| A. | Main      content of the contract. |
|----|------------------------------------|

| a. | Party      A |
|----|--------------|

| 1. | Shall      provide all technical services, cooperate with Party B to establish      projects and actively apply for related scientific and technological      funding with party B. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Develop      new products with party B. |
|----|-----------------------------------------|

| 3. | Train      technical personnel for Party B. |
|----|---------------------------------------------|

| 4. | Actively      provide information related to technological research achievements and      products information to Party B. |
|----|----------------------------------------------------------------------------------------------------------------------------|

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| 5. | Shall      help Party B to timely solve technological problems encountered during      production and research process. |
|----|-------------------------------------------------------------------------------------------------------------------------|

| b. | Party      B |
|----|--------------|

| 1. | Shall      be responsible for provide funding needed for the essential research      work for the research and development projects established by both      parties. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Shall      pay for all the expenses included necessary labor fees incurred by      Party A for servicing Party B. |
|----|------------------------------------------------------------------------------------------------------------------------|

| 3. | Pay      the annual payment of RMB 24,000,000 as research and development fund      to Party A. |
|----|------------------------------------------------------------------------------------------------------|

| 4. | Coordinate      work with Party A actively. |
|----|---------------------------------------------|

| 5. | Provides necessary      conditions for the research and intern work for undergraduate and      graduate students from Party A, including foods and      accommodations. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | C. | Distribution      of property rights and projectoutcomes |
|--|----|----------------------------------------------------------|

| 1. | Results      of project established by both parties and the project funding was      provided by Party B shall belong to both Party A and Party B with      primarily ownership belongs to Party B. The profit shall be shared by both      parties according to certain percentages (Separate agreement will be      signed to determine profit sharing percentage) after the research      outcomes are transformed into production. If Party A provides research      results on its own, both parties shall establish agreements for the      ownership of the property right andoutcomes. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | The      spending of technology development funds planned by both parties and      obtained by Party B from related government departments shall be discussed      and agreed based on tasks and responsibilities of each    party. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | D. | Funding      and payment |
|--|----|--------------------------|

| 1. | After      the contract is signed and research topics are established by both      parties, Party B shall provide research and development funding to Party A      in various phases (Basically RMB 2,000,000 per  month). |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Party      B shall pay Party A RMB 24,000,000 annually for research and      development funding. First payment shall be committed within ten      days after the signing of the agreement. Monthly payment shall be due      at the end of the month. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | E. | Breach      of Agreement |
|--|----|--------------------------|

|   | F. | Others |
|--------|----|--------|

| 1. | The      contract becomes effective after it’s signed. Matters not mentioned herein      shall be decided through negotiation between both parties to reach a      decision. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 2. | This      agreement shall be valid for a period of three  years. |
|----|------------------------------------------------------------------|

| 3. | This      agreement has two copies, one each for both  parties. |
|----|-----------------------------------------------------------------|

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