In order to accelerate the globalization of the education industry in China, meet the challenges of China’s entering into the WTO, and further strengthen the exchanges between US and China in area of education, International Education Development & Cooperation Center, a subsidiary of the US-China Foundation, along with more than 20 universities in the US plans to jointly establish China International University in China. The outline of this project as follows:

1. Characteristics of the University and its Structure

A. The university is the Sino-US joint venture University. Its course is set according to international standard, and faculty are mainly from more than 20 universities in the US, including Duke University (ranking within top 10 among US universities, former US president Nixon graduated from this university). University of North Carolina (the first State university in the US, the famous basketball player, Michael Jordan graduated from this university), North Carolina State University, Stanford University, Yale University, and tens of US universities etc.; its main courses adopted by this university (with the exception, of course, in Chinese) are taught in English; graduates will be granted with diplomas from both US universities and Chinese universities.

B. This university is a joint venture university. Its capital, and facilities, educational resources, and contribution to this project can be converted into equivalent stocks of this university. The university is managed by its president, who is under board of directors.

C. This international university includes a Literature and Science College, Medical College, Life Sciences (Biology engineering) College, Business College, Software College, Law College, Polytechnic College, Art College, International Language College, etc.

2. Recruitment and Objectives of the University:

The university recruits students from both home and abroad. Its objective is to help the students become internationally competent talents, who will be suitable for current global competition, familiar with the international rules, good at foreign languages spoken internationally, and master related expertise and skills.

3. Requirements for Local Government:

Due to the characteristics of this university, the founders hope that the related provincial and municipal government agencies in China can offer necessary support on use of land and favorable policies to the University, avoid and control potential risk to be taken by developers or investors of the University. At the same time, Chinese local government and local education department would be required to be responsible for integration of Chinese local universities’ educational resources with the University’s.

4. Function of Founders of the University:

As investors and developer of the University, International Education Development & Cooperation Center of the US-China Foundation will be responsible for using educational resources in North Carolina and other regions in the US to participate in this project, inviting the US and international funds to invest in this project and coordinating the relationship between US and Chinese related parties.

5. Organizing Committee 
Setting up an organizing committee of the University, the two representatives from the two countries will act as the leaders of the committee (the Chinese leader and the US leader of the organizing committee). The committee will appoint representatives from universities in the US and investors as members of board of directors of the University. 
The responsibilities and rights of this committee as follows:
A. To present the scheme of establishing the University;
B. To form an entity including Chinese and overseas investors, make a plan for Chinese representatives to visit the US, arrange Chinese representatives to visit US universities and US representatives to visit China, and conclude the final agreement;
C. To invite and chose international institutions to evaluate this project within specified time;
D. To organize and assist international designing and planning firms to undertake the work of the designing and planning for the University;

6. INITIAL STARTING CAPITAL
The founders will invite investors to invest the initial starting capital for the expenses incurred in the organizing committee’s routine work, which includes the expenses incurred in making the business plan for the University, international round-trip airfares and hotels for American experts visit to China for 15 times, salaries of the committee members, expenses spent on advertisement, campaign for attracting investment, and public relations, etc. (note: the total anticipated expenses would range from $2,000,000 to $2500,000).

7. SCHEDULE OF INVESTMENT
30% of the investments would be deposited into related accounts on the day when the agreement is signed and sealed. Another 30% of the investments would be deposited into related accounts a week before the American representatives’ arrival in China; 20% of the investments would be deposited into related accounts before starting to make business plan for the University; the last 20% of the investments would be deposited into related accounts t when the business plan for the University is presented to the organizing committee.

Other matters, which are not stated here, will be discussed and settled later by related parties.

International Education Development & Cooperation Center of the United States and China Foundation

November 25th, 2004