Document:

Exhibit
10.30

     

    Non-promissory
Short Term Revolving Financing Agreement

     

    October
12, 2009

     

    This Agreement is signed between the
two parties as follows:

    

    
      	
              (1)

            	
              Citi
      Bank (China) Limited, Shanghai
Branch

            

    

    Address:
33th floor Citigroup Tower, No.33 Hua Yuan Shi Qiao Road, Lu Jia Zui Finance and
Trade Area, Shanghai, P.R.Chian

    (hereinafter
referred to as the Loan
Bank), and

    

    
      	
              (2)

            	
              Xi’an
      TCH Energy Technology Co., Ltd.(“Xi’an
TCH”)

            

    

    Address:
No.86 Gao Xin Road, Gao Xin District, Xi’an City, P.R.Chian, and

    

    
      	
              (3)

            	
              Inner
      Mongolia Erdos TCH Energy-Saving Development Co., Ltd (“Erdos
      TCH”).

            

    

    Address:
Etuokeqi Qipan Jing Industrial Park, Eros City, Inner Mongolia,
P.R.Chian

    (Signatory
(2) and Signatory (3) are hereinafter referred t to as the Customers)

    

    The two parties hereby agree as
follows:

     

    
      
        	
                1.

              	
                The
      attached “Financing Agreement General Terms and Conditions” and any
      relevant ancillary files are integral parts of the
    agreement.

              
	 	 

      

    

    
      
        	
                2.

              	
                The
      maximum amount of the financing: RMB20,000,000

              
	 	 

      

    

    In any
case, the total outstanding financing the two customers have under this
agreement shall not exceed the aforementioned financing amount.

    
      
        	 	 
	
                3.

              	
                Financing
      Currency: RMB

              
	 	 

      

    

    
      	
              4.

            	
              Financing
      Methods and Limits:

            

    

    · for
discount business: shall not exceed RMB20,000,000

    · for
accounts payable financing: shall not exceed RMB20,000,000

     

    In any case, the total outstanding
financing subject to all the aforementioned financing
methods shall not exceed the maximum financing amount.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        	
                5.

              	
                The
      longest maturity of any financing method: 6 months

              
	 	 

      

    

    
      
        	
                6.

              	
                loaning
      rate/commission rate/financing
rate:

              

      

    

    · In
reference to any discount business, the discount rate shall be determined in the
ancillary files to be attached.

    · In
reference to accounts payable financing, the financing rate shall be determined
in the ancillary files to be attached..

    
      
        	 	 
	
                7.

              	
                Purpose
      of financing: for working capital needs and purchasing raw
      materials

              
	 	 

      

    

    
      
        	
                8.

              	
                Guaranty
      and Guaranty Provider:

              

      

    

    
      
        
          	
                  
                  

                	
                  ·

                	
                  The
      customers shall provide Pledge Agreements signed between the customers and
      the loan bank as cash
guaranty

                

        

      

    

    
      	
            	
              
                ·

              

            	
              
                Xi’an
      TCH shall provide a Letter of Assurance for Erdos TCH as
      guaranty.

              

            

    

    
      	
            	
              
                ·

              

            	
              
                Erdos
      TCH shall provide a Letter of Assurance for Xi’an TCH as
      guaranty.

              

            

    

    
      	
            	
              
                ·

              

            	
              
                Shanghai
      TCH Energy Technology Co., Ltd. shall provide a Letter of Assurance as
      guaranty.

              

            

    

    
      	
            	
              
                ·

              

            	
              
                Mr.
      Guohua Ku shall provide a Letter of Assurance as
      guaranty.

              

            

    

    
      	
              
              

            	
              
                ·

              

            	
              
                The
      customers shall provide Pledge Guaranties with its accounts receivable
      through signing Accounts Receivable Pledge Agreement and Accounts Custody
      Agreements with the loan bank.

              

            
	 	 	 

    

    
      
        	
                9.

              	
                Penalty
      interest rate:

              
	 	 

      

    

    Pursuant
to the provision in the term 12 of Financing Agreement General Terms and
Conditions, penalty interest rate shall be:

    In RMB:
penalty interest rate shall be the lowest penalty interest rate that is allowed
according to the related regulations of People’s Public of China on overdue
loans.

    In US
dollar: penalty interest rate shall be determined by the loan bank.

     

    
      
        	
                10.

              	
                Fees
      for setup of a credit line: the customers shall pay credit line setup fees
      in accordance with the specified amount, time and other provisions in the
      “Letter for  Credit Line Setup Fees ” issued by the loan bank in
      any time.

              
	 	 

      

    

    
      	
              11.

            	
              Independence
      and division

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                11.1

              	
                Every
      funding transaction supplied by the loan bank in accordance to the
      agreement is an independent transaction. The relevant ancillary files
      provided by the customers for each funding transaction under this the
      agreement constitute a complete set of independent contract for the
      funding. The contract shall automatically expire after the customers pay
      off all the principle and interest and/or related
  interest.

              
	 	 

      

    

    
      
        	
                11.2

              	
                Each
      customer shall have joint obligation under this agreement. If
      one  customer fails in repayment for the payable on the due
      date, the loan bank shall have the right to request the other customer(s)
      for repayment.

              
	 	 

      

    

    
      
        	
                11.3

              	
                If
      the loan bank decides to cancel and/or terminate providing funds to one
      customers, and/or accelerate the expiration date of any or all unpaid
      loans and request for immediate repayment, the loan bank shall have the
      right to decide to accelerate the expiration date of unpaid loans of the
      other customer(s).

              
	 	 

      

    

    
      
        	
                11.4

              	
                It
      is irrevocably agreed by all the customers under this agreement that any
      changes, amendments or supplements to the provisions of this agreement and
      its ancillary files can be made by signing amendment or supplementary
      agreement between the loan bank and the directly related customer, and no
      need the other parties of this agreement to sign such amendment or
      supplements.

              
	 	 

      

    

    
      
        	
                12.

              	
                restriction
      on related-party transaction:

              
	 	 

      

    

    
      
        	
                12.1

              	
                The
      customers agree that, without the consent of the loan bank, the financing
      under the agreement shall not be used for paying any transactions between
      the customer(s) and its related parties. The related party includes (1)
      the customers’ subsidiary, share-holding company (either directly or
      indirectly), affiliated company, the customers’ shareholders (either legal
      entity or individual), other corporations or companies in which the
      customers’ shareholders hold the shares directly or indirectly (no matter
      in control or not); (2) any corporations or companies in which the
      customers’ shareholders’ (natural person) spouses, direct relatives, or
      collateral relatives in three generations, directors, supervisors,
      executives, and any corporations or companies in which the aforementioned
      persons hold the shares (no matter in control or not); (3) the corporation
      in which the customers may actually take controls in business through
      investment relationship, agreement or other
  arrangements.

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  12.2

                	
                  If
      the customers need to use the fund under the agreement to pay for the
      transactions between the customers and any aforementioned related party,
      the customers should submit a written request to the loan bank. After
      being examined and approved by the loan bank, the customers may use the
      funds approved for the related party in accordance within the line of
      financing of this agreement.

                
	 	 

        

      

    

    
      	
              
                13.

              

            	
              
                Special
      assurance:

              

            
	 	 

    

    Starting from the date of signing this
agreement to the date when all the loan principle and interests have been paid
off, the customers hereby agree:

    

    
      
        	
                · 

              	
                the
      customers agree to deposit their incomes from sales of products and
      services into the accounts with the loan bank (hereinafter referred to as
      “income amount”), and average monthly income amount of the customers is no
      less than RMB5,000,000. The condition for the first draw for the customers
      is that the single month income amount shall reach 80% of the expected
      income amount as set forth in the agreement for that month. The expected
      income amount for each month is listed as
  follows.

              

      

    

    

    
      
        
          
            
              
                
                  	
                          Incoming Month

                        	 	
                          Expected Incoming Amount
    (RMB)

                        	 
	
                          September,
      2009

                        	 	 	6,600,000	 
	
                          October,
      2009

                        	 	 	6,600,000	 
	
                          November,
      2009

                        	 	 	11,900,000	 
	
                          January,
      2010

                        	 	 	11,900,000	 
	
                          February,
      2010

                        	 	 	11,900,000	 
	
                          March,
      2010

                        	 	 	11,900,000	 
	
                          April,
      2010

                        	 	 	11,900,000	 
	
                          May,
      2010

                        	 	 	11,900,000	 
	
                          June,
      2010

                        	 	 	11,900,000	 
	
                          July,
      2010

                        	 	 	11,900,000	 
	
                          August,
      2010

                        	 	 	11,900,000	 
	
                          September,
      2010

                        	 	 	11,900,000	 
	
                          October,
      2010

                        	 	 	11,900,000	 

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        
          	
                  ·

                	
                  For
      the customers, the interval between two drawings shall not be shorter than
      30 days.

                
	 	 

        

      

    

    
      	
              
                ·

              

            	
              
                For
      the customers, the amount of each drawing shall not exceed 35% of the
      maximum financing amount.

              

            
	 	 

    

    
      	
              
                ·

              

            	
              
                If
      a single month income amount is less than 70% of the expected income
      amount of that month, the loan bank shall have the right to suspend,
      cancel or terminate finance immediately in accordance with the term 16.2
      of Financing Agreement General Terms and Conditions, and to accelerate the
      expiration date of part or all unpaid loans and request for immediate
      repayment. Meanwhile, the loan bank shall have the off-set right in
      accordance with the term 15 of Financing Agreement General Terms and
      Conditions.

              

            

    

    

    
      WHEREAS,
both parties of the agreement duly authorize representatives to sign the
agreement on the date stated in the beginning of the agreement, this agreement
shall take effect from the date of its execution by the duly authorized
representatives of the parties.

    

    

    
      
        
          
            	
                    /s/ Representative of the Loan
      Bank

                  

          

        

      

    

    Representatives
of the Loan Bank

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    /s/ Representative of Xi’an
TCH Engergy Technology Co., Ltd.

    Representatives
of Xi’an TCH Energy Technology Co., Ltd.

    

    (Official
sealed)

    

    /s/ Representative of Inner
Mongolia TCH Energy-Saving Development Co., Ltd.

    Representatives
of Inner Mongolia TCH Energy-Saving Development Co., Ltd.

    

    (Official
sealed)

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Financing
Agreement General Terms and Conditions

    

    
      
        	
                1.

              	
                General
      Terms

              
	 	 

      

    

    
      
        
          	
                  1.1

                	
                  The
      terms and conditions (“terms and conditions”) shall apply to each
      financing transaction under the financing agreement signed from any time
      or signed in the future between the customers and related branch of the
      Citi Bank (China) which supplies the financing (“loan bank”) mentioned in
      the financing agreement (“financing agreement”), and be binding on the
      customers and the loan bank.

                
	 	 

        

      

    

    
      	
              
                1.2

              

            	
              
                The
      terms and conditions may be revised and/or amended by the financing
      agreement, and shall be read with the financing agreement. The terms and
      conditions is the integral part of the financing agreement (together are
      called “the agreement”).

              

            
	 	 

    

    
      	
              
                1.3

              

            	
              
                If
      the terms and conditions are inconsistent with the financing agreement,
      the latter shall govern. If the financing agreement is inconsistent with
      the ancillary files (defined as follows), the latter shall
      govern.

              

            
	 	 

    

    
      
        	
                2.

              	
                Financing

              
	 	 

      

    

    
      
        	
                2.1

              	
                Subject
      to the terms and conditions of the agreement and its ancillary files, the
      customers may ask the loan bank and the loan bank may agree (but no
      obliged to) to supply the customers with the non-promissory short term
      credit financing (the financing), financing methods include loan, bank
      guarantee, standby letter of credit, trading letter of credit, discount
      business, credits, acceptance bill, accounts receivable/payable financing
      and/or import/export financing (subject to the Article 4 of financing
      agreement upon specific situation). The maximum of total financing amount
      for all financing method is accordance with the amount in the Article 2 of
      the financing agreement(the maximum of financing).

              
	 	 

      

    

    
      	
              2.2

            	
              For
      the purpose of the agreement, ancillary files mean the following files
      signed and conformed by the customers (as the case may
  be):

            

    

    

    In
reference to the loan, it shall mean (a) the notice of drawing; and (b) notice
of conforming(if any).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    In
reference to the bank guarantee or standby letter of credit, it shall mean the
application and agreement for standby letter of credit/or letter of
guaranty.

    

    In
reference to the trading letter of credit, it shall mean (a) application for the
documentary credit, and (b) agreement for irrevocable standby letter of
credit.

    

    In
reference to the discount business, it shall mean (a) discount business
contract; and (b) any related ancillary files may be signed by the
customers.

    

    In
reference to the credits, it shall mean (a) credit agreement; and (b) any
related files may be signed by the customers.

    

    In
reference to the acceptance bill, it shall mean acceptance bill agreement; and
(b) any related files may be signed by the customers.

    

    In
reference to the receivable/payable financing, it shall mean (a) application
letter; and (b) any related files may be signed by the customers.

    

    In
reference to the import/export financing, it shall mean (a) application letter;
and (b) any related files may be signed by the customers.

    

    
      
        	
                3

              	
                prerequisite
      conditions

              
	 	 

      

    

    
      	
              3.1

            	
              Unless
      otherwise specified in the agreement or its ancillary files, any and each
      use of the financing shall meet general prerequisite conditions and
      satisfy the loan bank.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        	
                4

              	
                Conditions
      of drawing and loans

              
	 	 

      

    

    
      
        	
                4.1

              	
                For
      each loan, the customers shall provide the loan bank with the notice of
      drawing in no less than 2 business days before the expected date for the
      drawing . The customers shall confirm in each notice of drawing: (a)
      intended date of drawing; (b) intended amount of drawing; and (c) intended
      payment date for repaying the drawing. Once the loan bank receives the
      notice of drawing, the customers shall not cancel the expected money
      drawing; and, if the customers cancel the drawing after the notice is
      given, the customers shall be responsible for  all the cost,
      fees and/or loss caused to the loan bank.

              
	 	 

      

    

    
      
        	
                4.2

              	
                For
      each loan, the loan bank shall provide a conforming notice (called “the
      confirming notice”). The conforming notice shall specify the necessary
      details that may be chose by the loan bank. Unless there is any obvious
      error, the conforming notice (or, if there is no such conforming notice),
      the internal records of the loan bank [either in written or in electronic
      version]) shall be the conclusive evidence in the aspect of supplying
      loans to the customers.

              
	 	 

      

    

    
      
        	
                5

              	
                Repayment
      and the interest of the loans

              
	 	 

      

    

    
      
        
          	
                  5.1 

                	
                  Subject
      to the term 5.2, all the due principle, accrual interest and other
      payable, which are specified on the notice of drawing, should be fully
      repaid on the due date. If the due date is not on a business date, the due
      date shall be postponed to the first business day after this due date (the
      interest shall be adjusted accordingly), if the business day belongs to
      another calendar month, the aforementioned amount must be repaid on the
      business day before the due date. The amount which is  repaid
      under this term may be borrowed again in accordance with the terms and
      conditions of this agreement.  

                

        

      

    

    
       

      
        	
                5.2

              	
                By
      providing the loan bank with a new notice of drawing in no less than 2
      business days before the due date, the customers may ask the loan bank to
      extend all or parts of the principle amount of the due loan. If the loan
      bank agrees to extend the loan, the customers shall be deemed having
      repaid this loan (or a part of the loan, as the case may be) on the due
      date and in the meantime having been granted a new loan upon the terms of
      the agreement. For avoiding questions, the customers shall repay the
      accrued interests and other payables under the previous
    loan.

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        	
                6.

              	
                Early repayment of loans, cash
      reimbursement and cancellation of letter of credit/ letter of
      guarantee

              
	 	 

      

    

    
      
        
          	
                  6.1

                	
                  Upon
      the agreement by the loan bank in written and in compliance with the
      related regulations and rules of the Foreign Exchange Control Bureau (if
      applies), the customers may pay off the loan with accrued interests early.
      The prerequisite for an early pay back of the loan is that the customers
      have paid in full to the loan bank all the costs and losses arose from
      such early repayment. No other early repayment is
  allowed.

                
	 	 

        

      

    

    
      	
              
                6.2

              

            	
              
                Whether
      or not a trading letter of credit and/or a standby letter of credit (
      together called letter of credit) and/or bank guarantee are due, whether
      or not the loan bank has been requested to make payment under the letter
      of credit and/or the bank guarantee, the loan bank may request the
      customers to provide cash reimbursement for all or part of loans under the
      issued letter of credit and/or bank guaranty. The customers shall provide
      reimbursement in cash within 3 business days after receiving the
      request.

              

            
	 	 

    

    
      	
              
                6.3

              

            	
              
                Notwithstanding
      the provisions in the 6.2 term, the obligations and duties of customers
      shall not be exempted unless the loan bank notifies the customer that the
      obligations and duties of customers under the agreement or any attachment
      are exempted by a written notice. Notwithstanding the aforementioned
      notice, in case the loan bank is responsible for the provisions of letter
      of credit/letter of guarantee, the reimbursement of the term 13 shall be
      still effective. The decision made by the loan bank on whether or not to
      exempt the obligations under the letter of credit/letter of guarantee
      shall be binding on the customers.

              

            
	 	 

    

    
      
        	
                7.

              	
                Taxation

              
	 	 

      

    

    
      
        	
                7.1

              	
                Unless
      the law requests the customers to withhold any tax from the payment, the
      customers shall not pay the tax and the tax shall be deemed as being
      cleared, and shall not withhold any tax and any amount shall not be
      deducted. If the customers have to withhold tax on the accounts payable or
      payments, or other tax related amount, or other withholdings, the
      customers shall pay the loan bank additional amount to ensure that the net
      amount received by the loan bank equals to amount  as if taxes
      have not been withheld or and the other amounts have not been paid. The
      customers shall pay tax on time and shall pay the taxes to be withheld
      from paid or should be paid amounts under the agreement in accordance with
      the law. Within 15 days, it shall provide the loan bank with documentation
      (including all related tax return forms) which will satisfy the loan bank
      and can prove that the customers have made payment to relevant
      authority.

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        
          	
                  8.

                	
                  Statement

                
	 	 

        

      

    

    
      	
              
                8.1

              

            	
              
                The
      customers’ representations and warranties: the corporation is founded by
      Law of People’s Republic of China, and shall have the right of signing
      this agreement and any attachment, and take actions to make this agreement
      and the attachments legal, effective, binding and
      enforceable.

              

            
	 	 

    

    
      	
              
                8.2

              

            	
              
                Representations
      and warranties made by the customers under this agreement shall be deemed
      as being made repeatedly on the date of each loan, letter of credit/
      letter of guarantee, accounts receivable/payable financing or
      import/export financing.

              

            
	 	 

    

    
      	
              
                9.

              

            	
              
                Promise

              

            
	 	 

    

    
      	
              
                9.1

              

            	
              
                The
      customers shall apply, receive and comply with all the legal ratification,
      authorization, approval, registration, license and agreement, and remain
      in full force and effect, to make sure to sign this agreement and other
      attachments legally and to fulfill the duties. If the loan bank requires,
      the customers shall provide the related evidence right
      away.

              

            
	 	 

    

    
      	
              
                9.2

              

            	
              
                The
      customers shall notify the loan bank any event which may affect the
      ability to fulfill their duties.

              

            
	 	 

    

    
      	
              
                9.3

              

            	
              
                The
      financing under this agreement only satisfy the capital requirement for
      general operation or other agreed purposes. The customers shall not use
      the financing under this agreement in investment on stocks or other
      purposes than core business of customers. The loan bank shall have no
      responsibility to supervise or examine the usage of the financing under
      this agreement.

              

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        	
                10.

              	
                Special
      terms for foreign guaranty (when applicable)

              
	 	 

      

    

    
      	
              
                10.1
      

              

            	
              
                The
      customers shall obey the rules issued by Foreign Exchange Control Bureau
      from time to time with regards of financing under overseas related
      guarantee. The customers shall promise hereby: within the validity period
      of the financing agreement, (1) medium and long term foreign debt amount,
      (2) short term foreign debt balance and (3) the total amount of the
      performance guarantee (hereinafter referred to as balance of liabilities)
      of its foreign entity and person (calculate according to the real balance
      of external liabilities) shall not exceed the difference between it total
      investment and registration capital (hereinafter referred to as the gap of
      investment). The customers shall register the foreign liabilities in the
      Foreign Exchange Control Bureau after guarantee the performance in the
      foreign country.

              

            
	 	 

    

    
      	
              
                10.2

              

            	
              
                For
      the aforementioned purposes, the customers promise: in the valid period of
      the financing agreement, the customers shall or on demand of the loan bank
      from time to time provide the loan bank with the related files and/or
      information on the balance of liabilities and the difference between the
      investment and registered capital; and the aforementioned file and/or
      information shall be true, accurate and complete.

              

            
	 	 

    

    
      
        	
                11.

              	
                Fees
      and expenses

              
	 	 

      

    

    
      	
              
                11.1

              

            	
              
                Any
      fees and expenses arising from negotiation, preparing, signing, protecting
      or enforcing by the loan bank, or any fees or expenses from completion of
      this transaction agreement or any ancillary document shall be compensated
      by the customer, once the loan bank makes such request. The customer shall
      pay all stamp tax and other taxes that related to this agreement or any
      ancillary document.

              

            
	 	 

    

    
      
        	
                12.

              	
                Penalty
      rate

              
	 	 

      

    

    Any loan,
guarantee of letter/ credit, receivable account/payable account financing and
import/export financing, which should be paid on its due date on time.
Otherwise, the customers shall pay the penalty rate, and the penalty rate shall
be calculated from its due date to its actual payment day. The penalty rate is
defined in term 9 under Financing Agreement. Any
penalty rate shall be compounded monthly

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        	
                13.

              	
                Compensation

              
	 	 

      

    

    
      	
              
                13.1

              

            	
              
                The
      customers shall compensate the loan bank all of losses, amount,
      responsibility (including environmental liabilities), fees (including any
      attorney fees and other legal fees arising from the loan bank taking any
      enforcement or claim actions against the customer), charges and expenses
      arising from performing this agreement or transaction under this
      agreement, but damages caused by loan bank’s major negligence or intended
      misconducts are excluded.

              

            
	 	 

    

    
      	
              
                13.2

              

            	
              
                The
      payment currency under this financing agreement should be consistent with
      the currency specified in Article 3 of Financing
      Agreement.  If it is resulted from judgment, arbitration,
      liquidation of guarantor or others that the currency received by loan bank
      is not the currency for financing (financing currency) provide by loan
      bank, the customer’s obligation to this agreement shall not be released
      until the loan bank use the received money to buy sufficient amount of
      financing currency through normal bank procedure. If the amount of the
      financing currency bought by loan bank is less than the payable amount
      after it deducts exchange cost under this agreement, the short difference
      shall be compensated by customer, this compensation obligation is
      independent of customer’s other obligations under this agreement, and it
      shall be a supplement to other obligations.

              

            
	 	 

    

    
      	
              
                13.3

              

            	
              
                Both
      parties agree that, under any circumstance, neither party shall take any
      responsibilities for other party’s indirect or secondary losses or damages
      arising from this agreement

              

            
	 	 

    

    
      
        	
                14.

              	
                Payment
      and notice

              
	 	 

      

    

    
      	
              
                14.1

              

            	
              
                Any
      payment under this agreement and its ancilliary files shall be paid by
      customer according to the time, amount, currency and account specified by
      loan bank, and shall be paid with the value on the due date on time. The
      either party signing the agreement shall send its notice to its
      counterparty’s address as set in this Financing Agreement,
      and the party should notify its address in a written form to its
      counterparty.

              

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        	
                15.

              	
                Counteraction—Offsets

              
	 	 

      

    

    
      	
              
                15.1

              

            	
              
                The
      customers agree that, besides loan bank’s rights according to laws, the
      loan bank also has the right to combine or consolidate all of customer’s
      accounts with its debt to the loan bank, or counteract or transfer any/
      several credit balance of any/several account of the customer to repay any
      of customer’s debt to the loan bank under this agreement without notifying
      it to the customers, no matter this debt is real or contingent, prime or
      secondary, is joint or severe, due or undue, and in different nature or in
      different currency. In addition, if any obligation of the customer to the
      loan bank is contingent or anticipative, the loan bank has the right to
      suspend paying any money to customer until the contingency
      or  anticipative incident takes
  place.

              

            

    

    

    
      	
              
                16.

              

            	
              
                Financing
      termination

              

            
	 	 

    

    
      	
              
                16.1

              

            	
              
                The
      customer confirms that the nature of financing under this agreement is
      short-time, and the bank has the right to audit the financing every
      year.

              

            
	 	 

    

    
      	
              
                16.2

              

            	
              
                Although
      with the regulation of term 16.1 above, the loan bank has the right to
      cancel or terminate the financing, or accelerate repayment of any or all
      unpaid loan and require customer to pay it promptly, or modify any term of
      this agreement, without reasons or notifying it to customer in
      advance.

              

            
	 	 

    

    
      
        	
                17.

              	
                Transfer

              
	 	 

      

    

    
      	
              
                17.1

              

            	
              
                The
      customer shall not transfer, divert, renew or dispose its right/obligation
      or other benefits relating to its right or obligation under this
      agreement. The loan bank may transfer its right/obligation under this
      agreement/any ancillary document to other entity/person any time by
      sending transfer notice to the customer, and the customer agrees that the
      notice of transfer can be in any written form that loan bank may use, and
      needs no customer’s permit or approval. Although the transfer occurs, this
      agreement/any ancillary document will continuously take effectiveness for
      customer and customer agrees and accepts the binding of this contract/any
      ancillary document. The loan bank may provide the copy of this agreement
      and disclose any information under this agreement/ancillary documents or
      any information from this agreement/ancillary document to the
      entity/person whoever is intended or has already reached an agreement with
      the loan for transfer or participation or other agreements related to this
      agreement/ancillary
documents.

              

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                18.

              	
                Information
      disclosure

              
	 	 

      

    

    
      	
              
                18.1

              

            	
              
                Under
      confidential use purpose by the loan bank(including but not limited to
      data processing, statistic, risk analysis and credit monitoring and
      tracing), the customer agrees the loan bank to disclose relevant
      information( including but not limited to any information comes from loan
      behavior credit evaluation and assessment purpose) about the customer or
      the financing to loan bank’s branch, subsidiary company, parent company,
      related organization, representative office, agent or any third party
      (hereinafter referred to as “relevant party”) chose by the loan bank. The
      customer shall urge the guarantor to agree and comply with the above
      information disclosing clause. The loan bank and its related parties shall
      comply with the requirements of any applicable laws, regulations or rules,
      court, supervisory authority or judicial procedure to disclose
      information.

              

            
	 	 

    

    
      
        	
                19.

              	
                Applicable
      laws and judicial jurisdiction

              
	 	 

      

    

    
      	
              
                19.1

              

            	
              
                This
      agreement is applicable to Chinese law and be explained by it. The Chinese
      court where the loan bank locates has the with non-exclusive jurisdiction
      to any dispute arising from this agreement or related to this
      agreement.

              

            
	 	 

    

    
      
        	
                20.

              	
                Telephone
      or fax indication

              
	 	 

      

    

    
      Unless
agreed by
both parties, the loan bank has no obligation to perform or accept any
instruction from customer by oral or fax. Under any circumstances, the loan bank
will take no responsibility in any of customer losses resulted from bank’s
misunderstanding due to ambiguous, difficult identified or unclear
instruction.

    

    
      
        
          	 	 
	
                  21.

                	
                  Independence
      of clause

                
	 	 

        

      

    

    
      	
              
                21.1

              

            	
              
                Any
      invalid, illegal or unenforceable clause under this agreement or ancillary
      documents shall not influence other valid, legal and enforceable clause
      under this agreement or ancillary
  documents.

              

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                22.

              	
                Non-waiver,
      modification

              
	 	 

      

    

    
      	
              
                22.1

              

            	
              
                The
      loan bank’s failure or defer in exercise its right under this agreement or
      any ancillary documents shall not affect its right and shall not be taken
      as its waiver. Any exemption for one breach behavior/event under this
      agreement or ancillary documents shall not be taken as the exemption for
      other breach behavior/event. Under any circumstances, any clause
      modification or exemption of this agreement or any ancillary documents
      shall come into force only after getting loan bank’s written
      signature.

              

            
	 	 

    

    
      
        	
                23.

              	
                Language

              
	 	 

      

    

    
      	
              
                23.1

              

            	
              
                This
      agreement shall be signed both in Chinese and English with identical
      effects.  If there is any conflict in language, the Chinese
      version shall prevail.

              

            
	 	 

    

    
      Attachment

       

    

    General
precondition

     

    According
to the term 3 of the general terms and conditions of Financing Agreement, every
time before using the financing money, all of the following conditions should be
met and be satisfied by loan bank,

     

    1. The
loan bank has received the following documents from customer,

     

    (a) Copy
of Articles of Incorporations and any of its amendment;

     

    (b) Copy
of valid and legal business license

     

    (c) The
board of director’s resolution, including agreeing and authorizing the customer
to make financing and sign this agreement or any ancillary
documents

     

    (d)
Customer’s authorization to one or several personnel to sign this agreement or
any ancillary documents, and the signature sample of the authorized
person(s).

     

    2. Any
and all subsidiary documents are signed in the forms and contents that satisfy
loan bank, and have been received by loan bank.

     

    3. The
intended date of providing a loan, or issue of letter of credit/letter of
guarantee is the loan bank’s business day

     

    3. Other
documents to be required by loan bank in any time.Exhibit
10.06

     

    SANDERS
MORRIS HARRIS GROUP INC.

    2009 MANAGEMENT
INCENTIVE PROGRAM

     

    Section 1.  Overview.  The
2009 Management Incentive Program (the “Program”)
may pay cash bonuses (each, a “Bonus
Award”) to select senior officers of Sanders Morris Harris Group Inc. and
its subsidiaries (the “Company”).
Bonus Awards are paid annually.  The amount of a Bonus Award is based
upon an employee’s Bonus Target, performance during the Performance Year, and
the Incentive Pool made available for payments under the Program for the
applicable Performance Year.

     

    Section 2.  Purpose.  The
Program is designed to provide an annual incentive compensation opportunity for
key senior officers of the Company for achieving critical financial goals of the
Company.

     

    Section 3.  Performance
Year.  The Program is effective for the period beginning
January 1, 2009, and ending December 31, 2009 (the “Performance
Year”).

     

    Section 4.  Eligibility.  Those
employees who are determined to be eligible to receive a Bonus Award are called
“Participants.”

     

    (a)            Eligible
Participants.  Except as specifically provided otherwise in
this Program, a person must be employed by the Company, on active status on the
Company payroll, on salary continuation, or on a formal leave of absence on or
before June 30 (unless waived by the Chairman (as hereinafter defined)) and
on the last day of the Performance Year (except as provided in cases of death or
disability or termination without Cause as defined in Sections 6, 7, or 8
below) to be eligible for participation in the Program.  A Participant
may work either full-time or part-time as an employee, as long as other
eligibility criteria are met.

     

    (b)            Determination of
Participants.  Prior to the beginning of the Performance Year,
or as soon as practicable thereafter, the Chairman of the Board of Directors
(the “Chairman”)
shall recommend to the Compensation Committee and the Compensation Committee
shall determine which senior officers of the Company (“Senior
Officers”)
are Participants.  Additional Participants may be included during the
Performance Year and, as provided herein, an employee’s participation in the
Program may terminate.  The Participants currently identified are set
forth on Exhibit A attached hereto.

     

    Section 5.  Bonus
Award.  There is no minimum Bonus Award or guaranteed payment,
however, there may be a minimum Bonus Award or guaranteed payment provided to
certain designated employees based on a pre-existing employment agreement or
understanding.  A Participant’s Bonus Award is calculated with
reference to such Participant’s Bonus Target (as defined below), that
Participant’s performance for the Performance Year, and the Incentive Pool (as
defined below) for the Performance Year.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a)          Bonus
Targets.  

     

    (1)           Each
Participant has a target (the “Bonus
Target”) stated as a percentage of the Incentive Pool.

     

    (2)           The
Compensation Committee establishes individual Bonus Targets for
Participants.  The Compensation Committee may provide that a portion
of the Incentive Pool will be distributed to specific Participants based on a
formula established at the beginning of the Performance Year and that the
balance of the Incentive Pool may be awarded in the Compensation Committee’s
discretion.  Set forth on Exhibit A are the Bonus Targets and the
portion of the Incentive Pool established and identified for distribution based
on the formula set forth on Exhibit A.

     

    (b)            Determination of the Incentive Pool
Amount.

     

    (1)           At
the end of the Performance Year and closing of the Company’s fiscal year
financials, the Compensation Committee in its sole discretion may identify an
amount as the Incentive Pool.  The Compensation Committee will take
into consideration various metrics when determining whether or not to identify
an amount available for payment of Bonus Awards under the Program (referred to
as the “Incentive
Pool”).  The performance metric(s) may be based on, among other
things, achievement of Company financial and business plans and achievement of
certain goals vs. the Company’s competitors. In exercising its discretion in
determining the size of the Incentive Pool, if any, the Committee will consider
all circumstances existing at the end of the Performance Year and closing of the
Company’s fiscal year financials, that it deems relevant, including, but not
limited to, the achievement of certain fiscal 2009 operating profits and goals,
market conditions, special, non-recurring circumstances, comparative
performance, balance sheet strength, forecasts, and any other relevant
matters.

     

    (2)           As
a general rule the Incentive Pool will be calculated as a percentage of the net
income of the Company before provision for income taxes for 2009 and will vary
depending on the ratio of net income before provision for income taxes to the
average total stockholders’ equity (i.e., net income before provision for income
taxes divided by average total stockholders’ equity, the return on equity or
“ROE”);
provided that net income may exclude extraordinary items (including, but not
limited to, goodwill impairment charges, losses from discontinued operations,
and other extraordinary charges) as determined by the Compensation Committee and
average total stockholders’ equity will be the average of total stockholders’
equity at December 31, 2008 and December 31, 2009.  If ROE is less
than 5.0%, the Incentive Pool will be purely in the discretion of the
Compensation Committee.  If ROE exceeds 12.5%, the Incentive Pool
shall be limited to 15.0% of net income before provision for income
taxes.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	 
      	 	
                                  Incentive Pool as a

                                	 
	
                                  ROE

                                	 	
                                  Percent of Pretax Net Income1

                                	 
	
                                  12.5% or greater

                                	 	 	
                                  15.0%

                                	 
	
                                  10.0%,
      but less than 12.5%

                                	 	 	
                                  12.5%

                                	 
	
                                  7.5%,
      but less than 10.0%

                                	 	 	
                                  10.0%

                                	 
	
                                  5.0%,
      but less than 10.0%

                                	 	 	
                                  7.5%

                                	 
	
                                  less
      than 5.0%

                                	 	
                                  Discretionary

                                	 

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    (c)           Determination
of Bonus Award Amount.

     

    (1)            A
Bonus Award is calculated with reference to: (i) the amount of the
Incentive Pool multiplied by a Participant’s Bonus Target (this is called the
“Target
Award”), (ii) a Participant’s performance for the Performance Year,
and (iii) the Incentive Pool made available for Bonus Awards under the
Program for the Performance Year.

     

    (2)            The
amount of a Bonus Award to a Participant who is a Senior Officer is determined
by the Compensation Committee.  A Participant’s Bonus Award can be
either greater than or less than (including zero) a Participant’s Target
Award.  The Compensation Committee, in its sole discretion, may
increase or decrease individual awards from their target levels, based on
individual performance and available Incentive Pool.

     

    (3)            A
Participant’s Bonus Award is linked to an assessment of a Participant’s total
job performance for the Performance Year.  Factors that may be
considered include but are not limited to, what a Participant does to advance
the Company’s success and how a Participant does it, especially leadership and
the skill with which a Participant has performed the primary duties and
responsibilities of the Participant’s job.  The Compensation Committee
will consult with the Chairman in establishing the Bonus Target and Target Award
for the Chairman and each of the other Participant’s in the
Program.

     

    (4)           There
is neither a minimum nor maximum amount of a Bonus Award that may be paid to a
Participant for the Performance Year.  At the Compensation Committee’s
discretion, a Bonus Award amount may be prorated for those Participants who are
eligible to participate in the Program for less than the full Performance
Year.

     

    (d)           Payment of
Awards.  To be eligible to receive a Bonus Award, a Participant
must be an employee in good standing and, on active status, receiving salary
continuation, or be on a formal leave of absence at the time the Bonus Awards
are distributed.  As soon as administratively practicable following
the determination of a Participant’s Bonus Award, but not later than March 15
after the end of the Performance Year to which such Bonus Award relates, such
Bonus Award, less any legally required withholding, shall be paid to a
Participant or, in the event of a Participant’s death, in accordance with
Company policy as stated in Section 6 hereof.  Each Participant’s
Bonus Award shall be payable by the Company in cash by March 15th after
the end of the Performance Year to which such Bonus Award relates, generally at
such time as bonuses are paid by SMHG for the relevant fiscal year, but not
before the Compensation Committee certifies in writing that there is an
Incentive Pool, and (ii) shall be paid in U.S. dollars.

     

    
      
        

      

    

    1 The
Incentive Pool may not exceed the same percentage of Cash Flow from Operations
for the Performance Year.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    No
Participant shall have any right to payment of any amounts under this Program
unless and until the Compensation Committee determines the amount of such
Participant’s Bonus Award, that such Bonus Award shall be paid, and the method
and timing of its payment.

     

    Section 6.  Death
of a Participant.

     

    (a)            Beneficiary.  Each
Participant shall have the right to name a beneficiary or beneficiaries to
receive any amount payable hereunder in the event of the Participant’s
death.  If the Participant fails to designate a beneficiary or if all
such beneficiaries predecease the Participant, the Participant’s beneficiary
shall be his or her surviving spouse, but if none, then his or her
estate.  To be effective, a beneficiary designation must be made in
writing and filed with the Company.  A Participant may revoke an
existing beneficiary designation by filing another written beneficiary
designation with the Company.  The latest beneficiary designation
received by the Company shall be controlling.

     

    (b)            Death during Performance
Year.  In case of a Participant’s death during the Performance
Year, the Company may pay a pro rata portion of the Bonus Award to which a
Participant would have been entitled for the Performance Year.  Such
pro rata portion shall be equal to (i) the ratio which a Participant’s
completed calendar months of employment during the Performance Year bears to 12
multiplied by (ii) the amount to which the Company determines a Participant
would have been entitled, as determined in Section 5 herein, had a
Participant continued in active status through the end of the Performance
Year.

     

    (c)            Death after Performance
Year.  In case of the death of a Participant after the end of
the Performance Year, but before the delivery of a Bonus Award to which he or
she may be entitled, such Bonus Award shall be delivered to a Participant’s
beneficiary.

     

    Section 7.  Disability
of Participant.  In the event of a Participant’s Disability
during the Performance Year, a Participant shall become eligible for a portion
of an Award, based on a pro rata portion of the Performance Year represented by
the time prior to the absence from work caused by the
Disability.  Disability is the permanent and total disability of a
person within the meaning of Section 22(e)(3) of the Internal Revenue Code
of 1986, as amended.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    Section 8.  Termination
of Employment.  Upon an employee’s termination during the
Performance Year for any reason other than for Cause or those specified in
Sections 6 or 7 hereof, such former employee shall no longer be a
Participant and shall not have any right to a Bonus Award under the
Program.  “Cause”
means the termination of the Participant’s employment by the Company by reason
of (a) the conviction of the Participant by a court of competent jurisdiction as
to which no further appeal can be taken of a crime involving moral turpitude or
a felony; (b) the proven commission by the Participant of an act of fraud upon
the Company; (c) the willful and proven misappropriation of any funds or
property of the Company by the Participant; (d) the willful, continued and
unreasonable failure by the Participant to perform the material duties assigned
to him; (e) the knowing engagement by the Participant in any direct, material
conflict of interest with the Company without compliance with the Company’s
conflict of interest policy, if any, then in effect; or (f) the knowing
engagement by the Participant, without the written approval of the Board, in any
activity which competes with the business of the Company or which would result
in a material injury to the business, reputation or goodwill of the
Company.

    

    Section 9.             Election
to Defer Benefits

    

    Each
Participant may make an election (a “Deferral
Election”) to defer all or any part of the Participant’s Bonus Award to
be received by such Participant (“Elected Deferred
Benefits”) in accordance with this Section. Elected Deferred Benefits
shall be credited to the Account for each Participant at a time and in a manner
reasonably determined by the Chief Financial Officer of the
Company.

    

    (a)           Timing of Deferral
Elections. Each
Participant may make a Deferral Election with respect to a Bonus Award by filing
a written election with the Company on or before October 1, 2009.

    

    (b)           Payment Form Election. A
Participant electing to defer Elected Deferred Benefits may make an irrevocable
election to have those Elected Deferred Benefits paid (within 30 days after, or
beginning within 30 days after, a Specified Payment Date (as defined below).
Notwithstanding any such election, if a Specified Payment Date is later than the
Participant’s General Deferral Payment Date (as hereinafter defined), such
Elected Deferred Benefits shall be paid or begin to be paid in accordance with
this paragraph. A “Specified Payment
Date” means a date specified by the Participant at the time he or she
elects to defer the Elected Deferred Benefits in question, which date must be
March 31, June 30, September 30, or December 31 of a
specified year in the future, but no earlier than the March 31st of the
calendar year following the year in which the deferred amounts would have been
paid (if they had not been deferred).

    

    (c)           Payment Date. A Participant’s
“Payment
Date” shall mean either the Specified Payment Date or the General
Deferral Payment Date, as applicable:

     

    (i)           If
a Specified Payment Date applies to a portion of a Participant’s Account, such
portion of the Participant’s Account shall be paid, or begin to be paid, within
30 days after such Specified Payment Date unless the Participant’s General
Deferral Payment Date occurs prior to the Specified Payment Date.

     

    (ii)           The
balance in a Participant’s Account, other than the portion, if any, of the
Participant’s Account for which payment has previously commenced pursuant to
paragraph 9(c)(i), shall be paid, or begin to be paid, in April of the calendar
year following the year of the Participant’s Termination or death, whichever
occurs first (the “General Deferral
Payment Date”).

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (d)           Forms
of Payment

     

    (i)           Distributions Prior to
Death. Except as provided in (ii) below, a Participant’s Account
shall automatically be paid in cash in a single lump sum promptly following the
applicable Payment Date(s), unless and to the extent a valid written installment
distribution election has been filed in accordance with paragraph 9(e).
Installment payments shall be made annually in substantially equal installments
over the installment period specified in the installment distribution election,
beginning at or within 30 days after the applicable Payment Date. Each
installment payment shall be computed by dividing the balance of the portion of
the Account that is to be paid in installments by the number of payments
remaining in the installment period.

     

    (ii)           Acceleration of
Distributions Upon Death. During the first month of the first calendar
quarter following the death of a current or former Participant, the entire
unpaid balance of his Account shall automatically be paid in cash in a single
lump sum notwithstanding any valid written installment distribution election
then in effect.

    

    (e)           Installment Payments. A
Participant may make a separate installment distribution election for each
calendar year’s Elected Deferred Benefit (if any). An installment distribution
election may apply to all or any portion of the Elected Deferred Benefit (if
any) deferred for such calendar year and shall specify the period of years (up
to a maximum of 15 years) over which installment payments are to be made.
Installment distribution elections with respect to a calendar year’s Elected
Deferred Benefit deferred must be made at the time the Participant elects to
defer the Elected Deferred Benefit for the calendar year in question or, if no
Elected Deferred Benefit is elected for that calendar year, not later than the
latest time at which such an election would be permitted. Except as provided in
this paragraph, an installment distribution election is irrevocable once made,
and payments of any Elected Deferred Benefit for the applicable calendar year
will be made in accordance with such election notwithstanding the subsequent
Termination of the Participant.

    

    (f)           Vesting. Each Participant
shall be fully vested at all times in the balance of his or her
Account.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Section
10.           Miscellaneous

     

    (a)           Administration of the
Program.  The Compensation Committee has the sole discretion
to: (i) adopt such rules, regulations, agreements, and instruments as it
deems necessary to administer the Program; (ii) interpret the terms of the
Program; (iii) determine an employee’s eligibility under the Program;
(iv) determine whether a Participant is to receive a Bonus Award under the
Program; (v) determine the amount of any Bonus Award to a Participant;
(vi) determine when a Bonus Award is to be paid to a Participant;
(vii) amend, suspend, or terminate the Program, without notice; and
(viii) take any and all other actions it deems necessary or advisable for
the proper administration of the Program.  The Chief Financial Officer
of the Company shall be responsible for maintaining all necessary support
documentation regarding performance and bonus calculations under the Program.
The Compensation Committee delegates to the Chairman and the Chief Senior
Officer of the Company the authority to administer the Program.

     

    (b)            Notification.  A
copy of this Program shall be provided to each Participant upon
request.  A Participant shall have no right to or interest in an Award
unless and until a Participant’s Award has been determined and paid to a
Participant.

     

    (c)            Nature of the
Program.  Whether to grant any Bonus Awards under this Program,
and in what amounts, are under the Compensation Committee
discretion.  Participation in this Program is not intended, nor should
it be interpreted, to create any entitlement to participate in this or any
future incentive plans or to receive the same or similar incentive payments that
may be received under this Program.  No Participant should make any
decision based on any hope or expectation of receiving any incentive under this
Program.  Nothing contained in nor will any action under the Program
confer upon any individual any right to continue in the employment of the
Company and does not constitute any contract or agreement of employment or
interfere in any way with the right of the Company to terminate any individual’s
employment.

     

    (d)            Termination and
Notification.  The Company may
at any time modify, terminate, or from time to time, suspend and, if suspended,
may reinstate the provisions of this Program.  Any termination of this
Program will be done in a manner that the Committee determines complies with
Section 409A of the Internal Revenue Code to the extent
applicable.

     

    (e)            Withholding Tax.  In connection
with any payments to a Participant or other event under this Program that gives
rise to a federal, state, local or other tax withholding obligation relating to
this Program (including, without limitation, FICA tax), (i) the Company may
deduct or withhold (or cause to be deducted or withheld) from any payment or
distribution to such Participant whether or not pursuant to this Program or
(ii) the Committee shall be entitled to require that such Participant remit
cash (through payroll deduction or otherwise), in each case in an amount
sufficient in the opinion of the Company to satisfy such withholding
obligation.

     

    (f)            Award Limitations.  Bonus Awards made
under this Program are not considered for the purpose of calculating any extra
benefits; any termination, severance, redundancy, or end-of-service premium
payments; other bonuses or long-service awards; overtime premiums; pension or
retirement benefits; or
future base pay or any other payment to be made by the Company to a Participant
or former Participant.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (g)            All Rights Reserved.  The Company
expressly reserves all rights and control over the Program.  Although
the Company expects that the Program will continue, the Company may change,
amend, or terminate any provisions of the Program, or the Program itself, at any
time, in its sole discretion.

     

    (h)            Unfunded Program.  Nothing
contained in this Program will be deemed to require the Company to deposit,
invest or set aside amounts for the payment of any Bonus
Awards.  Participation in the Program does not give a Participant any
ownership, security, or other rights in any assets of the Company.

     

    (i)            Applicable Law.  The Program will
be governed by and construed in accordance with the laws of the State of Texas,
without regard to the principles of conflicts of laws.

     

    (j)            Validity.  If any of the
provisions of this Program is finally held to be invalid, illegal or
unenforceable (whether in whole or in part), such provision shall be deemed
modified to the extent, but only to the extent, of such invalidity, illegality
or unenforceability and the remaining provisions shall not be affected
thereby.

     

    (k)           Compliance with Code Section
409A.  The compensation payable by the Company to or with
respect to a Participant pursuant to this Program is intended to be compensation
that is not subject to the tax imposed by Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”),
and the Program shall be administered and construed to the fullest extent
possible to reflect and implement such intent.  Any provision of this
Program to the contrary notwithstanding, if a Participant is a specified
employee (within the meaning of Section 409A of the Code) on the date of his or
her separation from service (within the meaning of Section 409A of the Code)
with the group of employers that includes the Company and each other employer
that along with the Company is considered a single employer under Section 414(b)
or 414(c) of the Code, then any payment or benefit to be paid or provided to
such Participant pursuant to this Program that would be subject to the tax
imposed by Section 409A of the Code if paid or provided at the time otherwise
specified in this Program or pursuant to such Participant’s Bonus Award shall be
delayed and thereafter paid or provided on the first business day that is 6
months after the date of such Participant’s separation from service (or if
earlier, within 30 days after the date of such Participant’s death following his
or her separation from service) to the extent necessary for such payment or
benefit to avoid being subject to the tax imposed by Section 409A of the
Code.

     

    (l)           Nonassignability No rights of any
Participant (or of any beneficiary pursuant to this Section 10(l)) under
this Program may be sold, exchanged, transferred, assigned, pledged,
hypothecated, or otherwise disposed of (including through the use of any
cash-settled instrument), either voluntarily or involuntarily by operation of
law, other than by will or by the laws of descent and
distribution.  Any sale, exchange, transfer, assignment, pledge,
hypothecation or other disposition in violation of the provisions of this
Section 10(l) shall be void and shall not be recognized or given effect by
the Company.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (m)         Choice
of Forum.

     

    (1)           Jurisdiction.  The Company and
each Participant, as a condition to such Participant’s participation in this
Program, hereby irrevocably submit to the exclusive jurisdiction of any state or
federal court located in Houston, Texas over any suit, action or proceeding
arising out of or relating to or concerning this Plan.  The Company
and each Participant, as a condition to such Participant’s participation in this
Plan, acknowledge that the forum designated by this Section 10(m) has a
reasonable relation to this Program and to the relationship between such
Participant and the Company.  Notwithstanding the foregoing, nothing
herein shall preclude the Company from bringing any action or proceeding in any
other court for the purpose of enforcing the provisions of
Section 10(m).

     

    (2)           Acceptance of
Jurisdiction.  The agreement by
the Company and each Participant as to forum is independent of the law that may
be applied in the action, and the Company and each Participant, as a condition to such Participant’s
participation in this Program, (i) agree to such forum even if the forum
may under applicable law choose to apply non-forum law, (ii) hereby waive,
to the fullest extent permitted by applicable law, any objection which the
Company or such Participant now or hereafter may have to personal jurisdiction
or to the laying of venue of any such suit, action or proceeding in any court
referred to in Section 10(m)(l), (iii) undertake not to commence any
action arising out of or relating to or concerning this Program in any forum
other than the forum described in this Section 10(m) and (iv) agree
that, to the fullest extent permitted by applicable law, a final and
non-appealable judgment in any such suit, action or proceeding in any such court
shall be conclusive and binding upon the Company and each
Participant.

     

    (3)           Service of Process.  Each Participant,
as a condition to such Participant’s participation in this Program, hereby
irrevocably appoints the General Counsel of Sanders Morris Harris Group
Inc.  as such Participant’s agent for service of process in connection
with any action, suit or proceeding arising out of or relating to or concerning
this Program, who shall promptly advise such Participant of any such service of
process.

     

    (4)           Confidentiality.  Each Participant,
as a condition to such Participant’s participation in this Program, agrees to
keep confidential the existence of, and any information concerning, a dispute,
controversy or claim described in Section 10(m), except that a Participant
may disclose information concerning such dispute, controversy or claim to the
court that is considering such dispute, controversy or claim or to such
Participant’s legal counsel (provided that such counsel agrees not to disclose
any such information other than as necessary to the prosecution or defense of
the dispute, controversy or claim).

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (n)           Waiver of Jury Trial.  EACH PARTICIPANT
WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
ON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS PROGRAM.

     

     (o)           No Third Party
Beneficiaries.  This Program
shall not confer on any person other than the Company and any Participant any
rights or remedies hereunder.

     

    (p)           Headings.  The headings in
this Program are for the purpose of convenience only and are not intended to
define or limit the construction of the provisions hereof.

     

    (q)           Construction.  In the
construction of this Program, the singular shall include the plural, and vice
versa, in all cases where such meanings would be appropriate.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Exhibit
A

     

    1.          Senior
Officers Eligible for Bonus Pool

     

                
George L. Ball

                 Rick
Berry

                
Stephen Cordill

                
Ric Edelman

                
Bruce McMaken

     

    
      2.         
Identified
formula established for a portion of the bonus pool:

    

     

    50% of
the Incentive Pool will be distributed to Participants on a non-discretionary
basis, the balance of the Incentive Pool shall be allocated and distributed at
the discretion of the Compensation Committee

     

    
      
        
          
            
              
                
                  
                    	
                            George
      L. Ball

                          	 	 
      	
                            10%

                          	  
	
                            Rick
      Berry

                          	 	 	
                            10%

                          	  
	
                            Stephen
      Cordill

                          	 	 	
                            10%

                          	  
	
                            Ric
      Edelman

                          	 	 	
                            10%

                          	  
	
                            Bruce
      McMaken

                          	 	 	
                            10%

                          	 
  

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        11

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