EXHIBIT
      10.17

    Contract
      No. 20030307

     

     Offset
      Printing Machine Assembly Line

     

    Design
      Research and Development Contract

     

    Client
      (Party A): DuoYuan Digital Printing Technology Industry (China) Co.,
      Ltd.

     

    Designer
      (Party B): Beijing Printing Machinery Research Institute 

     

     

    DuoYuan
      Digital Printing Technology Industry (China) Co., Ltd (“Party A” hereinafter)
      engages Beijing Printing Machinery Research Institute (“Party B” hereinafter) to
      undertake the design, manufacturing, installation and commissioning of all
      components (including mechanical, electrical and hydraulic components) of the
      offset printing machine assembly line (the “Line” hereinafter) of Party A until
      the entire line meets the design requirements and starts normal operation,
      and
      the design of special structures throughout the Line. Both parties hereby enter
      into this contract (the “Contract”) on the basis of full
      negotiation.

    


    I.
      Content of Contract

     

    1
      Key
      Technical Parameters of the Line 

     

    
      	
               

            	
               

            	
              Item
                Description

            	
               

            	
              Unit

            	
               

            	
              Data

            
	
              1

            	
               

            	
              Assembly
                platform top surface size 

            	
               

            	
              mm

            	
               

            	
              1950X1200

            
	
              2

            	
               

            	
              pitch
                of assembly platform

            	
               

            	
              mm

            	
               

            	
              2000

            
	
              3

            	
               

            	
              Elevation
                of assembly platform

            	
               

            	
              mm

            	
               

            	
              +400

            
	
              4

            	
               

            	
              Moving
                speed of vertical transfer vehicle of conveying vehicle and empty
                platform

            	
               

            	
              m/min

            	
               

            	
              maximum:
                25, or 20 for conveying vehicle with frequency adjustable between
                2.5¢25
                

            
	
              5

            	
               

            	
              Number
                of assembly working positions

            	
               

            	
              Position

            	
               

            	
              32
                positions for each line

            
	
              6

            	
               

            	
              Per-position
                assembly time

            	
               

            	
              min

            	
               

            	
               

            
	
              7

            	
               

            	
              Foundation
                dimensions and equipment weight 

            	
               

            	
               

            	
               

            	
              See
                Attachment 1.

            
	
              8

            	
               

            	
              Number
                of assembly platforms throughout the Line

            	
               

            	
              Platform

            	
               

            	
              130

            
	
              9

            	
               

            	
              Carrying
                weight of assembly platform

            	
               

            	
              t

            	
               

            	
              8

            
	
              10

            	
               

            	
              Pump
                station: pump flow 

              Accumulator
                capacity

              Rated
                pressure

            	
               

            	
              l/min

              l

              Mpa

            	
               

            	
              ~65

              ~3

              12.5

            
	
              11

            	
               

            	
              Capacity
                of electrical installations throughout the Line: 

              electromotor
                of oil pump

              Online
                conveying vehicle 

              Offline
                conveying vehicle

              Vertical
                transfer vehicle 

              Total

            	
               

            	
               

               

               

              Kw

               

              Kw

               

              Kw

              Kw

              Kw

            	
               

            	
               

               

               

              15

               

              1.5x2=3

               

              3.0x2=6

              1.5x1=1.5

              25.5

            


    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2
      List of
      Equipment Supplies for the Line

    


    
      	
              SN

            	
               

            	
              Description

            	
               

            	
              Quantity

            	
               

            	
              Price

            
	
              1

            	
               

            	
              Assembly
                platform

            	
               

            	
              130

            	
               

            	
              Purchased
                by Party A

            
	
              2

            	
               

            	
              Online
                conveying vehicle (dual working positions)

            	
               

            	
              1

            	
               

            	
               

            
	
              3

            	
               

            	
              Offline
                conveying vehicle

              (dual
                working positions)

            	
               

            	
              1

            	
               

            	
               

            
	
              4

            	
               

            	
              Vertical
                transfer vehicle (single working position)

            	
               

            	
              1

            	
               

            	
               

            
	
              5

            	
               

            	
              Driving
                push rod of assembly line

            	
               

            	
              4

            	
               

            	
               

            
	
              6

            	
               

            	
              Buffer
                push rod of assembly line

            	
               

            	
              4

            	
               

            	
               

            
	
              7

            	
               

            	
              Empty
                vehicle return push rod (1)

            	
               

            	
              1

            	
               

            	
               

            
	
              8

            	
               

            	
              Empty
                vehicle return push rod (2)

            	
               

            	
              1

            	
               

            	
               

            
	
              9

            	
               

            	
              spotting
                device

            	
               

            	
              5
                pieces

            	
               

            	
               

            
	
              10

            	
               

            	
              Dead
                load bucket body 

            	
               

            	
              4
                pieces

            	
               

            	
               

            
	
              11

            	
               

            	
              Conveying
                vehicle track system 

            	
               

            	
              2
                sets

            	
               

            	
               

            
	
              12

            	
               

            	
              Vertical
                transfer vehicle track system 

            	
               

            	
              1
                set

            	
               

            	
               

            
	
              13

            	
               

            	
              Assembly
                platform track system 

            	
               

            	
              4
                sets

            	
               

            	
               

            
	
              14

            	
               

            	
              Power
                supply system of safety contact

            	
               

            	
              3
                sets

            	
               

            	
               

            
	
              15

            	
               

            	
              Hydraulic
                station

            	
               

            	
              1
                set

            	
               

            	
               

            
	
              16

            	
               

            	
              Hydraulic
                pipeline system

            	
               

            	
              1
                set

            	
               

            	
               

            
	
              17

            	
               

            	
              Electric
                control system

            	
               

            	
              1
                set

            	
               

            	
               

            
	
              18

            	
               

            	
              Assembly
                running-in

            	
               

            	
              8
                sets

            	
               

            	
               

            


    

     

    3
      Installation
      and Commissioning

     

    Party
      B
      shall be responsible for installation and commissioning of the Line. Party
      A
      shall send representatives to the site to provide coordination. When all
      equipments in satisfaction with the design requirements arrive at the plant
      where they are to be installed, both parties shall identify integrity of the
      equipments. Party B shall start installation and commissioning after Party
      A
      makes available all installation conditions. The installation and commissioning
      work shall cover the installation and commissioning of all equipments throughout
      the Line, the installation of electrical and hydraulic pipelines and lines,
      the
      making of steel structures, etc. Party A shall provide the water, electricity,
      gas supplies and vehicles in its plant to Party B for its use for free.


     

    4
      Confirmation of Drawings 

     

    In
      order
      to ensure acceptance of the design intention by both parties, they shall confirm
      general drawings of all equipments and of the Line as well as hydraulic skeleton
      drawings and the complete set of electrical control drawings, and then start
      equipment manufacturing. Party B shall invite Party A to Luoyang to fulfill
      the
      work. In order to guarantee progress, the confirmation shall be done in three
      stages depending on the cycle of equipment manufacturing. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    5
      Training of Personnel

     

    Party
      B
      shall be responsible for providing the user with one week’s technical training
      in order to enable its technical personnel and operators to understand the
      Line’s mechanical and electrical control principles and to master operating and
      repair skills. 

     

    6
      Acceptance inspection of the Line

     

    Party
      A
      shall organize units concerned to participate in the acceptance inspection
      of
      the entire Line. Both parties shall work together to jointly fulfill the
      acceptance inspection. 

     

    After
      end
      of unloaded commissioning by Party B, Party A shall organize trial production
      within 7 days in order to facilitate loaded run-in. After Party B lodges
      inspection request, Party A shall organize the acceptance inspection within
      one
      week. The production line shall be deemed as generally passing the inspection
      to
      the extent that it has run normally for three days with all technical indices
      meeting the design requirements and with a failure rate of not more than 5%
      (based on time of failure-induced stoppages). The Line shall not be brought
      into
      use before receiving the inspection, or otherwise it shall be deemed as having
      passed the inspection after it has been put in service for more than 30 days
      in
      cumulative, in which case Party A shall assume any and all consequences
      thereof.

     

    7
      Party A shall bear the following tasks and expenses:

     

    1
      Installation and commissioning of the power, gas and water supplies
      used.

     

    2
      Installation and commissioning of the hydraulic oil used, use of in-plant
      vehicles during installation.

     

    3)
      Civil
      engineering and costs thereof (including pre-burying of steel
      sheets).

     

    8
      Accompanying Technical Documents and Documented Correspondence between Both
      Parties 

     

    1
      Party B
      shall provide Party A with 5 sets of free-of-charge repair and use instructions
      of the Line, assembly drawings of all equipments and drawings of easily
      damageable parts. 

     

    2
      Communications between both parties shall be made in written documents
      (including photocopies and faxed copies thereof) and shall not become valid
      unless signed by both parties’ representatives. 

     

    II.
      Fee Payment and Terms of Payment 

    


    The
      total
      price of the design project is RMB 1.88million (ONE MILLION EIGHT HUNDRED AND
      EIGHTY THOUSAND RMB YUAN ONLY). 

     

    Terms
      of
      Payment 

    


    1.
      Party
      A shall make the initial installment of progressive payment to Party B after
      the
      Contract takes effect, which is calculated at 30% of the total price and is
      in
      the amount of RMB 564000.00 (FIVE HUNDRED AND SIXTY-FOUR THOUSAND RMB YUAN
      ONLY). 

     

    2.
      Party
      A shall make the second installment of progressive payment to Party B after
      all
      equipments have been manufactured and both parties have jointly finished
      ex-works inspection but before the equipments are shipped, which is calculated
      at 50% of the total price and is in the amount of RMB 940000 (NINE HUNDRED
      AND
      FORTY THOUSAND RMB YUAN ONLY).

     

    3.
      Party
      A shall make the third installment of progressive payment to Party B after
      the
      Line has been completed commissioned and passed inspection, and after both
      parties have simultaneously signed the inspection conformity certificate, which
      is calculated at 15% of the total price and is in the amount of RMB 282000
      (TWO
      HUNDRED AND EIGHTY-TWO RMB YUAN ONLY).

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    4.
      The
      rest portion shall be paid as quality warranty deposit after expiration of
      the
      quality warranty period, which is calculated at 5% of the total price and is
      in
      the amount of RMB 94000 (NINETY-FOUR THOUSAND RMB YUAN ONLY).

    


    III.
      Commissioning, Trial Run and Acceptance Inspection

     

    1. The
      contract equipment shall receive commissioning after completion of installation
      and all equipment defects occurring during the commissioning shall be solved
      as
      quickly as possible, which shall take not more than one month, or otherwise
      it
      shall be deemed as delay in the fulfillment of the time limit for the Project.
      

     

    2. Performance
      acceptance test shall be done after one week of non-stop and stable running
      in
      aggregate based on 8 hours per shift, which test shall be handled by the
      demander and attended by the supplier. After completion of the performance
      acceptance test, if the contract equipment reaches all performance assurance
      indicators set forth in the Contract (Attachment 1), the demander shall sign
      within 5 working days the preliminary acceptance certificate of the contract
      equipment in 2 identical copies to be countersigned by the supplier, of which
      each party will respectively holds one. In the event that the contract equipment
      fails to meet one or more assurance indicators set forth in Attachment 1 hereto,
      Sub-clause 7 of Article XI shall apply. 

     

    3. On
      the
      precondition of not affecting safe and reliable running of the contract
      equipment, the supplier shall repair minor defects, if any, within the time
      mutually determined by both parties and on a free-of-charge basis and the
      demander may agree to sign the preliminary acceptance certificate. 

     

    4. If
      the
      first performance acceptance test fails to meet one or more performance
      assurance indicators specified in Attachment 1 hereto, both parties shall
      jointly analyze reasons and identify the responsible party, which party shall
      take measures, and the second acceptance test shall be conducted within half
      month after completion of the first test. 

     

    5. If
      the
      equipment still fails to meet one or more performance assurance indicators
      specified in Attachment 1 hereto as found in the second performance acceptance
      test, both parties shall jointly analyze reasons and identify responsibility.
      

     

    6. The
      demander will issue the final acceptance certificate as per Sub-clause 5.4
      within 7 working days after the period from the issuing date of the preliminary
      acceptance certificate to its one-year anniversary and completion of
      compensation claim, regardless the performance acceptance test has been
      conducted for one or two times. 

     

    7. The
      preliminary acceptance certificate issued by the demander solely proves that
      the
      performance and parameters of the contract equipment from the supplier can
      be
      accepted pursuant to the contractual requirements as of the time of issuance
      of
      said certificate, but shall not be deemed as the evidence of relieving the
      supplier from the responsibility for potential defects of the contract equipment
      that may cause damages of the equipment and similarly, the final acceptance
      certificate shall also not be considered as such evidence. Potential defects
      refer to hidden problems of the contract equipment that cannot be normally
      found
      in the course of manufacturing and the supplier’s responsibility for correcting
      the defects shall be assured to last for the duration from end of the one-year
      warranty period to the first overhaul (which duration is normally one year).
      When such a potential defect is found (confirmed by both parties), the supplier
      shall provide free-of-charge repair or replacement.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    IV.
      Progress Rate

     

    1. Party
      B
      shall deliver equipment drawings within one and a half month after the Contract
      takes effect. All key pieces of equipment shall arrive at the plant in four
      and
      a half month and the time limit for completion of the entire Project shall
      be
      five and a half month from effectiveness of the Contract. 

     

    2.
      Party
      B must finish civil engineering of the shop and make all installation conditions
      available within four months after the Contract becomes effectiveness, or
      otherwise the time limit for the Project shall be extended accordingly.


    


    V.
      Warranties and Claims

     

    1.
      The
      warranty period is normally one year from signing of the final acceptance
      certificate of the contract equipment. 

     

    2.
      The
      supplier warrants that the contract equipment it supplies is brand new and
      of
      advanced and mature technological level, and that all equipment models selected
      meet the requirement for safe, reliable and economic operation and easy
      maintainability. The supplier undertakes that the technical documents delivered
      pursuant to Attachment 2 hereto are complete, consistent, correct and accurate
      and are able to meet the design, installation, commissioning, operating and
      repair requirements of the contract equipment. 

     

    3.
      The
      supplier shall pay penalty in the event of failure to meet one or more assurance
      indicators set forth in Attachment 1 hereto due to the supplier’s reason after 3
      occasions of acceptance tests. 

     

    4.
      If any
      material defect (failure to meet performance requirements, etc.) attributed
      to
      the supplier’s reason is found within the warranty period of the contract
      equipment, the warranty period will be re-started as one year from correction
      of
      the defect or replacement of the defective part. 

     

    5.
      In the
      event of the supplier’s delivery delay lasting for more than 7 days, the
      supplier shall pay 5‰ of the total design fee payable as penalty against each
      delayed day. The penalty will be deducted from the price of the equipment and
      shall not relieve the supplier from the obligation to further proceed with
      the
      delivery as per the Contract. 

    


    6.
      In the
      event of a delay in delivering critical technical documents of material impacts
      as confirmed by both parties that is identified to result from the supplier’s
      reason, the supplier shall pay RMB 5,000.00 per document as penalty against
      each
      week of the delay. 

    


    7.
      The
      sum of penalties assumed by the supplier in connection with the contract
      equipment, either for a single default or aggregately for more than one
      defaults, shall not exceed 10% of the total price of the contract
      equipment.

     

    8.
      The
      supplier’s payment of penalty against late delivery shall not relieve it from
      the appropriate obligations set forth herein.

     

    9.
      In the
      event that the demander (the user) rejects the contract equipment and refuses
      to
      pay the price thereof without due cause, it shall pay penalty to the supplier
      at
      thirty percent of the total price of the equipment. 

     

    10.
      If
      the demander fails to pay the price of the contract price within 5 working
      days
      after satisfaction of payment conditions and receipt of the inspection
      conformity report, it shall pay penalty to the supplier at 5‰ of the outstanding
      sum. The aggregate amount of penalties against late payment for each set of
      contract equipment shall not exceed 5% of the set’s total price. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    VI.
      Taxes

     

    1.
      The
      supplier shall bear the taxes it is supposed to pay in connection with the
      Contract in accordance with applicable taxation laws, regulations and
      requirements of the State. 

    


    VII.
      Warranty Period and After-sale Service 

     

    Party
      B
      undertakes to provide one year’s quality warranty for all equipments effective
      from the date of their being brought into use. If problems occur in the course
      of use that are attributed to the reason of Party B, it shall solve them in
      a
      timely manner and shall reach the site within 24 hours if the problems have
      to
      be settled on the site, or it shall also provide active assistance in settling
      the problems when they are due to the reason of Party A. (If equipment
      installation and commissioning is prevented due to the reason of Party A, the
      quality warranty period shall be extended to up to 18 months from the arrival
      date of key equipment). 

     

    VIII.
      Responsibilities of Both Parties 

     

    1.
      Party
      A undertakes to put the drawings, documents and software from Party B into
      its
      internal use only and not to disseminate them to third parties. 

     

    2.
      Party
      A shall provide board and lodging convenience to the personnel of Party B and
      Party B shall independently cover the cost thereof. 

     

    3.
      Party
      A shall take charge of on-site security in order to prevent unnecessary
      losses.

     

    4.
      Party
      B shall be responsible for clarifying civil engineering drawings and if on-site
      clarification is needed, it shall be done within one week. 

    


    IX.
      Additional Provisions

     

    
      	
              1.

            	
              The
                Contract shall take effect after signed and affixed with common seals
                by
                both parties’ representatives.

            


    

     

    
      	
              2.

            	
              The
                Contract is made in six identical copies, with each party holding
                three,
                all enjoying the same
                effectiveness.

            


    

     

    
      	
              3.

            	
              Both
                parties shall consult with each other in a friendly and cooperative
                manner
                and in accordance with the Contract Law to settle issues unexhausted
                herein and situations of delays of the Project caused by force majeure
                events. The resulting supplementary agreements shall enjoy the same
                effectiveness as the Contract.

            


    

     

    
      	
              4.

            	
              Attachments:
                The attachments to the Contract are the original technical terms
                and
                conditions required in the design and the fundamental basis of inspection
                and acceptance of equipments and the Line, and shall constitute an
                important part of the Contract.

            


    

     

    
      	
              5.

            	
              Term
                of Validity: The Contract shall remain valid until expiration of
                the
                equipment warranty period, and shall automatically lapse after payment
                of
                the quality warranty deposit. 

            


    

    


    Party
      A:
      

     

    /s/
      DuoYuan Digital Printing Technology Industry (China) Co., Ltd.
      (stamp)

     

    Legal
      Representative: see the company's stamp

     

    Authorized
      Representative: Li Juanjuan 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Address:
      #3 Jinyuan Road, Daxing Industrial Development Zone, Daxing District,
      Beijing

     

    Postcode:
      102600

    


    Party
      B:
      

     

    /s/
      Beijing Printing Machinery Research Institute (stamp)

     

    Legal
      Representative: see the company's stamp 

     

    Authorized
      Representative: Zhang Haiyan 

     

    Address:
      #5 Zaojiajienanli, Fengtai District, Beijing

     

    Postcode:
      100071

    


    


    Date:
      March 11, 2002

     

    
      
        
        

      

      
        7