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SETTLEMENT STATEMENT
American Records, Inc. v. Huacheng Musicals Co., Ltd.
Full and Final Settlement RMB
5,000,000.00
Expenses:
Attorney fees: One-Third (1/3) of recovery
Zhang, Wang & Lee RMB
1,666,666.00
Expenses, Zhang, Wang & Lee:
Air China round tickets RMB
16,000.00
Restaurants and entertainment RMB
8,423.00
Stationary and copying RMB
2,777.00
China Scientific Laboratory RMB
2,800.00
News release and public relations RMB
82,000.00
Filing fee and court costs RMB
8,000.00
____________________
BALANCE DUE AMERICAN RECORDS, INC.: RMB 3,213,334.00
I have reviewed the above accounting and hereby acknowledge and accept the
above net recovery as a full and fair settlement of my claim in this matter. I also
acknowledge that I will receive a check for the net recovery shown above. I am
completely satisfied with the above settlement and with the services of Zhang, Wang
& Lee, L.L.P.
In the event that monies are determined to be legally due any other person,
individual or legal, I agree to be responsible for and pay the same from my own
resources.

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____________________________
______________________________
Zhang, Wang & Lee American Records, Inc.
By: By:
DATED: _____________________