Document:

Sublease
      Agreement

    

    Party
      A:
      Xi’an
      Amorphous Alloy Zhongxi Transformer Co., Ltd. 

     

    Party
      B:
      Xi’an
      Zhongxi Zhengliu Dianlu Transformer Factory

    

    Party
      A
      and Party B agreed through friendly negotiation based on “The Contract Law of
      People’s Republic of China” regarding Party B will lease and operate Party A’s
      branch factory of transformer, and made this agreement as follows:

    

    1.Property,
      Period and Fees for Leasing and Related Regulations

     

    (1)
      Party
      A will lease their branch factory of transformer (address: mid road of Daqing
      West Road, Xi’an) to Party B as a whole, the period is 3 years from April 1,
      2006 to March 31, 2009.
      

    

    (2)
      Party
      A will lease the existing facility and equipment( refer to the attached table)
      in the branch factory of transformer to Party B to operate; Party A will sell
      the raw materials to Party B based on the negotiated price by both
      parties.

    

    (3)
      The
      lease fee is RMB 500,000 per year, there will be RMB 1,500,000 for 3 years.
      The
      rent can be installed 3 years to pay, it will be paid for the yearly rent before
      each end of year. When Party B pay the rent actually, the rent which Party
      B
      lease Party A’s workshop and land can be reversed( RMB100,000 per year) and pay
      the remaining fee.

    

    (4)
      During leasing and operating period, Party B is liable for all legal
      responsibility on their own, they are responsible for their profit and loss
      with
      operating by themselves. Party A shall not interfere Party B’s operation. Party
      B ensure they should obey the laws and operate legally. Party B is liable for
      all responsibility in their own, if any activities which breaking the law or
      harm social interest, there is no connection with Party A. 

    

    2.
      During
      leasing and operating period, Party A shall not pay the rent based on the
agreement
      that signed by both parties ”Lease Contract for Workshop, Land and Affiliated
      Equipment”, the rent can be reversed by each parties. After the expiration of
      this agreement, the lease contract shall be performed as origin. Both Parties
      can negotiate if Party B shall renew this agreement. The other terms of” Lease
      Contract for Workshop, Land and Affiliated Equipment” that signed by both
      Parties shall be effective.

    

    3.
      Party
      B’s Right and Obligation

     

    (1)
      Party
      B is entitled entirely operation right.

     

    (2)
      Party
      B is entitled to keep the existing staff of branch factory of transformer in
      principle, but they have right to employ those who are outstanding. Party B
      shall decide by themselves regarding the employee’s salary standard and bonus
      etc.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (3)
      Party
      B shall leave 2 offices and 100 square meter in storeroom in this office
      building for Party A’s use.

     

    (4)
      During leasing and operating period, Party B is liable for all expenses for
      water and power supply and communication.

     

    (5)
      During leasing and operating period, Party B is liable for related
      responsibility if staff injury or death occurred.

     

    (6)
      During leasing and operating period, Party B shall maintenance all facility
      and
      equipment they leased, they shall not sublease, re-contracted or sell the third
      party without Party A’ permission.

     

    (7)
      During leasing and operating period, Party B should ensure Party A’s product to
      be manufactured at first priority. And Party B should process the auxiliary
      product of amorphous metal cores for Party A in free of charge.

     

    (8)
      During leasing and operating period, if Party A contracted the processing
      business will pass Party B to produce, Party B ensure they should complete
      in
      timely basis, Party A is responsible for selling the product. The detailed
      procedure is negotiated by both parties.

    

    4.
      Party
      A’s Right and Obligation

     

    (1)
      During leasing and operating period, Party A have right to inspect the equipment
      of produce regularly and urge Party B to rectify. Before 30 days of expiration
      of leasing period, the agreement shall be terminated after inspection by both
      parties and solved the existing problems. 

     

    (2)
      During leasing and operating period, Party A shall assist Party B to solve
      the
      problems related operation actively as per Party B’s requirement.

     

    (3)
      During leasing and operating period, Party A shall not interfere Party B’s
      operation and daily management activity.

     

    (4)
      During leasing and operating period, Party A shall not transport the equipment
      and property that Party B leased.

     

    (5)
      During leasing and operating period, Party A should ensure Party B’s legal right
      based on this agreement. 

    

    5.Changes,
      Removal and Termination for this Agreement

     

    Both
      parties should obey strictly this agreement after effective of this contract,
      any Party shall not change or terminate this agreement at one’s will. This
      agreement shall be changed or terminated after negotiated by both parties and
      in
      written form.

     

    (1)
      Due
      to Party A interfere Party B’s daily operation and management and result in
      Party B cannot operate in normal, Party B is entitled to remove this agreement
      and require Party A to shoulder the responsibly for breaking the contract.
      

     

    (2)
      This
      agreement can be changed or terminated after negotiated by both parties due
      to
      force majeure , and failed to be performed or fully performed.

     

    (3)
      Party
      A pass the processing business to Party B, Party B failed to meet the goals
      that
      both parties agreed, Party A have right to remove this agreement and take back
      the right of operation.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (4)
      Before 30 days of expiration of leasing period, Party B shall submit the fixed
      asset and evaluation form of flow asset to Party A to be checked, after checking
      and there was no problems, both parties can sign termination agreement, Party
      B
      shall leave the leased area.

     

    (5)After
      expiration of leasing period, if Party A want to lease out the areas again,
      Party B have the first priority to lease at the same condition.

    

    6. Responsibility
      for Breaking this Agreement

     

    (1)Upon
      expiration of leasing period, Party B cannot return the property they leased
      in
      good condition, Party B should compensate for the losses and pay the fine based
      on 10% of the lost property.

     

    (2)
      Upon
      expiration of leasing period, Party B shall not remain the leasing area without
      Party A’s permission, when there is no any renewal agreement signed with Party
      A, otherwise, Party B shall pay the fine for breaking the agreement as RMB1,000
      per day.

     

    (3)
      If
      Party A break the agreement, they are liable for breaking responsibility, and
      pay the fine based on 50% of the yearly rent.

    

    7.Settlement
      of Disputes

     

    Any
      disputes, controversies or differences which may arise between two Parties
      shall
      be settled through negotiation. If failed to make a consent, the two Parties
      are
      entitled to sue for people’s court which have jurisdiction right. 

    

    8.
      The
      agreement have 2 original, each party hold 1 original. It will be effective
      after signed and sealed by the two parties. If any terms which failed to be
      presented in this agreement, both parties can make the supplementary agreement,
      it has the same effect as the origin agreement.

    

    Party
      A:
      Xi’an
      Amorphous Alloy Zhongxi Transformer Co., Ltd.(seal) 

     

    Representative:

    Party
      B:
      Xi’an
      Zhongxi Zhengliu Dianlu Transformer Factory (seal)

     

    Representative:

    

    March
      25,
      2006Cooperation
      Agreement

     

    Series
      No.:AT-FJ-2005-1

    Party
      A:
      An Tai
      Science& Technology Co., Ltd.

    Party
      B:
      Xi’an
      Amorphous Alloy Zhongxi Transformer Co., Ltd.

    

    Whereas,

     

    1.
      The
      amorphous metal ribbon (hereinafter referred to as “ribbon”) is necessary raw
      material for making amorphous metal distribution transformer(hereinafter
      referred to as “AMDT”), only Hitachi Metal Co., Ltd and Party A can produce it
      at present;

    

    2.
      AMDT
      is the most advanced and energy-saving transformer with rapid development
      nowadays, it also requires ribbon to meet it’s need, it is estimated that the
      requirement of ribbon will exceed 50,000 tons per year in China within 2 years,
      however, there are less 20,000 tons supply each year at present, so, the
      potential market is huge. 

    

    3.
      Party
      A is constructing”10 thousand tons of amorphous metal ribbon and product”
project, it will be the only and the largest manufacturer for producing the
      ribbon after completion the project; and also is favorable for reducing the
      cost
      of amorphous alloy product in China;

    

    4.
      Party
      B is a specialized manufacturer for producing the AMDT and AMDT-core with most
      advanced technology, and they are planning to construct “product line of 5
      thousand tons per year for AMDT-core”, they have huge demand for ribbon. Party B
      hope they can entitle stable supply of ribbon and a favorable price.

    

    Therefore,

    

    After
      friendly negotiation between Party A and Party B regarding “ Party B cooperate
      with Party A to establish Party A’s project—“Product line of 10 thousand tons
      per year of Amorphous Metal Ribbon and Product”(hereinafter referred to as
“project”), and made the agreement as follows.

    

    1.
      The
      two parties agreed that Party B will invest Party A RMB 9 million for
      establishing the above project. Party B will not recoup their capital outlay
      after Party A completed the above article 2.

    (The
      capital outlay of Party B should be received by Party A within one month after
      signed this agreement by two parties.)

    

    2.
      After
      Party A’s project is put into production, Party A agreed they will ensure Party
      A’s purchase order with first priority, and entitled the favorable price with
      lower 3% than the market price for 3 years.

    

    3.
      If
      Party A fails to fulfill the above guarantee within 3 years, Party A promises
      they will take back Party B’s investment with 130% of their capital
      outlay.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    4.
      Party
      A cannot divert Party B’s investment, it can be only used in this
      project.

    

    5.
      This
      project of Party A is business confidentiality which is not disclose in public,
      Party B should keep this confidentiality. Party B is not permitted to disclose
      to the third Party without Party A allowance before disclosure in
      public.

    

    6.
      The
      two parties promise they will follow the agreement, they will negotiate timely
      if any emergency occurred. If any supplementary agreement is need, they will
      make the supplementary agreement.

    

    7.
      Any
      Party who break the agreement and result in any losses for the other Party
      need
      pay the damages for the losing Party.

    

    8.
      Any
      disputes, controversies or differences which may arise between two Parties
      shall
      be settled through negotiation. If failed to make a consent, the two Parties
      are
      entitled to sue for people’s court where this agreement signed.

     

    9.
      The
      agreement have 2 original, and it will be effective after signed and sealed
      by
      the two parties and also Party B’s investment is received by Party A.

    

    Party
      A:
      An Tai
      Science& Technology Co., Ltd.(seal)

    Representative:

    

    Party
      B:
      Xi’an
      Amorphous Alloy Zhongxi Transformer Co., Ltd. (seal)

    Representative:

    

    May
      27,
      2005

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