| 1. | The      condition of the leasing plant and affiliated  facilities: |
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|  | (1) | The      plant Party A leases to Party B is located in No. 1188, Changzheng Road,      Gaoxin District, Bengbu. The coverage of the plant is 1338 square meters.      The type of the plant is the light structure. It is located in the      northwest of Anhui Water Resources Industrial  Park. |
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|  | (2) | The      coverage of the empty land located on the north side of the plant is 260      square meters. Party A shall conduct the hardening of the ground at its      own expenses, and provide it to Party B for free use during the term of      the lease. |
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| 2. | The      term of the lease of the plant and the affiliated    facilities: |
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|  | (1) | Party      A shall deliver the agreed land and plant to Party B prior to June 1,      2006. The term of the lease starts from June 1, 2006 to May 31, 2016. The      term of the lease is 10 years. 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 construction plan, compliance      certificates of the fire safety from the competent agencies and other      compliance certificates 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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|  | (2) | Upon      the expiration of the term of the lease, Party A is entitled to take the      leasing plant back. Party B shall return the leasing plant on schedule. In      the event that Party B needs to renew the agreement, it shall submit a      written request to Party A within three months prior to the expiration.      After Party A consents to the renewal, both parties shall sign a new lease      agreement. |
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| 3. | Payment      of the rent: |
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|  | (1) | Both      parties agree that the rent for the plant is RMB 10/ square meter monthly.      The actual use coverage of the plant is 1338 square meters. The yearly      rent is RMB 160,000. The monthly rent is RMB 13,300. The yearly rent of      the plant shall be started from the rent calculation date. Party B agrees      to pay Party A one-year rent in advance on the fifth business date      starting from each rental year. Party A shall provide      Party B with the tax invoice of the same amount of the paid      rent. |
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|  | (2) | The      rent will remain the same during the first five years of the term, it      shall be adjusted according the market price in the last five years of the      term. |
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|  | (3) | The      yearly rent is paid entirely within one month prior to the expiration date      of the rent period. |
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| 4. | Other      expenses |
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|  | (1) | During      the term of the lease, the expenses of water, electricity, heating and      phone bills shall be assumed by Party B based on the actual use. The      amount assumed shall be determined according to the price Party A paid to      the relevant charged units or utility companies. All aforementioned      expenses shall be paid by Party A first, then Party A will deliver the      official receipts or tax invoices of the aforesaid expenses to Party      B.  Party B shall pays      Party A within three days upon the receipt of the official receipts or tax      invoices of the aforesaidexpenses. |
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| 5. | The      requirements for the use of the plant and the maintenance      responsibilities: |
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|  | (1) | During      the term of the lease, in case Party B discovers any damage or malfunction      of the plant and the 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 conduct the      repair 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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|  | (2) | During      the term of the lease, Party B shall reasonably use and protect the plant      and its affiliated facilities. In the event that the damages and      malfunctions of the plant and its affiliated facilities are caused by the      misuse or unreasonable use of Party B, it shall be responsible for the      repair. In case Party B refuses to repair, Part A may conduct the repair      on behalf of Party B, and the relevant expenses shall be assumed by Party      B. |
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|  | (3) | During      the term of the lease, Party A shall guarantee the plant and its      affiliated facilities remain the conditions of the ordinary use and      safety. In the event that Party A plans on inspecting, maintaining the      leasing plant, it shall send a three-day prior notice to Party B. Party B      shall cooperate with Party A with regard the  matters. |
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|  | (4) | In      case Party B needs to improve or increase the affiliated facilities and      equipments, it shall obtain the prior written consent from Party A. In the      event that the aforesaid improvement or increase of the facilities and      equipments need approvals from the competent departments, Party A shall      file the relevant applications and such improvements and increase shall      not be conducted prior to obtaining the approvals. The expenses shall be      assumed by Party B. |
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|  | (5) | Party      A is responsible for create a separation in the plant. The height of the      separation shall not be lower than 5.5 m, the north part of the separation      is the leasing plant of Party B. The relevant expenses shall be assumed by      Party A. |
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| 6. | The      sublease and return of the plant: |
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|  | (1) | During      the term of the lease, in case Party B plans on subleasing the plant, it      shall obtain the prior written consent of Party A. In the event that Party      B subleases or transfers the plant without the prior written consent of      Party A, Party A will not return the received  rent. |
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|  | (2) | Upon      the expiration of the lease, the plant shall be returned in its ordinary      condition. |
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| 7. | Other      covenants during the term of thelease |
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|  | (1) | During      the term of the lease, both parties shall comply with the laws and      regulations of the State. The business operated shall be in compliance      with the relevant laws and regulation of the State, and the plant shall      not be used to conduct illegal activities. Both parties shall comply the      relevant administrative guidelines of the management committee of Gaoxin      District, Bengbu. |
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|  | (2) | During      the term of the lease, Party A is entitled to supervise and assist Party B      to conduct the fire protection, safety, health and security      work. |
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|  | (3) | During      the term of the lease, in the event that the leasing plant cannot meet the      condition for performing the agreement due to the change of policies of      the city and force majeure events, either party shall not be responsible      to the other parties. |
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|  | (4) | Upon      the expiration of the term of the lease, Party B is entitled to the first      rental right, in case Party A plans on renting the plant. In the event      that Party A does not plan on renting the plant, it shall send a written      notice to Party B within half a year prior to the expiration, otherwise it      shall be liable for any loss or damage arising from the breach. Party B      shall evacuate the leasing plant on time, upon the receipt of such notice,      otherwise it shall be liable for any loss or damage arising from the      breach. |
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|  | (5) | During      the term of the lease, in case Party B is punished due to violating laws      and regulations of the State, Party A is not responsible for any      liability. In the event that the violation of Party B causes any economic      loss of Party A, Party B shall compensate such a loss. Party A is entitled      to seize the equipments of Party B, and return them to Party B after Party      B pays off the penalty or the compensation. In case Party A is punished      due to violating laws and regulations of the State, Party B is not      responsible for any liability. In the event that the violation of Party A      causes any economic loss of Party B, Party A shall compensate such a      loss. |
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| 8. | Other      provisions |
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|  | (1) | During      the term of the lease, in case Party A breaches the agreement by early      terminating this agreement, it shall compensate Party B one-year rent and      any loss of Party B. During the term of the lease, in case Party B      breaches the agreement by early terminating this agreement, it shall      compensate Party A one-year rent and any loss of Party  B. |
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|  | (2) | During      the term of the lease, any loss incurred by the ownership problems that      affect the ordinary operation of Party B, Party A shall take the full      responsibility and compensate any loss of Party  B. |
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|  | (3) | After      signing the agreement, if the company name of Party is changed, both      parties can endorse the change by signing and sealing the change on the      lease agreement. The original clauses      of the lease agreement are not changed, and remain effective till the      expiration of the agreement. |
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|  | (4) | During      the term of the lease, Party B only pays the rent of the leasing plant,      fees of water and electricity and phone bills used by Party B, it will not      be responsible for any other expenses. In the event that Party B defers to      pay the aforesaid expenses for one month, Party A is entitled to the 5% of      the penalty and to terminate theagreement. |
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| 9. | Any      matter not specified in this agreement shall be negotiated by both parties      in accordance with laws. |
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| 10. | 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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| 11. | As      a result of the change of Party B, the former agreement signed by Party A      and Beijing Agritech Fertilizer Limited signed on May 18, 2006 is      void upon date of signing thisagreement. |
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