Document:

Unassociated Document

    EXHIBIT
      10.16

     

    Agreement
      on Joint Provision of Advanced Course for Master’s
      Degree

     

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

    Party
      B:
      Beijing Institute of Graphic Communication 

    

    In
      order
      to further improve the scientific research innovation and practical engineering
      capabilities of the engineering and project management personnel of Party A
      and
      thus to meet the requirements of development of emerging technologies, new
      businesses and the new situation, and through full mutual negotiation, Party
      A
      and Party B unanimously agree upon jointly providing an advanced course for
      master’s degree majoring in printing engineering (the “Course”) primarily to the
      backbone technical personnel of Party A, and hereby reach the following
      agreement (the “Agreement”) thereupon:

     

    
      	
              I.

            	
              Trainees

            

    

     

    Engineering
      technical and managerial personnel of Party A that have obtained bachelor’s
      degrees of engineering or technology that are recognized by the
      State.

     

    
      	
              II.

            	
              Aims
                of the Course

            

    

     

    Enable
      the trainees to obtain extensive and solid basic theories and knowledge of
      specialized domains, and to achieve certain proficiency in a foreign language
      so
      that they can read materials in their specialized field that are written in
      the
      foreign language. Improve their practical engineering and scientific research
      capabilities. Cultivate specialized talents that are capable of independently
      carrying out printing engineering research and development, undertaking
      scientific research, product development and technical management tasks in
      Party
      A, and possessing innovation capabilities. 

     

    
      	
              III.

            	
              Curriculum
                Setup

            

    

     

    
      	
              1.

            	
              Academic
                Degree-aimed Curricula: in consistent with the curriculum setup defined
                in
                the master’s-degree graduate students training programme as developed by
                China People’s Liberation Army Information Engineering University that is
                in cooperation with Party B. 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              2.

            	
              Non-academic-degree-aimed
                Curricula: Curricula at high starting point, covering extensive domains,
                tallying with the trend of technology advancement and meeting the
                market
                needs shall be set depending on specific working requirements.
                

            

      	 	 

    

    
      	
              3.

            	
              Special
                Lectures: Known experts in the press technology domain will be invited
                to
                provide special lectures on advancement of press technology, etc.
                

            

      	 	 

    

    
      	
              4.

            	
              Trainees
                from Party A applying for master’s degree in the capacity of personnel
                with equivalent educational level are required to take the unified
                national examinations of subject-specific comprehensive accomplishment,
                Party B shall be responsible for purchasing teaching materials including
                review outlines, and both parties shall consult with each other to
                settle
                issues regarding provision of pre-examination coaching to the
                trainees.

            

    

    

      
        	5.	
                Total
                  credits achieved under the Course shall not be less than 30 and
                  please see
                  Attachment 1 for detailed breakdown.

              

      

    

     

    
      	
              IV.

            	
              Faculty

            

    

     

    The
      trainers shall meet the State’s requirements concerning qualification of
      teachers of students for master’s degree, and shall possess technical titles
      above associate senior level. 

     

    
      	
              V.

            	
              Teaching
                Plan

            

    

     

    
      	
              1.

            	
              Venue
                of Teaching: on the campus of Party B

            

      	 	 

    

    
      	
              2.

            	
              Time
                of Teaching:

            

      	 	 

    

    
      	
              1)

            	
              Weekends
                and holidays, 8 hours per day, classes to be scheduled on Saturdays
                and
                Sundays in principle.

            

      	 	 

    

    
      	
              2)

            	
              Teaching
                to be started from March 9, 2002 and last for two school years (four
                semesters) to complete all scheduled curricula.

            

      	 	 

    

    
      	
              3.

            	
              Detailed
                teaching plan to be determined by Party A and Party B jointly depending
                on
                the curriculum setup and in consideration of the circumstances of
                Party A,
                each semester’s curriculum schedule to be negotiated and determined by
                Party A and Party B jointly 2 weeks before beginning of the
                semester.

            

      	 	 

    

    
      	
              4.

            	
              See
                Attachment 2 for the initial semester’s teaching
                plan.

            

    

     

    
      	
              VI.

            	
              Rights
                and Obligations of Party A

            

    

     

    Party
      A
      shall:

     

    
      	
              1.

            	
              Select
                as trainees the backbone technical personnel that work in a practical
                manner, have strong professional skills and are able to persist in
                finishing the Course. 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              2.

            	
              Designate
                specific department or personnel to assist in the notification of
                matters
                relating to teaching and examinations of the
                Course.

            

      	 	 

    

    
      	
              3.

            	
              Assist
                in and oversee the implementation of the teaching
                plan.

            

      	 	 

    

    
      	
              4.

            	
              May
                send a few personnel to audit some curricula depending on actual
                needs of
                work, provided that they shall not affect the learning of the registered
                trainees. 

            

      	 	 

    

    
      	
              5.

            	
              There
                shall be 20 or more trainees from Party A when the Course is officially
                commenced. 

            

      	 	 

    

    
      	
              VII.

            	
              Rights
                and Obligations of Party B

            

    

     

    Party
      B
      shall:

     

    
      	 	
              1.

            	
              Ensure
                provision of the same treatment to the training from Party A as that
                to
                registered full-time students of Party B, including guaranteed quality
                of
                teaching, availability of library and other teaching resources, and
                guaranteed supply of meals during the trainees’ stay on the campus for the
                Course. 

            

      	 	 	 

    

    
      	 	
              2.

            	
              Provide
                appropriate teaching facilities, such as classrooms and computer
                rooms, to
                ensure normal teaching.

            

      	 	 	 

    

    
      	 	
              3.

            	
              Provide
                textbooks and teaching materials.

            

      	 	 	 

    

    
      	 	
              4.

            	
              Take
                charge of attendance of the trainees and administration of teaching.
                

            

      	 	 	 

    

    
      	 	
              5.

            	
              Take
                charge of management of teachers and guarantee the quality of
                teaching.

            

      	 	 	 

    

    
      	 	
              6.

            	
              Administer
                files of the trainees. Transfer their school reports and certificates
                of
                completion to Party A for keeping and disposal after the end of all
                curricula under the Course.

            

      	 	 	 

    

    
      	 	
              7.

            	
              Issue
                China People’s Liberation Army Information Engineering University
                Certificate of Completion of Advanced Course for master’s degree to each
                trainee that has passed examinations, which certificate shall mark
                “Orientation: Press Engineering”; and trainees absent from or failing
                examinations shall be treated as per applicable provisions of the
                “Regulation on Administration of Central Teaching of Advanced Course
                for
                Master’s Degree” of Party B (Attachment
                3).

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	VIII.	
              Tuition
                and Terms of Payment

            

    

     

    
      The
        tuition of the Course is RMB Ұ
        4000.00
        per trainee per school year and the Course will cover two years (that is,
        total
        tuition of each trainee of the Course shall be EIGHT THOUSAND RMB YUAN),
        and
        each school year’s tuition shall be paid in full in a lump sum at the beginning
        of the school year. Party B shall issue nationally unified invoice upon receipt
        of tuition payment. After Party A pays the initial installment of tuition,
        Party
        B shall start teaching within two weeks. 

      Trainees
        terminating the learning in half way shall be deemed as having voluntarily
        quitted. 

    

     

    
      	
              IX.

            	
              Application
                for Master’s Degree and Competitive Thesis
                Examination

            

      	 	 

    

    
      	 	
              1.

            	
              Party
                B shall undertake that China People’s Liberation Army Information
                Engineering University, with which it collaborates for the purpose
                of the
                Course, will recognize the credits accomplished by the trainees of
                Party
                A.

            

      	 	 	 

    

    
      	 	
              2.

            	
              Party
                B shall be responsible for organizing and coordinating the trainees’
                participation in the nationally unified foreign language examination
                for
                applying for master’s degree in accordance with applicable documents
                issued by the Ministry of Education.

            

      	 	 	 

    

    
      	 	
              3.

            	
              After
                the trainees pass the foregoing examination, Party B shall arrange
                teachers to direct the trainees to select thesis topics, carry out
                subject
                research and write theses for master’s degree, and shall organize and
                coordinate the competitive thesis examination for master’s degree and the
                award of the degree.

            

      	 	 	 

    

     

    
      	
              X.

            	
              Miscellaneous

            

      	 	 

    

    
      	 	
              1.

            	
              Party
                A and Party B shall consult with each other to settle issues unexhausted
                herein.

            

      	 	 	 

    

    
      	 	
              2.

            	
              The
                Agreement is made in two identical copies, with each party respectively
                holding one, both falling into force and effect from the date of
                signatures and seals of both parties.

            

      	 	 	 

    

    
      	 	
              3.

            	
              Contact
                Person of Party A: Training Center of DuoYuan Digital Printing Technology
                Industry (China) Co., Ltd, Tel: 010-61271971

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Contact
      Person of Party B: Wu Huanquan with Beijing Institute of Graphic Communication
      Post-graduate Students Office, Tel: 010-69200512

    

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

    Address:
      Daxing Industrial Development Zone

    Tel:
      60212222

    Bank
      and
      Account No.: 

    Signed
      by
      Authorized Representative: Fang Na

    (Common
      Seal)

    Date:
      January 8, 2002

    

    Party
      B:
      /s/ Beijing Institute of Graphic Communication 

    Address:
      #25 Xinghua North Road, Daxing District

    Bank
      and
      Account No.: 

    Signed
      by
      Authorized Representative:

    (Common
      Seal)

    Date:
      January 8, 2002

    

    Attachment
      1:

    Beijing
      Institute of Graphic Communication Curriculum Setup of Advanced Course for
      Master’s Degree of Press Engineering

     

    Attachment
      2: Advanced Course for Master’s Degree Teaching Plan of First Semester

     

    Attachment
      3:

    Regulation
      on Administration of Central Teaching of Advanced Course for master’s
      degreeUnassociated Document

    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

            
              

            

          

          
            
            

          

        

      

    

     

    
      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.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

     

    
      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. 

       

      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.

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

      

    

     

    
      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).

                   

                  
                    
                      
                      

                    

                    
                      5

                      
                        

                      

                    

                    
                      
                      

                    

                  

                

              

            

            
              

                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).

                

                  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.

                     

                    
                      
                        
                        

                      

                      
                        6

                        
                          

                        

                      

                      
                        
                        

                      

                    

                  

                

              

            

          

        

      

    

    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.

    

    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. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    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. 

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

    

    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. 

    

    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). 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    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.

     

    Legal
      Representative:

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    Authorized
      Representative:

     

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

     

    Postcode:
      102600

    

    Party
      B:
      

     

    /s/
      Beijing Printing Machinery Research Institute 

     

    Legal
      Representative:

     

    Authorized
      Representative:

     

    Address:
      #5 Zaojiajienanli, Fengtai District, Beijing

     

    Postcode:
      100071

     

    
      
        
        

      

      
        11

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