Document:

Exhibit
      10.12

     

    
      	 	
              Contract
                No.: 

            

    

     

    Borrowing
      Agreement

    

    Important
      Notice

    

    The
      Borrower is requested to carefully read the content of this Agreement,
      especially the terms with ▲ ▲.
      If you
      have any questions, please ask the Lender. 

    

    Borrower:
      Wuhan
      Blower Co., Ltd. 

     

    Legal
      Representative (Responsible Person): Xu
      Jie

     

    Legal
      Address: Cang Long Dao Science Park of Miaoshan Development Zone, Jiang Xia
      District

     

    Address
      for Correspondence: Cang Long Dao Science Park of Miaoshan Development Zone,
      Jiang Xia District

     

    Lender:
      Bank
      of Communications Wuhan Branch 

     

    Responsible
      Person: Hu
      Hui

     

    Address
      for Correspondence: 847# Jianshe Avenue. Wuhan

     

    WHEREAS,
      the Borrower applies to the Lender for a loan, and, in order to specify the
      rights and obligations of both parties, the Borrower and the Lender hereby
      enter
      into this Agreement through amicable negotiation on terms and conditions as
      follows:

    

    Article
      1 Loan 

     

    1.1
      Currency: RMB.

     

    1.2
      Amount (in words): RMB TEN MILLION FIVE HUNDRED THOUSAND YUAN ONLY.

     

    1.3
      The
      loan under this Agreement shall be only used for Turnover. 

     

    1.4
      Period: From November 25, 2005 to October 11, 2006.

     

    Article
      2 Calculation and Payment of Interest Rate and Interest 

     

    2.1
      Interest Rate: 5.859%
      (____ M
      _____ Y). Daily interest rate = Monthly interest rate/30, Monthly interest
      rate
      = Yearly interest rate/12. 

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    2.2
      Calculation of Interest

     

    2.2.1
      Normal interest = interest rate as agreed in this Agreement multiplied by the
      granting amount and the days occupied. The days occupied shall be calculated
      from the date of granting to the date of maturity. 

     

    2.2.2
      The
      penalty interest on the overdue loan and the diverted loan shall be calculated
      based on the overdue or diverted amounts and actual days. In case the loan
      currency is RMB, the penalty interest rate of the overdue loan shall be
30%
      above
      the interest rate as agreed in this Agreement, and the penalty interest rate
      of
      the diverted loan shall be 100%
      above
      the interest rate as agreed in this Agreement; in case the loan currency is
      foreign currency, the penalty interest rate shall be 20%
      above
      the interest rate as agreed in this Agreement. 

     

    2.3
      The
      interest on the loan under this Agreement shall be settled by the
      first
      of the
      following ways, the interest shall be settled with the loan principal upon
      the
      expiration of the loan. The date of settlement of interest shall be the date
      of
      payment of interest:

     

    1.
      Interest settled on the 20th
      day
      of
      the last month of each quarter; 

     

    2.
      Interest settled on the 20th
      day
      of
      each month. 

     

    Article
      3 Granting and Repayment of Loan 

     

    3.1
      The
      Borrower shall handle relevant procedures for drawing, pursuant to related
      formalities, at least three (3) bank working days in advance, and shall comply
      with the following granting plan. 

     

    
      	
              Granting
                Date

            	 	
              Granted
                Amount

            
	 	 	 
	
              November
                7, 2005  

            	 	
               RMB
                TEN MILLION FIVE HUNDRED THOUSAND YUAN ONLY (amount in
                words)

            
	
              ____
                D
                ___M ____Y: 

            	 	
               ______________________________________
                (amount in words)

            
	
              ____
                D
                __
                M ____Y: 

            	 	
               ______________________________________
                (amount in words)

            
	
              ____
                D
                ___M ____Y: 

            	 	
               ______________________________________
                (amount in words)

            

    

     

    ▲▲
3.2
      The Lender shall be entitled to reject the granting of the loan before the
      following conditions are met: 

     

    1.
      The
      Borrower has handled such legal formalities as related governmental permit,
      approval and registration as well as other formalities as required by the
      Lender, and the preceding formalities such as permit, approval or registration,
      etc. shall continue to be effective; 

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    2.
      The
      Guarantee Contract (if any) under this Agreement has come into force and
      continues to be effective; 

     

    3.
      The
      business and financial status of the Borrower have no significant unfavorable
      changes; 

     

    4.
      The
      Borrower doesn’t breach this Agreement. 

     

    3.3
      The
      actual granting date and granting amount shall be based on the records in the
      Borrowing
      Certificate.
      

     

    3.4
      The
      Borrower shall repay on time subject to the date of maturity as agreed in the
      Article 1.4 and the following schedules, in the case of discrepancy of the
      date
      of maturity as recorded in the Borrowing
      Certificate
      and that
      as stipulated in this Agreement, the record in the Borrowing
      Certificate
      shall
      prevail. 

     

    
      	
              Maturity
                Date

            	 	
              Amount
                of Repayment

            
	 	 	 
	
              October
                11, 2006  

            	 	
               RMB
                TEN MILLION FIVE HUNDRED THOUSAND YUAN ONLY - (amount in words)
                

            
	
              ____
                D
                ___M ____Y 

            	 	
               ____________________________________________
                (amount in words)

            
	
              ____
                D
                ___M ____Y 

            	 	
               ____________________________________________
                (amount in words)

            
	
              ____
                D
                ___M ____Y 

            	 	
               ____________________________________________
                (amount in words)

            

    

    

    ▲▲
3.5
      Without the written consent of the Lender, the Borrower shall not repay the
      loan
      in advance. 

    
      
        
        

      

      
        -3-

        
          

        

      

       

    

     

    ▲▲
      Article 4 Representation and Warranty of the Borrower 

     

    4.1
      The
      Borrower is an independent civil entity which is lawfully established and will
      exist legally, with all necessary legal capacity, and is able to perform the
      obligations under this Agreement and take civil responsibilities in the name
      of
      itself.

     

    4.2
      The
      execution and performance of this Agreement is the true declaration of will
      by
      the Borrower, obtaining all necessary consents, approvals and authorizations,
      without any legal defects. 

     

    4.3
      All
      documents, statements, materials and information provided by the Borrower for
      the Lender during the execution and performance of this Agreement are true,
      accurate, complete and effective, without concealing from the Lender any
      information which may affect its financial status and capacity to repay the
      loan. 

     

    Article
      5 Rights and Obligations of the Lender 

     

    5.1
      The
      Lender shall be entitled to recover the loan principal, interest (including
      compound interest, overdue and diverted penalty interest) as agreed by this
      Agreement, and collect the expenses payable by the Borrower, and perform other
      rights as provided by the laws and as agreed by this Agreement. 

     

    5.2
      The
      financial, business materials and information provided by the Borrower shall
      be
      kept confidential, unless as provided by the laws or otherwise agreed by this
      Agreement. 

     

    Article
      6 Obligations of the Borrower 

     

    6.1
      The
      Borrower shall repay the loan principal and interest under this Agreement
      subject to the time, amount and currency category as agreed by this Agreement.
      

     

    6.2
      The
      Borrower shall not use the loan under this Agreement for other purposes.

     

    ▲▲6.3
      The
      Borrower shall bear the expenses and expenditures under this Agreement,
      including but not limited to the notarization fee, appraisal fee, evaluation
      fee
      and registration fee, etc.

     

    ▲▲
6.4
      The Borrower shall comply with the business system and operation practice of
      the
      Lender relating to handling the loan business, including but not limited to
      assisting the Lender in the supervision and inspection on the circumstances
      of
      use of the loan and the operation state of the Borrower, timely providing all
      financial statements, other materials and information as required by the Lender,
      and ensuring the provided documents, materials and information are true,
      complete and accurate. 

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    ▲▲
6.5
      In
      the case of any of the following cases, the Borrower shall give at least 30
      days
      notice in writing to the Lender, and shall not take any actions before paying
      off the loan principal and interest under this Agreement or providing the
      repayment program as approved by the Lender and providing a
      guarantee:

     

    1.
      Sell,
      donate, lease, lend, transfer, mortgage or otherwise dispose all or substantial
      part of important assets and assets; 

     

    2.
      The
      operation system or property right organization form is or may be changed,
      including but not limited to conducting contracting, lease, affiliate, corporate
      system reform, reform of system of joint-stock and cooperation, sales of
      enterprise, consolidation (merger), joint venture (cooperation), division,
      establishing subsidiaries, transfer of property right and capital decrease,
      etc.

     

    ▲▲
6.6
      The Borrower shall give a written notice to the Lender within 7 days from the
      date of occurrence or possible occurrence of the following matters:

     

    1.
      Alteration of the Articles of Incorporation, change of such industrial and
      commercial registration matters as enterprise name, legal representative
      (responsible person), domicile, address for correspondence or business scope,
      and making a decision which has significant effect on finance and personnel;
      

     

    2.
      The
      Borrower or the Guarantor plans to apply for or has applied for bankruptcy
      by
      the Creditor; 

     

    3.
      Being
      involved in serious litigation or arbitration cases, or otherwise, principal
      assets or the Collateral under this Agreement are taken enforcement measures
      such as property preservation, etc.

    
      
        
        

      

      
        -5-

        
          

        

      

       

    

     

    4.
      Providing a guarantee for the third party, and hence having material unfavorable
      effect on its financial status or capacity to perform the obligations under
      this
      Agreement; 

     

    5.
      Signing the contracts which have material unfavorable effect on its operation
      and financial status; 

     

    6.
      The
      Borrower or the Guarantor winds up, goes out of business, dissolve, stops doing
      business for internal rectification, is cancelled or revoked a business
      license;

     

    7.
      The
      Borrower or its legal representatives (responsible person) or major managements
      are involved in illegal acts; 

     

    8.
      The
      operation is in serious difficulty, the financial status worsens, or other
      events occur which have side effect on the operation, financial status or
      solvency of the Borrower. 

     

    ▲▲
6.7
      In
      case changes occur to the guarantee under this Agreement which is unfavorable
      to
      the rights of credit of the Lender, the Borrower shall timely provide other
      guarantees approved by the Lender as required by the Lender. 

     

    The
      “changes” as mentioned herein shall include but not limited to, the Guarantor
      winds up, goes out of business, dissolves, stops doing business for internal
      rectification, is cancelled or revoked of a business license, applies for or
      has
      applied for bankruptcy; the operation or financial status of the Guarantor
      has
      material changes; the Guarantor is involved in serious litigation or arbitration
      cases; the value of the Collateral decreases or possibly decreases or takes
      such
      enforcement measures as property preservation; the Guarantor has defaulting
      acts
      under the Guarantee Contract; the Guarantor has conflicts with the Borrower;
      the
      Guarantor is required to cancel the Guarantee Contract; the Guarantee Contract
      is invalid or void or cancelled; the security interest is invalid or null and
      void; or other events affecting the safety of the right of credit of the Lender,
      etc.

     

    Article
      7 Other Agreed Matters

     

    
      
        

      

    

     

    
      

    

     

    
      
        
        

      

      
        -6-

        
          

        

      

       

    

     

    ▲▲
      Article 8 Early Maturity of Loan

     

    If
      any of
      the following cases occurs, the Lender shall be entitled to stop the payment
      to
      the Borrower of the unused loan, and unilaterally declare that all principal
      part which is granted under the Agreement shall be due in advance, and require
      the Borrower to immediately repay all loan principals of due loan and settle
      the
      interests. 

     

    1.
      The
      representation and warranty made by the Borrower under the Article 4 is not
      true; 

     

    2.
      The
      Borrower violates this Agreement; 

     

    3.
      Where
      any matter to be notified as listed in the Article 6.6 occurs actually, which
      the Lender deems will affect the safety of its right of credit; 

     

    4.
      The
      Borrower has such defaulting actions such as delay of performance when
      performing other contracts signed with the Lender, and fails to make corrections
      after notice by the Lender. 

     

    ▲▲
      Article 9 Breach of Agreement 

     

    9.1
      In
      the event that the Borrower fails to repay the loan principal in total, pay
      the
      interest on time or fails to use the loan for the purpose as stipulated by
      this
      Agreement, the Lender shall calculate and collect interests by the penalty
      interest rates of the overdue loan or diverted loan, as well as calculate and
      collect compound interest on the due and unpaid interest. 

     

    9.2
      In
      the case of failure to repay the total loan principal and interest on time,
      the
      Borrower shall bear the cost of collection, court fee (or arbitration fee),
      cost
      of preservation, announcement fee, execution fee, attorney fee, travel expense
      and other expenses which have been paid by the Lender for the realization of
      the
      right of credit. 

     

    9.3
      In
      case that the Borrower escapes the supervision by the Lender, defaults in the
      payment of loan principal and interest, escapes debts in bad faith, etc., the
      Lender shall be entitled to report such actions to the relevant units and
      announce through the news media. 

    
      
        
        

      

      
        -7-

        
          

        

      

       

    

     

    ▲▲
      Article
      10 Stipulation on Deduction and Transfer 

     

    10.1
      Where the Borrower has loan principal, interest, penalty interest, compound
      interest or other expenses, the authorized lender shall deduct and transfer
      the
      capital from any account which is opened by the Borrower in Bank of
      Communication for the repayment purpose. 

     

    10.2
      After such deduction and transfer, the Lender shall inform the Borrower of
      the
      account number, loan contract number, Borrowing Certificate number, deducted
      and
      transferred amount and the remaining debt amount in relation to such deduction
      and transfer. 

     

    10.3
      If
      the moneys gained from such deduction and transfer are not sufficient to pay
      off
      all debts of the Borrower, such moneys shall be first used for compensation
      for
      the due and unpaid expenses. In case that the principal and interest is overdue
      less than 90 days, the balance after compensation for the expenses shall be
      first used for the compensation for the due and unpaid interest or penalty
      interest and compound interest, and then used for compensation for the due
      and
      unpaid principal; in case that the principal or interest is overdue for 90
      days,
      the balance after compensation for expenses shall be first used for compensation
      for the due and unpaid principal and then used for compensation for the due
      and
      unpaid interest or penalty interest and compound interest. 

     

    10.4
      In
      case that the moneys gained from such deduction and transfer are not consistent
      with the category of debts to be compensated, it shall be based on the amount
      for compensation for the debts which is converted by the exchange rate announced
      by Bank of Communications on the Date of Deduction and Transfer. 

     

    Article
      11 Settlement of Disputes 

     

    All
      disputes under this Agreement shall be settled by the first
      method of
      the
      following methods. During the period of disputes, each party shall continue
      to
      perform the terms which are not involved in the dispute. 

     

    1.
      File a
      lawsuit with the competent court at the Lender’s jurisdiction; 

    
      
        
        

      

      
        -8-

        
          

        

      

       

    

     

    2.
      _____/_________
      Arbitration Commission shall make arbitration by the prevailing arbitration
      rules at the time of arbitration application, the arbitral award is final and
      binding upon both parties. 

     

    Article
      12 Miscellaneous

     

    12.1
      The
      Borrowing Certificate under this Agreement and the related documents and
      materials which are acknowledged by both parties shall be an integral part
      of
      this Agreement. 

     

    12.2
      This
      Agreement shall come into force after being signed (or sealed) and stamped
      with
      official seal by the legal representative (responsible person) or authorized
      representative of both parties. 

     

    12.3
      This
      Agreement shall be executed in three
      originals, the parties and the Guarantor shall hold one respectively.

     

    (No
      text
      below this page) 

     

    
      
        
        

      

      
        -9-

        
          

        

      

       

    

     

    The
      Borrower has gone through the aforesaid terms, and the Lender has made
      corresponding explanations upon the request of the Borrower, who has no
      objections to all the contents. 

     

    The
      Borrower: Wuhan Blower Co., Ltd. (SEAL) 

     

    Legal
      Representative (Responsible Person) or Authorized Representative (SIGNATURE
      OR
      SEAL): /s/ Xu Jie (SEAL) 

     

    Date:
      November
      25, 2005 

    

    The
      Lender: Bank of Communications Wuhan Branch (SEAL)

     

    Legal
      Representative (Responsible Person) or Authorized Representative (SIGNATURE
      OR
      SEAL): /s/ Hu Hui 

    

    Date:
      November
      25, 2005 

     

    
      
        
        

      

      
        -10-

        
          

        

      

       

    

    
       

    

    Contract:
      

     

    Maturity
      Extension Agreement

    

    Creditor:
      BANK OF COMMUNICATIONS CO., LTD WUHAN BRANCH 

    Debtor:
      Wuhan Blower Co., Ltd

    Guarantor:
      Wuhan Blower Co., Ltd

    

    Article
      1
      This Agreement is a supplement to the Borrowing
      Agreement No. A101A05212 (hereinafter
      referred to as the “Original Agreement”) and the Mortgage
      Agreement No. Di A101A05158
      (hereinafter referred to as the “Original Guarantee Agreement”); Unless
      otherwise stipulated herein, provisions of the Original Agreement and the
      Original Guarantee Agreement shall still be applicable to the rights and
      obligations and pertinent matters of the Creditor, Debtor and Guarantor.

    

    Article
      2
      The Creditor agrees to extend the maturity of corresponding debts (hereinafter
      referred to as the “Original Debts”) set forth in respective Borrowing
      Certificates/Bank Certificates under the Original Agreement, according to the
      following table:

     

    
      	
              No.

            	 	
              Borrowing
                Certificate/Bank Certificate

            	 	
              Amount
                of Debts (Currency and Amount in Words)

            	 	
              Maturity
                Date of Original Debts

            	 	
              Amount
                of Debts the Maturity of Which is Extended (Currency and Amount in
                Words)

            	 	
              New
                Maturity Date after Extension

            	 	
              Interest
                Rate of Maturity Extension

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              1

            	 	 	 	
              RMB
                TEN MILLION AND FIVE HUNDRED THOUSAND YUAN ONLY

            	 	
              October
                11, 2006

            	 	
              RMB
                TEN MILLION AND FIVE HUNDRED THOUSAND YUAN ONLY

            	 	
              April
                11, 2007

            	 	
              6.615

            	%
	
              2

            	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              3

            	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              4

            	 	 	 	 	 	 	 	 	 	 	 	 	 

    

    

    Article
      3
      As of the date when the original debts mature, the interest rate of maturity
      extension shall be applicable.

    

    Article
      4
      The Guarantor shall continue to provide a guarantee for the extended debts
      of
      the Debtor:

     

    4.1
      Where
      a mortgage/pledge guarantee (including the maximum amount mortgage) is specified
      under the Original Guarantee Agreement, the Guarantor shall timely deal with
      formalities of insurance renewal effected for mortgaged/pledged properties,
      and
      shall after formalities are properly finished submit relevant certificates
      in
      original copies to the Creditor for custody.

     

    4.2
      Where
      a security guarantee (including the maximum amount security) is specified under
      the Original Guarantee Agreement, the Guarantor shall continue to bear joint
      and
      several liability security for the Debtor’s extended debts. The security period
      of each debt shall be two years from the new maturity determined after extension
      of old maturity of such debt.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    Article
      5
      The Debtor shall be responsible for any and all expenses arising from the debt
      maturity extension, including but not limited to insurance expenses incurred
      for
      renewal of insurance affected for mortgaged/pledged properties.

    

    Article
      6
      Other Agreed Matters

     

    
      
        

      

    

     

    
      
        

      

       

      
        
          

        

      

    

     

    Article
      7
      This Agreement will come into force after signed and by legal representatives
      (responsible persons) or authorized representatives (personal seals thereof)
      of
      both Parties, and affixed with official seals of both Parties.

    

    Article
      8
      This Agreement is executed in three original copies, with one text for each
      Party.

    

    (No
      Text
      on This Page)

     

    
      
        	
                Creditor
                  (Official Seal) 

              	 	
                Debtor
                  (Official Seal)

              
	
                Agreement
                  Seal of 

              	 	
                Agreement
                  Seal of

              
	
                Bank
                  of Communications Co., Ltd Wuhan Branch 

              	 	
                Wuhan
                  Blower Co., Ltd

              
	
                Responsible
                  Person or Authorized Representative 

              	 	
                Legal
                  Representative (Responsible Person) ore Authorized Representative
                  

              
	
                (Signature
                  or Seal) 

              	 	
                (Signature
                  or Seal)

              
	
                /s/
                  Hu Hui 

              	 	
                /s/
                  Xu Jie

              
	
                Date:
                  October 11, 2006 

              	 	
                Date:
                  October 11, 2006

              

      

    

     

    Guarantor
      (Official Seal)

    Agreement
      Seal of 

    Wuhan
      Blower Co., Ltd

    Legal
      Representative (Responsible Person) ore Authorized Representative 

    (Signature
      or Seal)

    /s/
      Xu
      Jie

    Date:
      October 11, 2006 

     

    
      
        
        

      

      
        -12-Exhibit
      10.13

     

    Agreement
      on Short-term Loans from Shanghai Pudong Development Bank 

     

    No:
      70012006280806

     

    Borrower:
      Wuhan Blower Co., Ltd.

    Legal
      Address: Cang Long Dao Science Park, Jiangxia District, Wuhan 

    Mailing
      Address: 

     

    Lender:
      Shanghai Pudong Development Bank Wuhan Branch 

    Address:
      

     

    Whereas
      the borrower applies for short-term loans from the lender, the parties hereby
      enter into this Agreement for observation in accordance with relative laws,
      regulations and provision of the People’s Republic of China.

     

    
      
        Article
          1 Loan
          

      

    

     

    1.1
      The
      loan currency under this Agreement is
      RMB,
      the cap
      amount of which is Sixteen
      Millionin
      Words), and effective evidence for debt owned by the borrower is subject to
      the
      accounting document issued by the lender according to the operating provisions.
      

     

    1.2
      The
      credit period under this Agreement is 12
      months,
      that
      is, from
      Oct
      19, 2006
      to
      Oct
      18, 2007.

     

    1.3
      The
      loans under this Agreement shall be only used by the borrower for short-term
      fund turnover and may not be used for other purposes. 

     

    
      
        Article
          2 Loan
          Rate and Methods of Figuring Interest

      

    

     

    2.1
      Interest rate under this Agreement:

     

    (1)
      In
      case
      of RMB loans under this Agreement, interest rate shall be interest rate of
      The
      People's Bank of China at 0.51
      (%/month) plus (or minus) 5%.
      In
      case of adjustment on benchmark interest rate by the State during the Agreement
      period, the relevant benchmark interest rate applicable to the loan under this
      Agreement shall be adjusted after the first date to accrue interest after the
      date of adjustment according to corresponding interest level issued by the
      People’s Republic of China. The lender shall notify the Borrower of such
      adjustment. 

     

    (2)
      As
      for
      foreign exchange loans under this Agreement, annual interest rate shall be
      /
      %(floating
      according to
      /
months).

     

    2.2
      Interest on loans under this Agreement shall be charged based on 360 days
      annually according to actual total drawings and number of days of loan after
      the
      date of withdrawal. 

     

    2.3
      Loan
      interest under this Agreement shall be paid on the 20th
      day of
      the last month of each quarter under the Gregorian calendar. As for foreign
      exchange loans, loans under this Agreement shall be returned on the day to
      accrue the interest, and the borrower must pay the lender mature interest on
      the
      interest paying date, and hereby authorize the lender to collect the interest
      actively from the borrower’s deposit account issued in location of the
      lender. 
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        Article
          3 Drawing
          and Returning of Money

      

    

     

    3.1
      The
      lender shall have no obligation to provide loans under this Agreement unless
      the
      following conditions occur.

     

    (1)
      The
      borrower has filled out Debt
      and Credit Certificate
      and
      delivers relevant documents and materials at the request of the lender before
      drawing money. 

     

    (2)
      The
      borrower has transacted government permit, authorization, registration and
      other
      proscribed procedures concerning the loan and shall transact notarization
      procedures of this Agreement at the request of the lender. 

     

    (3)
      Provided
      that loans under this Agreement are secured, and proscribed procedures such
      as
      notarization and registration etc. have been transacted at the request of the
      lender, the mortgage shall remain effective. 

     

    (4)
      No
      circumstance of breach of Agreement occurs as listed in Article 7 of this
      Agreement. 

     

    3.2
      

     

    (1)
      The
      borrower shall 

     

    Draw
      money by installments according to the following drawing plan, but handle the
      drawing procedures with the lender 3 bank working days prior to each drawing
      date.

     

    
      
        
          	
                  Date
                    of drawing by installments

                	 	
                  Drawing
                    amount

                
	
                  ___/___ M____ /____ D___ 
/____ Y

                	 	
                  ______/____ (currency)______/_____ (Amount
                    in words)

                
	
                  
                     

                    ___/___
 M____ /____ D___ /____ Y

                  

                	 	
                   

                  
                    ______/____ (currency)______/_____ (Amount
                      in words)

                  

                
	
                  
                     

                    ___/___ M____ /____ D___ /____
 Y

                  

                	 	
                  
                     

                    ______/____ (currency)______/_____ (Amount
                      in words)

                  

                
	
                  
                     

                    ___/___ M____ /____ D___ /____ 
Y

                  

                	 	
                  
                     

                    ______/____ (currency)______/_____ (Amount
                      in words)

                  

                
	
                  
                     

                    
___/___ M____ /____ D___ /____ Y

                  

                	 	
                  
                     

                    ______/____ (currency)______/_____ (Amount
                      in words)

                  

                

        

         

        Or

         

      

    

    Handle
      one-off drawing procedures with the lender three (3) bank working days prior
      to
      the date on which all conditions for money withdrawal as provided herein have
      been satisfied. 

     

    (2)
      After
      the borrower has satisfied the conditions of drawing as provided hereunder
      and
      has completed the drawing procedures in accordance with the preceding paragraph
      the borrower shall promptly release the loan. 

     

    3.3
      The
      lender has the right to cancel the remaining part not drawn by the borrower
      according to the preceding paragraph, which the borrower shall have no right
      to
      draw again without consent from the lender. 

     

    3.4
      The
      borrower shall return all loans on the expiry date of the loan and hereby
      authorize the lender to collect the money actively from deposit account issued
      by the borrower in location of the lender. 

     

    3.5
      The
      borrower shall acquire prior consent from the lender in case of returning the
      loan in advance. 

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    
      
        Article
          4 Representation
          and Guarantee

      

    

     

    The
      borrower makes the following representation and guarantee at the time of
      signature, which shall remain effective during effective period of this
      Agreement.

     

    4.1
      The
      borrower is a corporate (not-for-profit) ; legal person registered and
      established according to Chinese laws, which has full rights to its total
      assets, and has complete civil capacity to be held responsible for independent
      civil liability.

     

    4.2
      The
      borrower has authorized a representative to sign this Agreement, the articles
      of
      which are all real declarations of the will of the borrower and have binding
      force on the lender.

     

    4.3
      Execution and performance of this Agreement by the borrower shall not go against
      laws, regulations, rules, adjudications or commands that shall be observed
      by
      the borrower and not in conflict with the borrower’s Articles of Associations,
      or any contract and agreement signed by the borrower or any other obligations
      undertaken by the borrower.

     

    4.4
      The
      borrower guarantees that all its issued financial reports are in compliance
      with
      relevant laws and regulations of China, which give true and fair expression
      of
      the borrower’s financial status; and that all documents and materials involved
      with this Agreement are true, effective, complete and correct without any
      concealed information.

     

    4.5
      The
      borrower doesn’t conceal any impacts or court cases, arbitration cases,
      administrative procedures, attachment actions, compulsory executive procedures
      that may impact its signature or execution of this Agreement or result in
      important adverse effect on its business or financial status or any other
      important adverse events.

     

    
      
        Article
          5 Agreements

      

    

     

    The
      borrower and the lender have entered into the following agreements during period
      of the loan. 

     

    5.1
      The
      borrower guarantees that it is a legal business and to use the loan as required
      by 1.3 of this Agreement, to assist the lender to supervise and check the
      circumstances of use of the loan and business status of the borrower and to
      provide the lender with monthly and annual financial reports and other relevant
      materials required by the lender. 

     

    5.2
      The
      borrower guarantees that it will not carry out contracting, leasing management,
      joint management, remolding into stock system, consolidation (merger), joint
      investment (cooperation), dividing, establishment of subsidiary companies,
      transfer of property rights, decrease of capital, suspension of business,
      dissolution, application for bankruptcy or others that may impact rights and
      interests of the lender. 

     

    5.3
      The
      borrower guarantees not to make important changes to Articles of Association
      or
      business scope, sell, lease, transfer or process all or most part of its assets
      in other ways without consent from the lender; nor provide guarantees to a
      third
      party that may result in important adverse effects on its financial status
      or
      capacity to execute this Agreement.

     

    5.4
      The
      borrower guarantees not to go against normal returning order to pay off other
      loans preferentially, and not to sign any contract or agreement that may result
      in a subsumed status of loans under this contact at present or in the future.
      

     

    5.5
      The
      borrowers shall pay off principal and interest under this Agreement in the
      same
      currency, and shall ensure to exchange money acquired from the guarantor into
      the loan currency by exchange transactions, adjustment or forward contract
      to
      pay off principal and interest under instruction of the lender in case that
      the
      guarantor should pay off the debts in a different currency.

     

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    5.6
      In
      case of any event that may result in important adverse effects on the
      guarantor’s financial status or capacity to perform guarantee obligation, the
      borrower guarantees to timely provide another guarantor approved by the
      lender.

     

    5.7
      The
      borrower guarantees to timely inform the lender of the following
      matters.

     

    (1)
      Inform the lender of any breach of Agreement listed in Article 7 or any facts
      that may result in such breach of Agreement in written form 3 days after knowing
      the event;

     

    (2)
      Inform the lender of any important adverse events stated in 4.5 herein in
      written form within 3 days after occurrence of the event; 

     

    (3)
      Inform the lender of change of legal representative, authorized representative,
      mailing address, corporate name, or any important changes in finance and human
      sources in written form 10 days in advance.

     

    5.8
      In
      case of any event listed in 4.5 herein that many impact execution of liabilities
      of the borrowers, the lender has the right to process it as stipulated in 8.1
      herein. 

     

    
      
        Article
          6 Guarantee
          for Debt

      

    

     

    6.1
      The
      following guarantor shall provide the guarantee to the lender for the borrower
      in respect of the principal, interest, penalty and relevant charges under this
      Agreement (guarantee contract shall be otherwise signed)

     

    (1)
      ________________(guarantor)
      shall provide guarantee; and the Guarantee Contract No. is.

     

    (2)
      Xu
      Jie
      - Guanglin Chemistry Factory, Liufang Street, Jiangxia District,
      Wuhan   (mortgagor)
      shall provide real
      estate
      (estate
      under mortgage) as mortgage guarantee; and the Mortgage Contract No. is
ZD7001200628078501,
      ZD7001200628078502 .
      

     

    (3)
      ____________ (pledger)
      shall provide ___________
      (pledge)
      as pledge guarantee; and the Pledge contract No. is ____________ .

     

    
      
        Article
          7 Events
          of Breach of Agreement

      

    

     

    
      
        7.1
          Any
          of
          the following events are deemed as breach of this Agreement by the borrower;
          

      

    

     

    (1)
      The
      borrower fails to return or pay off all or part of mature principle and interest
      and relevant charges.

     

    (2)
      The
      borrower fails to perform or goes against representation and guarantee
      stipulated in Article 4 herein, or makes false, incorrect or incomplete
      representation or guarantee. 

     

    (3)
      The
      borrower has gone against agreements in Article 5 herein. 

     

    (4)
      The
      borrower
      violates any other signed loan contract and agreement which results in the
      liabilities declared to be premature under the said contract and agreement;
      or
      the borrower does not pay the due liabilities under other signed loan contract
      and agreement.

     

    (5)
      Investor for the borrower withdraws his money, transfers assets or transfers
      stock rights without authorization. 

     

    (6)
      The
      guarantor has lost or will lose ability to provide corresponding guarantee
      with
      the loan, or goes against the guarantee documents he has signed.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    (7)
      The
      borrower goes against other articles (other than this article)
      herein.

     

    7.2
      That
      the lender fails to provide loans as stipulated in 3.2(2) herein is deemed
      as
      breach of Agreement, except for breach by the borrower as provided in Article
      7.1. 

     

    
      
        Article
          8 Handling
          of Breach of Agreement

         

      

    

    8.1
      In
      case of one or several events listed in Article 7 herein, the lender can proceed
      in one or several of the following actions according to the
      situation.

     

    (1)
      Declare advanced maturity of principal under this Agreement, all interests
      shall
      be accrued, and recourse them immediately from the guarantor or borrowers in
      various forms.

     

    (2)
      Charge penalties and compound interest to overdue loans or loans diverted to
      any
      other purpose, where interest rate for breach of RMB loans shall be processed
      as
      stipulated by The People's Bank of China, and that of foreign exchange loans
      shall be processed according to 20% more than the original rate.

     

    (3)
      Collect part or all of deposit accounts in all business agencies of Shanghai
      Pudong Development Bank by the borrower.

     

    (4)
      Cancel loan amounts not used by the borrower. 

     

    (5)
      Request the borrower to provide other guarantees approved by the lender.

     

    (6)
      Other
      essential actions prescribed by law. 

     

    Under
      such a situation, the borrower agrees to abandon any right to defense, and
      shall
      compensate for all losses of the lender caused by breach of this
      Agreement.

     

    8.2
      The
      lender with any breach of Agreement stated in 7.2 herein shall only be liable
      for actual losses of borrowers in replaced loans on financial market, that
      is,
      the differential between replaced loan acquired in normal ways on financial
      market by the borrower and interest acquired from the lender. Save from such
      liability, the lender shall not undertake any other liability.

    Article
      9 
      Other Clauses

     

    9.1
      After
      this Agreement takes effect, in case of any non-compliance with relevant laws,
      regulations or rules issued by the state, both parties hereinto shall timely
      negotiate on a supplementary contract to consummate this one under the
      precondition that the lender’s loan security and benefit are safeguarded. The
      lender keeps the right to accelerate loan expiration and right of immediate
      recourse.

     

    9.2
      This
      Agreement applies to laws of the People’s Republic of China, and disputes
      concerning this Agreement shall be under administration of people’s court in
      location of the lender’s business.

     

    9.3
      This
      Agreement goes into effect after signed and sealed by both parties, and expires
      after all principle, interest and charges under it have been paid
      off.

     

    9.4
      Loan
      application, loan evidence, loan obligation, corresponding guarantee contract
      and relevant documents and materials are indispensable parts of this Agreement,
      which have equal binding force with this Agreement.

     

    9.5
      Provided that this Agreement has been signed and coded before loan release
      for
      purposes such as transaction of mortgage registration, the computer system
      will
      generate another code automatically on loan release. In such a case, both
      parties agree that both codes are effective.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    9.6
      Provided that this Agreement has been signed and filled with anticipated
      beginning and expiry dates of the loan before loan release for purposes such
      as
      transaction of mortgage registration, the actual date of loan release may not
      comply with the anticipated date filled herein. In such a case, the actual
      date
      of loan release recorded in evidences such as loan note etc. shall prevail.
      

     

    9.7
      The
      Agreement is executed in duplicate, with one original retained by each party
      and
      several copies for later reference. 

     

    Borrower:

    Wuhan
      Blower Co., Ltd. (Seal)

     

    Legal
      representative or authorized representative (signature and seal) : /s/ Xu
      Jie

     

    Lender:

    Shanghai
      Pudong Development Bank Wuhan Branch

     

    Legal
      representative or authorized representative (signature and seal) : /s/ Li
      Fan

     

    Opening
      bank and Account No. : 

     

    Date
      of
      signature: Oct 19, 2006

     

    
      
        
        

      

      
        -6-

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