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Agreement of Project Introduction

Party A:Yuan Kou Industrial Park Committee of the Management

Party B:Machine Tool Co., Ltd.According to the contract law of people’s republic of china and the relate laws, for the matters of Party B invests in the Dalian Hua Yuan Kou Industrial Park.Both parties have reach the agreement by the amicble negociation as follows:

1.party A agree to supply planning used land about 51,450 sqm for party b in the industrial park

2.Party B shall guarantee the project planning and construction must conform to the state and the relevant provisions.Investment of Project in fixed aets is RMB 107.7 million 3.Within one month from the date of this agreement is signed, Party B should complete the project commercial registration in the industrial park, and injected into the registered capital.Registered capital is 3 million yuan

4.after party B complete the registration of industrial and commercial , party A should aist party B to deal with “ use card of the state-owned land ”, land grant fee charge as stipulated in the current national land policy, the certificate charged by party A, after the project completion within a week, party A shall transfer use card of the state-owned landto party B

5.Total project construction term is for 23 months(project workshop have been completed, equipment in principle should be setted in the workshop in 18 months after the completion).Party B promise that if they unable to invest construction funds on time, within a month of construction period,is not completed and put into operation, party A shall be entitled to recover the land use, party A has the right to public auction of party B’s investment and construction, the money is all for(after deduct)party B.6.Density of investment in fixed aets of party B's project to reach 1.5 million yuan/mu, if it is lower than the standard, Occupation of land by 60000 yuan/mu to overweight charge construction cost.7.To support busine development, party B's factory in the inland use waters, electricity, roads and other infrastructure construction party A will give support and discount interest loans, support the quota is not higher than the total amount of the charge of land use, the payment within one month after the project completed and put into production.8.In order to ensure the agreement performed smoothly, party B shall pay the performance bond by 10000 yuan/mu, within 30 days after this agreement is signed pay into the account of party A, party A make sure the land location.According to the provisions Party B make construction, when the construction investment is higher than the deposit, and party A should refund the performance bond totally.If party B can't input the construction funds and the project planning work within 3 months, after three-month, since every delay a day to deduct 1% performance bond, when all of the performance bond is deduction, party B still cannot start construction, party A has the right to reclaim the land.9.Matters which do not reach this agreement, both parties talk together to solve things over, do not talk things over, to a local court ruling.10.This agreement is in quadruplicate, each party hold two copies, effective since the date of

signing

Party AHua Yuan Kou Industrial Park Committee of the Management(seal)

Representative :

Party B :Machine Tool Co., Ltd.Representative :

Signature Time : March 8, 2007