Exhibit
10.8

     

    EQUITY
PLEDGE AGREEMENT

     

    This
Equity Pledge Agreement (hereinafter this “Agreement”) is dated
March 19, 2010, and is entered into in Neiqiu County, Hebei Province, People’s
Republic of China (“PRC” or “China”) by and among Xingtai Kalington Consulting
Service Co., Ltd. (“Pledgee”), Xingtai
Longhai Wire Co., Ltd.  (“Party B” or the “Company”), and each of the
shareholders of Party B  listed on the signature pages hereto (each a
“Pledgor” and collectively, the “Pledgors”).

     

    RECITALS

     

    1.           The
Pledgee is a company incorporated in the PRC as a foreign invested enterprise
and has the expertise in the business of consulting.

    


    2.           The
Company is a company incorporated in the People’s Republic of China (“PRC” or
“China”) and is in the business of rolling steel (wire) (the
“Business”).

    


    3.           The
Pledgors are shareholders of the Company and collectively own 100% of the
outstanding equity interests of the Company.

    


    4.           The
Pledgee and the Company have executed a Consulting Services Agreement (the
“Consulting Services
Agreement”) concurrently herewith, pursuant to which the Company shall
pay consulting and service fees (the “Consulting Services
Fee”) to the Pledgee for consulting and related services in connection
with the Business.

    


    5.           In
order to ensure that the Company will perform its obligations under the
Consulting Services Agreement, and in order to provide an additional mechanism
for the Pledgee to enforce its rights to collect the Consulting Services Fee
from the Company, the Pledgors agree to pledge all their equity interests in the
Company as security for the performance of the obligations of the Company under
the Consulting Services Agreement, including payment of the Consulting Services
Fee.

    


    NOW THEREFORE, the Pledgee,
the Company and the Pledgors through mutual negotiations hereby enter into this
Agreement based upon the following terms:

    


    1.           Definitions and
Interpretation.  Unless otherwise provided in this Agreement,
the following terms shall have the following meanings:

    


    1.1           “Pledge” refers to the
full content of Section 2 hereunder.

    


    1.2           “Equity Interest”
refers to all the equity interests in the Company legally held by the
Pledgors.

    


    1.3           “Term of Pledge”
refers to the period provided for under Section 3.2 hereunder.

    


    1.4           “Event of Default”
refers to any event in accordance with Section 7.1 hereunder.


    
      
         


      

      
         


        
          

        

      

      
         


      

    

    


    1.5           “Notice of Default”
refers to the notice of default issued by the Pledgee in accordance with this
Agreement.

    


    2.           The
Pledge.  The Pledgors hereby pledge the Equity Interest to the
Pledgee as a security for the obligations of the Company under the Consulting
Services Agreement (the “Pledge”).  Pursuant thereto, the Pledgee
shall have priority in receiving payments from the evaluation or the proceeds
from the auction or sale of the Equity Interest. The Equity Interest shall
hereinafter be referred to as the “Pledged Collateral”.

    


    3.           Term of
Pledge.

    


    3.1           The
Pledge shall take effect as of the date when the Pledge is recorded in the
Company’s Register of Shareholders, and shall expire two (2) years from the
Company’s satisfaction of all its obligations under the Consulting Services
Agreement (the “Term”).

    


    3.2           During
the Term, the Pledgee shall be entitled to vote, control, sell, or dispose of
the Pledged Collateral in accordance with this Agreement in the event that the
Company does not perform its obligations under the Consulting Services
Agreement, including without limitations thee failure to pay the Consulting
Service Fee.

    


    3.3           During
the Term, the Pledgee shall be entitled to collect any and all dividends
declared or paid in connection with the Pledged Collateral.

    


    4.           Pledge Procedure and
Registration.

    


    4.1           The
Pledge shall be recorded in the Company’s Register of
Shareholders.  The Pledgors shall, within ten (10) days after the date
of this Agreement, process the registration procedures with the Administration
for Industry and Commerce concerning the Pledge.

    


    5.           Representation and
Warranties of Pledgors.

    


    5.1           The
Pledgors are the legal owners of the Pledged Collateral.

    


    5.2           Other
than to the Pledgee, the Pledgors have not pledged the Pledged Collateral to any
other party, and the Pledged Collateral is not encumbered to any other
party.

    


    6.           Covenants of
Pledgors.

    


    6.1           During
the Term, the Pledgors represent and warrant to the Pledgee for the Pledgee’s
benefit that the Pledgors shall:

    


     
6.1.1     Not transfer or assign the Pledged
Collateral, nor create or permit to create any pledge or encumbrance to the
Pledged Collateral which may adversely affect the rights and/or benefits of the
Pledgee without the Pledgee’s prior written consent.

    


    Equity
Pledge Agreement

    LONGHAI


    
      
         


      

      
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6.1.2     Comply with the laws and regulations with
respect to the Pledge; present to Pledgee any notices, orders or advisements
with respect to the Pledge that may be issued or made by a competent PRC
authority within five (5) days upon receiving such notices, orders or
advisements; comply with such notices, orders or advisements; or object to the
foregoing matters upon the reasonable request of the Pledgee or with consent
from the Pledgee.

    


     
6.1.3     Timely notify the Pledgee of any events which
may affect the Pledged Collateral or the Pledgors’ rights thereto, or which may
change any of the Pledgors’ warranties or affect the Pledgor’s performance of
their obligations under this Agreement.

    


    6.2           The
Pledgors agree that the Pledgee’s right to the Pledge pursuant to this Agreement
shall not be suspended or inhibited by any legal proceedings initiated by the
Pledgors, jointly or separately, or by any successor of or any person authorized
by the Pledgors.

    


    6.3           The
Pledgors represent and warrant to the Pledgee that in order to protect and
perfect the security for the payment of the Consulting Services Fee, the
Pledgors shall execute in good faith and cause other parties who have interests
in the Pledged Collateral to execute all the title certificates, contracts, and
perform actions and cause other parties who have interests to take action, as
required by the Pledgee.

    


    6.4           The
Pledgors represent and warrant to the Pledgee or its appointed representative
(whether a natural person or a legal entity) that they will execute all
applicable and required amendments in connection with the registration of the
Pledge, and within a reasonable amount of time upon request, provide the
relevant notice, order and decision regarding such registration to the
Pledgee.

    


    6.5           The
Pledgors represent and warrant to the Pledgee that they will abide by and
perform all relevant guarantees, covenants, warranties, representations and
conditions necessary to insure the rights of the Pledgee under this
Agreement.  The Pledgors shall compensate all the losses suffered by
the Pledgee as a result of the Pledgors’ failure to perform any such guarantees,
covenants, warranties, representations or conditions.

    


    7.           Events of
Default.

    


    
      7.1           The
occurrence of any one of the following events shall be regarded as an “Event of
Default”:

    

    


     7.1.1     This
Agreement is deemed illegal by a governing authority of the PRC, or the Pledgor
is incapable of continuing to perform the obligations herein due to any reason
except force
majeure;

    


     7.1.2     The
Company fails to timely pay the Consulting Services Fee in full as required
under the Consulting Service Agreement;

    


     7.1.3     A
Pledgor makes any materially false or misleading representations or warranties
under Section 5 herein, or breaches any warranties under Section 5
herein;

    


    Equity
Pledge Agreement

    LONGHAI


    
      
         


      

      
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7.1.4     A Pledgor
breaches the covenants under Section 6 herein;

    

    


    
       
7.1.5     A Pledgor
breaches any terms and conditions of this Agreement;

    

    


     
7.1.6     A Pledgor transfers or assigns, cause to be
transferred or assigned, or otherwise abandons the Pledged Collateral without
the prior written consent of the Pledgee;

    


     
7.1.7     The Company is incapable of repaying
debt;

    


     
7.1.8     The assets of a Pledgor are adversely
affected so as to cause the Pledgee to believe that such Pledgor’s ability to
perform the obligations herein is adversely affected;

    


     
7.1.9     The successors or agents of the Company
refuse, or are only partly able, to perform the payment obligations under the
Consulting Services Agreement;

    


    7.2           A
Pledgor shall immediately give a written notice to the Pledgee if such Pledgor
is aware of or discovers that any event under Section 7.1 herein, or any event
that may result in any one of the foregoing events, has occurred or is likely to
occur.

    


    7.3           Unless
an Event of Default has been resolved to the Pledgee’s satisfaction within 15
days of its occurrence (the “Cure Period”), the Pledgee may, at any time
thereafter, give a written default notice (the “Default Notice”) to the Pledgor
and require the Pledgors to immediately make full payment of the then
outstanding Consulting Service Fee and any other outstanding payables in
accordance with Section 8 herein.

    


    8.           Exercise of
Remedies.

    


    8.1           Authorized Action by Secured
Party. The
Pledgors hereby irrevocably appoint Pledgee as the attorney-in-fact of the
Pledgors for the purpose of carrying out the security provisions of this
Agreement and to take any action and execute any instrument that the Pledgee may
deem necessary or advisable to accomplish the purpose of this
Agreement.  Such power of attorney shall be effective, automatically
and without the necessity of any action (including any transfer of any Pledged
Collateral) by any person, upon the occurrence an Event of
Default.  Pledgee shall not have any duty to exercise any such right
or to preserve the same and shall not be liable for any failure to do so or for
any delay in doing so.

    


    If an Event of Default occurs, or is
already proceeding, Pledgee shall have the right to exercise the following
rights:

    


    (a)           Collect
by legal proceedings or otherwise, and endorse and/or receive all payments,
proceeds and other sums and property now or hereafter payable on or on account
of the Pledged Collateral;

    


    Equity
Pledge Agreement

    LONGHAI


    
      
         


      

      
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    (b)           Enter
into any extension, reorganization, deposit, merger, consolidation or other
agreement pertaining to, or deposit, surrender, accept, hold or apply other
property in exchange for the Pledged Collateral;

    


    (c)           Transfer
the Pledged Collateral under the Pledgee’s name or under an appointed
nominee;

    


    (d)           Make
any compromise or settlement, and take any action the Pledgee deems advisable,
with respect to the Pledged Collateral;

    


    (e)           Notify
any obligor with respect to the Pledged Collateral to make payment directly to
the Pledgee;

    


    (f)           All
rights of the Pledgors that they would otherwise be entitled to enjoy or
exercise with respect to the Pledged Collateral, including without limitations
the rights to vote and to receive distributions, shall cease without any further
action by or notice, and all such rights shall thereupon become vested in the
Pledgee; and

    


    (g)           The
Pledgors shall execute and deliver to the Pledgee such other instruments as the
Pledgee may request in order to permit the Pledgee to exercise the rights set
forth herein.

    


    8.2           Other
Remedies.  Upon the expiration of the Cure Period, the Pledgee,
in addition to the remedies set forth in Section 8.1 or such other rights in
law, equity or otherwise, may, without notice or demand on the Pledgors, elect
any of the following:

    


    (a)           Require
the Pledgors to immediately pay all outstanding unpaid amounts due under the
Consulting Services Agreement;

    


    (b)           Foreclose
or otherwise enforce the Pledgee’s security interest to the Pledged Collateral
in any manner permitted by law or provided under this Agreement;

    


    
      (c)           Terminate
this Agreement pursuant to Section 11;

    

    


    (d)           Exercise
any and all rights as the beneficial and legal owner of the Pledged Collateral,
including, without limitation, the transfer and exercise of voting and any other
rights to the Pledged Collateral; and

    


    (e)           Exercise
any and all rights and remedies of a secured party under applicable
laws.

    


    8.3           The
Pledgee has priority in the receipt of payments from the proceeds of auction or
sale of the Pledged Collateral, in part or in whole, in accordance with legal
procedures, until all payment obligations under the Consulting Services
Agreement are satisfied.

    


    Equity
Pledge Agreement

    LONGHAI


    
      
         


      

      
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    8.4           The
Pledgors shall not hinder the Pledgee from exercising its rights in accordance
with this Agreement and shall give necessary assistance so that the Pledgee may
exercise its rights in full.

    


    9.           Assignment.

    


    9.1            The
Pledgors shall not assign or otherwise transfer the rights and obligations
herein without the Pledgee’s prior written consent.

    


    9.2           This
Agreement shall be binding upon each of the Pledgors and their respective
successors, and shall be binding on the Pledgee and each of its successor and
assignee.

    


    9.3           Upon
the transfer or assignment by the Pledgee of any or all of its rights and
obligations under the Consulting Service Agreement, the Pledgee’s transferee or
assignee shall enjoy and undertake the same rights and obligations as the
Pledgee under this Agreement.  The Pledgors shall be notified of any
such transfer or assignment by written notice and at the request of the Pledgee,
the Pledgors shall execute such relevant agreements and/or documents with
respect to such transfer or assignment.

    


    9.4           In
the event of the Pledgee’s change in control resulting in the transfer or
assignment of this Agreement, the successor to the Pledgee and the Pledgors
shall execute a new equity pledge agreement.

    


    
      	
              10.

            	
              Formalities, Fees and
      Other Charges.

            


    

    


    10.1         The
Pledgors shall be responsible for all the fees and expenses in relation to this
Agreement, including, but not limited, to legal fees, cost of production, stamp
tax and any other taxes and charges.  If the Pledgee pays the relevant
taxes in accordance with applicable law, the Pledgors shall fully reimburse the
Pledgee of such taxes.

    


    10.2         The
Pledgors shall be responsible for all expenses (including, but not limited to,
any taxes, application fees, management fees, litigation costs, attorney’s fees,
and various insurance premiums in connection with the disposition of the Pledge)
incurred by the Pledgee in its recourse to collect from the Pledgors arising
from the Pledgors’ failure to pay any relevant taxes and fees.

    


    
      	
              11.

            	
              Confidentiality.
      The Parties hereby acknowledge and agree to ensure the confidentiality of
      all oral and written materials exchanged relating to this
      Agreement.  No Party shall disclose any confidential information
      to any other third party without the other Parties’ prior written
      approval, unless: (a) such information was in the public domain at the
      time it was communicated (unless it entered the public domain without the
      authorization of the disclosing Party); (b) the disclosure was in response
      to the relevant laws, regulations, or stock exchange rules; or (c) the
      disclosure was required by any of the Party’s legal counsel or financial
      consultant for the purpose of the transaction underlying this
      Agreement.  However, such legal counsel and/or financial
      consultant shall also comply with the confidentiality as stated
      hereof.  The disclosure of confidential information by employees
      or agents of the disclosing Party is deemed to be an act of the disclosing
      Party, and such disclosing Party shall bear all liabilities for any breach
      of confidentiality.

            


    

    


    Equity
Pledge Agreement

    LONGHAI


    
      
         


      

      
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              12.

            	
              Dispute
      Resolution.

            


    

    


    12.1         This
Agreement shall be governed by and construed in accordance with the laws of the
PRC.

    


    12.2         The
Parties shall strive to resolve any disputes arising from the interpretation or
performance of this Agreement through amicable negotiations.  If a
dispute cannot be settled, any Party may submit such dispute to China
International Economic and Trade Arbitration Commission (“CIETAC”) for
arbitration. There shall be three (3) arbitrators.  Party B shall
select one (1) arbitrator and Party A shall select one (1) arbitrator, and both
arbitrators shall be selected within thirty (30) days after giving or receiving
the demand for arbitration.  Such arbitrators shall be freely
selected, and the Parties shall not be limited in their selection to any
prescribed list.  The chairman of the CIETAC shall select the third
arbitrator.  If a Party does not appoint an arbitrator who consents to
participate within thirty (30) days after giving or receiving the demand for
arbitration, the relevant appointment shall be made by the chairman of the
CIETAC. The arbitration shall abide by the rules of CIETAC, and the arbitration
proceedings shall be conducted in Beijing, China in English.  The
decision of CIETA shall be final and binding upon the parties.

    


    13.           Notices.  Any
notice given by the parties hereto for the purpose of performing the rights and
obligations hereunder shall be in writing.  If such notice is
delivered by messenger, the time of receipt is the time when such notice is
received by the addressee; if such notice is transmitted by facsimile, the time
of receipt is the time when such notice is transmitted.  If the notice
does not reach the addressee by the end of the business day, the following
business day shall be the date of receipt.  The place of delivery is
the Party’s address as set forth in the signature pages hereto or the address
advised in writing including via facsimile.

    


    14.           Entire
Contract.  The Parties agree that this Agreement constitutes
the entire agreement of the Parties upon its effectiveness and supersedes all
prior oral and/or written agreements and understandings relating to this
Agreement.

    


    15.           Severability.  If
any provision or provisions of this Agreement shall be held by a proper
authority to be invalid, illegal, unenforceable or in conflict with the laws and
regulations of the PRC, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired
thereby.

    


    16.           Appendices.  The
appendices to this Agreement are incorporated into and are a part of this
Agreement.

    


    17.           Amendment or
Supplement.

    


    Equity
Pledge Agreement

    LONGHAI


    
      
         


      

      
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    17.1         The
Parties may amend this Agreement in writing, provided that such amendment shall
be duly executed and signed by the Pledgee, the Company, and such Pledgors
collectively holding a majority of the Equity Interests, and such amendment
shall thereupon become a part of this Agreement and shall have the same legal
effect as this Agreement.

    


    17.2         This
Agreement and any amendments, modification, supplements, additions or changes
hereto shall be in writing and come into effect upon being executed and stamped
by the parties hereto.

    


    18.           Language and Copies of the
Agreement.  This Agreement shall be executed in English in five
(5) original copies.  Each Party shall receive one (1) original copy,
all of which shall be equally valid and enforceable.

    


    [SIGNATURE
PAGE FOLLOWS]

    
       

      Equity
Pledge Agreement

      LONGHAI
 

    

    
      
         


      

      
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    IN WITNESS WHEREOF this
Agreement is duly executed by each Party or its legal representatives as of the
date first set forth above.

    


    
      	
              PLEDGEE:

            	
              Xingtai
      Kalington Consulting Service Co.,
Ltd.

            


    

     

    Legal/Authorized
Representative: ______________________

    Name: WANG Chaojun

    Title: Executive Director

     

    
      	
              PARTY B:

            	
              Xingtai
      Longhai Wire Co., Ltd.

            


    

     

    Legal/Authorized
Representative: ______________________

    Name: WANG Chaojun

    Title: Chairman of Board of
Directors

    
       

      Equity
Pledge Agreement

      LONGHAI

    

     

    
      
         


      

      
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    PLEDGOR SIGNATURE
PAGE

    


    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	
                                                      PLEDGORS:

                                                    
	 
      	 
      	 
	 
      	 
	
                                                      WANG
      Chaojun

                                                    
	
                                                      ID Card
      No.:130502195507260912

                                                    
	
                                                      Owns
      80% of Xingtai Longhai Wire Co., Ltd.

                                                    
	 
      	 
      	 
	 
      	 
	
                                                      WEALTH
      INDEX (Beijing) International Investment Consulting Co.,
    Ltd

                                                    
	
                                                      Owns
      15% of Xingtai Longhai Wire Co., Ltd.

                                                    
	 
      	 
      	 
	
                                                      By:

                                                    	 
      	 
	
                                                      Name:
      WAN Liang

                                                    
	
                                                      Title:
      Executive Director

                                                    
	 
      	 
      
	 
      	 
	
                                                      CHEN
      Wenyi

                                                    
	
                                                      ID
      Card No.: 150203198307203363

                                                    
	
                                                      Owns
      5% of Xingtai Longhai Wire Co.,
Ltd.

                                                    


                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    


    Equity
Pledge Agreement

    LONGHAI


    
      
         


      

      
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    Appendix
1

    


    RESOLUTIONS
OF THE SHAREHOLDERS

    OF XINGTAI LONGHAI WIRE CO.,
LTD.

    


    WHEREAS,
Xingtai Longhai Wire Co., Ltd. (the “Company”) has entered into a Consulting
Services Agreement with Xingtai Kalington Consulting Service Co.,
Ltd.   (the “Xintai Kalington”), pursuant to which the Company is
obligated to pay certain fees in exchange for  Xintai Kalington ’s
consultation and related services;

    


    WHEREAS,
the undersigned shareholders of the Company (the “Shareholders”) collectively
hold 100% of the issued and outstanding equity interests of the Company (the
“Equity Interest”), and have been requested by the Company to pledge the Equity
Interest to Xintai Kalington  pursuant to an Equity Pledge Agreement
in order to secure the Company’s payment obligations under the Consulting
Services Agreement; and

    


    WHEREAS,
it is in the best interest of the Company and the Shareholders to enter into the
Pledge Agreement;

    


    RESOLVED,
that the Shareholders shall pledge the Equity Interest to Xintai Kalington
pursuant to the Equity Pledge Agreement, the terms and conditions of which are
hereby approved.

    


    These
resolutions were executed and submitted on March 19, 2010 by the undersigned
shareholders:

    


    Equity
Pledge Agreement

    LONGHAI


    
      
         


      

      
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    SHAREHOLDERS:

    


    
      
        
          
            
              
                
                  
                    
                      	 
      	 
      
	
                              WANG
      Chaojun

                            
	
                              ID Card
      No.:130502195507260912

                            
	
                              Owns
      80% of Xingtai Longhai Wire Co., Ltd.

                            
	 
      	 
      	 
      
	 
      	 
      
	
                              WEALTH
      INDEX (Beijing) International Investment Consulting Co.,
    Ltd

                            
	
                              Owns
      15% of Xingtai Longhai Wire Co., Ltd.

                            
	 
      	 
      	 
      
	
                              By:

                            	 
      	 
      
	
                              Name:
      WAN Liang

                            
	
                              Title:
      Executive Director

                            
	 
      	 
      	 
      
	 
      	 
      
	
                              CHEN
      Wenyi

                            
	
                              ID
      Card No.: 150203198307203363

                            
	
                              Owns
      5% of Xingtai Longhai Wire Co.,
Ltd.

                            


                    

                  

                

              

            

          

        

      

    

    


    Equity
Pledge Agreement

    LONGHAI
 

    
      
         


      

      
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