| 1. | The      plant of Party A is located in No. 10 (a temporary number), Weisi Road,      North Zone Industrial Park, Gaoxin District, Urumqi, Xinjiang. The total      coverage of the plant area is 25 mu. Party A leases Party B 110 m2 of the      office and 3000 m2 of the plant of the total plant area. In case the      actual building coverage is lower than the agreed coverage stated in this      agreement and the drawing, the rent of Party B shall be deducted pro      rata. |
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| 2. | Party      A shall deliver the plant to Party B prior to June 10, 2007. The term of      the lease starts from June 10, 2007 to June 10, 2017. The term of the      lease is 10 years. In the event that the term of the lease is less than      one year, the rent shall be calculated according to the average daily      rent. The rent shall be adjusted according to the market price after three      years of the term. The adjustment range shall not exceed 16% of the      original total amount of therent. |
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| 3. | The      total amount of the rent (the actual rent) is RMB 300,000/ year. Within 10      days upon signing the agreement, Party B shall pay Party A RMB 300,000 of      the one-year rent (from June 10, 2007 to June 10, 2008) Afterward, Party B      shall pay Party A RMB 150,000 within 10 days prior to the start date of      the next half-year term. In the event that Party B defers to pay rents for      one month, Party A is entitled to terminate the agreement and hold Party B      liable for its breach in accordance with the agreement. Party A shall      provide Party B with an invoice of the same amount of the paid rent from      Party B. The rent calculation      date starts from the date that Party A delivers the land and plant to      Party B, Party B accepts them after examining and both parties sign the      closing list. Upon the closing, Party A shall present the certificates of      land use, the construction plan, compliance certificates of the fire      safety from the relevant agencies to guarantee the regular use for Party      B, otherwise Party A shall compensate Party B its losses arising from the      breach. |
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| 4. | Under      the circumstance that Party B shall not alter the general landscape and      function of the plant, it may partially alter, expand and improve the      plant. |
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| 5. | The      calculation of fees of water, electricity, and heating: Party A is      responsible for installing the water, electric and heating meters in the      office and the plant. The premises management personnel of Party A will      record the meters monthly and charge to Party B according the records.      Party A shall deliver the receipts of water, electricity and heating fees      to Party B. Party B shall pay the aforesaid fees within three days upon      the receipt of the regular business expense receipts and      invoices. |
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| 6. | Party      A shall be responsible for installing water, electric and heating systems      on the plant and the office, and the water system shall be activated for      use. Party A shall install two telephones on the office Party B leases.      The telephone bills shall be paid by Party B. Party A shall be responsible      for the maintenance of the electric, water and heating systems on the      plant, and the relevant maintenance expenses as well to guarantee the      regular use of Party B. |
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| 7. | During      the term of the lease, in case Party B discovers any damage or malfunction      of the plant, the office and their affiliated facilities due to quality      problems that do not attributed to the misuse of Party B, it shall timely      notify Party A to repair them. Party A shall conduct the repair within      three days upon the receipt of the notice. In the event that Party A does      not repair them within the aforesaid period, Party B may repair them on      behalf of Party A, and the relevant expenses shall be assumed by Party      A. |
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| 8. | Party      A has the legal right to rent the plant, and shall not create any mortgage      on the plant, or sell the plant during the term of the lease. In the event      that Party A does not have the legal right to rent the plant, and affect      the use of the plant for Party B, Party A shall return the received rent      and compensate the economic losses of PartyB. |
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| 9. | Party      B shall not sublease the plant during the term of the lease. In the event      Party B breach the agreement or early terminate or cancel the agreement,      Party A will not return the receivedrent. |
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| 10. | To      prevent from affecting use of the plant for Party B, Party A shall not      alter the structure and usage of the plant hereof, when Party A leases the      adjacent building to the thirdparty. |
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| 11. | Party      B has the first renewal right under the same terms and conditions after      the termination of the agreement. In the event that Party B plans on      renewing the lease, it shall send Party A an one-month prior notice to      Party A, and sign the renewagreement. |
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| 12. | Party      B shall comply with the relevant laws and regulations of the State during      the term of the lease. In the event that Party B violates any laws and      regulations, it shall be responsible for any liabilities incurred. Party A      is not responsible for any of aforementioned violations of Party      B. |
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| 13. | Upon      the expiration or the cancellation date of the agreement, both parties      shall inspect the plant and equipments together. In case the damages are      deemed to be intentionally caused by people, Party B shall be liable for      the compensations. The ordinary exhaust due to the regular use shall not      be included in thecompensations. |
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| 14. | Both      parties shall perform their duties in accordance with the agreement. Any      dispute arising from or in connection with this agreement or any      unspecified matters shall be negotiated by both parties. In the event that      both parties fail to reach an agreement, either party may submit the      dispute to the courts. |
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| 15. | The      security work shall be assumed by the regular security company. The      relevant expenses are divided equally by both  parties. |
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| 16. | Any      matter not specified in this agreement may be negotiated by both parties      and sign the supplement to the agreement. The supplement and this      agreement have the same legal effect and are equally binding to both      parties. |
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| 17. | In      the event that the natural disaster, the adjustment of the national policy      and any other event of force majeure occur, both parties shall negotiate      to reach an agreement. |
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| 18. | This      agreement consists four original copies, and take effect upon the signing      by both parties. Party A and Party B holds two copies      respectively. |
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