Exhibit
      10.20

     

    LOAN
      AGREEMENT


    


    Index

    

      
        	
                Article
                  1. Type

              	
                2

              
	 	 
	
                Article
                  2. Purpose

              	
                2

              
	 	 
	
                Article
                  3. Facility and Maturity

              	
                2

              
	 	 
	
                Article
                  4. Interest Rate and Calculation

              	
                2

              
	 	 
	
                Article
                  5. Source and Schedule of Repayment

              	
                3

              
	 	 
	
                Article
                  6. Guarantee

              	
                3

              
	 	 
	
                Article
                  7. Rights and Obligations

              	
                3

              
	 	 
	
                Article
                  8. Breach

              	
                4

              
	 	 
	
                Article
                  9. Effectiveness, Modification, Cancellation and Termination
                  of the Agreement

              	
                5

              
	 	 
	
                Article
                  10. Dispute Resolution

              	
                6

              
	 	 
	
                Article
                  11. Other Covenant

              	
                6

              
	 	 
	
                Article
                  12. Appendix

              	
                6

              


      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    


    This
      Loan
      Agreement (hereinafter the "Agreement") is dated as of July 27, 2008, by and
      between Danyang
      Lihua Electron Co., Ltd (hereinafter
      the "Borrower"), and Bank of Jiangsu Danyang Branch (hereinafter the
      "Lender").

    


    For
      the
      purpose set forth in Article 2.1, the Borrower is borrowing from the Lender,
      and
      the Lender is lending to the Borrower. In order to confirm the rights and
      obligations of the parties, and in accordance with the Contract Law, the General
      Rules on Loans and the related laws and regulations, the parties hereby mutually
      agree as follows:

    


    Article
      1. Type

    
      	1.1	
              The
                types under the Agreement are the short term/ the mid and long term
                liquid
                capital/ the fixed asset
                borrowings.

            


    

    


    Article
      2. Purpose 

    
      	2.1	
              The
                purpose under the Agreement is for the liquid
                capital.

            


    

    
      	2.2	
              Without
                the written consent of the Lender, the Borrower shall not alter the
                purpose of loans under the
                Agreement

            


    

    


    Article
      3. Facility and Maturity

    
      	3.1	
              The
                Borrower is borrowing for the amount of RMB Five Million (RMB5,000,000)
                (hereinafter the “Facility”)

            


    

    
      	3.2	
              The
                Facility hereunder are for the period of  months,
                starting from July 28, 2008 to July 27,
                2009.

            


    

    
      	3.3	
              The
                Facility set forth in Article 3.2 shall be an entirely one-time drawdown
                by the Borrower. The actual drawdown date (the “Actual Drawdown Date”) and
                the repayment due date (the “Actual Due Date”) are set forth in the
                borrowing note as the bank wire transferring date. The borrowing
                note and
                the loan drawdown certificate constitute an undividable part of this
                Agreement. Except for the aforementioned dates, in the event of any
                inconsistence between the Agreement and such note and certificate,
                this
                Agreement shall control.

            


    

    


    Article
      4. Interest Rate and Calculation

    
      	4.1	
              The
                monthly interest rate hereunder is seven point forty seven percent
                (7.47%)
                (the interest rate for the mid and long term borrowing is calculated
                yearly in compliance with the regulations of the People’s Bank of China
                (the “PBC”)). The Interest shall be accrued per month from the Actual
                Drawdown Date, and the interest settlement date is the 20th
                day of every month (the 20th
                day of every month/ the 20th
                day in the last month of every quarter). The payment of the principal
                and
                the accrued interest shall be paid in full when
                due.

            


    

    
      	4.2	
              If
                PBC adjusts the interest rate applicable to the interest rate hereunder
                during the period of the Agreement, the Lender, without any notice
                to the
                Borrower, may adjust the interest rate and the calculation hereunder
                accordingly.

            


    


    
      
         

      

      
        2

        
          

        

      

      
         

      

    


    Article
      5. Source and Schedule of Repayment

    
      	5.1	
              The
                Borrower’s source of repayment of the principal and the accrued interest
                is including but not limited to business
                incomes.

            


    

    
      	5.2	
              Notwithstanding
                the Borrower’s other agreement related to the source of repayment with
                other third parties, its performance of the repayment obligation
                hereunder
                shall not be affected. Under no circumstance shall the Borrower apply
                Article 5.1 to reject performing its repayment obligation under this
                Agreement.

            


    

    
      	5.3	
              The
                Borrower shall repay the accrued interest and the principal in full
                in
                accordance with the schedule set forth in the
                Agreement.

            


    

    
      	5.4	
              On
                the date before the agreed interest settlement date or principal
                repayment
                date hereunder, the Borrower shall deposit the full amount of the
                accrued
                interest due by the schedule or the principal to its account opened
                at the
                Lender, and authorize the Lender to directly withdraw the repayment
                from
                the aforementioned account on the agreed interest settlement date
                or
                principal repayment date.

            


    

    


    Article
      6. Guarantee

    
      	6.1	
              The
                loan hereunder is guaranteed by guarantors (hereinafter the
                “Guarantor”)

            


    

    
      	6.2	
              The
                Borrower is obligated to assist the Lender and cause the Guarantor
                to
                enter into the guarantee agreement (#2008danyang055) with the Lender.
                

            


    

    
      	6.3	
              Shall
                any change occur to the guarantee hereunder and cause any adverse
                effect
                to the Lender, with the Lender’s notice; the Borrower shall provide other
                satisfactory guarantees acceptable to the
                Lender.

            


    

    


    Article
      7. Rights and Obligations

    
      	7.1	
              The
                Borrower’s rights and obligations:

            


    

    
      	7.1.1	
              The
                Borrower shall draw down and execute the Facility in accordance with
                the
                agreed schedule and purpose set forth in the
                Agreement.

            


    

    
      	7.1.2	
              Without
                the Lender’s written consent, the Borrower shall not prepay the
                Facility

            


    

    
      	7.1.3	
              The
                Borrower shall represent and warrant the authenticity, the accuracy
                and
                the entirety of the information provided for the Lender’s credit
                review.

            


    

    
      	7.1.4	
              The
                Borrower shall acknowledge and agree the Lender’s investigation, inquiry,
                and supervision to its compliance with the purpose
                hereunder.

            


    

    
      	7.1.5	
              The
                Borrower shall actively cooperate with the Lender’s inspection, inquiry
                and supervision with regard to its production, business operation
                and
                financial condition; and is obligated to provide the relevant periodic
                income statement and balance sheet.

            


    

    
      	7.1.6	
              The
                Borrower shall repay the principal and the accrued interest in accordance
                with the Agreement.

            


    

    
      	7.1.7	
              The
                Borrower shall assume all relevant expenses arising out of and related
                to
                this Agreement, including but not limited to notary, appraisal, and
                registration fees.

            


    

    
      	7.1.8	
              The
                Borrower shall sign and receive the collection letters or collection
                documents sent by the Lender, and send the return receipt to the
                Lender
                within three days after receiving such letters and
                documents.

            


    

    
      	7.1.9	
              Shall
                the Borrower carry out outsource, lease, conversion to share-holding
                system, co-operating business, merger, acquisition, joint venture,
                split,
                capital reduction, change in share-holding, material asset transfer
                and
                other actions could affect the Lender’s rights and interests hereunder, it
                should send the thirty-day written notice to the Lender. Without
                the
                Lender’s written consent, the Borrower shall not carry out the
                aforementioned actions before it repay borrowings hereunder in
                full.

            


    


    
      
         

      

      
        3

        
          

        

      

      
         

      

    


    
      	7.1.10	
              The
                Borrower shall send the written notice to Lender within seven days
                after
                any change in its business address, correspondence address, business
                scope, legal representative and other business registration
                items.

            


    

    
      	7.1.11	
              In
                the case any event affecting the Borrower’s ordinary business operation or
                causing material adverse effects to the performance of the Borrower’s
                repayment obligations hereunder, including but not limited to the
                material
                economic dispute, bankruptcy, worsening financial condition occurs,
                the
                Borrower shall send written notice to the Lender
                immediately.

            


    

    
      	7.1.12	
              In
                case the Borrower ceases operation, is dissolved, is undergoing
                reformation or is revoked or abolished business license, the Borrower
                shall send written notice within five days after the occurrence of
                the
                aforesaid events, and warrants to immediately repay the principal
                and the
                accrued interest.

            


    

    
      	7.2	
              The
                Lender’s rights and obligations:

            


    

    
      	7.2.1	
              The
                Lender may request the Borrower to provide all information related
                to the
                Agreement.

            


    

    
      	7.2.2	
              The
                Lender, in accordance with the Agreement, related laws and regulations,
                is
                entitled to withdraw the principal, the accrued interest, the compound
                interest, the punitive interest and other expenses occur hereunder
                from
                the Borrower’s accounts.

            


    

    
      	7.2.3	
              In
                the event the Borrower avoids the Lender’s supervision, does not repay the
                principal and the accrued interest on schedule, or materially breach
                the
                Agreement, the Lender is entitled to apply credit sanction to the
                Borrower, to report to the competent authority and to conduct public
                collection via news media.

            


    

    
      	7.2.4	
              The
                Lender shall provide the Facility to the Borrower on schedule in
                accordance with the Agreement.

            


    

    
      	7.2.5	
              The
                Lender shall maintain the confidentiality of the Borrower’s debt, finance,
                production, operation and other relevant information, except as otherwise
                provided in the Agreement, and relevant laws and
                regulations.

            


    

    


    Article
      8. Breach 

    
      	8.1	
              After
                the Agreement becomes effective, the parties shall be obligated to
                perform
                in accordance with the Agreement. Any party breach or partially breach
                its
                obligations hereunder shall be liable for the
                default.

            


    

    
      	8.2	
              In
                the event the Borrower is not in compliance with the Article 3.3
                to draw
                down, the Borrower shall pay the Lender the delay penalty equals
                to the
                interest herein on the daily basis.

            


    

    
      	8.3	
              In
                the event the Lender is not in compliance with the Article 3.3 to
                provide
                the Facility, the Lender shall pay the Borrower the delay penalty
                equals
                to the interest herein on the daily
                basis.

            


    

    
      	8.4	
              In
                the case, without the Lender’s written consent, the Borrower prepay
                borrowings hereunder, the Lender is entitled to collect the interests
                in
                accordance with the schedule and the interest rate hereunder.
                

            


    

    
      	8.5	
              In
                the event of default in the payment of the principal and the accrued
                interest when due as herein provided, the Lender is entitled to demand
                the
                Borrower to repay the full amount of the outstanding loan within
                a limited
                time, to set off the outstanding borrowings against the Borrower’s any
                account opened at the Lender and to receive the default interest
                against
                the unpaid principal on the rate of X of ten thousand percent (0.0X%)
                per
                day and the compound interest against the unpaid
                interest.

            


    


    
      
         

      

      
        4

        
          

        

      

      
         

      

    


    
      	8.6	
              In
                the event the Borrower is not in compliance with the purpose hereunder,
                the Lender is entitled to demand a part or entire borrowings or early
                terminate the Agreement, and to receive the default interest against
                the
                amount of the borrowings against the purpose on the rate of X of
                ten
                thousand percent (0.0X%) per day and the compound interest against
                the
                unpaid interest.

            


    

    
      	8.7.	
              In
                case the default set forth in Article 8.5 and Article 8.6 occur
                simultaneously, the Lender may only opt the heavier one, and not
                apply
                both Articles.

            


    

    
      	8.8	
              In
                the event any of the following occurs, the Borrower shall amend it
                and
                adopt satisfactory actions the Lender may accept within seven days
                upon
                the Lender’s notice, otherwise the Lender is entitled to early demand the
                Borrower to repay a part or a whole amount of the borrowings. In
                the case
                the Borrower fails to repay, the Lender may demand the penalty calculated
                by the default interest rate on daily
                basis.

            


    

    
      	8.8.1	
              The
                Borrower provides false or hides material balance sheet or income
                statement and other related financial
                information.

            


    

    
      	8.8.2	
              The
                Borrower does not cooperate with or refuse the Lender’s supervision
                related to purpose hereunder and production, business operation and
                financial condition.

            


    

    
      	8.8.3	
              Without
                the Lender’s consent, the Borrower transfers or disposes, or threatens to
                transfer or dispose its material
                assets.

            


    

    
      	8.8.4	
              The
                material or whole assets of the Borrower are possessed by other creditors,
                or are assigned to a trustee, or are taken over by receivers or the
                like
                persons, or its assets are distrained or freezed, and the aforementioned
                conditions could cause the Lender material
                lost.

            


    

    
      	8.8.5	
              Without
                the Lender’s consent, the Borrower agrees to carry out outsource, lease,
                conversion to share-holding system, co-operating business, merger,
                acquisition, joint venture, split, capital reduction, change in
                share-holding, material asset transfer and other actions could affect
                the
                Lender’s rights and interests.

            


    

    
      	8.8.6	
              The
                Borrower changes its business address, correspondence address, business
                scope, legal representative and other business registration items,
                or
                carries out material investments that severely affect or threaten
                the
                Lender’s rights and interests
                hereunder.

            


    

    
      	8.8.7	
              The
                Borrower engages in material economic dispute, or its financial condition
                worsens to cause material adverse effects or threatens the Lender’s right
                hereunder.

            


    

    
      	8.8.8	
              Any
                other condition that could cause material adverse effects or threaten
                the
                Lender’s rights and interests
                hereunder.

            


    

    


    Article
      9. Effectiveness, Modification, Cancellation and Termination
      of the Agreement

    
      	9.1	
              The
                Agreement shall become effective after the legal representatives
                or the
                authorized persons of the parties sign and affix personal seals and
                corporate seals, and shall be terminated after the principal, the
                interest, the compound interest, the punitive interest, the penalty
                and
                other costs and expenses are
                repaid.

            


    

    
      	9.2	
              In
                the case any of the following occurs, the Lender may cancel the Agreement
                and demand the Borrower for early repaying the principal and the
                interest
                and compensating its lost:

            


    


    
      
         

      

      
        5

        
          

        

      

      
         

      

    


    
      	9.2.1	
              In
                case the Borrower ceases operation, is dissolved, ceases management
                or is
                abolished business license

            


    

    
      	9.2.2	
              The
                guarantee provided herein occurs adverse changes, and the Borrower
                is not
                able to provide other guarantees as the Lender
                demands.

            


    

    
      	9.2.3	
              Any
                other material breach of this
                Agreement.

            


    

    
      	9.3	
              If
                the Borrower requests to roll over the Facility, it should submit
                a
                thirty-day written application before the maturity date of this Agreement
                to the Lender and the Guarantor’s written agreement of continuing to
                provide guarantee; after the Lender reviews and consents to the
                application and the roll-over agreement is signed by and between
                the
                parties, the roll-over of the Facility shall be effective. This Agreement
                shall be continuing valid and effective until the parties sign the
                roll-over agreement.

            


    

    
      	9.4	
              After
                the Agreement becomes effective, except as otherwise provided herein,
                either party shall not early terminate this Agreement, if it is necessary
                to modify or terminate the Agreement, the parties shall reach a written
                agreement. The agreement remains valid and effective before the written
                agreement is reached.

            


    

    


    
      Article10.
        Dispute Resolution

    

    
      	
              10.1

            	
              Any
                dispute arising out of or related to this Agreement shall be negotiated
                by
                the parties, if the dispute is not able to be solved through negotiation,
                it shall be solved in accordance with Article
                10.1.2.

            


    

    
      	10.1.1	
              Solved
                via Arbitration.

            


    

    
      	10.1.2	
              The
                dispute shall be submitted to and tried by the court, in which the
                Lender
                resides.

            


    

    


    Article
      11. Other Covenant

    (N/A)

    


    Article
      12. Appendix

    
      	12.1	
              The
                appendixes of this Agreement shall constitute an undividable part
                of the
                Agreement, and shall have the same legal effect as the
                Agreement.

            


    

    
      	12.2	
              While
                the Agreement is effective, if any drawdown date or repayment date
                falls
                on a non bank business day, it shall be deferred to the next bank
                business
                day.

            


    

    
      	12.3	
              This
                agreement is to be written up in two original copies with the Borrower
                and
                the Lender. Each party shall hold one original copy, which shall
                have same
                legal effects.

            


    

    


    The
      Borrower: Danyang
      Lihua Electron Co., Ltd 

    Leal
      Representative (or authorized person)

    


    The
      Lender: Bank
      of
      Jiangsu Danyang Branch 

    Leal
      Representative (or authorized person)

    


    Date
      :
      July 27, 2008


    
      
         

      

      
        6