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                                                                EXHIBIT 10 (xxx)

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                            ASSET PURCHASE AGREEMENT

                                  BY AND AMONG

                SHANDONG CHENGSHAN TIRE COMPANY LIMITED BY SHARES

                                       AND

                COOPER CHENGSHAN (SHANDONG) TIRE COMPANY LIMITED

                                       AND

                         CHENGSHAN GROUP COMPANY LIMITED

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                      <C>
ARTICLE 1      DEFINITIONS AND INTERPRETATIONS........................    2

ARTICLE 2      SALE AND PURCHASE OF PURCHASED ASSETS...................   2

ARTICLE 3      PURCHASE PRICE..........................................   5

ARTICLE 4      ASSIGNMENT OF CONTRACTS AND RIGHTS......................   5

ARTICLE 5      CONDITIONS.............................................    6

ARTICLE 6      ACTION PENDING CLOSING.................................    8

ARTICLE 7      CLOSING...............................................    11

ARTICLE 8      NOTICE OF SALE OF THE PURCHASED ASSETS................    13

ARTICLE 9      WARRANTIES.............................................   13

ARTICLE 10     INDEMNIFICATION.......................................    26

ARTICLE 11     GUARANTEE AND INDEMNITY BY GUARANTOR..................    28

ARTICLE 12     FORCE MAJEURE.........................................    29

ARTICLE 13     CONFIDENTIALITY.......................................    29

ARTICLE 14     GOVERNING LAW.........................................    30

ARTICLE 15     DISPUTE RESOLUTION....................................    30

ARTICLE 16     MISCELLANEOUS PROVISIONS..............................    31

SCHEDULE 1     DEFINITIONS AND INTERPRETATION........................    34
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This ASSET PURCHASE AGREEMENT (this "AGREEMENT") is made and entered into in the
People's Republic of China ("CHINA" or "PRC") on this 27th day of October, 2005,
in accordance with the PRC Tentative Regulations Regarding Merger with and
Acquisition of Domestic Enterprises by Foreign Investors (the "M&A REGULATIONS")
and other applicable PRC laws and regulations, pursuant to the principles of
equality and mutual benefit, by and among:

SELLER:      SHANDONG CHENGSHAN TIRE COMPANY LIMITED BY SHARES, a company
             limited by shares registered and incorporated under the laws of
             the PRC, with itsregistered address at No. 98, Nanshan Road North,
             Rongcheng City, Shandong Province, PRC;

PURCHASER:   COOPER CHENGSHAN (SHANDONG) TIRE COMPANY LIMITED, a Sino-foreign
             limited liability company registered and incorporated under the
             laws of the PRC, with its registered address at No. 98, Nanshan
             Road North, Rongcheng City,Shandong Province, PRC; and

GUARANTOR:   CHENGSHAN GROUP COMPANY LIMITED, a limited liability company
             registered and incorporated under the laws of the PRC, with its
             registered address at No. 98, Nanshan Road North, Rongcheng City,
             Shandong Province, PRC.

(Each of Seller, Purchaser and Guarantor is hereinafter individually referred to
as a "PARTY" and collectively as the "PARTIES".)

RECITALS:

(A)   Seller is the lawful owner of the Purchased Assets as set out in this
      Agreement and lawful party to the Contracts in connection with the TTR
      Business of Seller.

(B)   In accordance with a Sino-foreign equity joint venture contract executed
      on the date as of October 27, 2005 among the Seller and Cooper Tire
      Investment Holding (Barbados) Ltd. and Joy Thrive Investments Limited ("JV
      CONTRACT"), Seller has agreed to contribute the Owned Properties as set
      out in this Agreement to the Purchaser as its capital contribution, in
      exchange for a thirty five percent (35%) equity interest in the Purchaser.

(C)   In accordance with the JV Contract, the Seller agrees to sell the
      Purchased Assets (other than the Owned Properties contributed to the
      Purchaser in accordance with the JV Contract) to the Purchaser upon the
      duly establishment of the Purchaser.

(D)   In accordance with the terms and conditions of this Agreement, the
      Purchaser wishes to purchase and the Seller wishes to sell and transfer
      the Purchased Assets and Contracts, with the Purchaser's assumption of the
      Assumed Liabilities as at the Closing Date as specified herein, so as to
      accomplish the goal of transferring the TTR Business of Seller to
      Purchaser for continuous operation (hereinafter "TRANSACTION").

(E)   The Guarantor, which owns 73.76% equity interests of the Seller, agrees to
      provide a joint and several guarantee for all of the obligations of the
      Seller under this Agreement.

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THE PARTIES HEREBY AGREE AS FOLLOWS:

                    ARTICLE 1 DEFINITIONS AND INTERPRETATIONS

1.1   Unless the terms or context of this Agreement provide otherwise,
      capitalized terms used herein without definition have the meanings
      assigned to them in Schedule 1 as attached to this Agreement.

1.2   In this Agreement, save where the context otherwise requires:

      1.2.1 words in the singular shall include the plural, and vice versa;

      1.2.2 a reference to a person shall include a reference to a firm, a body
            corporate, an unincorporated association or to a person's executors
            or administrators;

      1.2.3 a reference to an Article, sub-article, Schedule and Exhibit shall
            be a reference to an Article, sub-article, Schedule and Exhibit (as
            the case may be) of or to this Agreement;

      1.2.4 if a period of time is specified and commences from a given day or
            the day of an act or event, it shall be calculated inclusive of that
            day;

      1.2.5 references to writing shall include any modes of reproducing words
            in a legible and non-transitory form;

      1.2.6 a reference to a balance sheet or profit and loss account shall
            include a reference to any note forming part of it;

      1.2.7 the obligations and liabilities of the Seller and Guarantor
            hereunder are the joint and severally obligations and liabilities of
            the Seller and Guarantor;

      1.2.8 references to this Agreement include this Agreement as amended or
            supplemented in accordance with its terms.

1.3   The designations adopted in the recitals and introductory statements
      preceding this Article apply throughout this Agreement and the Schedules.

                 ARTICLE 2 SALE AND PURCHASE OF PURCHASED ASSETS

2.1   The Purchaser, relying on the agreements, covenants, representations,
      warranties, undertakings and indemnities of the Seller herein, hereby
      agrees to purchase from the Seller and the Seller as legal and/or
      beneficial owner hereby agree to sell to the Purchaser on the Closing Date
      free and clear of all Encumbrances, assets, properties and rights related
      to the TTR Business of every kind and description, wherever located, real,
      personal or mixed, owned, held or used in the conduct of the TTR Business
      by Seller as the same shall exist at the Closing Date, including those
      assets of the TTR Business shown on the Management Accounts and not
      disposed of in the ordinary course of business (but excluding the Owned
      Properties) and those assets of the TTR Business thereafter acquired by
      the Seller (the "PURCHASED ASSETS"), and including, subject to the

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      limitations in Article 2.4, all rights, title, benefits and interests of
      the Seller in, to and under such of the foregoing as are more specifically
      described below:-

      2.1.1 all customer accounts of the Seller relating to the TTR Business,
            all customer mailing and prospect lists of the Seller relating to
            the TTR Business, and all of the Seller's rights to service the
            customer accounts of the TTR Business;

      2.1.2 all the Properties relating to the TTR Business together with all
            buildings, fixtures, and improvements erected thereon (except for
            those Owned Properties injected by the Seller as its capital
            contribution in accordance with the JV Contract);

      2.1.3 all vehicle, machinery, equipment, furniture and computer relating
            to the TTR Business (together with all the data stored therein);

      2.1.4 all claims, benefits, rights and entitlements under the Lease(s),
            Insurances and all contracts, contract rights, agreements, licenses,
            commitments, sales and purchase orders and other instruments
            (whether uncompleted or pending) relation to the TTR Business and
            the Purchased Assets, as wholly and fully disclosed to the Purchaser
            by the Seller (collectively, the "CONTRACTS") including all deposits
            or progress payments received prior to the Closing Date in respect
            of the same;

      2.1.5 accounts, notes, receivables and other amounts owing to the Seller
            by trade debtors in connection with the TTR Business in respect of
            goods or services supplied by the Seller (whether or not invoiced or
            which are only payable upon completion of the outstanding work/stage
            of work under the Contracts at Closing Date) and the benefit of all
            guarantees or other security in respect thereof (collectively the
            "ACCOUNTS RECEIVABLE");

      2.1.6 prepaid expenses and deposits in connection with the TTR Business,
            including, without limitation, ad valorem taxes, leases and rentals;

      2.1.7 Seller's rights, claims, credits, causes of action or rights of
            set-off against third parties relating to the TTR Business and the
            Purchased Assets, including, without limitation, unliquidated rights
            under manufacturers' and Seller' warranties;

      2.1.8 claims and rights (if any) under all franchises, transferable
            licenses, including, but not limited to, licenses, permits,
            consents, authorizations, certificates and approvals of any
            governmental agency or other governmental authorizations affecting,
            or relating in any way to, the TTR Business;

      2.1.9 all books, records, files and papers, whether in hard copy or
            computer format, including, without limitation, sales and
            promotional literature, manuals and data, sales and purchase
            correspondence, lists of present and former suppliers, lists of
            present and former customers, personnel and employment records, and
            any information relating to taxes imposed on the Purchased Assets;

      2.1.10 other properties and assets owned by the Seller and used in
            connection with the TTR Business at the Closing Date (wherever
            located).

2.2 Required Consent

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      2.2.1 Where the Seller is unable to transfer to the Purchaser a Contract
            on the Closing Date because consent from the relevant party to the
            Contract (other than the Seller) for such transfer has not been
            obtained on or before that date, without prejudice to Article 4.4
            the Seller shall use its best endeavors to obtain such consent and
            transfer the full benefit and legal right under such Contract to the
            Purchaser within 90 days from the Closing Date.

      2.2.2 The Purchaser shall use its best endeavors to assist the Seller in
            obtaining the consent for the purpose of Article 2.2.1. Without
            prejudice to Article 4, the Purchaser may at its absolute discretion
            waive any of the requirements under Article 2.2.1.

2.3 Assumption of Liabilities

      2.3.1 Without prejudice to the provisions in Article 2.3.2, the Purchaser
            shall assume the transferable liabilities incurred by the Seller in
            connection with the TTR Business and identified by the Purchaser and
            stated on the balance sheet of the Seller dated as of the Closing
            Date (the "ASSUMED LIABILITIES").

      2.3.2 Except as otherwise contained in Article 2.3.1 above or as otherwise
            agreed by the Parties in writing, the Seller shall remain liable for
            and the Purchaser shall not assume any other liabilities incurred by
            the Seller in connection with the TTR Business or the Purchased
            Assets and any other claims arising from the operation of the TTR
            Business prior to the Closing Date. The Seller shall promptly pay
            and discharge in full all liabilities and claims referred to in this
            Article 2.3.2, which may adversely impact the normal operation of
            the Purchaser, to the extent practicable and as soon as practicable
            after the Closing Date in all other cases, but in no event later
            than sixty (60) days from the Closing Date.

2.4      Limitations

      2.4.1 Those Owned Properties injected by the Seller as its capital
            contribution in accordance with the JV Contract shall be excluded
            from the Purchased Assets.

      2.4.2 On or after the Closing Date, Seller will retain the ownership of
            certain inventories sufficient to liquidate the duty and value-added
            tax (VAT) exempt importations of raw materials that shall be owned
            by Seller as of the Closing Date.

      2.4.3 On or after the Closing Date, Seller shall retain the ownership of
            the working capital assets and liabilities (the "NET WORKING
            CAPITAL") to the extent that the net of the retained assets less the
            retained liabilities (including those specified in Article 2.4.2
            above) will not exceed the net change in Net Working Capital between
            December 31, 2004 and the Closing Date.

      2.4.4 The net of the Purchased Assets less the Assumed Liabilities shall
            not result in the amount of the Purchaser's assumption of debt that
            will cause the excess of the permitted total investment of the
            Purchaser stated in the JV Contract.

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                            ARTICLE 3 PURCHASE PRICE

3.1   As consideration for the purchase of the Purchased Assets, in reliance
      upon the representations and warranties, covenants, agreements and
      undertakings of the Seller made herein, and subject to the terms and
      conditions of this Agreement, the Purchaser shall pay to the Seller, the
      sum equivalent to the excess of the Purchased Assets over the Assumed
      Liabilities in United States Dollars (the "PURCHASE PRICE") (determined by
      reference to the appraisal value of the Purchased Assets) within three (3)
      months of the issuance of the Business License of the Purchaser.

3.2   If any liabilities, save to extent the Assumed Liabilities in Article 3.1,
      cannot be transferred to the Purchaser due to any reason arising out of
      legal proceedings or approval procedures, the Purchased Assets described
      in Article 3.1 shall be reduced proportionately.

3.3   Without prejudice to any other remedies available to the Purchaser, in the
      event that the Seller is in material breach of this Agreement or the JV
      Contract ("DEFAULT") before the full amount of the Purchase Price has been
      paid under this Article 3, at the discretion and request of the Purchaser,
      the Seller shall forthwith cease to have any right to receive and the
      Purchaser shall cease to have any further obligation to pay any remaining
      balance of the Purchase Price to the Seller, and the Seller shall refund
      the amount of the Purchase Price, which has been paid by the Purchaser
      immediately preceding the occurrence of the Default, to the Purchaser
      within five (5) days from demand by the Purchaser.

3.4   If the Purchaser fails to pay the Purchase Price within the period set
      forth in Article 3.1 (the amount due and owing is referred to as the
      "DEFAULT PAYMENT"), the Purchaser shall pay to the Seller a default
      penalty of 0.05% per day based on the Default Payment from the first day
      of the default until the day on which the Default Payment is fulfilled in
      full by the Purchaser.

                  ARTICLE 4 ASSIGNMENT OF CONTRACTS AND RIGHTS

4.1   Seller agrees to assign or cause to be assigned to the Purchaser as of the
      Closing Date, all of the rights of the Seller under the Contracts that are
      assignable without license, consent, agreement, approval or waiver of any
      third party or as to which consent has been obtained and, without
      prejudice to Article 4.6, the Purchaser shall assume all obligations of
      the Seller thereunder which will arise after the Closing Date.

4.2   This Agreement shall not constitute an agreement to assign any Purchased
      Asset, Contract, or any claim, right or any benefit arising thereunder or
      resulting therefrom if an attempted assignment thereof, without license,
      consent, agreement, approval or waiver of a third party, would constitute
      a breach or other contravention thereof or in any way adversely affect the
      rights of the Purchaser thereunder and such consent cannot be obtained by
      the Seller.

4.3   If any licenses, consents, agreements, approvals or waivers from third
      parties are required for the transfer, assignment or novation to or in
      favour of the Purchaser of any Contracts under this Agreement, the Seller
      shall use its best efforts (but without requiring any payment of money by
      the Purchaser) to obtain such licenses, consents, agreements,

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      approvals or waivers from the other parties or claim any right or any
      benefit arising thereunder for the assignment thereof to the Purchaser as
      the Purchaser may request.

4.4   If such license, consent, agreement, approval or waiver is not obtained,
      or if an attempted assignment thereof would be ineffective or would
      adversely affect the rights of the Seller thereunder so that Purchaser
      would not in fact receive or otherwise be entitled to the full benefit of
      all such rights, the Seller (i) shall enter into such arrangement with the
      Purchaser at the Purchaser's direction under which the Purchaser will
      obtain the benefits and assume the obligations thereunder in accordance
      with this Agreement, or under which the Seller would exercise for the
      benefit of the Purchaser, with the Purchaser assuming Seller's
      obligations, any and all rights of the Seller against a third party
      thereto in accordance with the applicable PRC laws and regulations. The
      Seller shall promptly pay to the Purchaser when received all monies
      received by the Seller under any Purchased Asset, Contracts, or any claim,
      right or any benefit arising thereunder; or (ii) shall exercise or cause
      to be exercised, at the Purchaser's direction, any rights of the Seller
      arising from such Contracts against the other party(ies) thereto,
      including the right to elect to terminate any such Contracts in accordance
      with the terms thereunder upon the request of the Purchaser.

4.5   The foregoing provisions do not affect Purchaser's rights and remedies
      against the Seller in respect of a Contract which has been warranted to be
      assignable, or may be performed by Purchaser instead of the Seller without
      any novation or transfer agreement.

4.6   Except as otherwise expressly contained herein, nothing in this Agreement:

      4.6.1 shall require the Purchaser to perform any obligation falling due
            for performance or which should have been performed before the
            Closing Date;

      4.6.2 shall make the Purchaser liable for any act, neglect, default or
            omission in respect of any Contracts or for any claim, expense, loss
            or damage arising from any failure to obtain the consent or
            agreement of any third party to the entry into of this Agreement or
            from any breach of any of the Contracts caused by this Agreement or
            its Closing; or

      4.6.3 shall impose any obligation on the Purchaser for or in respect of
            any goods supplied by the Seller or any service performed by the
            Seller.

4.7   The Seller shall indemnify the Purchaser against all actions, proceedings,
      costs, damages, claims and demands in respect of:

      4.7.1 any act or omission on the part of the Seller in relation to the
            Contracts; or

      4.7.2 any alleged fault, defect or error of any kind arising from goods
            supplied, services provided by the Seller or otherwise arising from
            the operation of the TTR Business prior to the Closing Date.

                              ARTICLE 5 CONDITIONS

5.1   Conditions Precedent

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      Closing is conditional upon satisfaction of the following conditions prior
      to the Closing Date:

      5.1.1 Seller's completion of the capital contribution in accordance with
            the JV Contract, with the contribution having been verified by a PRC
            registered accountant;

      5.1.2 the completion of satisfactory (in Purchaser' sole and discretionary
            judgment) legal, commercial, human resources, taxation and financial
            due diligence on the Seller;

      5.1.3 the completion of any formal internal corporate approvals as may be
            required by the Purchaser including approval by the board of
            directors of each of the Purchaser, Seller and Guarantor and
            approval by the shareholders assembly of Seller;

      5.1.4 Seller's publication of the notice and announcement of transfer
            relating to the sale of the Purchased Assets within not more than 10
            days from the date on which the Seller's board of directors and/or
            shareholders assembly have approved the sale of the Purchased Assets
            in compliance with the provisions of the M&A Regulations;

      5.1.5 any and all Claims notified to Seller or Purchaser pursuant to the
            notice published pursuant to the relevant assets transfer
            legislation applicable in China as set forth in Article 8 have been
            paid in full or otherwise settled to the satisfaction of the
            Purchaser. The Seller having confirmed to the Purchaser in writing
            that it has had no further Claims in writing notified to it in
            response to the notices served by it under the relevant assets
            transfer legislation applicable in China, other than those Claims
            which have been paid, compromised, defended or otherwise dealt with
            subject to the prior consent of, and to the satisfaction of the
            Purchaser;

      5.1.6 the parties to the Contracts (other than the Seller) having given
            their respective consents if required to the assignments or
            novations of the same in favour of the Purchaser;

      5.1.7 the Seller have certified in writing:

            (i)   there having occurred no Material Adverse Change in the period
                  between the date of this Agreement and Closing;

            (ii)  nothing having occurred or been omitted which is, or had it
                  occurred or been omitted on or before the date of this
                  Agreement would have constituted, a breach of the Warranties;

            (iii) no order or judgment of any court or governmental, statutory
                  or regulatory body having been issued or made prior to
                  Closing, which has the effect of making unlawful or otherwise
                  prohibiting the purchase of the Purchased Assets by the
                  Purchaser;

            (iv)  the Seller having performed or complied with, in all material
                  respects, all covenants, obligations and agreements
                  contemplated by this Agreement

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                  to be performed or complied with by it at or prior to Closing,
                  including without limitations those set forth in Article 5.

      5.1.8 any and all approvals, consents, registrations and permissions
            necessary for or to the best benefit of the Transaction contemplated
            hereby having been duly obtained from the appropriate government
            authorities, including, without limitation, approval of this
            Agreement, approval of the employment settlement plan of Seller, and
            approval of the transfer of "bonded" equipment from Seller to
            Purchaser.

      5.1.9 all corporate and other proceedings and actions taken in connection
            with the Transaction contemplated hereby and all certificates,
            opinions, agreements, instruments, release and documents referenced
            herein, or incident to the Transaction contemplated hereby, being in
            form and substance satisfactory to Purchaser.

5.2   Responsibility for Satisfaction

      Without prejudice to the foregoing, it is agreed that all requests and
      enquiries from any government, governmental, trade agency, court or
      regulatory body shall be dealt with by the Seller and the Purchaser in
      consultation with each other and each of the Seller and the Purchaser
      shall promptly co-operate with and provide all necessary information and
      assistance reasonably required by such government, agency, court or body
      upon being requested to do so by the other.

5.3 Non-Satisfaction

      5.3.1 If any of the conditions in Article 5.1 is not satisfied or waived
            by the Purchaser within 6 months after the execution of the
            Agreement such other date as the Purchaser and Seller may agree or
            the Purchaser becomes aware of any fact that would prevent any of
            the conditions in Article 5.1 from being satisfied, the Purchaser
            may, in its sole discretion, by written notice to the Seller,
            terminate this Agreement and no Party shall have any claim against
            any other under it, save for any claim arising from any antecedent
            breach (including breach of any undertaking contained in Article
            5.1).

      5.3.2 In the event that the Purchaser shall terminate this Agreement in
            accordance with Article 5.3.1, and without limiting the Purchaser's
            right to claim all obligations of the Seller under this Agreement,
            the Purchaser shall, unless otherwise expressly stated, cease to
            enjoy and assume all rights and liabilities hereunder, but, for the
            avoidance of doubt, all rights and liabilities of the Parties which
            have accrued before termination shall continue to exist.

                        ARTICLE 6 ACTION PENDING CLOSING

6.1   Seller's General Obligations

      The Seller undertakes to procure that from the date of this Agreement
      until Closing:

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      6.1.1 the Seller will carry on TTR Business only in the ordinary and usual
            course and in the manner and scope carried on as at the date of this
            Agreement, save insofar as agreed in writing by the Purchaser;

      6.1.2 the Purchaser and its agents will, upon reasonable notice, be
            allowed access to the employees and premises of the Seller and shall
            also be allowed access to, and to take copies of, the books and
            records of the Seller, the TTR Business and the Purchased Assets
            including, without limitation, the statutory books, minute books,
            leases, licences, contracts, details of receivables, tax records,
            supplier lists and customer lists in the possession or control of
            the Seller;

      6.1.3 such representatives and advisers as the Purchaser requests may be
            designated to work with the Seller with regard to the management and
            operations of the TTR Business. The Seller will consult with such
            representatives and advisers with respect to any action which may
            materially affect the TTR Business of the Seller taken as a whole.
            The Seller will furnish to such representatives and advisers such
            information as it may reasonably request for this purpose;

      6.1.4 the Seller shall take all reasonable steps to preserve its property
            and assets in relation to the TTR Business (including the Purchased
            Assets) and, shall notify the relevant insurance companies of the
            interest of the Purchaser in the Insurances and shall procure that
            with effect from the Closing Date the interest of the Purchaser
            therein is noted on the relevant Insurance policies;

      6.1.5 the Seller shall promptly provide to the Purchaser monthly
            Management Accounts in the usual form.

6.2   Restrictions on the Seller

      Without prejudice to the generality of Article 6.1, the Seller shall not
      between the date of this Agreement and Closing (except as may be expressly
      provided in this Agreement) without the prior written consent of the
      Purchaser:

      6.2.1 enter into or amend any contract or commitment in relation to the
            TTR Business: (i) which is not capable of being terminated without
            compensation at any time with one months' notice or less; or (ii)
            which is not in the ordinary and usual course of business and on
            arms' length terms or (iii) which involves or may involve total
            revenue or total expenditure in excess of US$500,000 (excluding
            purchase contracts for raw materials);

      6.2.2 incur any indebtedness in relation to the TTR Business otherwise
            than in the ordinary and usual course of business;

      6.2.3 save as required by law, make any amendment to the terms and
            conditions of employment (including, without limitation,
            remuneration, pension entitlements and other benefits) of any
            employee or consultants engaged in the TTR Business, provide or
            agree to provide any gratuitous payment or benefit to any such
            person or any of their dependants, or dismiss or terminate (except
            with good cause) the engagement of any such person or engage or
            appoint any additional employee in relation to the TTR Business;

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      6.2.4 acquire or agree to acquire or sell, transfer, lease, assign or
            dispose of or agree to sell, transfer, lease, assign or dispose of
            any material asset or material stocks or enter into or amend any
            material contract or arrangement in relation to the TTR Business;

      6.2.5 sell, convey, lease, assign or otherwise transfer or dispose of any
            interest in any debts or factor any notes or amounts receivable in
            relation to the TTR Business;

      6.2.6 delay making payment to any trade creditors of the TTR Business
            generally beyond the date on which payment of the relevant trade
            debt should be paid in accordance with credit periods authorised by
            the relevant creditors (or (if different) the period extended prior
            to the date of this Agreement by creditors in which to make
            payment);

      6.2.7 amend, to any material extent, any of the terms on which goods,
            facilities or services in relation to the TTR Business are supplied,
            such supplies being material in the context of the TTR Business,
            except where required to do so in order to comply with any
            applicable legal or regulatory requirement;

      6.2.8 enter into any guarantee, indemnity or other agreement to secure any
            obligation of a third party or create or agree to create any
            Encumbrance over any of its assets or undertaking in relation to the
            TTR Business (including the Purchased Assets);

      6.2.9 amend or discontinue any insurance contract in relation to the TTR
            Business or the Purchased Assets, fail to notify any insurance claim
            in accordance with the provisions of the relevant policy or settle
            any such claim below the amount claimed;

      6.2.10 acquire or agree to acquire any share, shares or other interest in
            any company, partnership or other venture or incorporate any
            subsidiary in relation to the TTR Business;

      6.2.11 make any change to its accounting practices or policies or
             accounting reference date or amend its articles of association (or
             equivalent constitutional documents);

      6.2.12 make any substantial change in the nature or organisation of its
             TTR Business;

      6.2.13 discontinue or cease to operate all or a material part of the TTR
             Business or resolve to be wound up;

      6.2.14 change its residence for Taxation purposes;

      6.2.15 commence, compromise or discontinue any legal or arbitration
             proceedings in relation to the TTR Business (other than in respect
             of the collection of debts which are not material in the context of
             the TTR Business in the ordinary and usual course of business); or

      6.2.16 acquire or agree to acquire or dispose of or agree to dispose of
             any land use rights or leasehold interest in land in relation to
             the TTR Business.

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6.3   Covenant to Pay

      The Seller covenant to pay to the Purchaser an amount equal to the Losses
      suffered or incurred by the Purchaser or, subject to Closing, through the
      Seller's failure or delay in complying with the provisions of Articles 6.1
      and 6.2.

6.4   Exercise of Purchaser's Rights

      It is hereby acknowledged (for the avoidance of doubt) that none of the
      provisions of this Article 6 or the exercise or failure to exercise by the
      Purchaser of its rights thereunder, shall give rise to any liability on
      the part of the Purchaser or any of its employees, consultants or
      representatives or any person connected with it.

                                ARTICLE 7 CLOSING

7.1   Closing shall take place at the offices of the Seller or such other place
      as the Purchase and Seller may agree, on the Closing Date.

7.2   On the Closing Date:

      7.2.1 the Seller shall deliver or cause to be delivered to the Purchaser:

            (i)   such conveyances, assurances, transfers, assignments,
                  releases, novation agreements, consents and other documents
                  duly executed by the relevant parties as the Purchaser may
                  require to vest in the Purchaser the full benefit of and legal
                  title to the Purchased Assets and all other rights and assets
                  hereby agreed to be sold and the full benefit of this
                  Agreement and all liabilities and debts agreed to be assumed
                  including without limitation;

                  (a)   duly executed assignments in the Agreed Form of the
                        Accounts Receivable;

                  (b)   duly executed assignments or novation agreements in the
                        Agreed Form of the Contracts;

                  (c)   duly executed assignments in the Agreed Form of the
                        Accounts Payable;

                  (d)   duly executed assignments or novation agreements in the
                        Agreed Form of the Borrowings;

                  (e)   in respect of each of the motor vehicles used in the TTR
                        Business owned by the Seller (if any), the prescribed
                        notice and the vehicle registration documents (and shall
                        deliver or procure delivery of a duplicate of the
                        prescribed notice to the relevant transportation
                        authorities in China as soon as possible after Closing);

            (ii)  the title deeds and documents relating to the Leased
                  Properties and Owned Properties occupied or owned by the
                  Seller (all re-registered in the name of the Purchaser);

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<PAGE>

            (iii) all subsisting contracts, license and permits in connection
                  with the TTR Business and all books, papers, records and other
                  documents (including financial records) relating to the TTR
                  Business and Purchased Assets and all lists of customers and
                  suppliers and other information or documents in relation to
                  the TTR Business as the Purchaser may require;

            (iv)  all the designs and drawings, plans, technical and sales
                  publications, advertising material, brochures, catalogues and
                  other technical and sales matter of the Seller in relation to
                  the TTR Business together with any plates, blocks, negatives
                  and other like material relating thereto as the Purchaser may
                  require;

            (v)   any other documents of title relating to any of the other
                  Purchased Assets as the Purchaser may require;

            (vi)  such other documents as may be required to give to the
                  Purchaser good title to the Purchased Assets and to enable the
                  Purchaser or its nominees to become the registered owner
                  thereof as the Purchaser may require; and

            (vii) certificate in writing duly executed by the Seller pursuant to
                  Article 5.1.7 confirming the matters mentioned thereunder.

      7.2.2 the Seller shall permit the Purchaser to take possession of the TTR
            Business and Purchased Assets.

7.3   Upon Closing, the Seller shall deliver to the Purchaser a copy of the
      resolution of the shareholders assembly of the Seller approving and
      authorizing the transfer of the Purchased Assets hereunder and all the
      transactions contemplated hereby, and such resolution shall be in form and
      substance in accordance with the applicable laws and regulations.

7.4   Within three (3) months upon compliance by the Seller with the provisions
      of Articles 7.2.1 and 7.2.2 the Purchaser will pay the Purchase Price to
      the Seller in accordance with Article 3.

7.5   Without prejudice to any other remedies available to the Purchaser, if in
      any respect the provisions of Article 7.2 are not complied with on the
      Closing Date the Purchaser may:

      7.5.1 defer Closing to a date not more than thirty (30) days after the
            Closing Date (and so that the provisions of this Article 7.5 shall
            apply to Closing as so deferred); or

      7.5.2 proceed to Closing so far as practicable (without prejudice to its
            rights hereunder); or

      7.5.3 terminate this Agreement, and without limiting the Purchaser's right
            to claim all obligations of the Seller under this Agreement, the
            Purchaser shall, unless otherwise expressly stated, cease to enjoy
            and assume all rights and liabilities hereunder, but, for the
            avoidance of doubt, all rights and liabilities of the Parties which
            have accrued before termination shall continue to exist.

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                ARTICLE 8 NOTICE OF SALE OF THE PURCHASED ASSETS

The Seller shall, within not more than 10 days from the date on which Seller's
board of directors and/or shareholders assembly have approved the sale of the
Purchased Assets pursuant to this Agreement, give notice to its creditors and
release public announcement of the sale of the Purchased Assets contemplated
under this Agreement in accordance with the provisions of the M&A Regulations
and the publication costs of such notifications shall be borne by the Seller.
The Purchaser and the Seller shall notify each other as soon as practicable in
the event of any Claim being received by any of them pursuant to such
notification. Any such notice given shall be without prejudice to the rights and
obligations of the Parties, as against each other, under this Agreement.

                              ARTICLE 9 WARRANTIES

The Seller warrants, represents and undertakes to the Purchaser as to the
matters set forth hereunder:

9.1   General Warranties

      9.1.1 The Accounts and Management Accounts:

            Except as otherwise disclosed to the Purchaser:

            (i)   have been prepared in accordance with Chinese GAAP;

            (ii)  are accurate and show a true and fair view of the affairs of
                  the Seller and the TTR Business as at the specified accounting
                  date and of its results for the accounting reference period
                  ended on that date, with the Management Accounts having been
                  properly prepared in a manner consistent with that adopted in
                  the preparation of the management accounts of the TTR Business
                  for all periods during the financial year ended on the
                  Accounts Date;

            (iii) comply with the requirements of all relevant statutes;

            (iv)  are prepared on consistent bases and policies of accounting;

            (v)   are not affected by any unusual or non-recurring items.

      9.1.2 Purchased Assets

            (i)   Title to Purchased Assets

                  Otherwise disclosed in writing:

                  the Purchased Assets included in the Accounts and Management
                  Accounts or acquired by the Seller since the Accounts Date
                  (other than trading stock disposed of since that date in the
                  ordinary course of business) and all other Purchased Assets
                  used or employed by the Seller

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<PAGE>

                  are the absolute property of the Seller free from any
                  mortgage, charge, lien, bill of sale or other encumbrance and
                  are not the subject of any leasing, hiring or hire-purchase
                  agreement or agreement for payment on deferred terms or
                  assignment or factoring or other similar agreement or any
                  interests of the third parties, and all such assets are in the
                  possession or under the control of the Seller.

            (ii)  Condition of plant machinery and equipment

                  the machinery, office equipment, computer systems and vehicles
                  used by the Seller in the TTR Business are in good repair,
                  regularly maintained and normally usable and comply with any
                  applicable legal requirement or restriction, and the vehicles
                  are duly licensed and suitable for the purposes for which they
                  are used.

            (iii) Control of records and information

                  all records and information belonging to the Seller (whether
                  or not held in written form) are in its exclusive possession,
                  under its direct control and subject to unrestricted access by
                  it.

      9.1.3 Borrowings

            (i)   in relation to the TTR Business and the Purchased Assets,
                  except as otherwise disclosed to the Purchaser in the manner
                  acceptable to the Purchaser, the Seller does not have
                  outstanding any obligation for the payment or repayment of
                  money, whether present or future, actual or contingent, in
                  respect of:

                  (a)   monies borrowed or raised;

                  (b)   any recourse to a company selling or discounting
                        receivables in respect of receivables sold or
                        discounted;

                  (c)   moneys raised under any bond, note, stock, or other
                        security;

                  (d)   moneys raised under or in respect of acceptance credit
                        and documentary credit facilities;

                  (e)   the acquisition cost of assets or services to the extent
                        payable after the time of acquisition or possession;

                  (f)   rental payments under chattel leases and hire purchase
                        agreement; or

                  (g)   any guarantee, indemnity or other assurance against or
                        arrangement intended to prevent or limit loss in respect
                        of any obligation for the payment or repayment of money
                        described in paragraphs (a) to (f) above (any such
                        obligation being referred to below as a "BORROWING").

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<PAGE>

                  (ii)  Except as otherwise disclosed to the Purchaser in the
                        manner acceptable to the Purchaser, the Seller does not
                        have subsisting over the whole or any part of its
                        present or future revenues or assets in relation to the
                        TTR Business any encumbrance, mortgage, charge, pledge,
                        lien or other security interest or any other agreement
                        or arrangement having a similar effect.

                  (iii) no Borrowing of the Seller has become or is now due and
                        payable, or capable of being declared due and payable,
                        before its normal or originally stated maturity and no
                        demand or other notice requiring the payment or
                        repayment of money before its normal or originally
                        stated maturity has been received by the Seller.

                  (iv)  no event or circumstance has occurred, or may occur with
                        the giving of notice or lapse of time determination of
                        materiality or satisfaction of any other condition, such
                        as to entitle any person to require the payment or
                        repayment of any Borrowing before its normal or
                        originally stated maturity or which is or shall be such
                        as to terminate, cancel or render incapable of exercise
                        any entitlement to draw money or otherwise exercise the
                        rights of the Seller under an agreement relating to
                        Borrowing.

      9.1.4 Environment

            Except as otherwise disclosed to the Purchaser:

            (i)   the Seller has complied with the applicable environmental law:

            (ii)  there are no circumstances in relation to the Seller or the
                  TTR Business which give rise or could give rise or have given
                  rise to any civil, criminal, administrative or other action,
                  claim, suit, complaint, proceeding, investigation,
                  decontamination, remediation or expenditure by any person or
                  competent authority under Environmental Law in relation to any
                  matter including properties now owned or formerly owned by the
                  Seller or used in the TTR Business;

            (iii) the Seller has obtained and there are in full force and effect
                  and the Seller has at all times complied with all Permits
                  necessary for the TTR Business, there are no circumstances
                  which could lead to the revocation, cancellation, suspension,
                  modification, variation or alteration of such Permits and
                  there are no circumstances which necessitate any works,
                  remediation or expenditure (other than routine maintenance) in
                  order to continue to comply with the Permits;

            (iv)  at no time has the Seller received from the governmental
                  environment authority any unresolved notice or intimation
                  alleging a breach of the terms of a Permit or alleging any
                  other breach of the applicable environmental law;

            (v)   all assessments reviews reports returns information and audits
                  required by the applicable environmental law or any Permit
                  have been properly carried out and submitted to the
                  appropriate authorities and their

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<PAGE>

                  recommendations and requirements implemented where required by
                  the applicable environmental law;

            (vi)  there are no circumstances which could require any further
                  Permits to be obtained in connection with the current TTR
                  Business of the Seller which require works, remediation or
                  additional expenditure to ensure compliance with such Permits.

      9.1.5 Commercial Arrangements and Conduct

            Except as otherwise disclosed to the Purchaser:

            (i)   Material contracts

                  In relation to the TTR Business and the Purchased Assets,
                  there is not outstanding:

                  (a)   any contract of guarantee, indemnity or suretyship or
                        any contract to secure any obligation of any person;

                  (b)   any joint venture, consortium or partnership agreement
                        or arrangement to which the Seller is a party;

                  (c)   any sale or purchase option or similar agreement or
                        arrangement affecting any assets owned or used by the
                        Seller or by which it is bound;

                  (d)   any liability, obligation or commitment of any kind
                        (other than those listed in (a) to (c) above) on the
                        part of the Seller (including a capital commitment)
                        which:

                        (1)   is incapable of complete performance within three
                              months from the date of Agreement; or

                        (2)   has not been incurred in the ordinary course of
                              business; or

                        (3)   is, or is likely to be, of major significance to
                              the Seller; or

                        (4)   exceeds, or is likely to exceed, in aggregate a
                              sum of US$500,000.

            (ii)  Effect of Agreement on other agreements

                  there is no agreement or arrangement in relation to the TTR
                  Business and the Purchased Assets between the Seller and any
                  other person which shall or may be terminated as a result of
                  this Agreement (or Closing) or which shall be affected by it
                  or which includes any provision with respect to a change in
                  the control, management or shareholders of the Seller.

            (iii) Commercial position

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<PAGE>

                  so far as the Seller is aware:

                  (a)   there is no substantial customer or supplier of the
                        Seller in relation to the TTR Business who has ceased
                        purchasing from or supplying to it or who is likely
                        after the date of this Agreement (or Closing) to reduce
                        substantially or terminate purchases from or supplies to
                        it;

                  (b)   there are no special circumstances which might lead to
                        the supply by the Seller or to it of any goods or
                        services, in relation to the TTR Business being
                        restricted or hindered.

            (iv)  Restrictive agreements and anti-competitive behaviour

                  so far as the Seller is aware:

                  (a)   the Seller does not infringe and has not infringed any
                        legislation applicable in any jurisdiction relating to
                        anti-competitive agreements or practices or behaviour or
                        any similar matter;

                  (b)   the Seller is not in relation to the TTR Business, bound
                        by or party to any order or decision made or
                        undertakings (binding or not) given to or any court or
                        tribunal of competent jurisdiction or any similar
                        authority in any jurisdiction, under or in any law,
                        regulation or administrative process relating to fair
                        competition anti-trust, monopolies, mergers or other
                        similar matters;

                  (c)   the Seller has not in relation to the TTR Business,
                        within the last two years been party to any merger or
                        other similar arrangement which was capable of review by
                        any anti-trust or similar authorities in any
                        jurisdiction.

            (v)   Notice of official action

                  the Seller is not aware of any process, notice or
                  communication, formal or informal, by or on behalf of any
                  authority of any country having jurisdiction in anti-trust
                  matters, in relation to any aspect of the TTR Business or the
                  conduct of the Seller or any agreement or arrangement to which
                  the Seller is or was, or is alleged to be or have been, a
                  party, and so far as the Seller is aware it is not likely to
                  receive any such process, notice or communication.

      9.1.6 Litigation, Defaults and Insurance

            Except as otherwise disclosed to the Purchaser:

            (i)   Legal proceedings

                  the Seller is not engaged or proposing to engage in any
                  litigation, arbitration, prosecution or other legal
                  proceedings, and there are no

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<PAGE>

                  claims or actions (whether criminal or civil) in progress,
                  outstanding, pending or threatened against the Seller, any of
                  its assets or any of its directors or officers or in respect
                  of which the Seller is liable to indemnify any party
                  concerned.

            (ii)  Unlawful acts by the Seller

                  so far as the Seller is aware:

                  neither the Seller nor any of its directors, officers or
                  employees has by any act or default committed, to the extent
                  adversely impacting the normal operation of the Purchaser:

                  (a)   any criminal or unlawful act in connection with the
                        business of the Seller, other than minor road traffic
                        offences;

                  (b)   any breach of trust in relation to the business or
                        affairs of the Seller;

                  (c)   any breach of contract or statutory duty or any tortious
                        act which could entitle any third party to terminate any
                        contract to which the Seller is a party or could lead to
                        a claim against the Seller for damages, compensation or
                        an injunction.

            (iii) Defaults by others

                  So far as the Seller is aware, no party with whom the Seller
                  has entered into any contract in relation to the TTR Business
                  or the Purchased Assets is in default under it, and there are
                  no circumstances likely to give rise to such a default.

            (iv)  Official investigations

                  so far as the Seller is aware, no governmental or official
                  investigation or inquiry concerning the Seller is in progress
                  or threatened and there are no circumstances which are likely
                  to give rise to any such investigation or inquiry.

            (v)   Adequacy of insurance

                  the Seller has, and since 2003 has had, valid insurance cover
                  in respect of the TTR Business and the Purchased Assets:

                  (a)   against all risks (including product liability for a
                        period of at least six months) normally insured against
                        by companies carrying on the same type of business or
                        having similar assets;

                  (b)   for the full replacement value of the Purchased Assets
                        and for such amount in respect of the TTR Business as
                        would in the circumstances be prudent for such a
                        business;

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<PAGE>

                  (c)   from a well-established and reputable insurer.

            (vi)  Policies

                  All policies of insurance taken out in connection with the TTR
                  Business or the Purchased Assets have been disclosed to the
                  Purchaser, are written in the name of the Seller and are in
                  full force and effect; and the Seller has not done or omitted
                  to do or allowed anyone to do or not to do anything which
                  might render any of those policies void or voidable and has
                  complied with all conditions attached to them.

            (vii) Claims

                  No claim under any policy of insurance taken out in connection
                  with the TTR Business or the Purchased Assets is outstanding
                  and, so far as the Seller is aware, there are no circumstances
                  likely to give rise to such a claim.

      9.1.7 Corporate Organisation and Business

            Except as otherwise disclosed to the Purchaser:

            (i)   Corporate Status

            The Seller (including any of its representative offices or branches)
            has been duly incorporated and constituted, and is legally
            subsisting under the laws of its respective place of incorporation.

            (ii)  Title to TTR Business and Purchased Assets

                  The Seller has a good and marketable title to, and is the
                  exclusive legal and beneficial owner of the TTR Business and
                  the Purchased Assets, and, therefore, has an absolute right to
                  sell and transfer the TTR Business and the Purchased Assets.
                  All the Purchased Assets will be sold to the Purchaser free
                  and clear of any Encumbrance together with all accrued
                  beneficial rights attached to them at the date of this
                  Agreement or subsequently becoming attached to them;

            (iii) Licences, permissions or consents

                  so far as the Seller is aware, all licences, permissions and
                  consents required for the carrying on of the TTR Business of
                  the Seller have been obtained by it and are in full force and
                  effect, and the Seller is not aware of any circumstances
                  indicating that any of those licences, permissions or consents
                  is likely to be revoked or not renewed in the ordinary course.

            (iv)  Existence of subsidiaries and other business

                  The Seller does not have, and has never had, any subsidiary.
                  Save for the TTR Business,the Seller has not carried on any
                  other TTR Business.

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<PAGE>

            (v)   No material change

                  No material changes have occurred to the TTR Business since
                  the Accounts Date.

            (vi)  Conflict of Interest

                  Save for the TTR Business carried on by the Seller, the Seller
                  does not and whether on its own account or in conjunction with
                  or on behalf any person, firm or company, directly or
                  indirectly or whether as a shareholder, partner, agent or
                  otherwise, carry on, and is not engaged or interested in a
                  competing business or restricted services save for the holding
                  of investment up to two (2) % of any class of securities
                  quoted or dealt in on a recognized stock exchange.

      9.1.8 Miscellaneous

      Except as otherwise disclosed to the Purchaser:

            (i)   Insolvency

                  (a)   No order has been made and no resolution has been passed
                        for the winding up of, or a provisional liquidator to be
                        appointed in respect of, the Seller and no petition has
                        been presented and no meeting has been convened for the
                        purpose of winding up the Seller;

                  (b)   no receiver has been appointed in respect of the Seller,
                        the TTR Business or the Purchased Assets;

                  (c)   the Seller is not insolvent or unable to pay its debts
                        within the meaning of the applicable legislation to
                        which it is subject and the Seller has not stopped
                        paying its debts as they fall due;

                  (d)   no event analogous to any of the foregoing has occurred
                        with respect to the Seller in any jurisdiction outside
                        China;

                  (e)   no unsatisfied judgment is outstanding against the
                        Seller.

            (ii)  Consents

                  All consents, permissions, approvals and agreements of third
                  parties which are necessary or desirable for the Seller to
                  obtain in order to enter into and perform this Agreement in
                  accordance with its terms have been unconditionally obtained
                  in writing and have been disclosed to the Purchaser.

            (iii) Material information

                  all information relating to the Seller, the TTR Business and
                  the Purchased Assets which is known or would on reasonable
                  enquiry be known to the

                                       20
<PAGE>

                  Seller and which should be known by a Purchaser for a proper
                  valuation of the Purchased Assets has been disclosed to the
                  Purchaser.

            (iv)  Brokers and Finders

                  No person or entity acting on behalf or under the authority of
                  the Seller is or will be entitled to any broker's, finder's or
                  similar fee or commission in connection with the transactions
                  contemplated hereby.

            (v)   Recitals and disclosures

                  The recitals, Schedules to the Agreement and all information
                  and documents relating to the TTR Business and Purchased
                  Assets (including without limitation budgets and forecasts)
                  supplied by the Seller or any agent of Seller to the
                  Purchaser, its lawyers, accountants or other agents or
                  advisers during or with a view to the negotiations leading up
                  to the Agreement, are true and accurate in material respects,
                  and there is no fact not disclosed which would render any such
                  information or document inaccurate or misleading or which, if
                  disclosed, might reasonably affect the willingness of the
                  Purchaser to purchase the Purchased Assets for the
                  consideration or otherwise on the terms specified in the
                  Agreement.

      9.1.9 Authority of the Seller

            Except as otherwise disclosed to the Purchaser:

            (i)   The Seller has full power and authority to enter into and
                  perform this Agreement and the provisions of this Agreement,
                  when executed, will constitute valid and binding obligations
                  on the Seller, in accordance with its terms;

            (ii)  The execution and delivery of, and the performance by the
                  Seller of its obligations under, this Agreement will not
                  result in a breach of any order, judgment or decree of any
                  court or governmental agency to which any Seller is a party or
                  by which it is bound;

            (iii) None of the Seller or any of its agents or advisers is aware
                  of any fact or matter which would or may constitute a breach
                  of any of the Seller's Warranties.

9.2   Tax Warranties

      Seller represents and warrants:

      (i)   That it will pay any and all taxes in compliance with the applicable
            laws and regulations;

      (ii)  that all forms, filings, and information provided to any taxing
            authority were timely filed and were, at the time of filing and
            continue to be, complete and accurate;

                                       21
<PAGE>

      (iii) so far as the Seller is aware, there is no liability in respect of
            taxation (whether actual or contingent) or any liability for
            interest, penalties or charges imposed in relation to any taxation
            arising in any part of the world that is not adequately disclosed or
            provided for in full in the Accounts and Management Accounts;

      (iv)  so far as the Seller is aware, Seller is not and has not in the last
            three years been the subject of a Tax Authority unresolved
            investigation or other dispute regarding Tax or duty recoverable
            from the Seller or regarding the availability of any relief from Tax
            or duty to the Seller and there are no facts which are likely to
            cause such an investigation or audit to be instituted or such a
            dispute to arise and all returns made by the Seller are agreed with
            the appropriate Tax Authority;

      (v)   Seller has neither been a party to nor otherwise involved in any
            transaction, scheme or arrangement:

            (a)   the sole or dominant purpose of which was to obtain a tax
                  benefit by the avoidance, postponement or reduction of a
                  liability to tax within the meaning of the applicable tax
                  legislation.

            (b)   which reduces or would reduce the amount of tax payable by any
                  person and which is artificial or fictitious or in respect of
                  which any disposition is not given effect to within the
                  meaning of the applicable tax legislation.

      (vi)  Seller will assist Buyer in responding to any future inquiry from or
            dispute with a Taxing Authority.

9.3   Property Warranties

      Except as otherwise disclosed to the Purchaser:

      9.3.1 Interests

            The Properties comprise, and will as at Closing comprise, all the
            land, buildings and premises used in the TTR Business owned by the
            Seller or occupied by the Seller or in which the Seller has, or will
            as at Closing have, any interest.

      9.3.2 Insurance

            (i)   Where the Seller is responsible for maintaining insurance in
                  respect of any of the Leased Properties, the policy conforms
                  in all respects with the requirements of the Lease.

            (ii)  True and complete copies of all insurance policies, in respect
                  of the Leased Properties for which the Seller is responsible
                  for maintaining insurance, have been delivered to the
                  Purchaser.

            (iii) The Seller has not done or omitted to do anything which may
                  result, directly or indirectly, in any of the insurance
                  policies may become void or voidable.

                                       22
<PAGE>

            (iv)  No claims outstanding or circumstances which the Seller is
                  aware of which would give rise to a claim under any of the
                  insurance policies.

      9.3.3 Owned Properties

            The Owned Properties represent all the real properties owned by the
            Seller or in respect of which the Seller has any estate, interest,
            right or liability (as defined below), and in respect of each of the
            Owned Properties:

            (i)   the Seller is the sole beneficial owner of and has a proper
                  legal title (in the form of granted land use rights the
                  premium for which has been fully paid) to the Owned Properties
                  and is entitled to transfer, dispose, sell, mortgage or
                  otherwise deal with the Owned Properties and is entitled the
                  use of such property in the manner in which it is used or is
                  proposed to be used;

            (ii)  except as otherwise created for the Assumed Liabilities and
                  disclosed to the Purchaser in the manner acceptable to the
                  Purchaser, each of the Owned Properties held by the Seller is
                  free from mortgage, debenture, charge, lien, lease,
                  encumbrances or any third party rights and the Seller has not
                  entered into any agreement to do any of the foregoing;

            (iii) the Seller has not received or is not aware of there being any
                  notice from any government or other competent authorities
                  requiring it to revise the terms of the ownership rights
                  relating to the Owned Properties or adversely affecting the
                  Owned Properties or the rights of the Seller in relation
                  thereto;

            (iv)  all land premium, purchase price, land grant fees or other
                  fees payable in respect of the Owned Properties have been paid
                  in full and will be duly paid up to the date of Closing and no
                  further such premiums, price or fees are payable under any
                  applicable laws;

            (v)   none of the terms and conditions contained in the relevant
                  sale and purchase or transfer contracts, deed of mutual
                  covenants, government grant, occupation permit, real estate
                  title certificate, land use right certificate, building
                  ownership certificates and/or certificate of ownership and the
                  applicable laws, rules and regulations have been breached in
                  respect of the Owned Properties;

            (vi)  the Seller has duly performed and observed all the terms and
                  conditions contained in the sale and purchase or transfer
                  contracts (if any), assignment, deed of mutual covenant, land
                  use right certificate and building ownership certificates for
                  the Owned Properties to be performed and observed on the part
                  of the Seller as Purchaser thereof;

            (vii) all relevant legal requirements or conventions for
                  notarization and registration of the sale and purchase
                  contracts and assignments for the Owned Properties have been
                  complied with;

                                       23
<PAGE>

            (viii) the land and building ownership rights pertaining to the
                  Owned Properties are valid and subsisting and has not been
                  amended, modified or supplemented in any manner whatsoever;

            (ix)  no contracts have been entered into by the Seller to sell,
                  assign, subdivide, let or lease, licence, charge, mortgage,
                  partition, share, grant any option over or otherwise dispose
                  of an interest in or part with the possession or occupation of
                  the Owned Properties or any part thereof or otherwise encumber
                  the Owned Properties nor is there any agreement by the Seller
                  to do any of the aforesaid;

            (x)   the Seller is in physical possession and actual occupation of,
                  each and every one of the Owned Properties on an exclusive
                  basis and no right of occupation or enjoyment has been
                  acquired or is in the course of being acquired by any third
                  party or has been granted or agreed to be granted to any third
                  party;

            (xi)  except as otherwise included in the Assumed Liabilities, the
                  Seller does not have any outstanding liabilities under the
                  terms and conditions upon which the land and building
                  ownership rights pertaining to the Owned Properties are
                  granted;

            (xii) except as otherwise disclosed to the Purchaser in the manner
                  acceptable to the Purchaser, the Owned Properties are not
                  subject to any restrictive covenants, stipulations, easements,
                  licences, restrictions or other like rights vested in third
                  parties other than those stipulated in the terms and
                  conditions upon which the land and building ownership rights
                  pertaining to the Owned Properties are granted which terms and
                  conditions are of a usual nature with reference to such terms
                  and conditions in China;

            (xiii) there are no circumstances which would entitle or require any
                  person to exercise any powers of entry or taking possession of
                  the Owned Properties;

            (xiv) compliance has been made with all applicable statutory and
                  by-law requirements with respect to the Owned Properties;

            (xv)  all requisite licences, certificates and authorities necessary
                  for the existing use of the Owned Properties by the Seller
                  have been duly obtained and are in full force, validity and
                  effect;

            (xvi) there are no disputes with any adjoining or neighbouring owner
                  with respect to boundary walls and fences, or with respect to
                  any easement, right or means of access to the Owned
                  Properties;

            (xvii) the Owned Properties are used by the Seller for legal
                  purposes and has not violated any relevant land or
                  construction regulations;

            (xviii) all requisite approvals, consents, permits and licences
                  necessary for the user of the Owned Properties as it is
                  presently being used by the Seller have been duly obtained and
                  are in full force, validity and effect;

                                       24
<PAGE>

            (xix) no default (or event which with notice or lapse of time or
                  both will constitute a default) by the Seller has occurred or
                  is continuing under the government grant, occupation permit,
                  deed of mutual covenant, land use right certificate, building
                  ownership rights certificate and/or other documents applicable
                  to the property and it is not in breach of any applicable
                  laws, rules, regulations, guidelines, notices, circulars,
                  orders, judgments, decrees or rulings of any court,
                  government, governmental or regulatory authorities in respect
                  of the use occupation and enjoyment of the Owned Properties;

            (xx)  all requisite planning and building approvals required for any
                  government, local or public authority with respect to the
                  Owned Properties have been obtained and are in full force and
                  effect;

            (xxi) all the buildings and other structures on the Owned Properties
                  are in good and substantial repair and fit for the purposes
                  for which they are being used; and

            (xxii) there is (and has been) no breach of any applicable
                  statutory, by-law or regulatory requirement as to fire
                  precautions, public health, pollution, discharge of effluents,
                  environmental or any other matters to which, in respect of any
                  of the Owned Properties compliance is required.

      9.3.4 Other involvement in relation to property

            So far as the Seller is aware, the Seller has not at any time:

            (i)   had vested in it (whether as an original tenant or undertenant
                  or as an assignee, transferee or otherwise) any immovable
                  property used in relation to the TTR Business other than the
                  Properties.

            (ii)  given any covenant or entered into any agreement, deed or
                  other document (whether as a tenant or undertenant or as an
                  assignee, transferee, guarantor or otherwise) in respect of
                  any immovable property used in relation to the TTR Business in
                  respect of which any contingent or potential liability remains
                  with the Seller other than those disclosed to the Purchaser in
                  relation to the Properties.

            (iii) done, omitted or knowingly suffered or been party or privy to
                  any act, deed, matter or thing whereby or by means whereof the
                  Properties or any part thereof are or can or shall or may be
                  impeached, charged, affected or encumbered in title, estate or
                  otherwise.

9.4   The Seller acknowledges that, in entering into this Agreement and in
      purchasing the Purchased Assets, the Purchaser has relied and will reply
      upon the Warranties given herein and the Warranties as confirmed by the
      Seller.

9.5   Each of the Warranties shall be construed as a separate warranty and shall
      not be otherwise limited or restricted by reference to or inference from
      the terms of any other Warranty or any other term of this Agreement.

                                       25
<PAGE>

9.6   The Seller shall procure that the Warranties are true and accurate in
      material respects at the date of this Agreement and, for this purpose the
      Warranties shall be deemed to be repeated at the Closing Date and any
      express or implied reference therein to the date of this Agreement shall
      be replaced by a reference to the Closing Date. The Warranties shall
      remain in full force and effect notwithstanding Closing.

9.7   The Purchaser shall be entitled to claim both before and after Closing
      that any of the Warranties is or was untrue or misleading or has or had
      been breached even if the Purchaser discovered or could have discovered on
      or before Closing that the Warranty in question was untrue misleading or
      had been breached and Closing shall not in any way constitute a waiver of
      any of the Purchaser's rights.

9.8   The rights and remedies of the Purchaser in respect of a breach of any of
      the Warranties shall not be affected by Closing, by any investigation made
      by or on behalf of the Purchaser into the affairs of the Seller and the
      TTR Business, by the giving of any time or other indulgence by the
      Purchaser to any person, by the Purchaser rescinding or not rescinding
      this Agreement, or by any other cause whatsoever except a specific waiver
      or release by the Purchaser in writing; and any such waiver or release
      shall not prejudice or affect any remaining rights or remedies of the
      Purchaser.

9.9   All representations and warranties made by the Seller contained in this
      Agreement, any Exhibit, Schedule, certificate or other instrument
      specifically referred to in the Warranties pursuant hereto or made in
      writing by or on their behalf in connection with the transactions
      contemplated by this Agreement, and all indemnification obligations of the
      Seller under this Agreement shall survive the execution and delivery of
      this Agreement and the Closing of the transactions contemplated hereunder.
      All statements contained in any Exhibit, Schedule, certificate or other
      instrument specifically referred to in the Warranties shall be deemed
      representations and Warranties under this Agreement.

9.10  The Seller undertakes with the Purchaser that it will both before and
      after Closing promptly notify the Purchaser in writing of any event or
      circumstance of which it becomes aware which is or may be inconsistent
      with any of the Warranties or which might make any of the Warranties
      untrue or misleading if given at Closing.

                           ARTICLE 10 INDEMNIFICATION

10.1  General Indemnification

      10.1.1 As used in this Article 10.1, the following terms shall have the
            following meanings:

            (i)   "EVENT OF INDEMNIFICATION" with respect to the Seller shall
                  mean:

                  (a)   any untruth, inaccuracy or breach of any representation
                        or Warranty relating to anything undisclosed to
                        Purchaser as of the Closing Date, any untruth,
                        inaccuracy, omission, in non-compliance with PRC laws
                        and regulations or breach of any representation or
                        Warranty relating to anything disclosed the Purchaser as
                        of the Closing Date, or any breach or failure of

                                       26
<PAGE>

                        observance or performance of any agreement, undertaking,
                        commitment, obligation, indemnity or covenant of the
                        Seller contained in this Agreement (including the
                        Schedules) or in any certificate or other writing
                        delivered in connection herewith at, before or after
                        Closing or any facts or circumstances constituting such
                        untruth, inaccuracy or breach; and

                  (b)   except for the Assumed Liabilities, any other Claims,
                        liabilities or obligations of any kind or nature
                        relating to the TTR Business or the Purchased Assets
                        arising from, relating to or in connection with the TTR
                        Business, operations or affairs of the Seller or any of
                        the assets, properties, interests in assets or
                        properties or rights of the Seller which were existing
                        at or as of Closing or arising in whole or in part out
                        of any acts, transactions, conditions, circumstances or
                        facts which occurred or existed on or prior to Closing,
                        and which were not disclosed on or before the execution
                        of this Agreement and explicitly assumed by Purchaser
                        pursuant to this Agreement.

            (ii)  "LOSSES" shall mean any and all Losses sustained, suffered or
                  incurred by any Indemnified Person directly.

      10.1.2 "INDEMNIFIED PERSONS" shall mean and include the Purchaser and its
             respective officers, directors, employees, Affiliates, successors
             and assignees.

      10.1.3 The Seller shall indemnify, defend and hold harmless the
             Indemnified Persons, and each of them, from and against any and all
             Losses and Claims (including Claims by third party) arising from or
             in connection with any Event of Indemnification.

      10.1.4 This indemnity is to be a continuing security to the Purchaser for
             each representation, Warranty, agreement, undertaking, commitment,
             obligation, indemnity or covenant on the part of the Seller under
             or pursuant to this Agreement notwithstanding settlement of account
             or other matter or thing whatsoever.

      10.1.5 This indemnity is in addition and without prejudice to and not in
             substitution for any rights or security which the Purchaser may now
             or hereafter have or hold for performance and observance of any
             agreement, undertaking, commitment, obligation, indemnity or
             covenant on the part of the Seller under or in connection with this
             Agreement.

      10.1.6 The Guarantor shall be jointly and severally liable for the
             liabilities of the Seller under Article 10.1, as well as all other
             liabilities of Seller arising under this Agreement.

10.2  Exercise of Purchaser's Rights

      10.2.1 Without prejudice to any other right or remedy of the Purchaser
             hereunder, if before Closing the Purchaser becomes aware that any
             of the material Warranties was at the date of this Agreement, or
             has since become, untrue or misleading or

                                       27
<PAGE>

             that the Seller is in breach of any term of this Agreement, the
             Purchaser shall be entitled to, by written notice to the Seller,
             terminate this Agreement without liability to the Seller. In the
             event of the termination of this Agreement, without limiting the
             Purchaser's right to claim all obligations of the Seller under this
             Agreement, the Purchaser shall,unless otherwise expressly stated,
             cease to enjoy and assume all rights and liabilities hereunder,
             but, for the avoidance of doubt, all rights and liabilities of the
             Parties which have accrued before termination shall continue to
             exist.

      10.2.2 The rights, including rights of rescission, conferred on the
            Purchaser by this Agreement are in addition and without prejudice to
            all other rights and remedies available to the Purchaser; and no
            exercise or failure to exercise a right under this Agreement or
            otherwise or to invoke a remedy shall constitute a waiver of that
            right or remedy by the Purchaser.

                 ARTICLE 11 GUARANTEE AND INDEMNITY BY GUARANTOR

11.1  In consideration of the Purchaser entering into this Agreement, Guarantor
      hereby unconditionally and irrevocably guarantees to the Purchaser the due
      and punctual performance and observance by the Seller of all obligations,
      commitments, undertakings, warranties, indemnities and covenants under or
      pursuant to this Agreement and agrees to indemnify the Purchaser and its
      Affiliates against any and all Losses and Claims which the Purchaser or
      any of its Affiliates may suffer through or arising from any breach by the
      Seller of such obligations, commitments, warranties, undertakings,
      indemnities or covenants. The liability of Guarantor as aforesaid shall
      not be released or diminished by any arrangements or alterations of terms
      (whether of this Agreement or otherwise) or any forbearance, neglect or
      delay in seeking performance of the obligations hereby imposed or any
      granting of time for such performance.

11.2  Guarantor hereby waives any right which it may have to require the
      Purchaser to proceed first against or claim payment from the Seller to the
      intent that as between the Purchaser and Guarantor the latter shall be
      liable as principal obligor as if it had entered into all undertakings,
      agreements and other obligations jointly and severally with the Seller.

11.3  This guarantee and indemnity is to be a continuing security to the
      Purchaser for all obligations, commitments, warranties, undertakings,
      indemnities and covenants on the part of the Seller under or pursuant to
      this Agreement notwithstanding any settlement of account or other matter
      or thing whatsoever.

11.4  This guarantee and indemnity is in addition to and without prejudice to
      and not in substitution for any rights or security which the Purchaser may
      now or hereafter have or hold for the performance and observance of the
      obligations, commitments, undertakings, covenants, indemnities and
      warranties of the Seller under or in connection with this Agreement.

11.5  As a separate and independent stipulation, Guarantor agrees that any
      obligation expressed to be undertaken by the Seller under this Agreement
      (including, without limitation, any moneys expressed to be payable under
      this Agreement) which may not be enforceable against or recoverable from
      the Seller by reason of any legal limitation, disability or incapacity of
      the Seller or any other fact or circumstance shall nevertheless

                                       28
<PAGE>

      be enforceable against or recoverable from Guarantor as though the same
      had been incurred by Guarantor and Guarantor was sole or principal
      obligors in respect thereof and shall be performed or paid by Guarantor on
      demand.

                            ARTICLE 12 FORCE MAJEURE

12.1  Scope of Force Majeure. A "FORCE MAJEURE EVENT" shall mean any event,
      circumstance or condition that (i) directly or indirectly prevents the
      fulfillment of any material obligation set forth in this Agreement, (ii)
      is beyond the reasonable control of the respective Party, and (iii) could
      not, by the exercise of reasonable care, have been avoided or overcome in
      whole or in part by such Party. Subject to the aforementioned items (i),
      (ii) and (iii), Force Majeure Event includes, but is not limited to,
      natural disaster such as earthquake, acts of God, flood, windstorm, etc.,
      contingency such as war, civil commotion, riot, blockade or embargo, fire,
      explosion, etc., delays of carriers that can be proved, epidemic, or by
      reason of any law, order, proclamation, regulation, ordinance, demand,
      expropriation, requisition or requirement or any other act of any
      governmental authority, including military action, court orders, judgments
      or decrees.

12.2  Notice. Should any Party be prevented from performing the terms and
      conditions of this Agreement due to the occurrence of a Force Majeure
      Event, the prevented Party shall send notice to the other Parties within
      fourteen (14) days from the occurrence of the Force Majeure Event stating
      in the details of such Force Majeure Event.

12.3  Performance. Any delay or failure in performance of this Agreement caused
      by a Force Majeure Event shall not constitute a default by the prevented
      Party or give rise to any claim for damages, losses or penalties. Under
      such circumstances, the Parties are still under an obligation to take
      reasonable measures to perform this Agreement, so far as is practical. The
      prevented Party shall send notice to the other Parties as soon as possible
      of the elimination of the Force Majeure Event, and confirm receipt of such
      notice.

12.4  Consultations and Termination. Should the Force Majeure Event continue to
      delay implementation of this Agreement for a period of more than three (3)
      months, the Parties shall, through consultations, decide whether to
      terminate or modify this Agreement. Should the Force Majeure Event
      continue for a period of six (6) months or longer, any Party may terminate
      this Agreement by giving written notice to the other Parties. In the event
      of the termination of this Agreement, without limiting the Purchaser's
      right to claim all obligations of the Seller under this Agreement, the
      Purchaser shall, unless otherwise expressly stated, cease to enjoy and
      assume all rights and liabilities hereunder, but, for the avoidance of
      doubt, all rights and liabilities of the Parties which have accrued before
      termination shall continue to exist.

                           ARTICLE 13 CONFIDENTIALITY

13.1  The Parties undertake with each other that they shall treat as strictly
      confidential all information received or obtained by them or their
      employees, agents or advisers as a result of entering into or performing
      this Agreement including information relating to the provisions of this
      Agreement, the negotiations leading up to this Agreement, the subject
      matter of this Agreement or the business or Affairs of the Seller or the
      Purchaser and that it will not at any time hereafter make use of or
      disclose or divulge to any person

                                       29
<PAGE>

      any such information (except in relation to the operation of the TTR
      Business after Closing by the Purchase) and shall use its best endeavours
      to prevent the publication or disclosure of any such information.

13.2  The restrictions contained in Article 13.1 shall not apply so as to
      prevent the Parties from making any disclosure required by law or by any
      supervisory or regulatory or governmental body or from making any
      disclosure to any professional adviser for the purposes of obtaining
      advice (providing always that the provisions of this Article 13 shall
      apply to and the Parties shall procure that they apply to and are observed
      in relation to, the use or disclosure by such professional adviser of the
      information provided to them) nor shall the restriction apply in respect
      of any information which comes into the public domain otherwise than by a
      breach of this Article 13 by any Party.

                            ARTICLE 14 GOVERNING LAW

The formation of this Agreement, its validity, interpretation, execution and any
performance of this Agreement, and the settlement of any Disputes hereunder,
shall be governed by published and publicly available laws, rules and
regulations of the PRC, the applicable provisions of any international treaties
and conventions to which the PRC is a party, and, if there are no published or
publicly available PRC laws, rules or regulations, or treaties or conventions
governing a particular matter, by general international commercial practices.

                          ARTICLE 15 DISPUTE RESOLUTION

15.1  Consultations and Arbitration. Any and all disputes, controversies or
      claims (the "DISPUTE") arising out of or relating to the formation,
      validity, interpretation, implementation or termination of this Agreement,
      or the breach hereof or relationships created hereby shall be settled
      through friendly consultations. If a Dispute is not resolved through
      friendly consultations within thirty (30) days from the date a Party gives
      the other Parties written notice of a Dispute, then it shall be resolved
      exclusively and finally by arbitration in Beijing at the China
      International Economic and Trade Arbitration Commission ("CIETAC") in
      accordance with the arbitration rules of the CIETAC (the "CIETAC RULES")
      for the time being in force which rules are deemed to be incorporated by
      reference to this clause.

15.2  Arbitration Proceedings and Award. Any arbitration shall be heard before a
      tribunal consisting of three (3) arbitrators. Each side of the Dispute
      shall appoint one (1) arbitrator. The two arbitrators thus appointed shall
      choose the third arbitrator who will act as the presiding arbitrator of
      the tribunal. If the two arbitrators have not agreed on the choice of the
      presiding arbitrator, the presiding arbitrator shall be appointed by the
      Chairman of the CIETAC. The language of the arbitration shall be Chinese
      and English . The arbitration shall be final and binding on the Parties,
      shall not be subject to any appeal, and the Parties agree to be bound
      thereby and to act accordingly. The award of the arbitrators may be
      enforced by any court having jurisdiction to do so. Throughout any dispute
      resolution and arbitration proceedings, the Parties shall continue to
      perform this Agreement, to the extent practical, with the exception of
      those parts of this Agreement that are under arbitration. Except as
      otherwise determined by the arbitration tribunal, each Party shall be
      responsible for its expenses incurred in connection with

                                       30
<PAGE>

      resolving any Dispute, but the arbitration fees shall be borne by the
      losing side of the Dispute.

15.3  Injunctive Relief. Notwithstanding any other provision of this Agreement,
      each Party acknowledges that a breach of confidentiality as provided in
      Article 13 or other obligations under this Agreement may result in
      irreparable harm and damage to the affected Party and its Affiliates in an
      amount that is difficult to ascertain and that cannot be adequately
      compensated by a monetary award. Accordingly, in addition to any other
      relief to which the affected Party and its Affiliates may be entitled,
      such Party shall be entitled to temporary and/or permanent injunctive
      relief from any breach or threatened breach by the relevant Party without
      proof of actual damages that have been or may be caused to such Parties by
      such breach or threatened breach.

                       ARTICLE 16 MISCELLANEOUS PROVISIONS

16.1  Language. This Agreement is written and executed in a Chinese version and
      in an English version. Both language versions of this Agreement are of
      equal validity and effect. In case of any discrepancy between the Chinese
      version and the English version, the Chinese version approved by the
      Examination and Approval Authority shall prevail.

16.2  Waiver and Preservation of Remedies. No delay on the part of any Party in
      exercising any right, power or privilege under this Agreement shall
      operate as a waiver thereof, nor shall any waiver on the part of any Party
      of any right, power or privilege hereunder, nor any single or partial
      exercise of any right, power or privilege hereunder, preclude any other or
      other exercise thereof hereunder. The rights and remedies herein provided
      are cumulative and are not exclusive of any rights or remedies that any
      Party may otherwise have.

16.3  Notices. All notices or other communications under this Agreement shall be
      in writing and shall be delivered or sent to the correspondence addresses
      or facsimile numbers of the Parties set forth below or to such other
      addresses or facsimile numbers as may be hereafter designated in writing
      on seven (7) days' notice by the relevant Party. All such notices and
      communications shall be effective: (i) when delivered personally; (ii)
      when sent by telex, telefacsimile or other electronic means with sending
      machine confirmation; (iii) ten (10) days after having been sent by
      registered or certified mail, return receipt requested, postage prepaid;
      or (iv) four (4) days after deposit with a commercial overnight courier,
      with evidence of delivery provided by the courier.

Seller         Address:      No. 98, Nanshan Road North, Rongcheng City,
                             Shandong Province, PRC
               Tel:          0631-7523205
               Fax:          0631-7523888
               Attn:         Zhang Junquan

Purchaser      Address:       No. 98, Nanshan Road North, Rongcheng City,
                             Shandong Province, PRC
               Tel:
               Fax:
               Attn:

                                       31
<PAGE>

Guarantor      Address:      No. 98, Nanshan Road North, Rongcheng City,
                             Shandong Province, PRC
               Tel:          0631-7523206
               Fax:          0631-7506826
               Attn:         Zhang Junquan

16.4  Severability. If any provision of this Agreement should be or become fully
      or partially invalid, illegal or unenforceable in any respect for any
      reason whatsoever, the validity, legality and enforceability of the
      remaining provisions of this Agreement shall not in any way be affected or
      impaired thereby.

16.5  Entire Agreement. This Agreement, together with its Schedules and Exhibits
      which are hereby incorporated by reference as an inseparable and integral
      part of this Agreement, constitutes the entire agreement among the Parties
      with reference to the subject matter hereof, and supersede any agreements,
      contracts, representations and understandings, oral or written, made prior
      to the signing of this Agreement.

16.6  Modification and Amendment. No amendment or modification of this
      Agreement, whether by way of addition, deletion or other change of any of
      its terms, shall be valid or effective unless a variation is agreed to in
      writing and signed by authorized representatives of each of the Parties.

16.7  Successors. This Agreement shall inure to the benefit of and be binding
      upon each of the Parties and their respective permitted successors and
      permissible assignees.

16.8  Originals. This Agreement is executed in nine (9) original counterparts,
      each of which shall have equal effect in law.

                                       32
<PAGE>

IN WITNESS WHEREOF, each of the Parties has executed this Agreement or has
caused this Agreement to be executed by its duly authorized officer or officers
as of the date first above written.

PURCHASER:                                                              SELLER:

COOPER CHENGSHAN (SHANDONG) TIRE                    SHANDONG CHENGSHAN TIRE
                                                    COMPANY
COMPANY LIMITED                                     LIMITED BY SHARES

Represented by Cooper Tire Investment Holding
(Barbados) Ltd. before legal establishment:

By:                                                 By:
   ----------------------------------------            -------------------------
Name: Harold C. Miller                              Name:         Che Hongzhi
Title:  President                                   Title:        Chairman
Nationality:  U.S.A.                                Nationality:  Chinese

                                                    GUARANTOR:

Confirmed and ratified after legal establishment:   SHANDONG CHENGSHAN GROUP
                                                    COMPANY

By:                                                 By:
   ----------------------------------------            -------------------------
Name:                                               Name:          Che Hongzhi
Title:                                              Title:         Chairman
Nationality:                                        Nationality:   Chinese

                                       33
<PAGE>

                                   SCHEDULE 1

                         DEFINITIONS AND INTERPRETATION

ACCOUNTS - The audited financial statements of the Seller (including, without
limitation, a balance sheet, profit and loss statement and cash flow statement
together in each case with the notes thereon) made up to the Accounts Date and
for the financial period from January 1, 2005 to the Accounts Date prepared in
accordance with relevant PRC laws and regulations, the Chinese GAAP, and in
manner consistent with past practice.

ACCOUNTS DATE - The date of Closing.

AFFILIATES - Any person which directly or indirectly controls, is controlled by,
or is under common control with Seller, or Seller or any of its related
companies; the term "control" means ownership, the power to elect or appoint
directors or senior management, and/or the ability to determine and enforce the
strategic, business or operations policies of any person.

AGREED FORM - In relation to any document, such document in the terms agreed
between the Purchaser and Seller and signed by or on behalf of them for the
purposes of identification.

AGREEMENT - This Assets Purchase Agreement

BUSINESS LICENSE - The business license of the Purchaser as issued, amended and
replaced, as the case may be, from time to time by the Registration Authority.

CERTIFICATE OF APPROVAL - The certificate of approval issued by the Examination
and Approval Authority approving the JV Contract and establishment of the
Purchaser.

CHINESE GAAP - The general accepted accounting principles applicable in China,
consistently applied.

CLAIM - Any claim, demand, dispute, action, suit, investigation or legal or
analogous proceedings

CLOSING - The completion of the purchase by the Purchaser from the Seller of the
Purchased Assets in accordance with Article 7.

CLOSING DATE - the date mutually agreed by the Parties subsequent to the
conditions in Article 5.1 being satisfied or such other date as is determined by
the Seller and Purchaser.

CONTRACTS - The meaning set forth in Article 2.1.4

EMPLOYEES - The employees to be employed in relation to the TTR Business by
Purchaser.

ENCUMBRANCES - Any mortgage, charge (fixed or floating), pledge, lien,
hypothecation, trust, right of set off or other third party right or interest
(legal or equitable) including any right of pre-emption, assignment by way of
security, reservation of title or any other security interest of any kind
however created or arising or any other agreement or arrangement (including a
sale and repurchase arrangement) having similar effect.

                                       34
<PAGE>

EXAMINATION AND APPROVAL AUTHORITY - The Ministry of Commerce, or its authorized
local division or any successor government institution or agency empowered to
approve the JV Contact, this Agreement, and any amendments, supplements,
modifications or termination thereof or hereof.

GUARANTOR - Chengshan Group Company Limited.

TTR BUSINESS - The business in relation to the bias light truck tires, radial
and bias medium truck tires, engineering tires and Related Products, which has
been carried on by Seller as part of the business scope specified on the
effective business license of Seller, such as "production and sales of rubber
products; import and export business within the approved scope; sales of
vehicles (including cars); contracting of the offshore rubber industry projects
and onshore international tender offer projects and exporting of the equipment
and materials required for the aforesaid projects; and expatriation of the labor
personnel required for enforcing the aforesaid offshore projects".

INSURANCES - The policies of assurance and insurance in connection with the TTR
Business and the Purchased Assets and the Employees.

LEASE(S) - The lease(s) or tenancy agreement(s) between the Landlord (as therein
defined) and the Seller by which the premises used by the TTR Business was let
to the Seller.

LEASED PROPERTIES - All the real properties used by the TTR Business leased by
the Seller, particulars of which are set out in this Agreement.

LOSSES - All losses, liabilities, costs (including, without limitation, legal
costs arising out of any disputes involving any third party), charges and
expenses.

MANAGEMENT ACCOUNTS - The unaudited balance sheet of the Seller as at the
Management Accounts Date and the unaudited statements of profit and loss and
cash flow of the Seller for the period commencing from December 31, 2004 and
ended on the Management Accounts Date prepared in a manner consistent with past
practice.

MANAGEMENT ACCOUNTS DATE - The date of Closing.

M&A REGULATIONS - The Tentative Provisions Regarding Merger with, and
Acquisition of, Domestic Enterprises by Foreign Investors, promulgated by the
Ministry of Foreign Trade and Economic Cooperation, State Administration of
Taxation, State Administration for Industry and Commerce and State
Administration of Foreign Exchange on March 7, 2003, and effective as of April
12, 2003.

MATERIAL ADVERSE CHANGE - Any material adverse change in the business, assets or
position (financial, trading or otherwise), profits or prospects of the TTR
Business or any event or circumstance that may result in such a material adverse
change. Without prejudice to the generality of the foregoing and to the extent
that any adverse change or series of adverse change can be quantified, any
adverse change to the extent of more than USD500,000 or series of adverse change
to the aggregate extent of more than USD500,000 shall be deemed to be a material
adverse change.

OWNED PROPERTIES - All the real properties used by the TTR Business owned by the
Seller.

                                       35
<PAGE>

PRC - People's Republic of China

PROPERTIES - The Leased Properties and Owned Properties set out in this
Agreement.

PURCHASER - Cooper Chengshan (Shandong) Tire Company Limited, a Sino-foreign
limited liability company registered and incorporated under the laws of the PRC,
with its registered address at No. 99, Qingshan Road West, Rongchen City,
Shandong Province, PRC.

PURCHASED ASSETS - The meaning set forth in Article 2.1

REGISTRATION AUTHORITY - The State Administration of Industry and Commerce, or
its local division or any successor government institution or agency empowered
to issue a Business License to the Purchaser.

RENMINBI or RMB - The lawful currency of the PRC

SELLER - Shandong Chengshan Tire Company Limited by Shares. A company limited by
shares registered and incorporated under the laws of the People's Republic of
China, with its registered address at No. 98, Nanshan Road North, Rongchen City,
Shandong Province, People's Republic of China.

TAX AUTHORITY - Any local, municipal, governmental, provincial, State or fiscal,
revenue, customs or excise authority, body, agency or official in China having
or purporting to have power or authority in relation to Tax, including without
limitation the PRC State Administration for Taxation or any other relevant
fiscal authority in China.

TAXATION/TAX - All taxes, charges, duties, imposts, fees, levies or other
assessments, and all estimated payments thereof, including without limitation
income, business profits, property, sales, use, value added taxes (VAT),
environmental, franchise, customs, import, payroll, transfer, gross receipts,
withholding, social security, as well as stamp duties and other costs, imposed
by any Tax Authority, or any subdivision or agency thereof, and any interest and
penalty relating to such taxes, charges, fees, levies or other assessments.

WARRANT(IES) - the warranties, representations, and undertakings stated in
Article 9.

                                       36<PAGE>

                                                                EXHIBIT 10(xxxi)

================================================================================

                   SINO-FOREIGN EQUITY JOINT VENTURE CONTRACT

                                       FOR

                   RONGCHENG CHENGSHAN STEEL CORD COMPANY LTD

                                 BY AND BETWEEN

                         CHENGSHAN GROUP COMPANY LIMITED

                                       AND

                       CTB (BARBADOS) INVESTMENT CO. LTD.

================================================================================

                                OCTOBER 27, 2005

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
CHAPTER                                                                     PAGE
-------                                                                     ----
<S>                                                                         <C>
CHAPTER 1      DEFINITIONS...............................................    01

CHAPTER 2      PARTIES TO THE CONTRACT...................................    01

CHAPTER 3      ESTABLISHMENT OF THE JOINT VENTURE........................    02

CHAPTER 4      PURPOSE AND BUSINESS SCOPE OF THE JOINT VENTURE...........    03

CHAPTER 5      TOTAL INVESTMENT AND REGISTERED CAPITAL...................    03

CHAPTER 6      REPRESENTATIONS AND WARRANTIES............................    05

CHAPTER 7      RESPONSIBILITIES OF THE PARTIES...........................    06

CHAPTER 8      BOARD OF DIRECTORS........................................    08

CHAPTER 9      OPERATION AND MANAGEMENT..................................    11

CHAPTER 10     LABOR MANAGEMENT..........................................    13

CHAPTER 11     FINANCIAL AFFAIRS AND ACCOUNTING..........................    14

CHAPTER 12     PROFIT DISTRIBUTION.......................................    15

CHAPTER 13     TAXATION AND INSURANCE....................................    16

CHAPTER 14     PURCHASE OF MATERIALS AND SALE OF PRODUCTS................    16

CHAPTER 15     CONFIDENTIALITY AND NON-COMPETE...........................    16

CHAPTER 16     DURATION, TERMINATION AND LIQUIDATION.....................    18

CHAPTER 17     BREACH OF CONTRACT........................................    22

CHAPTER 18     FORCE MAJEURE.............................................    22

CHAPTER 19     DISPUTE RESOLUTION........................................    23

CHAPTER 20     GOVERNING LAW & CHANGE OF LAW.............................    24

CHAPTER 21     EFFECTIVE DATE OF THE CONTRACT............................    24

CHAPTER 22     MISCELLANEOUS PROVISIONS..................................    24

APPENDIX 1     DEFINITIONS AND INTERPRETATION............................    28

APPENDIX 2     EQUITY TRANSFER/PLEDGE RULES..............................    32

APPENDIX 3     SHARE PURCHASE AGREEMENT                                      35
</TABLE>

<PAGE>

                          EQUITY JOINT VENTURE CONTRACT

This Sino-foreign Equity Joint Venture Contract (this "CONTRACT") is made and
entered into in the People's Republic of China ("CHINA" or "PRC") on this 27th.
day of October, 2005, in accordance with the PRC Sino-foreign Equity Joint
Venture Law (the "JOINT VENTURE Law") and other relevant PRC laws and
regulations, by and among:

(1)   CHENGSHAN GROUP COMPANY LTD., a limited liabilities company duly organized
      and existing under the laws of the PRC with its legal address at No 98,
      North Nan Shan Road, Rongcheng City, Shandong Province, PRC ("PARTY A");
      and

(2)   CTB (BARBADOS) INVESTMENT CO. LTD., a company duly organized and existing
      under the laws of [Barbados] with its legal address at Chancery House,
      High Street, Bridgetown, Barbados, W. I. ("PARTY B").

(Each party is hereinafter individually referred to as a "PARTY" and
collectively as the "PARTIES".)

WHEREAS:

(A)   On the date of this Contract, Party A and Mr. Teng Liu-zhi [CHINESE
      CHARACTERS] ("MR. TENG") are the existing shareholders of Rongcheng
      Chengshan Steel Cord Co., Ltd. (the "COMPANY"), a limited liability
      company duly organized and existing under the laws of the PRC;

(B)   Party A will purchase from Mr. Teng, and Mr. Teng has agreed to sell to
      Party A, the Company's equity interests owned by Mr. Teng. Therefore,
      Party A will own all the equity interests of the Company prior to the
      Completion Date (as such term defined in the Share Purchase Agreement);

(C)   Party A has agreed to sell to Party B, and Party B has agreed to purchase
      from Party A, a portion of twenty five percent (25%) of the equity
      interest of the Company in accordance with the terms and conditions of the
      Share Purchase Agreement entered into among Party A, Party B and the
      Company on the date of this Contract; and

(D)   In accordance with the principles of equality and mutual benefit, the
      Parties have held friendly negotiations in relation to the terms and
      conditions for converting the Company from a domestic limited liability
      company into a Sino-foreign equity joint venture.

NOW, THEREFORE, the Parties hereby agree as follows:

                              CHAPTER 1 DEFINITIONS

Unless the terms or context of this Contract provide otherwise, capitalized
terms used herein without definition have the meanings assigned to them in
Appendix 1 attached to this Contract.

                        CHAPTER 2 PARTIES TO THE CONTRACT

2.1   The Parties. The Parties to this Contract are as follows:

                                       1
<PAGE>

      (1)   Party A:                      Chengshan Group Company Ltd.

            Country of Registration:      PRC

            Legal Address:                No. 98, Nanshan Road North, Rongcheng
                                          City, Shandong Province, PRC

            Current Legal Representative: Che Hong-Zhi

            Nationality:                  Chinese

      (2)   Party B:                      CTB (BARBADOS) INVESTMENT CO. LTD.

            Country of Registration:      Barbados

            Legal Address:                Chancery House, High Street,
                                          Bridgetown, Barbados, W. I.

            Current Legal Representative: Harold C. Miller

            Nationality:                  U.S.A.

                  CHAPTER 3 ESTABLISHMENT OF THE JOINT VENTURE

3.1   Establishment of the Joint Venture. In accordance with the Joint Venture
      Law and other relevant PRC laws and regulations, the Parties hereby enter
      into this Contract for the establishment of the Joint Venture as a
      Sino-foreign equity joint venture in the form of a limited liability
      company.

3.2   Joint Venture Name, Legal Address.

      (1)   The name of the Joint Venture in English is "Rongcheng Chengshan
            Steel Cord Company Ltd."

            The name of the Joint Venture in Chinese is [CHINESE CHARACTER]

      (2)   The legal address of the Joint Venture is Chengshan Road, Rongcheng
            City, Shandong Province, PRC.

3.3   Limited Liability Company. The Joint Venture shall be organized as a
      company with limited liability under PRC law, liable for its own debts
      with its own assets. The liability of each Party shall be limited to the
      amount of the Registered Capital expressly subscribed by such Party. No
      Party shall be obligated at any time to provide any funds to, or on behalf
      of, the Joint Venture by way of capital contribution, loan, advance,
      guarantee or otherwise, except as specifically provided in this Contract,
      or as otherwise agreed to in writing by the Parties. The Parties shall not
      be liable for the debts of the Joint Venture, unless otherwise
      specifically agreed in writing between a particular creditor and the Party
      or Parties concerned. Subject to the terms and conditions of this
      Contract, the profits, risks and losses of the Joint Venture shall be
      shared by the Parties in proportion to their respective contributions to
      the Registered Capital.

                                       2
<PAGE>

3.4   PRC Law. The activities of the Joint Venture shall be governed by, and its
      legal rights and operational autonomy shall be protected in accordance
      with, the laws and regulations of the PRC.

            CHAPTER 4 PURPOSE AND BUSINESS SCOPE OF THE JOINT VENTURE

4.1   Purpose of Joint Venture. The purpose of the Joint Venture is to use
      advanced technology and management methods to develop, manufacture and
      sell the Products on the international and domestic markets and to earn a
      satisfactory return on investment for the Parties.

4.2   Scope of Business. The Joint Venture's scope of business shall be to
      design, develop, manufacture, and process (consuming both domestic and
      imported materials) steel cords and tire bead wires; provide technical
      support and after sales service for such products; and market and sell
      such products.

                          CHAPTER 5 REGISTERED CAPITAL

5.1   Registered Capital. The Registered Capital of the Joint Venture shall be
      Renminbi one hundred and thirty million (RMB(Y)130,000,000).

5.2   Schedule for Capital Contributions. For avoidance of doubt, the Parties
      hereby agree that (i) conversion of the Party A's equity interest of the
      Company into its Percentage Interest in the Registered Capital of the
      Joint Venture on the Establishment Date; and (ii) completion of Party B's
      payment of the Transaction Price (as such term defined in the Share
      Purchase Agreement) pursuant to the payment schedule stipulated in Article
      3.1 under the Share Purchase Agreement shall be deemed as completion of
      capital contribution of the Parties to the Joint Venture.

5.3   Conditions Precedent to the Contribution of Registered Capital.

      The Parties' contribution to the Registered Capital of the Joint Venture
      pursuant to Article 5.2 hereof shall be conditioned on the satisfaction of
      all of the following:

      (1)   Party A has acquired all the equity interests of the Company;

      (2)   the Examination and Approval Authority has issued a Certificate of
            Approval, and any required changes to this Contract have been agreed
            to in writing by the Parties;

      (3)   a Business License has been granted to the Joint Venture which
            authorizes the full scope of business of the Joint Venture described
            in Article 4.2 or any required changes thereto have been agreed to
            in writing by the Parties; and

      (4)   all Parties have obtained corporate approvals in respect of this
            Contract from their respective board of directors as may be
            necessary.

                                       3
<PAGE>

5.4   Capital Contribution Verification and Certificate. An accountant
      registered in the PRC shall be engaged by the Joint Venture to verify the
      respective capital contributions of each Party and provide a capital
      verification report(s) accordingly. The Joint Venture, upon the receipt of
      a satisfactory capital verification report, shall issue a capital
      contribution certificate to the relevant Party. This certificate shall
      include the following items: name of the Joint Venture; the Establishment
      Date; the names of the Parties and the amount of their respective capital
      contributions; the date on which the capital contributions were made; and
      the date of issuance of the capital contribution certificate. Each capital
      contribution certificate shall be signed by the Chairman and the
      Vice-Chairman of the Joint Venture. The capital contribution certificates
      shall only certify the investment of each Party and shall not be deemed as
      a note or other negotiable instrument.

5.5   Financing. Subject to the terms and conditions of this Contract, to the
      greatest extent permitted by relevant law, the Joint Venture may finance
      its operations and capital needs by way of loans, including but not
      limited to shareholder loans, loans from such banks, other financial
      institutions or qualified lenders inside or outside of China and upon such
      terms and subject to such conditions as may be approved by the Board.

      Party A hereby undertakes to appropriately support, and to the extent
      necessary, provide a loan at an amount of US$ 6,400,000 to the Joint
      Venture as soon as practicable upon the Completion (as such term defined
      in the Share Purchase Agreement), which shall have a term of at least 10
      years bearing interest at the prevailing market rate and will be
      subordinated to the claims against and liabilities incurred by the Joint
      Venture.

5.6   Increase of Registered Capital. The Registered Capital of the Joint
      Venture may be increased by a unanimous resolution of the Board, which
      resolution shall stipulate the timing and other terms of such increase,
      with such increase subject to the approval of the Examination and Approval
      Authority and registration with the Registration Authority. If any Party
      chooses not to participate in any such additional investment in the Joint
      Venture, the other Party shall have the option to make the additional
      contribution to the Joint Venture's Registered Capital and the ownership
      percentages of the Parties' equity interests in the Joint Venture shall be
      adjusted accordingly.

5.7   Transfer of Equity Interests.

      (1)   If one Party wishes to transfer all or part of its Percentage
            Interest in the Joint Venture to any third party, it shall obtain
            the written consent of (including waiver of preemptive rights by)
            the other Party, and the transfer shall be presented to the
            Examination and Approval Authority for approval. The Party agree to
            be bound by the detailed rules set forth in Appendix 2 attached to
            this Contract, which rules are to implement the principle described
            in the preceding sentence.

5.8   Share Purchase. On the date of this Contract, Party A and Party B shall
      enter into a share purchase agreement (the "SHARE PURCHASE AGREEMENT") in
      substantially the form attached as Appendix 3 hereto, pursuant to which
      Party A has agreed to sell to Party B, and Party B has agreed to purchase
      from Party A, twenty five percent (25%) of the equity interest of the
      Company in accordance with the terms and conditions therein.

                                       4
<PAGE>

                    CHAPTER 6 REPRESENTATIONS AND WARRANTIES

6.1   Representations and Warranties. Each Party hereby represents and warrants
      that, as of the date of this Contract and as of a date on which a Party
      makes a capital contribution to the Joint Venture in accordance with
      Article 5.2 herein, it:

      (1)   has the capacity and authority to enter into this Contract and to
            perform its obligations hereunder, and is duly organized and validly
            existing under the laws of the PRC in the case of Party A, and under
            the laws of Barbados in the case of Party B;

      (2)   is not a party to, bound by or subject to any contract, instrument,
            charter or by-law provision, statute, regulation, order, judgment,
            decree or law which would be violated, contravened or breached by,
            or under which any default would occur as a result of, the execution
            and delivery by such Party of this Contract or the performance by
            such Party of any of the terms of this Contract, or which restricts
            such Party from entering into this Contract or performing its
            obligations and abiding by the terms hereunder;

      (3)   has duly authorized, executed and delivered this Contract and that
            this Contract constitutes a legal, valid and binding obligation
            enforceable in accordance with its terms;

      (4)   will contribute capital or transfer shares in a manner which does
            not conflict with, violate or result in a breach of, any of the
            terms, conditions or provisions of any law, regulation, order, writ,
            injunction, decree, determination or award of any court,
            governmental department, board, agency or instrumentality or any
            arbitrator, or result in the creation or imposition of any lien,
            charge, security interest or encumbrance of any nature whatsoever
            upon such capital or shares;

      (5)   freely enters into this Contract and has not and will not hereafter
            incur any obligations or commitments of any kind which would in any
            way hinder or interfere with its acceptance or performance of its
            obligations hereunder; and

      (6)   (i) has carefully read the entire Contract including the Appendices
            hereto; (ii) fully understands all of the terms, conditions,
            restrictions and provisions set forth in this Contract, (iii) agrees
            that the terms, conditions, restrictions and provisions herein are
            necessary for the reasonable and proper protection of the business
            of the Joint Venture and the other Party, and (iv) acknowledges that
            each such term, condition, restriction and provision is fair and
            reasonable with respect to the subject matter thereof.

6.2   Representations and Warranties in Respect of the Company's Equity
      Interest. In respect of the Company's equity interest relating to the
      share purchase specified in Article 5.8 hereof, Party A represents,
      warrants and undertakes to Party B, as of the date of this Contract and as
      of the Completion Date (as such term defined in the Share Purchase
      Agreement), those representations, warranties and undertakings set forth
      in the Share Purchase Agreement are true, accurate and complete.

6.3   Cure and Indemnification Obligations.

                                       5
<PAGE>

      (1)   In case of any breach of the Contract by any Party, it shall, in
            accordance with the direction of the non-breaching Party within
            thirty (30) days after receiving a notice of the non-breaching Party
            concerning any breach, take all necessary actions to cure such
            breach.

      (2)   Each Party agrees to indemnify and hold the other Party and the
            Joint Venture harmless from and against any and all claims, losses,
            damages, and costs arising out of any of its breach of any of its
            covenants or representations and warranties contained herein, .

                    CHAPTER 7 RESPONSIBILITIES OF THE PARTIES

7.1   Party A's Responsibilities. In addition to its other obligations under
      this Contract, Party A shall be responsible for the following matters:

      (1)   Providing capital contributions in accordance with the terms and
            conditions of this Contract;

      (2)   Using its best endeavors (acting at all times in close consultation
            with Party B) to assist the Joint Venture to:

            (a)   obtain all necessary governmental approvals and completing all
                  required registrations for the establishment and operation of
                  the Joint Venture;

            (b)   liaise with PRC national, provincial, municipal or local
                  governmental authorities and other relevant institutions or
                  organizations;

            (c)   obtain the most preferential tax, customs, foreign exchange
                  and other favorable treatment that are or may become available
                  to the Joint Venture and/or the Parties under relevant
                  national and local laws and regulations of the PRC; and

            (d)   procure necessary equipment, materials, articles for office
                  use, means of transportation, telecommunications facilities
                  and other public utilities, in accordance with the Joint
                  Venture's request.

      (3)   Using its best endeavors (acting at all times in close consultation
            with Party B) to assist the Joint Venture to register with the
            relevant tax bureau, to open such foreign exchange and RMB bank
            accounts, assist the Joint Venture with all required foreign
            exchange approvals, and assist the Joint Venture in applying for all
            approvals required to remit to Party B in foreign exchange
            distributable profits and all other payments required to be paid to
            Party B;

      (4)   Providing necessary assistance to the Joint Venture in recruiting
            suitable management personnel, technical personnel and other
            necessary employees to be employed by the Joint Venture;

      (5)   Assisting the Joint Venture to contact banks and other financial
            institutions inside the PRC and hold discussions with them with
            respect to the raising of any loans required by the Joint Venture;

                                       6
<PAGE>

      (6)   Assisting foreign workers, staff, and personnel (including
            Directors, managers, technicians, and contractors appointed or
            selected by Party B) in obtaining PRC visas and work permits for
            travel to China directly related to the operation of the Joint
            Venture if requested by Party B;

      (7)   Be responsible for any environmental pollution, fines, charges or
            losses caused by it prior to the Establishment Date, and indemnify
            the Joint Venture for any financial burden and/or losses arising out
            of any contamination caused by it prior to the Establishment Date;

      (8)   Providing a shareholder loan to the Joint Venture according to
            Article 5.5 herein; and

      (9)   Assisting with and carrying out other relevant matters as may be
            reasonably requested by the Board from time to time.

7.2   Responsibilities of Party B. In addition to its other obligations under
      this Contract, Party B and shall be responsible for the following matters:

      (1)   Providing capital contributions in accordance with the terms and
            conditions of this Contract;

      (2)   Providing any necessary assistance to the Joint Venture's
            recruitment of suitable expatriate management personnel, technical
            personnel and other necessary expatriate employees to be employed by
            the Joint Venture on the basis of merit;

      (3)   Assisting the Joint Venture to contact banks and other financial
            institutions outside of the PRC and hold discussions with them with
            respect to the raising of any foreign exchange loans required by the
            Joint Venture;

      (4)   Assisting the Joint Venture in training key staff and employees;

      (5)   Seconding relevant management personnel, technical personnel and
            other necessary staff to work for the Joint Venture as per the Joint
            Venture's request; and

      (6)   Assisting with and carrying out other relevant matters requested by
            the Joint Venture from time to time.

7.3   Related Party Transactions. The Parties shall procure that all related
      party transactions with respect to the Joint Venture shall be transparent
      to the Parties and be conducted on an arm's length basis, provided
      however, it is the intention of the Parties that if the price, quality and
      delivery of the Products meet the requirements of the Tire JVs, the Tire
      JVs will purchase from the Joint Venture. Any significant purchases
      (including purchases of raw materials) by the Joint Venture from the
      Parties or their Affiliates shall be approved by the Board in accordance
      with Article 8.3 herein.

                                       7
<PAGE>

                          CHAPTER 8 BOARD OF DIRECTORS

8.1   Formation of the Board.

      (1)   The Board shall be the highest authority of the Joint Venture. It
            shall discuss and determine all strategic business and financial
            issues and operational issues of the Joint Venture in accordance
            with the provisions of this Contract and the Articles of
            Association.

      (2)   The Board shall consist of three (3) Directors, of which two (2)
            shall be appointed by Party A and one (1) shall be appointed by
            Party B. At the time this Contract is executed and when replacement
            Directors are appointed, the Parties shall notify one another in
            writing of the names and addresses of its appointees, together with
            a brief curriculum vitae and a list of other official functions, if
            any, that the relevant appointees will concurrently carry out for
            the Joint Venture. Each Party shall cause the Directors appointed by
            it to perform the obligations specified in this Contract and as
            required under relevant PRC laws and regulations.

      (3)   Directors shall each be appointed for terms of four (4) years, and
            may serve consecutive terms if reappointed by the Party originally
            appointing such Director.

      (4)   Any Party may, at any time with or without cause, remove and replace
            a Director that it has appointed by written notice to the Joint
            Venture and to the other Party. If a seat on the Board is vacated
            due to the retirement, resignation, illness, disability or death of
            a Director or by the removal of such Director by the original
            appointing Party, the Party which originally appointed such Director
            shall appoint a successor to serve the remainder of such Director's
            term.

      (5)   If either Party or the Board has reason to believe that a Director
            has materially breached his/her duties as a Director (provided such
            breach appear to be supported by reasonable grounds as determined by
            a simple majority of the Directors), or has been convicted of
            committing an act or omission constituting fraud, theft,
            embezzlement or other violations of relevant PRC law, the Board may
            remove the relevant Director immediately. Following any such
            removal, the Party that originally appointed the relevant Director
            shall appoint a successor to serve the remainder of such Director's
            term.

8.2   Chairman and Vice Chairman of the Board.

      (1)   The Board shall have one (1) Chairman and one (1) Vice Chairman. A
            Director appointed by Party A shall serve as Chairman of the Board,
            and a Director appointed by Party B shall serve as Vice Chairman of
            the Board.

      (2)   The Chairman of the Board shall be the sole legal representative of
            the Joint Venture. The Chairman shall perform his or her duties and
            responsibilities within the scope of authority delegated by the
            Board, and in accordance with this Contract and relevant PRC laws.
            Without prejudice to Article 8.1(4) above, when the Chairman is
            temporarily unable to perform his or her responsibilities, he or she
            may designate in writing the Vice Chairman or any other Director to
            represent the Joint Venture in such capacity within such temporary
            period.

                                       8
<PAGE>

8.3   Powers of the Board.

      (1)   Each Director shall have one vote on any matter subjected to Board
            vote. Neither the Chairman nor the Vice-Chairman, in their capacity
            as such, shall be entitled to have any extra vote in any meeting of
            the Board. This provision is without prejudice to Article 8.4(6) on
            proxies.

      (2)   The quorum necessary for a meeting of the Board shall be two thirds
            (2/3) of the Directors. This requires at least two (2) Directors to
            be in attendance for a quorum, with at least one Director appointed
            by each Party at presence.

      (3)   The following matters require a decision by the Board supported by
            the affirmative vote of all Directors present and eligible to vote
            (or represented in accordance with Article 8.4(6) in a duly
            constituted meeting of the Board or as per Article 8.4(9):

            (a)   any amendment of the Articles of Association;

            (b)   termination of this Contract;

            (c)   dissolution of the Joint Venture;

            (d)   increase or decrease of the Registered Capital of the Joint
                  Venture;

            (e)   amalgamation or merger of the Joint Venture with any other
                  company, association, partnership or legal entity;

            (f)   division or change in the form of legal organization of the
                  Joint Venture.;and

            (g)   annual capital expenditure budget.

      (4)   The Parties agree that all matters except those listed in Article
            8.3(3) above can be decided by the Board supported by a simple
            majority of Directors present and eligible to vote (or represented
            in accordance with Article 8.4(6)) in a duly constituted meeting of
            the Board or as per Article 8.4(9).

      (5)   The Board shall by resolution supported by a simple majority of
            Directors formally authorize the General Manager and/or other
            Persons with necessary powers to implement decisions of the Board in
            accordance with this Contract, and, more generally, to conduct the
            day-to-day business of the Joint Venture in accordance with the then
            current business plan.

      (6)   The Board shall adopt rules and procedures regarding (a) provision
            of guarantee or security by the Joint Venture to any Person, (b)
            creation of any security interest on any property of the Joint
            Venture, (c) custody of the Joint Venture's chops, and (d) such
            other matters as the Board deems necessary.

8.4   Board Meetings.

                                       9
<PAGE>

      (1)   Board meetings shall be held at least twice a year. Meetings shall
            be held at the registered address of the Joint Venture or such other
            address in China or abroad as may be agreed by the Board. The first
            Board meeting shall be held no later than sixty (60) days after the
            Establishment Date.

      (2)   The agenda for Board meetings shall be determined by the Chairman of
            the Board, but shall include in any event the items proposed by
            other members of the Board.

      (3)   Board Meetings shall require prior written notice to all Directors
            of not less than four (4) weeks (unless otherwise agreed unanimously
            by all the Directors) setting forth the date, time, place and
            agenda. Directors may waive their right to receive prior written
            notice of any meeting.

      (4)   Upon the written notice of the Chairman of the Board or upon written
            request of one third (1/3) or more of the Directors of the Joint
            Venture specifying the matters to be discussed, the Chairman of the
            Board shall within thirty (30) days convene an interim meeting of
            the Board, provided that a quorum will be present for such an
            interim meeting, whether in person or by proxy.

      (5)   The Chairman is responsible for convening and presiding over all
            Board meetings. If the Chairman is unable to convene and/or preside
            over a Board meeting, a Director designated in writing by the
            Chairman shall convene and/or preside over such Board meeting.

      (6)   Board meetings may be attended by Directors in person, by telephone
            or video conference, provided, however, that if a Director is unable
            to participate in a Board meeting, he/she shall issue a written
            proxy authorizing another Director or individual to attend the
            meeting on his/her behalf. A Director or other individual so
            entrusted shall have the same rights and powers as the Director who
            issued the proxy.

      (7)   Board meetings shall be duly convened if a quorum is constituted in
            attendance, in person or by proxy. In the event that the Directors
            appointed by any Party fail to attend a Board meeting resulting in a
            lack of a quorum, and such failure to attend is due to a dispute
            between the Directors or Parties, such Party shall be deemed to be
            in breach of this Contract, and Article 17 will become applicable.

      (8)   For the purpose of this clause, if a written resolution is executed
            in identical counterparts, such signed counterparts shall together
            be deemed to constitute a single resolution, effective on the day
            the last Director signs the relevant counterpart.

      (9)   Notwithstanding any other provisions herein, Board resolutions may
            be adopted by written consent by the Board in lieu of a meeting if
            the relevant resolutions are sent to all Directors and the
            resolutions are affirmatively signed and adopted by the number of
            Directors necessary to make such a decision as stipulated in Article
            8.3 above. Such written Board resolutions may consist of several
            counterparts in identical form each signed by one or more of the
            Directors. Such written Board re

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<PAGE>

            solutions shall be filed with the Board meeting minutes and shall
            have the same force and effect as a Board resolution adopted at a
            duly constituted and convened Board meeting.

      (10)  Board meetings shall be held in English and Chinese and all Board
            minutes and Board resolutions and agendas and other Board meeting
            documents shall be prepared and provided in both English and
            Chinese. The Chairman shall cause complete and accurate minutes (in
            English and Chinese versions) to be kept of all meetings (including
            meeting notices) and of matters addressed or raised at such
            meetings. Minutes of all Board meetings shall be circulated to all
            Directors promptly after each meeting. Any Director who wishes to
            propose any amendment or addition to the meeting minutes shall
            submit the same in writing to the Chairman not later than fifteen
            (15) days after receipt of the minutes, and the Chairman shall
            circulate such proposal to all the Directors. Any Director who
            wishes to object to the proposed amendment to the minutes shall
            submit the same in writing to the Chairman and all other Directors
            not later than fifteen (15) days after receipt of the proposed
            amendment, otherwise such proposed amendment shall be adopted and
            the minutes shall be amended accordingly. If the proposed amendment
            and relevant objection are not resolved within thirty (30) days of
            the Chairman's receipt of such objection, neither the proposal nor
            the objection shall be adopted but both would be noted as an
            attachment to the minutes. All Directors shall sign each page of the
            final minutes within sixty (60) days after receipt of same, and
            return such signed copy to the Joint Venture. The original minutes
            shall be kept on file with the Joint Venture and shall be available
            to any Director or their proxies for inspection or copying at any
            reasonable time.

      (11)  No remuneration shall be paid by the Joint Venture to any of its
            Directors in his/her capacity as such; provided, however, that in
            the event that a Director is concurrently an officer of the Joint
            Venture, such Director shall be entitled to remuneration for his/her
            service as an officer only. A Director may recover from the Joint
            Venture such expenses as are reasonably and properly incurred in
            connection with his/her attending the Board meetings or other
            activities of the Joint Venture where his/her presence is required.
            The Board shall establish a policy to implement this subsection.

                       CHAPTER 9 OPERATION AND MANAGEMENT

9.1   Management Organization

      (1)   The Joint Venture shall establish an operation and management team
            to be responsible for the Joint Venture's daily operation and
            management. Such team shall include the General Manager and such
            other personnel as determined by the Board of Directors (the
            "MANAGEMENT PERSONNEL").

      (2)   The General Manager and the Joint Venture Controller ("JV
            CONTROLLER") shall be appointed by the Board upon the nomination of
            Party A and the Vice General Manager shall be appointed by the Board
            upon the nomination of Party B. Each of the Management Personnel
            shall be appointed or removed by the General Manager, except that
            the Vice General Manager and JV Controller shall be appointed or
            removed by the Board. Any of the Management Personnel shall handle
            matters delegated to him or her by the General Manager and shall be

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<PAGE>

            responsible to the General Manager for the efficient implementation
            of such responsibilities.

      (3)   In the event that the General Manager, Vice General Manager or JV
            Controller is found incompetent, commits graft or serious
            dereliction of duty, he/she shall be dismissed by the Board.

9.2   Responsibilities of Management Personnel

      (1)   The responsibility of the General Manager shall be to carry out the
            various resolutions of the Board and to organize and direct the
            daily operation and management of the Joint Venture. The General
            Manager may consult with the Vice General Manager in dealing with
            material matters, but the General Manager shall have the authority
            to make final decisions.

      (2)   Subject to the terms and conditions imposed by the Board, the JV
            Controller shall be in charge of the day-to-day financial operations
            of the Joint Venture under the supervision of the General Manager,
            shall assist the General Manager in preparation of the documents set
            out in Article 9.2(5)(a)(1) below, and shall carry out the decisions
            of the Board and General Manager.

      (3)   With the exception that Management Personnel nominated by Party B
            may remain to be employees of Party B, the other Management
            Personnel shall be the full time employees of the Joint Venture and
            shall not, without prior approval by the Board, hold any managerial
            posts in other economic organizations while serving as an employee
            of the Joint Venture. Without prior approval by the Board,
            Management Personnel shall not hold any position in any economic
            organization or other entities competing with the Joint Venture
            except those affiliated to any Party which the Board confirms as
            being exceptions. If the General Manager or any other Management
            Personnel intends to resign from his or her position, such person
            shall be required to submit the resignation notice to the Board at
            least thirty (30) days prior to the intended departure date.

      (4)   The General Manager shall, within the scope of the authority
            conferred upon him/her by the Board, represent the Joint Venture in
            dealings with other parties, and appoint and dismiss subordinates.

      (5)   The General Manager shall be responsible for preparation of
            following documents (all in both Chinese and English languages):

            (a)   he/she shall prepare for submission to the Board for review
                  and approval, and upon such approval shall implement, the
                  following:

                  (i)   an annual operating plan, operating budget, marketing
                        and sales budget, financial budget, business and sales
                        performance targets for the Joint Venture;

                  (ii)  the organizational and managerial rules of the Joint
                        Venture;

                  (iii) any other documents or plans for the Joint Venture that
                        are deemed necessary by the Board.

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<PAGE>

            (b)   he/she shall submit any major revisions to such budgets, plans
                  or manuals for the Joint Venture to the Board for review and
                  approval prior to their implementation.

      (6)   The General Manager shall submit a quarterly production and sales
            report and quarterly financial statements for the Joint Venture to
            the Board. Such reports and statements shall be submitted in both
            Chinese and English languages within thirty (30) days following the
            close of the quarter to which such a report relates.

      (7)   When the General Manager thinks he is unable to carry out his
            duties, he may designate one of the Management Personnel to serve as
            the acting General Manager in accordance with the terms and
            conditions to be imposed or specified by the General Manager.

      (8)   The General Manager and all other Management Personnel and working
            personnel of the Joint Venture shall be required not to disclose any
            commercial secrets or trade secrets of the Joint Venture.

9.3   Qualifications of Management Personnel

      (1)   The General Manager and the other Management Personnel shall be
            skilled and qualified as for the management of the Joint Venture,
            and meet other qualifications and the performance criteria
            established by the Board.

      (2)   Compensation and other terms and conditions of employment for the
            General Manager and other Management Personnel shall be determined
            by the Board and provided in the employment contracts signed between
            the relevant individual and the Joint Venture. The Joint Venture
            shall bear the salary as well as proper compensation package of
            expatriate employees (if any).

9.4   Budget Control. Notwithstanding any provisions contained herein, any
      capital expenditure of the Joint Venture in excess of United States
      Dollars One Hundred Thousand (US$100,000) which is not included in the
      annual capital expenditure budget shall be pre-approved by Party B or its
      authorized representative.

                           CHAPTER 10 LABOR MANAGEMENT

10.1  Governing Principle. Matters relating to the recruitment, employment,
      management, dismissal, resignation, wages, welfare benefits, subsidies and
      other matters concerning the staff of the Joint Venture shall be
      determined by the Board in accordance with the labor laws of the PRC. The
      General Manager shall implement plans approved by the Board.

10.2  Working Personnel. Employees of the Joint Venture shall be employed in
      accordance with the provisions of this Contract, the Articles of
      Association, and the terms and conditions of the individual employment
      contracts concluded with each respective employee.

10.3  Compensation. In accordance with PRC laws and regulations concerning labor
      compensation, the General Manager shall implement a compensation system
      whereby

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<PAGE>

      employees are compensated in accordance with their technical ability,
      education, performance and position.

10.4  Confidentiality and Non-compete. The Joint Venture shall enter into
      Non-Disclosure and Non-Compete Contracts with each of its key employees,
      and the terms of such contract shall be determined by the Board. The Board
      may require the Joint Venture to enter into similar contracts with other
      employees.

10.5  Labor Union. Employees of the Joint Venture may establish a labor union in
      accordance with the Labor Union Law of the PRC (the "LABOR UNION LAW") and
      other laws and regulations relating to labor union activities of foreign
      invested enterprises. The Joint Venture shall allocate an ascertained
      amount of funds to the labor union in accordance with the published and
      effective laws and regulations in relation to labor union, which amount
      shall be determined by the Board in accordance with the applicable laws
      and regulations in China.

                   CHAPTER 11 FINANCIAL AFFAIRS AND ACCOUNTING

11.1  Accounting System.

      (1)   The Joint Venture shall maintain its books and record in accordance
            with accounting systems and procedures established in accordance
            with relevant PRC laws and regulations. Accounting systems and
            records in accordance with any international accounting rules
            preferred by Party B shall also be maintained to the full extent
            permitted by PRC law. The accounting systems and procedures to be
            adopted by the Joint Venture shall be submitted to the Board for
            approval. Once approved by the Board, the accounting systems and
            procedures shall be filed with the relevant government finance
            department and tax department for records. The debit and credit
            method, as well as the accrual basis of accounting, shall be adopted
            as the methods and principles for keeping accounts.

      (2)   Unless this Article 11.1 provides otherwise, all accounting books
            and financial statements of the Joint Venture, and all routine
            accounting records, vouchers, etc., shall be made in both English
            and Chinese if necessary.

      (3)   The Joint Venture shall adopt RMB as its standard bookkeeping base
            currency and shall also use US Dollar as supplementary bookkeeping
            currency. For purposes of preparing the Joint Venture's accounts and
            statements of the Parties' capital contributions, and for any other
            purposes where it may be necessary to effect a currency conversion,
            such conversion shall be made in accordance with the conversion rate
            published by and conversion method required by the State
            Administration of Foreign Exchange on the date of actual payment.

      (4)   Monthly and annual financial statements for the Joint Venture shall
            be prepared in both the Chinese and English languages, and in RMB
            and in United States Dollars. Such statements shall include at least
            the following: balance sheet, profit and loss statements, and cash
            flow statement, and shall be kept by and provided to each Party and
            to the relevant authorities as required by relevant PRC accounting
            regulations.

11.2  Auditing.

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<PAGE>

      (1)   At the expense of the Joint Venture, the Joint Venture's Auditor
            shall be appointed by the Board to conduct an audit of the annual
            financial statements and accounts of the Joint Venture. The Parties
            agree that the Joint Venture shall, within three (3) months after
            the end of a fiscal year, submit to the Parties an annual statement
            of final accounts (including the audited profit and loss statement,
            balance sheet, cash flow statement, and statement for retained
            earnings for the fiscal year), together with the audit reports of
            the Joint Venture's Auditor.

      (2)   Each Party shall have the right at any time to audit the entire
            accounts of the Joint Venture within thirty-six (36) months from the
            end of the period to be audited. At the end of such audit, the Party
            requesting such an audit may submit queries concerning the audit to
            the Board. The Board shall reply in written form within sixty (60)
            days after receipt of the queries concerning the audit. Reasonable
            access to the Joint Venture's financial records shall be given to
            such auditor and such auditor shall keep confidential all documents
            under his/her audit.

      (3)   When a Party conducts an audit pursuant to Article 11.2(2), it shall
            bear the expenses incurred and the responsibility for the appointed
            auditor in maintaining confidentiality of all the documents so
            audited.

11.3  Bank Account & Foreign Exchange Control. The Joint Venture shall open
      foreign exchange accounts and RMB accounts and handle foreign exchange
      transactions in accordance with relevant PRC laws and regulations. The
      Board shall determine the signatories required for any disbursements of
      funds from such accounts and shall establish internal control policies
      relating to these accounts.

11.4  Fiscal Year. The Joint Venture shall adopt the calendar year as its fiscal
      year, which shall begin on January 1 and end on December 31 of the same
      year. The first fiscal year of the Joint Venture shall commence on the
      Establishment Date and shall end on December 31 thereafter.

                         CHAPTER 12 PROFIT DISTRIBUTION

12.1  Allocation to Funds. After payment of income taxes by the Joint Venture,
      the Board shall determine the annual allocations from the after-tax net
      profits to set aside reserve funds, expansion funds and bonus and welfare
      funds for staff and workers in accordance with applicable PRC laws and
      regulations.

12.2  Dividend Policy. After payment of all payable income tax, and the
      allocation of funds pursuant to Article 12.1 hereof, the Board shall
      determine the annual dividend distribution of the Joint Venture to the
      Parties in proportion to their respective Percentage Interests each year.
      For the avoidance of doubt, the Joint Venture shall not, in any
      circumstances, obtain any additional borrowings from any bank or other
      third party for the purpose of financing dividend payment. All dividends
      payable to Party B shall be paid in US$. The Joint Venture shall bear any
      loss, gain or bank charges or other fees associated with the dividends
      payment.

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<PAGE>

                       CHAPTER 13 TAXATION AND INSURANCE

13.1  Income Tax, Customs Duties and Other Taxes. The Joint Venture and its
      employees shall pay taxes pursuant to relevant PRC laws and regulations.
      The Joint Venture shall use its best endeavors to apply for and obtain
      preferential treatment, including tax and customs benefits, permitted by
      the law.

13.2  Insurance. The Joint Venture shall maintain, in accordance with relevant
      PRC law, insurance as determined by the Board from time to time to cover
      the Joint Venture's assets, operations and other business activities.

              CHAPTER 14 PURCHASE OF MATERIALS AND SALE OF PRODUCTS

14.1  Purchase of Materials

      (1)   In meeting its requirements for materials, equipment, components,
            transportation vehicles and articles for office use, the Joint
            Venture will at its discretion purchase such items inside or outside
            the PRC to the maximum extent consistent with the efficient
            operation and quality standards of the Joint Venture.

      (2)   All the reasonable costs and expenses incurred by any Party in
            connection with the sourcing and purchase for the Joint Venture as
            stipulated in Article 14.1(1) shall be reimbursed by the Joint
            Venture.

14.2  Sale of Products

      (1)   The Joint Venture shall formulate and, with the approval of the
            Board, adopt both domestic and international sales plans for the
            Products. The Joint Venture shall market, distribute and sell its
            Products according to a pricing policy approved by the Board. The
            Joint Venture may appoint distributors and sale agents in different
            regions inside or outside the PRC, subject to the general terms and
            conditions of such appointment.

      (2)   In order for the convenience of distributing, marketing and selling
            the Products, the Joint Venture may establish branch offices inside
            or outside the PRC subject to authorization by the Board and the
            approval by the relevant authorities.

                   CHAPTER 15 CONFIDENTIALITY AND NON-COMPETE

15.1  Confidentiality.

      (1)   Except as otherwise specifically provided in this Article 15.1,
            neither any Party nor the Joint Venture shall divulge, disclose or
            communicate, or permit to be divulged, disclosed or communicated, to
            any unaffiliated third party in any manner, directly or indirectly,
            any Confidential Information, and each Party and the Joint Venture
            shall ensure that their respective Affiliates, officers, directors,
            employees (including, without limitation, individuals seconded
            thereto), agents and contractors (collectively "REPRESENTATIVES") do
            not divulge, disclose or

                                       16
<PAGE>

            communicate, or permit to be divulged, disclosed or communicated, to
            any unaffiliated third party in any manner, directly or indirectly,
            any Confidential Information. Confidential Information shall remain
            the exclusive and sole property of the relevant disclosing party
            (the "PROTECTED PARTY") and shall be promptly returned upon the
            request of the Protected Party.

      (2)   The Parties and the Joint Venture shall only disclose or permit to
            be disclosed Confidential Information to those of their respective
            Representatives who have a need to know such Confidential
            Information (and then shall only disclose such portion of the
            Confidential Information as is necessary) in order to consummate the
            transactions contemplated herein and to establish or conduct the
            Joint Venture's business and operations in the ordinary course. Each
            Party and the Joint Venture shall advise its Representatives of the
            confidentiality provisions hereunder, shall require relevant
            Representatives to sign agreements substantially similar to the
            Non-Disclosure and Non-Compete Contract, and shall be responsible to
            the Protected Party for any noncompliance by any such
            Representative.

      (3)   In the event that any Party, the Joint Venture, or any of their
            respective Representatives is required by applicable law or is
            validly ordered by a governmental entity having proper jurisdiction
            to disclose any Confidential Information, the affected party shall,
            as soon as possible in the circumstances, provide the Protected
            Party with prompt prior written notice of the disclosure request or
            requirement, and, if requested by the Protected Party, shall furnish
            to the Protected Party an opinion of legal counsel that the release
            of all such Confidential Information is required by applicable law.
            The proposed disclosing party shall seek, with the reasonable
            cooperation of the Protected Party if necessary, a protective order
            or other appropriate remedy and shall exercise best efforts to
            obtain assurances that confidential treatment will be accorded to
            any Confidential Information disclosed.

      (4)   The Parties and the Joint Venture shall take all other necessary,
            appropriate or desirable actions to preserve the confidentiality of
            the Confidential Information.

      (5)   This Article 15.1 and the obligations and benefits hereunder shall
            survive for a period of ten (10) years after the termination or
            expiration of this Contract or the termination, dissolution or
            liquidation of the Joint Venture or any of the Parties, provided
            that, however, any information concerning, directly or indirectly,
            the proprietary trade secrets of the Joint Venture or a Party shall
            be preserved in confidentiality and be entitled to the obligations
            and benefits hereunder in perpetuity.

15.2  Non-Compete. Party B hereby specifically undertakes that it shall, and
      shall cause its Affiliates or related companies, to refrain from directly
      or indirectly engaging in, whether by itself or through any individual or
      entity, any activities that competes with any business or activities of
      the Joint Venture anywhere in the PRC, during the period when it holds any
      Interest in the Joint Venture and for a period of five (5) years after it
      has ceased to hold any Interest in the Joint Venture.

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<PAGE>

                CHAPTER 16 DURATION, TERMINATION AND LIQUIDATION

16.1  Joint Venture Term and Extension. The term of the Joint Venture shall be
      fifty (50) years ("JOINT VENTURE TERM"), which shall commence on the
      Establishment Date. One (1) year prior to the expiration of the Joint
      Venture Term, the Parties may discuss the extension of such term. If the
      Parties agree and the Board approves, an application for such extension
      shall be submitted to the Examination and Approval Authority for approval
      no less than six (6) months prior to the expiration of the Joint Venture
      Term.

16.2  Termination.

      (1)   Unless extended in accordance with Article 16.1, this Contract shall
            terminate automatically upon the expiration of the Joint Venture
            Term.

      (2)   This Contract may be terminated at any time upon the written
            agreement of all of the Parties, in which case the Parties shall
            instruct the Directors to vote to liquidate the Joint Venture as per
            this Contract and the relevant laws and regulation of the PRC.

      (3)   A Party (the "NOTIFYING PARTY") shall have the right to terminate
            this Contract by providing written notice ("TERMINATION NOTICE") to
            the other Party if any of the following events occur:

            (a)   one or more of the conditions specified in Article 5.3 are not
                  met within three (3) months of the date of execution by the
                  Parties of this Contract, and no resolution is agreed upon
                  following consultations between the Parties to extend the
                  capital contribution schedule specified in Article 5.2 herein,
                  or the extended capital contribution schedule would go beyond
                  the required time period under the relevant PRC laws and
                  regulations;

            (b)   a Party (not being the Notifying Party) materially breaches
                  the obligations contained in this Contract, or any of its
                  representations or warranties is or becomes untrue in any
                  material respect, and has failed to remedy such breach within
                  sixty (60) days of a written notice from the Notifying Party;

            (c)   a Party (not being the Notifying Party) is or becomes a party
                  to, bound by or held liable by any orders, decisions,
                  judgments, awards, decrees or rulings of any courts, arbitral
                  tribunals, governmental or regulatory agencies, as a result of
                  such Party's breach in any way of any applicable legislation,
                  laws, regulations, statutes, rules, guidelines, notices, or
                  circulars of any statutory or regulatory bodies, and said
                  breach would affect or change the intent or mind of the other
                  Party to enter into this Contract or maintain the partnership
                  with such Party, or would in any way hinder or interfere with
                  the execution or delivery by the other Party of this Contract
                  or its performance of any of the terms and obligations hereof;

            (d)   any Party (not being the Notifying Party) becomes bankrupt, or
                  is the subject of proceedings for liquidation or dissolution,
                  or ceases to carry on business or becomes unable to pay its
                  debts as they come due, in which

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<PAGE>

                  case the relevant Party shall immediately notify the other
                  Party in respect of such situation;

            (e)   the Joint Venture becomes bankrupt, or is the subject of
                  proceedings for liquidation or dissolution, or ceases to carry
                  on business or becomes unable to pay its debts as they come
                  due;

            (f)   the conditions or consequences of any event of Force Majeure
                  continue for a period of three (3) months without any
                  equitable solution agreed to by the Parties;

            (g)   all the members of the Board are unable to reach an agreement
                  on the business plans for the Joint Venture or the issues not
                  specified in the business scope of the Joint Venture as
                  defined in Article 4.2 above and such deadlock cannot be
                  resolved after a period of ninety (90) days;

            (h)   the Joint Venture's Business License is revoked, suspended, or
                  amended (in a manner not agreed to in writing by the Parties)
                  or in any other situation such that the Joint Venture is
                  precluded or prevented from carrying out its business; or

            (i)   the Joint Venture fails to obtain external finance such that
                  the Joint Venture is substantially prevented from implementing
                  its business plan, except if the Board decides to continue.

16.3  Subsequent Obligations

      (1)   Where a Termination Notice has been served in the circumstances set
            out in Article 16.2(3)(b) or Article 16.2(3)(c), the non-breaching
            Party shall have the option, but not the obligation, to sell its
            Percentage Interest in the Joint Venture to the breaching Party in
            accordance with the following procedures:

            (a)   within 30 days of the issuance of the Termination Notice, the
                  Board of Directors shall, by a majority vote appoint an
                  internationally recognized accounting firm or other appraiser
                  (an "APPRAISER") to determine the Book Value of the Joint
                  Venture. Such Appraiser shall complete its assessment of the
                  Book Value of the Joint Venture and notify the Parties thereof
                  in writing within 60 days of their appointment.

            (b)   upon completion of the determination of the Book Value of the
                  Joint Venture, the non-breaching Party shall have the option
                  to sell its share of the Registered Capital of the Joint
                  Venture to the breaching Party at a price equal to:

                  Book Value x 80% the non-breaching Party's share of the
                  Registered Capital at the time of valuation

            (c)   The purchasing Party shall have the right to designate a third
                  party enterprise to purchase all or part of the non-breaching
                  Party's Percentage Interest for the price (or portion thereof)
                  set forth in Article 16.3(1)(b) hereof.

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<PAGE>

            (d)   The Parties agree to take all such steps as may be required to
                  effect the sale of the selling Party's Interest in the Joint
                  Venture, including obtaining all necessary government
                  approvals for the transfer of the Interest to the purchasing
                  Party (or its designee) and causing their respective Board
                  appointees to approve such transfer, and executing all
                  documents necessary or advisable to effect such transfer. If
                  such government approvals are not obtained within ninety (90)
                  days after the signing of the interest transfer agreement
                  between the selling Party and the purchasing Party (or its
                  designee), the exercise of the option shall be null and void
                  and the Joint Venture shall be liquidated, if so proposed by
                  the non-breaching Party, in accordance with the provisions of
                  Article 16.4 hereof. Such liquidation shall not prejudice the
                  rights that the non-breaching Party may otherwise have against
                  the breaching Party.

      (2)   Where a Termination Notice has been served in any circumstances
            except as set out in Article 16.2(3)(b) and Article 16.2(3)(c), the
            following shall apply:

            (a)   Party B shall have the option, but not the obligation, to sell
                  its Percentage Interest in the Joint Venture to Party A at a
                  price equal to the Book Value as determined by the Auditor of
                  such Percentage Interest at the time To exercise its right,
                  Party B must provide a written notice of its intention thereof
                  ("NOTICE") within fifteen (15) days after the Termination
                  Notice was issued. The Parties shall then complete the sale of
                  Percentage Interest of Party B to Party A within the longer of
                  the period of ninety (90) days after receipt of the Notice or
                  fifteen (15) days after such sale of Percentage Interest is
                  duly approved by the Examination and Approval Authority and
                  registered with the Registration Authority. If Party B fails
                  to exercise its right to sell its Percentage Interest to Party
                  A, Party A shall have the right to purchase Party B's
                  Percentage Interest at a price equal to the Book Value of such
                  Percentage Interest at the time. To exercise its right, Party
                  A shall provide a Notice to Party B within the 15-day period
                  starting from the sixteenth (16th) day after the Termination
                  Notice is issued or a later date on which Party A learns that
                  Party B will not exercise its right stated above. The Parties
                  shall then complete the sale of Party B's Percentage Interest
                  to Party A within the longer of the period of ninety (90) days
                  after receipt of the Notice or fifteen (15) days after such
                  sale of Percentage Interest is duly approved by the
                  Examination and Approval Authority and registered with the
                  Registration Authority.

            (b)   If no Party wishes to exercise its right as stated in Article
                  16.3(2)(a), the Parties shall use all reasonable efforts to
                  sell the Joint Venture as a going concern to one or more third
                  parties, either as a single transaction or through more than
                  one transaction. In this Article 16.3(2), third parties
                  include Affiliates. The Parties shall cooperate and cause the
                  Directors appointed by them to cooperate in any required
                  re-structuring of the Joint Venture prior to such sale if
                  necessary or desirable to facilitate the same or optimize the
                  salability of the Joint Venture and the business conducted by
                  it and the sales proceeds for the Parties. The price and terms
                  of such sale shall be agreed between the third party(ies)
                  concerned and the Parties.

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<PAGE>

      (3)   In the event that Party B together with any of its Affiliates cease
            to have any interest in the Registered Capital of the Joint Venture,
            each Party shall take all steps necessary to ensure that the name of
            the Joint Venture is immediately changed so that it no longer
            contains any reference to "Cooper" in English or the local Chinese
            language equivalent of such name.

      (4)   Termination of this Contract shall not affect the rights and
            obligations of the Parties and the Joint Venture incurred prior to
            the termination or caused by such termination. If termination of
            this Contract is caused by a Party's breach of any of its
            obligations under this Contract, then such Party shall compensate
            the other Party and the Joint Venture for all of their losses
            resulting from such breach.

16.4  Liquidation.

      (1)   Liquidation of the Joint Venture shall begin from the earliest of
            the date of liquidation approval by the relevant Examination and
            Approval Authority, the date on which this Contract is terminated
            under Article 16.2 (provided a buy-sell is not effected), the date
            on which the Share Purchase Agreement is terminated under Article 11
            thereof, or by a court or arbitration order, or the date which is
            30-day prior to expiration of the Joint Venture Term.

      (2)   The Board shall within fifteen (15) days from the beginning of the
            liquidation as provided in Article 16.4 hereof, appoint a
            liquidation committee that shall be entitled to represent the Joint
            Venture in all legal matters during the period of liquidation. The
            liquidation committee shall value and liquidate the Joint Venture's
            assets in accordance with applicable PRC laws and regulations and
            the principles set out herein.

      (3)   The liquidation committee shall be made up of three (3) members
            appointed by the Board, two (2) of whom shall be recommended by
            Party A and one (1) of whom shall be recommended by Party B. Members
            of the liquidation committee in principle shall be selected from the
            Directors of the Joint Venture. Any Party may recommend the
            appointment of professional advisors to be members of or to assist
            the liquidation committee.

      (4)   The liquidation committee shall conduct a thorough examination of
            the Joint Venture's assets and liabilities, on the basis of which it
            shall, in accordance with the relevant provisions of this Contract,
            develop a liquidation plan which, if approved by the Board, shall be
            executed under the liquidation committee's supervision. Settlement
            of any claim, debt or assets under liquidation shall be approved
            unanimously by members of the liquidation committee; failing such
            unanimous approval, simple majority approval by the Board shall be
            required.

      (5)   In developing and executing the liquidation plan, the liquidation
            committee shall use every effort to obtain the highest possible
            price for the Joint Venture's assets.

      (6)   The liquidation expenses, including remuneration to members of and
            advisors to the liquidation committee, shall be paid in accordance
            with the PRC law out of the Joint Venture's assets in priority to
            the claims of other creditors.

                                       21
<PAGE>

      (7)   After the liquidation committee has settled all legitimate debts of
            the Joint Venture, including, if applicable, the expenses of the
            liquidation committee in accordance with Article 16.4 (6), any
            remaining assets shall be distributed to the Parties in proportion
            to their Percentage Interests. With respect to fixed assets
            distributed to the Parties, in the event that a Party intends to
            sell such fixed assets to a third party, the other Party shall have
            the preemptive right during the liquidation period to purchase such
            fixed assets on the same terms and conditions and at the same price
            as offered to any third party.

      (8)   On completion of liquidation, the liquidation committee shall
            prepare a liquidation report and liquidation accounting statement.
            The liquidation committee shall, with its unanimous approval appoint
            an auditor to examine the report and statement and issue a
            verification report.

      (9)   After completion of the liquidation of the Joint Venture, unless the
            tax authority requires otherwise, the original accounting books and
            other documents of the Joint Venture shall be left in the care of
            Party A to make and retain copies of all or any of such books and
            documents, after which such books and documents shall be left in the
            care of Party B.

                          CHAPTER 17 BREACH OF CONTRACT

In the event that a breach of contract committed by any Party to this Contract
results in the non-performance of or inability to fully perform this Contract,
the liabilities arising from the breach of Contract shall be borne by the Party
in breach. In the event that the Parties commit a breach of Contract, each Party
shall bear its individual share of the liabilities arising from the breach of
Contract. Any breach of this Contract by any Party's Affiliate shall be deemed a
breach by such Party.

                            CHAPTER 18 FORCE MAJEURE

18.1  Scope of Force Majeure. A "FORCE MAJEURE EVENT" shall mean any event,
      circumstance or condition that (i) directly or indirectly prevents the
      fulfillment of any material obligation set forth in this Contract, (ii) is
      beyond the reasonable control of the respective Party, and (iii) could
      not, by the exercise of reasonable care, have been avoided or overcome in
      whole or in part by such Party. Subject to the aforementioned items (i),
      (ii) and (iii), Force Majeure Event includes, but is not limited to, acts
      of God, war, terrorism, civil commotion, riot, blockade or embargo, delays
      of carriers, fire, explosion, labor dispute, casualty, accident,
      earthquake, epidemic, flood, windstorm, or by reason of any law, order,
      proclamation, regulation, ordinance, demand, expropriation, requisition or
      requirement or any other act of any governmental authority, including
      military action, court orders, judgments or decrees.

18.2  Notice. Should any Party be prevented from performing the terms and
      conditions of this Contract due to the occurrence of a Force Majeure
      Event, the prevented Party shall send notice to the other Party within
      fourteen (14) days from the occurrence of the Force Majeure Event stating
      in the details of such Force Majeure Event.

                                       22
<PAGE>

18.3  Performance. Any delay or failure in performance of this Contract caused
      by a Force Majeure Event shall not constitute a default by the prevented
      Party or give rise to any claim for damages, losses or penalties. Under
      such circumstances, the Parties are still under an obligation to take
      reasonable measures to perform this Contract, so far as is practical. The
      prevented Party shall send notice to the other Party as soon as possible
      of the elimination of the Force Majeure Event, and confirm receipt of such
      notice.

18.4  Consultations and Termination. Should the Force Majeure Event continue to
      delay implementation of this Contract for a period of more than three (3)
      months, the Parties shall, through consultations, decide whether to
      terminate or modify this Contract. Should the Force Majeure Event continue
      for a period of six (6) months or longer, any Party may terminate this
      Contract by giving notice to the other Party in accordance with Article
      16.2.

                          CHAPTER 19 DISPUTE RESOLUTION

19.1  Consultations and Arbitration. Any and all disputes, controversies or
      claims ("DISPUTE") arising out of or relating to the formation, validity,
      interpretation, implementation or termination of this Contract, or the
      breach hereof or relationships created hereby shall be settled through
      friendly consultations. If a Dispute is not resolved through friendly
      consultations within thirty (30) days from the date a Party gives the
      other Party written notice of a Dispute, then it shall be resolved
      exclusively and finally by arbitration in Singapore at the Singapore
      International Arbitration Center ("SIAC") in accordance with the
      Arbitration Rules of the SIAC ("SIAC RULES") for the time being in force
      which rules are deemed to be incorporated by reference to this clause.

19.2  Arbitration Proceedings and Award. Arbitration Proceedings and Award. Any
      arbitration shall be heard before a tribunal consisting of three (3)
      arbitrators. Each side of the Dispute shall appoint one (1) arbitrator.
      The two arbitrators thus appointed shall choose the third arbitrator who
      will act as the presiding arbitrator of the tribunal. If the two
      arbitrators have not agreed on the choice of the presiding arbitrator, the
      presiding arbitrator shall be appointed by the Chairman of the HKIC. The
      language of the arbitration shall be English and Chinese. The arbitration
      shall be final and binding on the Parties, shall not be subject to any
      appeal, and the Parties agree to be bound thereby and to act accordingly.
      The award of the arbitrators may be enforced by any court having
      jurisdiction to do so. Throughout any dispute resolution and arbitration
      proceedings, the Parties shall continue to perform this Contract, to the
      extent practical, with the exception of those parts of this Contract that
      are under arbitration. Except as otherwise determined by the arbitration
      tribunal, each Party shall be responsible for its expenses incurred in
      connection with resolving any Dispute, but the arbitration fees shall be
      borne by the losing side of the Dispute.

19.3  Injunctive Relief. Notwithstanding any other provision of this Contract,
      each Party acknowledges that a breach of provisions on confidentiality as
      provided in Article 15.1 or non-competition in Article 15.2 or other
      obligations under this Contract may result in irreparable harm and damage
      to the affected Party and its Affiliates in an amount that is difficult to
      ascertain and that cannot be adequately compensated by a monetary award.
      Accordingly, in addition to any other relief to which the affected Party
      and its Affiliates may be entitled, such Party shall be entitled to
      temporary and/or permanent injunctive

                                       23
<PAGE>

      relief from any breach or threatened breach by the relevant Party without
      proof of actual damages that have been or may be caused to such Party by
      such breach or threatened breach.

                    CHAPTER 20 GOVERNING LAW & CHANGE OF LAW

20.1  Applicable Law. The formation of this Contract, its validity,
      interpretation, execution and any performance of this Contract, and the
      settlement of any Disputes hereunder, shall be governed by published and
      publicly available laws, rules and regulations of the PRC, the applicable
      provisions of any international treaties and conventions to which the PRC
      is a party, and, if there are no published or publicly available PRC laws,
      rules or regulations, or treaties or conventions governing a particular
      matter, by general international commercial practices.

20.2  Change of Law. If any Party's economic benefits as a shareholder in the
      Joint Venture is adversely and materially affected by the promulgation of
      any new PRC laws, rules or regulations or the amendment or interpretation
      of any existing PRC laws, rules or regulations after the Effective Date,
      the Parties shall promptly consult with each other and use their best
      endeavors to implement any adjustments necessary to maintain each Party's
      economic benefits derived from this Contract on a basis no less favorable
      than the economic benefits it would have derived if such laws, rules or
      regulations had not been promulgated or amended or so interpreted.

                    CHAPTER 21 EFFECTIVE DATE OF THE CONTRACT

21.1  Effective Date. This Contract and the Articles of Association shall become
      effective on the date on which this Contract and the Articles of
      Association are approved by the Examination and Approval Authority as
      evidenced by the issuance of the Certificate of Approval (referred to as
      the "EFFECTIVE DATE"). In case of conflict between the provisions of this
      Contract and the provisions of the Articles of Association, the terms of
      this Contract shall prevail.

21.2  Delivery. Party A shall promptly deliver to Party B copies of all approval
      certificates and registration documents issued by, and written
      confirmation of all communications with, the relevant Examination and
      Approval Authority and Registration Authority and all other relevant
      government authorities, in respect of this Contract, the Articles of
      Association, the Share Purchase Agreement, and the operation of the Joint
      Venture.

                       CHAPTER 22 MISCELLANEOUS PROVISIONS

22.1  Language. This Contract is written and executed in a Chinese version and
      in an English version. Both language versions of this Contract are of
      equal validity and effect. In case of any discrepancy between the Chinese
      version and the English version, the Chinese version approved by the
      Examination and Approval Authority shall prevail.

22.2  Waiver and Preservation of Remedies. No delay on the part of any Party in
      exercising any right, power or privilege under this Contract shall operate
      as a waiver thereof, nor shall any waiver on the part of any Party of any
      right, power or privilege hereunder, nor any single or partial exercise of
      any right, power or privilege hereunder, preclude any other or other
      exercise thereof hereunder. The rights and remedies herein provided are

                                       24
<PAGE>

      cumulative and are not exclusive of any rights or remedies that any Party
      may otherwise have.

22.3  Notices. All notices or other communications under this Contract shall be
      in writing and shall be delivered or sent to the correspondence addresses
      or facsimile numbers of the Parties set forth below or to such other
      addresses or facsimile numbers as may be hereafter designated in writing
      on seven (7) days' notice by the relevant Party. All such notices and
      communications shall be effective: (i) when delivered personally; (ii)
      when sent by telex, telefacsimile or other electronic means with sending
      machine confirmation; (iii) ten (10) days after having been sent by
      registered or certified mail, return receipt requested, postage prepaid;
      or (iv) four (4) days after deposit with a commercial overnight courier,
      with evidence of delivery provided by the courier.

      Party A      Address:         No 98, North Nan Shan Road, Rongcheng City,
                                    Shandong Province, PRC[
                   Tel:             (86-631) 7523 205
                   Fax:             (86-631) 7523 888
                   Attn:            Zhang Jun Quan

      Party B      Address:         Chancery House, High Street, Bridgetown,
                                    Barbados, W.I.
                   Tel:             1 (246) 431-0070
                   Fax:             1 (246) 431-0076
                   Attn:            Keisha N. Hyde

22.4  Severability. If any provision of this Contract should be or become fully
      or partially invalid, illegal or unenforceable in any respect for any
      reason whatsoever, the validity, legality and enforceability of the
      remaining provisions of this Contract shall not in any way be affected or
      impaired thereby.

22.5  Entire Agreement. This Contract, together with its Appendices which are
      hereby incorporated by reference as an inseparable and integral part of
      this Contract, constitutes the entire agreement between the Parties with
      reference to the subject matter hereof, and supersede any agreements,
      contracts, representations and understandings, oral or written, made prior
      to the signing of this Contract.

22.6  Modification and Amendment. No amendment or modification of this Contract,
      whether by way of addition, deletion or other change of any of its terms,
      shall be valid or effective unless a variation is agreed to in writing and
      signed by authorized representatives of each of the Parties and approved
      by the Examination and Approval Authority.

22.7  Successors. The Parties agree and procure that this Contract shall inure
      to the benefit of and be binding upon each of the Parties and their
      respective permitted successors and permissible assignees.

22.8  Originals. This Contract is executed in eight (8) original counterparts,
      each of which shall have equal effect in law.

                                       25
<PAGE>

22.9  Costs and Expenses. Except as otherwise provided herein, each Party shall
      be responsible for the costs and expenses it incurred in connection with
      the negotiation and execution of this Contract, the Articles of
      Association, and the Share Purchase Agreement.

                                       26
<PAGE>

IN WITNESS WHEREOF, each of the Parties has executed this Contract or has caused
this Contract to be executed by its duly authorized officer or officers as of
the date first above written.

                                 PARTY A: CHENGSHAN GROUP COMPANY LTD.

                                 By: ___________________________________________
                                 Name:        Che Hong-Zhi
                                 Title:       Chairman of Board
                                 Nationality: Chinese

                                 PARTY B: CTB (BARBADOS) INVESTMENT CO. LTD.

                                 By: ___________________________________________
                                 Name:        Harold C. Miller
                                 Title:       President
                                 Nationality: USA

                                       27
<PAGE>

                             JOINT VENTURE CONTRACT

                                   APPENDIX 1

                         DEFINITIONS AND INTERPRETATION

1.1   "AFFILIATE" means, with respect to any Person, any other Person
      controlling or controlled by or under common control with such specified
      Person. For purposes of this definition, "control" when used with respect
      to any specified Person means the power to direct the management and
      policies of such Person, directly or indirectly, whether through the
      ownership of shares, registered capital or voting securities, by contract
      or otherwise, and the terms "controlling" and "controlled" have meanings
      correlative to the foregoing.

1.2   "ARTICLES OF ASSOCIATION" means the articles of association of the Joint
      Venture executed by the Parties simultaneously with this Contract, as such
      articles of association may be amended from time to time by the Parties.

1.3   "AUDITOR" means an accounting firm registered in the PRC, engaged at the
      Joint Venture's own expense upon resolution of the Board, which shall be
      the auditor of the Joint Venture and which firm shall be independent of
      the Parties and independent of the Joint Venture.

1.4   "BOARD OF DIRECTORS" or "BOARD" means the board of directors of the Joint
      Venture established in accordance with this Contract.

1.5   "BOOK VALUE" means the historic accounting value of the equity of the
      Joint Venture based on Chinese generally accepted accounting principles
      (GAAP).

1.6   "BUSINESS LICENSE" means the business license of the Joint Venture as
      issued by the Registration Authority to indicate the Company being
      converted into and registered as the Joint Venture, and any of amendments
      or replacements thereof.

1.7   "CERTIFICATE OF APPROVAL" means the certificate of approval issued by the
      Examination and Approval Authority approving this Contract and the
      Articles of Association.

1.8   "COMPANY" shall have the meaning ascribed to such term in Whereas (A).

1.9   "CONFIDENTIAL INFORMATION" means the terms of this Contract and all
      technical, financial, business, commercial, operational and strategic
      information and data, know-how, trade secrets and any analysis,
      amalgamation, market studies or compilation, whether written or unwritten
      and in any format or media, concerning, directly or indirectly, the
      business of the Joint Venture or a Party, which has been prior to the
      Establishment Date, or which may be during the Joint Venture Term,
      delivered or furnished by a Party, the Joint Venture, or any of their
      respective Representatives, to another Party, the Joint Venture, or any of
      their respective Representatives, but shall not include any information
      that: (a) at the time of disclosure is (or thereafter becomes) generally
      available to the public through no act of any Person in violation of a
      confidentiality obligation or applicable law; or (b) the receiving Party
      has obtained lawfully from an independent source not subject to a
      confidentiality obligation; or (c) the

                                       28
<PAGE>

      receiving Party can prove was known to it or to its Representatives prior
      to the receipt of such information from the disclosing Party; or (d) is
      independently developed by the receiving Party without any access to or
      knowledge of such information.

1.10  "DAY" refers to a calendar day.

1.11  "DIRECTOR" or "DIRECTOR OF THE JOINT VENTURE" means any member of the
      Board.

1.12  "DISPUTE" shall have the meaning ascribed to such term in Article 19.1.

1.13  "EFFECTIVE DATE" means the date on which this Contract comes into effect
      in accordance with Article 21.1.

1.14  "EQUITY JOINT VENTURE LAW" means the PRC, Sino-foreign Equity Joint
      Venture Law (adopted by the National People's Congress on July 1, 1979 and
      revised on March 15, 2001), as such law may from time to time be amended,
      or its successor laws.

1.15  "EQUITY JOINT VENTURE REGULATIONS" means the PRC, Sino-foreign Equity
      Joint Venture Law Implementing Regulations (promulgated by the State
      Council on September 20, 1983 and revised on July 22, 2001), as such
      regulations may from time to time be amended, or any successor
      regulations.

1.16  "ESTABLISHMENT DATE" means the date on which the Joint Venture's first
      Business License is issued by the Registration Authority.

1.17  "EXAMINATION AND APPROVAL AUTHORITY" means the Ministry of Commerce, or
      its authorized local division or any successor government institution or
      agency empowered to approve the Asset Purchase Agreement, this Contract,
      the Articles of Association, and any amendments, supplements,
      modifications or termination hereof or thereof.

1.18  "INTEREST" shall have the meaning ascribed to such term in Article 2(1) of
      Appendix 2.

1.19  "JOINT VENTURE" means Cooper Taiji (Shandong) Steel Cord Company Ltd., the
      Sino-foreign equity joint venture limited liability company established
      and operated by the Parties pursuant to this Contract.

1.20  "JOINT VENTURE TERM" shall have the meaning ascribed to such term in
      Article 16.1 hereof.

1.21  "NON-DISCLOSURE AND NON-COMPETE CONTRACT" means the contract between the
      Joint Venture and each of its key employees (including, without
      limitation, the General Manager, all other management personnel, and all
      technical personnel), whereby such key employees undertake to keep
      confidential the confidential information of the Joint Venture and to
      refrain from engaging in any business or activities that directly or
      indirectly compete with any business of the Joint Venture.

1.22  "NOTIFYING PARTY" shall have the meaning ascribed to such term in Article
      16.3(3).

                                       29
<PAGE>

1.23  "PERCENTAGE INTEREST" means, with respect to each Party, such Party's
      percentage interest in the equity of the Joint Venture.

1.24  "PERSON" means any individual, company, legal person enterprise, non-legal
      person enterprise, joint venture, partnership, wholly owned entity, unit,
      trust or other entity or organization, including, without limitation, any
      government or political subdivision or any agency or instrumentality of a
      government or political subdivision and other body corporate or
      unincorporated; Person also includes a reference to that Person's legal
      representatives, assignees, successors or heirs.

1.25  "PRC" or "CHINA" means the People's Republic of China.

1.26  "PRODUCTS" means the steel cords, tire bead wires

1.27  "PROTECTED PARTY" shall have the meaning ascribed to such term in Article
      15.1(1) hereof.

1.28  "QUALIFIED LENDERS" shall have the meaning ascribed to such term in Part 2
      of Appendix 2.

1.29  "REGISTERED CAPITAL" means the total amount of equity of the Joint Venture
      pursuant to Chapter 5 as such equity amount may be adjusted according to
      the relevant provisions of this Contract and relevant PRC law.

1.30  "REGISTRATION AUTHORITY" means the State Administration of Industry and
      Commerce, or its local division or any successor government institution or
      agency empowered to issue a Business License to the Joint Venture.

1.31  "RENMINBI" or "RMB" means the lawful currency of the PRC.

1.32  "REPRESENTATIVES" shall have the meaning ascribed to such term in Article
      15.1(1) hereof.

1.33  "SHARE PURCHASE AGREEMENT" shall have the meaning ascribed to such term in
      Article 5.8.

1.34  "TERMINATION NOTICE" shall have the meaning ascribed to such term in
      Article 16.3(3).

1.35  "TRANSFERRING PARTY" shall have the meaning ascribed to such term in
      Article 6.2(1).

1.36  "UNITED STATES DOLLARS" or "US$" means the lawful currency of the United
      States of America.

1.37  "AND/OR" means that both cases apply, or either the first or the second
      case applies.

1.38  Words used in any gender in this Contract shall include references to all
      other genders; and words used in the singular in this Contract shall
      include references to the plural, and vice versa.

                                       30
<PAGE>

1.39  Descriptive headings in this Contract are for convenience only and shall
      not control or affect the meaning or construction of any of the provisions
      of this Contract or any of the Appendices.

                                       31
<PAGE>

                             JOINT VENTURE CONTRACT

                                   APPENDIX 2

                                     PART 1

                          EQUITY TRANSFER/PLEDGE RULES

1.    General Principles. Each Party undertakes that, except as permitted in
      this Appendix 2 or as otherwise agreed by the Parties, it shall not sell,
      transfer, assign or otherwise dispose of the legal or beneficial ownership
      of, or create any mortgage, charge, pledge, or other encumbrance over or
      security interest in, either the entire or any part of its equity interest
      in the Joint Venture or its rights and obligations under this Contract or
      otherwise in relation to the Joint Venture whatsoever without the prior
      written consent of the other Party and subject to compliance with relevant
      PRC law.

2.    Procedure for Transfers.

      (1)   In the event that a Party (the "TRANSFERRING PARTY") desires to
            transfer or otherwise dispose of all or any portion of its
            Percentage Interest in the Joint Venture (the "INTEREST") (other
            than pursuant to the provisions of paragraph 2(3) below), it shall
            first notify the other Party (the "NON-TRANSFERRING PARTY") in
            writing of (i) its intent to transfer or otherwise dispose of its
            Interest, (ii) the proposed percentage of the Interest to be
            transferred or disposed, (iii) the price and principal terms and
            conditions of the proposed transfer or disposal, and (iv) the
            identity of the proposed third party transferee (the "NOTICE"). The
            Non-Transferring Party will have thirty (30) days from the receipt
            of the Notice to notify the Transferring Party whether they desire
            to purchase the Interest and, if so, the sale of Interest shall be
            completed in accordance with the terms and conditions set forth in
            the Notice within the longer of the period of ninety (90) days after
            receipt of the Notice or fifteen (15) days after such sale of
            Interest is duly approved by the Examination and Approval Authority
            and registered with the Registration Authority. If no response or a
            negative response is given by the Non-Transferring Party in respect
            of a proposed transfer within the thirty (30) day period, the
            Non-Transferring Party shall be deemed to have consented to the
            proposed transfer or disposal of the Interest between the
            Transferring Party and the proposed transferee identified in the
            Notice excluding any third party capable of competing against the
            Joint Venture. It shall be a condition of the transfer that such
            transferee shall agree to become party to and to be bound by the
            terms of this Contract and thereafter any reference to a Party
            herein shall be deemed to include a reference to such transferee as
            if named herein as a Party.

      (2)   In circumstances of a transfer of Interest under paragraph 2(1), the
            Non-Transferring Party shall be deemed to consent to, and shall
            cause all of the Directors nominated by it to vote in favor of, any
            such transfer carried out in accordance with the procedures
            stipulated herein.

      (3)   Notwithstanding any other provisions in this Contract or this
            Appendix, if a Party wishes to transfer all or any part of its
            portion of its Percentage Interest to an Affiliate, such Party shall
            notify the other Party in writing, and shall provide

                                       32
<PAGE>

            documentary evidence of the relationship between the Party proposing
            the transfer and the relevant Affiliate. The other Party shall
            immediately agree such transfer, waive its preemptive rights, and
            cause all Directors nominated by them to vote in favor of such
            transfer, and such transfer shall thereafter be duly presented to
            the Examination and Approval Authority for approval.

      (4)   No transfer of any part of a Party's Interest shall become effective
            until the transferee (whether an Affiliate or a third party) has
            delivered to the Non-transferring Party a valid and effective
            undertaking to perform the obligations of the Transferring Party
            under this Contract and be bound by its terms as if the transferee
            had been an original Party to this Contract.

      (5)   Any sale, transfer, assignment, or disposal pursuant to this
            Appendix shall be submitted to the Examination and Approval
            Authority for examination and approval. Upon receipt of the approval
            document from the Examination and Approval Authority the Joint
            Venture shall register the change in ownership with the Registration
            Authority.

3.    Pledge of Interest. Party B or its permitted successor may pledge not more
      than 70% of its Percentage Interest (the "PLEDGED INTEREST") to any of the
      Qualified Lenders set forth in the Part 2 herein for its own financing
      purposes with the prior written consent of Party A.

                                       33
<PAGE>

                             JOINT VENTURE CONTRACT

                                   APPENDIX 2

                                     PART 2

                    QUALIFIED LENDERS AS SELECTED BY PARTY B

(a)   licensed PRC national commercial banks (and their permitted branches or
      subsidiaries), such as, Bank of China, China Construction Bank, Industrial
      and Commercial Bank of China, Agricultural Bank of China;

(b)   reputable international banks (and their permitted branches or
      subsidiaries) licensed to carry out financial business and service in
      China;

(c)   licensed PRC national policy banks (and their permitted branches or
      subsidiaries), such as, Export and Import Bank of China, National
      Development Bank, Agricultural Development Bank of China; and

(d)   PRC joint-stock commercial banks (and their permitted branches or
      subsidiaries) licensed to carry out nationwide financial business and
      service in China, such as, for example, Bank of Communications, Minsheng
      Bank, China Merchants Bank, etc.

                                       34
<PAGE>

                             JOINT VENTURE CONTRACT

                                   APPENDIX 3

                            SHARE PURCHASE AGREEMENT

                                       35

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