| 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 North side of Pinggu Street      Xinggu economic development zone. The coverage of the plant building is      4931.27 square meters, including 3806.79 square meters of the plant,      934.04 square meters of the office (The actual coverage shall be measured      on site and verified by bothparties.) |

| (1) | Party      A shall deliver the agreed land and plant to Party B after the agreement      signed. The term of the lease starts from January 1, 2008 to January 01,      2013. The term of the lease is 5 years. The rent calculation date starts      from the lease agreement date, 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 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 area is RMB 150/ square meter      yearly. the sub-area is RMB 100/ square meter yearly. The total amount of      the rent (the calculated rent) is RMB 664,000/ year, according to the      friendly negotiation of both parties, the total amount of the rent (the      actual rent) is RMB 650,000/ year. The rent shall be paid in two      installations annually. Party B shall pay Party A RMB 325,000 of the first      installation of the rent for the first year before January 01, 2008, and      RMB 325,000 of the second installation shall be paid before July 01, 2008.      Accordingly, the rest of the rent shall be paid on January 01 and July 01      annually, till the termination of theagreement. |

| (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. |

| 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.                                                                                                                                                                                             |
| (2)             | 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 the operation.                                                                                                                                                                     |
| (3)   | 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. |
| (4)             | 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.                                                                                                                                                                                                                                                                               |

| 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, 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 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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| (5) | 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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| (6) | Party      B warrants that the registration capital of the company will not be less      than USD 8,000,000, the investment of tangible assets will not be less      than RMB 20,000,000 in the year 2008, after starting the productions, the      annual production value (the turnover) of the year 2008 will not be less      than RMB 200,000,000, and the enterprise tax revenue shall not be less      than RMB 5,000,000 at the end of the year2008. |
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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 four original copies, Party A and Party B holds two      respectively. |
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