0 and  0,
Executive shall continue to receive in bi-weekly installments the Base Salary
Executive would have otherwise received through the first (1st) anniversary of
the date of termination; provided, however, that if necessary to avoid
additional or accelerated taxation pursuant to Section 409A of the Code,
Executive will receive the first twelve (12) installments of the foregoing
payments on the six-month anniversary of the date of his termination in a lump
sum payment and the remainder of such payments shall thereafter be paid in
bi-weekly installments through the first anniversary of the date of
termination.  Executive shall have no further rights to any
compensation (including any Base Salary or Bonus) or any other benefits under
this Agreement.  All other benefits, if any, due Executive following a
termination pursuant to this Section 00 shall be determined in accordance
with the plans, policies and practices of the Company; provided, however, that
Executive shall not participate in any severance plan, policy or program of the
Company.

    

    For
purposes of this Agreement, "Good
Reason" means:

     

    (i)           Any
failure by the Company to comply with any of the material provisions of this
Agreement, other than an isolated, insubstantial and inadvertent failure not
occurring in bad faith;

     

    (ii)           any
change in the duties or responsibilities (including reporting responsibilities)
of Executive that is inconsistent in any material and adverse respect with
Executive's position(s), duties or responsibilities with the Company (including
any material and adverse diminution of such duties or responsibilities);
provided, however, that Good Reason shall not be deemed to occur upon a change
in duties or responsibilities (other than reporting responsibilities) that is
solely and directly a result of any event set forth in Section 90, 0 or 0;
or

     

    (iii)           any
failure by the Company to comply with the provisions of Section 0 or 5 of
this Agreement;

     

    provided
that a termination by Executive with Good Reason shall be effective only if,
within thirty (30) days following the delivery of a Notice of Termination
for Good Reason by Executive to the Company, the Company has failed to cure the
circumstances giving rise to Good Reason.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    (d)           Termination by Executive
without Good Reason.  Executive hereunder, may terminate the
Employment Term, and Executive’s employment without Good Reason following the
delivery of a Notice of Termination to the Company.  Upon a
termination by Executive pursuant to this Section 90,  Executive shall be
entitled to his Base Salary , Stock Award and Bonus up to the date of such
termination and he shall have no further rights to any compensation (including
any Base Salary, Stock Award or Bonus) or any other benefits under this
Agreement.  All other benefits, if any, due Executive following
termination pursuant to this Section 90shall be determined in accordance with
the plans, policies and practices of the Company; provided, however, that
Executive shall not participate in any severance plan, policy or program of the
Company.

     

    (e)           Notice of
Termination.  Any purported termination of employment by the
Company or Executive (other than on account of the death of Executive) shall be
communicated by a written Notice of Termination to Executive or the Company,
respectively, delivered in accordance with Section 15(j)
hereof.  For purposes of this Agreement, a "Notice of
Termination" shall mean a notice which shall indicate the specific
termination provision in this Agreement relied upon, the date of termination,
and shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of employment under the provision so
indicated.  The date of termination of Executive's employment shall be
the date so stated in the Notice of Termination and shall be no less than thirty
(30) days following the delivery of a Notice of Termination; except that in the
case of a termination by the Company for Cause in accordance with the terms of
Section 9(a) hereof, in which case the date of termination of Executive’s
employment may be, at the sole discretion of the Company, be the same date as
the delivery of the Notice of Termination.

     

    10.           Non-Competition/Non-Solicitation.

     

    (a)           Executive
acknowledges and recognizes the highly competitive nature of the "Business" (as
defined below) of the Company and its subsidiaries and affiliates and
accordingly agrees as follows:

     

    (i)           (A)  The
term "Business"
means reprocessing of scrap copper (or other metals) into copper rods, wire,
valves or any other products, whether directly by the Company or through its
various subsidiaries or Affiliates (including without limitation Yi Xin Copper,
Ltd., a People’s Republic of China Company ), of and such other related business
activities as the Company may engage in from time to time; (B) the Business
is conducted primarily in the People's Republic of China ("China" or the "PRC");
(C) Executive has intimate and valuable knowledge of the Business, as well
as technical, financial, customer, supplier and other confidential information
related to the Business, which, if exploited by Executive in contravention of
the terms of this Agreement, would seriously, adversely and irreparably affect
the ability of the Company to continue the Business; (D) the agreements and
covenants contained in this Agreement, as they relate to the Business and
otherwise, have been determined by the Company to be essential to protect the
Business and goodwill of the Company; (E) for purposes of this Section 10,
the Company shall be construed to include the Company and its subsidiaries and
affiliates; and (F) Executive has the means to support himself and his
dependents other than by engaging in the Business, and the provisions of this
Agreement will not impair such ability in any manner whatsoever.

     

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    
      (ii)           During
the Employment Term and until the third anniversary of the date Executive ceases
to be employed by the Company (the "Restricted Period"), Executive will
not directly or indirectly, (A) engage in the Business for
Executive's own account in China, (B) enter the employ of, or render any
services to, any Person engaged in the Business in the  PRC or
(C) acquire a financial interest in, or otherwise become actively involved
with, any person engaged in the Business in the PRC, directly or indirectly (and
whether or not for compensation), as an individual, partner, shareholder,
officer, director, principal, agent, trustee or consultant, or
(D) interfere with business relationships (whether formed before or after
the Effective Date) between the Company and customers or suppliers of, or
consultants to, the Company.   

    

     

    (iii)           Notwithstanding
anything to the contrary in this Agreement, Executive may, directly or
indirectly, own, solely through passive ownership as a portfolio investment
(with no director designation rights or other special governance rights),
securities of any person engaged in the Business which are publicly traded on a
national or regional stock exchange or on the over-the-counter market if
Executive (A) is not a controlling person of, or a member of a group which
controls, such person and (B) does not, directly or indirectly, own 1% or
more of any class of securities of such person.

     

    (iv)           During
the Restricted Period, Executive will not, directly or indirectly, solicit or
encourage to cease to work with the Company, or directly or indirectly hire, any
person who is an employee of or consultant then under contract with the Company
or who was an employee of or consultant then under contract with the Company
within the one year preceding such activity without the Company's written
consent.

     

    (b)           It
is expressly understood and agreed that although Executive and the Company
consider the restrictions contained in this Section 10 to be reasonable, if
a judicial determination is made by a court of competent jurisdiction that the
time or territory or any other restriction contained in this Agreement is an
unenforceable restriction against Executive, the provisions of this Agreement
shall not be rendered void but shall be deemed amended to apply as to such
maximum time and territory and to such maximum extent as such court may
judicially determine or indicate to be enforceable.  Alternatively, if
any court of competent jurisdiction finds that any restriction contained in this
Agreement is unenforceable, and such restriction cannot be amended so as to make
it enforceable, such finding shall not affect the enforceability of any of the
other restrictions contained herein.

     

    11.           Nondisparagement.  Executive
agrees (whether during or after Executive's employment with the Company) not to
issue, circulate, publish or utter any false or disparaging statements, remarks
or rumors about the Company or its affiliates or the officers, directors,
managers or shareholders of the Company or its affiliates unless giving truthful
testimony under subpoena.

     

    12.           Confidentiality.  Executive
shall not, without the prior written consent of the Company, use, divulge,
disclose or make accessible to any other person, firm, partnership, corporation
or other entity, any "Confidential Information" (as defined below) except while
employed by the Company, in furtherance of the business of and for the benefit
of the Company or its affiliates; provided that Executive may disclose such
information when required to do so by a court of competent jurisdiction, by any
governmental agency having supervisory authority over the business of the
Company and/or its affiliates, as the case may be, or by any administrative body
or legislative body (including a committee thereof) with jurisdiction to order
Executive to divulge, disclose or make accessible such information; provided,
further, that in the event that Executive is ordered
by a court or other government agency to disclose any Confidential Information
or Personal Information, Executive shall (i) promptly notify the Company of
such order, (ii) at the written request of the Company, diligently contest
such order at the sole expense of the Company as expenses occur, and
(iii) at the written request of the Company, seek to obtain, at the sole
expense of the Company, such confidential treatment as may be available under
applicable laws for any information disclosed under such order.  For
purposes of this Section 12, "Confidential
Information" shall mean non-public information concerning the financial
data, strategic business plans, product development (or other proprietary
product data), customer lists, marketing plans and other non-public, proprietary
and confidential information relating to the business of the Company or its
subsidiaries, affiliates or customers, that, in any case, is not otherwise
available to the public (other than by Executive's breach of the terms
hereof).  Upon termination of Executive's employment with the Company
and its affiliates, Executive shall return all Company property, including,
without limitation, files, records, disks and any media containing Confidential
Information, including all copies thereto.

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    13.           Assignment
of Inventions.

     

    (a)           Exhibit A hereto
lists all inventions, original works of authorship, developments, improvements,
and trade secrets which were made by the Executive prior to his employment with
the Company (collectively referred to as "Prior Inventions"), which belong to
the Executive, which relate to the Company's Business, products or research and
development, and which are not assigned to the Company hereunder; or, if no such
list is attached, the Executive represents that there are no such Prior
Inventions.

     

    (b)           If
in the course of his employment with the Company, the Executive incorporates
into a product, process or machine of the Company and/or any other member of the
Group a Prior Invention owned by him or in which he have an interest, the
Company and/or any member of the Group is hereby granted and shall have a
nonexclusive, royalty-free, irrevocable, perpetual, worldwide license to make,
have made, modify, use and sell such Prior Invention as part of or in connection
with such product, process or machine.

     

    (c)           The
Executive shall promptly make full written disclosure to the Company, will hold
in trust for the sole right and benefit of the Company, and hereby assign, free
or charge, to the Company, or its designee, all the right, title, and interest
he may have in and to any and all inventions, original works of authorship,
developments, concepts, improvements, designs, discoveries, ideas, trademarks or
trade secrets, processes, copyright works, know-how, Confidential Information,
any other work's information or matter which gives rise or may give rise to any
intellectual property of whatsoever nature, whether or not patentable or
registrable under any law of any country, which he may solely or jointly
conceive or develop or reduce to practice, or cause to be conceived or developed
or reduced to practice, during his employment with the Company (collectively
referred to as "Inventions"), except as
provided in Section 13(j) below.

     

    (d)           The
Executive acknowledges that the Company, or its designee, has the absolute
title, right or interest in and to any and all original inventions or works of
authorship which are made by him, as an employee, (solely or jointly with
others) within the scope of and during the period of the employment with the
Company and which inventions and works are the "service
invention-creation" and "works made for
hire" as
defined under applicable law.  If any one or more
of the aforementioned Inventions can be protected by copyright and are not
considered to be "service
invention-creation" or "works made for
hire" as
defined under applicable law, such items shall be deemed to be assigned and
transferred completely and exclusively to the Company, or its designee, by
virtue of the execution of this Agreement by the Executive.

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    (e)           The
Executive acknowledges that the decision whether or not to commercialize or
market any invention developed by him solely or jointly with others is within
the Company' sole discretion and for the sole benefit of the Company and/or any
other member of the Group, and that no royalty will be due to the Executive as a
result of the Company's efforts (or the efforts of any member of the Group) to
commercialize or market any such Invention.

     

    (f)           The
Executive shall keep and maintain adequate and current written records of all
Inventions made by him (solely or jointly with others) during the term of his
employment with the Company.  The records will be in the form of
notes, sketches, drawings, and any other format that may be specified by the
Company.  The records will be available to and remain the sole
property of the Company at all times.

     

    (g)           The
Executive shall assist the Company, or its designee, at the Company's expense,
in every proper way to secure the Company's (or its designee's) rights in the
Inventions and any copyrights, patents, mask work rights or other intellectual
property rights relating thereto in any and all countries, including the
disclosure to the Company of all pertinent information and data with respect
thereto, the execution of all applications, specifications, oaths, assignments
and all other instruments which the Company shall deem necessary in order to
apply for and obtain such rights and in order to assign and convey to its
successors, assigns, and nominees the sole and exclusive rights, title and
interest in and to such Inventions, and any copyrights, patents, mask work
rights or other intellectual property rights relating thereto, and to do all
other things reasonably requested by the Company, or its designee, (both during
and after the term of this Agreement) in order to vest more fully in the
Company, or its designee, all ownership rights in the Inventions.

     

    (h)           If
the Company is unable because of the Executive's mental or physical incapacity
or for any other reason to secure his signature to apply for or to pursue any
application for any United States, PRC or foreign patents or copyright
registrations covering Inventions or original works of authorship assigned to
the Company as set forth above, the Executive hereby irrevocably designates and
appoints the Company and its duly authorized officers and agents as his agent
and attorney in fact, to act for and in his behalf and stead to execute and file
any such applications and to do all other lawfully permitted acts to further the
prosecution and issuance of letters patent or copyright registrations thereon
with the same legal force and effect as if executed by the
Executive.

     

    (i)           With
respect to Inventions that are not considered as "service
invention-creation" or "works made for
hire" under
applicable law, to the extent that any application, registration or other
governmental processes may be required in order to protect the Company's, or its
designee's ownership of any Inventions, the Executive hereby grants the Company,
or its designee, an irrevocable power of attorney to execute all documents and
do all acts in his name as the Company, or its designee, may deem necessary or
advisable to effect such processes and agrees to diligently and faithfully
assist the Company, or its designee, in effecting such processes.

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    (j)           Any
assignment of any Inventions under this Agreement includes all rights of
paternity, integrity, disclosure and withdrawal and any other rights that may be
known as or referred to as "moral rights" (collectively
"Moral Rights").  To
the extent such Moral Rights cannot be assigned under applicable law and to the
extent the following is allowed by the laws in the various countries where such
Moral Rights exist, the Executive hereby waives such Moral Rights and consent to
any action of the Company, or its designee, that would violate such Moral Rights
in the absence of such consent.  The Executive hereby covenants to
confirm any such waivers and consents from time to time as requested by the
Company, or its designee.

     

    (k)           In
respect of any inventions which are not Inventions but which relate to the
business of the Company or Group, the Company or any member of the Group shall
have a pre-emptive right to acquire for itself or its nominee all or any part
(at the Company's option) of the Executive's rights therein within three (3)
months of their disclosure by the Executive to the Company under Section 13(c)
above on such terms as shall be agreed by the Company and
Executive.  In the event that the Company or any member of the Group
decides not to acquire such inventions, the Executive hereby grants to the
Company, a perpetual, worldwide, irrevocable, royalty-free, fully paid-up,
exclusive license to use for any and all purposes and in any manner any such
other inventions that are within the scope of the actual and anticipated
business of the Company or the Group.

     

    14.           Enforcement
of Restrictive Covenants.  Executive acknowledges and agrees
that the Company's remedies at law for a breach or threatened breach of any of
the provisions of Sections 10, 11,12 and 13 herein would be inadequate and,
in recognition of this fact, Executive agrees that, in the event of such a
breach or threatened breach, in addition to any remedies at law, the Company,
without posting any bond, shall be entitled to obtain equitable relief in the
form of specific performance, temporary restraining order, temporary or
permanent injunction or any other equitable remedy which may then be
available.  In addition, upon a violation by Executive of Section 10,
11, 12 or 13, as determined in good faith by the Board, all payments remaining
due to Executive pursuant to Section 9(c), if applicable, shall immediately
cease.

     

    15.           Miscellaneous.

     

    (a)           Acceptance.  Executive
hereby represents that his performance and execution of this Agreement does not
and will not constitute a breach of any agreement or arrangement to which he is
a party or is otherwise bound, including, without limitation, any noncompetition
or employment agreement.

     

    (b)           Settlement
and Arbitration of Disputes: Any controversy or claim arising out of or relating
to this Agreement or the breach thereof shall be settled exclusively by
arbitration in accordance with the rules of the China International Economic and
Trade Arbitration Commission, which the arbitration rules shall be effective at
the time of applying. The case shall be heard in Beijing. The arbitral award
shall be final, and it shall be bound by both parties.

     

    (c)           Entire
Agreement/Effectiveness of this Agreement.  This Agreement
constitutes the entire agreement between the parties as of the Effective Date
and supersedes all previous agreements and understandings between the parties
with respect to the subject matter thereof.

     

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    (d)           Amendments.  There
are no restrictions, agreements, promises, warranties, covenants or undertakings
between the parties with respect to the subject matter herein other than those
expressly set forth herein.  This Agreement may not be altered,
modified, or amended except by written instrument signed by the parties
hereto.  Sections 10, 11, 12, 13 and 14 survive the termination of
this Agreement and the termination of Executive's employment with the Company,
except as otherwise specifically stated therein.

     

    (e)           No
Waiver.  The failure of a party to insist upon strict adherence
to any term of this Agreement on any occasion shall not be considered a waiver
of such party's rights or deprive such party of the right thereafter to insist
upon strict adherence to that term or any other term of this
Agreement.

     

    (f)           Severability.  In
the event that any one or more of the provisions of this Agreement shall be or
become invalid, illegal or unenforceable in any respect, each such provision
shall be processed with whatever deletion or modification is necessary so that
the provision is otherwise legal, valid and enforceable and gives effect to the
commercial intention of the parties. To the extent it is not possible to delete
or modify the provision, in whole or in part, then such provision or part of it
shall, to the extent that it is illegal, invalid or unenforceable, be deemed not
to form part of this Agreement and the validity, legality and enforceability of
the remaining provisions of this Agreement shall, subject to any deletion or
modification made hereunder, not be affected.

     

    (g)           Assignment.  Executive
shall not have the right to assign his interest in this Agreement, any rights
under this Agreement or any duties imposed under this Agreement.  The
Company may assign all rights and obligations under this Agreement to any
successor in interest to substantially all of the business operations of the
Company. However the Company shall guarantee that Executive continues to enjoy
all the rights and benefits under this Agreement once the rights and obligations
of the Company under this Agreement is assigned to the third party. Such
assignment shall become effective when the Company notifies Executive of such
assignment or at such later date as may be specified in such
notice.  Upon such assignment, the rights and obligations of the
Company hereunder shall become the rights and obligations of such successor
company.

     

    (h)           Notice.  For
the purpose of this Agreement, notices and all other communications provided for
in this Agreement shall be in writing and shall be deemed to have been duly
given if delivered personally, if delivered by overnight courier service, if sent by facsimile
transmission or if mailed by registered mail, return receipt requested,
postage prepaid, addressed to the respective addresses or sent via facsimile to
the respective facsimile numbers, as the case may be, as set forth below, or to
such other address as either party may have furnished to the other in writing in
accordance herewith, except that notice of change of address shall be effective
only upon receipt; provided, however, that (i) notices sent by personal delivery
or overnight courier shall be deemed given when delivered; (ii) notices sent by
facsimile transmission shall be deemed given upon the sender's receipt of
confirmation of complete transmission, and (iii) notices sent by United States
registered mail shall be deemed given seven  (7) days
after the date of deposit in the United States mail.

    
 

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    
       

      
        	
                If
      to Executive, to:

              
	 
	
                James
      Qi

              
	
                No.1
      Guiba Rd,

              
	
                Guixi
      District, Yingtan City

              
	
                Jiangxi
      Province, 335400

              
	 
      
	
                If
      to the Company, to:

              
	
                No.1
      Guiba Rd,

              
	
                Guixi
      District, Yingtan City

              
	
                Jiangxi
      Province, 335400

              
	
                Facsimile:
      +86 (701)333-8888

              
	
                Attention:
      Linquan Hu

              
	 
	
                with
      a copy to:

              
	 
      
	
                Hodgson
      Russ LLP

              
	
                1540
      Broadway, 24th Floor

              
	
                New
      York, NY 10036

              
	
                Facsimile:
      (212) 751-0928

              
	
                Attention:
      Jeffrey Rinde

              

      

    

    

     

    (i)           Withholding
Taxes.  The Company may withhold from any amounts payable under
this Agreement such Federal, state, local and foreign taxes as may be required
to be withheld pursuant to any applicable law or regulation.

     

    (j)           Continuation
of Employment.  Unless the parties otherwise agree in writing,
continuation of Executive's employment with the Company beyond the expiration of
the Employment Term shall be deemed an employment "at will" and shall not be
deemed to extend any of the provisions of this Agreement, and Executive's
employment may thereafter be terminated at will by Executive or the
Company.

     

    (k)           Counterparts.  This
Agreement may be signed in counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same
instrument.

     

    [THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the
day and year first above written.

     

     

    

    
      
        	 	EXECUTIVE
      (Chief
      Executive Officer)
	 	/s/
      Linquan Hu
	 	
                Linquan
      Hu

              
	
                 
      

              	
                 

              

      

    

     

     

    
      	 	Yi
      Xin International Copper Inc.
	 	 
	
               
      

            	
              By:/s/ Fucan
  Dong

            

    

     

    
      	
               
      

            	
              Name: Fucan
    Dong

            

    

     

    
      	
               
      

            	
              Title:
      Director

            

    

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    Prior
Inventions

     

    None

     

    

     

    

     

    
 

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      

 

    

     

    Attachment
I

    

    Duties of
CEO:

    

    The
Company employs Linquan Hu as the CEO to perform the customary duties of those
positions set forth in the By-laws, and as the Company, by action of its Board
of Directors, may provide from time to time. During the term of this
Agreement, the President shall devote his ability and attention to the
business of the Company on a regular, "best efforts," and professional basis and
at all times such efforts shall be under the direction of the Board of
Directors. And shall report directly to the Board of the Company and his detail
duties are as following: 

    

    Setting
strategy and vision. The CEO sets the direction together with senior management
team, and they develop strategy.  In regards to which markets the
company will enter, against which competitors, with what product lines, how will
the company differentiate itself, the CEO decides, sets budgets, forms
partnerships, and hires a team to steer the company accordingly.

    

    Team-building.
The CEO hires, fires, and leads the senior management team. They, in turn, hire,
fire, and lead the rest of the organization.  The CEO must be able to
hire and fire non-performers. He must resolve differences between senior team
members, and keep them working together in a common direction. He sets direction
by communicating the strategy and vision of where the company is
going.

    

    Capital
allocation. The CEO sets budgets within the firm. He funds projects which
support the strategy, and ramps down projects which lose money or don’t support
the strategy. He considers carefully the company’s major expenditures, and
manages the firm’s capital. If the company can’t use each dollar raised from
investors to produce at least $1 of shareholder value, she decides when to
return money to the investors.

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