Document:

Exhibit 10.6

                              Employment Agreement

AGREEMENT dated 26th day of October 1999,  between  CathayOnline  Inc. of Nevada
("CathayOnline"  or  "Employer"),  and Mr. Brian W. Ransom,  a Canadian  citizen
("Mr. RANSOM" or the "Executive").

WHEREAS:

I.       Employer  desires to retain  the  services  of Mr.  RANSOM as the Chief
         Executive  Officer and President of the company on terms and conditions
         provided in this Agreement;

II.      Mr. RANSOM desires to render such services to the Employer on the terms
         and conditions provided in this Agreement;

III. TorchMail.com, Inc. is a wholly owned subsidiary of CathayOnline Inc..

THEREFORE it is agreed as follows:

1.       Employment and Duties. During the Term (as defined hereinafter) of this
         Agreement,  Mr. RANSOM agrees to serve as Chief  Executive  Officer and
         President of  CathayOnline,  performing such duties and services during
         the Term and such other duties and servies as the Board of Directors of
         CathayOnline  (the "Board") may reasonably  request.  Mr. RANSOM hereby
         accepts  such  engagement,  all  upon  and  subject  to the  terms  and
         conditions hereinafter set forth.

         During the Term,  Mr. RANSOM shall devote  reasonable  attention,  time
         during normal business hours (exclusive of normal  holidays,  vacations
         and periods of  sickness or  disability)  and energy to  providing  the
         services  requested by CathayOnline  pursuant to this Section 1 hereof.
         During the Term it shall not be a violation of this  Agreement  for Mr.
         RANSOM to service on corporate,  civic or charitable boards, committees
         and manage  personal  investments,  so long as such  activities  do not
         significantly   interfere  with  the   performance   of  Mr.   RANSOM's
         responsibilities as an employee of CathayOnline in accordance with this
         Agreement.

2.       Term. Subject to earlier termination as provided hereinafter,  and also
         subject  to  3.b)  below,  the  term  of  Mr.  RANSOM's  employmentthis
         Agreement shall begin on the 26th day of October,  1999 and shall be on
         a 2 (two) year renewable basis as agreed by both parties.

3.       Compensation.  In exchange for the services that Mr. RANSOM provides to
         CathayOnline and its  subsidiaries,  Mr. RANSOM shall be remunerated in
         the following manner:

         a)       Annual  compensation  equal to US$60,000 paid monthly in equal
                  installments, to be retroactive from the 1st of July;

         b)       To, upon the resale of 35,000  Seats,  a Seat being defined as
                  an individual web based  professional  messaging email account
                  as provided by USA.NET,  and up to the resale of 99,999  Seats
                  by  TorchMail.com,   Inc.   ("TorchMail"),   CathayOnline  and
                  TorchMail  shall pay to Mr. RANSOM  US$0.01 per Seat per month
                  for each and every Seat.  Upon the resale of 100,000 Seats and
                  up to the resale of 199,999 Seats by  TorchMail,  CathayOnline
                  and  TorchMail  shall pay to Mr.  RANSOM  US$0.03 per Seat per
                  month  for each and every  Seat.  Upon the  resale of  200,000
                  Seats and up to the  resale  of  299,999  Seats by  TorchMail,
                  CathayOnline  and TorchMail  shall pay to Mr. RANSOM $0.05 per
                  Seat per  month for each and every  Seat.  Upon the  resale of
                  300,000  Seats  and up to  the  resale  of  399,999  Seats  by
                  TorchMail,  CathayOnline and TorchMail shall pay to Mr. RANSOM
                  $0.07 per Seat per month  for each and  every  Seat.  Upon the
                  resale of 400,000 or more Seats by TorchMail, CathayOnline and
                  TorchMail shall pay to Mr. RANSOM $0.10 per Seat per month for
                  each  and  every  Seat.  Such  payments  by  CathayOnline  and
                  TorchMail  shall be made to Mr.  RANSOM no later than the 10th
                  day after the month end. Such  benefits  will continue  beyond
                  the Term of Mr.  RANSOM's  employment  with  CathayOnline  and
                  shall  continue to be paid to Mr.  RANSOM or per the direction
                  of Mr. RANSOM.

         c)       Issue issue to the  Employee a warrant  (s), in such names and
                  denominations as Employees  reasonably shall request, the form
                  of which is  attached  hereto  as  Exhibit A  ("Warrant"),  to
                  purchase up to an aggregate of 15,000,000 shares (the "Warrant
                  Shares") of the Company's  common  stock,  par value $.001 per
                  share ("Common Stock").

i)       Provisions  Governing the Warrant and the Warrant Shares. The following
         provisions shall govern the Warrant and the Warrant Shares:

         (a)      Neither  the   Warrant  nor  the  Warrant   Shares  have  been
                  registered under the Act, or registered or qualified under any
                  state securities laws and that such Warrant and Warrant Shares
                  are and will be restricted  securities as such term is defined
                  under the Act and that the Warrant and the Warrant  Shares are
                  being and will have been issued in a  transaction  exempt from
                  the registration  requirements of the Act and the registration
                  or  qualification  requirements of applicable state securities
                  laws.  The Warrant  and the Warrant  Shares are being and will
                  have been  acquired by the  Employee for  investment  purposes
                  only and not with a view to distribution or resale and may not
                  be made subject to a security interest, pledged, hypothecated,
                  sold or otherwise  transferred unless such Warrant and Warrant
                  Shares are subsequently registered under the Act and qualified
                  or registered  under  applicable  state  securities laws or an
                  exemption from  registration  and  qualification is available,
                  and that, except as otherwise provided in this Agreement,  the
                  Company is under no  obligation  to  register  or qualify  the
                  Shares.  The Company may require an opinion of the  Employee's
                  counsel prior to authorizing the  registration of any transfer
                  of the  Warrant  or  the  Warrant  Shares  in  reliance  on an
                  exemption from  registration  or  qualification  to the effect
                  that  such  transfer  is  exempt  from  such  registration  or
                  qualification.  Certificates  evidencing  the  Warrant and the
                  Warrant Shares, if and when issued (and if such Warrant Shares
                  have not been registered at the time of issuance),  shall bear
                  a  Securities  and  Exchange  Commission  ("SEC")  restrictive
                  legend and any such other  legends as required  by  applicable
                  federal  and  state  laws  and  the  transfer  agent  for  the
                  Company's class of Common Stock shall be instructed to place a
                  stop  transfer  order  on  the  stock  books  of  the  Company
                  restricting the transfer of the Warrant Shares.

         (b)      The  Company  has agreed to  register  the  Warrant  Shares as
                  provided in the Warrant  and the  Employee  agrees to abide by
                  all terms of the  Warrant  with  respect  to the resale of the
                  Warrant Shares after registration thereof under the Act.

         (c)      The  Employee  and the  Company  agree to  execute  such other
                  documents   and   instruments   as  counsel  for  the  Company
                  reasonably  deems  necessary to effect the  compliance  of the
                  issuance of the Shares with federal and state laws.

         (d)      The Company  covenants and agrees that the Warrant shall, upon
                  issuance,  in accordance with the terms hereof, be legally and
                  validly   issued   and    outstanding   and   fully-paid   and
                  non-assessable securities of the Company.

d)       To receive  other such  bonuses  and  compensation  as the Board may so
         dictate.

4.       Disclosure of  information.  Mr. RANSOM  acknowledges  that the list of
         CathayOnline's  customers,  as CathayOnline  may determine from time to
         time,  is a  valuable,  special,  and  unique  asset of  CathayOnline's
         business.  Mr.  RANSOM  shall  not,  during  and  after the term of his
         employment, disclose all or any part of CathayOnline's customer list to
         any person, firm, corporation,  association,  or other entity unless so
         required by law.

5.       Expenses.  Mr.  RANSOM  may  incur  reasonable  budgeted  expenses  for
         promoting    CathayOnline's    business,    including    expenses   for
         entertainment, travel, telephone, and similar items, including business
         class air travel and first  class  hotel  accommodations.  CathayOnline
         will  reimburse  Mr.  RANSOM for all such  expenses  upon Mr. RANSOM 's
         periodic presentation of an itemized account of such expenditures.  Mr.
         RANSOM shall  participate  in the  budgeting  process and  CathayOnline
         shall  have  final  discretion  as to the  reasonableness  of  expenses
         incurred.

6.       Termination without cause.  CathayOnline may, without cause,  terminate
         this  Agreement  at any time by giving 60 days'  written  notice to Mr.
         RANSOM . In that event, Mr. RANSOM, if requested by CathayOnline, shall
         continue  to  render  his  services,  and  shall  be paid  his  regular
         compensation  up to the date of  termination.  Mr. RANSOM may,  without
         cause,  terminate  this  Agreement by giving 60 days' written notice to
         CathayOnline.  In such event,  Mr. RANSOM shall  continue to render his
         services and shall be paid his regular  compensation  up to the date of
         termination. This clause 7 is subject to clause 3 (b).

7.       Death  during  employment.  If Mr.  RANSOM  dies  during  the  term  of
         employment,  CathayOnline  shall  pay  to  Mr.  RANSOM  's  estate  the
         compensation  that would  otherwise be payable to Mr.  RANSOM up to the
         end of the month in which his death occurs. This clause 7 is subject to
         clause 3 (b).

8.       Disability.  In the event of disability of the  Executive,  the Company
         will  continue to pay the  Executive,  the Company will continue to pay
         the Executive the period of his disability;  provided, however, that if
         the disability  continues for a period of three (3) months, the Company
         may terminate this Agreement.  Following such termination,  the company
         will  continue  to pay the Base  Salary for a period of six (6) months,
         but shall not be  obligated to pay any other  compensation,  except for
         earned but unpaid Annual Incentive  Compensation awards and any accrued
         amounts under all compensation of employee benefit plans which shall be
         payable  on a  pro-rated  basis  for the year in which  the  disability
         occurs,  through  the  date  of  termination  in  accordance  with  the
         applicable  provisions of any then existing plan,  practice,  policy or
         program established by the Company for employees. "Disability" shall be
         defined  as  any  illness  of  injury  which  prevents  Executive  from
         performing the essential  functions of his employment  with  reasonable
         accommodation.  The Company shall be responsible  for  determining  the
         essential functions of Executive's employment consistent with the terms
         of this Agreement.  In the event the Company  determines that Executive
         cannot safely  perform one or more  essential  functions of employment,
         Executive may request an  accommodation  that would allow  Executive to
         safely  perform  the  essential  functions  of  Executive's  employment
         despite the disability.  The Company shall determine whether or not the
         accommodation  requested  is  reasonable  and  whether  an  alternative
         reasonable  accommodation  could be made that would allow  Executive to
         safely perform the essential functions of employment.  In the event the
         Company  cannot  reasonably   accommodate   Executive's  disability  so
         Executive  can safely  perform the essential  functions of  employment,
         Executive's   employment  and  Corporation's   obligations  under  this
         Agreement will terminate  pursuant to the terms of this provision.  The
         meaning   of  the   terms   "essential   functions:   and   "reasonable
         accommodation"  shall  be  defined  in 29 CFR  Part  1630  and  related
         regulations,  if any. During the period the Executive is physically and
         mentally able to do son, the  Executive  will furnish  information  and
         assistance  to the  Company  and from time to time  will  make  himself
         available to the company to undertake  assignments  consistent with his
         prior  position  with the company and his physical  and mental  health.
         This clause 8 is subject to clause 3 (b).

9.       Code  Section  280G.   Anything  in  this  Agreement  to  the  contrary
         notwithstanding,  in the event it shall be determined  that any payment
         or  distribution  by the company to or for the benefit of the Executive
         (whether paid or payable or  distributed or  distributable  pursuant to
         the terms of this Agreement of otherwise, but determined without regard
         to any additional  payments required under this Section 9 (a "Payment")
         would be subject to the  exercise  tax  imposed by Section  4999 of the
         Code or any interest or penalties  are incurred by the  Executive  with
         respect to such  excise tax (such  excise tax,  together  with any such
         interest and penalties imposed with respect to such taxes),  including,
         without  limitation,  any income taxes (and any interest and  penalties
         imposed with respect  thereto) and Excise Tax imposed upon the Gross-Up
         Payment,  the Executive retains an amount of the Gross-Up Payment,  the
         Executive retains an amount of the Gross-Up Payment equal to the Excise
         Tax imposed upon the Payments.

         (ii)     Subject   to  the   provisions   of   Section  9  (iii),   all
                  determinations  required  to be made  under  this  Section  9,
                  including  whether and when the  Gross-Up  Payment is required
                  and the amount of such  Gross-Up  Payment is required  and the
                  amount of such  Gross-Up  payment  and the  assumptions  to be
                  utilized in arriving at such determination,  shall be made, at
                  the Executive's sole discretion,  by the Company's independent
                  auditor's of such other  certified  public  accounting firm as
                  may be designated by the Executive  (the  "Accounting  Firm"),
                  which shall provide detailed  supporting  calculations both to
                  the Company and the  Executive  within  fifteen (15)  business
                  days of the  receipt of notice from the  Executive  that there
                  has been a Payment,  or such  earlier  time as is requested by
                  the Company.  In the event that the Accounting Firm is serving
                  as accountant or auditor for the  individual,  entity or group
                  effecting the Change in Control,  the Executive  shall appoint
                  another  nationally  recognized  accounting  firm to make  the
                  determinations required hereunder (which accounting firm shall
                  then be referred to as the  Accounting  Firm  hereunder).  All
                  fees and expenses of the Accounting Firm shall be borne solely
                  by the company.  Any Gross-Up Payment,  as determined pursuant
                  to  this  Section  9,  shall  be paid  by the  company  to the
                  Executive within five(5) days of the receipt of the Accounting
                  Firm's determination. Any determination by the Accounting Firm
                  shall be binding  upon the  Company  and the  Executive.  As a
                  result of the  uncertainty in the  application of Section 4999
                  of the Code at the time of the  initial  determination  by the
                  Accounting  Firm  hereunder,  it  is  possible  that  Gross-Up
                  Payments  which will not have been made by the Company  should
                  have  been   made   ("Underpayment"),   consistent   with  the
                  calculations required to be made hereunder.  In the event that
                  the Company  exhausts  its  remedies  pursuant to this Section
                  6(e)  and  the  Executive  thereafter  is  required  to make a
                  payment of any Excise Tax, the Accounting Firm shall determine
                  the amount of the Underpayment  that has occurred and any such
                  Underpayment  shall be promptly  paid by the Company to or for
                  the benefit of the Executive.

         (iii)    The Executive shall notify the Company in writing of any claim
                  by the Internal  Revenue  Service that, if  successful,  would
                  require the payment by the  Company of the  Gross-Up  Payment.
                  Such  notification  shall be given as soon as practicable  but
                  not later than ten (10)  business  days after the Executive is
                  informed  in  writing  of such  claim  and shall  apprise  the
                  Company of the nature of such claim and the date on which such
                  claim is requested  to be paid.  the  Executive  shall not pay
                  such  claim  prior  to the  expiration  of the  30-day  period
                  following the date on which the Executive gives such notice to
                  the Company (or such  shorter  period  ending on the date that
                  any  payment of taxes with  respect to such claim is due).  If
                  the Company  notifies the  Executive  in writing  prior to the
                  expiration  of such  period  that it desires  to contest  such
                  claim, the Executive shall:

                  (A)      give the Company any information reasonably requested
                           by the Company relating to such claim,

<PAGE>

                  (B)      take such action in connection  with  contesting such
                           claim as the  Company  shall  reasonably  request  in
                           writing  from  time  to  time,   including,   without
                           limitation,   accepting  legal   representation  with
                           respect  to  such  claim  by an  attorney  reasonably
                           selected by the Company,

                  (C)      cooperate  with the  Company  in good  faith in order
                           effectively to contest such claim and

                  (D)      permit the Company to participate in any  proceedings
                           relating to such claim;

       provided, however, that the Company shall bear and pay directly all costs
       and expenses  (including  additional  interest and penalties) incurred in
       connection  with such contest and shall  indemnify and hold the Executive
       harmless,  on an  after-tax  basis,  for any  Excise  Tax or  income  tax
       (including  interest and  penalties  with respect  thereto)  imposed as a
       result of such representation and payment of costs and expenses.  Without
       limitation  on the  foregoing  provisions  of this Section 9, the Company
       shall control all proceedings  taken in connection with such contest and,
       at its  sole  option,  may  pursue  or forge  any and all  administrative
       appeals,  proceedings,  hearing and conferences with the taxing authority
       in respect of such claim and may, at its sole option,  either  direct the
       Executive  to pay the tax  claimed  and sue for a refund or  contest  the
       claim in any permissible  manner,  and the Executive  agrees to prosecute
       such contest to a determination before any administrative  tribunal, in a
       court of initial  jurisdiction and in one or more appellate courts ad the
       Company shall determine;  provided,  however, that if the Company directs
       the  Executive to pay such claim and sue for a refund,  the Company shall
       advance the amount of such payment to the Executive,  on an interest-free
       basis  and  shall  indemnify  and  hold  the  Executive  harmless,  on an
       after-tax basis from any Excise Tax or income tax (including  interest of
       penalties with respect thereto) imposed with respect to such advance; and
       provided,  further,  that any  extension  of the  statute of  limitations
       relating to payment of taxes for the taxable year of the  Executive  with
       respect  to which such  contested  amount is claimed to be due is limited
       solely to such contested  amount.  Furthermore,  the Company's control of
       the contest  shall be limited to issues with  respect to which a Gross-Up
       Payment would be payable hereunder and the Executive shall be entitled to
       settle or  contest,  as the case may be,  any other  issue  raised by the
       Internal Revenue Service or any other taxing authority.

<PAGE>

                  (iv)     If,  after the receipt of the  Executive of an amount
                           advance  by the  Company  pursuant  to Section 9, the
                           Executive becomes entitled to receive any refund with
                           respect to such claim,  the Executive  shall (subject
                           to the company's  complying with the  requirements of
                           Section 9) promptly  pay to the Company the amount of
                           such  refund  (together  with  any  interest  paid or
                           credited thereon after taxes applicable thereto). If,
                           after  the  receipt  by the  Executive  of an  amount
                           advanced  by the  Company  pursuant  to  Section 9, a
                           determination is made that the Executive shall not be
                           entitled to any refund with respect to such claim and
                           the Company does not notify the  Executive in writing
                           of its intent to contest  such denial of refund prior
                           to the  expiration  of thirty  (30) days  after  such
                           determination,  then such  advance  shall be forgiven
                           and shall not be required to be repaid and the amount
                           of such advance shall offset,  to the extent thereof,
                           the amount of Gross-Up Payment required to be paid.

10.      Arbitration.  Any  controversy  or claim  arising out of or relating to
         this Agreement,  or the breach thereof, shall be settled by arbitration
         in accordance with the commercial  arbitration  rules and supplementary
         procedures  for  international  commercial  arbitration of the American
         Arbitration  Association,  and judgment upon the award  rendered by the
         arbitrator(s)  may be entered  in any court  having  jurisdiction.  The
         governing law shall be the laws of the United States,  state of Nevada,
         and said Agreement  shall be construed and governed in accord with such
         laws. The Arbitration  shall take place in the state of Nevada,  U.S.A.
         and the Arbitration shall be conducted in English.

11.      Notices.  Any  notice  required  or  desired  to be  given  under  this
         Agreement  shall be deemed  given if in writing  and sent by  certified
         mail,  return  receipt  requested,  to Mr.  RANSOM 's  residence  or to
         CathayOnline's principal office, as the case may be.

12.      Waiver of breach. CathayOnline's waiver of a breach of any provision of
         this  Agreement  by Mr.  RANSOM  shall not operate or be construed as a
         waiver of any subsequent breach by Mr. RANSOM. No waiver shall be valid
         unless in writing and signed by an authorized  officer of CathayOnline.
         Mr.  RANSOM's  waiver of a breach of any provision of this Agreement by
         CathayOnline  shall  not  operate  or be  construed  as a waiver of any
         subsequent  breach by CathayOnline.  No waiver shall be valid unless in
         writing and signed by Mr.
         RANSOM.

13.      Assignment.  CathayOnline's  rights and  obligations,  including  those
         obligations of  CathayOnline's  subsidiary  TorchMail.com,  Inc., under
         this  Agreement  shall  inure to the  benefit  of, and shall be binding
         upon,  CathayOnline's  successors and assigns.  Mr. RANSOM may, if such
         direction is made to CathayOnline in writing,  assign,  transfer and/or
         sell any  benefits  that he is  entitled  to  receive  to any entity or
         person that he may so choose at any time or from time to time.

14.      Entire agreement.  This Agreement contains the entire  understanding of
         the parties.  It may not be changed  orally but only by an agreement in
         writing  signed by the party  against whom  enforcement  of any waiver,
         change, modification, extension, or discharge is sought.

15.      Headings. Headings in this Agreement are for convenience only and shall
         not be used to interpret or construe its provisions.

16.      Counterparts.   This   Agreement   may  be  executed  in  two  or  more
         counterparts,  each of which  shall be  deemed an  original  but all of
         which together shall constitute one and the same instrument.

IN WITNESS  HEREOF the parties have executed this  Agreement  effective the date
first above written.

CathayOnline Inc.                                   Mr. Brian W. Ransom

--------------------------                          ---------------------------
Duly Authorized Representative

TorchMail.com, Inc.

---------------------------
Duly Authorized RepresentativeExhibit 10.7

                              MANAGEMENT AGREEMENT

This Agreement is dated this 29th day of June, 1999

BETWEEN

         CathayOnline Technologies (Hong Kong) Ltd., a company duly incorporated
         under the laws of the Hong Kong Special  Administrative  Region  ("Hong
         Kong"), the People's Republic of China ("PRC") (the "Company")

AND

         Owen Li LI, a  Canadian  citizen,  having an  address  at 10831  Anahim
         Drive, Richmond, B.C., V7A 3C6 Canada (the "General Manager")

WHEREAS:

<PAGE>

A.   The  Company  is  wholly  owned  beneficially  by  CathayOnline  Inc.  (the
     "Parent");

B.   The  Company  wholly  owns  Sichuan  CathayOnline   Technologies  Co.  Ltd.
     ("WOFE"), which is a wholly foreign-owned enterprise duly established under
     the laws of the PRC;

C.   The Parent is a limited liability company duly incorporated  under the laws
     of Nevada,  the United States of America and is currently a publicly traded
     company on NASDAQ OTC: BB (Stock Symbol: CAOL);

D.   The Company intends,  through the WOFE, to invest up to US$1,000,000 in the
     first phase of its projected business operations in internet-related sector
     in the PRC (the "PRC Project");

E.   For the first phase operation, the WOFE entered, in June, 1999 with Sichuan
     Guo Xun Xin Xi  Chan  Ye You  Xian  Gong  Si("Sichuan  Guo  Xun."),  into a
     management  and  consultancy  service  agreement   ("Management/Consultancy
     Agreement"),  pursuant to which the WOFE will provide  certain  management,
     consultancy  and  technical  assistance  services  to  Sichuan  Guo  Xun in
     relation to the Project; and

F.   The  Company  wishes to retain  the  services  of the  General  Manager  in
     relation  to the  carrying  out  the  business  and  affairs  of the  WOFE,
     implementing the Management/Consultancy  Agreement, the Project, as well as
     the PRC Project and the General  Manager wishes to provide such services to
     the Company.

IN  CONSIDERATION  OF mutual  promises and other  valuable  considerations,  the
receipt and sufficiency of which are hereby  acknowledged,  the Parties agree as
follows:

                           ARTICLE I - INTERPRETATION

1.1      In this Agreement, the following definitions apply:

(1)               "Working Day" in relation to  performance of any obligation by
                  a  party  means  a day  other  than a  Saturday,  Sunday  or a
                  statutory  holiday in the place where such obligations will be
                  performed;

(2) "Services" means the following managerial and other services:

(a)  Recruiting and training personnel for the WOFE in relation to the Project;

(b)                        Managing  the day to day  business and affairs of the
                           WOFE,  including  keep monthly report and accounts of
                           the WOFE;

(c)      Marketing the services of the Project to customers; and

(d)                        Any other reasonable service requested by the Company
                           from time to time in  relation to the Project and the
                           PRC Project in general.

(3)  "Term" means a period of three (3) years,  commencing from the date of this
     Agreement; and

(4)               Where   applicable,   the   definitions   contained   in   the
                  Management/Consultancy  Agreement  and the WOFE's  Articles of
                  Association  are  hereby   incorporated  by  reference  as  an
                  integral part of this  Agreement and shall have the same legal
                  effect as other parts of this Agreement.

1.2  Words  importing  the singular  only also include the plural and vice versa
     where the context so requires.

1.3  Headings  used herein are for ease of  reference  only and shall not affect
     the interpretation of this Agreement.

                       ARTICLE II - PROVISION OF SERVICES

2.1      Subject to the terms and  conditions  of this  Agreement,  the  Company
         hereby  retains the General  Manager for the  provision of the Services
         and the General  Manager  agrees to provide  such  Services  during the
         Term.

2.2      The Company reserves the rights to adjust the scope of the Services and
         to perform part or all of the Services by itself, when and if necessary
         and practical.

              ARTICLE III - THE PARTIES' OBLIGATIONS AND COVENANTS

3.1 The Company  agrees with the General  Manager  throughout  the Term that the
Company will:

(1)  Support the General  Manager in its efforts to provide the  Services to the
     Company;

(2)               Supply the General Manager with  information in its possession
                  as permitted by law and/or regulatory  authorities to which it
                  may be  subject  which  may  assist  the  General  Manager  in
                  providing the Services; and

(3)               Indemnify  the  General  Manager  from and against any and all
                  loss,  damage or liability  whether criminal or civil suffered
                  and  legal  fees and costs  incurred  by the  General  Manager
                  resulting  from the breach of this  Agreement  by the  Company
                  including any act,  neglect or default of the Company provided
                  that such liability has not been incurred  through any default
                  by the General  Manager in relation to his  obligations  under
                  this Agreement.

3.2 The General  Manager  agrees with the Company  throughout  the Term that the
General Manager will:

(1)      At all time work diligently to provide the Services to the Company;

(2)               Without the prior written consent of the Company,  not receive
                  any undisclosed,  hidden or illegal profit or benefit, whether
                  in cash, in kind or otherwise,  from any third parties  during
                  the provision of the Services;

(3)      Pay the Company and/or the WOFE promptly all sums due to the Company;

(4)               In all  matters act  loyally  and  faithfully,  as the Company
                  Vice-President   (China  Project  Development)  and  in  other
                  capacity, for the best interest of the Company;

(5) Obey the Company's  reasonable  orders and  instructions  in relation to the
provision of the Services;

(6)               In the  provision  of its  Services  strictly  comply with all
                  applicable laws,  by-laws and requirements of any governmental
                  or regulatory  authorities of every  jurisdiction in which the
                  General Manager, the Company or the Parent operates;

(7)               Not at any time during the Term and for three years thereafter
                  divulge or allow to be divulged to any person any confidential
                  information   concerning  the  Company's   and/or  the  WOFE's
                  business (including  confidential  information protected by or
                  subject to other agreements to which the Parent,  the Company,
                  the WOFE or any  affiliates  of the  Parent is a party)  other
                  than to persons who have signed a confidentiality  undertaking
                  in the form  approved  by the  Company or to  governmental  or
                  judicial authorities under compulsion of law; and

(8)               Indemnify  the  Company  from and  against  any and all  loss,
                  damage or  liability  whether  criminal or civil  suffered and
                  legal fees and costs  incurred by the Company  resulting  from
                  the breach of this Agreement by the General Manager  including
                  any act,  neglect or default of the General  Manager  provided
                  that such liability has not been incurred  through any default
                  by the  Company  in  relation  to its  obligations  under this
                  Agreement.

                            ARTICLE IV - PERFORMANCE

4.1      In providing  the Services,  the General  Manager will try all means to
         achieve  the  following  to the best of his ability for the WOFE during
         the Term:

(1)  To procure  2,500  internet  service  provider  ("ISP")  customers  for the
     Project within 12 months of this Agreement;

(2)  To procure  7,500 ISP  customers  for the Project  within 24 months of this
     Agreement; and

(3)  To procure  16,000 ISP customers  for the Project  within 36 months of this
     Agreement.

                            ARTICLE V - COMPENSATION

5.1      For the General  Manager's  Services,  the Company shall compensate the
         General Manager in accordance with the following terms and conditions:

(1)  pay US$10,000 per month to the General  Manager at the end of each calendar
     month as follows:

(a)      US$6,500 in cash to be paid by the WOFE; and

(b)  US$3,500  equivalent in the form of common shares issued by the Parent (the
     Shares  will be priced at 10%  discount  of the  average bid for the last 5
     trading days of the month);

(2)               to the best of its ability cause the Parent to issue notice to
                  issue  in  trust  for the  General  Manager  its  shares  (the
                  "Shares") in the following numbers and schedules:

(a)                        common shares with a value equal to US$60,000 divided
                           by lower of (i) US$0.50 and (ii) the average  closing
                           price of the  shares of the Parent for three (3) days
                           preceding  the  date  of  this  Agreement  within  15
                           Working Days of the date of this Agreement;

(b)                        common shares with a value equal to US$75,000 divided
                           by lower of (i) US$0.50 and (ii) the average  closing
                           price of the  shares of the Parent for three (3) days
                           preceding  the  date  of  this  Agreement  within  10
                           Working Days after the General  Manager has notified,
                           in writing to the Parent,  that he has brought  2,500
                           ISP subscribers into the Project;

(c)                        common shares with a value equal to US$75,000 divided
                           by lower of (i) US$0.50 and (ii) the average  closing
                           price of the  shares of the Parent for three (3) days
                           preceding  the  date  of  this  Agreement  within  10
                           Working Days after the General  Manager has notified,
                           in writing to the Parent,  that he has brought  7,500
                           ISP subscribers into the Project; and

(d)                        common shares with a value equal to US$90,000 divided
                           by lower of (i) US$0.50 and (ii) the average  closing
                           price of the  shares of the Parent for three (3) days
                           preceding  the  date  of  this  Agreement  within  10
                           Working Days after the General  Manager has notified,
                           in writing to the Parent,  that he has brought 16,000
                           ISP subscribers to the Project.

5.2      The General Manager will distribute or transfer  certain numbers of the
         Shares to other employees of the WOFE as part of employee incentive. In
         such case,  the Company  shall  cause the Parent to complete  necessary
         procedures  to effect such  distribution  or transfer as  permitted  by
         applicable laws and/or regulations.

                          ARTICLE VI - NON-COMPETITION

6.1      The General Manager hereby covenants that,  without written  permission
         of the Parent,  during the Term and three years  thereafter he will not
         carry on any business or activities  which are in competition with that
         of the  Company,  the WOFE,  and/or in  relation  to the  Project  (the
         "Competing  Business") within the territory of PRC provided that during
         the  three  years  after  the Term  the  Parent  will not  unreasonably
         withhold any  permission  to allow the General  Manager to carry on the
         Competing  Business in such areas within the PRC where the Parent,  the
         Company, the WOFE and/or other affiliates of the Parent do not have any
         business interests.  This non-competition clause shall not be deemed to
         include any companies,  ventures, joint ventures, projects or the like,
         with  which the  Parent is a  shareholder  or is  working  with and the
         General Manager's valued input is required.

6.2      The General Manager hereby expressly acknowledges that the restrictions
         contained  in  Article  6.1  above  are  fair  and  reasonable  in  all
         circumstances and may be enforceable by judicial remedies  available to
         the Company  including  injunctions.  The Parties further agree that if
         the  restrictions  in Article 6.1 above shall be adjudicated to be void
         and  ineffective  for whatever  reason but would be  adjudicated  to be
         valid and  effective  should part of the wording  thereof be deleted or
         the restrictive  period or the restrictive  area reduced in scope,  the
         said  restrictions  shall  apply  with  such  modifications  as  may be
         necessary to make the restrictions valid and effective.

                             ARTICLE VII TERMINATION

7.1      The Company may serve a termination  notice on the General  Manager not
         less  than  five  (5)  Working  Days  prior  to the  intended  date  of
         termination to terminate this Agreement if the General Manager fails to
         perform his  obligations  under Article IV hereof and such failure,  if
         capable of remedy, is not remedied within 10 Working Days of receipt of
         a written notice of such failure from the Company.

7.2      The General  Manager may serve a termination  notice on the Company not
         less  than  five  (5)  Working  Days  prior  to the  intended  date  of
         termination to terminate this Agreement if the Company fails to perform
         its obligations  under Article 5.1 hereof and such failure,  if capable
         of remedy, is not remedied within ten (10) Working Days of receipt of a
         written notice of such failure from the General Manager.

7.3      Any right or remedy to which  either  party is or may  become  entitled
         hereunder or in consequence of the other's conduct may be enforced from
         time to time separately or concurrently  with any right or remedy given
         hereby or now or  afterwards  provided  for and arising by operation of
         law so that such rights and remedies are not  exclusive of the other or
         others but cumulative.

7.4      All works,  relationships,  concepts,  business plans, clients,  client
         lists and all  related  information  and  materials  ("Information  and
         Materials") are the property of the Company and not the General Manager
         and in the  event  that  this  Agreement  is  terminated  for  whatever
         reasons,  all  such  Information  and  Materials  are  to  be  returned
         immediately  to the  Company  without  any copies  having  been made or
         taken.

                 ARTICLE VIII - NO PARTNERSHIP OR JOINT VENTURE

8.1      Parties  agree  and  acknowledge  that they are not  partners  or joint
         ventures  and  nothing  herein  shall be  construed  to give  rise to a
         partnership or joint venture relationship between the Parties.

8.2      The  General  Manager  shall  not act or  purport  to act as a  General
         Manager of the Company save as expressly stated in this Agreement.

                         ARTICLE IX - GENERAL PROVISIONS

9.1 This  Agreement is governed by and construed in accordance  with the laws of
Hong Kong.

9.2      The courts of Hong Kong  shall  have  jurisdiction  to  adjudicate  any
         disputes  arising from and in relation to this  Agreement.  The General
         Manager hereby  expressly submit to the  non-exclusive  jurisdiction of
         the courts of Hong Kong and hereby  appoints  _________________________
         in Hong Kong as his agent to  receive  any legal  process  in  relation
         hereto.

9.3  Any provisions hereof held by a competent court or arbitration  tribunal to
     be invalid or illegal  shall not affect the  validity  of other  provisions
     hereof which shall remain  intact and legally  binding.  The Parties  shall
     continue to implement such other provisions.

9.4      This Agreement  shall be binding on and enure to the benefits of heirs,
         executors, administrators, successors and assigns of the Parties hereto
         provided  that the  General  Manager  shall not  assign  his rights and
         obligations  hereunder unless with express prior written consent of the
         Company.

Executed by the Parties at the place and on the date first above mentioned.

Witness                                    CathayOnline Technologies (Hong Kong)
Ltd.

_____________________________             Per:_________________ (corporate seal)

Witness                                       Owen Li LI

-----------------------------                 ------------------------------

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