| 1. | Party      A leases to Part B No. 8 plant located in Area M2-4, Xinggu Industrial      Development Zone, Pinggu District. The coverage of the plant building is      4484.76 square meters, including 2353.62 square meters of the plant,      1367.14 square meters of the office and 764 square meters of the attached      building. (The actual coverage shall be measured on site and verified by      both parties.) |
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| 2. | The      term of the lease is five years, starting from September 15, 2006 to      September 15, 2011. (If Party A fails to deliver the plant to Party B on      the agreed date, the start date of the term of the lease shall be the date      of the actual delivery of the plant.) The rent shall be calculated      according to the coverage of the plant building. 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. Within three months prior to the      expiration of the term, Party B is entitled to the first renewal right to      the land and the building on such a land under the same terms and      conditions of the agreement. |
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| 3. | The      rent is RMB 140/ square meters annually. The total amount of the rent (the      calculated rent) is RMB 627,900/ year, according to the friendly      negotiation of both parties, the total amount of the rent (the actual      rent) is RMB 600,000/ year. The rent shall be paid in two installations      annually. Party B shall pay Party A RMB 300,000 of the first installation      of the rent for the first year before September 15, 2006, and RMB 300,000      of the second installation shall be paid before March 15, 2007.      Accordingly, the rest of the rent shall be paid on March 15 and September      15 annually, till the termination of the  agreement. |
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| 4. | To      accelerating the construction of Party B, Party A promises to provide      Party B with a certain period for the equipment installation and      adjustment; hence, before September 15, 2006, Party B may use the plant      without paying the rent. |
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| 5. | Under      the circumstance that Party B shall not alter the general landscape and      function of the plant, with the prior consent of Party A, Party B may      partially alter, expand and improve theplant. |
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| 6. | During      the term of the lease, Party A assumes the rights and obligations as      follows: |
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|  | (1) | With      respect to the plant hereof, Party A has legal right to for the rental,      and shall not create any mortgage or pledge on the plant or sell the plant      during the term of the lease, and guarantee to deliver the building and      equipment to Party B. |
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|  | (2) | Party      A shall provide 50% of tax rebate in five years for the reason that the      tax revenues of Party B reaches the district standard after Party B starts      the production. After five years, the tax rebate to Party B shall be      reassessed according to its contributions and policies at that      time. |
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|  | (3) | Party      A shall provide Party B with assistance and solutions of all aspects with      regard to its industrial and commercial registration, alteration of      address and legal and administrative issues arising from the construction      of the plant, the production and theoperation. |
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|  | (4) | Party      A shall be responsible for the maintenance of the electric, water and      heating systems under circumstance of the regular uses, and responsible      for the relevant maintenance expenses. With respect to the maintenance of      electric, water and heating systems under circumstance of the non-regular      uses, Party A may still be responsible for the maintenance, provided that      the maintenance expenses shall be assumed by Party  B. |
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|  | (5) | To      prevent from affecting use of the plant hereof of Party B, Party A shall      not alter the structure and usage of the adjacent buildings being leased      to the third party. |
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| 7. | During      the term of the lease, Party B assumes the rights and obligations as      follows: |
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|  | (1) | Party      B shall contribute the capitals and import equipments in accordance with      the laws and regulations related to foreign-invested      enterprise. |
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|  | (2) | Party      B shall pay rents on time and prepare materials and fees for the      procedures necessary for theconstruction. |
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|  | (3) | In      the event that Party B needs to install or use any equipment that will      exceed the volume of water or electric meter (200KVA), Party A shall be      responsible for applying for increasing the volumes to the competent      department. The relevant expenses with regard to the volume increase shall      be assumed by Party B. |
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|  | (4) | Party      B shall be permitted to build the boilers by itself, provided that the      only boilers permitted to be built are oil-burning boiler and natural-gas      boiler. |
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|  | (5) | Party      B shall conduct the construction and development in compliance with the      relevant laws and regulations of the State, comply with the general plan      of the Industrial Development Zone, abide by the management and      coordination of Party A, and pay taxes in accordance with      laws. |
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|  | (6) | Any      activities of the enterprise shall not damage interests of the State and      the third party, otherwise Party B shall be responsible for the      compensating the losses. |
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|  | (7) | Party      B warrants that the registration capital of the company will not be less      than USD 2,000,000, the investment of tangible assets will not be less      than RMB 10,000,000 in the second half of the year 2007, after starting      the productions, the annual production value (the turnover) of the year      2007 will not be less than RMB 100,000,000, and the enterprise tax revenue      shall not be less than RMB 5,000,000 at the end of the year      2007. |
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| 8. | On      the start date of the lease, both parties shall inspect the building and      equipments together, and sign and perform the plant delivery agreement. On      the cancellation date of the lease, both parties shall inspect the      building and equipments together, and sign and perform the plant return      agreement. |
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| 9. | Either      party shall perform its duties in accordance with this 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 Beijing ArbitrationCommission. |
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| 10. | Any      matter not specified in this agreement may be negotiated by both parties      and sign a 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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| 11. | 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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| 12. | This      agreement consists two original copies, Party A and Party B holds one      respectively. |
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