Document:

Exhibit 10.1

                                                       Serial Number: 2003H-0119
                                                                     -----------

                    FUTIAN Automobile Parts Purchase Contract

Party A: BeiQi FuTian Automobile CO., Ltd.
Party B: JingZhou HengLong Automotive Parts CO., Ltd.

The Place of Sign:Beijing             The Date of Sign:Nov. 6th,2002

<PAGE>

                                    Catalogue

Chapter One             Commercial Clause
Chapter Two             Technology Clause
Chapter Three           Quality Clause
Chapter Four            Service Clause
Chapter Five            The Selection Clause of Products After Stop-Supply
Chapter Six             The Clause of Intellectual Property
Chapter Seven           The Dispute and Other Clauses
Appendix 1              The list of Parts purchase

<PAGE>

Party A and Party B through  friendly  negotiation  and mutual  benefit  sign an
agreement as follows:

Chapter One: Commercial Clause

1.1 Party B should be  clearly  indicate  the part name,  type of model,  budget
price,  estimated  quantity,  batch  discount  rate  to  Party  A  (referred  to
attachment 6 - "List of Material of unit"

1.2 Based on `share the  benefit  and share the risk',  Party A will  adjust the
unit price subject to demand of market. Party B should co-operate with Party A's
lower cost strategy to honor the contract after adjusted price.

1.3 The methods of Delivery:

1.3.1 Transportation: by truck.

1.3.2 Packing:  Party B should specify the packing methods according Party A and
prove by Party  A.  Packing  methods:  Plastic  bag,  carton  box,  wooden  box,
container,  steel frame, steel box or others . For the cost of returned packing,
it should be negotiated by both parties.

1.3.3 Shipping destination:  Party B should deliver to the location indicated by
Party A.

1.3.4 Shipping cost: The cost of shipment should bear by Party B.

1.4 Payment:

1.4.1 The way of payment: By Bill of Exchange by bank check.

1.4.2 The date of payment:  Based on inventory of store of Party A and deducting
the quality  ensuring  deposit.  1.4.3 Party A will be based on quarter quote to
calculate and adjusting the amount of quality ensuring deposit quarterly.

1.5 Party A will  inform  Party B the  quantity  and  delivery  date  monthly in
writing. Party B should have the delivery ability 100%.

1.6  i(degree)Estimated  quantity of supply" of the  contract,  it means  annual
indication,  Party A have rights to adjust actual quantity  subject to demand of
market. Party B should make production plan based on Party A's plan.

1.7 If Party B fail to supply to Party A agreed  by the  contract,  Party B have
the rights to adjust the  quantity or cancel the supply.  Party B should pay all
losses to Party A.

1.8 If Party B cannot meet the supply  schedule  by any  reason,  Party B should
inform Party A in advance one month.  If the reason is identified as accident or
force  majeure,  then  Party B should  inform  Party A in writing or by phone to
explain the situation and possible shipment schedule.

1.9 If Party B does not meet shipment  required by Party A then Party A have the
rights to  require  Party B take a express  delivery  to the  location  or store
indicated by Party A but Party B should bear all the cost.

1.10  Party A have the  rights to audit,  visit  and  investigate  Party B's any
production process including raw materials, purchased items, process methods and
cost analyze...etc.

1.11 Party B guarantee to do the business with Party A always follow the rule of
fair competition.  Party B will not offer free gift, dinner,  free trip, expense
documentation  to Party A's stuffs of purchasing,  technical,  service and sales
division.

1.12 Party B have the rights to report to Party A concerning their stuff ask the
commission  during the  executing  the contract  with  evidence and Party A will
solve it according the regulations of company.

<PAGE>

1.13 To the  benefit of Party A and Party B, Party B does not have the rights to
disclose the price of contract to any third party, not allowed have the price of
other supplier,  searching, stealing or take unfair way to get price information
from Party B. When it happens Party A will terminate the contract straight way.

1.14 If Party B are cancelled the  certification  of supplier  during  effective
period of the contract  then the contract  becomes  terminated  from the date of
cancellation.  If Party B fail the normal supply to Party A within continued two
months then Party A have the rights to terminate the contract.

Technical Agreement

2.1 Party B should  develop,  manufacture,  supply and offer service of contract
products for Party A which specified in the technical agreement.

2.2 Develop new products:

2.2.1 Party B should rationalize their system to increase ability of development
and co-operate with Party A's progress.

2.2.2  Party  A  will  give  the  first  selected   candidate  to  the  supplier
participating and develop the new products. Party A have the rights to terminate
the  contract  of the  supplier is not  co-operating  and  effecting  developing
schedule and quality of the new contract products

Quality

3. 1 Quality control system requirement:

3.1.1  Party B  should  build up  their  quality  control  system  according  to
ISO/TS16949  or QS9000 and pass the audit to have the  certificate in the end of
2004.

3.1.2  Party A should  audit the Party B's quality  control  system on site when
supplied  contract  products have big quality  problem or annual audit  process.
Party B should fix the problems specified in Party A's audit report.

3.2 In-coming materials inspection and quality control:

3.2.1 Party B should attach the inspection  report with delivery to Party A, The
quality  standard should follow state and industry  standard but agreed by Party
A.

3.2.2  When Party B have the  certificate  of  ISO/TS16949  and grade A supplier
proved by Party A, Party A will agree to  inspection  free of supplied  contract
products.

3.2.3 If Party A found  defected parts on the  production  line,  Party B should
come to fix it within 24 hours  after  received  phone call or fax  informed  by
Party A but  Party A have  the  rights  to fix it by  themselves  in the case of
emergence. Party B should bear all the cost incurred.

3 .2.4  Party B should  bear the  compensate  if Party B caused  Party A stop to
produce and cause the loss in the reason of supply, quality,  service, etc., the
compensation includes: profits with contract, administration expense, transports
expense, price for repairing,  labor cost, travel charge.. Party A has the right
to carry on 2 times of claim of the actual  compensation to Party B and take the
measure of adjusting the supply  quantity,  stopping  supplying or terminate the
contract.

3.3    Quality control to vendors

3.3.1  Party B should  require  quality  standard as  ISO/TS1699  and QS9000 for
development and quality to vendors

3.3.2 Party A should have a copy of name list of  qualified  vendors and Party B
should  inform  Party A in case any  change in the name  list.  Party A have the
rights to  specify  the  responsibility  of  vendors  according  requirement  of
quality.

3.3.3 Party A have the rights conducting quality audits on site to the vendors.

3.4 Products quality audit:

3.4.1  Party B  should  set up  internal  quality  audit  system  and  submit  a
reliability  test report of the  function/safety  components to Party A at least
once a year.

<PAGE>

3.4.2 Party A have the rights to audit the quality via third party. Party A will
pay the cost if  passed  the  audit  but  Party B will pay the cost if it cannot
passed the audit.

3.5 Stabilize quality level

3.5.1 Party B should control the process ability to satisfy the quality level.

3.5.2  According  manual of PPAP,  Party B should adapt their quality  system in
case of any change in design,  modification,  materials and production  site and
submit the report for prove by Party A.

3.6 Products reliability requirements:

------ --------------- -------- ------------------------------------------------
                                              PPM MarketPPM value
 Item    Description     Model
------ --------------- -------- ------------------------------------------------

                                   First      Second      Third       Fourth
                                  Quarter     Quarter     Quarter     Quaeter
------ --------------- -------- ----------- ----------- ----------- ------------
  1     Steering gear    1027A     2559         2559       1706       1706
------ --------------- -------- ----------- ----------- ----------- ------------

3. 7  Quality problem

3.7.1 Party A should  feedback to Party B all the quality  problems  incurred in
incoming material  inspection,  production  process and after sales service.  In
case request by Party B, Party A should present the faulty parts.

3.7.2  Party B should take a effective  way to solve the  quality  problems  and
report to Party A based on "8D" methods.

3.8 Penalty

3.8.1  Party A will  evaluate  PPM  quarterly,  if the value of PPM over 1% then
claim  0.01%  of  quarterly  sales  price  but if over 5%  will  stop or  cancel
qualification of Party B as a supplier.

3.8.2 Party A have the rights to take an action to return the contract products,
setting time frame to make  modification,  lower the  quantity,  stop supply and
cancel qualification if the products, process and quality system cannot meet the
requirements of Party A. Or make a penalty of RMB$5,000 - 500,000 to Party B.

3.8.3 In case of  claims by Party A,  Party A will  present  the claim  list and
calculation  documentation to Party B. Party B should agree within one week. The
account  department  of Party A will  deducted  claim amount from the payment of
Party B.

3.8.4 If Party A does not executing their claim. It is not means Party A relieve
the claiming  rights but Party still have the rights for claim within  effecting
period of the contract.

Service

4.1 Before market service:

4.1.1 If any quality  problems  incurred in production  line of Party A, Party B
have the  responsibility to solve the problem by site service people.

4.2 After market service:

4.2.1 Party B will do the warranty service on behalf of Party A and follow their
specification.  4.2.2 Party A will announce the "Service police of vehicle" same
time and it will be the warrantee  service by joint service for FUZTIAN  vehicle
end users  between  Party A and Party B and it becomes the police of service net
work to end users.

<PAGE>

4.2.3 The service  (including service news and cost and so on) will be monitored
and managed by Party A but the accuracy of information  should be more than 90%.
Every service station should be feed backed the "Products warrantee form" to the
service  department  of Party A and the faulty  parts should keep two months for
identification of the response party, confirmation and quality analyzing.  Party
A will with stuffs of service  station jointly to process the faulty parts if no
request from application for faulty parts after two months.

4.2.4 Party A should inform the Party B all the information  related to warranty
service and warrantee rate. If Party B have any questions should contact related
department within 15 days after receiving information.  If it is necessary Party
B present actual faulty parts and all the cost incurred in shipment will be paid
by Party A.

4.2.5  Incurred  the  actual  warranty  cost will be paid in credit of Party B's
account monthly.

4.2.6 If  quality  problems  occurred  in batch or  series  then  Party B should
departure  their  service  people  to  indicate  station  informed  by  Party A.
Otherwise  Party A have the rights to solve the quality  problems by  themselves
but occurred all cost will be deducted from Party B's account.

4.2.7 The quality penalty occurred in quality control  monitoring program should
be paid by Party B.

4.2.8 Par Party A should audit the Party B's quality control system on site when
supplied contract products have big quality problem or annual audit process.ty A
will  claim 3-5 times of  actual  cost  occurred  in call back the  faulty  cars
because of response party is party B.

4.3 Spare parts supply:

4.3.1  Party B should  conduct  the  quality  control  and  packing  requirement
according  government  regulations and industrial  technical  standard.  Party B
should not supply any spare parts with FUTIAN mark to third party or personnel.

4.3.2 Party B offer the warrantee condition will follow the car warrantee police
offered by Party A referred to clause 4.2 of the contract.

4.3.3 The quality of spare parts should as same as Clause "Quality".

4.4 Special condition service:

4.4.1(pound)(0)Party  B will bear partial cost of warrantee  maintenance service
(only applied to engine, gear box and steering) and occurred cost will credit to
Party B's account by Party A. The warrantee service cost will set as follows:

------------------ -------------- ------------- ------------ -------------------
Description        Model          Material      Labor        Total cost
------------------ -------------- ------------- ------------ -------------------
Steering unit      1027                                      18
------------------ -------------- ------------- ------------ -------------------

4.4.2 Party B will joint with Party A for market promotion after  negotiating by
both parties.

4.5 The service of stop production and supply

4.5.1  Party B should  supply the spare parts to Party A within five years after
production stopped.

4.5.2 The  quality  deposit  will be not  allowed to  withdraw at least one year
after stop production. Bridge clause after stop supply

5.1 If the reason of stop  supply if on the Party B side then this clause is not
apply.

<PAGE>

5.2 Party B stop supply because of technical,  quality and service, Party B will
apply the bridge  sequence  of supply and stock less then one month,  the reject
parts are not put in count.

5.3 Party B stop the supply  because of market price.  In this case Party A will
apply bridge sequence but stock should less then one month.

5.4 Party B stop supply because of changed  purchase  police or other police and
Party A agree the bridge sequence but only apply for one-month stock.

5.5  Party B should  submit  the  report  in  writing  within 10 days in case of
mentioned situation otherwise will treat as no bridge sequence by Party A.

Intellectual property

6.1 The  intellectual  property  of auto parts  should be treated as belonged to
both parties.

6.2 Party B have the rights to use module,  drawings and  simples...etc.  During
the contract effecting period.  Party B should treat it as confidential and keep
in safety place.

6.3 Party B does not have the rights to disclosure any technical  information to
third party including modules,  drawings and samples without pre-agreed by Party
A. Party B should not  manufacture  the same  products and supply to other users
after terminate the contract.

6.4 Party B should not supply  the  contract  products  to third  party  without
pre-agreed  by Party A.

6.5 Party A have the rights require Party B to pay 5 times penalty of bleach the
contract if Party B bleach the above clause of the  contract.  The amount of the
penalty will deducted from Party B's account.

Arbitration

7.1 Any conflicts should solve by both parties through friendly negotiation.  If
it can not solve the problems then put into local court.

7.2 Miscellaneous matters should solve by negotiation of both parties.

7.3 Three copies of the contract. One for Party A and one for Party B.

7.4 Contract effecting period(pound)(0)Nov. 6th 2002 to Dec. 31th 2004

7.5 The contract  will become into force after  stamping  both  parties  company
seals.

Party A:Beiqi Futian Moto Co., Ltd.
Adress:Shayang Road, Changping District, Beijing
Authorized representative:

TEL: 010-80710462
FAX: 010-80716410
P.C.: 102206

Party B Jingzhou Henglong Automotive Parts Co., Ltd.
Adress:Henglong Road, Development zone, City Jingzhou, Hubei Province,
Authorized representative:

TEL: 0716-8324631
FAX: 0716-8312339
P.C.: 434000

<PAGE>

Appendix 1
---------------------------- -------------- ------------ ---------- ------------
     Part Description           Part No.     Unit Price   Quantity    Extension
---------------------------- -------------- ------------ ---------- ------------
    Rack & Pinion Power        3401010-06     1620.00       16580    26859600.00
       Steering Gear
---------------------------- -------------- ------------ ---------- ------------
 Right Supporter Assembly      3403020-06      14.30        16580     237094.00
---------------------------- -------------- ------------ ---------- ------------
  Right Supporter Bushing      3403026-00       8.90        16580     147562.00
---------------------------- -------------- ------------ ---------- ------------
  Left Supporter Assembly      3403030-06      14.30        16580     237094.00
---------------------------- -------------- ------------ ---------- ------------
  Left Supporter Bushing       3403036-00       8.20        16580     135956.00
---------------------------- -------------- ------------ ---------- ------------
  Left Dust Boot Assembly      3403070-00      16.60        16580     275228.00
---------------------------- -------------- ------------ ---------- ------------
 Right Dust Boot Assembly      3403080-00      18.50        16580     306730.00
---------------------------- -------------- ------------ ---------- ------------
Adjustable Steering Column     3404020-06      470.70       16580    7804206.00
         Assembly
---------------------------- -------------- ------------ ---------- ------------
  Steering Column Bracket      3404050-06      23.50        16580     389630.00
         Assembly
---------------------------- -------------- ------------ ---------- ------------
        Lower Shaft            3404070-06      119.60       16580    1982968.00
---------------------------- -------------- ------------ ---------- ------------
           Block               3404084-00       2.80        16580     46424.00
---------------------------- -------------- ------------ ---------- ------------
           Clamp               3404085-00       3.20        16580     53056.00
---------------------------- -------------- ------------ ---------- ------------
     Retarder Assembly         3404110-06      226.00       16580    3747080.00
---------------------------- -------------- ------------ ---------- ------------
     Oil Pipe Assembly         3406020-06      14.50        16580     240410.00
---------------------------- -------------- ------------ ---------- ------------
High pressure Hose Assembly    3406030-06      173.70       16580    2879946.00
---------------------------- -------------- ------------ ---------- ------------
          Wahser               3406041-06       1.80        16580     29844.00
---------------------------- -------------- ------------ ---------- ------------
  Steering Pump Assembly       3407010-06      548.00       16580    9085840.00
---------------------------- -------------- ------------ ---------- ------------
         Reservior             3408010-06      110.00       16580    1823800.00
---------------------------- -------------- ------------ ---------- ------------
  Idler & supporter ASM.       3412010-06      65.50        16580    1085990.00
---------------------------- -------------- ------------ ---------- ------------
        Pump Pulley            3412021-06      33.50        16580     555430.00
---------------------------- -------------- ------------ ---------- ------------
        Pump Pulley            3412031-06      33.50        16580     555430.00
---------------------------- -------------- ------------ ---------- ------------
       Pump Bracket            3412040-06      45.40        16580     752732.00
---------------------------- -------------- ------------ ---------- ------------
          V Belt               3412045-06      13.80        16580     228804.00
---------------------------- -------------- ------------ ---------- ------------
         Bolt Kits             3412050-06       3.30        16580     54714.00
---------------------------- -------------- ------------ ---------- ------------
         Nut Kits              3412060-06       1.80        16580     29844.00
---------------------------- -------------- ------------ ---------- ------------
           Bolt               900119-08171      3.70        16580     61346.00
---------------------------- -------------- ------------ ---------- ------------
           Bolt               90401-16014       3.70        16580     61346.00
---------------------------- -------------- ------------ ---------- ------------
           Bolt               91612-61025       3.30        16580     54714.00
---------------------------- -------------- ------------ ---------- ------------
        Small Clamp           90467-16008       9.00        16580     149220.00
---------------------------- -------------- ------------ ---------- ------------
         Big Clamp            90467-21005       8.90        16580     147562.00
---------------------------- -------------- ------------ ---------- ------------
           Total                                                     60019600.00
---------------------------- -------------- ------------ ---------- ------------Exhibit 10.2

                    Chery Automobile Parts Purchase Contract

Party A: SAIC Chery Moto Co., Ltd.

Party B: JingZhou HengLong Automotive Parts CO., Ltd.

The Place of Sign:Wuhu                  The Date of Sign: Oct. 13th, 2003

<PAGE>

     PREFACE This  agreement is made and effective on this 13th day of Oct. 2002
at City Wuhu.  Between:  SAIC Chery Moto Co., Ltd.  (hereinafter  referred to as
"Party A"), a Chinese Corporation organized and existing under the laws of China
and registered  legal address as No. 8 Changchun Road,  Development  Zone, Wuhu,
Anhui Province.

     Henglong Automotive Parts Co., Ltd. (hereinafter referred to as "Party B"),
a  Corporation  organized  and existing  under the laws of China and  registered
legal address as No. 1 Henglong Road Yuqiao Economic Development Zone, Jingzhou,
Hubui. Province.

     "The Party B" are  manufacturing  products refer to appendix 1 (hereinafter
referred to as Contract Products) and willing to sell to Party A.

     "The Party A" is willing to buy the Contract Products  manufactured by "The
Party B".

     "The Party A" and "The Party B" should honor the signed  "Supply  agreement
of assembled  units and materials"  Subject to above items,  both parties agreed
the following items and reach the agreement as follows:

Clause 1   Purchase Order:

1. "The Party A" should  purchase  the goods from "The Party B" via the purchase
order.  The purchase order as a formal  contract,  it aimed to confirm the name,
price,  quantity and destination of contract  products.  The purchase order will
come into force after signed by authorized  person of both  parties.  The signed
purchase  order  becomes a part of the contract and have the same legal power as
the contract (referred to Appendix 1).

2. The purchase order is also acting as a delivery timetable by "The Party A" to
"The Party B". The aim of the  purchase  order is for "The Party B" to  fulfills
the order in terms of delivery  time and  quantity.  The signed  purchase  order
becomes a part of the  contract  and have the same legal  power as the  contract
(referred to Appendix 2).

3. The Party B should deliver the contract products to the destination  location
specified by The Party A. The delivery time means the date of goods delivered to
The Party B's factory floor.

4. In order to  guaranty  the  balanced  production  of The Party A. The Party B
should  have at  least  half  month of  inventory  to  guaranty  The  Party  A's
production .

5. The Party A have the rights to  change/cancel  the  quantity of the  purchase
order from the time to time according  Party A's market and progress  situation.
The above-mentioned  change are based on quality,  delivery time and after sales
service by Party B.

6. Party B should supply the contract  products to Party A for their  production
and after sale products.  Party B should follow the  specification  specified by
Party  A and it is  not  allowed  to  supply  contract  products  and  technical
information  owned by Party A to third party by any way without  previous agreed
by Party A. Otherwise Party A has the rights to claim penalty of RMB$500,000.00.

Clause 2   Modification of Technical Issues

     Party A should inform any technical modification to Party B immediately. If
the mentioned  modification will effect the jig and fixture, both parties should
negotiate with the increased cost.

Clause 3      Quality of the Contract Products

1. All the contract products should meet the specification of government quality
control  standard  and also meet the  current  quality  control  by Party A. The
quality of production process should final proved by Party A.

2. If the contract products are required a audit by Party A, then Party B should
supply the required samples to Party A free of charge.

3. If the location,  process,  materials and vendors have any change by Party B,
Party B should inform Party A in advance two months before it happens.  If Party
B fail to inform  Party A then Party A have the  rights to claim the  penalty of
RMB$100,000.

<PAGE>

4.  Party B  should  delivery  the  good  contract  products  to Party A. If any
unqualified contract products have been delivered to Party A then Party B should
replace the faulty products within specified time and bear all the lose.

5. The faulty of vendor's quality refer to "Auto parts supply agreement".

Clause 4   Package of Contract Products

1. The package of contract products used by Party B should proved by Party A and
both parties should sign the agreement of Products Package

2. Part B should meet the  package  specifications  specified  be Party A except
specified otherwise.

3. Part B should meet the package specifications  specified be Party A for spare
parts and after sale service parts except specified otherwise.

4. The package should  withstander any damage during the shipment to protect the
contract products.

5. Part A have no reasonability for return the empty package, if any should sign
the "Return package agreement"

Clause 5   Delivery

1. If the Party B have the  accident  during  delivery,  Party B should take the
fast  methods to  guarantee  the  delivery  to avoid the  stoppage  of Party A's
production.

2.  Party B  delivery  contract  products  should  supply  with  "packing  list"
specified part number, name, quantity,  number of boxes, code,  production date,
order  number and batch  number...etc.  The test report and quality  certificate
should be attached with delivery.  If Party B failed, it will apply a penalty of
5% of price supplied.

3. Party B have the  responsibility of shipment,  If any damage or lose happened
during shipment,  Party B should make  replacement/recover the contract products
and pay the lose to Party A.

4. Party A found any  mis-assembly,  missing parts during receiving the contract
products should inform Party B for exchange or replace.  Party B should bear all
the cost.

5. Party A found any defected  parts should  inform Party B in writing.  Party B
should fix all the defected parts within specified time and bear all the cost.

6. Party B should pay the direct lose because of late delivery.

7. If Party B can not meet the  specified  delivery  time,  quantity and quality
specified in the contract caused Party A stoppage of production or force Party A
alternate the supplier, Party B should pay all the lose.

Clause 6    Payment

1. Party A should pay the price of "purchase order" to Party B.

2. The period of payment:  According  the "Table of  Inventory",  Party A should
make a payment of 90 days via bank.  It required  Party B issue the invoice.  If
Party B delivered the contract products in advance, Party A should make the same
payment period through the bank.

3. Party A have the rights deduct the amount of defect parts,  missing parts and
late delivered parts.

4. Party B should offer the real accounts to Party A. unless there is Party A to
agree in writing in advance,  Party A does not take the  obligation  to pays the
third party the payment for goods.

5. Party B should provide the special invoices of increasing taxes with standard
form.  Party B should mail by express or send directly the invoices to appointed
purchasing department of Party A and require "invoice receipt".  Otherwise cause
payment overdue or lose the invoice, the consequence is undertaken by Party B.

<PAGE>

Chapter Seven Product Duty

1. If the third  party  accuse  Party A of the defect  contract  products  cause
automobile damaged or  personal/property  lossed, which the products was offered
and installed by Party B, and claim for compensation or prosecute,  then Party A
should inform Party B with the fax or the telephone immediately .

2.  Party B  should  participate  in the  investigation,  technical  inspection,
technologic arbitrage and offer all  essential/necessary  information during the
above-mentioned  arbitrate.  If the lawsuit takes place,  the- both sides should
participate in dealing with arbitrate together .

3. The costs relevant to claim compensation of products duty should undertake by
the Responsibility side.

4. Both parties should determine the reason of the claim  compensation  basis of
information, appeal and judgment (If have).

5. If the product responsibility totally caused by Party B's fault, then Party B
should agree and undertaken that Party A is free of bearing all expenses related
to what the third party put forward claim and lawsuit,  Including  attorney fee,
court costs, etc.

6. If the product  responsibility totally caused by Party A's fault,, then Party
A should  agree and  undertaken  that  Party B is free of bearing  all  expenses
related  to what the  third  party put  forward  claim  and  lawsuit,  Including
attorney fee, court costs, etc.

7. If the products  responsibility imputed to this both sides. Both sides should
consult each other on how to state the claim most effectively.

8. Responsibility should include:

The compensation of the damage of the automobile or its parts

Bodily injury and property loss that the third party suffered;  other costs that
relevant  to  claim  compensation  and  lawsuit,  such  as:  Investigation  fee,
technical inspection, technologic arbitrate cost, attorney fee, court cost.

Chapter Eight  Confidentiality

1. Have not been agreed in writing in advance,  Party B should not  disclose any
technology from Party A to the third party.

2. Party B should get the permission from Party A if there is necessary to offer
the  technology  of  Party  to  Subordinate  supplier  who  will  also  take the
confidentiality obligation.

3.  Party B should  require  its worker to take the  corresponding  confidential
obligation in written form.

4. Party A also  should take the  confidential  obligation  with the  technology
which relevant to develop parts of contract.

5. The  supplier  of party B have the right to use the  technology  that Party A
offered within this contract period, and it will not bring the transformation of
the technological ownership.

Chapter Nine  Industrial Property Right

1. Party B should bear all the responsibility and claim compensation, if use the
contract  parts  purchased  according to this contract  terms infringe the third
party's industrial property with responsibility of Party B

2.  Party B  should  guarantee  that  Party A and its  customer  do not bear any
responsibility with above-mentioned  industrial  properties . The following case
will not  belong  to the  regulation  if Party B  produce  and  supply  contract
products  with the drawing of Party A offered and it is  impossible to know that
has already infringed the third party's  industrial  property.  In case of this,
Party A should  guarantee  that Party B will not get any claim  compensation  or
loss from the third party

3. When Party A put forward the request, Party B should inform Party A as to all
the things of industrial property related to contract products,  No matter these
industrial  properties  belong  to  Party  B , or is  permitted  using,  or  any
industrial property given special approval to.

4. The  trade  mark of  Gmcherry  should  only used for  supplying  Party A with
production or after sale.
<PAGE>

Chapter Ten  The Responsibility for Breach of Contract

1.  Party B  should  change  or  repair  the  defect  one as  soon  as  possible
immediately  if supplies  defect  products and undertake the  responsibility  of
overdue supply.

2. Party B should supply contract products according to Party A's requirement.If
supply  quantity  less  than  Party  A's  requirement  supplies,  Party B should
supplying the remaining  parts,  and the remaining  parts will deal with overdue
supply.

3. Party B should  bear the costs that Party A take the  rational  measures  for
preventing or reduce the fault loss from Party B .

4. If Party A will claim the  compensation  with the  responsibility  of Party B
according  to  above-mentioned  regulations,  Party A should  inform Party B and
offer them suitable period to investigation.

5. If Party B exceed  the time  limit  to  Party B or break  the  contract,  the
delinquent  party should pay penalties to the other  according to the regulation
of" contract law of the People's Republic of China".

6. If one party have break the contract as following shows, the other party have
the  right to  rescission  of the  contract  and claim  the  economic  losses of
compensation.

Party B terminate the contract unilaterally without reason, stopping to make and
supply the contract  products or give the contract  relevant  right to the third
party without the permission of Party A.

Party B violate the contract  (Clause  1,item 6) offer the contract  products to
the third party

Party B have supplied constantly the defect contract products

Either party violate the regulation of Clause 8.

Party A terminate the contract  unilaterally without reason,  refuses Party B to
supply the contract parts midway.

Chapter Eleven  Force Majeure

1.The either party should bearing any obligation or  responsibility,  If fail to
fulfill a contract during force majeure occurs,  but still comply with the other
clause of the  contract.  Both  party  should try their best to solve the matter
properly through the negotiation.

2. The party who suffer  from the force  majeure  should  inform  another  party
immediately  by mail or fax or telegram,  and have the  obligation  to prove the
influence from force majeure, duration and the influence of contract.

Chapter Twelve  Contract Duration

The contract will become into force after  stamping both parties  company seals.
Contract duration is one year. Namely from Jan. 1th, 2003 to Dec. 31th, 2004

With the Party A cooperate  with Party B lasting and  stability , This  contract
will  automatically  prolong if the either party has not propose  terminate  the
contract after expire in three months in this contract.

After this contract is terminate, Party B should stop the production of contract
products at the same time , And return all technological files to Party A .

Chapter Thirteen   Arbitration

All  disputes in  connextion  with the contract or  execution  thereof  shall be
settled friendly through negotiations. In case no settlement can be reached ,the
case may then be submitted  for  arbitration  according to " contract law of the
People's  Republic  of China".  The  arbitration  shall take place in Wuhu city,
Anhui province.

Three copies of the contract in Chinese. Two for Party A and one for Party B.

Party A: SAIC Chery Moto Co., Ltd.              Party   B:   JingZhou   HengLong
                                                Automotive Parts CO., Ltd.

Representative:                                 Representative:

<PAGE>

Appendix 1
------------------------- --------------- ------------ ----------  -------------
    Part Description           Part No.    Unit Price   Quantity      Extension
------------------------- --------------- ------------ ----------  -------------
   P/S Gear assembly       A11-3400010BC     1150        45000      51750000.00
--------------------------------------------------------------------------------
 Mechanic Steering Gear     A11-3400010       630         1200        756000.00
        Assembly
--------------------------------------------------------------------------------
   High Pressure Hose       A11-3406100        45        10000        450000.00
        Assembly
--------------------------------------------------------------------------------
   P/S Gear assembly       S11-3400010BB      790         7000       5530000.00
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
                                                                   58486000.00
--------------------------------------------------------------------------------

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