Construction Agreement

For pile foundation engineering, civil engineering and steel structure engineering, the <Construction engineering consumption quota and uniform base price list in Hubei Province> issued in 2003 shall be executed.

For the expense quota, the Hubei Construction [2003] no.44 document shall be executed.

For this project, the total cost is calculated as per the category-III engineering quota and the final settlement price of the account is calculated after it is decreased by 3% based on the total cost.

For material price adjustment, the material price of other materials and main materials for installation engineering shall be fixed as per <Construction engineering consumption quota and uniform base price list in Hubei Province> issued in 2003 in addition that the quota price shall be executed for general auxiliary material such as sand and stone material and so on. If there is a price difference between them and the budget price in <Material price information> from Wuhan Quota Management Station during the same period, both parties shall negotiate and determine the price difference. The price difference part is only involved in the pre-tax construction price. It is not involved in the service fee.

The design amendments and on-site certificates to occur in the project can be involved in the project settlement only after they are signed and approved by Party A and the supervisor. The settlement can be entered after the field certification is provided with following conditions: description of project property, scope, scheme measure and so on, clarification of the project amount, material specification and model as well as brand.

Party A will pay the 20% installment payment of tentative contract sum to Party B after the civil engineering amount of foundation part is completed.

Party A will pay the 20% installment payment of tentative contract sum to Party B after the installation of steel structure member of main body (refer to steel column) is completed and roof boarding installation is completed.

After the project is finished for the record and the project material is transferred to the archives, the complete set of completion data and drawing will be transferred to Party A. Party A agrees to pay 10% of the tentative total contract sum when the settlement between both parties is more than 2 months. Party A agrees to pay construction costs up to 95% of project settlement payment. 5% of project settlement payment will be left as the warranty payment.

Party B submits the progress description of completed engineering amount to the supervisor and Party A’s representative.

The installment payment for engineering progress shall depend on the quality of work done. If the engineering quality cannot meet the inspection and acceptance requirements, Party A has the right to collect the penalty from Party B and stop paying the payment for engineering progress of this part temporarily.

Commencement date of new building of production workshop of Wuhan

Complete date: October 29^th, 2006

Both Party A and B have already taken into account such factors as seasonal rain, high wind, high-temperature weather, water and power supply stop and festivals as well as holidays and time limit for project and working content to be subcontracted by Party A at the appointed completion date and every control date.

Within the first week after Party B enters in the jobsite, Party B shall report and submit the monthly progress plan and key milestone of this project. The report and plan shall be examined and approved by Party A and supervision company.

The installation of steel column shall be completed prior to June 29^th, 2006 and Party B shall conduct inspection and accept the eligible and qualified work of steel column.

The installation of colorful steel plate and workshop gate as well as plastic steel window shall be completed prior to September 29^th, 2006 and Party B shall conduct inspection and accept the eligible and qualified work.

The completion date to be specified in this contract refers to all completions of contracting engineering content to be agreed in this contract and accepted by formal completion acceptance to be organized by Party A. If any of the partitioned projects and sub-divisional works in the contracting content are not completed or it is not accepted after acceptance to be organized by Party A, it will be considered as though the time limit for project is delayed.

If the completion time of project is delayed, Party B will pay the delay indemnity to Party A as per following modes: the indemnity of 25000Yuan will be paid in case of 3

If the completion date or control date is delayed due to force majeure, the time limit for the project will be delayed accordingly after being confirmed by Party A. Party A will not undertake the other responsibilities for Party B, including downtime and stop construction fee.

Party B must assign enough qualified managing staffs at the construction site and establish the complete quality and progress assurance system as well as perform the rectification as per the requirement to be put forward by Party A and supervision party.

After Party B checks partitioned projects and subdivisional works and they are acceptable after partitioned projects and subdivisional works reach to the concealed condition, Party B shall inform Party A and the supervision party 24 hours before acceptance and provide the related conformity data. The concealed work construction can be carried out after accept