Document:

Exhibit 10.1

    
      
        

      

    

    Exhibit
      10.1

     

    

    JOINT-VENTURE
      AGREEMENT

    

    Party
      A:

     

    Chang
      Jiang Computer Group (CJCC)

     

    Legal
      Representative:

     

    Address:
      337 Middle Shandong Rd, Shanghai, China, 200001 

     

    

    Party
      B:

     

    Magstone
      Innovation Inc (MSI)

     

    Legal
      Representative: Shixiong (Edward) Chen

     

    Address:
      Room 508,Venture Center,Tianan Hi-Tech ecological Park,

    No.
      730,Yingbin Road,Shiqiao town,Panyu District,

    Guangzhou,
      China, 511400

    

    Party
      C:

     

    SEQUIAM
      BIOMETRICS, INC. (SEQUIAM)

     

    Legal
      Representative: Kevin Henderson

     

    Address:
      300 Sunport Lane, Orlando, Florida 32809,
      USA

    

    
      	 	
              1.

            	
              Three
                parties as listed above herewith agree to enter an agreement of creating
                a
                joint-venture company

            

    

     

    
      	 	
              2.

            	
              Tentative
                Name (upon availability
                check):

            

    

    
      	 	
              a.

            	
              Chinese
                Name: 上海檁江智缃信息技术有榰公司(Shanghai Changjiang Intelligence Information
                Technology LTD) 

            

    

    
      	 	
              b.

            	
              English:
                 to be decided

            

    

     

    
      	 	
              3.

            	
              Company
                Location:
                Shanghai

            

    

     

    
      	 	
              4.

            	
              Business
                Scope: 

            

    

    
      	 	
              a.

            	
              Develop
                and market Biometric products and applications in China and other
                regions

            

    

    
      	 	
              b.

            	
              Support
                Sequiam-USA by providing needed products and R&D
                service

            

    

    
      	 	
              c.

            	
              Other
                IT products agreed by all
                parties

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              5.

            	
              Total
                Capital Investment:
                USD $200,000. Breakdown:

            

    

     

    
      	
              Party

            	 	
              Amount

            	 	
              Shares

            	 
	
              CJCC

            	 	
              $

            	
              80,000

            	 	 	
              40

            	
              %

            
	
              MSI

            	 	
              $

            	
              60,000

            	 	 	
              30

            	
              %

            
	
              Sequiam

            	 	
              $

            	
              60,000

            	 	 	
              30

            	
              %

            

    

     

    
      	 	
              6.

            	
              Terms
                of Cash Contribution:
                Each party should wire transfer its share of fund to the designated
                company Bank account within 15 days when the account becomes ready
                upon
                company registration approval by Chinese
                government.

            

    

     

    
      	 	
              7.

            	
              JV
                Company Registration:
                With thorough consultation, CJCC is responsible for preparing necessary
                documents and applying for registration of the new
                joint-venture.

            

    

     

    
      	 	
              8.

            	
              Date
                of signing:
                Final signing of all agreements for joint-venture by three parties:
                April
                27th, 2006 at Shanghai, China. It is expected to receive official
                registration approval of the new company within 45 days upon submitting
                all required documents. 

            

    

     

    
      	 	
              9.

            	
              Business
                Objectives: Become
                the leading supplier of biometric products in
                China:

            

    

    
      	 	
              a.

            	
              Year
                One: 

            

    

    
      	 	
              i.

            	
              Annual
                Sales: $1-2 million

            

    

    
      	 	
              ii.

            	
              Focus
                on government contracts and
                application

            

    

    
      	 	
              iii.

            	
              Build
                an effective marketing team 

            

    

     

    
      	 	
              b.

            	
              Year
                Three

            

    

    
      	 	
              i.

            	
              Annual
                Sales: $5-8 million

            

    

    
      	 	
              ii.

            	
              Focus
                on government contracts and
                application

            

    

    
      	 	
              iii.

            	
              Develop
                consumer products and applications

            

    

    
      	 	
              iv.

            	
              Fully
                capable of developing new product and applications based on Sequiam’s core
                technology

            

    

    
      	 	
              v.

            	
              Build
                an effective R&D and Marketing structure to quickly bring new products
                to the market

            

    

     

    
      	 	
              c.

            	
              Year
                Five

            

    

    
      	 	
              i.

            	
              Annual
                Sales: $15-20 million

            

    

    
      	 	
              ii.

            	
              Top
                Industrial leader in China known for biometric
                applications

            

    

    
      	 	
              iii.

            	
              Full
                line of biometric products for all sectors, provide total solution
                to
                customers

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	 	
              iv.

            	
              Strong
                team for product development and application deployment, own many
                intellectual properties

            

    

    
      	 	
              v.

            	
              Advanced
                manufacturing facilities for building high quality and top performance
                products to supply both China and overseas
                market

            

    

     

    
      	 	
              10.

            	
              Duties,
                Rights and Roles for three
                parties

            

    

    
      	 	
              a.

            	
              CJCC:

            

    

    
      	 	
              i.

            	
              Contribute
                necessary people resource to operate the new joint-venture for the
                startup
                stage in year one. 

            

    

    
      	 	
              ii.

            	
              Promote
                use of biometric products produced by the joint-venture in all its
                other
                divisions and projects.

            

    

    
      	 	
              iii.

            	
              Utilize
                its current strong government ties to market biometric
                products.

            

    

    
      	 	
              iv.

            	
              Help
                secure necessary Bank loan for operation and inventory.
                

            

    

    

    
      	 	
              b.

            	
              MSI:

            

    

    
      	 	
              i.

            	
              In
                the startup stage of year one, contribute necessary R&D resources and
                manufacturing resources for developing key products for the joint-venture:
                current products in development: HDT, Bank Finger Print Stand-alone
                Unit.

            

    

    
      	 	
              ii.

            	
              Provide
                full support by charging minimum fees and giving high priority to
                the new
                product developments proposed by the joint-venture.
                

            

    

    
      	 	
              iii.

            	
              Provide
                full engineering training and support to build R&D structure at the
                joint-venture.

            

    

    
      	 	
              iv.

            	
              Disclose
                all necessary hardware designs and software codes involved in the
                projects
                with the joint-venture. Confidentiality should be signed to ensure
                MSI’s
                interest.

            

    

    

    
      	 	
              c.

            	
              Sequiam:

            

    

    
      	 	
              i.

            	
              In
                the startup stage of year one, contribute necessary R&D resources for
                developing key products for the joint-venture: current products in
                development: HDT, Bank Finger Print Stand-alone
                Unit.

            

    

    
      	 	
              ii.

            	
              Allow
                the join-venture exclusive right to manufacture and market its current
                products in China market.

            

    

    
      	 	
              iii.

            	
              Provide
                full support and give high priority to the new product developments
                proposed by the joint-venture. 

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	 	
              iv.

            	
              Provide
                full engineering training and support to build R&D structure at the
                joint-venture.

            

    

    
      	 	
              v.

            	
              Allow
                the join-venture exclusive right to use its core technologies and
                intellectual properties to develop products for China
                market.

            

    

    
      	 	
              vi.

            	
              Disclose
                all necessary hardware designs and software codes involved in the
                projects
                with the joint-venture. Confidentiality should be signed to ensure
                Sequiam’s interest. 

            

    

    
      	 	
              vii.

            	
              The
                join-venture grants Sequiam exclusive rights to distribute its products
                in
                North America, Europe and Africa. 

            

    

     

    
      	 	
              11.

            	
              ENTIRE
                UNDERSTANDING

            

    

    

    This
      agreement combining with the company BYLAWS signed be all three parties
      constitutes the entire understanding of the Parties with respect to the subject
      matter hereof and supersedes any prior understanding, agreements and
      representations made between the Parties, whether oral or written, with respect
      to such subject matter. 

    The
      parties have caused this agreement to be executed as of the date first written
      above.

    

    

    
      	
              CJCC

            	 	 	 	
              SEQUIAM

            	 
	
              By:

            	
               
                

            	 	
              By:

            	
               
                

            	 
	
              Name:

            	
               
                

            	 	
              Name:

            	
              Kevin
                Henderson

            	 
	
              Title:
                

            	
               
                

            	 	
              Title:

            	
              President

            	 
	
              Date:

            	
               
                

            	 	
              Date:

            	
               
                

            	 

    

    

    
      	
              MSI

            	 	 
	
              By:

            	
               
                

            	 
	
              Name:

            	
              Shixiong
                Chen

            	 
	
              Title:

            	
              President

            	 
	
              Date:Exhibit 10.2

    
      
        

      

    

    Exhibit
      10.2

     

    

    Shanghai
      Changjiang Intelligent Information Technology Ltd.

     

    

    BYLAWS

     

    

    April
      27th,
      2006

    
      
        
        

      

      
        -
          1
          -

        
          

        

      

      
        
        

      

    

     

    Table
      of contents

     

    
      	
              Chapter
                1 General Provisions

            	
              3

            
	 	 
	
              Chapter
                2 Mission and Scope of Business

            	
              4

            
	 	 
	
              Chapter
                3 Shareholders and Shareholders’ Meeting

            	
              5

            
	 	 
	
              Section
                1 Shareholders

            	
              5

            
	 	 
	
              Section
                2 General Meeting of Shareholders

            	
              6

            
	 	 
	
              Chapter
                4 Board of Directors

            	
              8

            
	 	 
	
              Chapter
                5 the General Manager

            	
              11

            
	 	 
	
              Chapter
                6 the Supervisor

            	
              13

            
	 	 
	
              Chapter
                7 Accounting System and Profit Distribution

            	
              14

            
	 	 
	
              Chapter
                8 Dissolution and Liquidation

            	
              15

            
	 	 
	
              Chapter
                9 Period of Operations

            	
              18

            
	 	 
	
              Chapter
                10 Supplementary Provisions

            	
              19

            

    

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

        
        

      

    

    Chapter
      1
      General Provisions

     

    Article
      1

     

    These
      articles of incorporation are formulated according to The Company Law of the
      People’s Republic of China (hereafter referred to as Company Law) and other
      relevant regulations for the purpose of maintaining legitimate benefits for
      the
      shareholders and in so doing standardizing the organization and operations
      of
      the company.

    

    Article
      2

     

    Name
      of
      corporation: Shanghai Changjiang Intelligent Information Technology
      Ltd.

    Corporation
      type: Limited company

    Registered
      office: Shanghai

    

    Article
      3

     

    The
      registered capital of the company is US$200,000.

    Names
      of
      the shareholders, invested capital and sources of investment are as
      follows:

    

    
      	
              Name
                of shareholders

            	
              Invested
                capital

            	
              Proportion
                of investment

            	
              Form
                of investment

            
	
              Changjiang
                Computer (Group) Corporation

            	
              US$80,000

            	
              40%

            	
              Cash

            
	
              Magstone
                Innovation Inc

            	
              US$60,000

            	
              30%

            	
              Cash

            
	
              Sequiam
                Biometrics, Inc.

            	
              US$60,000

            	
              30%

            	
              Cash

            

    

     

    
      
        
        

      

      
        -
          3
          -

        
          

        

      

      
        
        

      

    

     

    Article
      4

     

    The
      Chairman of the Board of Directors is the person who has legal authority to
      represent the company.

    

    Article
      5

     

    Each
      shareholder shall assume limited liability in accordance with the numbers of
      shares held in the company and the company shall assume liability for its debts
      to the extent of its entire assets. No shareholder shall be liable for any
      value
      greater than the shares that shareholder owns within the entity. 

     

    Article
      6

     

    Shanghai
      Changjiang Intelligent Information Technology is a registered legal entity
      in
      China and shall abide by Chinese laws, regulations and relevant rules. The
      company shall be governed and protected by Chinese law.

    

    Article
      7

     

    From
      the
      date that they take effect, these articles shall form a binding legal document
      to standardize the company’s organization and operations, and to establish the
      rights and obligations between the company and its shareholders, and among
      shareholders. The shareholders shall have the right to bring legal action
      against the company, other shareholders, directors, supervisors, general manager
      and other senior executives in accordance with these articles; also, the company
      shall have the right to bring legal action against the shareholders, directors,
      supervisors, general manager and other senior executives in accordance with
      these articles.

    

    Chapter
      2
      Mission and Scope of Business

     

    Article
      8

     

    The
      mission of the company is to actively initiate and expand bio-fingerprint
      markets, increase its overall competitiveness in research and development,
      manufacturing, sales and service; to raise the company’s profile and reputation
      in the Intelligent Information Industry; strengthen network security, develop
      bio-fingerprinting products and expand its operations. The company’s goal is to
      become a public company within three years through the independent research
      and
      development of its own technologies and products.

    
      
        
        

      

      
        -
          4
          -

        
          

        

      

      
        
        

      

    

    

    Article
      9

     

    The
      scope
      of this business is fingerprint data encryption for PC network products,
      including fingerprinting-enabled USB drive, USB locks, scanners, mice, safe
      boxes, hand-held mobile terminals and other intelligent information products
      (as
      approved by the Bureau of Industry and Commerce).

    

    Chapter
      3
      Shareholders and Shareholders’ Meeting

     

    Section
      1
      Shareholders

     

    Article
      10

     

    Each
      shareholder of the company shall enjoy the rights and assume the obligations
      in
      accordance with the number of shares held.

    

    Article
      11

     

    Each
      shareholder of the company shall enjoy the following rights:

    
      	 	
              1)

            	
              Participate
                in or appoint a proxy to participate in the shareholders’ and Board of
                Directors’ meetings;

            

    

    
      	 	
              2)

            	
              Exercise
                voting rights in accordance with the number of shares
                held;

            

    

    
      	 	
              3)

            	
              Observe
                the operation of the company and make relevant
                recommendations;

            

    

    
      	 	
              4)

            	
              Share
                Transfers shall be governed according to law, administrative regulations
                and these articles as well as the signed supplemental agreement (on
                raising capital and issuing additional
                shares);

            

    

    
      	 	
              5)

            	
              Obtain
                relevant information as related to the law and these
                articles;

            

    

    
      	 	
              6)

            	
              Other
                rights authorized by law, administrative regulations and these
                articles.

            

    

    

    Article
      12

     

    Each
      shareholder shall assume the following obligations:

    
      	 	
              1)

            	
              Abide
                by these articles and the agreement on raising capital and issuing
                additional shares;

            

    

     

    
      
        
        

      

      
        -
          5
          -

        
          

        

      

      
        
        

      

    

     

    
      	
            	2)	
              Remit
                funds as described in full as directed in Article 3 of these
                articles;

            

    

    
      	 	
              3)

            	
              May
                not withdraw investment unless specified according to law and
                regulations;

            

    

    
      	 	
              4)

            	
              Fulfill
                other obligations as stipulated by law, administrative regulations
                and
                these articles.

            

    

     

    Article
      13

     

    Any
      shareholder transferring his shares to non-shareholders must have approval
      of
      over two-thirds of all shareholders; any shareholder in disagreement shall
      purchase the transferred capital or be regarded as being in agreement. The
      company shall record the name or title, domicile and transferred capital of
      the
      transferee into the registry of shareholders. 

     

    Section
      2
      General Meeting of Shareholders

     

    Article
      14

     

    Shareholders
      Committee consists of all shareholders and holds the final authority of the
      company.

    

    Article
      15

     

    The
      general meeting of shareholders shall perform the following powers and
      duties:

    
      	 	
              1)

            	
              to
                decide on the business operations and investment plans for the
                company;

            

    

    
      	 	
              2)

            	
              to
                elect, appoint and dismiss the members of the Board of Directors
                and
                decide upon those matters relating to compensation of the
                directors;

            

    

    
      	 	
              3)

            	
              to
                elect, determine compensation for, appoint and dismiss the supervisors
                who
                are representatives of the
                shareholders;

            

    

    
      	 	
              4)

            	
              to
                review and approve the reports of the Board of Directors or executive
                directors;

            

    

    
      	 	
              5)

            	
              to
                review and approve the reports of the supervisory committee or
                supervisors;

            

    

    
      	 	
              6)

            	
              to
                review and approve the company’s annual fiscal budget and year end
                financial statements;

            

    

    
      	 	
              7)

            	
              to
                review and approve company profit distribution and loss adjustment
                statements;

            

    

    
      
        
        

      

      
        -
          6
          -

        
          

        

      

      
        
        

      

    

    

    
      	 	
              8)

            	
              to
                adopt resolutions on the increase or decrease of registered
                capital;

            

    

    
      	 	
              9)

            	
              to
                adopt resolutions on the issuance of company
                bonds;

            

    

    
      	 	
              10)

            	
              to
                adopt resolutions on shares transferred by the shareholders to
                non-shareholders;

            

    

    
      	 	
              11)

            	
              to
                adopt resolutions upon matters such as mergers, forming new companies,
                changing organization type, dissolution or
                liquidation;

            

    

    
      	 	
              12)

            	
              to
                amend company articles;

            

    

    
      	 	
              13)

            	
              Other
                important unspecified matters.

            

    

    

    Article
      16

     

    The
      resolutions of the general meeting of shareholders shall be approved by over
      one-half of those shareholders who are entitled to exercise voting rights.
      When
      adopting resolutions on such issues as increasing or decreasing registered
      capital, forming new companies, mergers, dissolution, changing organization
      type
      or articles of incorporation, a unanimous vote of all shareholders will be
      required.

    

    Article
      17

     

    In
      the
      general meeting of shareholders, each shareholder shall exercise voting rights
      in proportion to the number of shares held. 

    

    Article
      18

     

    The
      regular meeting of shareholders shall be held once a year. Those shareholders
      representing more than one-fourth with voting rights or more than one-fourth
      of
      the directors or supervisors may request a special meeting. The shareholders’
meeting shall be called by the Board of Directors and presided over by the
      Chairman of the Board. In such case where the Chairman is unable to perform
      his
      duties due to unforeseen circumstances, the Vice Chairman or other directors,
      as
      designated by the Chairman, may preside over the meeting. The initial meeting
      of
      shareholders shall be called and presided over by the shareholder who holds
      the
      most shares.

    
      
        
        

      

      
        -
          7
          -

        
          

        

      

      
        
        

      

    

    

    Article
      19

     

    The
      shareholders shall attend their general meeting and they may appoint a proxy
      in
      writing if they are unable to attend. 

    The
      power
      of proxy shall give the name of the proxy, the matters for which he is
      authorized, the limitation of his rights and duration of the proxy, and shall
      be
      signed or sealed by that person who is granting the proxy.

    

    Article
      20

     

    The
      shareholders shall be notified fifteen days prior to the shareholders’ meeting.
      All the decisions adopted by the shareholders’ meeting shall be written into the
      minutes with the signatures of all shareholders in attendance. The contents
      of
      the resolutions made by the Board of Directors shall not violate state laws,
      regulations or these articles of incorporation.

    

    Chapter
      4
      Board of Directors

     

    Section
      1
      Board of Directors

     

    Article
      21

     

    The
      Board
      of Directors established by the company shall report to the shareholders. The
      Board consists of five directors, including one Chairman and four directors,
      each serving a term of three years. They may be re-elected to serve a
      consecutive term. The shareholders’ committee shall not dismiss the directors
      without just cause. The directors of the company consist of the following:
      three
      directors recommended by Changjiang Computer (Group), one director recommended
      by Magstone Innovation Inc., and one director recommended by Sequiam Biometrics,
      Inc.

    

    Article
      22

     

    The
      directors shall serve a term of three years and may be re-elected to a
      consecutive term when the first term comes to an end. The directors shall not
      be
      dismissed without just cause.

    
      
        
        

      

      
        -
          8
          -

        
          

        

      

      
        
        

      

    

     

    Article
      23

     

    The
      Board
      of Directors shall report to the shareholders and exercise the following powers
      and duties:

    
      	 	
              1)

            	
              to
                hold the shareholders’ meeting and report to the
                shareholders;

            

    

    
      	 	
              2)

            	
              to
                implement resolutions adopted at the shareholders’
                meeting;

            

    

    
      	 	
              3)

            	
              to
                decide on operational and investment plans for the
                company;

            

    

    
      	 	
              4)

            	
              to
                formulate annual budget plans and final accounts of the financial
                statements for the company;

            

    

    
      	 	
              5)

            	
              to
                formulate plans of profit distribution and loss adjustment for the
                company;

            

    

    
      	 	
              6)

            	
              to
                formulate the plans of any increase or decrease of registered capital
                for
                the company;

            

    

    
      	 	
              7)

            	
              to
                formulate the procedures of the company’s mergers, separation, changing
                organization type and dissolution
                plans;

            

    

    
      	 	
              8)

            	
              to
                decide on the corporate structure ;

            

    

    
      	 	
              9)

            	
              to
                appoint or dismiss the General Manager, and based upon the nomination
                of a
                General Manager, to appoint or dismiss the deputy General Manager
                and
                financial officer, and decide on those matters relating to their
                compensation;

            

    

    
      	 	
              10)

            	
              to
                formulate the basic management system of the
                company;

            

    

    
      	 	
              11)

            	
              to
                formulate incentive plans for senior
                executives;

            

    

    
      	 	
              12)

            	
              to
                formulate the plans for amendment of the articles of
                incorporation;

            

    

    
      	 	
              13)

            	
              to
                exercise other powers and duties as authorized by the shareholders’
                meeting.

            

    

    

    Article
      24

     

    The
      Board
      of Directors shall have one Chairman, as recommended by Changjiang Computer
      (Group) Corporation.

    

    Article
      25

     

    The
      Chairman shall exercise the following powers and duties:

    
      	 	
              1)

            	
              to
                hold and preside over the Board of Directors’
                meetings;

            

    

    
      	 	
              2)

            	
              to
                supervise and review the implementation of resolutions of the Board
                of
                Directors;

            

    

    
      
        
        

      

      
        -
          9
          -

        
          

        

      

      
        
        

      

    

    

    
      	 	
              3)

            	
              to
                sign important documents and other documents that need to be signed
                by the
                official with signing authority;

            

    

    
      	 	
              4)

            	
              to
                exercise the powers and duties of the company
                representative;

            

    

    
      	 	
              5)

            	
              to
                exercise special authority under the law in the best interest of
                the
                company when Acts of God occur, and report to the Board of Directors
                after
                the emergency is over; and

            

    

    
      	 	
              6)

            	
              to
                exercise other powers and duties as authorized by the Board of
                Directors.

            

    

    

    Article
      26

     

    The
      Vice
      Chairman or other directors shall, upon designation by the Chairman, exercise
      the powers and duties of the Chairman on his behalf, in cases where the Chairman
      is unable to perform his/her powers or duties.

    

    Article
      27

     

    Meetings
      of the Board of Directors shall be held at least once a year, when called by
      the
      Chairman. All the directors shall be notified in writing ten days prior to
      the
      meeting.

    

    Article
      28

     

    More
      than
      one-quarter of the total number of Directors is required to jointly request
      a
      special meeting of the Board of Directors.

    

    Article
      29

     

    Board
      meetings shall be held only when more than two thirds (2/3) of the directors
      are
      present. Any resolutions of the Board of Directors will be made effective only
      with the concurrence of two thirds (2/3) of the Board.

    
      
        
        

      

      
        -
          10
          -

        
          

        

      

      
        
        

      

    

    

    Article
      30

     

    Board
      meetings shall be attended by the directors in person. If a director is unable
      to attend under certain circumstances, then he/she may entrust another director
      in writing to act as a proxy on his/her behalf.

     

    The
      power
      of proxy shall give the name, the matters for which he is authorized, limitation
      of rights and duration of the proxy, and shall be signed or sealed by the person
      granting the proxy.

    

    Article
      31

     

    Directors
      shall sign the resolutions passed by the meeting of the Board and shall assume
      the liability for such resolutions. If a board resolution violates the law,
      regulations or these articles, thus causing serious losses to the company,
      then
      the directors responsible for the resolution shall be liable for compensation
      to
      the company. However, if a director is proved to have expressed objection to
      such a resolution when it was put to a vote and his objection was recorded
      in
      the minutes, then he may be exempted from such liability.

    

    Chapter
      5
      the General Manager

     

    Article
      32

     

    The
      company shall have one General Manager, as nominated by the Chairman and
      appointed or dismissed by the Board of Directors, and shall have several Vice
      General Managers, nominated by the General Manager and appointed or dismissed
      by
      the Board of Directors.

     

    The
      directors or Chairman of the Board may also hold the positions of General
      Manager, Vice General Manager or other senior executive posts.

    

    Article
      33

     

    The
      General Manager shall serve a term of three years and may serve consecutive
      terms.

    
      
        
        

      

      
        -
          11
          -

        
          

        

      

      
        
        

      

    

     

    Article
      34

     

    The
      General Manager is subject to the Board of Directors and exercises the following
      powers and duties:

    
      	 	
              1)

            	
              to
                be in charge of the operation and management of the company and report
                to
                the Board of Directors;

            

    

    
      	 	
              2)

            	
              to
                execute the resolutions, annual plans and investment plans as adopted
                by
                the Board of Directors;

            

    

    
      	 	
              3)

            	
              to
                set up the internal management
                structure;

            

    

    
      	 	
              4)

            	
              to
                establish the basic management system for the
                company;

            

    

    
      	 	
              5)

            	
              to
                formulate specific regulations for the
                company;

            

    

    
      	 	
              6)

            	
              to
                recommend appointments or dismissals of financial
                officers;

            

    

    
      	 	
              7)

            	
              to
                appoint or dismiss other management personnel, except for those who
                shall
                be appointed or dismissed by the Board of
                Directors;

            

    

    
      	 	
              8)

            	
              to
                draft proposals regarding employees’ salaries, benefits, bonuses, rewards
                and penalties, and to decide upon the appointments and dismissal
                of the
                employees; and

            

    

    
      	 	
              9)

            	
              to
                exercise other powers and duties as authorized by the Articles of
                Incorporation or the Board of
                Directors.

            

    

    

    Article
      35

     

    The
      General Manager shall attend board meetings. The Vice General Manager shall
      assist the General Manager and shall perform duties on the General Manager’s
      behalf, upon his authorization in writing in the absence of the General
      Manager.

    

    Article
      36

     

    The
      General Manager shall report to the Board of Directors or Supervisory Board
      based on the requirements of the Board of Directors or Supervisory Board
      regarding the signing and execution of important contracts, uses of funds and
      situations regarding profits or losses of the company. The General Manager
      must
      attest to the accuracy of his report.

    
      
        
        

      

      
        -
          12
          -

        
          

        

      

      
        
        

      

    

    

    Article
      37

     

    When
      the
      General Manager drafts any directives regarding the interests and rights of
      employees related to salaries, benefits, workers’ safety, workers’ compensation
      or employment (or dismissal), etc, he/she shall first consult with the labor
      union.

    

    Article
      38

     

    The
      General Manager shall establish detailed operational procedures that are subject
      to approval by the Board of Directors before execution.

    

    Chapter
      6
      the Supervisor

     

    Article
      39

     

    The
      company shall have one supervisor, as recommended by Sequiam Biometrics, Inc.
      The Supervisor may be re-elected to a consecutive term.

    

    Article
      40

     

    Directors,
      the General Manager and other senior executives may not serve concurrently
      as
      supervisor.

    

    Article
      41

     

    The
      term
      of office of the Supervisor shall be three years.

    

    Article
      42

     

    If
      the
      Supervisor is absent from the board meetings twice in succession, he/she shall
      be regarded as being unable to perform his/her duties, and shall be replaced
      by
      the shareholders’ and employee meetings.

    
      
        
        

      

      
        -
          13
          -

        
          

        

      

      
        
        

      

    

    

    Article
      43

     

    The
      Supervisor shall exercise the following powers and duties:

    
      	 	
              1)

            	
              to
                review the financial affairs of the
                company;

            

    

    
      	 	
              2)

            	
              to
                supervise the conduct of directors, the General Manager and other
                senior
                executives regarding the violations of laws, regulations or Articles
                of
                Incorporation during the performance of their powers and
                duties;

            

    

    
      	 	
              3)

            	
              to
                require the directors, the General Manager and other senior executives
                to
                remedy any situation where their acts have damaged the interests
                of the
                company, and shall report to the Board of Directors or the relevant
                state
                agency as necessary;

            

    

    
      	 	
              4)

            	
              to
                propose special board meetings;

            

    

    
      	 	
              5)

            	
              to
                attend board meetings; and

            

    

    
      	 	
              6)

            	
              to
                exercise other powers and duties as stipulated by the Articles of
                Incorporation or as authorized by the
                shareholders.

            

    

     

    Chapter
      7
      Accounting System and Profit Distribution

     

    Article
      44

     

    The
      company shall establish its accounting system in accordance with laws,
      administrative rules and other applicable requirements of the
      state.

    

    Article
      45

     

    The
      company shall prepare an annual financial report within three months after
      the
      completion of each fiscal year and such report shall be audited in accordance
      with the law and submitted to the board meeting for approval.

    

    Article
      46

     

    The
      annual financial report of the company shall contain the following:

    
      	 	
              1)

            	
              Balance
                sheet;

            

    

    
      	 	
              2)

            	
              Profit
                and loss statement;

            

    

    
      	 	
              3)

            	
              Statement
                of income and profit
                distribution;

            

    

    
      
        
        

      

      
        -
          14
          -

        
          

        

      

      
        
        

      

    

    

    
      	 	
              4)

            	
              Cash
                flow statement;

            

    

    
      	 	
              5)

            	
              Addenda
                to the financial statements; and 

            

    

    
      	 	
              6)

            	
              Statement
                and changes of financial status 

            

    

    

    Article
      47

     

    The
      annual financial report shall be prepared in accordance with applicable laws
      and
      regulations.

    

    Article
      48

     

    The
      company shall deliver the financial report to all shareholders within 120 days
      after the completion of each fiscal year.

    

    Article
      49

     

    The
      after-tax profits shall be distributed in the following order:

    
      	 	
              1)

            	
              Compensate
                for the losses of previous years;

            

    

    
      	 	
              2)

            	
              Allocate
                10% to reserves as required by law;

            

    

    
      	 	
              3)

            	
              Allocate
                5% to benefit reserves as required by law;
                and

            

    

    
      	 	
              4)

            	
              Distribute
                the remaining profits among the shareholders on a pro rata basis,
                except
                where stipulated otherwise.

            

    

    

    Chapter
      8
      Dissolution and Liquidation

     

    Article
      50

     

    The
      company shall be dissolved or liquidated in accordance with the law for any
      of
      the following cases, when:

    
      	 	
              1)

            	
              the
                shareholders unanimously pass the resolution to
                dissolve;

            

    

    
      	 	
              2)

            	
              dissolution
                due to merger or split into multiple entities

            

    

    
      	 	
              3)

            	
              declaration
                of bankruptcy due to being unable to pay off debts
                due;

            

    

    
      
        
        

      

      
        -
          15
          -

        
          

        

      

      
        
        

      

    

    

    
      	 	
              4)

            	
              closure
                by law due to legal violations; and

            

    

    
      	 	
              5)

            	
              other
                unspecified circumstances leading to the company being unable to
                remain in
                operation.

            

    

    

    Article
      51

     

    When
      the
      company is dissolved due to the provisions of items (1) and (2) of the preceding
      Article 50, a liquidation committee shall be formed within fifteen days
      thereafter. Members of the liquidation committee shall be selected by
      shareholders at their general meeting.

     

    Where
      the
      company is dissolved due to the provision of item (3) of the preceding Article
      50, the liquidation committee shall be formed in accordance with the contract
      entered into by each party to the merger or split into multiple entities.

     

    Where
      the
      company is dissolved due to the provision of item (4) of the preceding Article
      50, the liquidation committee shall be formed by the shareholders, relevant
      department and professional staff as determined by the people’s court of
      law.

     

    Where
      the
      company is dissolved due to the provision of item (5) of the preceding Article
      50, then the liquidation committee shall be formed by the shareholders, relevant
      departments and professional staff as determined by the administrative
      department.

    

    Article
      52

     

    The
      liquidation committee shall exercise the following powers and
      duties:

    
      	 	
              1)

            	
              to
                notify the creditors by letter or public
                announcement;

            

    

    
      	 	
              2)

            	
              to
                verify the company’s assets, prepare a balance sheet and property
                list;

            

    

    
      	 	
              3)

            	
              to
                deal with any unfinished business;

            

    

    
      	 	
              4)

            	
              to
                pay off any past due taxes;

            

    

    
      	 	
              5)

            	
              to
                deal with claims and debts;

            

    

    
      	 	
              6)

            	
              to
                deal with the remaining properties of the company after paying off
                all the
                debts; and

            

    

    
      	 	
              7)

            	
              to
                participate in any civil lawsuits on behalf of the
                company.

            

    

    
      
        
        

      

      
        -
          16
          -

        
          

        

      

      
        
        

      

    

    

    Article
      53

     

    The
      liquidation committee shall notify creditors within ten days following the
      date
      of its establishment, and shall place an announcement a minimum of three times
      in one newspaper within sixty days.

    

    Article
      54

     

    The
      creditors shall declare their claims to the liquidation committee within thirty
      days from the date of the receipt of notice or ninety days from the date of
      first announcement if the notice was not received. When declaring their claims,
      creditors shall present relevant information and provide supporting documents.
      The liquidation committee shall register the claims.

    

    Article
      55

     

    After
      the
      liquidation committee has verified the company’s assets, prepared the balance
      sheet and property list, it shall establish plans of liquidation and submit
      such
      plans to the board meeting and relevant administrative department for
      approval.

    

    Article
      56

     

    The
      assets of the company shall be distributed in the following
      sequence:

    
      	 	
              1)

            	
              pay
                the expenses of liquidation;

            

    

    
      	 	
              2)

            	
              pay
                the salaries and insurance for
                employees;

            

    

    
      	 	
              3)

            	
              pay
                past due taxes;

            

    

    
      	 	
              4)

            	
              pay
                off the debts of the company; and

            

    

    
      	 	
              5)

            	
              be
                allocated among the shareholders in proportion to the number of shares
                held.

            

    

    The
      assets shall not be allocated to any shareholder before being distributed in
      accordance with the provisions of item (1) and (4) of the preceding Article
      56.

    
      
        
        

      

      
        -
          17
          -

        
          

        

      

      
        
        

      

    

    

    Article
      57

     

    If,
      after
      having determined and listed the company’s assets and prepared the balance
      sheet, the liquidation committee finds that those assets are insufficient to
      pay
      off the debts, then the committee shall apply to the people’s court for the
      company to be declared bankrupt. Following this declaration, the liquidation
      committee shall hand the affairs of liquidation over to the people’s
      court.

    

    Article
      58

     

    After
      the
      completion of all liquidation procedures, the liquidation committee shall
      prepare its report, expense statement and financial records, and submit those
      documents to the shareholders’ general meeting and to the relevant
      administrative office for approval.

    

    Article
      59

     

    The
      liquidation committee shall de-register the company with the Company
      Registration Authority and shall publicly announce the termination of the
      company within thirty days from the date that the liquidation report is approved
      by the shareholders’ general meeting and relevant administrative
      office.

    

    Article
      60

     

    Members
      of the liquidation committee shall dutifully perform their obligations in
      accordance with the law. Members of the liquidation committee shall assume
      the
      obligations of compensating losses to the company or creditors due to his/her
      deliberately falsifying information or committing serious
      negligence.

    

    Chapter
      9
      Period of Operations

     

    Article
      61

     

    The
      period of operation of the company is 20 years, from June 1, 2006 to May 31,
      2026.

     

    The
      period of operation renews automatically for terms of 10 years unless all
      parties are notified in writing by registered mail and each party agrees in
      writing to cease operations. 

    
      
        
        

      

      
        -
          18
          -

        
          

        

      

      
        
        

      

    

    

    Article
      62

     

    If
      any of
      the following circumstances occur and continue, then any investing party may
      request in writing to the other parties to make pertinent changes: 

    
      	 	
              1)

            	
              where
                a party seriously breaches the contract, but does not or is unable
                to
                resolve the breach satisfactorily within thirty days after receiving
                detailed instructions from the other party;
                and

            

    

    
      	 	
              2)

            	
              where
                a party experiences bankruptcy, cessation of operations or
                dissolution.

            

    

    

    Article
      63

     

    If
      any of
      the following circumstances occur and continue, a party may demand other parties
      in writing to cancel the contract:

    
      	 	
              1)

            	
              where
                the company suffers serious losses which make it unable to continue
                its
                operations;

            

    

    
      	 	
              2)

            	
              where
                a party is unable to remain in operation due to an unforeseeable
                or uncontrollable course of events whose
                effects remain for a period of one hundred and eighty days and the
                company
                is unable to recover and resume its operations;

            

    

    
      	 	
              3)

            	
              where
                all investing parties form a consensus to terminate
                operations.

            

    

    

    Article
      64

     

    If
      the
      circumstance of item (1) of Article 62 occurs, the breaching party shall be
      liable for the compensation of losses hereof to the non-breaching party and
      to
      the company.

     

    Chapter
      10 Supplementary Provisions

     

    Article
      65

     

    The
      company may modify the Articles of Incorporation in situations involving changes
      to registration. The company may amend these articles under the following
      circumstances: The articles modified shall not violate the laws or regulations
      and shall be sent to the original registration office for the record after
      the
      shareholders’ unanimous approval; where amending any article involves changes to
      registration, the company will submit the changes to its registration office
      for
      the record. 

    
      
        
        

      

      
        -
          19
          -

        
          

        

      

      
        
        

      

    

    

    Article
      66

     

    The
      interpretation of these articles shall be the responsibility of the Board of
      Directors.

    

    Article
      67

     

    These
      articles shall take effect after being approved at the shareholders’
meeting.

     

    Signed
      by: Changjiang Computer (Group) Corporation (Seal)

     

    Representative,
      (the person who has legal authority to represent the company) or
      authorized proxy:

     

    Date:

    

    Signed
      by: Magstone Innovation Inc. (Seal)

     

    Representative,
      (the person who has legal authority to represent the company.) or
      authorized proxy:

     

    Date:

    

    Signed
      by: Sequiam Biometrics, Inc. (Seal)

     

    Representative,
      (the person who has legal authority to represent the company.) or
      authorized proxy:

     

    Date:

     

    -
      20
      -

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