CONTRACT FOR GRANT OF STATE-OWNED LAND USE RIGHT

                              (Land Grant Contract)

                             Xu Tu Chu (2006) No. 32

Parties to the Contract:

Grantor: Land and Resources Bureau of Xuyi County, Jiangsu Province, PRC
(hereinafter referred to as "Party A")

Grantee: Jiangsu Fanli Steel Pipe Co., Ltd. (hereinafter referred to as "Party
B")

In accordance with the Interim Regulations of the PRC Concerning Assignment and
Transfer of State-owned Land Use Right in Urban Areas and other relevant state
and local laws and regulations, and adhering to the principles of equality,
voluntariness and paid land assignment, the Parties hereby agree as follows:

Article 1  Party A grants the land use right in accordance with this Contract.
           The land ownership shall belong to the People's Republic of China.
           The state and the government have the rights of jurisdiction and
           administrative management over the land that are conferred by law,
           and other powers which, in accordance with the relevant laws and
           regulations of the PRC, shall be executed by the state, as well as
           such other rights and interests as necessary for the public interest.
           Any underground resources and municipal public facilities shall not
           be within the scope of the granted land use right.

Article 2  The land that Party A grants to Party B is located in the
           industrial development zone with the land No. ___________ with a
           total area of Fifty Four Thousand Six Hundred and Fifty Seven square
           meters (54,657 square meters). The four boundaries of the land are
           shown in the appendix - "Drawing of the Four Boundaries of the
           Granted Land."

Article 3  The term of the land use right grant under this Contract shall be
           50 years.

Article 4  The land under this Contract shall be used for industrial
           construction in accordance with the approved general planning. During
           the term of the grant, if Party B desires to change the use of the
           land and the Conditions of Land Use provided in this Contract, it
           shall obtain the consent of Party A, sign a new land use right grant
           contract in accordance with the relevant regulations and Article 13
           of this Contract, adjust the land grant fees, and complete the
           formalities for registration of the land use right.

Article 5  Conditions of Land Use: a. Floor Area Ratio shall not be lower than
           0.8; b. the construction density shall not be less than 45%; c. the
           greenery ratio shall not be higher than 20%; d. the land area used
           for auxiliary facilities such as internal administrative offices
           shall not exceed 10% of the total land area; e.







           the investment ratio shall not be less than RMB 1.2 million per mu;
           f. any other stipulations of the construction departments.

Article 6  Party B agrees to pay Party A the land use right grant fees, land
           use fees, value-added tax in relation to the transfer of land, and
           other national taxes (fees) related to the land in accordance with
           the stipulations of this Contract.

Article 7  The land use right grant fee for this plot of land is RMB 90 per
           square meter, for a total amount of RMB Four Million Nine Hundred and
           Nineteen Thousand One Hundred and Thirty (RMB 4,919,130). According
           to relevant regulations, the land use right grant fee shall include,
           among other things, the relevant charges relating to land use right,
           land compensation fee, relocation compensation and government
           proceeds. Among these, the relevant charges relating to land use
           right for this plot of land that shall be paid by Party B is RMB One
           Million Three Hundred and Ninety Three Thousand and Seven Hundred and
           Fifty Three (RMB 1,393,753). In addition, Party B shall comply with
           land compensation fee, relocation compensation and government
           proceeds according to the relevant policies of the county government.

Article 8  Within 15 days from the date that both parties sign this Contract,
           Party B shall make full payment of the relevant fees related to the
           land use right to Party A by check or by cash, the total amount of
           which shall be RMB One Million Three Hundred and Ninety Three
           Thousand and Seven Hundred and Fifty Three (RMB 1,393,753).

           If Party B fails to make full payment 30 days after the due date,
           Party A is entitled to cancel this Contract and Party B shall
           compensate Party A for the losses caused by its breach of this
           Contract.

Article 9  Within 30 days from the date Party B has made full payment of the
           relevant land use right fees, Party B shall, in accordance with the
           relevant regulations, apply for the registration of land use right
           with this Contract and the receipt for payment, obtain the
           Certificate for State-owned Land Use Right of the PRC and obtain the
           land use right.

           Party A shall, within 30 days from the date of acceptance of the
           application for registration of land use right, complete the
           formalities for registration of land use right for Party B and issue
           the Certificate for State-owned Land Use Right.

Article 10 Party B shall use the land in a lawful and reasonable manner; any
           activities of Party B on the land shall not damage or destroy the
           surrounding environment or facilities; if Party B causes any losses
           to the state or other entities, it shall compensate the relevant
           party for the losses thereof.

Article 11 Party B shall commence construction prior to August 12, 2006. If
           Party B fails to commence construction on time, it shall apply to
           Party A for extension 5 days in advance, and with the consent of
           Party A, Party B may







           postpone the construction, provided such postponement shall not
           exceed one month.

Article 12 Upon the expiration of the term for assignment, Party A has the
           right to take back the land use right without consideration, and the
           party occupying the land shall handle the registration formalities
           for cancellation of the land use right and return the Certificate for
           State-owned Land Use Right.

           If Party B desires to continue to use the land upon expiration of the
           grant, it shall submit a renewal application to Party A two months
           before the expiration of grant term and, upon the approval thereof
           and the determination of the new term for the land use right grant,
           land use right grant fee and other conditions, sign a new land grant
           contract and handle the formalities for the registration of land use
           right.

Article 13 Within the term of this Contract, Party A shall not take back the
           land by reason of any change of city planning. However, under special
           circumstances, as required by public interest, Party A may take back
           the land in advance in accordance with relevant legal procedures, and
           compensate Party B according to the value of the buildings and other
           attachments on the land at that time, and the value of the land use
           right for the remaining period.

Article 14 Party B is entitled to transfer, lease or mortgage the land in
           whole or in part for the remaining period if Party B shall have
           invested, developed and utilized the land in accordance with this
           Contract and the Conditions of Land Use, and the investment has
           reached 25% of the total investment (excluding the land grant fee) or
           the completed construction area has reached 25% of total design area.

           The first-time assignment, lease or mortgage shall follow the
           stipulations below:

           For an assignment or lease which would change the use of the land,
           Party B shall pay the additional land grant fee in accordance with
           the market price of the land at the time of assignment or lease; for
           an assignment or lease which would not change the use of the land,
           Party B shall pay the difference in the land grant fee based on the
           actual price at the time of the land grant or pay an appropriate
           percentage of the rent.

           If a mortgage right is exercised, the proceeds from the foreclosure
           of the land use right shall first be paid for the difference in the
           land grant fee at the time the government granted the land.

Article 15 Within the term of land use, the land administration authority may
           supervise and inspect the development and use, transfer, lease,
           mortgage and termination of the assigned land use right according to
           law.

Article 16 Should Party B fail to construct as agreed after obtaining the
           land use right , it shall pay to [Party A] 20% of the relevant land
           use right fees that have been paid as default penalty or Party A
           may take back the land with the original price of the land grant
           and make new arrangements for the use of the land. Should Party B
           fail to invest or construct for two consecutive years, Party A is
           entitled to take back the land without consideration.









Article 17 If Party B delays in obtaining the land use right due to the fault
           of Party A, Party A shall compensate Party B for 20% of the relevant
           land use right fees that have been paid as default penalty.

Article 18 The execution, effectiveness, construction, performance and
           dispute of this Contract shall be protected and governed by the laws
           of the People's Republic of China.

Article 19 Any dispute arising out of or in connection with this Contract
           shall first be settled by both Parties through good faith
           negotiation. If the Parties fail to settle the disputes through good
           faith negotiation, the Parties may submit it to Xuyi County Economic
           Contract Arbitration Commission for arbitration.

Articles 20 The plan for the grant of this land parcel has been approved by
           Xuyi County People's Government, and this Contract shall become
           effective on the date when the legal representatives (authorized
           representatives) of both Parties sign this Contract and the seals of
           the Parties are affixed to this Contract.

Article 21 This Contract shall be made in two copies, with each party holding
           one copy; each copy is of equal legal force.

           The contract consists of six pages. The Chinese version shall govern.

Article 22 The amounts and areas in this Contract shall be expressed in both
           words and figures and they shall conform with each other; should
           there be any differences, the expressions in words shall prevail.

Article 23 This Contract is made and executed in Xuyi County, Jiangsu
           Province, PRC on the 12th day of July, 2006.

Article 24 Both parties may have further negotiations about the matters not
           mentioned herein; supplementary agreements shall constitute the
           appendix of this Contract and have equal legal force with this
           Contract.


           Party A: Land and Resources Bureau of Xuyi County, Jiangsu Province,
           P.R.C

           (Seal) ___________________

           Legal representative (authorized representative): /s/
                                                             ------------------
           Address of legal person: ___________________________

           Bank name: _______________________________

           Account: ___________________________

           Postal code:    211700
                       ------------------------

           Telephone: _________________________

           Party B: Jiangsu Fanli Steel Pipe Co., Ltd.








           (Seal) ___________________

           Legal representative (authorized representative): /s/ Longhua Piao
                                                             -------------------

           Address of legal person: __________________________

           Bank name: _________________________

           Account: _________________________

           Postal code: _____________________

           Telephone: ________________________