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EXHIBIT  10.1
b)  10.1 JOINT VENTURE BETWEEN GUANGDONG EV CO. LTD. AND AMERICAN ELECTRIC
AUTOMOBILE COMPANY (ASIA). INC.

ELECTRIC VEHICLE JOINT VENTURE COOPERATION LETTER OF INTENT

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

GUANGDONG EV CO. LTD.

of China (hereinafter referred to as GDEV)
and

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

After the completion of the Contract of Electric Vehicle Cooperation, the two
parties, at an appropriate time, shall sign the joint venture contract.

1.     Signing of Joint Venture Agreement: If a decision is made to proceed
with the forming a joint venture company, a joint venture agreement shall be
signed by GDEV and AEAC within 90 days of completion of the testing and
evaluation.

2.     Equity In Joint Venture: A joint venture company shall be formed
between the two parties. GDEV shall hold 70% to 30% equity and AEAC shall hold
30% to 70% equity in the joint venture company. Contributions for equity shall
consist of three types: cash, electric vehicle technology and expenses and
materials provided in Section 1.

The joint venture company shall have a total registered capital of not less
than RMB 2 million.

Upon completion of Section 1, the parties shall jointly agree upon a valuation
of AEAC's technology in terms of the percentage equity in the joint venture
company that the technology will be credited for. This valuation shall be
between 15% to 20%.

All costs and expenses incurred by each party in Section 1 shall be considered
as part of each part~s investment in the joint venture company.

3.     Division of profits: Profits of the joint venture company shall be
distributed to the parties according to each party's respective share holdings
in the joint venture company.

4.     Board of Directors: The Board of Directors shall consist of five
directors. Three shall be appointed by GDEV and two appointed by AEAC

5.     New shares: The joint venture company shall not issue any new shares
without the unanimous consent of the Board of Directors.

6.     Manaoement & Operations of Joint Venture Company: Management and
operation of the joint venture company shall be decided by GDEV and AEAC
according to the practical situation of the company.

7.     Sales Rights: For products manufactured by the joint venture company,
exclusive sales and distribution rights shall be given to AEAC for North,
Central and South America, Europe. The joint venture company shall sell its
products to AEAC at cost plus a 6.5% profit margin.

8.     Purchasing of Parts & Components: Parts and components purchased in
North America shall be purchased through AEAC. parts and components purchased
by the joint venture company from GDEV and AEAC shall be purchased at cost
plus a 3% service charge. The purchasing cost of parts and components supplied
by the two parties shall not be higher than international market purchasing
costs.

9.     Ownership of Intellectual Property: Any inventions, patents and
trademarks resulting from the joint venture shall be the property of the joint
venture company.

10.     Term of Joint Venture:     The term of the joint venture shall be ten
years. At the end of the term, the parties shall mutually discuss further
cooperation.

11.     Technology Transfer: The initial small batch of electric vehicles
produced by the joint venture company shall be used to transfer technology
from AEAC to the joint venture company. The joint venture company may also
send personnel to the USA for exchange of technical experience with AEAC.

12.     Size of Initial Batch: Initial market feedback shall be collected
 within Guangdong, Hong Kong, Macau and the USA, using the prototypes for
demonstration.

The number of vehicles to be produced in the first batch shall be between
three and ten of each type. The exact number shall be mutually agreed upon by
the parties and may vary depending on market feedback.

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

For and on behalf:
Guangdong EV Co. Ltd.

LIU ZHIGANG
------------
Mr. Liu Zhigang
General Manager
Date  Feb. 25, 1997
For and on behalf of:
American Electric Automobile Company (Asia) Inc.

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

Date Feb. 25, 1997
ChairmanEH EXHIBIT  10.2
b)  10.2  TECHICNICAL AGREEMENT FOR THE ELECTRIC STATION WAGON EV6 460 BETWEEN
GUANGDONG EV CO.LTD. AND AMERICAN ELECTRIC AUTOMOBILE COMPANY (ASIA), INC.

Electric Station Wagon EV6 460
Technical Agreement

THE Parties:

GUANGDONG EV CO.LTD.

of China (hereinafter referred to as GDEV)

and

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

The two parties will cooperate in trial design of prototypes in this agreement
as follows:

1 .Electric station wagon EV6460 (abbreviated EV)will be converted from
Chinese Y116460N (abbreviated YH), made by Guangdong Yueliai
Automobile Refitting Factory, used its main components (body and chassis)
and maintained the overall dimension, wheel base and track with no-change.

2.EV will have 4 seats (65kg for each passenger and 80kg payload in rear
compartment, while Y1I has 5 seats and 200kg payload.It is expected that the
EV gross-weight and the weight distribution between front and rear axles will
be near original YH, it is needed to conduct relative analyse sand take the
countermeasures to ensure the safety and reliability, when gross-weight
increases or weight distribution is changed.

3.EV will achieve the following perfonnance
     Max speednot less than 100km/h
     Acceleration capability 0 to 50 km/h less than 12 seconds
     Gradient capability not less than 20%
     Range per charge not less than 120 km at constant speed 48km/h
     (30mph), full load, without air conditioning.

4.The EV must satisfy the relative requirerneits of China National Standard
GB 7258-94 Safety Operation Requirements of Motor Vehicles, the main relative
articles are as following.

a)Power density of EV must be more than 4.7 8kw/T (T is the unit ton of gross
weight)
b)The parking slope is must be more or &jual 20% while the hand force is less
than 400N
c)The braking distance of EV with full load must be less than 7m, while
braking initial running speed is 30km/h on jhe level, dry, concrete or asphalt
road. and the foot force is less than 700N
d)Light, signal requirements ( YH has satisfied).
e)Safety belts for driver and passenger in the front seat ( YH has satisfied).
D The spark in commentator of the tractive electric motor must be les~ than 1
1/2 grade, isolation must be more than 3M Q in the moisture 85%, and 1 M Q in
moisture over 85%.
g)Ev must bring a fire annihilator.
h)Static rollover slope angle must be over 35%.

5 .Other Safety Requirements.

a)All batteries must be firmly installed outside the passenger compartment and
rear compartment, and do not intrude into above compartments during or
following the front crash at 48km/h and roll over, additionally, the explosive
gas and the leak electrolyte from the batteries should be leaded to outside
space.
b)The main power circuit should be two
wire system, and have good isolation
with the chassis and body.
c)EV does not contain exposed conductors, terminates, connectors, or devices
of any type that create the potential for personal to be exposed to the
voltage over 12V. It is expected that different electric circuits have the
different colors wires which are the same colors in the wiring diagrams.
All the connective wires should be finnly fixed to avoid swing and movement.
d)AI1 the electric devices should adapt ijself to' the hot moist, coastal and
rainy weather in South China.
e)AIl the electric devices do not emit hariiifiilly electromagnet radiation
and

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protect itself against outside electromagnet interference.
f)EV has good isolation between charging circuit and the body/chassis during
charging, but the body/chassis should be grounded at the same time.
g)The EV is equipped with automatic disconnect and a manual service disconnect
for the main propulsion batteries circuit during crash and roll over short
circuit and emergency case.
h)EV should have the following interlock for safety
*The controller does not energize in the gear box selector position other than
the neutral and the acceleration pedal in the initial zero position
*Tlie EV can't take off during charging

6.EV batteries are lead acid
The specification of Chinese-made tractive lead acid batteries is shown in the
Appendix 2. It is expected that the EV has a battery management system to
monitor and check working situation of individual battery module to avoid
overcharge , over discharge, premature fault ,short circuit , etc. . The
battery box and rack should consider the requirements of water, dust, anti-
rush, acid corrosion and fire resistant, and ventilation during charging, as
well as the convenience for maintenance. In case of non-sealed lead acid
battery, the automatic or the integral water compensation system ~vill be
supplied as the option parts.

7.EV should have on-board inputting AC22OV, 50HZ, single phase, The tolerance
of voltage in local power source is about 1 80----240V. The charger has a
hannonic distortion less than 5%, the true power factor not less than 95% .
The charger is capable to fully charge the main batteiy pack in 8 hours and
automatically determine when end of charge is met, then transiting into a mode
charging with small current for balancing different modules and cells and
switching off The charger should have necessary protection and safety
function, like over-current, over-(or extra low) voltage, over-heat circuit
short, reversal polar, etc.

8.EV must have automatic DC-to-DC charger for charging 1 2V auxiliary battery
from the main battery pack

9.EV must have a state of charge indicator for main battery pack and
appropriate instrLLmeflts to show the voltage and the current of battery pack.
As soon as the degree of discharge reaches a preset level (like 70%) a warn

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signal ( or beep ) will be given, as soon as the DOD reaches a preset limit
level (like 80%) a strong signal (or beep) will be sent out or shut down the
power supply.

lO.Based on the safety and reliable braking porforrnan , regenerating the
braking energy should be considered as more as possible and replacing the
original vacuum, braking booster by the electric vacuum system should be
considered also.

11.EV should have air conditioning.

12.EV must satisfy relative US standards (like: FMVSS, UL, SAE, etc.) while EV
is predicted to be used in US.

For and on behalf:
Guangdong EV Co.Ltd.

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

Date  Feb. 25, 1997

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

EDWARD F. MYERS
---------------
Edward F. Myers

Date  Feb. 25, 1997

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