Document:

Exhibit
        10.10

       
Contract:
      A101A05199

    

    BANK
      OF
      COMMUNICATIONS

    

    BORROWING
      AGREEMENT

     

    7th
      November, 2005

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Contract
      No.: 

     

    Borrowing
      Agreement

    

      Important
        Notice

       

      The
        Borrower is requested to carefully read the contents of this Agreement,
        especially the terms marked 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 Island Science Park, Miao Shan Development Zone, Jiang Xia
      District

     

    Address
      for Correspondence: Cang Long Island Science Park, Miao Shan 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
      THIRTY SEVEN MILLION YUAN ONLY.
      

     

    1.3
      The
      loan under this Agreement shall be only used for Borrowing
      the New Loan and Paying the Former. 

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    1.4
      Period: From November
      7, 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 number of days that Borrower has possessed the loan. The
      number of days 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 paid together with the principal loan
      upon
      the expiration of the loan. The interest shall be paid on the same day of the
      interest settling day: 

     

    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 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 THIRTY SEVEN MILLION YUAN
                ONLY (amount
                in words)
	___ D
                ___M ____Y; 	 	__________________________________(amount
                in
                words)
	___D
                ___M ____Y; 	 	__________________________________(amount
                in words)
	___D
                ___M ____Y; 	 	__________________________________(amount
                in words)

      

    

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    
    

    ▲▲
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.
      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 THIRTY SEVEN MILLION 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. 

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    
       

    

    ▲▲
      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 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. 

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    
       

    

    ▲▲
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,
      lease out, donate, 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 been 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.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    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 right 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.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    
       

    

    Article
      7 Other Agreed Matters

     

      
        

      

    

     

      
        

      

    

     

    ▲▲
      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. 

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    ▲▲
      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
      Communications 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
      way of
      the
      following ways. During the period of disputes, each party shall continue to
      perform the terms which are not involved in the dispute. 

     

    1
      File a
      lawsuit before the competent court at the place of the Lender; 

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    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 integral part of
      this
      Agreement. 

     

    12.2
      This
      Agreement shall come into force after 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 four
      originals, the signing parties and the Guarantor shall hold one respectively.
      

     

    (No
      text
      below this page) 

    
      
        
        

      

      
        -10-

        
          

        

      

      
         

      

    

     

    
      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
      7, 2005 

    

    The
      Lender: Bank of Communications Wuhan Branch (SEAL)

     

    Legal
      Representative (Responsible Person) or Authorized Representative (SIGNATURE
      OR
      SEAL): /s/ Wang Zhiguo (SEAL) 

    

    Date:
      November
      7, 2005 

    

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    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 an addition to the Borrowing
      Agreement No. A101A05199 (hereinafter
      referred to as the “Original Agreement”) and the Mortgage
      Agreement No. DiA101A05158
      (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
                THIRTY-

              SEVEN
                MILLION YUAN ONLY

            	 	
              October
                11, 2006

            	 	
              RMB
                

              THIRTY-SEVEN
                MILLION 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.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    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.

     

    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.

    

      
        	
                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 

      

    

    

    
      
        
        

      

      
        -13-Exhibit
      10.11

    Contract
      No.:
      Di A101A05158

    

    BANK
      OF
      COMMUNICATIONS

    

    

    MAXIMUM
      MORTGAGE AGREEMENT

    

    (Applicable
      to Guarantee of Agreement without limitation of amount where the Mortgagor
      is a
      legal entity or any other organization)

     

    

    October
      11, 2005

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Maximum
      Mortgage Agreement

     

    
      
        	
                Important
                  Notice

                The
                  Mortgagor
                  is requested to carefully read the contents of this Agreement,
                  

                especially
                  the terms with ▲ ▲.
                  If you have any questions, please ask the
                  Mortgagee.

              

      

    

     

    Mortgagor:
      Wuhan
      Blower Co., Ltd. 

    Legal
      Representative (Responsible Person): Xu
      Jie

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

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

    Mortgagee:
      Bank
      of Communications Wuhan Branch 

    Responsible
      Person: Hu
      Hui

    Address
      for Correspondence: 847#
      Jianshe Avenue, Wuhan City 

    

    WHEREAS,
      the Mortgagee provides or will provide Wuhan
      Blower Co., Ltd.
      (hereinafter referred to as the “Debtor”) with a series of credit, in order to
      guarantee the realization of the credit rights of the Mortgagee, the Mortgagor
      would like to establish the Maximum Mortgage by the property of which the
      Mortgagor has right to dispose for the right of credit entitled by the Mortgagee
      against the Debtor in respect of such credit.

    In
      order
      to specify the rights and obligations of both parties, the Mortgagor and the
      Mortgagee hereby enter into this Agreement through amicable negotiation.

    

    Article
      1 Mortgaged Property

     

    1.1
      The
      Mortgaged Property provided by the Mortgagor Real Estate Title Certificate
      Wu Fang Quan Zheng Xia Zi No.200402226, No.200402224, No.200505065,
      No.200505066; State-owned Land Use Right Certificate Xia Guo Yong (2005) No.203,
      No.204:
      (hereinafter referred to as the “Collateral”) 

     

    1.2
      The
      details of the Mortgaged Property shall be based on the “List of Collaterlal”
attached to this Agreement. 

     

    1.3
      The
      legal effect of the Mortgage Right shall be extended to the Collateral and
      its
      accessory properties, accessory rights, the attached facilities, things
      connected, processed goods, fruits and subrogated objects. 

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    Article
      2 Responsibilities of Guarantee 

     

    2.1
      The
      Mortgagor shall provide the Maximum Mortgage Guarantee for all Master Contracts
      made and entered into by and between the Mortgagee and the Debtor during
      October 11, 2005 and October 11, 2006. 

    The
      Master Contract mentioned in the preceding clauses means the Credit Business
      Contract made and entered into by and between the Mortgagee and the Debtor
      for
      the current
      capital loan.
      The
      currency category, amount of principal and interest rate of the Mortgagee’s
      right of credit, as well as the period for performance of the liabilities of
      the
      Debtor shall be subject to the Master Contract. 

     

    2.2
      The
      Maximum Amount of Credit of the Mortgage Guarantee (currency category and amount
      in words): RMB
      FORTY-SEVEN MILLION FIVE HUNDRED THOUSAND YUAN ONLY.

     

    2.3
      The
      scope of the Mortgage Guarantee shall include the principal and interest under
      the Master Contract, compound interest, penalty interest, liquidated damages,
      compensation for damages and costs for realization of the right of credit.
      The
      costs for realization of the right of credit shall include but not limited
      to
      cost of collection, court fee (or arbitration fee), cost for disposal of the
      Collateral, transfer fee, cost of preservation, announcement fee, execution
      fee,
      attorney fee, travel expense and other expenses. 

    ▲▲
2.4
      Pursuant to the Article 5 of the Guarantee Law of the People’s Republic of
      China, both parties to this Agreement particularly agree as follows: The legal
      effect of this Agreement is independent of each Master Contract, the invalidity
      of any Master Contract or its related terms and conditions shall not affect
      the
      legal effect of this Agreement. he Mortgagor shall bear joint and several
      liabilities for the return or compensation liabilities which shall be taken
      by
      the Debtor after the relative Master Contract is null and void. 

    

    Article
      3 Determination of the Guaranteed Right of Credit

     

    3.1
      The
      guaranteed principal right of credit under this Agreement shall be determined
      on
      the earlier date (the “Date of Determination”) of the following dates:

     

    1.
      October 11, 2005; 

     

    2.
      Where
      the Collateral is taken by such property preservation or implementation measures
      as sealing up and seizing, etc. during the mortgage period, the date of taking
      such property preservation or implementation measures; 

     

    3.
      Where
      the bankruptcy case is accepted by the court, the date of acceptance by the
      court of the bankruptcy application; 

     

    4.
      The
      time when the Mortgagee exercises the mortgage right under the Article 8 of
      this
      Agreement. 

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    3.2
      The
      guarantee of this Agreement shall be extended to the principal right of credit
      entitled to the Mortgagee under the Master Contract signed prior to the Date
      of
      Determination (including the current day) and the interests generated (including
      compound interest, overdue interest and diversion penalty interest) until the
      Mortgagor taking responsibilities, court fee (arbitration fee) for realizing
      right of credit, attorney fee, cost of notification, interpellation fee and
      other related costs. 

    

    Article
      4 Registration of Collateral 

     

    The
      Mortgagor shall, after signing this Agreement, forthwith handle formalities
      of
      mortgage registration of the Collateral under this Agreement in the Register
      Authority, and shall deliver the proof of other rights over land, original
      copy
      of certificate of mortgage registration and original copy of title certificate
      of Collateral to the Mortgagee for keeping within three days after completion
      of
      registration formalities. 

    

    Article
      5 Insurance 

     

    5.1
      The
      Mortgagor shall cover the insurance for the Collateral in the insurance amount
      and period as required by the Mortgagee, and also shall appoint the Mortgagee
      as
      the first beneficiary to the insurance benefits.

    After
      completion of the insurance formalities, the Mortgagor shall deliver the
      original policy to the Mortgagee for keeping. 

     

    5.2
      During the validity period of this Agreement, the Mortgagor shall pay all
      premiums on time, and perform other obligations which are necessary for the
      maintaining of the effective duration of the insurance. 

     

    5.3
      If
      the Mortgagor fails to cover the insurance or renew the insurance, the Mortgagee
      shall be entitled to cover or renew at its discretion, pay the premium on behalf
      of the Mortgagor or take other measures to maintain the insurance. The Mortgagor
      shall provide necessary assistance, and bear the premium and related expenses
      paid therefrom by the Mortgagee. 

    

    ▲▲
      Article 6 Representation and Warranty of the Mortgagor 

     

    6.1
      The
      Mortgagor is an independent civil entity which is lawfully established and
      will
      renew 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. 

     

    6.2
      The
      execution and performance of this Agreement is the true declaration of will
      by
      the Mortgagor, obtaining all necessary consents, approvals and authorizations,
      without any legal defects. 

     

    6.3
      All
      documents, materials and information provided by the Mortgagor for the Mortgagee
      during the execution and performance of this Agreement are true, accurate,
      complete and effective. 

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    6.4
      The
      Mortgagor has sufficient right of disposal on the Collateral, if the Collateral
      is co-owned, its right of disposal has obtained all necessary consents and
      approvals. 

     

    6.5
      The
      Collateral has no defects, has not been lawfully sealed up, seized and
      controlled, without any dispute, mortgage, pledge, lawsuit (arbitration),
      etc.

    

    ▲▲
      Article
      7 Obligations of the Mortgagor 

     

    7.1
      In
      the case of the possibility of the damage of the Collateral or the obvious
      reduction of its value, the Mortgagor shall inform the Mortgagee in time, and
      provide new guarantee as required by the Mortgagee. 

     

    7.2
      The
      Mortgagor shall bear the costs for the evaluation, registration, notarization,
      certification, insurance, keeping, repair and maintenance, etc. of the
      Collateral under this Agreement. 

     

    7.3
      The
      Mortgagor shall have custody of the Collateral, shall not use the Collateral
      by
      any abnormal ways, and shall make regular repair and maintenance in order to
      ensure the Collateral is in good condition, as well as cover the insurance
      as
      required by the Mortgagee. 

     

    7.4
      Without the written consent of the Mortgagee, the Mortgagor shall not take
      such
      actions to reduce or possibly reduce the value of the Collateral; and shall
      not
      dispose of the Collateral by any ways such as transfer, gift, lease, and
      establishment of security interest, etc.

     

    7.5
      The
      Mortgagor shall assist the Mortgagee in the inspection to the use, keeping,
      maintenance state of the Collateral as well as the maintenance of the title.
      

     

    7.6
      If
      the following cases occur, the Mortgagor shall forthwith inform the Mortgagee
      in
      writing: 

     

    1.
      The
      safety and good condition of the Collateral is unfavorably affected or possibly
      affected; 

     

    2.
      The
      title of the Collateral is in dispute; 

     

    3.
      The
      Collateral is taken such property preservation or implementation measures such
      as sealing up and seizing, etc. during the mortgage period; 

     

    4.
      The
      mortgage right is infringed or possibly infringed by any third party;

     

    5.
      The
      Mortgagor winds up, dissolves, stops doing business for internal rectification,
      is revoked a business license, is cancelled, applies or is applied for
      bankruptcy. 

     

    7.7
      Before the discharge of all liabilities under all Master Contracts by the Debtor
      to the Mortgagee, the Mortgagor shall not perform the right of recourse arising
      out of the performance of this Agreement against the Debtor or other guarantors.
      

     

    7.8
      The
      Mortgagor shall assist the Mortgagee in the realization of the mortgage right
      without establishing any barriers. 

    

    ▲▲
      Article
      8 Exercise of Mortgage Right 

     

    8.1
      If
      any of the following cases occurs, the Mortgagee shall be entitled to lawfully
      auction and realize the Collateral: 

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    1.
      Where
      the credit business referred in the Master Contract is loan or import bill
      of
      exchange, export bill of exchange, export collection and financing, export
      invoice financing, packing loan, etc., the Debtor fails to pay off on time
      the
      principal and interest in total of the loan or financing funds under any Master
      Contract; 

     

    2.
      Where
      the credit business referred to in the Master Contract is to establish banker's
      acceptance bill, the bank’s letter of credit, as well as letter of guarantee,
      the Debtor fails to pay off on time the amount in total under any Master
      Contract which is paid by the Mortgagee in advance. 

     

    3.
      The
      Mortgagor fails to provide additionally the guarantee under the Article 7.1.
      

     

    8.2
      The
      moneys gained by lawful auction and realization of the Collateral shall be
      disposed of as follows: 

     

    1.
      Pay
      off the due debt by the Debtor; 

     

    2.
      Where
      the Debtor has the debt which is not due, the balance after the discharge shall
      be deposited to the bond account appointed by the Mortgagee; when the debt
      is
      due, if the Debtor fails to discharge the corresponding debts, the Mortgagee
      shall be entitled to deduct and transfer such amounts. 

    

    ▲▲
      Article
      9 Guarantee Terms 

     

    9.1
      Where
      the mortgage right is null and void due to the following causes, the Mortgagor
      shall provide the maximum amount guarantee for the Debtor’s debts under each
      Master Contract: 

     

    1.
      The
      Mortgagor fails to handle formalities for the registration of the Collateral
      under the Article 4; 

     

    2.
      The
      representation and warranty made by the Mortgagor under the Article 6 is not
      true; 

     

    3.
      Other
      causes which are attributable to the Mortgagor. 

     

    9.2
      The
      Maximum Amount of Credit Guarantee by the Mortgagor (currency category and
      amount in words): RMB
      FORTY-SEVEN MILLION FIVE HUNDRED THOUSAND YUAN ONLY,
      and the
      guarantee way is joint and several liability guarantee. 

     

    9.3
      The
      Master Contract scope which is guaranteed by the Maximum Amount Guarantee shall
      be consistent with the Master Contract scope of the mortgage guarantee under
      this Agreement (as agreed in the Article 2.1 hereof). The scope of the guarantee
      of the Mortgagor shall include the principal and interest, compound interest,
      penalty interest, liquidated damages, compensation for damage and costs for
      realization of right of credit under the Master Contract. The costs for
      realization of right of credit shall include but not be limited to cost of
      collection, court fee (or arbitration fee), cost of preservation, announcement
      fee, execution fee, attorney fee, travel expense and other expenses.

     

    9.4
      During the guarantee, the guarantee period under each Master Contract is
      separately calculated from the date of expiry of the liabilities as provided
      in
      each Master Contract until two years after the expiry date of the liabilities
      as
      provided in the Master Contract which is last due among all the Master
      Contracts. Where it is agreed in the Master Contract that the Debtor may perform
      the liabilities by installments, the guarantee period of each installment of
      performance of liabilities under such Master Contract shall be separately
      calculated from the expiration date of performance of such installment of
      liabilities until two years after the expiration date of the installment of
      liabilities that are last due under such contract. The expiration date of period
      for performance of the liabilities under the establishment of banker's
      acceptance bill, the bank’s letter of credit, as well as letter of guarantee
      shall be the date of paying the amounts in advance by the Creditor. Where the
      Creditor declares the liabilities under the Master Contract to be due in
      advance, the expiration date of the period for performance of the liabilities
      shall be the date of advance expiration date as declared by the Creditor.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    9.5
      The
      force of such guarantee terms shall be separate from the other terms of this
      Contract, and the effectiveness of such guarantee terms shall be subject to
      the
      condition that the mortgage right under this Contract fails to be established
      or
      come into force for reasons as provided in the Article 9.1. 

    

    ▲▲
      Article 10 Settlement of Disputes 

     

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

     

    10.1
      File
      a lawsuit before the competent court at the place of the Mortgagee;

     

    10.2
      _____/____
      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
      11 Miscellaneous

     

    ▲▲
11.1
      The Mortgagee shall not be obliged to provide credit for the Debtor as a result
      of this Agreement. 

     

    11.2
      The
“List of Collaterlal” attached to this Agreement shall be an integral part of
      this Agreement. 

     

    11.3
      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; where the Collateral shall be lawfully
      registered. This Agreement shall be effective from the date of registration
      of
      mortgage. 

     

    11.4
      This
      Agreement shall be executed in five originals, the Mortgagor and the Mortgagee
      shall hold one respectively, and the collateral registration authority shall
      hold one. 

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    
 

    Article
      12 Other Agreed Matters

    _______________________________________________________________________

    _______________________________________________________________________

    _______________________________________________________________________

    

    
      	
              
                The
                  Mortgagor has gone through the aforesaid terms, 

                and
                  the Mortgagee
                  has made corresponding explanations 

                upon
                  the request of the Mortgagor, 

                who
                  has no objections to all the contents.

              

            

    

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    (This
      page is for signature, without any text below) 

    

    Mortgagor:
      Wuhan Blower Co., Ltd. (SEAL) 

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

    Date:
      October 11, 2005 

    

    The
      Mortgagee: Bank of Communications Wuhan Branch (SEAL)

    Legal
      Representative (Responsible Person) or Authorized Representative (SIGNATURE
      OR
      SEAL): /s/ Wang
      Zhiguo (SIGNATURE)
      

    

    Date:
      October 11, 2005 

    

    BANK
      OF
      COMMUNICATIONS WUHAN
      BRANCH

    List
      of
      Collaterals

    October
      11, 2005

    
      	
              Mortgagor
                

              Name :
                Wuhan Blower Co., Ltd

            
	
              Name
                of Creditor: Wuhan Blower Co., Ltd

            	
              Mortgage
                Contract No.: Di A101 105158

            

    

     

    
      	
              Name

            	
              Unit

            	
              Quantity

            	
              Title
                Certificate No.

            	
              Place
                of Storage

            	
              Insurance
                Policy No.

            
	
              Real
                Estate

            	 	 	
              Xia
                Ta
                Xiang 2005 

              Zi
                No.019

            	
              Guanfeng
                Road, 

              Cang
                Long
                Dao 

              Science
                Park, 

              JiangXia
                District, Wuhan

            	
              PQJA200542010300000007

            
	 	 	 	
              Xia
                Ta
                Xiang 2005 

              Zi
                No.020

            	
              Guanfeng
                Road, 

              Cang
                Long 

              Dao
                Science Park, 

              JiangXia
                District, Wuhan

            	 
	 	 	 	
              Wu
                Fang Xia Ta

              Zi
                2005 No.01827

            	
              Guanfeng
                Road, 

              Cang
                Long Dao 

              Science
                Park, 

              JiangXia
                District, Wuhan

            	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
              Official
                Seal of Mortgagor: Official
                Seal of Mortgagee:

              Agreement
                Seal of Wuhan Blower Co., Ltd Agreement Seal of Bank of Communications
                Wuhan Branch

              Handed
                by: Hu Hui Handed by: Cao Yu 

            

    

    
 

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    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.

    

    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

     

    
      

    

    
      

    

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    
 

    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)

    Xu
      Jie

    Date:
      October 11, 2006 

    

    
      
        
        

      

      
        -11-

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