Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Cathay Merchant Group, Inc. - Exhibit 10.7

Lease 

	Between 	GSA Grundstücksfonds
      Sachsen-Anhalt GmbH 	  
	  	Kantstr. 5 	  
	  	39104 Magdeburg 	  
	  	  	  
	  	  	  
	  	represented by the Managing
      Directors 	  
	  	Klaus-Dieter Thiese and Wily Kus
    	  
	  	  	  
	  	acting in its own name, but
      acting with a fiduciary 	  
	  	mandate and on behalf of the
      State of Saxony-Anhalt 	- lessor 
	  	  	  
	  	  	  
	and 	MAW Mansfelder Aluminiumwerk GmbH
    	  
	  	Lichtlöcherberg 40 	  
	  	06333 Hettstedt 	  
	  	  	  
	  	  	  
	  	represented by the Managing
      Director 	  
	  	Harald Springer 	- tenant 

have concluded the following lease: 

Preamble 

In accordance with the fiduciary mandate of the State of
Saxony-Anhalt, the lessor bought the real estate in Großörner, Hüttenberg 3 from
the Aluhett Aluminiumwerk GmbH with the notary contract of 18 September 2002
from the notary Peter Krolopp, Humboldtstraße 2, 39112 Magdeburg (Deed no.
848/2002). A conveyance to the lessor has not yet been made in the land
register. A notification of conveyance to the benefit of the lessor has,
however, been entered. 

The lessor also acquired certain machines and equipment from
ALUHETT Aluminiumwerk GmbH. 

The operations of Aluhett Aluminiumwerk GmbH consists of three
operational areas, namely a foundry, a stamping plant and a rolling mill. The
foundry and the stamping plant have been leased to the Aluwerk Hettstedt GmbH
(“Aluwerk”). The rolling mill and the corresponding portion of the real estate
in Großörner, Hüttenberg 3, was already transferred to the tenant on 11 November
1999. On 11 and 21 October 2002 the parties concluded an additional lease
effective 1 October 2002. 

On the property of the Aluhett Aluminiumwerk GmbH in Großörner,
Hüttenberg 3, namely in the rolling mill plant (hall 4 + 5), there is a Siemens
Quatro rolling mill. The owner of the Siemens Quatro rolling mill is the Siemens
Finance & Leasing GmbH. The tenant has concluded a usage agreement with
Siemens Finance & Leasing GmbH for the Siemens Quatro rolling mill. The
lessor is in negotiations to buy the Siemens Quatro rolling mill. 

The rolling mill operations and the Siemens Quatro rolling mill
should be leased to the tenant under the following conditions. On this basis,
the parties are concluding the following lease: 

Art. 1 
Object of Lease 

	1. 	
      The industrial property of the former company property of
      the Aluhett Aluminiumwerk GmbH in Großörner, Hüttenberg 3, a section of
      the property listed in the land register of Großörner, sheet 1303 under
      no. 7, land parcel 271, land 2 along with buildings – in the attached map
      = Appendix 1 in yellow (“company property”). The company property
      consists of the following (unsurveyed) area:

	 	Sheet 1303 no. 7 	Land 2 	Land parcel 271 	(ca.) 9,500 m2 
	 	Total 	  	  	(ca.) 9,500 m2 

	2. 	
      The lessor continues to lease the tenant the machinery
      and equipment listed in Appendix 2a (together “machines and
      equipment”).

	 	 
	3. 	
      In addition, the Siemens Quatro rolling mill in the hall
      on the company property including the band stretching plant and secondary
      equipment (together “Siemens Quatro rolling mill”, Appendix 2b)

	 	 
	4. 	
      The lessor is letting the company property, the machines
      and equipment as well as the Siemens Quatro rolling mill (together “lease
      object”) for the purpose of operating a rolling mill.

	 	 
	5. 	
      The tenant has or will attain the permits and technical
      know-how required to operate the rolling mill.

	 	 
		
      There is therefore no obligation to educate on the part
      of the lessor within the framework of the usage agreement.

	 	 
	6. 	
      Access, safeguarding property: The tenant is obligated to
      assume the safe- guarding of the property, the accesses and to assume the
      maintenance costs in the area of the lease object in accordance with Art.
      9. The lessor will allocate the share of the total costs for guarding the
      entire company property to the tenant for the tenant’s portion of the
      property. Should, in the framework of this guarding, a closing system be
      required by the security service, the tenant subjugates himself to this
      system at this point in time. The tenant will assure the closed security
      of the leased object. The tenant will be granted a right of way as shown
      in the map (Appendix 1). The right of way will be secured at the cost of
      the tenant. The entry in the land register will be made after the
      conveyance of ownership of the property to the lessor.

	 	 
	7. 	
      Media supply: the lessor will make the existing systems
      available for the supply and disposal of gas, electrical energy, water and
      waste water to the leased object.

	 	 
		
      The tenant will conclude its own supply and service
      agreements with the companies responsible for supplying media services to
      the site. The costs for the erection of pipes for supplying water and
      waste water as well as gas and electrical

2

lines which are located on the property
or which will be laid/altered by the tenant will be paid for by the tenant. The
tenant is to build, independently operate and maintain as well as bear the costs
for operation and maintenance in accordance with the written approval of the
lessor. 

Connection and development costs as
well as public-legal extensions (even one-offs) will be borne by the tenant.

Should meters for the flow of media be
lacking on the company property, the tenant will assume the installation and
operational costs. 

The supply of media to the property of
the Aluhett Aluminiumwerk GmbH is Großörner, Hüttenberg 3 is currently not
regulated in writing. In particular, the relationship of the tenant to the
aluminium plant with respect to the joint use of media on site requires a mutual
written agreement. It is the intention and desire of the parties to mutually
agree on the media supply on site including the other tenants at the site. 

Art. 2 
Term of Lease 

	1. 	
      The lease is fixed for a term of eight years. The lease
      commences on 1 September 2004 and ends, as long as it is not extended or
      prematurely terminated in accordance with the conditions of this
      paragraph, on 31 August 2012. It is possible at the earliest and
      exclusively for the tenant to terminate the lease at 31 August 2009 with a
      period of notification of three months to the end of the fifth year of the
      lease (31 August 2009). If the lease is not terminated by a party at 31
      August 2012 with a notification period of six months, the lease will be
      considered to be concluded for an undetermined period of time and can be
      terminated by either party with a notification period of six months to the
      end of the specific year of the lease.

	 	 
	2. 	
      The parties will complete a handover certificate at the
      time of handover. The handover certificate will describe the objects and
      condition of the buildings on the company property. Furthermore, a
      description of the status of the machinery may be completed for the
      machinery and equipment by an independent expert appointed jointly by the
      parties to the lease. The costs will be borne by the
  tenant.

Art. 3 
Rent, Secondary Costs 

	1. 	
      The rent for the lease object consists of a basic monthly
      rent and the secondary costs (together “rent”).

	 	 
		
      The secondary costs are determined in accordance with the
      Operating Costs Directive (BetrKVO) in the version applicable since 1
      January 2004, published in the BGBI I No. 56, pg. 2346 dated 25 November
      2003, Article 2 VO). The allocable costs and the costs included in the
      lump sum are shown in nos. 1 to 17 of the Appendix 3 of this agreement.
      They are to be paid on a monthly basis as a lump sum. An annual settlement
      will not be made.

3

The monthly rent is: 

	Basic monthly rent: 	  	  
	Until July 2006 (23 months): 	EUR 	14,500 
	As of August 2006: 	EUR 	16,175 
	Secondary costs: 	EUR 	440 
	  	  	  
	Rent up to and including July 2006: 	EUR 	14,940 
	Rent as of August 2006: 	EUR 	16,615

(in words: 
Rent up to and including
July 2006 fourteen-thousand, nine-hundred and forty euros; Rent as of August
2006 sixteen-thousand, six-hundred and fifteen euros) 

		
      The secondary costs contain only the portion of the
      property tax.

	 	 
	2. 	
      The lessor reserves the right to allocate additional
      secondary costs, the height and type of which is not currently known to
      the lessor, by means of a special invoice in accordance with Art. 315 of
      the German Civil Code.

	 	 
	3. 	
      The lessor is authorized to appropriately adapt the
      secondary costs sum if it is no longer sufficient to cover the advance
      payments that the lessor makes and this is exceeded by more than 5%. The
      adjustment may only be made effective 1 April each year. The lessor must
      announce the adjustment in writing at least 4 weeks in advance.

	 	 
	4. 	
      Should the secondary costs decrease the lessor will
      adjust the secondary costs sum accordingly. The adjustment may only be
      made effective 1 April each year. The lessor must announce the adjustment
      in writing at least 4 weeks in advance.

	 	 
	5. 	
      The tenant is entitled to a breakdown of the secondary
      costs within 4 weeks after the conclusion of the lease.

	 	 
	6. 	
      The lessor will invoice the proportional costs of the
      security service (see Art. 1 No. 6) in a separate invoice. The settlement
      will be performed on a monthly basis with a breakdown of the total and
      proportional costs.

Art. 4 
Payment of Rent 

	1. 	
      The rent is to the paid, free of charges, by the third
      working day of the month onto the account at the Norddeutsche Landesbank
      Magdeburg (BLZ 25050000) Acct. No. 122037948, with the reference
      “8530-7690 50 011”. The punctuality of the payment will be determined by
      the time at which it is credited to the lessor’s account.

	 	 
	2. 	
      The rent is to be paid free of value-added
  tax.

4

	3. 	
      The lessor is currently not authorized to deduct the
      input tax. Should the landlord become obligated to pay value-added tax,
      the statutory value-added tax will be added to the rent.

	 	 
		
      The parties agree at this time that should this become
      the case, the tenant will pay the rent plus the value-added tax.

	 	 
	4. 	
      In case of arrears with the payment of rent the lessor is
      entitled to charge 5 euros reminder fees for every reminder. The tenant
      owes an interest on arrears of 5% above the applicable discount rate of
      the Deutsche Bundesbank.

Art. 5 
Security 

	1. 	
      The tenant will pay the lessor a security deposit of €
      48,525 by 30 September 2004 for which the right to claim defeasibility and
      the offsetting and escrow are excluded. The security deposit is to be paid
      onto the account of the lessor at the Norddeutsche Landesbank Magdeburg
      (BLZ 25050000) Acct. No. 122037948, with the reference “8530-7690 50
      011”.

	 	 
		
      The tenant has already paid a security deposit of €
      24,000 to the lessor. For that reason a further security deposit payment
      of 24,525 is to be paid onto the above- mentioned account by 30 September
      2004.

	 	 
		
      The tenant may provide the security deposit payment of
      24,525 in the form of an unconditional, irrevocable and unlimited
      suretyship at the MFC Bancorp Ltd., Yukon Territory, Canada.

	 	 
	2. 	
      Should the remaining security deposit payment not be
      available to the lessor at the appointed date, the lessor has the right to
      an extraordinary cancellation of the lease.

	 	 
	3. 	
      The security deposit serves the lessor as security for
      any claims resulting in any way from the lease.

Art. 6 
Lien 

The tenant must submit a list of the objects brought into the
lease object to the lessor by 30 September 2004; the list must also show which
objects are subject to a lien or are pledged. The tenant must immediately inform
the lessor of any additional pledging of objects brought into the leased object.

Art. 7 
Right of Retention, Reduction 

The tenant may not offset the rent with a counter-claim which
has not been legally stipulated or has not been legally accepted by the lessor
and may not exercise a right of reduction or retention. 

5

Art. 8 
Contractual Use, Transfer to Third Parties

	1. 	
      Change of usage: Any change of the usage (see Art. 1 No.
      4) requires the written approval of the lessor.

	 	 
	2. 	
      Insurance, accident and fire protection: The tenant and
      the lessor will conclude for the duration of the lease relationship the
      necessary insurance in accordance with their responsibility for the
      object.

	 	 
	3. 	
      The tenant is obligated to conclude insurance for the
      leased machines and equipment, the Siemens Quatro rolling mill and the
      buildings of the company property for the new value against the risks of
      fire, water and storm/hail. The tenant is to assure that the lessor is
      included in the insurance policy as the co- insured and that it is
      contractually arranged that possible insurance claims in the case of an
      insured loss are to be made to the lessor.

	 	 
		
      The lessor obligates itself in agreement with the tenant
      to use payments from the insurance in the framework of an insurance loss
      for the elimination of the insurance loss.

	 	 
		
      The lessor must provide proof the insurance protection to
      the lessor by providing the insurance policies. At the same time the
      tenant must present the confirmation of the payment of the insurance
      premium from the insurance company to the lessor. This confirmation is
      punctual when it is submitted on 1 January every year or at the beginning
      of every insurance year. Furthermore, the tenant must prove the insurance
      protection of equipment which is not a component of the lease by
      presenting an insurance certificate from the insurance company. This proof
      is also to be presented at the beginning of every insurance
year.

	 	 
		
      The tenant obligates itself, with the entry into the
      agreement, to hold sufficient corporate liability insurance coverage,
      especially for the leased object used by the tenant and for stored goods
      as well as for risks from these goods, in this case in particular for the
      storage of water-threatening substances and the handling of sources of
      radiation.

	 	 
	4. 	
      A subletting is only permitted for the purpose of
      exercising the usage as per Art. 1 No. 4 and requires the prior written
      approval of the lessor. The tenant is not authorized to transfer the
      rights from this lease or allow the transfer to third parties without the
      approval of the lessor.

	 	 
		
      In case of unauthorized transfer of use the tenant is
      obligated to terminate this immediately. The lessor retains the right to
      sue for damages for the unauthorized transfer of use and the right to an
      extraordinary cancellation.

	 	 
	5. 	
      The lessor must dispose of waste and residue from the
      industrial activities at its own responsibility and costs. In case the
      disposal requires a certificate, the lessor must be shown the proof of
      disposal. In case of improper disposal the tenant is liable for any
      resulting claims, regardless of the type. An alternative suit against the
      lessor/property owner is excluded.

6

	6. 	
      Should the tenant intend to operate a fixed asset in the
      possession of the lessor (Appendix 2 a, b), the tenant is obligated to
      obtain all the required construction permits, the operating permits and
      anything else in its name and at its cost and to assume the costs for the
      operation, maintenance, technical monitoring and auditing.

	 	 
	7. 	
      The tenant is authorized to mount external advertising.
      At the termination of the lease relationship and the clearing of the
      object the tenant must return the object to the original
  condition.

Art. 9 
Maintenance, Elimination of Damages

	1. 	
      The tenant is obligated to perform decorative repairs at
      the end of the lease relationship.

	 	 
	2. 	
      Repairs to the lease object are to be performed at the
      cost of the tenant – just as are the other maintenance expenses for
      assuring the usability.

	 	 
	3. 	
      The parties are in agreement that the leasing at this
      rent only occurs because the lessor is released from any maintenance costs
      for assuring the usability, repair and maintenance costs and that these
      costs will be borne exclusively by the tenant. New acquisitions,
      maintenance and repair are to be performed only within the framework of an
      orderly planning. New acquisitions required will be made by the tenant at
      the tenant’s cost and go into the tenant’s possession. The parties are in
      agreement that the lessor need not provide a replacement for irreparable
      damages to the Siemens Quatro rolling mill and/or machinery and equipment.
      The tenant is granted a special cancellation right in this case (see Art
      13 No. 3).

	 	 
	4. 	
      The tenant must immediately eliminate damages which the
      tenant caused. Should the tenant not fulfil this obligation, even after a
      written reminder and a set date, the lessor may have the necessary repairs
      performed at the cost of the tenant. In case of urgently required damage
      repairs which cannot be delayed and should the tenant not be attainable,
      the written reminder and set date may be ignored.

	 	 
	5. 	
      The tenant must immediately inform the lessor of damages
      and defects, should they not be immediately reparable – regardless of the
      blame – and preventive measures required to protect the lease object from
      unforeseeable damages. The tenant must eliminate the damages at its own
      cost. The same applies if a third party is granted a right to the object.
      The tenant is to perform the notification and elimination of damages only
      within the framework of proper planning.

	 	 
	6. 	
      The assumption of the costs for the above repair,
      maintenance and service activities to the lease object by the tenant will
      be limited to € 10,000 per year. The parties agree to enter into
      negotiations for an additional financing in case this sum is, for
      verifiable reasons, exceeded. If the parties are not able to reach an
      agreement, the tenant is granted the right to an extraordinary
      cancellation (see Art. 13 No. 3).

7

Art. 10 
Exclusion of Liability, Transfer of Risk

	1. 	
      The tenant is familiar with the condition of the lease
      object. Reference is made to this in the Acceptance/Handover Certificate
      (see Art. 2 No. 2, Appendix 5). The lease object is being leased with the
      exclusion f any guarantee for liability for the size, earnings or
      suitability for use for the tenant. The lessor is not liable for property
      damage, the lessor does, however, assure that it is not aware of any
      essential or hidden defects.

	 	 
	2. 	
      The tenant has thoroughly inspected the object of
      agreement prior to the conclusion of the lease.

	 	 
	3. 	
      The tenant bears the risk that the lease is prematurely
      terminated in the case that the use is suspended due to fire or acts of
      nature or those of third parties.

	 	 
	4. 	
      The lessor assumes absolutely no liabilities for the
      lease object or any objects on it provided by the tenant or for the
      contractual customers or personnel acting there in association with the
      tenant.

Art. 11 
Inherited Contamination 

With regard to possible inherited contamination, i.e.
contamination of the lease object, the parties agree to the following: 

	1. 	
      Should the lessor be sued by third parties for inherited
      contamination which was caused by the tenant and after transfer of the
      lease object on 11 November 1999, the tenant must release the lessor from
      these claims.

	 	 
	2. 	
      Should the tenant or its organs be sued by third parties
      for inherited contamination which were caused prior to 11 November 1999 or
      after the termination of the lease and return of the lease object, the
      lessor must release the tenant from these claims.

	 	 
	3. 	
      The statutory offsetting claim as per BBodSchG (German
      Soil Protection Law) is excluded. The exclusion also covers claims to
      which could be due to third parties by the lessor who are associated with
      the tenant.

Art. 12 
Construction Measures 

	1. 	
      The tenant is not authorized, without the prior written
      approval of the lessor, to make building alterations in or on the lease
      object, to the installations or such objects. Should the lessor grant this
      permission, the tenant is responsible for obtaining the building and
      safety-technical permits and the legally required certificates and must
      bear all the associated costs and the costs of construction. The tenant
      assumes the risk for obtaining all the necessary official
  permits.

8

	2. 	
      Building alterations to prevent threats may be performed
      immediately by either party without prior notification or obtaining
      permission. With regard to the performance of these measures the tenant is
      not entitled to reimbursement of expenses, damages or claims of
      reduction.

Art. 13 
Cancellation 

	1. 	
      The cancellation as per Article 2 must be made in writing
      and be delivered to the other party to the lease at the latest on the last
      working day prior to the cancellation deadline by means of registered
      mail.

	 	 
	2. 	
      The lessor is entitled to an extraordinary cancellation
      for due cause without maintaining the notification period. Important
      reasons for the lessor are if:

		- 	
      the tenant transfers the lease object to a third party
      for use in a manner contradictory to the contract 

	 	-	
      the tenant closes down its operations at the lease
      object, 

		- 	
      insolvency proceedings are opened on the tenant’s assets
      or the proceedings are rejected due to a lack of volume, 

	 	-	
      the tenant is in arrears for two months rent.
  

		
      In case of an extraordinary cancellation by the lessor,
      the tenant must cover the rent lost to the end of the actual term of the
      lease by means of paying damages. In case of an extraordinary cancellation
      by the lessor due to arrears in the rent by the tenant (Art. 13, nos. 2,
      4th dash), the tenant must pay the lessor 12 months rent as
      damages. The total sum will be due with the delivery of the
      cancellation.

	 	 
	3. 	
      The tenant is authorized to an extraordinary cancellation
      for due cause without maintaining the notification period. Important
      reasons for the tenant are if:

		- 	
      an independent expert determines that the Siemens Quatro
      roling mill and/or parts of the machinery and equipment has or have an
      irreparable economic damage, 

	 	-	
      the negotiations as per Art. 9 No. 6 fail, 

		- 	
      by 20 June 2005 there is no mutual agreement on the media
      supply of the site, also with the other tenants on the site, or 

		- 	
      the permits required for the milling operations (see Art.
      1 No. 5) are no longer available for reasons for which the lessor is not
      to blame. 

	4. 	
      The extraordinary cancellation must be made in writing
      and delivered via registered mail to the other
party.

Art. 14 
Access to the Lease Object for the Lessor

	1. 	
      The lessor and its representative have the right to enter
      the object during opening hours to inspect its condition after having
      arranged this in advance and in accompaniment of a person named by the
      tenant.

9

	2. 	
      Should the lessor wish to sell the property, the lessor
      or its representative may enter the object together with potential buyers
      after having arranged this in advance and in accompaniment of a person
      named by the tenant.

Art. 15 
End of the Lease Relationship 

The lease object is to be returned in a proper and usable
condition at the end of the lease relationship. 

In case of permitted construction measures as per Article 11,
the resultant condition of the lease object is to be considered relevant. 

Art. 16 
Vehicle Scale, 20-kV Station, Gas Station,
Parking Areas, Washroom and 
Changing Facilities in the Administration
Building, Annealing Furnace
 with Batch Equipment Bldg. 6, Transverse Plant
II Bldg. 6 

On the lessor’s area marked in Appendix 4 there is a vehicle
scale (yellow), a 20-kV station (red), gas station (blue), parking areas and a
stamping plant (building 6), an annealing furnace with batch equipment bldg. 6,
transverse plant II (green). 

	1. 	 The tenant is granted the sole, cost-free use of the
        following objects/equipment: 

        Gas station on the lease object 

        Annealing furnace with batch equipment in the stamping plant 

        Transverse plant in the stamping plant

	 	 
	2. 	
      Furthermore the tenant will be granted the cost-free use
      of the following objects/equipment:

	 	 
		
      Vehicle scale 
20 kV station 
Car parks

		
      Washroom and changing facilities in the administration
      building.

	 	 
		
      If other tenants are interested in the use of the vehicle
      scale, the 20 kV station, car parks, and the washroom and changing
      facilities in the administration building, these may also be provided to
      the other tenants. The decision in this matter is to be made by the
      lessor. The tenant must accept this decision.

	 	 
	3. 	
      The lessor is not obligated to guarantee the
      functionality of the objects/equipment as per nos. 1 and 2. The user is
      authorized, but not obligated to maintain and restore the functionality at
      the cost of the tenant.

	 	 
	4. 	
      The lessor intends to sell the stamping plant and the
      foundry, including machines and equipment. Currently the stamping plant
      and the foundry, including the machines and equipment are leased. In case
      of a sale of the annealing oven with batch equipment in the stamping
      plant, the lessor must inform the tenant about the sale in writing. The
      tenant is authorized to use the annealing oven with batch equipment for
      another six months after the receipt of the information. Should the lessor
      fail to inform the tenant or fail to provide the tenant’s right to use
      the

10

annealing oven with batch equipment to
the buyer, the lessor is obligated to reimburse the tenant for the resultant
damages.

Art. 17 
Other Stipulations 

	1. 	
      The appendices 1 to 4 are components of this
      agreement.

	 	 
	2. 	
      The efficacy of this agreement is subject to the
      condition precedent,

		
      - 
	
      that the sales agreement for the Siemens Quatro rolling
      mill between Siemens Financing & Leasing GmbH and the lessor is
      concluded and the lessor becomes the owner f the Siemens Quatro rolling
      mill 

and 

		
      - 
	
      a contract for the termination of the contract between
      Siemens Financing & Leasing GmbH and the lessor with regard to the
      existing user agreement for the Siemens Quatro rolling mill, the band
      stretching plant and the secondary equipment is concluded effective 31
      August 2004. 

Art. 18 
Final Clauses 

	1. 	
      The tenant will immediately inform the lessor if changes
      relevant for the lease relationship occur.

	 	 
		
      Should the tenant’s address change, the tenant must
      immediately inform the lessor. The same applies in case of changes in the
      business license or other important changes relevant for the lease
      relationship.

	 	 
	2. 	
      Changes to the agreement must be made in
  writing.

	 	 
	3. 	
      The place of jurisdiction fro any disputes is
      Magdeburg.

Art. 19 
Separability 

Should any individual provision or any part of any provision be
or become void, illegal or unenforceable, the validity of the remaining
provisions hereof shall in no way be affected. In such case the void and/or
illegal and/or unenforceable provision or provisions shall be replaced by
relative provisions coming as close as possible to the sense and spirit and
purpose of this agreement. 

	Magdeburg 2 September 2004 	Hettstedt 1 September 2004 
	GSA Grundstücksfonds 	MAW Mansfelder 
	Sachsen-Anhalt GmbH 	Aluminiumwerk GmbH 
	(sgd. Illegible) 	(sgd. Illegible) 
	Lessor 	Tenant 

11Filed by Automated Filing Services Inc. (604) 609-0244 - Cathay Merchant Group, Inc. - Exhibit 10.10

Register of Deeds No. 1032/2004 

Negotiated 

in Magdeburg on 26 October 2004 

 

The following persons appeared before me, the signing notary

Peter Krolopp 

In 39112 Magdeburg, Humboldstr. 2 

Mr. Klaus Thiese, 
Business address in 39104 Magdeburg,
Kantstr. 5 
known personally by the notary, 

who, in this case, is not acting in his own name, but rather as

	1. 	
      The Managing Director of the
company

GSA Grundstücksfonds Sachsen-Anhalt GmbH 
Kantstr. 5 in 39104
Magdeburg 

- hereinafter referred to as the ”tenderer“ and “seller“ – 

and

	2. 	
      Subject to the required permit, which is to be submitted
      to the officiating notary in deed-form and which is considered as
      submitted and effective when it has been delivered to the notary, for the
      company

MAW Mansfelder Aluminiumwerk GmbH 
Lichtlöcherberg in 06333
Hettstedt 

- hereinafter referred to as the ”recipient of offer“ and
“buyer“ – 

Preamble 

The State of Saxony-Anhalt has charged the GSA Grundstücksfonds
Sachsen-Anhalt GmbH with the preparation and performance of the acquisition of
fixed assets from selected companies and their sale of them to investors. 

The GSA performs the tasks with which it has been charged in
its own name, but has a fiduciary mandate and on behalf of the State of
Saxony-Anhalt. 

Condition precedent 

The following offer is subject to the condition precedent that
the tenderer will be entered as the owner in the appropriate land register upon
execution of the property purchase agreement by the notary Peter Krolopp dated
18 September 2002 (Register of Deeds No. 848/2002). 

The persons appearing – acting as noted – requested that the
following be notarized: 

A. OFFER TO CONCLUDE A PURCHASE AGREEMENT
FOR REAL
ESTATE AS WELL AS MACHINERY AND EQUIPMENT 

I.          
OFFER AND REGULATIONS FOR ACCEPTANCE 

1. Offer, Right to acquire property 
The tenderer grants the
recipient of the offer the right to purchase the real estate described in this
document under 1.01 in Section B “Content of the Purchase Agreement” along with
the moveable assets in appendices 2 and 3 and offers the recipient of the offer
the conclusion of the agreement established in Section B “Content of the
Purchase Agreement” of this document. 

2. Period of commitment, Acceptance 
The tenderer is
irrevocably bound to this offer up to and including 31 July 2009. The recipient
of the offer may only accept the offer up to this date. The agreement takes
effect when the recipient of the offer declares to a notary the acceptance
within the period mentioned, regardless of the delivery of the acceptance
document to the tenderer. 

3. Priority notice of ownership 
Despite instructions by the
notary, the participants waive the entry of a priority notice of conveyance for
the assurance of a claim of conveyance by the recipient of the offer. 

4. Power of attorney for conveyance of property 
The
tenderer hereby grants the recipient of the offer the power of attorney, free of
the restrictions of Art. 181 German Civil Code, to declare or repeat and submit
any declarations needed or expedient for the execution of the agreement for the
tenderer for the conveyance of property after the acceptance of the offer. The
principles of Section B are to be maintained hereby with regard to the liability
for submission. The notary to certify the conveyance of the property has been
instructed to only submit the document which contains the conveyance of the
property in accordance 

2

with the conditions of the purchase agreement Section B
“Content of the Purchase Agreement” 10.02 to the Land Register. 

The power of attorney expires as of 31 July 2009. 

II         
COSTS AND COPIES OF THE OFFER 

The costs of this contractual offer will be borne by the
recipient of the offer. 

Copies of this document will be provided to: 

	The buyer and the recipient of the offer – one copy each immediately
  
	The Tax Office – Property Tax Dept. – a normal copy. 

After the acceptance of the offer the document is to be
completed as it has been stipulated in the agreement offered. 

B. CONTENTS OF THE PURCHASE AGREEMENT 

1.          
DESCRIPTION OF THE REAL ESTATE 

1.01 Land register status 

  	Land Register 	Großömer 
	Land Register office 	Hettstedt 

  	Land register sheet 	1303 	  	  

	No. 	Land 	Land parcel 	M2 	 Type and location 

	  	2 	271 	84,565 	 Industrial and commercial
        

	  	  	  	  	  

	Encumbrances in Sec. II 	No.1 	 General insolvency proceedings
          have been opened on the owner’s assets (53-N-66/95 of the Local
          Court of Halle-Saal District 

	  	No. 3 	 Easement (right of way) for
          the owner of the property 1394/130 of Land 2 Großörner district
        

	  	No. 5 	 Easement (cable, broken pipe
          right, natural gas, drinking water, production water, waste water and
          electrical energy lines right) for the owner of properties nos. 29,
          36, 39, 50, 58 – entered in Großörner sheet 698 as well
          as properties nos. 18, 28 – entered in Großörner sheet
          1254, ranking above Sec. II no. 2 

	  	No. 6 	 Notice of conveyance of property
          for a partial area of about 710 m2 for Martina Schmidt, born Sobczak
          on 18 June 1951; mortgaged to the Deutsche Bank 24 AG, Leipzig office
          for a claim of DM 75,000 with 15% 

3

  	  	  	 annual interest 

	  	No. 7 	 Notice of conveyance of property
          for a partial area of about 84,468 m2 for the GSA 

	  	  	   
	Encumbrances in Sec. III 	No. 1 	 DM 38,008,476 mortgage for
          the NordLB Girozentrale Mitteldeutsche Landesbank in Magdeburg, entered
          on 23 November 1994 

	  	No. 2 	 DM 45,481,524 mortgage for
          the NordLB Girozentrale Mitteldeutsche Landesbank in Magdeburg, entered
          on 23 November 1994 

	  	No. 3 	 DM 11,334,000 mortgage for
          the NordLB Girozentrale Mitteldeutsche Landesbank in Magdeburg, entered
          on 23 November 1994 

	Owner 	Aluhett Aluminiumwerk GmbH 

The seller acquired, as per the agreement of 18 September 2002
(Deed no. 848/2002 of the signing notary) a precisely measured area of 84,565 m2
from the Aluhett Aluminiumwerk GmbH. The agreement is currently being processed
by the notary. All agreements and statutory obligations from the above mentioned
certified document have been fulfilled by the seller. 

The purchase area consists of a location and size known exactly
in its nature to the parties to the agreement, with an approximate size of
37,232 m2 from the land parcel 271, which is marked in yellow in Appendix 1of
this document. 

1.02 Verification of the land register data 

The signing notary had an uncertified copy of the certified
title from the Local Court of Hettstedt, dated today, the contents of which he
discussed with the participants. After being instructed about the hazards
associated with the lack of current land register, the participants waived a
renewed inspection of the land register and requested that the notary
immediately perform the certification. 

1.03 Agricultural and forestry usage 

The seller declares that the property is not used for
agriculture or forestry. 

2.          
SALE 

2.01 Sale of real estate 

The seller sells and herewith transfers the above mentioned
partial area, along with the building structures on it and the objects
(“Contractual Objects” listed in appendices 2 and 3 (see also 2.02) with all the
rights and the statutory accessories to the accepting buyer as sole
proprietorship. The partial area is marked in yellow with a thick black border
in the cadastral plan attached as Appendix 1 to this document. The appendix to
which reference is made and which is a component of this document, was presented
to the participants for review and approved by them. 

4

The seller will immediately contract out the surveying of the
partial area mentioned in the above 1.01. The costs of the surveying and the
execution of the division of the real estate will be borne by the buyer. 

The result of the official surveying will determine the final
dimensions of the partial area. The section marked in the appendix will be sold;
the marking has priority over the size of the area defined. 

The sale of the partial area will occur in accordance with the
official surveying and the acceptance of the survey stated in the amendment to
the certified document. The costs for the amendment to the deed will be charged
to the buyer. 

The parties to the agreement obligate themselves to accept the
results of the survey in an amendment to the deed immediately after the
presentation of the certificate of change and, if the purchase price has been
paid, to declare the conveyance of the property and to accept it and to submit
all the applications needed and appropriate for the execution of the deed and
the certificate of change, including the consolidation and component
revaluations. 

The seller hereby empowers the buyer, free of the restrictions
of Art. 181 of the German Civil Code, to arrange the amendment certificate and
to submit any appropriate declarations or applications, in particular the
conveyance of property and with respect to the consolidation and component
revaluations. The arrangements and obligations established by this document
apply internally for the parties to the agreement. The power of attorney is
unrestricted externally. 

2.02 Objects sold with property 

Objects sold with the property, i.e. objects of the agreement,
included in the purchase price below and transferred with the payment of the
purchase price are the Siemens Quatro Rolling Mill, the exact description of
which is to be found in Appendix 3 and the machines and equipment as per
Appendix 2, which is a component of this agreement. 

3.          
PURCHASE OPTION 

The buyer of the partial area listed under 1.01 is granted a
purchase option for the section of the property Großörner district, land 2, land
parcel 271. 

The section is marked by a green line in the cadastral plan in
Appendix 4 to this document. Appendix 4, to which reference is made and which is
a component of this document, was presented to the participants for review and
approved by them. 

The purchase option does not apply for any case of sale. It
exists only in the case that the Aluwerk Hettstedt GmbH does not acquire this
section. If it can be exercised, but if not exercised, it expires. The purchase
option is limited for the buyer to 31 December 2009. If it is not exercised
prior to the end of this period, it expires. 

The seller, as the current owner of the authorized property,
accepts purchase option. 

5

Despite the advice of the notary, both parties agree that the
purchase option is not to be entered in the land register. 

4.          
PURCHASE PRICE AND PAYMENT OF THE PURCHASE PRICE 

4.01      Purchase price 

The net purchase price is EUR 3,035,000 (in words – three
million and thirty-five thousand euros). Of this sum, EUR 2,000,000 are
allocated for the machines listed in appendices 2 and 3. 

Should the responsible tax authorities not accept this
distribution of the purchase price, this will be at the cost of the buyer. 

Due to the fact that the seller is acting with a fiduciary
mandate and on behalf of the State of Saxony-Anhalt, it is to be assumed that
the seller is not authorized to deduct the input tax. Should the seller
nevertheless be required to pay the value-added tax, this will be assumed by the
buyer and the purchase price will be increased accordingly. 

4.02      Due date of purchase price

The purchase price falls due four weeks after the notary has
sent a written memo to the buyer that the following prerequisites (conditions
for payment being due) have been met. 

4.03      Conditions for payment being
due (to be monitored by notary) 

	 	a) 	
      The notary has a certified copy of the title in which the
      seller is entered as the owner of the properties to be sold and that any
      notices to the benefit of the buyer are not superseded by encumbrances
      after the conclusion of the agreement; encumbrances in which the buyer has
      cooperated in or assumed may precede the notice.

	 	 	 
	 	b) 	
      The local government confirms that it has no purchase
      options or that these will not be exercised:

	 	 	 
	 	c) 	
      The documents for the release of the property from
      mortgages to the extent agreed upon have been entrusted to the notary in
      deed form and the creditors do not request any price greater than the net
      purchase price for the free use of the release documents.

	 	 	 
	 	d) 	
      The official permits required for this agreement are
      available.

To calculate the four-week deadline, the postal stamp of the
memorandum sent to the address of the buyer as noted in this document will be
decisive. 

6

4.04      Payment of purchase price

The purchase When the notary has informed the buyer in writing,
the purchase price is to be paid, free of charges, onto the seller’s account at
the Norddeutsche Landesbank Magdeburg (BLZ 250 500 00) acct. no. 122 037 948
with the reference “8539-7890-000”. 

4.05      Default 

The buyer is in arrears if the buyer does not pay the purchase
price within four weeks after the signing notary has sent the memorandum on the
due date for the payment (event in terms of Art. 286 (2) No. 2 German Civil
Court); a separate reminder is not required. The buyer will have to the
statutory default interest, regardless of the obligation to pay additional
damages for being in default. 

4.06      Transfer of the ownership
  of the objects sold as per appendices 2 and 3 

The parties are in agreement that the ownership of the objects
in appendices 2 and 3 will be transferred to the buyer on the condition that the
payment of the purchase price is made. 

The transfer of the objects of the sale as per appendices 2 and
3 occurs on the day after the payment of the purchase price due. 

5.          
SUBJUGATION TO EXECUTION 

The buyer subjugates itself to the seller for immediate
foreclosure for the purchase price of EUR 3,035,000 and default interest of 5 %
annually above the discount rate. Due to the principle of stipulation for the
foreclosure, the default interest is due starting with the day of the
certification of the acceptance of the purchase offer. Certified copies and
clauses may not be issued without proof of the settlement date. There is no
reversal of the burden of proof. 

A reversal of the burden of proof is, however, not associated
with this so that it is the obligation of the creditor to prove the existence or
maturity of the claim in case a counter-claim is brought against the execution.

6.          
STATUTE OF LIMITATIONS 

The claim for procurement of the ownership and the rights in
rem granted by this document are limited to the same time as the claim to the
purchase price by the seller, at the latest, however, to thirty years after the
beginning of the statutory limitation. 

7.          
TRANSFER OF RISKS 

	7.01 	
      The transfer of ownership and risks occurs on the day
      which follows the day of the payment. On this day the use, burdens, the
      risk of coincidental ruin and the coincidental deterioration and the
      liability for the premises are transferred to

7

		
      the buyer.

	 	 
	7.02 	
      As long as the seller remains in the land register as the
      owner, the buyer is obligated to maintain the fire and extended coverage
      insurance. After the conveyance of ownership in the land register, the
      seller will inform the appropriate insurance company. The buyer is
      obligated to reimburse the seller for the insurance premium paid until the
      termination of the insurance policy concluded between the seller and the
      insurance company. Reference is made to the existing statutory regulations
      in accordance with Art. 69 ff of the Insurance Act (VVG).

	 	 
	7.03 	
      The seller assures that the object of sale including the
      buildings are not encumbered with rights from third parties (transfer of
      suretyship, liens, proviso of ownership, etc.).

	 	 
	7.04 	
      The seller is obligated to hand over documents on the
      property such as assessed value certificates, insurance confirmations,
      building plans, to the extent that they exist, to the buyer upon transfer
      of the ownership.

In case a purchase option as per No. 3 is exercised the buyer
enters into the existing rental relationship between the seller and the Aluwerk
Hettstedt GmbH and T-Mobile Deutschland GmbH. 

8.          
RIGHTS OF THE BUYER IN CASE OF DEFECTS 

8.01      General 

After the notary instructed the participants about the
differences between the agreements on properties and conditions and guarantees
as well as the statutory rights associated with them and the opportunities,
limitations and legal consequences of exclusions of liability and the assumption
of encumbrances, the participants continued. 

8.02      Assurances 

The seller assures that he is not aware of hidden defects and
that he is not maliciously concealing hidden defects. 

The seller does, however, assure that he is not aware of the
so-called co-usage rights of third parties as per the ZGB of the former GDR.

8.03      Exclusion of liability 

The buyer has inspected the object of sale. The buyer is
purchasing this in the current, used, age-related condition. The rights of the
buyer for material defects of the property and the buildings or objects
purchased are excluded except where arranged in this agreement. This also
applies for any claims for damages, unless the seller acted with intent. 

8

The current condition is that existing at the time of the
acceptance of the offer. Neither is the seller liable for defects arising after
this point in time. 

8.04      Contamination 

The seller does not vouch for the object of purchase being free
of ecological contamination, other environmental damage and hygienic burdens or
other environmentally relevant issues such as garbage or asbestos-containing
building materials (“freedom from contamination”). The freedom from
contamination is therefore not arranged or guaranteed as a characteristic. 

8.05      Notice of exemption 

	 	a) 	
      With the Notice of Exemption from the Halle Regional
      Council, the previous owner was partially exempted from the costs of the
      public-legal responsibility and private liability claims for damages which
      were caused by the operation of equipment or the use of the property prior
      to 1 July 1990 and from which a hazard for the public safety and order
      arises as well as from corresponding damage claims. The buyer is aware of
      the exemption.

	 	 	 
	 	b) 	
      With the purchase agreement dated 18 February 2002 with
      the Aluhett Aluminiumwerk GmbH, the seller assumed the rights resulting
      from the Notice of Exemption – to the extent that they were for that
      object of sale – and to the extent that these rights are transferable and
      enforceable.

	 	 	 
	 	c) 	
      The buyer will submit an application to the state agency
      for the exemption from contamination within three months of concluding the
      agreement to transfer the rights resulting from the Notice of Exemption
      from the Halle Regional Council from 18 February 1996 to the extent that
      these rights on the object of sale as per Article 1 of this agreement are
      applicable for the buyer. Should the buyer not submit this application
      within the three-month period, the seller has the right to
  withdraw.

	 	 	 
	 	d) 	
      The seller provides no guarantee that the conditions of
      the Notice of Exemption of Contamination were met; the buyer waives the
      assertion of any claims against the seller resulting from the notice
      and/or its transfer. The seller is not obligated to take any measures
      which enforce the notice or that are necessary to maintain its validity.
      The buyer has no claim of any kind against the seller or its legal
      predecessor on the basis of regulations contained in this section about
      the announcement of the Notice of Exemption of Contamination after the
      transfer of resultant rights to the buyer.

	8.06 	
      The seller assures that - with the exception of no. 8.05
      d) – there are no official conditions which have not been met and that the
      seller is not aware that the current usage contradicts public-legal
      regulations. The seller assures that the seller is not aware of building
      defects of which the buyer is not aware or which the buyer might not be
      justifiably aware of.

9

8.07      Rights and encumbrances 

a)          Encumbrances
in Section II and III of the deed 

The seller is obligated to make the property sold free of
encumbrances and restrictions in the land register, to the extent that they are
not assumed by the buyer or authorized with the buyer’s approval. The buyer
assumes the following: 

	Encumbrances in Sec. II 	No. 3 and 5 
	Encumbrances in Sec. III 	none 

The buyer does not, in any case, assume any restoration notices
entered in the land register. Should there be such a note, the buyer has the
right to withdraw from the agreement. 

b)          Building
encumbrances and easements not entered 

Building encumbrances and easements not entered in the land
register will be assumed by the buyer. The seller declares that he has not
initiated entries in the building encumbrances index and that the seller is not
aware of any building encumbrances. The participants were made aware of the
possibility to inspect the building encumbrances index. 

c)         
Contractual object in acceding territory 

The object of the agreement is located in the new German
states. In view of that fact the participants were instructed about the
particularities of real estate law in the new German states, in particular about
the possibility of the existence of in rem rights of usage, third-party building
ownership not listed in the land register and possible purchase options. The
seller is not aware of the existence of such rights. The seller, however, points
out that no investigations were conducted in this regard. 

The buyer reserves the right to withdraw from the portion of
the contract pertaining to the law of obligations by means of a written
statement in a registered letter, if the there should be ownership of the
building and/or co-usage rights to the building and equipment (“old rights”) for
the object of the agreement stemming from the former GDR law and, within a
period of three months beginning with the delivery of the announcement by the
seller to the buyer about the existence of such rights, the seller has not
achieved an agreement on a waiver or another release of encumbrance from the
holder of the old rights. The right to withdraw is granted to the buyer only if
the buyer has informed the seller of the existence of old rights within 6 months
after the effective conclusion of this agreement (effective acceptance of the
offer) and the withdrawal is stated at the latest 4 months after the delivery of
the above-mentioned announcement to the seller. 

8.08      Historical preservation 

The seller assures that he is not aware that the object of the
agreement is historically protected as per the State Historical Protection Act.
It is a matter of the buyer to establish clarity in the matter. 

10

8.09      Conditions of usage 

The object of the agreement is leased to the buyer. 

Until the effective conclusion of the agreement (acceptance of
the offer) and payment of the purchase price due, the regulations between the
parties are defined by the existing lease. 

8.10      Right of withdrawal 

In case 

	
      - 
	
      the rights from the Notice of Exemption from the Halle
      Regional Council from 16 February 1996 are not transferred to the buyer to
      the extent which these rights of the object of the sale are described in
      Art. 1 of this agreement (see No. 8.05 (c)), or 

	-	other rights or encumbrances
      exist than those listed in No. 8.07 a, 

the buyer has a right of withdrawal. The right of withdrawal
must be stated to the seller in a registered letter with return receipt. The
notary is to be informed with a copy. In case of a withdrawal, the seller will
bear the costs of this document and its execution as well as the rescinding of
the agreement. In case of a withdrawal of the agreement the buyer is obligated
to immediately delete the entries in the land register made to his benefit (and
the financing mortgaging rights authorized at his behest) at his costs. 

The right of withdrawal by the buyer in this no. 8.10 is
limited to one year beginning with the date of the effective acceptance of this
offer. 

9.          
DEVELOPMENT 

Development costs in accordance with BauGB (Building Code) or
communal fees law will be borne by the seller to the extent that the features
construction was granted up to the day of acceptance of the sales agreement,
either in part or in whole. For development facilities granted thereafter the
buyer will bear the development costs. The same is true for the communal law
reimbursement of costs for building connections and, if appropriate, the costs
of offsetting measures for nature conservation. The notary advises the
participants to inform themselves about the current status of expansion by the
community. 

The seller assures that all the assessments received to date
have been paid, including assessments about advance payments. Advance payments
already made are to be reimbursed to the seller after receipt of the final
statement to the extent that the buyer must bear the development costs as
arranged between the two parties. 

Any reimbursement claims based on assessments made are hereby
assigned to the buyer; the participants will inform the community about the
assignment themselves. To the extent that the reimbursement is not required for
the payment of the final contribution costs and to the extent that the
corresponding development costs were arranged to be borne by the buyer, the
buyer is obligated to reimburse the seller. 

11

10.          
LAND REGISTER DECLARATIONS 

Applications for the land register shall only be made by the
signing notary. The participants abstain from their own right of application.

10.01 Deletion of existing encumbrances 

The seller allows and the participants apply for the deletion
of any encumbrances entered in Sec. II and III except for the encumbrances in
Sec. II nos. 3 and 5 in accordance with 8.07 of this agreement. 

10.02 Conveyance of property 

The participants are in agreement that the ownership of the
real estate being conveyed to the buyer will be as sole proprietor and allow and
apply for the entry of the legal change in the land register. 

The notary is irrevocably instructed to apply for the
conveyance of the ownership to the buyer only when the seller has informed the
notary and confirmed this notification of the payment of the purchase price to
the account listed under 4.04 of this agreement. To that time the notary shall
distribute abridged certified copies and copies without the conveyance of
property; to that extent the participants waive their right to copies or
certified copies. The seller may attain completely certified copies. 

10.03 Non-entry of a notification of ownership 

Despite the advice by the notary about the consequences of the
non-entry of a conveyance of property to the benefit of the buyer in the land
register, the parties expressly waive the corresponding agreement. 

11.          
STIPULATIONS CONCERNING THE EXECUTION 

11.01 Obtaining the documents on the release of encumbrances

The signing notary is directed to request the release documents
in trust for the encumbrances not assumed by the buyer and to ask for the
payment of the creditors to be redeemed. The notary is not obligated to check
the payment to be redeemed. The seller is obligated to provide the necessary
documents and information. 

11.02 Statutory purchase options 

After referring to the statutory purchase options, the notary
is directed and empowered to inform the local government of the sale and to
receive the its declaration of a statutory purchase option. If and to the extent
that the exercising of a statutory purchase option, the buyer has already paid
costs and/or the purchase price, the seller assigns his payment and
reimbursement claims from the option holder to the buyer. 

In case of an exercising of a statutory purchase option, the
buyer has no rights for damages from the seller. 

12

11.03 Other permits 

The parties to the agreement empower and charge the officiating
notary or his representative to apply for and to receive any permits or other
official certificates required for this document. Permits of any kind are
considered to have been delivered to the participants when they have been
received by the officiating notary and the Land registry and take effect at that
time. Entry notification from the Land Registry will be applied for for the
participants and the notary. The accuracy of the news is to be determined by the
participants themselves. 

In case of unrestricted permission, the participants waive at
this time the delivery of the decision to them and filing of legal proceedings.

11.04 Notary’s order of execution 

The officiating notary is empowered and directed to effect the
execution of this document in the land register, in particular submit
applications for entry both individually and separately, to amend and rescind
the same to the extent that it appears recommendable to him. 

12.          
COOPERATION IN THE FINANCING 

12.01 Conditions and prerequisites for the obligation to
cooperate 

The seller obligates himself as the current owner to cooperate
in obtaining executable (Art. 800 ZPO) mortgages to the benefit of German credit
institutions. This obligation to cooperate is valid if the following conditions
are met by the participants in the certificate of appointment in the mortgage:

a)      Surety arrangement 

The creditor for the mortgage may only use or hold the mortgage
for security to the extent that payments have been made on the principle of the
purchase price by the buyer. Should the mortgage be rejected, only the deletion
may be requested, not, however, the assignment or waiver. Any other declarations
of purpose, security or usage agreements within or outside of this document are
only valid after the purchase price has been paid in full, in any case after the
conveyance of ownership. As of this time they apply for and against the buyer as
the new provider of security. When entering the mortgage, the Land Registry need
not examine if this security agreement has been made. 

b)      Payment instruction 

Payment claims are first applied with the condition that they
are used for the payment of the purchase price in accordance with the
regulations of this purchase agreement. As of now they are assigned to the
seller to the extent that the purchase price is not otherwise to be used for the
release of the property sold from encumbrances entered. When the assignment is
concluded, an irrevocable payment order will be granted. 

13

c)      Personal payment obligations,
costs 

The seller assumes no personal liability for payment in
connection with the mortgage request. The buyer is obligated to release the
seller from any costs or other consequences of requesting the mortgage. 

d)      Continuation of the mortgage

The mortgage ordered may continue to exist after the conveyance
of ownership to the buyer. All proprietary rights and rights of regression
connected with them are hereby transferred to the buyer effective as of the
payment of the purchase price, in any case as of the conveyance of the
ownership. The corresponding entry in the land register has been approved. 

12.02 Power of attorney for the buyer with respect to the
financing 

The seller herewith grants the buyer the power of attorney for
representation in all the legal proceedings. This power of attorney is only
valid if the above stipulations are in the certificate of appointment of the
mortgage. This power of attorney may only be executed by the officiating notary
or his representative or legal successor, but prior to the granting of permits
required for this document. 

The notary is instructed to only submit the application for the
entry of such mortgages when the creditor has confirmed in writing that
arrangement of suretyship and payment instruction are to be observed. 

13.          
COSTS AND COPIES 

13.01 Costs to be borne by the buyer 

The buyer bears the costs of certification of the offer and
acceptance, any permits, the execution, a continuation of the cadastre and the
tax on the acquisition of real estate. 

13.02 Costs to be borne by the seller 

The costs of the deletion of encumbrances which will not be
assumed are to be paid by the seller; any fees associated with this are also to
be paid. 

The costs of own permits will be borne by the individual party.
13.03 Copies Certified copies and duplicates of this document will be provided
to: 

	Each party to the agreement,
  
	The Land Registry, 

14

Simple copies : 

	Real estate acquisition tax office
  
	The expert committee
  
	The local government
  
	The former creditors of the seller,
  
	The financing creditors of the buyer. 

14.          
INSTRUCTIONS FROM THE NOTARY 

14.01 Certification obligation, invalidity, pending
nullification 

Uncertified arrangements are not effective and in general lead
to the invalidity of the entire agreement, the priority notification in this
case does not represent an assurance. For that reason the purchase price and any
other arrangements must be properly and completely certified. 

The contract may remain pending until all the permits required
have been provided. 

14.02 Conveyance of ownership 

The ownership of the property is only transferred to the buyer
with the conveyance in the land register; this can only occur in accordance with
the agreement if the tax clearance statement for the property acquisition tax
and the other permits and releases required are available; till that time it may
be difficult to obtain a loan on the mortgage. 

14.03 Liability for the property 

The owner is liable for any encumbrances in the land register
up to the time of release as well as for development fees, fees charged by the
Communal Fee Act and arrears for pubic encumbrances and all participants may be
jointly liable for property acquisition taxes. 

14.04 

In particular the notary instructed those present about the
following: 

	- 	
      that the notary assumes no liability with regard to the
      fiscal (including value- added tax) consequences of the agreement,
  

	- 	
      that providing the purchase price and any loans which
      serve the payment of the purchase price, including the legal prerequisites
      for the securing of the loan are the business of the buyer and the notary
      is not officially obligated in any way in this matter, 

	- 	
      that the financing of the purchase price might require
      that a mortgage be ordered immediately, otherwise the buyer may fall into
      arrears, 

	- 	
      about the importance of the subjugation of the immediate
      foreclosure and the exclusion of liability of the seller, 

	- 	
      that the participants are jointly and severally liable
      for taxes, notary and court costs, regardless of the arrangements made
      internally in this agreement. 

15

15.          
OTHER POWER OF ATTORNEY TO THE BUYER 

The seller grants the buyer, along wit the power of attorney
prior to the conveyance of the ownership, with the right to issue sub-powers of
attorney and free of the restrictions of Art. 181 German Civil Code: 

	a) 	
      to submit and apply for building applications at the
      responsible authorities,

	 	 
	b) 	
      to apply for an urban planning clearance

	 	 
	c) 	
      to obtain the soil analysis and to perform any
      preparatory measures required for erecting or modification buildings and
      to have the property officially surveyed.

16.          
POWER OF ATTORNEY FOR NOTARY EMPLOYEES 

At the express wish of the participants, those appearing do
hereby empower , in the name of their legal successors as well, the notary
employees Antje Maiwald, Nadine Michael and Ilka Seidel, business residence at
the seat of the officiating notary, individually and with the permission to
represent solely, free of the restrictions of Art. 181 German Civil Code, to
submit and receive declarations in connection with the above agreement, to the
extent that this is required for the execution of the agreement and, if needed,
its reversal. 

The power of attorney also covers the ordering of mortgages,
including the personal subjugation of the buyer with the immediate foreclosure
to the benefit of the credit institution financing the purchase price as well as
the in rem subjugation to foreclosure of the specific owner, the change of the
ranking conditions and the approval and withdrawal of applications and approvals
of any kind for the Land Registry to the extent that this is necessary for the
proper execution of this agreement. The power of attorney does not cover a
personal obligation of debt to the encumbrance of the seller. 

The issuer of the power of attorney has been expressly informed
by the notary of 

	-	
      The special confidential character of the above power of
      attorney; 

	- 	
      The scope of the personal and property liability as a
      result of the mortgage, the debt obligation, and the debt acceptance and
      the subjugation to the immediate foreclosure; 

	- 	
      Of the fact that the mortgage and acceptance of debt
      justify at any time enforceable claims by the creditor with regard to the
      nominal sum of the mortgage including interest, which generally exceed the
      claims of the creditor; the scope is stipulated by a statement of
      appropriation. 

The mortgage and personal acceptance of debt serve the security
of the bank and have the consequence that the liability for the repayment of the
loan along with interest is related not only to the real estate financed but to
the liability of the buyer with his personal assets. 

The power of attorney granted here is a trustee power of
attorney. It is revocable at any time and expires automatically with the end of
the processing of the agreement in the land register. 

16

17.          
OTHER STIPULATIONS 

The following stipulations apply for all the following sections
of this agreement: 

	17.01 	
      Appendices. All appendices are a component of this
      agreement. The parties agreed to waive the reading of Appendix
2.

	 	 
	17.02 	
      Separability clause. Should any individual provision or
      any part of any provision be or become void, illegal or unenforceable, the
      validity of the remaining provisions hereof shall in no way be affected.
      In such case the void and/or illegal and/or unenforceable provision or
      provisions shall be replaced by relative provisions coming as close as
      possible to the sense and spirit and purpose of this agreement.

	 	 
	17.03 	
      Signatures. The signatures in this agreement serve solely
      for improved orientation and are not to be used for purposes of
      interpretation.

	 	 
	17.04 	
      Changes. Subsequent changes and amendments including the
      reversal of the agreement must be made in writing, if a stronger form is
      not required. The subsequent change of this requirement for the written
      form also must be made in writing.

	 	 
	17.05 	
      This agreement contains the following
  appendices:

	 	A) 	
      Appendix 1: Map (section of the cadastral plan)

	 	B) 	
      Appendix 2: Index of machinery and equipment

	 	C) 	
      Appendix 3: Description of the quarto rolling
  mill

	 	D) 	
      Appendix 4: Map (section of the cadastral
  plan)

	17.06 	
      Jurisdiction for any disputes arising from this agreement
      is the city in which the tenderer/seller has its
  headquarters.

 

The transcript along with Appendix 3 has been read to the
participants by the officiating notary, the maps (appendices 1 and 4) presented
for inspection, Appendix 2 presented for information, approved by them with all
the modifications, deletions and additions and signed by them and the notary as
follows in their own hand. 

Signatures [illegible] 

[Stamp of Peter Krolopp Notary in Magdeburg] 

17

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