Project Contract

　　Party A: People’s Government of Zibo City, Shandong Province (hereinafter, Party A for short)
　　Party B: KOHLER CO. (hereinafter, Party B for short)

　　Under the principle of equality, mutual benefit and common development, and by friendly consultations, Party A agrees that Party B to make investment and construction for the project in the territory under Party A’s control. For the related matters, the two sides reach the following agreements:

　　First, responsibility and obligation of Party A
　　1. To provide area of not less than 1,200 Mu of land, among which 700 Mu for the first-stage construction, 500 Mu will be reserved for the second-stage construction (subject to the data mapped by Bureau of Land and Resources).
　　2. To guarantee the validity of the provided land and the land properties are in line with the state laws and policy requirements. To guarantee the land procedures are complete.
　　3. To confirm that the relationship between the placement of land and the surrounding villagers has been resolved. To pledge to help adjust the various relationships appeared in the process of the construction and operation for the project.
　　4. To remove and clean the related factories and fixtures on the target land in time.
　　5. To be responsible for assisting Party B for site selection and related procedures required by the Planning Commission, the Construction Committee, Environmental Protection, Land, Industry and Commerce, Taxation and other relevant procedures involved in the project.

　　Second, responsibility and obligation of Party B
　　1. To invest for the 2.5 million sets/ year of new high-grade sanitary ware project in the Economic and Technological Development Zone, Huantai County of Party A, with a total investment of 96 million US dollars for the first period investment.
　　2. To acquire land needed for the project by the way of inviting public bidding, public sale or listing.
　　3. To guarantee that the project agrees with corresponding national policies of the category of encouragement project in the Catalogue of Foreign Investment Industry Guidance.
　　4. To provide the feasibility study report and related materials to Party A so that Party A can assist to deal with the various procedures.
　　5. To handle business registration and tax registration procedures in the territory under Party A’s control.

　　Third, for the issues not referred, the two sides will resolve them through consultations.

　　Forth, four copies for this agreement. Both parties should sign two copies, and each party should retain two copies. The agreement shall enter into force upon signature.

　　Person in charge of Party A (signature)

　　Person in charge of Party B (signature)

　　March, 2008