Document:

Unassociated Document

    Exhibit 10.6

     

    Contract
No. Xi’an City Commercial Bank (Xincheng) Loan No. 【2009】24.

    

    Loan Contract

     

    Name:
Xi’an Kingtone Information Co., Ltd

    Account
Bank: Xi’an City Commercial Bank Xincheng Branch

    Signed
Date: 2009

     

    Xi’an
City Commercial Bank

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Borrower:
Xi’an Kingtone
Information Co., Ltd

    Lender:
Xi’an City Commercial
Bank Xincheng Branch

    Surety:
Xi’an Yuansheng
Industry Co., Ltd,

    

    This
Contract is made in line with the Contract Law of the People's Republic of China
and The General Provisions of Loans of the People's Bank of China to specify the
rights and obligations of parties involved.

    

    
      	
              Article 1

            	
              Type
      of the Loan: Short-term
      mortgage

            

    

    

    
      	
              Article
      2

            	
              Amount
      of the loan (RMB in words): twenty three million
      five hundred thousand RMB

            

    

    

    
      	
              Article
      3

            	
              Purpose
      of the loan: Repayment of the old
      loan, that is, to repay the loan from Xi’an City Commercial Bank
      (Xincheng), which was loaned in 2008 and with the contract No.
      39.

            

    

    

    
      	
              Article 4

            	
              Life
      of the loan: from September 28,
      2009 to September 27, 2010.

            

    

    

    
      	
              Article
      5

            	
              Interest
      rate of loan: The monthly interest rate under this Contract is 6.6375‰。The interest
      should be settled on the monthly
      basis. In case of national adjustment in interest rate, the
      interest shall be calculated as per the national stipulation on the
      interest rate as of the adjusting
day.

            

    

    

    
      	
              Article
      6

            	
              Source
      of Repayment Capital and Type of Repayment of
  Loan

            

    

    
      	
               
      

            	
              1.

            	
              Source
      of Repayment Capital

            

    

    
      	
               
      

            	
              1)

            	
                        
      operation
      income                             
      

            

    

    
      	
               
      

            	
              2)

            	
                                      
      None                                         
      

            

    

    
      	
               
      

            	
              3)

            	
              The
      entire assets

            

    

    
      	
               
      

            	
              4)

            	
              Other
      Property excluding from the above-mentioned capital
  source.

            

    

    
      	
               
      

            	
              2.

            	
              Type
      of Repayment of Loan

            

    

    

    The
Borrower shall repay the principal and interest once the loan is due. In case of
failure to pay the due amount by the borrower, the Lender shall be entitled to
collect the amount from the Account opened by the Borrower.

    

    
      	
              Article
      7

            	
              Guaranty
      Terms (Item 1 of this Article applies to the loan on guarantee; item 2 of
      this Article is applicable to the Mortgage Loan, Item 3 is applicable to
      Pledge Loan.)

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      1. The
surety invited by the Borrower to witness the borrower’s loan and subject to the
lender’s approval shall sign the guarantee contract with the lender (Xi’an City
Commercial Bank Xincheng branch No. 24). In case of failing to repay the
principle and interest, the surety shall assume the joint liability and pay the
principle and interest.

    

    

    
      2.  The
Borrower (or the third party) mortgaged the land use right of Xi’an Yuansheng
Industry Co., Ltd (refer to the mortgage list.). Upon lender’s inspection, the
mortgaged property can be as the guarantee. The mortgage contract is signed by
and between the mortgager and the lender with the contract No. 24. In case of
failing to pay the due principal and interest, the lender can deposit the
property.

    

    

    
      3.
The
borrower (or the third party) impawned no property.

    

    

    
      	
              Article
      8

            	
              The
      legal representative of the borrower, who assumes the joint liability
      shall pay the loan interest on time and render the repayment on
      time.

            

    

    

    
      	
              Article
      9

            	
              During
      the validation of contract, the borrower shall utilize the loan according
      to the agreed purpose stipulated in this contract, which shall be checked
      by the lender. The borrower shall provide the necessary information about
      loan utilization to the lender.

            

    

    

    
      	
              Article
      10

            	
              Alternation
      and Cancellation of the Contract

            

    

    
      
        	
              	
                1.

              	
                Any
      party herein shall not alter or cancel the contract unless other
      stipulations on General Terms of
Loan.

              

      

    

    

    
      
        	
              	
                2.

              	
                In
      case that one party requests to alter or cancel the contract, another
      party’s written consent shall be
obtained.

              

      

       

      
        	
              	
                3.

              	
                In
      case of alternation or cancellation, the principal or the interest payable
      shall be repaid in accordance with the contract
  herein.

              

      

    

    

    
      
        	
              	
                4.

              	
                The
      borrower or surety shall inform the change of legal representative’s name,
      address, or investment subject. Otherwise, the lender will send the
      corresponding documents to the former address and the borrower or surety’s
      breach herein can be
regarded.

              

      

    

    

    
      	
              Article 11

            	
              Liability
      for Breach of Contract

            

    

    
      
        	
              	
                1.

              	
                The
      borrower shall provide the complete loan certificate to the lender within
      thirty days (postponed if it is holiday) since the signing of the
      contract. In the meantime, the penalty will be calculated in accordance
      with the loan interest rate stipulated herein and overdue
      days.

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        	
                 
      

              	
                2.

              	
                Upon
      receiving the complete loan certificate sent by the borrower, the lender
      shall transfer the loan to the borrower’s account within thirty days
      (postponed if it is holiday) since the execution hereof. In case of the
      delayed transfer by the lender, the lender shall pay the penalty to the
      borrower on the basis of the overdue days and stipulated interest rate
      herein.

              
	 	 	 
	 	3.	
                In
      case the utilization of loan is not satisfied with the contract herein,
      which the lender has found, the lender has the right to claim partial or
      entire loan. In terms of the loan, which the borrower did not properly
      utilize, the lender shall calculate the fine in accordance with
      stipulations of the bank. In case any of the following situation arise,
      the lender can announce the termination of the contract herein prior to
      the expiration, claim partial or entire loan from the borrower and
      negotiate with other banks to clear off the
  loan:

              

      

    

    1) loan
fraud; 2) attempt to escape the lender’s inspection by transferring the fund,
which was the source the repayment hereunder; 3) failure to repay the loan due
to the economic disputes with the third party; 4) the borrower’s failure to
repay the principal or interest in the due period; 5) secretly withdraw,
transfer or fictitious capital; 6) other actions affecting the safety of loan.
The contract herein can be regarded as the written notice, which the borrower
was agreed to deduct the deposit under the borrower’s issuing bank.

    

    4. Prior
to the settlement of the principal and interest, the borrower shall issue the
written notice to the lender before such ownership change as undertaking, lease,
joint operation, merge, system reform, separation, trusteeship, cooperation with
foreign companies and reach the consensus on the repayment of the loan or
specify the transfer of liability. Upon the change of ownership, the lender has
the right to assess the asset and property change. Otherwise, the borrower will
be regarded as breach of contract herein and the lender can claim the
loan.

    

    5. The
borrower shall repay the principal and interest in accordance with the
stipulation herein. In case of failure to repay the principal and interest, the
lender can charge the compound interest in accordance with the corresponding
laws and regulations.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6. In
case the borrower intends to delay the repayment of the loan, the borrower shall
apply for the extension period ten days in advance of the expiration. In case of
failure to apply the extension period or the overdue extension period and the
borrower can not repay the loan in the due period, the lender has the right to
claim the loan and charge the penalty in accordance with the bank
stipulations.

    

    7. In
case of failure to repay the loan in the due period, the borrower shall assume
all legal expenses.

    

    8. In
case the borrower repays the loan in advance of the expiration of contract
herein, the lender has the right to charge the interest from the borrower in
accordance with the stipulated contract period.

    

    
      	
              Article
      12

            	
              Other
      Items

            

    

    None

    

    
      	
              Article
      13

            	
              Other
      items, which are not stipulated herein, shall be executed in accordance
      with national laws and regulations and correspond financial
      regulations.

            

    

    

    
      	
              Article
      14

            	
              Method
      to solve the disputes

            

    

    
      	
               
      

            	
              1.

            	
              The
      disputes arising during the execution of contract herein shall be solved
      through negotiation. Otherwise, the disputes shall be brought to Local
      People’s Court of Law of lender’s
jurisdiction.

            

    

    

    
      	
               
      

            	
              2.

            	
              In
      case of failure to repay the loan upon the expiration of
      loan,  the borrower and surety shall voluntarily accept the
      punishment in accordance with the forceful and effective notarial
      certificate

            

    

    

    
      	
              Article
      15

            	
              The
      application of loan, withdrawal installment, repayment plan, receipts for
      installment withdraw, postponed repayment agreement and other material
      concerning with the contract herein shall be regarded as an integral part
      of the contract herein.

            

    

    

    
      	
              Article
      16

            	
              The
      contract herein, an integral part of the surety contract, will becomes
      valid after signatures from parties herein and legal
      representative.

            

    

    

    
      	
              Article
      17

            	
              The
      contract herein is made into five copies, two copies to the borrower
      herein, and one copy each for the lender, surety and notary
      herein.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              Borrower
      (Seal)

            	
              Legal
      Representative: (Signature)

            	      
              /s/ Tao
Li

            

    

    

    
      Borrower’s
Address: 3/F Borough A, Block A, No.181, South Taibai Road,
Xi’an

    

    

    
      	
              Lender:
      (Seal)

            	
              Legal
      Representative: (Signature)

            	      
              /s/ An Hua
  Wang

            

    

    

    Lender’s
Address: No.139, North Avenue, Xi’an City

     

    
      	
              Surety:
      (seal)

            	
              Legal
      Representative: (Signature)

            	      
              /s/ Xiu Yiang
  Zhang

            

    

    

    
      Surety’s Address: Room 1201, Unit 4, 2F
Gaoke Garden, Gaoxin District, Xi’an 

       

      Date: September 14,
2009Unassociated Document

    Exhibit 10.7

     

    Contract
No. Xi’an City Commercial Bank (Xincheng) Loan No. 【2009】24.

    

    Mortgage
Agreement

    

    Name:
Xi’an Yuansheng Industry Co., Ltd

    Account
Bank: Xi’an City Commercial Bank Xincheng Branch

    Signed
Date: 2009

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Xi’an
City Commercial Bank

    

    Mortgager
(Borrower or the third party): Xi’an Yuansheng Industry
Co., Ltd

    Mortgagee
(Lender): Xi’an City
Commercial Bank Xincheng Branch

    

    The
mortgage is willing to provide collateral mortgage to the mortgage for the
purpose of securing the realization of lender’s loan right. This Agreement is
formulated on the basis of friendly negotiation between the mortgager and
mortgagee.

    

    
      Article
1   The creditor’s right of collateral mortgage is the loan under
the Loan agreement No.【2009】24 of Xi’an City
Commercial Bank Xincheng Branch, which the Borrower-Xi’an Kingtone Information
Technology Co., Ltd had borrowed, with the amount of twenty three million five
hundred thousand RMB and term of one year, from September 28,
2009 to September 27, 2010

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      Article
2   The mortgage scope herein includes the principal of the loan,
interest (also the compound interest and fine which arose due to the borrower’s
breach of loan contract.), liquidated damages, cost to execute the mortgage
right.

    

    

    
      Article
3   The mortgage should have fully disposition on the property
under mortgage, which will be listed on the mortgage form hereunder. The
mortgage form is considered to be an integral part of this
Agreement.

    

    

    Article
4   Commitments of the mortgager:

    
      	
               
      

            	
              1.

            	
              Fully
      known the contents of the mentioned Loan Contract; this Mortgage had truly
      expressed the willingness of the
mortgager.

            

    

    
      	
               
      

            	
              2.

            	
              Enjoying
      the ownership right or right of disposal to the collateral
      security;

            

    

    
      	
               
      

            	
              3.

            	
              During
      the mortgage period, the mortgage is liable to well keep, maintain and
      repair the collateral security. In case the mortgagee is willing to know
      more information of the mortgaged property, the mortgager shall cooperate
      on this issue and offer a truthful
report.

            

    

    
      	
               
      

            	
              4.

            	
              The
      mortgagor shall keep the original cope of property certificate hereunder
      listed upon the effective date herein (other laws and stipulations will be
      followed, if any.).

            

    

    
      	
               
      

            	
              1)

            	
              _____NONE_______________

            

    

    
      	
               
      

            	
              5.

            	
              The
      collateral mortgage, which the mortgagee requests to insure, the mortgager
      is liable to complete all insurance proceedings and also the extension
      period upon expiration. The insurance policy shall be under mortgagee’s
      custody.

            

    

    
      	
               
      

            	
              6.

            	
              The
      mortgager is liable to carry out the evaluation, notarization, insurance,
      appraisal, registration, transportation and storage of collateral mortgage
      and shall assume all costs arising from
above.

            

    

    

    
      Article
5   During the period of mortgage, the mortgager shall inform the
mortgagee the capital decrease raised by the mortgager and offer the mortgaged
property or other effective mortgage, equal in value, within ten days after the
decrease.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      Article
6   In case there is a loss of collateral mortgage within the
insured scope or a decrease in the value of collateral mortgage caused by the
third person during the period of mortgage, the insurance indemnity or damages
shall be 1) deposited into the account assigned by the mortgagee and can not be
utilized by the mortgager during the mortgage; 2) or repay the loan in advance
upon mortgager’s consent(choose one during signing the
contract).

    

    

    
      Article
7   In case the collateral mortgage is destroyed during the
mortgage, the mortgager shall inform the mortgagee in advance and offer the
collateral mortgage  again or other effective
guarantee.

    

    

    
      Article
8   In case the collateral mortgage is the rented property of the
mortgager, a written notice shall be sent to the mortgagee prior to making this
mortgage agreement. The mortgagee’s written consent shall be obtained in case
the mortgager rents the collateral mortgage during the mortgage
period.

    

    

    
      Article
9   During the period of mortgage, the mortgager can receive
certain amount of money by transferring the collateral mortgage, which, however,
1) shall be deposited to the account assigned by the mortgagee and can not by
utilized during the mortgage period; 2) or the borrower repay the loan in
advance upon mortgager’s consent(choose one during signing the
contract).

    

    

    
      Article
10   A timely written notice shall be issued to the mortgagee in
case of any of the following situations occur.

    

    

    
      	
               
      

            	
              1.

            	
              Change
      in operational system, such as undertaking, lease, joint operation, merge,
      system reform, separation, trusteeship, cooperation with foreign companies
      and etc.;

            

    

    
      	
               
      

            	
              2.

            	
              Involving
      significant economic disputes or lawsuit (the involving amount over 1/2 of
      the loan amount or the case is the first instance carried through by
      intermediate people's court or
above);

            

    

    
      	
               
      

            	
              3.

            	
              Disputes
      in ownership of the collateral
mortgage;

            

    

    
      	
               
      

            	
              4.

            	
              Recession,
      dismissal, suspension of business for rectification, application for
      auction, suspension of business license, application for bankruptcy, or
      revocation;

            

    

    
      	
               
      

            	
              5.

            	
              Change
      of registered capital, residing address, telephone, or legal
      representative;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    In case
the Item 1 occurs, the mortgager shall notify the mortgagee thirty days in
advance; in terms of other items, the notice shall be given to the mortgagee
within three days.

    

    
      Article
11   The mortgager shall compensate the loss to the mortgagee due
to the mortgager’s breach of Agreement herein.

    

    

    
      Article
12   In the event of collecting the loan ahead of time stipulated
in the Loan agreement and failure to fully pay off the debt under the Loan
Contract, the mortgagee has the right to legally dispose the collateral mortgage
in advance so as to collect the principal and interest.

    

    

    
      Article
13   The written notice from the mortgager shall be received in
advance upon the effectiveness of the Agreement herein. The mortgager is liable
to report the change to the register organ.

    

    

    
      Article
14   In the event of failure to pay off the debt by the borrower
upon the expiration of the Loan Agreement, the mortgage shall specify the
auction institution to conduct the bottomless auction, or sell off in accordance
with the law.

    

    

    
      Article
15   This Agreement is separated from the Loan Agreement, that
is, this Mortgage Agreement still prevails even if the Loan Agreement is null
and void.

    

    

    
      Article
16   In case of failure to repay the debt in accordance with the
Loan Agreement upon the expiration of loan, the borrower or mortgager shall
voluntarily accept the forcible execution by the people's court of
law.

    

    

    
      Article
17   The disputes arising during execution of the Agreement
herein by the mortgager and mortgagee shall be solved through friendly
negotiation. Otherwise, the lawsuit can be brought to the local people's court
of law.

    

    
      Article
18   Other items negotiated by the two
parties:

    

    The
mortgager shall not set the mortgage plan on the collateral mortgage without the
written notice from the mortgagee.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      Article
19    The Agreement herein is made into five copies, two
copies to the mortgagee herein.

    

    

    
      
        	
                Mortgager’s
      Address:

              	
                Mortgagee’s
      Address:

              
	
                Room
      1201, Unit 4, 2F Gaoke Garden,

              	
                No.139,
      North Avenue, Xi’an City

              
	
                Gaoxin
      District, Xi’an

              	 
      
	 
      	 
      
	
                Issuing
      Bank: Xi’an Beilin Rural Credit Cooperation North Wenyi
    Branch

              
	
                Account:04020112011108701

              	 
      
	
                Telephone:
      029-88231591

              	
                Telephone:029-87232274

              
	
                Fax:029-88231590

              	
                Fax:029-87232274

              
	
                Postcode:710065

              	
                Postcode:710003

              
	
                Annex:
      Mortgage List

              	 
      
	 
      	 
      
	
                Mortgager:
      (Seal)

              	
                Mortgagee:
      (Seal)

              
	 
      	 
      
	
                Legal
      Representative: (Signature) /s/ Xiu Yiang
      Zhang        

              	
                Legal
      Representative: (Signature) /s/ An Hua Wang       

              
	 
      	 
      
	
                Date:
      September 14, 2009

              	
                Date:
      September 14, 2009

              

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      Mortgage
List

    

    

    
      
        
          
            
              
                
                  	
                          Name

                        	 
      	
                          Quantity

                        	 
      	
                          Location

                        	 
      	
                          Certificate

                        	 
      	
                          Estimated
      Value

                        	 
      	
                          Notes

                        
	
                          Land

                        	 
      	
                          201.53
      acreage

                        	 
      	
                          East
      Part of Caotan Farm, Weiyang District, Xi’an

                        	 
      	
                          No.011【2009】State-owned
      Weiyang District, Xi’an

                        	 
      	
                          99.16million

                        	 
      	 
      
	
                          Land

                        	 
      	
                          29.61
      acreage

                        	 
      	
                          East
      Part of Caotan Farm, Weiyang District, Xi’an

                        	 
      	
                          No.012【2009】State-owned
      Weiyang District, Xi’an

                        	 
      	
                          15.55million

                        	 
      	 
      

                

              

            

          

        

      

    

    

    
      
        	
                Mortgager:
      (Seal)

              	
                Mortgagee:
      (Seal)

              
	 
      	 
      
	
                Legal
      Representative: (signature) /s/
      Xiu Yiang Zhang        

              	
                Legal
      Representative: (signature) /s/ An Hua Wang      

              
	 
      	 
      
	
                Date:
      Sept. 14, 2009

              	
                Date:
      Sept. 14, 2009

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