Document:

Exhibit
      10.5

    

    (English
      translation of the Loan between Tianjin Daqiuzhuang Metal Sheet Co., Ltd.to
      and
      Yang Pu Automotive Investment Limited)

    

    

    Loan
      Agreement

    

    Party
      A:
      Tianjin Daqiuzhuang Metal Sheet Co., Ltd.

    

    Party
      B:
      Yangpu Capital Automotive Investment Limited 

    

    

    On
      Nov.
      15, 2005, Party B borrowed RMB24 million from Party A for business needs. The
      loan term shall be one year and the annual interest is calculated at 7%. Upon
      maturity of the loan term, Party B shall pay the principal sum to Party A.
      

    

    IN
      WITNESS WHEREOF, the Parties hereto have caused this agreement to be duly
      executed as of the date set forth below. 

    

    

    

    

    Party
      A

    

    Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd. (Stamp) 

    

    

    Dated
      Nov. 15, 2005

    

    

    

    

    Party
      B

    

    Yangpu
      Capital Automotive Investment Limited (Stamp)

    

    

    Dated
      Nov. 15, 2005Loan
      Contract

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Agricultural
      Bank of China

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    Loan
      Contract

    No.
      (JJH)NYJZ(2005) 12101200500002894

    

    Borrower
      (full name): Tianjin Daqiuzhuang Metal Sheet Co., Ltd. 

    Lender
      (full name): Agricultural Bank of China Tianjin Daqiuzhuang
      Sub-Branch

    

    

    The
      Contract is entered into through negotiation in accordance with pertinent laws
      and regulations. 

    

    Article
      1
      Loan

    

    
      	
              1-1

            	
              Kind:
                short-term working capital loan 

            

    

    
      	
              1-2

            	
              Purpose:
                refinancing 

            

    

    
      	
              1-3

            	
              Currency
                and sum (say): twenty-two million five hundred thousand yuan only
                

            

    

    
      	
              1-4

            	
              Loan
                term: 

            

    

    
      	 	
              1)

            	
              the
                term of this Loan shall be as follows:

            

    

     

    
      	
              Lending

            	
              Maturity

            
	
              Date

            	
              Sum

            	
              Date

            	
              Sum

            
	
              May
                10, 2005

            	
              RMB
                22,500,000

            	
              May
                10, 2006

            	
              RMB
                22,500,000

            
	 	 	 	 
	 	 	 	 
	 	 	 	 

    

    (In
      case
      of insufficiency, additional table will be available and shall be part of the
      Contract)

    

    
      	 	
              2)

            	
              In
                case of inconsistency of the sum and date as to lending and maturity
                date
                as described herein and those in lending vouchers, the latter shall
                prevail. The lending vouchers shall be part of the Contract and have
                equal
                legal force with the Contract. 

            

    

    
      	 	
              3)

            	
              In
                case of foreign exchange loan hereunder, the Borrower shall return
                the
                principal and interests in the original currency.
                

            

    

    
      	
              1-5

            	
              Interest
                rate 

            

    

    The
      interest rate of the Loan in RMB shall be fixed according to the following
      first
      method:

    
      	 	
              1)

            	
              floating
                rate: 

            

    

    The
      interest rate shall be of annual rate: 7.533%, 35% floating upward (floating
      upward/downward) on the benchmark rate. The benchmark rate of a loan less than
      five years (included) shall be subject to the benchmark rate of RMB loan
      publicized by the People’s Bank of China in corresponding period; the benchmark
      rate of a loan more than five years shall be additional ___% based on benchmark
      rate of RMB loan publicized by the People’s Bank of China in corresponding
      period.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    The
      interest rate shall be adjusted in a period of
      three
      months.
      In case of the benchmark rate of RMB loan adjusted by the People’s Bank of
      China, the Lender shall, as of the corresponding lending date of the first
      month
      in the following period after adjustment, fix new lending rate according to
      the
      corresponding adjusted benchmark and the said calculation method, and the Lender
      will not be notified otherwise. If the adjustment date is the same with the
      lending date or the corresponding date of the first month in such period, new
      lending rate shall be fixed as of the adjustment date. In case of absence of
      corresponding date, the last day of the month shall apply. 

    
      	 	
              2)

            	
              Fixed
                rate: 

            

    

    The
      interest rate shall be of annual rate:____%, ___% floating upward (floating
      upward/downward) on the benchmark rate, up to the maturity date. The benchmark
      rate of a loan less than five years (included) shall be subject to the benchmark
      rate of RMB loan publicized by the People’s Bank of China in corresponding
      period; the benchmark rate of a loan more than five years shall be additional
      ___% based on benchmark rate of RMB loan publicized by the People’s Bank of
      China in corresponding period. 

    

    In
      case
      of foreign exchange loan, the interest rate shall be fixed according to the
      following __ method: 

    
      	 	
              a.

            	
              the
                rate comprised of ____ month(s) of _____ (LIBOR/HIBOR) and ____%
                of
                interest margin, floating _____ month(s). LIBOR/HIBOR is the London/Hong
                Kong inter-bank offered rate in corresponding period publicized by
                Reuters
                two working dates prior to the interest day.

            

    

    
      	 	
              b.

            	
              Annual
                rate: __%, up to the maturity date;

            

    

    
      	 	
              c.

            	
              Others:
                ________________________________________________________.
                

            

    

    

    
      	
              1-6

            	
              Interest
                Settlement 

            

    

    The
      interest of the Loan hereunder shall be settled on the quarterly
      (monthly/quarterly) basis on the 20th
      day of
      the last month in each quarter
      (quarter/month). The Borrower shall pay off the interests on the interest
      settlement day. If the last maturity day of the principal hereof is not the
      interest settlement day, the outstanding interests shall be settled together
      with the principal (daily rate = monthly rate/30). 

    

    Article
      2
      The
      Lender shall have the right not to grant the Loan hereunder until all of the
      following conditions are completed: 

    

    
      	
              1.

            	
              2-1
                The Borrower shall open a basic
                deposit account
                at the Lender; 

            

    

    2-2
      The
      Borrower shall, at the requirements of the Lender, provide relevant documents
      and materials and complete corresponding procedures; 

    2-3
      In
      case of foreign exchange loan hereunder, the Borrower shall go through all
      approvals, registrations and other legal procedures relating to the Loan
      according to pertinent provisions; 

    2-4
      In
      case of mortgage, pledge or guarantee concerning the Loan hereunder, relevant
      registration and/or insurance and other legal procedures have been completed
      according to the requirements of the Lender, and such guarantee and insurance
      shall be valid continually. In case of guarantee concerning the Loan hereunder,
      the guarantee contract has been concluded and is in force. 

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    Article
      3
      Rights
      and Obligations of the Lender 

    

    3-1
      The
      Lender shall have the right to know about such situations of the Borrower as
      production, operation, finance, storage and use of the Loan, and to require
      the
      Borrower to submit financial statements and other documents, materials and
      information on schedule. 

    3-2
      The
      Lender can stop granting the Loan or take back the Loan in advance if the Lender
      conducts behaviors or has circumstances which are sufficient to affect the
      safety of the Loan, including, but not limited to, those as describe in
      Paragraph 7, 8 and 10 of Article 4 hereof. 

    3-3
      The
      Lender can make direct direction from any account of the Borrower, if the Lender
      takes back according to the Contract or takes back in advance the principal,
      interests, penalty interests, compound interests and other sum payable by the
      Borrower. 

    3-4
      If
      the sum repaid by the Borrower is insufficient to discharge the sum payable
      hereunder, the Lender may choose to use such sum to repay the principal,
      interests, penalty interests, compound interests or other charges. 

    3-5
      The
      Lender may disclose in public the breaches of the Borrower, if the Borrower
      fails to perform the repayment obligation. 

    3-6
      The
      Lender shall grant the Loan to the Borrower in full amount on schedule according
      to the Contract. 

    

    Article
      4
      Rights
      and Obligations of the Borrower 

    

    4-1
      The
      Borrower shall have the right to obtain and use the Loan according to the
      Contract. 

    4-2
      The
      Borrower shall go through procedures for settlement and deposit relating to
      the
      Loan hereunder through the accounts as mentioned in Article 2 hereof.

    4-3
      In
      case of foreign exchange loan hereunder, the Borrower shall go through all
      approvals, registrations and other legal procedures relating to the Loan
      according to pertinent provisions.

    4-4
      The
      Borrower shall repay the principal and interests on schedule. In case of
      extension required, the Borrower shall submit a written application to the
      Lender 15 days in advance of the maturity date; an extension agreement may
      be
      made with approval of the Lender. 

    4-5
      The
      Borrower shall use the Loan subject to the purpose stipulated herein, and may
      not seize or misappropriate the Loan. 

    4-6
      The
      Borrower shall provide true, complete and valid financial statements or other
      relevant materials and information to the Lender on a monthly basis. The
      Borrower shall cooperate actively with the Lender in inspecting its production,
      operation, finance and use of the Loan hereunder. 

    4-7
      The
      Borrower shall send a prior notice to the Lender in writing if the Borrower
      conducts contract, lease, joint stock reconstruction, joint management, merger,
      acquirement, division, joint venture, asset transfer, application for business
      stoppage and rectification and other behavior which is sufficient to change
      the
      relationship of creditor's rights and debt hereunder or affect realization
      of
      the Lender’s creditor’s right. With the consent of the Lender, the Borrower
      shall ascertain the repayment liability or repay the debt hereunder in advance;
      otherwise, the Borrower may not conduct any behaviors hereinbefore.

    4-8
      The
      Borrower shall notify the Lender in writing immediately and carry through the
      preservation measures to creditor’s rights which are accepted by the Lender, if,
      except for those as mentioned in previous clause, the Borrower has any other
      circumstances which will have material adverse affections on its repayment
      obligation hereunder, such as production stoppage, business closure,
      registration cancellation, revocation of business license, or violation of
      laws
      or serious litigation or arbitration involved by the legal representative or
      main persons in charge, or severe difficulties in production and operation,
      deterioration of finance, etc.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    4-9
      The
      Borrower shall send a written notice to the Lender in advance and obtain the
      consent of the Lender if the Borrower provides guarantee in favor of other’s
      debt or mortgages or pawns its main properties to a third party, which may
      affect its capability of repayment of the Loan hereunder. 

    4-10
      The
      Borrower, as well as its investors, may not withdraw funds or hide properties
      to
      escape repayment debts to the Lender. 

    4-11
      The
      Borrower shall in time notify the Lender in writing of changed name, legal
      representative, domicile, business scope and others of the Borrower, if
      any.

    4-12
      The
      Borrower shall provide in time other guarantees accepted by the Lender if the
      guarantor as to the Loan hereunder stops production, closes business, cancels
      registration, is revoked business license, is insolvent and is in deficit,
      or
      loses partly or wholly the guarantee capability relating to the Loan hereunder,
      or the value guaranty, pawn or pledge as to the Loan hereunder reduces.

    4-13
      The
      Borrower shall be responsible for costs and expenses relating to the Contract
      and the guarantee hereunder, such as attorney fee, insurance premium, freight,
      evaluation fee, registration cost, storage fee, appraisal fee and notarization
      fee. 

    

    Article
      5
      Early
      Repayment 

    

    In
      case
      of early repayment, the Borrower shall obtain the consent of the Lender. If
      the
      Lender agrees the Borrower to repay the Loan in advance, the interests of the
      sum repaid early shall be calculated according to the following second
      method:

    

    
      	
              1)

            	
              to
                calculate the interests according to the loan term and the interest
                rate
                stipulated in the Contract; 

            

    

    
      	
              2)

            	
              to
                calculate the interests at the ___% floating upward the interest
                rate
                stipulated in the Contract according to the actual term of loan.
                

            

    

    

    Article
      6
      Liability for Breach of Agreement 

    

    6-1
      In
      case of losses to the Borrower due to failure of the Lender to grant the Loan
      to
      the Borrower in full amount according to the Contract, the Lender shall pay
      the
      penalty to the Borrower according to the overdue amount and delayed days.
      Calculation of the penalty shall be the same as that of interests of overdue
      lending in corresponding period. 

    6-2
      Where
      the Borrower fails to return the principal and interests on schedule stipulated
      in the Contract, the Lender shall calculate and charge penalty interests of
      such
      overdue repayment sum, at thirty
      per cent
      floating upward the interest rate stipulated in the Contract as of the overdue
      repayment day, until corresponding principal and interests have been paid off.
      If, during overdue repayment, in case of lending in RMB, the People’s Bank of
      China revises upward the benchmark of corresponding RMB loan, the penalty
      interest rate shall be revised correspondingly as of such revision day.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    6-3
      Where
      the Borrower fails to use the Loan according to the Contract, the Lender shall
      calculate and charge penalty interests of such sum in breach, at fifty
      per cent
      floating upward the interest rate stipulated in the Contract as of the breach
      day, until corresponding principal and interests have been paid off. If, during
      overdue repayment, in case of lending in RMB, the People’s Bank of China revises
      upward the benchmark of corresponding RMB loan, the penalty interest rate shall
      be revised correspondingly as of such revision day. 

    6-4
      The
      Lender shall calculate and charge compound interests according to the
      stipulations of the People’s Bank of China against the outstanding interests
      payable. 

    6-5
      Where
      the Borrower is in breach of the obligations hereunder, the Lender shall have
      the right to require the Borrower to correct such breach within a given period,
      to stop granting the Loan or take back the Loan granted in advance; furthermore,
      the Lender shall also have the right to declare the lending under other loan
      contracts by and between the Lender and the Borrower is mature immediately
      or to
      take other asset property measures. 

    6-6
      Where
      any of the guarantors of the Loan hereunder is in breach of the obligations
      stipulated in the guarantee contract, the Lender shall have the right to take
      measures against the Borrower, including stopping granting the Loan, taking
      back
      the Loan granted in advance or other asset property measures.

    6-7
      Where
      the Lender has to realize its creditor’s rights by means of litigation or
      arbitration due to breach of the Borrower, the Borrower shall be responsible
      for
      the attorney fee, traveling fee and other costs for realization incurred by
      the
      Lender thus. 

    

    Article
      7
      Guarantee of the Loan 

    

    The
      guarantee of the Loan hereunder shall be mortgage.
      The
      guarantee contract shall be concluded otherwise. In case of maximum deposit
      mortgage, the number of the guarantee contract is _______________. 

    

    Article
      8
      Settlement of Disputes 

    

    Any
      dispute arising from performance of the Contract may be settled through
      negotiation, or by means of following ____: 

    

    
      	
              1)

            	
              litigation.
                The dispute shall be governed by the People’s Court at the place where the
                Lender is located; 

            

    

    
      	
              2)

            	
              arbitration.
                The dispute shall be submitted to ____________________ (full name
                of the
                arbitration institution) for arbitration according to its rules.
                

            

    

    

    The
      Contract shall be performed continually during the period of litigation or
      arbitration, except for those in dispute. 

    

    Article
      9
      Miscellaneous

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    

    Article
      10
      Effectiveness 

    

    The
      Contract shall be in force after signed or sealed by the Parties hereto.

    

    Article
      11
      Copies

    

    The
      Contract shall be in three copies with equal force, one of which shall be kept
      by either party hereto and one submitted to the Administration for Industry
      and
      Commerce. 

    

    Article
      12
      Notice

    

    The
      Lender has reminded the Borrower to understand comprehensively and exactly
      the
      terms and conditions of the Contract and explained for corresponding terms
      and
      conditions hereof at the requirements of the Borrower. The Parties to the
      Contract have consistent understanding of the meanings of the Contract.

    

    

    

    The
      Borrower (signature and seal): Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd. 

    Legal
      representative or agent: Yu
      Zuosheng 

    

    The
      Lender (signature and seal): Agricultural
      Bank of China Tianjin Daqiuzhuang Sub-Branch

    Principal
      or agent: Fang
      Jiming

    

    Date
      of
      conclusion: May 10, 2005 

    Place
      of
      conclusion: Agricultural Bank of China Tianjin Daqiuzhuang
      Sub-Branch

    

    

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Mortgage
      Contract

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Agricultural
      Bank of China

    

    

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    

    

    Mortgage
      Contract

    

    No.
      (JJH)
      NYDZ (2005) 12902200500008263 

    

    Mortgagee
      (full name): Agricultural Bank of China Tianjin Daqiuzhuang Sub-Branch

    

    Mortgager
      (full name): 1) Tianjin Daqiuzhuang Metal Sheet Co., Ltd. 

    
      	 	
               2)
                _____________________________________

            

    

    
      	 	
               3)
                ______________________________________

            

    

    

    The
      Mortgager is willing to provide mortgage to the debt between Tianjin Daqiuzhuang
      Metal Sheet Co., Ltd. (hereinafter referred to as the Debtor) and the Mortgagee
      under the Loan Contract (hereinafter referred to as the Master Contract), No.
      JJHNYJZ
      (2005) 12901200500002894,
      to
      ensure that the Master Contract by and between the Debtor and the Mortgagee
      can
      be fulfilled in deed. The Contract is entered into through negotiation in
      accordance with pertinent laws and regulations of the State. 

    

    Article
      1
      Kind of
      Primary Creditor’s Rights Guaranteed and Sum of the Principal

    

    The
      primary creditor’s right guaranteed is of short-term
      working capital loan,
      covering twenty-two
      million five hundred thousand yuan
      of the
      principal. 

    

    Article
      2
      Scope of
      Mortgage 

    

    The
      scope
      of mortgage includes the principal, interests, penalty interests, compound
      interests, penalty and damages of the debt under the Master Contract, and
      litigation cost, attorney fee, guaranty disposal fee, transfer fee and other
      costs incurred by the Mortgagee for realization of its creditor’s right.

    

    Article
      3
      Guaranty

    

    3-1
      The
      Mortgager agrees to provide the following properties:
      machine and equipments
      (see the
      Guaranty List, No. 12902200500008263) as the guaranty hereunder. The said
      Guaranty List shall be part of the Contract. 

    3-2
      The
      said guaranties shall be evaluated temporarily as (say) thirty-three
      million three hundred and eighty-three thousand one hundred yuan
      only.
      The
      final value hereof shall be subject to the net income from actual disposal
      of
      the guaranties for realization of the mortgage right.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    Article
      4
      Mortgager’s Undertakings 

    

    4-1
      The
      Mortgager owns the title or disposal right of the guaranties sufficiently and
      beyond dispute. 

    4-2
      The
      guaranties may be circulated or transferred according to laws. 

    4-3
      The
      guaranties have not been sealed up, detained or remortgaged. 

    4-4
      The
      Mortgager does not hide those circumstances including default of taxes, project
      price and other sums under the guaranties, lease of the guaranties and others.
      

    4-5
      The
      Mortgager has obtained the consent of the co-owners of the guaranties concerning
      mortgage hereunder. 

    4-6
      There
      are not other facts which may affect the Mortgagee to realize its mortgage
      right. 

    

    Article
      5
      Effectiveness of Mortgage Right 

    

    The
      effectiveness of the mortgage right can cover appurtenant objects, secondary
      right, right of subrogation, combination substances, compositions, processed
      matters and accrued interests of the guaranties. 

    

    Article
      6
      Holding and Management of Guaranties 

    

    6-1
      The
      guaranties hereunder shall be held by the Mortgager, who shall have the
      obligation to manage properly the guaranties. The Mortgagee shall have the
      right
      to supervise and inspect management of the guaranties. 

    6-2
      Within the term of the Contract, the Mortgager may not present, transfer, sell,
      lease, remortgage the guaranties or dispose in other ways without written
      consent of the Mortgagee. Earnings from transfer, lease and sale of the
      guaranties with written consent of the Mortgagee shall be applied to repayment
      of the debt under the Master Contract guaranteed in advance, or to be drawn
      by
      the third party agreed by the Mortgager and the Mortgagee. 

    6-3
      If,
      within the term of the Contract, the guaranties are ruined, damaged or
      expropriated, the Mortgager shall take effective measures in time to prevent
      expansion of the losses and notify promptly the Mortgagee in writing. Insurance
      premiums, damages and compensations gained by the Mortgager thus shall be first
      used to repay the debt under the Master Contract. 

    6-4
      If,
      within the term of the Contract, the value of the guaranties is reduced, the
      Mortgagee shall have the right to require the Mortgager to restore the value
      of
      the guaranties or provide other guarantees accepted by the Mortgagee. Where
      the
      Mortgager refuses to restore the value or provide other guarantees, the
      Mortgagee shall have the right to declare that the debt under the Master
      Contract is mature in advance. In such case, the Mortgagee may require the
      Mortgager to repay the debt, or exercise the right of mortgage in advance.
      

    

    Article
      7
      Insurance of Guaranties 

    

    7-1
      The
      Mortgager shall at the requirements of the Mortgagee pay relevant insurances
      concerning the guaranties. The mortgagee shall be the first beneficiary of
      such
      insurances. 

    7-2
      The
      mortgager shall deliver the original of the insurance policies as to the
      guaranties to the Mortgagee. 

    7-3
      Within the term of the Contract, the Mortgager may not suspend or withdraw
      the
      insurances with any reason. In case of suspension, the Mortgagee shall have
      the
      right to go through insurance procedures on behalf at all cost of the Mortgager.
      The Mortgagee shall have the right to deduct the said costs directly from any
      account of the Mortgager. 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    7-4
      In
      case of accidents covered by insurance, the insurance compensations shall be
      first used to repay the debt under the Master Contract and relevant expenses.
      

    

    Article
      8
      Registration of Mortgage 

    

    The
      Mortgager shall within 5 days as of the date of the Contract go through the
      procedures for registration of mortgage with relevant registration authority
      and
      submit the Mortgagee the originals of the certificate of supplementary rights
      and the mortgage registration certification of the guaranties and other
      supplementary rights certificates. 

    

    Article
      9
      Realization of the Right of Mortgage 

    

    9-1
      If
      the Mortgagee has not be repaid after expiration of performance period of the
      debt under the Master Contract, the Mortgagee shall have the right to convert
      the guaranties into money or repay the debt with earnings from auction or sale
      of the guaranties. The said “expiration of period” includes the circumstance
      that the Mortgagee declares that the debt under the Master Contract is mature
      in
      advance in according to the state laws and regulations or the stipulations
      of
      the Master Contract. 

    9-2
      In
      case of more than two mortgagers hereunder, the Mortgagee shall have the right
      to dispose the guaranties of any or all mortgagers when exercising the right
      of
      mortgage. 

    

    Article
      10 Liability for Breach of Agreement 

    

    10-1
      After effectiveness of the Contract, both the Mortgagee and the Mortgager shall
      perform their obligations hereunder. Either party that fails to do so shall
      be
      liable for corresponding liabilities for breach of agreement and compensating
      the other for losses therefrom. 

    10-2
      The
      Mortgager shall compensate the Mortgagee for all losses caused by any of the
      following circumstances: 

    1)
      the
      Mortgager conceals facts that the guaranties have co-owners or are in dispute,
      sealed up, controlled, detained, remortgaged, leased or in default in taxes
      or
      project price, etc.; 

    2)
      the
      Mortgager disposes the guaranties without written consent of the Mortgagee;
      or

    3)
      the
      Mortgager conducts other behaviors which violate the stipulations herein or
      affect the Mortgagee to realize the right of mortgage. 

    

    Article
      11 Expense Sharing 

    

    The
      Mortgager shall be responsible for all costs and expenses incurred from
      registration, evaluation, insurance, appraisal, notarization or drawing of
      the
      guaranties hereunder. 

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    Article
      12 Settlement of Disputes 

    

    Any
      dispute arising from performance of the Contract may be settled through
      negotiation, or by the following first
      means:

    

    
      	
              1)

            	
              litigation.
                The dispute shall be governed by the People’s Court at the place where the
                Mortgagee is located; 

            

    

    
      	
              2)

            	
              arbitration.
                The dispute shall be submitted to ____________________ (full name
                of the
                arbitration institution) for arbitration according to its rules.
                

            

    

    

    The
      Contract shall be performed continually during the period of litigation or
      arbitration, except for those in dispute. 

    

    Article
      13 Miscellaneous

    

    13-1
      The
      Mortgager has received and read the Master Contract guaranteed. 

    

    

    

    

    Article
      14 Effectiveness 

    

    The
      Contract shall be in force after signed or sealed by the Parties hereto. In
      case
      of mortgage registration required by laws, the Contract shall become effective
      as of the date of registration. 

    

    Article
      15 The Contract shall be in three copies with equal force, one of which shall
      be
      kept by either party hereto and one submitted to the Administration for Industry
      and Commerce. 

    

    Article
      16 Notice 

    

    The
      Mortgagee has reminded the Mortgager to understand comprehensively and exactly
      the terms and conditions of the Contract and explained for corresponding terms
      and conditions hereof at the requirements of the Mortgager. The Parties to
      the
      Contract have consistent understanding of the meanings of the Contract.

    

    

    

    The
      Mortgagee (signature and seal): Agricultural
      Bank of China Tianjin Daqiuzhuang Sub-Branch 

    Principal
      or agent: Fang
      Jiming 

    

    The
      Mortgager (signature and seal):
      Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd.

    Legal
      representative or agent: Yu
      Zuosheng

    

    The
      Mortgager (signature and seal): 

    Legal
      representative or agent:

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    The
      Mortgager (signature and seal): 

    Legal
      representative or agent:

    

    

    

    Date
      of
      conclusion: May 10, 2005 

    Place
      of
      conclusion: Agricultural Bank of China Tianjin Daqiuzhuang
      Sub-Branch

     

    

     

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    

    

    

    

    

    

    

    

    

    

    Loan
      Contract

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Agricultural
      Bank of China

    

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    

    Loan
      Contract

    No.
      (JJH)NYJZ(2005) 12902200500004

    

    Borrower
      (full name): Tianjin Daqiuzhuang Metal Sheet Co., Ltd. 

    Lender
      (full name): Agricultural Bank of China Tianjin Daqiuzhuang
      Sub-Branch

    

    

    The
      Contract is entered into through negotiation in accordance with pertinent laws
      and regulations. 

    

    Article
      1
      Loan 

    

    1-1
      Kind:
      short-term working capital loan 

    1-2
      Purpose: refinancing 

    1-3
      Currency and sum (say): nine million yuan only 

    1-4
      Loan
      term: 

    1)
      the
      term of this Loan shall be as follows: 

     

    
      	
              Lending

            	
              Maturity

            
	
              Date

            	
              Sum

            	
              Date

            	
              Sum

            
	
              March
                14, 2005

            	
              RMB
                9,000,000

            	
              March
                14, 2006

            	
              RMB
                9,000,000

            
	 	 	 	 
	 	 	 	 
	 	 	 	 

    

    (in
      case
      of insufficiency, additional table will be available and shall be part of the
      Contract)

    

    2)
      In
      case of inconsistency of the sum and date as to lending and maturity date as
      described herein and those in lending vouchers, the latter shall prevail. The
      lending vouchers shall be part of the Contract and have equal legal force with
      the Contract. 

    3)
      In
      case of foreign exchange loan hereunder, the Borrower shall return the principal
      and interests in the original currency. 

    
      	
              1-5

            	
              Interest
                rate 

            

    

    The
      interest rate of the Loan in RMB shall be fixed according to the following
      first
      method:

    
      	 	
              1)

            	
              floating
                rate: 

            

    

    The
      interest rate shall be of annual rate: 7.533%,
      __%
      floating upward (floating upward/downward) on the benchmark rate. The benchmark
      rate of a loan less than five years (included) shall be subject to the benchmark
      rate of RMB loan publicized by the People’s Bank of China in corresponding
      period; the benchmark rate of a loan more than five years shall be additional
      ___% based on benchmark rate of RMB loan publicized by the People’s Bank of
      China in corresponding period. 

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    The
      interest rate shall be adjusted in a period of
      three
      months.
      In case of the benchmark rate of RMB loan adjusted by the People’s Bank of
      China, the Lender shall, as of the corresponding lending date of the first
      month
      in the following period after adjustment, fix new lending rate according to
      the
      corresponding adjusted benchmark and the said calculation method, and the Lender
      will not be notified otherwise. If the adjustment date is the same with the
      lending date or the corresponding date of the first month in such period, new
      lending rate shall be fixed as of the adjustment date. In case of absence of
      corresponding date, the last day of the month shall apply. 

    
      	 	
              2)

            	
              Fixed
                rate: 

            

    

    The
      interest rate shall be of annual rate:____%, ___% floating upward (floating
      upward/downward) on the benchmark rate, up to the maturity date. The benchmark
      rate of a loan less than five years (included) shall be subject to the benchmark
      rate of RMB loan publicized by the People’s Bank of China in corresponding
      period; the benchmark rate of a loan more than five years shall be additional
      ___% based on benchmark rate of RMB loan publicized by the People’s Bank of
      China in corresponding period. 

    

    In
      case
      of foreign exchange loan, the interest rate shall be fixed according to the
      following __ method: 

    
      	 	
              a)

            	
              the
                rate comprised of ____ month(s) of _____ (LIBOR/HIBOR) and ____%
                of
                interest margin, floating _____ month(s). LIBOR/HIBOR is the London/Hong
                Kong inter-bank offered rate in corresponding period publicized by
                Reuters
                two working dates prior to the interest day.

            

    

    
      	 	
              b)

            	
              Annual
                rate: __%, up to the maturity date;

            

    

    
      	 	
              c)

            	
              Others:
                ________________________________________________________.
                

            

    

    

    
      	
              1-6

            	
              Interest
                Settlement 

            

    

    The
      interest of the Loan hereunder shall be settled on the quarterly
      (monthly/quarterly) basis on the 20th
      day of
      the last month in each quarter
      (quarter/month). The Borrower shall pay off the interests on the interest
      settlement day. If the last maturity day of the principal hereof is not the
      interest settlement day, the outstanding interests shall be settled together
      with the principal (daily rate = monthly rate/30). 

    

    Article
      2
      The Lender shall have the right not to grant the Loan hereunder until all of
      the
      following conditions are completed: 

    

    2-1
      The
      Borrower shall open a
      basic
      deposit account
      at the
      Lender; 

    2-2
      The
      Borrower shall, at the requirements of the Lender, provide relevant documents
      and materials and complete corresponding procedures; 

    2-3
      In
      case of foreign exchange loan hereunder, the Borrower shall go through all
      approvals, registrations and other legal procedures relating to the Loan
      according to pertinent provisions; 

    2-4
      In
      case of mortgage, pledge or guarantee concerning the Loan hereunder, relevant
      registration and/or insurance and other legal procedures have been completed
      according to the requirements of the Lender, and such guarantee and insurance
      shall be valid continually. In case of guarantee concerning the Loan hereunder,
      the guarantee contract has been concluded and is in force. 

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    Article
      3
      Rights and Obligations of the Lender 

    

    3-1
      The
      Lender shall have the right to know about such situations of the Borrower as
      production, operation, finance, storage and use of the Loan, and to require
      the
      Borrower to submit financial statements and other documents, materials and
      information on schedule. 

    3-2
      The
      Lender can stop granting the Loan or take back the Loan in advance if the Lender
      conducts behaviors or has circumstances which are sufficient to affect the
      safety of the Loan, including, but not limited to, those as describe in
      Paragraph 7, 8 and 10 of Article 4 hereof. 

    3-3
      The
      Lender can make direct direction from any account of the Borrower, if the Lender
      takes back according to the Contract or takes back in advance the principal,
      interests, penalty interests, compound interests and other sum payable by the
      Borrower. 

    3-4
      If
      the sum repaid by the Borrower is insufficient to discharge the sum payable
      hereunder, the Lender may choose to use such sum to repay the principal,
      interests, penalty interests, compound interests or other charges. 

    3-5
      The
      Lender may disclose in public the breaches of the Borrower, if the Borrower
      fails to perform the repayment obligation. 

    3-6
      The
      Lender shall grant the Loan to the Borrower in full amount on schedule according
      to the Contract. 

    

    Article
      4
      Rights and Obligations of the Borrower 

    

    4-1
      The
      Borrower shall have the right to obtain and use the Loan according to the
      Contract. 

    4-2
      The
      Borrower shall go through procedures for settlement and deposit relating to
      the
      Loan hereunder through the accounts as mentioned in Article 2 hereof.

    4-3
      In
      case of foreign exchange loan hereunder, the Borrower shall go through all
      approvals, registrations and other legal procedures relating to the Loan
      according to pertinent provisions.

    4-4
      The
      Borrower shall repay the principal and interests on schedule. In case of
      extension required, the Borrower shall submit a written application to the
      Lender 15 days in advance of the maturity date; an extension agreement may
      be
      made with approval of the Lender. 

    4-5
      The
      Borrower shall use the Loan subject to the purpose stipulated herein, and may
      not seize or misappropriate the Loan. 

    4-6
      The
      Borrower shall provide true, complete and valid financial statements or other
      relevant materials and information to the Lender on a monthly basis. The
      Borrower shall cooperate actively with the Lender in inspecting its production,
      operation, finance and use of the Loan hereunder. 

    4-7
      The
      Borrower shall send a prior notice to the Lender in writing if the Borrower
      conducts contract, lease, joint stock reconstruction, joint management, merger,
      acquirement, division, joint venture, asset transfer, application for business
      stoppage and rectification and other behavior which is sufficient to change
      the
      relationship of creditor's rights and debt hereunder or affect realization
      of
      the Lender’s creditor’s right. With the consent of the Lender, the Borrower
      shall ascertain the repayment liability or repay the debt hereunder in advance;
      otherwise, the Borrower may not conduct any behaviors hereinbefore.

    4-8
      The
      Borrower shall notify the Lender in writing immediately and carry through the
      preservation measures to creditor’s rights which are accepted by the Lender, if,
      except for those as mentioned in previous clause, the Borrower has any other
      circumstances which will have material adverse affections on its repayment
      obligation hereunder, such as production stoppage, business closure,
      registration cancellation, revocation of business license, or violation of
      laws
      or serious litigation or arbitration involved by the legal representative or
      main persons in charge, or severe difficulties in production and operation,
      deterioration of finance, etc.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    4-9
      The
      Borrower shall send a written notice to the Lender in advance and obtain the
      consent of the Lender if the Borrower provides guarantee in favor of other’s
      debt or mortgages or pawns its main properties to a third party, which may
      affect its capability of repayment of the Loan hereunder. 

    4-10
      The
      Borrower, as well as its investors, may not withdraw funds or hide properties
      to
      escape repayment debts to the Lender. 

    4-11
      The
      Borrower shall in time notify the Lender in writing of changed name, legal
      representative, domicile, business scope and others of the Borrower, if
      any.

    4-12
      The
      Borrower shall provide in time other guarantees accepted by the Lender if the
      guarantor as to the Loan hereunder stops production, closes business, cancels
      registration, is revoked business license, is insolvent and is in deficit,
      or
      loses partly or wholly the guarantee capability relating to the Loan hereunder,
      or the value guaranty, pawn or pledge as to the Loan hereunder reduces.

    4-13
      The
      Borrower shall be responsible for costs and expenses relating to the Contract
      and the guarantee hereunder, such as attorney fee, insurance premium, freight,
      evaluation fee, registration cost, storage fee, appraisal fee and notarization
      fee. 

    

    Article
      5
      Early Repayment 

    

    In
      case
      of early repayment, the Borrower shall obtain the consent of the Lender. If
      the
      Lender agrees the Borrower to repay the Loan in advance, the interests of the
      sum repaid early shall be calculated according to the following second
      method:

    

    
      	
              1)

            	
              to
                calculate the interests according to the loan term and the interest
                rate
                stipulated in the Contract; 

            

    

    
      	
              2)

            	
              to
                calculate the interests at the ___% floating upward the interest
                rate
                stipulated in the Contract according to the actual term of loan.
                

            

    

    

    Article
      6
      Liability for Breach of Agreement 

    

    6-1
      In
      case of losses to the Borrower due to failure of the Lender to grant the Loan
      to
      the Borrower in full amount according to the Contract, the Lender shall pay
      the
      penalty to the Borrower according to the overdue amount and delayed days.
      Calculation of the penalty shall be the same as that of interests of overdue
      lending in corresponding period. 

    6-2
      Where
      the Borrower fails to return the principal and interests on schedule stipulated
      in the Contract, the Lender shall calculate and charge penalty interests of
      such
      overdue repayment sum, at thirty
      per cent
      floating upward the interest rate stipulated in the Contract as of the overdue
      repayment day, until corresponding principal and interests have been paid off.
      If, during overdue repayment, in case of lending in RMB, the People’s Bank of
      China revises upward the benchmark of corresponding RMB loan, the penalty
      interest rate shall be revised correspondingly as of such revision day.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    6-3
      Where
      the Borrower fails to use the Loan according to the Contract, the Lender shall
      calculate and charge penalty interests of such sum in breach, at fifty
      per cent
      floating upward the interest rate stipulated in the Contract as of the breach
      day, until corresponding principal and interests have been paid off. If, during
      overdue repayment, in case of lending in RMB, the People’s Bank of China revises
      upward the benchmark of corresponding RMB loan, the penalty interest rate shall
      be revised correspondingly as of such revision day. 

    6-4
      The
      Lender shall calculate and charge compound interests according to the
      stipulations of the People’s Bank of China against the outstanding interests
      payable. 

    6-5
      Where
      the Borrower is in breach of the obligations hereunder, the Lender shall have
      the right to require the Borrower to correct such breach within a given period,
      to stop granting the Loan or take back the Loan granted in advance; furthermore,
      the Lender shall also have the right to declare the lending under other loan
      contracts by and between the Lender and the Borrower is mature immediately
      or to
      take other asset property measures. 

    6-6
      Where
      any of the guarantors of the Loan hereunder is in breach of the obligations
      stipulated in the guarantee contract, the Lender shall have the right to take
      measures against the Borrower, including stopping granting the Loan, taking
      back
      the Loan granted in advance or other asset property measures.

    6-7
      Where
      the Lender has to realize its creditor’s rights by means of litigation or
      arbitration due to breach of the Borrower, the Borrower shall be responsible
      for
      the attorney fee, traveling fee and other costs for realization incurred by
      the
      Lender thus. 

    

    Article
      7
      Guarantee of the Loan 

    

    The
      guarantee of the Loan hereunder shall be mortgage.
      The
      guarantee contract shall be concluded otherwise. In case of maximum deposit
      mortgage, the number of the guarantee contract is _______________. 

    

    Article
      8
      Settlement of Disputes 

    

    Any
      dispute arising from performance of the Contract may be settled through
      negotiation, or by means of following ____: 

    

    
      	
              1)

            	
              litigation.
                The dispute shall be governed by the People’s Court at the place where the
                Lender is located; 

            

    

    
      	
              2)

            	
              arbitration.
                The dispute shall be submitted to ____________________ (full name
                of the
                arbitration institution) for arbitration according to its rules.
                

            

    

    

    The
      Contract shall be performed continually during the period of litigation or
      arbitration, except for those in dispute. 

    

    Article
      9
      Miscellaneous

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

    

    

    Article
      10 Effectiveness 

    

    The
      Contract shall be in force after signed or sealed by the Parties hereto.

    

    Article
      11 Copies 

    

    The
      Contract shall be in three copies with equal force, one of which shall be kept
      by either party hereto and one submitted to the Administration for Industry
      and
      Commerce. 

    

    Article
      12 Notice 

    

    The
      Lender has reminded the Borrower to understand comprehensively and exactly
      the
      terms and conditions of the Contract and explained for corresponding terms
      and
      conditions hereof at the requirements of the Borrower. The Parties to the
      Contract have consistent understanding of the meanings of the Contract.

    

    

    

    The
      Borrower (signature and seal): Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd. 

    Legal
      representative or agent:  

    

    The
      Lender (signature and seal): Agricultural
      Bank of China Tianjin Daqiuzhuang Sub-Branch

    Principal
      or agent:  

    

    Date
      of
      conclusion: the __ day of ____ 

    Place
      of
      conclusion: Agricultural Bank of China Tianjin Daqiuzhuang
      Sub-Branch

    

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

    

    

    

    

    

    

    

    Mortgage
      Contract

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Agricultural
      Bank of China

    

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    

    

    

    Mortgage
      Contract

    

    No.
      (JJH)
      NYDZ (2005) 12902200500004366 

    

    Mortgagee
      (full name): Agricultural Bank of China Tianjin Daqiuzhuang Sub-Branch

    

    Mortgager
      (full name): 1) Tianjin Daqiuzhuang Metal Sheet Co., Ltd. 

    
      	 	
               2)
                _____________________________________

            

    

    
      	 	
               3)
                ______________________________________

            

    

    

    The
      Mortgager is willing to provide mortgage to the debt between Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd. (hereinafter
      referred to as the Debtor) and the Mortgagee under the Loan
      Contract
      (hereinafter referred to as the Master Contract), No. JJHNYJZ
      (2005) 12101200500001710,
      to
      ensure that the Master Contract by and between the Debtor and the Mortgagee
      can
      be fulfilled in deed. The Contract is entered into through negotiation in
      accordance with pertinent laws and regulations of the State. 

    

    Article
      1
      Kind of Primary Creditor’s Rights Guaranteed and Sum of the
      Principal

    

    The
      primary creditor’s right guaranteed is of short-term
      working capital loan,
      covering nine
      million yuan
      of the
      principal. 

    

    Article
      2
      Scope of Mortgage 

    

    The
      scope
      of mortgage includes the principal, interests, penalty interests, compound
      interests, penalty and damages of the debt under the Master Contract, and
      litigation cost, attorney fee, guaranty disposal fee, transfer fee and other
      costs incurred by the Mortgagee for realization of its creditor’s right.

    

    Article
      3
      Guaranty 

    

    3-1
      The
      Mortgager agrees to provide the following properties:
      machine and equipments
      (see the
      Guaranty List, No. JJHNYDZ (2005)12902200500004363) as the guaranty hereunder.
      The said Guaranty List shall be part of the Contract. 

    3-2
      The
      said guaranties shall be evaluated temporarily as (say) twelve
      million nine hundred and twenty-one thousand two hundred yuan
      only.
      The
      final value hereof shall be subject to the net income from actual disposal
      of
      the guaranties for realization of the mortgage right.

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    Article
      4
      Mortgager’s Undertakings 

    

    4-1
      The
      Mortgager owns the title or disposal right of the guaranties sufficiently and
      beyond dispute. 

    4-2
      The
      guaranties may be circulated or transferred according to laws. 

    4-3
      The
      guaranties have not been sealed up, detained or remortgaged. 

    4-4
      The
      Mortgager does not hide those circumstances including default of taxes, project
      price and other sums under the guaranties, lease of the guaranties and others.
      

    4-5
      The
      Mortgager has obtained the consent of the co-owners of the guaranties concerning
      mortgage hereunder. 

    4-6
      There
      are not other facts which may affect the Mortgagee to realize its mortgage
      right. 

    

    Article
      5
      Effectiveness of Mortgage Right 

    

    The
      effectiveness of the mortgage right can cover appurtenant objects, secondary
      right, right of subrogation, combination substances, compositions, processed
      matters and accrued interests of the guaranties. 

    

    Article
      6
      Holding and Management of Guaranties 

    

    6-1
      The
      guaranties hereunder shall be held by the Mortgager, who shall have the
      obligation to manage properly the guaranties. The Mortgagee shall have the
      right
      to supervise and inspect management of the guaranties. 

    6-2
      Within the term of the Contract, the Mortgager may not present, transfer, sell,
      lease, remortgage the guaranties or dispose in other ways without written
      consent of the Mortgagee. Earnings from transfer, lease and sale of the
      guaranties with written consent of the Mortgagee shall be applied to repayment
      of the debt under the Master Contract guaranteed in advance, or to be drawn
      by
      the third party agreed by the Mortgager and the Mortgagee. 

    6-3
      If,
      within the term of the Contract, the guaranties are ruined, damaged or
      expropriated, the Mortgager shall take effective measures in time to prevent
      expansion of the losses and notify promptly the Mortgagee in writing. Insurance
      premiums, damages and compensations gained by the Mortgager thus shall be first
      used to repay the debt under the Master Contract. 

    6-4
      If,
      within the term of the Contract, the value of the guaranties is reduced, the
      Mortgagee shall have the right to require the Mortgager to restore the value
      of
      the guaranties or provide other guarantees accepted by the Mortgagee. Where
      the
      Mortgager refuses to restore the value or provide other guarantees, the
      Mortgagee shall have the right to declare that the debt under the Master
      Contract is mature in advance. In such case, the Mortgagee may require the
      Mortgager to repay the debt, or exercise the right of mortgage in advance.
      

    

    Article
      7
      Insurance of Guaranties 

    

    7-1
      The
      Mortgager shall at the requirements of the Mortgagee pay relevant insurances
      concerning the guaranties. The mortgagee shall be the first beneficiary of
      such
      insurances. 

    7-2
      The
      mortgager shall deliver the original of the insurance policies as to the
      guaranties to the Mortgagee. 

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    7-3
      Within the term of the Contract, the Mortgager may not suspend or withdraw
      the
      insurances with any reason. In case of suspension, the Mortgagee shall have
      the
      right to go through insurance procedures on behalf at all cost of the Mortgager.
      The Mortgagee shall have the right to deduct the said costs directly from any
      account of the Mortgager. 

    7-4
      In
      case of accidents covered by insurance, the insurance compensations shall be
      first used to repay the debt under the Master Contract and relevant expenses.
      

    

    Article
      8
      Registration of Mortgage 

    

    The
      Mortgager shall within 5 days as of the date of the Contract go through the
      procedures for registration of mortgage with relevant registration authority
      and
      submit the Mortgagee the originals of the certificate of supplementary rights
      and the mortgage registration certification of the guaranties and other
      supplementary rights certificates. 

    

    Article
      9
      Realization of the Right of Mortgage 

    

    9-1
      If
      the Mortgagee has not be repaid after expiration of performance period of the
      debt under the Master Contract, the Mortgagee shall have the right to convert
      the guaranties into money or repay the debt with earnings from auction or sale
      of the guaranties. The said “expiration of period” includes the circumstance
      that the Mortgagee declares that the debt under the Master Contract is mature
      in
      advance in according to the state laws and regulations or the stipulations
      of
      the Master Contract. 

    9-2
      In
      case of more than two mortgagers hereunder, the Mortgagee shall have the right
      to dispose the guaranties of any or all mortgagers when exercising the right
      of
      mortgage. 

    

    Article
      10 Liability for Breach of Agreement 

    

    10-1
      After effectiveness of the Contract, both the Mortgagee and the Mortgager shall
      perform their obligations hereunder. Either party that fails to do so shall
      be
      liable for corresponding liabilities for breach of agreement and compensating
      the other for losses therefrom. 

    10-2
      The
      Mortgager shall compensate the Mortgagee for all losses caused by any of the
      following circumstances: 

    1)
      the
      Mortgager conceals facts that the guaranties have co-owners or are in dispute,
      sealed up, controlled, detained, remortgaged, leased or in default in taxes
      or
      project price, etc.; 

    2)
      the
      Mortgager disposes the guaranties without written consent of the Mortgagee;
      or

    3)
      the
      Mortgager conducts other behaviors which violate the stipulations herein or
      affect the Mortgagee to realize the right of mortgage. 

    

    Article
      11 Expense Sharing 

    

    The
      Mortgager shall be responsible for all costs and expenses incurred from
      registration, evaluation, insurance, appraisal, notarization or drawing of
      the
      guaranties hereunder. 

    

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    Article
      12 Settlement of Disputes 

    

    Any
      dispute arising from performance of the Contract may be settled through
      negotiation, or by the following first
      means:

    

    
      	
              3)

            	
              litigation.
                The dispute shall be governed by the People’s Court at the place where the
                Mortgagee is located; 

            

    

    
      	
              4)

            	
              arbitration.
                The dispute shall be submitted to ____________________ (full name
                of the
                arbitration institution) for arbitration according to its rules.
                

            

    

    

    The
      Contract shall be performed continually during the period of litigation or
      arbitration, except for those in dispute. 

    

    Article
      13 Miscellaneous

    

    13-1
      The
      Mortgager has received and read the Master Contract guaranteed. 

    

    

    

    

    Article
      14 Effectiveness 

    

    The
      Contract shall be in force after signed or sealed by the Parties hereto. In
      case
      of mortgage registration required by laws, the Contract shall become effective
      as of the date of registration. 

    

    Article
      15 The Contract shall be in three copies with equal force, one of which shall
      be
      kept by either party hereto and one submitted to the Administration for Industry
      and Commerce. 

    

    Article
      16 Notice 

    

    The
      Mortgagee has reminded the Mortgager to understand comprehensively and exactly
      the terms and conditions of the Contract and explained for corresponding terms
      and conditions hereof at the requirements of the Mortgager. The Parties to
      the
      Contract have consistent understanding of the meanings of the Contract.

    

    

    

    The
      Mortgagee (signature and seal): Agricultural
      Bank of China Tianjin Daqiuzhuang Sub-Branch 

    Principal
      or agent:  

    

    The
      Mortgager (signature and seal):
      Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd.

    Legal
      representative or agent: Yu
      Zuosheng

    

    The
      Mortgager (signature and seal): 

    Legal
      representative or agent:

    

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    The
      Mortgager (signature and seal): 

    Legal
      representative or agent:

    

    

    

    Date
      of
      conclusion: March 14, 2005 

    Place
      of
      conclusion: Agricultural Bank of China Tianjin Daqiuzhuang
      Sub-Branch

     

    

    

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    

     

    

    Loan
      Contract

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Agricultural
      Bank of China

    

    

    

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    

    

    Loan
      Contract

    No.
      (JJH)NYJZ(___) 12101200500006651

    

    Borrower
      (full name): Tianjin Daqiuzhuang Metal Sheet Co., Ltd. 

    Lender
      (full name): Agricultural Bank of China Tianjin Jinghai Sub-Branch

    

    

    The
      Contract is entered into through negotiation in accordance with pertinent laws
      and regulations. 

    

    Article
      1
      Loan 

    

    1-1
      Kind:
      short-term working capital loan 

    1-2
      Purpose: refinancing 

    1-3
      Currency and sum (say): twenty million yuan only 

    1-4
      Loan
      term: 

    1)
      the
      term of this Loan shall be as follows: 

     

    
      	
              Lending

            	
              Maturity

            
	
              Date

            	
              Sum

            	
              Date

            	
              Sum

            
	
              November
                3, 2005

            	
              RMB
                10,000,000

            	
              October
                28, 2006

            	
              RMB
                10,000,000

            
	
              November
                3, 2005

            	
              RMB
                10,000,000

            	
              November
                3, 2006

            	
              RMB
                10,000,000

            
	 	 	 	 
	 	 	 	 

    

    (In
      case
      of insufficiency, additional table will be available and shall be part of the
      Contract)

    

    2)
      In
      case of inconsistency of the sum and date as to lending and maturity date as
      described herein and those in lending vouchers, the latter shall prevail. The
      lending vouchers shall be part of the Contract and have equal legal force with
      the Contract. 

    3)
      In
      case of foreign exchange loan hereunder, the Borrower shall return the principal
      and interests in the original currency. 

    
      	
              1-7

            	
              Interest
                rate 

            

    

    The
      interest rate of the Loan in RMB shall be fixed according to the following
      first
      method:

    
      	 	
              1)

            	
              floating
                rate: 

            

    

    The
      interest rate shall be of annual rate: 6.975%,
      25%
      floating upward (floating upward/downward) on the benchmark rate. The benchmark
      rate of a loan less than five years (included) shall be subject to the benchmark
      rate of RMB loan publicized by the People’s Bank of China in corresponding
      period; the benchmark rate of a loan more than five years shall be additional
      ___% based on benchmark rate of RMB loan publicized by the People’s Bank of
      China in corresponding period.

    

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    The
      interest rate shall be adjusted in a period of
      three
      months.
      In case of the benchmark rate of RMB loan adjusted by the People’s Bank of
      China, the Lender shall, as of the corresponding lending date of the first
      month
      in the following period after adjustment, fix new lending rate according to
      the
      corresponding adjusted benchmark and the said calculation method, and the Lender
      will not be notified otherwise. If the adjustment date is the same with the
      lending date or the corresponding date of the first month in such period, new
      lending rate shall be fixed as of the adjustment date. In case of absence of
      corresponding date, the last day of the month shall apply. 

    
      	 	
              2)

            	
              Fixed
                rate: 

            

    

    The
      interest rate shall be of annual rate:____%, ___% floating upward (floating
      upward/downward) on the benchmark rate, up to the maturity date. The benchmark
      rate of a loan less than five years (included) shall be subject to the benchmark
      rate of RMB loan publicized by the People’s Bank of China in corresponding
      period; the benchmark rate of a loan more than five years shall be additional
      ___% based on benchmark rate of RMB loan publicized by the People’s Bank of
      China in corresponding period. 

    

    In
      case
      of foreign exchange loan, the interest rate shall be fixed according to the
      following __ method: 

    
      	 	
              a.

            	
              the
                rate comprised of ____ month(s) of _____ (LIBOR/HIBOR) and ____%
                of
                interest margin, floating _____ month(s). LIBOR/HIBOR is the London/Hong
                Kong inter-bank offered rate in corresponding period publicized by
                Reuters
                two working dates prior to the interest day.

            

    

    
      	 	
              b.

            	
              Annual
                rate: __%, up to the maturity date;

            

    

    
      	 	
              c.

            	
              Others:
                ________________________________________________________.
                

            

    

    

    
      	
              1-8

            	
              Interest
                Settlement 

            

    

    The
      interest of the Loan hereunder shall be settled on the quarterly
      (monthly/quarterly) basis on the 20th
      day of
      the last month in each quarter
      (quarter/month). The Borrower shall pay off the interests on the interest
      settlement day. If the last maturity day of the principal hereof is not the
      interest settlement day, the outstanding interests shall be settled together
      with the principal (daily rate = monthly rate/30). 

    

    Article
      2
      The Lender shall have the right not to grant the Loan hereunder until all of
      the
      following conditions are completed: 

    

    2-1
      The
      Borrower shall open a
      basic
      account
      at the
      Lender; 

    2-2
      The
      Borrower shall, at the requirements of the Lender, provide relevant documents
      and materials and complete corresponding procedures; 

    2-3
      In
      case of foreign exchange loan hereunder, the Borrower shall go through all
      approvals, registrations and other legal procedures relating to the Loan
      according to pertinent provisions; 

    2-4
      In
      case of mortgage, pledge or guarantee concerning the Loan hereunder, relevant
      registration and/or insurance and other legal procedures have been completed
      according to the requirements of the Lender, and such guarantee and insurance
      shall be valid continually. In case of guarantee concerning the Loan hereunder,
      the guarantee contract has been concluded and is in force. 

    

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    Article
      3
      Rights and Obligations of the Lender 

    

    3-1
      The
      Lender shall have the right to know about such situations of the Borrower as
      production, operation, finance, storage and use of the Loan, and to require
      the
      Borrower to submit financial statements and other documents, materials and
      information on schedule. 

    3-2
      The
      Lender can stop granting the Loan or take back the Loan in advance if the Lender
      conducts behaviors or has circumstances which are sufficient to affect the
      safety of the Loan, including, but not limited to, those as describe in
      Paragraph 7, 8 and 10 of Article 4 hereof. 

    3-3
      The
      Lender can make direct direction from any account of the Borrower, if the Lender
      takes back according to the Contract or takes back in advance the principal,
      interests, penalty interests, compound interests and other sum payable by the
      Borrower. 

    3-4
      If
      the sum repaid by the Borrower is insufficient to discharge the sum payable
      hereunder, the Lender may choose to use such sum to repay the principal,
      interests, penalty interests, compound interests or other charges. 

    3-5
      The
      Lender may disclose in public the breaches of the Borrower, if the Borrower
      fails to perform the repayment obligation. 

    3-6
      The
      Lender shall grant the Loan to the Borrower in full amount on schedule according
      to the Contract. 

    

    Article
      4
      Rights and Obligations of the Borrower 

    

    4-1
      The
      Borrower shall have the right to obtain and use the Loan according to the
      Contract. 

    4-2
      The
      Borrower shall go through procedures for settlement and deposit relating to
      the
      Loan hereunder through the accounts as mentioned in Article 2 hereof.

    4-3
      In
      case of foreign exchange loan hereunder, the Borrower shall go through all
      approvals, registrations and other legal procedures relating to the Loan
      according to pertinent provisions.

    4-4
      The
      Borrower shall repay the principal and interests on schedule. In case of
      extension required, the Borrower shall submit a written application to the
      Lender 15 days in advance of the maturity date; an extension agreement may
      be
      made with approval of the Lender. 

    4-5
      The
      Borrower shall use the Loan subject to the purpose stipulated herein, and may
      not seize or misappropriate the Loan. 

    4-6
      The
      Borrower shall provide true, complete and valid financial statements or other
      relevant materials and information to the Lender on a monthly basis. The
      Borrower shall cooperate actively with the Lender in inspecting its production,
      operation, finance and use of the Loan hereunder. 

    4-7
      The
      Borrower shall send a prior notice to the Lender in writing if the Borrower
      conducts contract, lease, joint stock reconstruction, joint management, merger,
      acquirement, division, joint venture, asset transfer, application for business
      stoppage and rectification and other behavior which is sufficient to change
      the
      relationship of creditor's rights and debt hereunder or affect realization
      of
      the Lender’s creditor’s right. With the consent of the Lender, the Borrower
      shall ascertain the repayment liability or repay the debt hereunder in advance;
      otherwise, the Borrower may not conduct any behaviors hereinbefore.

    4-8
      The
      Borrower shall notify the Lender in writing immediately and carry through the
      preservation measures to creditor’s rights which are accepted by the Lender, if,
      except for those as mentioned in previous clause, the Borrower has any other
      circumstances which will have material adverse affections on its repayment
      obligation hereunder, such as production stoppage, business closure,
      registration cancellation, revocation of business license, or violation of
      laws
      or serious litigation or arbitration involved by the legal representative or
      main persons in charge, or severe difficulties in production and operation,
      deterioration of finance, etc.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    4-9
      The
      Borrower shall send a written notice to the Lender in advance and obtain the
      consent of the Lender if the Borrower provides guarantee in favor of other’s
      debt or mortgages or pawns its main properties to a third party, which may
      affect its capability of repayment of the Loan hereunder. 

    4-10
      The
      Borrower, as well as its investors, may not withdraw funds or hide properties
      to
      escape repayment debts to the Lender. 

    4-11
      The
      Borrower shall in time notify the Lender in writing of changed name, legal
      representative, domicile, business scope and others of the Borrower, if
      any.

    4-12
      The
      Borrower shall provide in time other guarantees accepted by the Lender if the
      guarantor as to the Loan hereunder stops production, closes business, cancels
      registration, is revoked business license, is insolvent and is in deficit,
      or
      loses partly or wholly the guarantee capability relating to the Loan hereunder,
      or the value guaranty, pawn or pledge as to the Loan hereunder reduces.

    4-13
      The
      Borrower shall be responsible for costs and expenses relating to the Contract
      and the guarantee hereunder, such as attorney fee, insurance premium, freight,
      evaluation fee, registration cost, storage fee, appraisal fee and notarization
      fee. 

    

    Article
      5
      Early Repayment 

    

    In
      case
      of early repayment, the Borrower shall obtain the consent of the Lender. If
      the
      Lender agrees the Borrower to repay the Loan in advance, the interests of the
      sum repaid early shall be calculated according to the following second
      method:

    

    
      	
              1)

            	
              to
                calculate the interests according to the loan term and the interest
                rate
                stipulated in the Contract; 

            

    

    
      	
              2)

            	
              to
                calculate the interests at the ___% floating upward the interest
                rate
                stipulated in the Contract according to the actual term of loan.
                

            

    

    

    Article
      6
      Liability for Breach of Agreement 

    

    6-1
      In
      case of losses to the Borrower due to failure of the Lender to grant the Loan
      to
      the Borrower in full amount according to the Contract, the Lender shall pay
      the
      penalty to the Borrower according to the overdue amount and delayed days.
      Calculation of the penalty shall be the same as that of interests of overdue
      lending in corresponding period. 

    6-2
      Where
      the Borrower fails to return the principal and interests on schedule stipulated
      in the Contract, the Lender shall calculate and charge penalty interests of
      such
      overdue repayment sum, at thirty
      per cent
      floating upward the interest rate stipulated in the Contract as of the overdue
      repayment day, until corresponding principal and interests have been paid off.
      If, during overdue repayment, in case of lending in RMB, the People’s Bank of
      China revises upward the benchmark of corresponding RMB loan, the penalty
      interest rate shall be revised correspondingly as of such revision day.

    6-3
      Where
      the Borrower fails to use the Loan according to the Contract, the Lender shall
      calculate and charge penalty interests of such sum in breach, at fifty
      per cent
      floating upward the interest rate stipulated in the Contract as of the breach
      day, until corresponding principal and interests have been paid off. If, during
      overdue repayment, in case of lending in RMB, the People’s Bank of China revises
      upward the benchmark of corresponding RMB loan, the penalty interest rate shall
      be revised correspondingly as of such revision day. 

    6-4
      The
      Lender shall calculate and charge compound interests according to the
      stipulations of the People’s Bank of China against the outstanding interests
      payable. 

    6-5
      Where
      the Borrower is in breach of the obligations hereunder, the Lender shall have
      the right to require the Borrower to correct such breach within a given period,
      to stop granting the Loan or take back the Loan granted in advance; furthermore,
      the Lender shall also have the right to declare the lending under other loan
      contracts by and between the Lender and the Borrower is mature immediately
      or to
      take other asset property measures. 

    6-6
      Where
      any of the guarantors of the Loan hereunder is in breach of the obligations
      stipulated in the guarantee contract, the Lender shall have the right to take
      measures against the Borrower, including stopping granting the Loan, taking
      back
      the Loan granted in advance or other asset property measures.

    6-7
      Where
      the Lender has to realize its creditor’s rights by means of litigation or
      arbitration due to breach of the Borrower, the Borrower shall be responsible
      for
      the attorney fee, traveling fee and other costs for realization incurred by
      the
      Lender thus. 

    

    Article
      7
      Guarantee of the Loan 

    

    The
      guarantee of the Loan hereunder shall be mortgage.
      The
      guarantee contract shall be concluded otherwise. In case of maximum deposit
      mortgage, the number of the guarantee contract is _______________. 

    

    Article
      8
      Settlement of Disputes 

    

    Any
      dispute arising from performance of the Contract may be settled through
      negotiation, or by means of following ____: 

    

    
      	
              1)

            	
              litigation.
                The dispute shall be governed by the People’s Court at the place where the
                Lender is located; 

            

    

    
      	
              2)

            	
              arbitration.
                The dispute shall be submitted to ____________________ (full name
                of the
                arbitration institution) for arbitration according to its rules.
                

            

    

    

    The
      Contract shall be performed continually during the period of litigation or
      arbitration, except for those in dispute. 

    

    Article
      9
      Miscellaneous

    

    

    

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    

    Article
      10 Effectiveness 

    

    The
      Contract shall be in force after signed or sealed by the Parties hereto.

    

    Article
      11 Copies 

    

    The
      Contract shall be in three copies with equal force, one of which shall be kept
      by either party hereto and one submitted to the Administration for Industry
      and
      Commerce. 

    

    Article
      12 Notice 

    

    The
      Lender has reminded the Borrower to understand comprehensively and exactly
      the
      terms and conditions of the Contract and explained for corresponding terms
      and
      conditions hereof at the requirements of the Borrower. The Parties to the
      Contract have consistent understanding of the meanings of the Contract.

    

    

    

    The
      Borrower (signature and seal): Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd. 

    Legal
      representative or agent: Yu
      Zuosheng

    

    The
      Lender (signature and seal): Agricultural
      Bank of China Tianjin Jinghai Sub-Branch

    Principal
      or agent: Liu
      Tiegang 

    

    Date
      of
      conclusion: November 3, 2005 

    Place
      of
      conclusion: Agricultural Bank of China Tianjin Jinghai Sub-Branch

    

    

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    

     

    

    

    Mortgage
      Contract

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Agricultural
      Bank of China

    

    

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    

    

    

    

    Mortgage
      Contract

    

    No.
      (JJH)
      NYDZ (2005) 12902200500016328 

    

    Mortgagee
      (full name): Agricultural Bank of China Tianjin Jinghai Sub-Branch 

    

    Mortgager
      (full name): 1) Tianjin Daqiuzhuang Metal Sheet Co., Ltd. 

    
      	 	
               2)
                _____________________________________

            

    

    
      	 	
               3)
                ______________________________________

            

    

    

    The
      Mortgager is willing to provide mortgage to the debt between Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd. (hereinafter
      referred to as the Debtor) and the Mortgagee under the Loan
      Contract
      (hereinafter referred to as the Master Contract), No. JJHNYJZ
      (2005) 12101200500006651,
      to
      ensure that the Master Contract by and between the Debtor and the Mortgagee
      can
      be fulfilled in deed. The Contract is entered into through negotiation in
      accordance with pertinent laws and regulations of the State. 

    

    Article
      1
      Kind of Primary Creditor’s Rights Guaranteed and Sum of the
      Principal

    

    The
      primary creditor’s right guaranteed is of short-term
      working capital loan,
      covering twenty
      million yuan
      of the
      principal. 

    

    Article
      2
      Scope of Mortgage 

    

    The
      scope
      of mortgage includes the principal, interests, penalty interests, compound
      interests, penalty and damages of the debt under the Master Contract, and
      litigation cost, attorney fee, guaranty disposal fee, transfer fee and other
      costs incurred by the Mortgagee for realization of its creditor’s right.

    

    Article
      3
      Guaranty 

    

    3-1
      The
      Mortgager agrees to provide the following properties:
      machine and equipments
      (see the
      Guaranty List, No. 12902200500016328) as the guaranty hereunder. The said
      Guaranty List shall be part of the Contract. 

    3-2
      The
      said guaranties shall be evaluated temporarily as (say) twenty-nine
      million three hundred and seventy thousand eight hundred and fifty yuan
      only.
      The
      final value hereof shall be subject to the net income from actual disposal
      of
      the guaranties for realization of the mortgage right.

    

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    Article
      4
      Mortgager’s Undertakings 

    

    4-1
      The
      Mortgager owns the title or disposal right of the guaranties sufficiently and
      beyond dispute. 

    4-2
      The
      guaranties may be circulated or transferred according to laws. 

    4-3
      The
      guaranties have not been sealed up, detained or remortgaged. 

    4-4
      The
      Mortgager does not hide those circumstances including default of taxes, project
      price and other sums under the guaranties, lease of the guaranties and others.
      

    4-5
      The
      Mortgager has obtained the consent of the co-owners of the guaranties concerning
      mortgage hereunder. 

    4-6
      There
      are not other facts which may affect the Mortgagee to realize its mortgage
      right. 

    

    Article
      5
      Effectiveness of Mortgage Right 

    

    The
      effectiveness of the mortgage right can cover appurtenant objects, secondary
      right, right of subrogation, combination substances, compositions, processed
      matters and accrued interests of the guaranties. 

    

    Article
      6
      Holding and Management of Guaranties 

    

    6-1
      The
      guaranties hereunder shall be held by the Mortgager, who shall have the
      obligation to manage properly the guaranties. The Mortgagee shall have the
      right
      to supervise and inspect management of the guaranties. 

    6-2
      Within the term of the Contract, the Mortgager may not present, transfer, sell,
      lease, remortgage the guaranties or dispose in other ways without written
      consent of the Mortgagee. Earnings from transfer, lease and sale of the
      guaranties with written consent of the Mortgagee shall be applied to repayment
      of the debt under the Master Contract guaranteed in advance, or to be drawn
      by
      the third party agreed by the Mortgager and the Mortgagee. 

    6-3
      If,
      within the term of the Contract, the guaranties are ruined, damaged or
      expropriated, the Mortgager shall take effective measures in time to prevent
      expansion of the losses and notify promptly the Mortgagee in writing. Insurance
      premiums, damages and compensations gained by the Mortgager thus shall be first
      used to repay the debt under the Master Contract. 

    6-4
      If,
      within the term of the Contract, the value of the guaranties is reduced, the
      Mortgagee shall have the right to require the Mortgager to restore the value
      of
      the guaranties or provide other guarantees accepted by the Mortgagee. Where
      the
      Mortgager refuses to restore the value or provide other guarantees, the
      Mortgagee shall have the right to declare that the debt under the Master
      Contract is mature in advance. In such case, the Mortgagee may require the
      Mortgager to repay the debt, or exercise the right of mortgage in advance.
      

    

    Article
      7
      Insurance of Guaranties 

    

    7-1
      The
      Mortgager shall at the requirements of the Mortgagee pay relevant insurances
      concerning the guaranties. The mortgagee shall be the first beneficiary of
      such
      insurances. 

    7-2
      The
      mortgager shall deliver the original of the insurance policies as to the
      guaranties to the Mortgagee. 

    7-3
      Within the term of the Contract, the Mortgager may not suspend or withdraw
      the
      insurances with any reason. In case of suspension, the Mortgagee shall have
      the
      right to go through insurance procedures on behalf at all cost of the Mortgager.
      The Mortgagee shall have the right to deduct the said costs directly from any
      account of the Mortgager.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    7-4
      In
      case of accidents covered by insurance, the insurance compensations shall be
      first used to repay the debt under the Master Contract and relevant expenses.
      

    

    Article
      8
      Registration of Mortgage 

    

    The
      Mortgager shall within 5 days as of the date of the Contract go through the
      procedures for registration of mortgage with relevant registration authority
      and
      submit the Mortgagee the originals of the certificate of supplementary rights
      and the mortgage registration certification of the guaranties and other
      supplementary rights certificates. 

    

    Article
      9
      Realization of the Right of Mortgage 

    

    9-1
      If
      the Mortgagee has not be repaid after expiration of performance period of the
      debt under the Master Contract, the Mortgagee shall have the right to convert
      the guaranties into money or repay the debt with earnings from auction or sale
      of the guaranties. The said “expiration of period” includes the circumstance
      that the Mortgagee declares that the debt under the Master Contract is mature
      in
      advance in according to the state laws and regulations or the stipulations
      of
      the Master Contract. 

    9-2
      In
      case of more than two mortgagers hereunder, the Mortgagee shall have the right
      to dispose the guaranties of any or all mortgagers when exercising the right
      of
      mortgage. 

    

    Article
      10 Liability for Breach of Agreement 

    

    10-1
      After effectiveness of the Contract, both the Mortgagee and the Mortgager shall
      perform their obligations hereunder. Either party that fails to do so shall
      be
      liable for corresponding liabilities for breach of agreement and compensating
      the other for losses therefrom. 

    10-2
      The
      Mortgager shall compensate the Mortgagee for all losses caused by any of the
      following circumstances: 

    1)
      the
      Mortgager conceals facts that the guaranties have co-owners or are in dispute,
      sealed up, controlled, detained, remortgaged, leased or in default in taxes
      or
      project price, etc.; 

    2)
      the
      Mortgager disposes the guaranties without written consent of the Mortgagee;
      or

    3)
      the
      Mortgager conducts other behaviors which violate the stipulations herein or
      affect the Mortgagee to realize the right of mortgage. 

    

    Article
      11 Expense Sharing 

    

    The
      Mortgager shall be responsible for all costs and expenses incurred from
      registration, evaluation, insurance, appraisal, notarization or drawing of
      the
      guaranties hereunder. 

    

    Article
      12 Settlement of Disputes 

    

    Any
      dispute arising from performance of the Contract may be settled through
      negotiation, or by the following first
      means:

    

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    
      	
              5)

            	
              litigation.
                The dispute shall be governed by the People’s Court at the place where the
                Mortgagee is located; 

            

    

    
      	
              6)

            	
              arbitration.
                The dispute shall be submitted to ____________________ (full name
                of the
                arbitration institution) for arbitration according to its rules.
                

            

    

    

    The
      Contract shall be performed continually during the period of litigation or
      arbitration, except for those in dispute. 

    

    Article
      13 Miscellaneous

    

    13-1
      The
      Mortgager has received and read the Master Contract guaranteed. 

    

    

    

    

    Article
      14 Effectiveness 

    

    The
      Contract shall be in force after signed or sealed by the Parties hereto. In
      case
      of mortgage registration required by laws, the Contract shall become effective
      as of the date of registration. 

    

    Article
      15 The Contract shall be in three copies with equal force, one of which shall
      be
      kept by either party hereto and one submitted to the Administration for Industry
      and Commerce. 

    

    Article
      16 Notice 

    

    The
      Mortgagee has reminded the Mortgager to understand comprehensively and exactly
      the terms and conditions of the Contract and explained for corresponding terms
      and conditions hereof at the requirements of the Mortgager. The Parties to
      the
      Contract have consistent understanding of the meanings of the Contract.

    

    

    

    The
      Mortgagee (signature and seal): Agricultural
      Bank of China Tianjin Jinghai Sub-Branch 

    Principal
      or agent: Liu
      Tiegang 

    

    The
      Mortgager (signature and seal):
      Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd.

    Legal
      representative or agent: Yu
      Zuosheng

    

    The
      Mortgager (signature and seal): 

    Legal
      representative or agent:

    

    The
      Mortgager (signature and seal): 

    Legal
      representative or agent:

    

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    

    

    Date
      of
      conclusion: November 3, 2005 

    Place
      of
      conclusion: Agricultural Bank of China Tianjin Jinghai Sub-Branch

    

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    

    

    

    

    

    

    

    

    

    Guarantee
      Contract

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Agricultural
      Bank of China 

    

    

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    

    

    Guarantee
      Contract

    

    No.
      (JJH)NYBZ( ) 12901200500001286

    

    Creditor
      (full name): Agricultural Bank of China Tianjin Jinghai Sub-Branch 

    Guarantor
      (full name): 1) Tianjin
      Baorunda Profiled Bar Co., Ltd. 

    
      	 	
                
                2) ________________________________

            

    

    
      	 	
                
                3)_________________________________

            

    

    

    The
      Guarantor is willing to guarantee the debt between Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd. (hereinafter
      referred to as the Debtor) and the Creditor under the Loan
      Contract
      (hereinafter referred to as the Master Contract), No. JJHNYJZ
      (2005) 12101200500006651,
      to
      ensure that the Master Contract by and between the Debtor and the Creditor
      can
      be fulfilled in deed. The Contract is entered into through negotiation in
      accordance with pertinent laws and regulations of the State. 

    

    Article
      1
      Kind of Primary Creditor’s Rights Guaranteed and Sum of the
      Principal

    

    The
      primary creditor’s right guaranteed is of short-term
      working capital loan,
      covering twenty
      million yuan
      of the
      principal. 

    

    Article
      2
      Scope of Guarantee 

    

    The
      scope
      of guarantee includes the principal, interests, penalty interests, compound
      interests, penalty and damages of the debt under the Master Contract, and
      litigation cost, attorney fee, guaranty disposal fee, transfer fee and other
      costs incurred by the Creditor for realization of its creditor’s right.

    

    Article
      3
      Mode of Guarantee 

    

    The
      guarantee mode hereunder shall be of joint and several liability. In case of
      several guarantors hereunder, each guarantor shall assume the joint and several
      liability to the Creditor. 

    

    Article
      4
      Term of Guarantee 

    

    4-1
      The
      guarantee term of the Guarantor shall be two years as of the date when the
      period of debt performance of the Debtor expires according to the stipulations
      of the Master Contract. 

    4-2
      The
      guarantee term under the Banker’s Acceptance Bill, issue of bond exemption and
      guarantee letter shall be two years as of the date when the Creditor pays the
      sum in advance. 

    4-3
      The
      guarantee term under commercial draft discount shall be two years as of the
      maturity date of the discount note. 

    4-4
      Where
      the Creditor and the Debtor negotiate an extension agreement concerning the
      term
      of debt performance under the Master Contract, the Guarantor shall continue
      to
      assume the guarantee liability. The guarantee term shall be two years as of
      the
      date when the period of debt performance agreed in the extension agreement
      expires. 

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    4-5
      Where
      the Creditor declares that the debt under the Master Contract is mature in
      advance due to occurrence circumstances stipulated in laws, regulations or
      the
      Master Contract, the guarantee term shall be two years as of the prior maturity
      date of the debt under the Master Contract, which is determined by the Creditor.
      

    

    Article
      5
      Guarantor’s Undertakings 

    

    5-1
      The
      Guarantor shall provide true, complete and effective financial statements and
      other relevant materials and information. 

    5-2
      The
      Guarantor will be willing to fulfill its liability of guarantee if the Debtor
      fails to discharge the debt according to the Master Contract. 

    5-3
      The
      Creditor shall have the right to deduct corresponding sum from any account
      of
      the Guarantor if the Guarantor fails to fulfill its guarantee liability
      according to the Contract. 

    5-4
      In
      case of any of the following circumstances, the Guarantor shall within 5 days
      thereafter notify the Creditor in writing: 

    1)
      the
      Guarantor changes administrative relationship or senior management, amends
      its
      articles of association and adjusts its organization structure; 

    2)
      the
      Guarantor stops production, closes business, cancels registration or is revoked
      business license; 

    3)
      the
      Guarantor’s finance deteriorates, or production and operation are in severe
      difficulty or the Guarantor is involved in significant litigation or
      arbitration; 

    4)
      the
      Guarantor changes name, domicile, legal representative, contact method and
      so
      on; or 

    5)
      the
      Guarantor has other circumstances which will not help the Creditor realize
      its
      creditor’s right. 

    5-5
      The
      Guarantor shall notify the Creditor in writing 15 days in advance and obtain
      written consent of the Creditor if the Guarantor intends to conduct the
      following behaviors: 

    1)
      the
      Guarantor changes capital structure or operation system, including, but not
      limited to, contract, lease, joint stock reconstruction, joint management,
      merger, acquirement, division, joint venture, asset transfer and application
      for
      business stoppage and rectification, dissolution or bankruptcy; 

    2)
      the
      Guarantor provides guarantee to the debt of a third person or mortgage, pawn
      or
      guarantee its main assets for debt of it or a third person, which may affect
      it
      performance of the guarantee liability hereunder. 

    5-6
      Where
      the Debtor guarantees with substantial objects, the Guarantor will perform
      the
      guarantee liability as to all debts guaranteed, prior to guarantee of
      substantial objects. 

    

    Article
      6
      Liability for Breach of Agreement 

    

    After
      effectiveness of the Contract, both the Creditor and the Guarantor shall perform
      their obligations hereunder. Either party that fails to do so shall be liable
      for corresponding liabilities for breach of agreement and compensating the
      other
      for losses therefrom.

    

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    Article
      7
      Settlement of Disputes 

    

    Any
      dispute arising from performance of the Contract may be settled through
      negotiation, or by the following first
      means:

    

    
      	
              7)

            	
              litigation.
                The dispute shall be governed by the People’s Court at the place where the
                Creditor is located; 

            

    

    
      	
              8)

            	
              arbitration.
                The dispute shall be submitted to ____________________ (full name
                of the
                arbitration institution) for arbitration according to its rules.
                

            

    

    

    The
      Contract shall be performed continually during the period of litigation or
      arbitration, except for those in dispute. 

    

    Article
      8
      Miscellaneous

    

    8-1
      The
      Guarantor has received and read the Master Contract guaranteed. 

    

    

    

    

    Article
      9
      Effectiveness 

    

    The
      Contract shall be in force after signed or sealed by the Parties hereto.

    

    Article
      10 The Contract shall be in two copies with equal force, one of which shall
      be
      kept by either party hereto. 

    

    Article
      11 Notice 

    

    The
      Creditor has reminded the Guarantor to understand comprehensively and exactly
      the terms and conditions of the Contract and explained for corresponding terms
      and conditions hereof at the requirements of the Guarantor. The Parties to
      the
      Contract have consistent understanding of the meanings of the Contract.

    

    

    

    The
      Creditor (signature and seal): Agricultural
      Bank of China Tianjin Jinghai Sub-Branch 

    Principal
      or agent: Liu
      Tiegang 

    

    The
      Guarantor (signature and seal):
      Tianjin
      Baorunda Profiled Bar Co., Ltd.

    Legal
      representative or agent: Wu
      Congfeng

    

    The
      Guarantor (signature and seal): 

    Legal
      representative or agent:

    

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    The
      Guarantor (signature and seal): 

    Legal
      representative or agent:

    

    

    

    Date
      of
      conclusion: November 3, 2005 

    Place
      of
      conclusion: Agricultural Bank of China Tianjin Jinghai Sub-Branch

    

    

    

    

    

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

    

    

    Loan
      Contract

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Agricultural
      Bank of China

    

    

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    

    Loan
      Contract

    No.
      (JJH)NYJZ(___) 12101200500006418

    

    Borrower
      (full name): Tianjin Daqiuzhuang Metal Sheet Co., Ltd. 

    Lender
      (full name): Agricultural Bank of China Tianjin Jinghai Sub-Branch

    

    

    The
      Contract is entered into through negotiation in accordance with pertinent laws
      and regulations. 

    

    Article
      1
      Loan

    

    1-1
      Kind:
      short-term working capital loan 

    1-2
      Purpose: refinancing 

    1-3
      Currency and sum (say): fourteen million seven hundred thousand yuan only

    1-4
      Loan
      term: 

    1)
      the
      term of this Loan shall be as follows: 

     

    
      	
              Lending

            	
              Maturity

            
	
              Date

            	
              Sum

            	
              Date

            	
              Sum

            
	
              October
                18, 2005

            	
              RMB
                14,700,000

            	
              October
                18, 2006

            	
              RMB
                14,700,000

            
	 	 	 	 
	 	 	 	 
	 	 	 	 

    

    (in
      case
      of insufficiency, additional table will be available and shall be part of the
      Contract)

    

    2)
      In
      case of inconsistency of the sum and date as to lending and maturity as
      described herein and those in lending vouchers, the latter shall prevail. The
      lending vouchers shall be part of the Contract and have equal legal force with
      the Contract. 

    3)
      In
      case of foreign exchange loan hereunder, the Borrower shall return the principal
      and interests in the original currency. 

    
      	
              1-5

            	
              Interest
                rate 

            

    

    The
      interest rate of the Loan in RMB shall be fixed according to the following
      first
      method:

    
      	 	
              1)

            	
              floating
                rate: 

            

    

    The
      interest rate shall be of annual rate: 6.975%,
      25%
      floating upward (floating upward/downward) on the benchmark rate. The benchmark
      rate of a loan less than five years (included) shall be subject to the benchmark
      rate of RMB loan publicized by the People’s Bank of China in corresponding
      period; the benchmark rate of a loan more than five years shall be additional
      ___% based on benchmark rate of RMB loan publicized by the People’s Bank of
      China in corresponding period.

    

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    The
      interest rate shall be adjusted in a period of
      three
      months.
      In case of the benchmark rate of RMB loan adjusted by the People’s Bank of
      China, the Lender shall, as of the corresponding lending date of the first
      month
      in the following period after adjustment, fix new lending rate according to
      the
      corresponding adjusted benchmark and the said calculation method, and the Lender
      will not be notified otherwise. If the adjustment date is the same with the
      lending date or the corresponding date of the first month in such period, new
      lending rate shall be fixed as of the adjustment date. In case of absence of
      corresponding date, the last day of the month shall apply. 

    
      	 	
              2)

            	
              Fixed
                rate: 

            

    

    The
      interest rate shall be of annual rate:____%, ___% floating upward (floating
      upward/downward) on the benchmark rate, up to the maturity date. The benchmark
      rate of a loan less than five years (included) shall be subject to the benchmark
      rate of RMB loan publicized by the People’s Bank of China in corresponding
      period; the benchmark rate of a loan more than five years shall be additional
      ___% based on benchmark rate of RMB loan publicized by the People’s Bank of
      China in corresponding period. 

    

    In
      case
      of foreign exchange loan, the interest rate shall be fixed according to the
      following __ method: 

    
      	 	
              a.

            	
              the
                rate comprised of ____ month(s) of _____ (LIBOR/HIBOR) and ____%
                of
                interest margin, floating _____ month(s). LIBOR/HIBOR is the London/Hong
                Kong inter-bank offered rate in corresponding period publicized by
                Reuters
                two working dates prior to the interest day.

            

    

    
      	 	
              b.

            	
              Annual
                rate: __%, up to the maturity date;

            

    

    
      	 	
              c.

            	
              Others:
                ________________________________________________________.
                

            

    

    

    
      	
              1-6

            	
              Interest
                Settlement 

            

    

    The
      interest of the Loan hereunder shall be settled on the quarterly
      (monthly/quarterly) basis on the 20th
      day of
      the last month in each quarter
      (quarter/month). The Borrower shall pay off the interests on the interest
      settlement day. If the last maturity day of the principal hereof is not the
      interest settlement day, the outstanding interests shall be settled together
      with the principal (daily rate = monthly rate/30). 

    

    Article
      2
      The Lender shall have the right not to grant the Loan hereunder until all of
      the
      following conditions are completed: 

    

    2-1
      The
      Borrower shall open a
      basic
      account
      at the
      Lender; 

    2-2
      The
      Borrower shall, at the requirements of the Lender, provide relevant documents
      and materials and complete corresponding procedures; 

    2-3
      In
      case of foreign exchange loan hereunder, the Borrower shall go through all
      approvals, registrations and other legal procedures relating to the Loan
      according to pertinent provisions; 

    2-4
      In
      case of mortgage, pledge or guarantee concerning the Loan hereunder, relevant
      registration and/or insurance and other legal procedures have been completed
      according to the requirements of the Lender, and such guarantee and insurance
      shall be valid continually. In case of assurance guarantee concerning the Loan
      hereunder, the assurance contract has been concluded and is in force.

    

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

    Article
      3
      Rights and Obligations of the Lender 

    

    3-1
      The
      Lender shall have the right to know about such situations of the Borrower as
      production, operation, finance, storage and use of the Loan, and to require
      the
      Borrower to submit financial statements and other documents, materials and
      information on schedule. 

    3-2
      The
      Lender can stop granting the Loan or take back the Loan in advance if the Lender
      conducts behaviors or has circumstances which are sufficient to affect the
      safety of the Loan, including, but not limited to, those as describe in
      Paragraph 7, 8 and 10 of Article 4 hereof. 

    3-3
      The
      Lender can make direct direction from any account of the Borrower, if the Lender
      takes back according to the Contract or takes back in advance the principal,
      interests, penalty interests, compound interests and other sum payable by the
      Borrower. 

    3-4
      If
      the sum repaid by the Borrower is insufficient to discharge the sum payable
      hereunder, the Lender may choose to use such sum to repay the principal,
      interests, penalty interests, compound interests or other charges. 

    3-5
      The
      Lender may disclose in public the breaches of the Borrower, if the Borrower
      fails to perform the repayment obligation. 

    3-6
      The
      Lender shall grant the Loan to the Borrower in full amount on schedule according
      to the Contract. 

    

    Article
      4
      Rights and Obligations of the Borrower 

    

    4-1
      The
      Borrower shall have the right to obtain and use the Loan according to the
      Contract. 

    4-2
      The
      Borrower shall go through procedures for settlement and deposit relating to
      the
      Loan hereunder through the accounts as mentioned in Article 2 hereof.

    4-3
      In
      case of foreign exchange loan hereunder, the Borrower shall go through all
      approvals, registrations and other legal procedures relating to the Loan
      according to pertinent provisions.

    4-4
      The
      Borrower shall repay the principal and interests on schedule. In case of
      extension required, the Borrower shall submit a written application to the
      Lender 15 days in advance of the maturity date; an extension agreement may
      be
      made with approval of the Lender. 

    4-5
      The
      Borrower shall use the Loan subject to the purpose stipulated herein, and may
      not seize or misappropriate the Loan. 

    4-6
      The
      Borrower shall provide true, complete and valid financial statements or other
      relevant materials and information to the Lender on a monthly basis. The
      Borrower shall cooperate actively with the Lender in inspecting its production,
      operation, finance and use of the Loan hereunder. 

    4-7
      The
      Borrower shall send a prior notice to the Lender in writing if the Borrower
      conducts contract, lease, joint stock reconstruction, joint management, merger,
      acquirement, division, joint venture, asset transfer, application for business
      stoppage and rectification and other behavior which is sufficient to change
      the
      relationship of creditor's rights and debt hereunder or affect realization
      of
      the Lender’s creditor’s right. With the consent of the Lender, the Borrower
      shall ascertain the repayment liability or repay the debt hereunder in advance;
      otherwise, the Borrower may not conduct any behaviors hereinbefore.

    4-8
      The
      Borrower shall notify the Lender in writing immediately and carry through the
      preservation measures to creditor’s rights which are accepted by the Lender, if,
      except for those as mentioned in previous clause, the Borrower has any other
      circumstances which will have material adverse affections on its repayment
      obligation hereunder, such as production stoppage, business closure,
      registration cancellation, revocation of business license, or violation of
      laws
      or serious litigation or arbitration involved by the legal representative or
      main persons in charge, or severe difficulties in production and operation,
      deterioration of finance, etc.

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

    4-9
      The
      Borrower shall send a written notice to the Lender in advance and obtain the
      consent of the Lender if the Borrower provides guarantee in favor of other’s
      debt or mortgages or pawns its main properties to a third party, which may
      affect its capability of repayment of the Loan hereunder. 

    4-10
      The
      Borrower, as well as its investors, may not withdraw funds or hide properties
      to
      escape repayment debts to the Lender. 

    4-11
      The
      Borrower shall in time notify the Lender in writing of changed name, legal
      representative, domicile, business scope and others of the Borrower, if
      any.

    4-12
      The
      Borrower shall provide in time other guarantees accepted by the Lender if the
      guarantor as to the Loan hereunder stops production, closes business, cancels
      registration, is revoked business license, is insolvent and is in deficit,
      or
      loses partly or wholly the guarantee capability relating to the Loan hereunder,
      or the value guaranty, pawn or pledge as to the Loan hereunder reduces.

    4-13
      The
      Borrower shall be responsible for costs and expenses relating to the Contract
      and the guarantee hereunder, such as attorney fee, insurance premium, freight,
      evaluation fee, registration cost, storage fee, appraisal fee and notarization
      fee. 

    

    Article
      5
      Early Repayment 

    

    In
      case
      of early repayment, the Borrower shall obtain the consent of the Lender. If
      the
      Lender agrees the Borrower to repay the Loan in advance, the interests of the
      sum repaid early shall be calculated according to the following second
      method:

    

    
      	
              1)

            	
              to
                calculate the interests according to the loan term and the interest
                rate
                stipulated in the Contract; 

            

    

    
      	
              2)

            	
              to
                calculate the interests at the ___% floating upward the interest
                rate
                stipulated in the Contract according to the actual term of loan.
                

            

    

    

    Article
      6
      Liability for Breach of Agreement 

    

    6-1
      In
      case of losses to the Borrower due to failure of the Lender to grant the Loan
      to
      the Borrower in full amount according to the Contract, the Lender shall pay
      the
      penalty to the Borrower according to the overdue amount and delayed days.
      Calculation of the penalty shall be the same as that of interests of overdue
      lending in corresponding period. 

    6-2
      Where
      the Borrower fails to return the principal and interests on schedule stipulated
      in the Contract, the Lender shall calculate and charge penalty interests of
      such
      overdue repayment sum, at thirty
      per cent
      floating upward the interest rate stipulated in the Contract as of the overdue
      repayment day, until corresponding principal and interests have been paid off.
      If, during overdue repayment, in case of lending in RMB, the People’s Bank of
      China revises upward the benchmark of corresponding RMB loan, the penalty
      interest rate shall be revised correspondingly as of such revision day.

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

    6-3
      Where
      the Borrower fails to use the Loan according to the Contract, the Lender shall
      calculate and charge penalty interests of such sum in breach, at fifty
      per cent
      floating upward the interest rate stipulated in the Contract as of the breach
      day, until corresponding principal and interests have been paid off. If, during
      overdue repayment, in case of lending in RMB, the People’s Bank of China revises
      upward the benchmark of corresponding RMB loan, the penalty interest rate shall
      be revised correspondingly as of such revision day. 

    6-4
      The
      Lender shall calculate and charge compound interests according to the
      stipulations of the People’s Bank of China against the outstanding interests
      payable. 

    6-5
      Where
      the Borrower is in breach of the obligations hereunder, the Lender shall have
      the right to require the Borrower to correct such breach within a given period,
      to stop granting the Loan or take back the Loan granted in advance; furthermore,
      the Lender shall also have the right to declare the lending under other loan
      contracts by and between the Lender and the Borrower is mature immediately
      or to
      take other asset property measures. 

    6-6
      Where
      any of the guarantors of the Loan hereunder is in breach of the obligations
      stipulated in the guarantee contract, the Lender shall have the right to take
      measures against the Borrower, including stopping granting the Loan, taking
      back
      the Loan granted in advance or other asset property measures.

    6-7
      Where
      the Lender has to realize its creditor’s rights by means of litigation or
      arbitration due to breach of the Borrower, the Borrower shall be responsible
      for
      the attorney fee, traveling fee and other costs for realization incurred by
      the
      Lender thus. 

    

    Article
      7
      Guarantee of the Loan 

    

    The
      guarantee of the Loan hereunder shall be mortgage.
      The
      guarantee contract shall be concluded otherwise. In case of maximum deposit
      mortgage, the number of the guarantee contract is No. JJHNYGD
      12106200500000372.
      

    

    Article
      8
      Settlement of Disputes 

    

    Any
      dispute arising from performance of the Contract may be settled through
      negotiation, or by the following first means: 

    

    1)
      litigation. The dispute shall be governed by the People’s Court at the place
      where the Lender is located; 

    2)
      arbitration. The dispute shall be submitted to ____________________ (full name
      of the arbitration institution) for arbitration according to its rules.

    

    The
      Contract shall be performed continually during the period of litigation or
      arbitration, except for those in dispute. 

    

    Article
      9
      Miscellaneous

    

    

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

    

    

    Article
      10 Effectiveness 

    

    The
      Contract shall be in force after signed or sealed by the Parties hereto.

    

    Article
      11 Copies 

    

    The
      Contract shall be in three copies with equal force, one of which shall be kept
      by either party hereto and one submitted to the Land Administrative Bureau.
      

    

    Article
      12 Notice 

    

    The
      Lender has reminded the Borrower to understand comprehensively and exactly
      the
      terms and conditions of the Contract and explained for corresponding terms
      and
      conditions hereof at the requirements of the Borrower. The Parties to the
      Contract have consistent understanding of the meanings of the Contract.

    

    

    

    The
      Borrower (signature and seal): Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd. 

    Legal
      representative or agent: Yu
      Zuosheng

    

    The
      Lender (signature and seal): Agricultural
      Bank of China Tianjin Jinghai Sub-Branch

    Principal
      or agent: Liu
      Tiegang 

    

    Date
      of
      conclusion: November 3, 2005 

    Place
      of
      conclusion: Agricultural Bank of China Tianjin Jinghai Sub-Branch

    

    

    

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

    

    

    

    

    

    

    

    Maximum
      Deposit Mortgage Contract

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Agricultural
      Bank of China

    

    

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

    Maximum
      Deposit Mortgage Contract

    No.
      (JJH)NYGDZ( ) 12906200500000372

    

    

    Mortgagee
      (full name): Agricultural Bank of China Tianjin Jinghai Sub-Branch 

    Debtor
      (full name): Tianjin Daqiuzhuang Metal Sheet Co., Ltd.

    Mortgager
      (full name): 1) Tianjin Daqiuzhuang Metal Sheet Co., Ltd. 

    
      	 	
               2)
                _____________________________________

            

    

     

    

    Whereas
      the Mortgager and the Mortgagee have concluded a series of contract for
      creditor’s right and debt (hereinafter referred to as the “Master Contract”)
      according to the term and maximum amount stipulated in Article 1 hereof, the
      Mortgager is willing to provide mortgage to the debt between the Debtor and
      the
      Mortgagee according to the said Master Contract. The Contract is entered into
      through negotiation in accordance with pertinent laws and regulations of the
      State. 

    

    Article
      1
      Primary Creditor’s Right Guaranteed and Maximum Sum 

    

    
      	
              1-1

            	
              The
                Mortgager is willing to guarantee maximum balance of the debt incurred
                by
                the Debtor for dealing with all agreed businesses at the Mortgagee
                from
                October
                18, 2005
                to
                October
                18, 2007,
                converting into twenty
                million seven hundred thousand yuan only.
                Foreign exchange dealings, if any, shall be converted at the offer
                price
                on the date of dealing. Dealings in the said period will be mature
                before
                October
                18, 2008.
                The said dealings include as follows (subject to items marked “√”)
                

            

    

    o
      RMB/foreign exchange loan o L/C issuance finance o export packing finance √
      banker’s/commercial acceptance bill discount □ import bill advance □ banker’s
      letter of guarantee □ acceptance of banker’s bill □export bill purchase

    Others:
      _________________________________________________________

    
      	
              1-2

            	
              Within
                the period and to the extent of maximum balance stipulated herein,
                the
                Debtor may apply for using the said bank credits circularly. The
                commencement date, maturity date, interest rate and sum of dealings
                shall
                be subject to the loan voucher of the Master Contract or relevant
                creditor’s right documents. 

            

    

    
      	
              1-3

            	
              Within
                the period and to the extent of maximum balance stipulated herein,
                the
                Mortgagee needs not to go through guarantee procedures case by case
                when
                granting the loan stipulated herein and providing other bank credits.
                

            

    

    
      	
              1-4

            	
              There
                is no limitation on currency of dealings incurred during the period
                and
                maximum balance stipulated herein. The Mortgager shall be responsible
                for
                guarantee of the debt in original currency.

            

    

     

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

    Article
      2
      Scope of Mortgage 

    

    The
      scope
      of mortgage includes the principal, interests, penalty interests, compound
      interests, penalty and damages of the debt under the Master Contract, and
      litigation cost, attorney fee, guaranty disposal fee, transfer fee and other
      costs incurred by the Mortgagee for realization of its creditor’s right.

    

    The
      Mortgager is willing to guarantee the sum which actually exceeds the remaining
      of maximum sum due to fluctuation of exchange change. 

    

    Article
      3
      Guaranty 

    

    3-1
      The
      Mortgager agrees to provide the following properties:
      the
      land-use right and attachment buildings overground
      (see the
      Guaranty List, No. 12906200500000372) as the guaranty hereunder. The said
      Guaranty List shall be part of the Contract. 

    3-2
      The
      said guaranties shall be evaluated temporarily as (say) thirty-two
      million eight hundred and eighteen thousand eight hundred yuan
      only.
      The
      final value hereof shall be subject to the net income from actual disposal
      of
      the guaranties for realization of the mortgage right.

    

    Article
      4
      Mortgager’s Undertakings 

    

    4-1
      The
      Mortgager owns the title or disposal right of the guaranties sufficiently and
      beyond dispute. 

    4-2
      The
      guaranties may be circulated or transferred according to laws. 

    4-3
      The
      guaranties have not been sealed up, detained or remortgaged. 

    4-4
      The
      Mortgager does not hide those circumstances including default of taxes, project
      price and other sums under the guaranties, lease of the guaranties and others.
      

    4-5
      The
      Mortgager has obtained the consent of the co-owners of the guaranties concerning
      mortgage hereunder. 

    4-6
      There
      are not other facts which may affect the Mortgagee to realize its mortgage
      right. 

    

    Article
      5
      Effectiveness of Mortgage Right 

    

    The
      effectiveness of the mortgage right can cover appurtenant objects, secondary
      right, right of subrogation, combination substances, compositions, processed
      matters and accrued interests of the guaranties. 

    

    Article
      6
      Holding and Management of Guaranties 

    

    6-1
      The
      guaranties hereunder shall be held by the Mortgager, who shall have the
      obligation to manage properly the guaranties. The Mortgagee shall have the
      right
      to supervise and inspect management of the guaranties. 

    6-2
      Within the term of the Contract, the Mortgager may not present, transfer, sell,
      lease, remortgage the guaranties or dispose in other ways without written
      consent of the Mortgagee. Earnings from transfer, lease and sale of the
      guaranties with written consent of the Mortgagee shall be applied to repayment
      of the debt under the Master Contract guaranteed in advance, or to be drawn
      by
      the third party agreed by the Mortgager and the Mortgagee. 

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

    6-3
      If,
      within the term of the Contract, the guaranties are ruined, damaged or
      expropriated, the Mortgager shall take effective measures in time to prevent
      expansion of the losses and notify promptly the Mortgagee in writing. Insurance
      premiums, damages and compensations gained by the Mortgager thus shall be first
      used to repay the debt under the Master Contract. 

    6-4
      If,
      within the term of the Contract, the value of the guaranties is reduced, the
      Mortgagee shall have the right to require the Mortgager to restore the value
      of
      the guaranties or provide other guarantees accepted by the Mortgagee. Where
      the
      Mortgager refuses to restore the value or provide other guarantees, the
      Mortgagee shall have the right to declare that the debt under the Master
      Contract is mature in advance. In such case, the Mortgagee may require the
      Mortgager to repay the debt, or exercise the right of mortgage in advance.
      

    

    Article
      7
      Insurance of Guaranties 

    

    7-1
      The
      Mortgager shall at the requirements of the Mortgagee pay relevant insurances
      concerning the guaranties. The mortgagee shall be the first beneficiary of
      such
      insurances. 

    7-2
      The
      mortgager shall deliver the original of the insurance policies as to the
      guaranties to the Mortgagee. 

    7-3
      Within the term of the Contract, the Mortgager may not suspend or withdraw
      the
      insurances with any reason. In case of suspension, the Mortgagee shall have
      the
      right to go through insurance procedures on behalf at all cost of the Mortgager.
      The Mortgagee shall have the right to deduct the said costs directly from any
      account of the Mortgager. 

    7-4
      In
      case of accidents covered by insurance, the insurance compensations shall be
      first used to repay the debt under the Master Contract and relevant expenses.
      

    

    Article
      8
      Registration of Mortgage 

    

    The
      Mortgager shall within 5 days as of the date of the Contract go through the
      procedures for registration of mortgage with relevant registration authority
      and
      submit the Mortgagee the originals of the certificate of supplementary rights
      and the mortgage registration certification of the guaranties and other
      supplementary rights certificates. 

    

    Article
      9
      Realization of the Right of Mortgage 

    

    9-1
      The
      Mortgagee shall have the right to declare that the debt guaranteed herein is
      mature in advance and to exercise the right to mortgage according to laws.
      

    If
      the
      Mortgagee has not be repaid after expiration of performance period of the debt
      under any Master Contract, the Mortgagee shall have the right to convert the
      guaranties into money or repay the debt with earnings from auction or sale
      of
      the guaranties. The said “expiration of period” includes the circumstance that
      the Mortgagee declares that the debt under the Master Contract is mature in
      advance in according to the state laws and regulations or the stipulations
      of
      the Master Contract. 

    9-2
      In
      case of more than two mortgagers hereunder, the Mortgagee shall have the right
      to dispose the guaranties of any or all mortgagers when exercising the right
      of
      mortgage. 

    

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

    Article
      10 Liability for Breach of Agreement 

    

    10-1
      After effectiveness of the Contract, both the Mortgagee and the Mortgager shall
      perform their obligations hereunder. Either party that fails to do so shall
      be
      liable for corresponding liabilities for breach of agreement and compensating
      the other for losses therefrom. 

    10-2
      The
      Mortgager shall compensate the Mortgagee for all losses caused by any of the
      following circumstances: 

    1)
      the
      Mortgager conceals facts that the guaranties have co-owners or are in dispute,
      sealed up, controlled, detained, remortgaged, leased or in default in taxes
      or
      project price, etc.; 

    2)
      the
      Mortgager disposes the guaranties without written consent of the Mortgagee;
      or

    3)
      the
      Mortgager conducts other behaviors which violate the stipulations herein or
      affect the Mortgagee to realize the right of mortgage. 

    

    Article
      11 Expense Sharing 

    

    The
      Mortgager shall be responsible for all costs and expenses incurred from
      registration, evaluation, insurance, appraisal, notarization or drawing of
      the
      guaranties hereunder. 

    

    Article
      12 Settlement of Disputes 

    

    Any
      dispute arising from performance of the Contract may be settled through
      negotiation, or by the following first
      means:

    

    
      	
              9)

            	
              litigation.
                The dispute shall be governed by the People’s Court at the place where the
                Mortgagee is located; 

            

    

    
      	
              10)

            	
              arbitration.
                The dispute shall be submitted to ____________________ (full name
                of the
                arbitration institution) for arbitration according to its rules.
                

            

    

    

    The
      Contract shall be performed continually during the period of litigation or
      arbitration, except for those in dispute. 

    

    Article
      13 Miscellaneous

    

    13-1
      The
      Mortgager shall know about operation of the Debtor and occurrence and
      performance of all dealings hereunder. The Master Contract, loan voucher or
      relevant creditor’s right documents relating to all dealings hereunder will not
      be sent to the Mortgager otherwise. 

    

    

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

    

    

    Article
      14 Effectiveness 

    

    The
      Contract shall be in force after signed or sealed by the Parties hereto. In
      case
      of mortgage registration required by laws, the Contract shall become effective
      as of the date of registration. 

    

    Article
      15 The Contract shall be in three
      copies
      with equal force, one of which shall be kept by either party hereto and one
      submitted to Jinghai
      Land Bureau.
      

    

    Article
      16 Notice 

    

    The
      Mortgagee has reminded the Mortgager to understand comprehensively and exactly
      the terms and conditions of the Contract and explained for corresponding terms
      and conditions hereof at the requirements of the Mortgager. The Parties to
      the
      Contract have consistent understanding of the meanings of the Contract.

    

    

    

    The
      Mortgagee (signature and seal): Agricultural
      Bank of China Tianjin Jinghai Sub-Branch 

    Principal
      or agent: Liu
      Tiegang 

    

    The
      Debtor (signature and seal): Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd.

    Legal
      representative or agent: Yu
      Zuosheng

    

    

    The
      Mortgager (signature and seal):
      Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd.

    Legal
      representative or agent:  

    

    The
      Mortgager (signature and seal): 

    Legal
      representative or agent:

    

    

    

    Date
      of
      conclusion: October 18, 2005 

    Place
      of
      conclusion: Agricultural Bank of China Tianjin Jinghai Sub-Branch

    

    

    

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

    

    

    

    

    

    

    

    

    Loan
      Contract

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Agricultural
      Bank of China

    

    

    
      
        
        

      

      
        57

        
          

        

      

      
        
        

      

    

    

    

    

    Loan
      Contract

    No.
      (JJH)NYJZ(___) 12101200500006410

    

    Borrower
      (full name): Tianjin Daqiuzhuang Metal Sheet Co., Ltd. 

    Lender
      (full name): Agricultural Bank of China Tianjin Jinghai Sub-Branch

    

    

    The
      Contract is entered into through negotiation in accordance with pertinent laws
      and regulations. 

    

    Article
      1
      Loan 

    

    1-1
      Kind:
      short-term working capital loan 

    1-2
      Purpose: refinancing 

    1-3
      Currency and sum (say): fifteen million yuan only 

    1-4
      Loan
      term: 

    1)
      the
      term of this Loan shall be as follows: 

     

    
      	
              Lending

            	
              Maturity

            
	
              Date

            	
              Sum

            	
              Date

            	
              Sum

            
	
              October
                17, 2005

            	
              RMB
                15,000,000

            	
              October
                17, 2005

            	
              RMB
                15,000,000

            
	 	 	 	 
	 	 	 	 
	 	 	 	 

    

    (in
      case
      of insufficiency, additional table will be available and shall be part of the
      Contract)

    

    2)
      In
      case of inconsistency of the sum and date as to lending and maturity date as
      described herein and those in lending vouchers, the latter shall prevail. The
      lending vouchers shall be part of the Contract and have equal legal force with
      the Contract. 

    3)
      In
      case of foreign exchange loan hereunder, the Borrower shall return the principal
      and interests in the original currency. 

    
      	
              1-5

            	
              Interest
                rate 

            

    

    The
      interest rate of the Loan in RMB shall be fixed according to the following
      first
      method:

    
      	 	
              1)

            	
              floating
                rate: 

            

    

    The
      interest rate shall be of annual rate: 6.975%,
      25%
      floating upward (floating upward/downward) on the benchmark rate. The benchmark
      rate of a loan less than five years (included) shall be subject to the benchmark
      rate of RMB loan publicized by the People’s Bank of China in corresponding
      period; the benchmark rate of a loan more than five years shall be additional
      ___% based on benchmark rate of RMB loan publicized by the People’s Bank of
      China in corresponding period.

    

    
      
        
        

      

      
        58

        
          

        

      

      
        
        

      

    

    The
      interest rate shall be adjusted in a period of
      three
      months.
      In case of the benchmark rate of RMB loan adjusted by the People’s Bank of
      China, the Lender shall, as of the corresponding lending date of the first
      month
      in the following period after adjustment, fix new lending rate according to
      the
      corresponding adjusted benchmark and the said calculation method, and the Lender
      will not be notified otherwise. If the adjustment date is the same with the
      lending date or the corresponding date of the first month in such period, new
      lending rate shall be fixed as of the adjustment date. In case of absence of
      corresponding date, the last day of the month shall apply. 

    
      	 	
              2)

            	
              Fixed
                rate: 

            

    

    The
      interest rate shall be of annual rate:____%, ___% floating upward (floating
      upward/downward) on the benchmark rate, up to the maturity date. The benchmark
      rate of a loan less than five years (included) shall be subject to the benchmark
      rate of RMB loan publicized by the People’s Bank of China in corresponding
      period; the benchmark rate of a loan more than five years shall be additional
      ___% based on benchmark rate of RMB loan publicized by the People’s Bank of
      China in corresponding period. 

    

    In
      case
      of foreign exchange loan, the interest rate shall be fixed according to the
      following __ method: 

    
      	 	
              a)

            	
              the
                rate comprised of ____ month(s) of _____ (LIBOR/HIBOR) and ____%
                of
                interest margin, floating _____ month(s). LIBOR/HIBOR is the London/Hong
                Kong inter-bank offered rate in corresponding period publicized by
                Reuters
                two working dates prior to the interest day.

            

    

    
      	 	
              b)

            	
              Annual
                rate: __%, up to the maturity date;

            

    

    
      	 	
              c)

            	
              Others:
                ________________________________________________________.
                

            

    

    

    
      	
              1-6

            	
              Interest
                Settlement 

            

    

    The
      interest of the Loan hereunder shall be settled on the quarterly
      (monthly/quarterly) basis on the 20th
      day of
      the last month in each quarter
      (quarter/month). The Borrower shall pay off the interests on the interest
      settlement day. If the last maturity day of the principal hereof is not the
      interest settlement day, the outstanding interests shall be settled together
      with the principal (daily rate = monthly rate/30). 

    

    Article
      2
      The Lender shall have the right not to grant the Loan hereunder until all of
      the
      following conditions are completed: 

    

    2-1
      The
      Borrower shall open a
      basic
      account
      at the
      Lender; 

    2-2
      The
      Borrower shall, at the requirements of the Lender, provide relevant documents
      and materials and complete corresponding procedures; 

    2-3
      In
      case of foreign exchange loan hereunder, the Borrower shall go through all
      approvals, registrations and other legal procedures relating to the Loan
      according to pertinent provisions; 

    2-4
      In
      case of mortgage, pledge or guarantee concerning the Loan hereunder, relevant
      registration and/or insurance and other legal procedures have been completed
      according to the requirements of the Lender, and such guarantee and insurance
      shall be valid continually. In case of assurance guarantee concerning the Loan
      hereunder, the assurance contract has been concluded and is in force.

    

    
      
        
        

      

      
        59

        
          

        

      

      
        
        

      

    

    Article
      3
      Rights and Obligations of the Lender 

    

    3-1
      The
      Lender shall have the right to know about such situations of the Borrower as
      production, operation, finance, storage and use of the Loan, and to require
      the
      Borrower to submit financial statements and other documents, materials and
      information on schedule. 

    3-2
      The
      Lender can stop granting the Loan or take back the Loan in advance if the Lender
      conducts behaviors or has circumstances which are sufficient to affect the
      safety of the Loan, including, but not limited to, those as describe in
      Paragraph 7, 8 and 10 of Article 4 hereof. 

    3-3
      The
      Lender can make direct direction from any account of the Borrower, if the Lender
      takes back according to the Contract or takes back in advance the principal,
      interests, penalty interests, compound interests and other sum payable by the
      Borrower. 

    3-4
      If
      the sum repaid by the Borrower is insufficient to discharge the sum payable
      hereunder, the Lender may choose to use such sum to repay the principal,
      interests, penalty interests, compound interests or other charges. 

    3-5
      The
      Lender may disclose in public the breaches of the Borrower, if the Borrower
      fails to perform the repayment obligation. 

    3-6
      The
      Lender shall grant the Loan to the Borrower in full amount on schedule according
      to the Contract. 

    

    Article
      4
      Rights and Obligations of the Borrower 

    

    4-1
      The
      Borrower shall have the right to obtain and use the Loan according to the
      Contract. 

    4-2
      The
      Borrower shall go through procedures for settlement and deposit relating to
      the
      Loan hereunder through the accounts as mentioned in Article 2 hereof.

    4-3
      In
      case of foreign exchange loan hereunder, the Borrower shall go through all
      approvals, registrations and other legal procedures relating to the Loan
      according to pertinent provisions.

    4-4
      The
      Borrower shall repay the principal and interests on schedule. In case of
      extension required, the Borrower shall submit a written application to the
      Lender 15 days in advance of the maturity date; an extension agreement may
      be
      made with approval of the Lender. 

    4-5
      The
      Borrower shall use the Loan subject to the purpose stipulated herein, and may
      not seize or misappropriate the Loan. 

    4-6
      The
      Borrower shall provide true, complete and valid financial statements or other
      relevant materials and information to the Lender on a monthly basis. The
      Borrower shall cooperate actively with the Lender in inspecting its production,
      operation, finance and use of the Loan hereunder. 

    4-7
      The
      Borrower shall send a prior notice to the Lender in writing if the Borrower
      conducts contract, lease, joint stock reconstruction, joint management, merger,
      acquirement, division, joint venture, asset transfer, application for business
      stoppage and rectification and other behavior which is sufficient to change
      the
      relationship of creditor's rights and debt hereunder or affect realization
      of
      the Lender’s creditor’s right. With the consent of the Lender, the Borrower
      shall ascertain the repayment liability or repay the debt hereunder in advance;
      otherwise, the Borrower may not conduct any behaviors hereinbefore.

    4-8
      The
      Borrower shall notify the Lender in writing immediately and carry through the
      preservation measures to creditor’s rights which are accepted by the Lender, if,
      except for those as mentioned in previous clause, the Borrower has any other
      circumstances which will have material adverse affections on its repayment
      obligation hereunder, such as production stoppage, business closure,
      registration cancellation, revocation of business license, or violation of
      laws
      or serious litigation or arbitration involved by the legal representative or
      main persons in charge, or severe difficulties in production and operation,
      deterioration of finance, etc.

     

    
      
        
        

      

      
        60

        
          

        

      

      
        
        

      

    

    4-9
      The
      Borrower shall send a written notice to the Lender in advance and obtain the
      consent of the Lender if the Borrower provides guarantee in favor of other’s
      debt or mortgages or pawns its main properties to a third party, which may
      affect its capability of repayment of the Loan hereunder. 

    4-10
      The
      Borrower, as well as its investors, may not withdraw funds or hide properties
      to
      escape repayment debts to the Lender. 

    4-11
      The
      Borrower shall in time notify the Lender in writing of changed name, legal
      representative, domicile, business scope and others of the Borrower, if
      any.

    4-12
      The
      Borrower shall provide in time other guarantees accepted by the Lender if the
      guarantor as to the Loan hereunder stops production, closes business, cancels
      registration, is revoked business license, is insolvent and is in deficit,
      or
      loses partly or wholly the guarantee capability relating to the Loan hereunder,
      or the value guaranty, pawn or pledge as to the Loan hereunder reduces.

    4-13
      The
      Borrower shall be responsible for costs and expenses relating to the Contract
      and the guarantee hereunder, such as attorney fee, insurance premium, freight,
      evaluation fee, registration cost, storage fee, appraisal fee and notarization
      fee. 

    

    Article
      5
      Early Repayment 

    

    In
      case
      of early repayment, the Borrower shall obtain the consent of the Lender. If
      the
      Lender agrees the Borrower to repay the Loan in advance, the interests of the
      sum repaid early shall be calculated according to the following second
      method:

    

    
      	 	
              3)

            	
              to
                calculate the interests according to the loan term and the interest
                rate
                stipulated in the Contract; 

            

    

    
      	 	
              4)

            	
              to
                calculate the interests at the ___% floating upward the interest
                rate
                stipulated in the Contract according to the actual term of loan.
                

            

    

    

    Article
      6
      Liability for Breach of Agreement 

    

    6-1
      In
      case of losses to the Borrower due to failure of the Lender to grant the Loan
      to
      the Borrower in full amount according to the Contract, the Lender shall pay
      the
      penalty to the Borrower according to the overdue amount and delayed days.
      Calculation of the penalty shall be the same as that of interests of overdue
      lending in corresponding period. 

    6-2
      Where
      the Borrower fails to return the principal and interests on schedule stipulated
      in the Contract, the Lender shall calculate and charge penalty interests of
      such
      overdue repayment sum, at thirty
      per cent
      floating upward the interest rate stipulated in the Contract as of the overdue
      repayment day, until corresponding principal and interests have been paid off.
      If, during overdue repayment, in case of lending in RMB, the People’s Bank of
      China revises upward the benchmark of corresponding RMB loan, the penalty
      interest rate shall be revised correspondingly as of such revision day.

     

    
      
        
        

      

      
        61

        
          

        

      

      
        
        

      

    

    6-3
      Where
      the Borrower fails to use the Loan according to the Contract, the Lender shall
      calculate and charge penalty interests of such sum in breach, at fifty
      per cent
      floating upward the interest rate stipulated in the Contract as of the breach
      day, until corresponding principal and interests have been paid off. If, during
      overdue repayment, in case of lending in RMB, the People’s Bank of China revises
      upward the benchmark of corresponding RMB loan, the penalty interest rate shall
      be revised correspondingly as of such revision day. 

    6-4
      The
      Lender shall calculate and charge compound interests according to the
      stipulations of the People’s Bank of China against the outstanding interests
      payable. 

    6-5
      Where
      the Borrower is in breach of the obligations hereunder, the Lender shall have
      the right to require the Borrower to correct such breach within a given period,
      to stop granting the Loan or take back the Loan granted in advance; furthermore,
      the Lender shall also have the right to declare the lending under other loan
      contracts by and between the Lender and the Borrower is mature immediately
      or to
      take other asset property measures. 

    6-6
      Where
      any of the guarantors of the Loan hereunder is in breach of the obligations
      stipulated in the guarantee contract, the Lender shall have the right to take
      measures against the Borrower, including stopping granting the Loan, taking
      back
      the Loan granted in advance or other asset property measures.

    6-7
      Where
      the Lender has to realize its creditor’s rights by means of litigation or
      arbitration due to breach of the Borrower, the Borrower shall be responsible
      for
      the attorney fee, traveling fee and other costs for realization incurred by
      the
      Lender thus. 

    

    Article
      7
      Guarantee of the Loan 

    

    The
      guarantee of the Loan hereunder shall be assurance.
      The
      guarantee contract shall be concluded otherwise. In case of maximum deposit
      mortgage, the number of the guarantee contract is No. _____________________.
      

    

    Article
      8
      Settlement of Disputes 

    

    Any
      dispute arising from performance of the Contract may be settled through
      negotiation, or by the following first means: 

    

    1)
      litigation. The dispute shall be governed by the People’s Court at the place
      where the Lender is located; 

    2)
      arbitration. The dispute shall be submitted to ____________________ (full name
      of the arbitration institution) for arbitration according to its rules.

    

    The
      Contract shall be performed continually during the period of litigation or
      arbitration, except for those in dispute. 

    

    Article
      9
      Miscellaneous

    

    

    

    
      
        
        

      

      
        62

        
          

        

      

      
        
        

      

    

    

    Article
      10 Effectiveness 

    

    The
      Contract shall be in force after signed or sealed by the Parties hereto.

    

    Article
      11 Copies 

    

    The
      Contract shall be in two copies with equal force, one of which shall be kept
      by
      either party hereto. 

    

    Article
      12 Notice 

    

    The
      Lender has reminded the Borrower to understand comprehensively and exactly
      the
      terms and conditions of the Contract and explained for corresponding terms
      and
      conditions hereof at the requirements of the Borrower. The Parties to the
      Contract have consistent understanding of the meanings of the Contract.

    

    

    

    The
      Borrower (signature and seal): Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd. 

    Legal
      representative or agent: Yu
      Zuosheng

    

    The
      Lender (signature and seal): Agricultural
      Bank of China Tianjin Jinghai Sub-Branch

    Principal
      or agent: Liu
      Tiegang 

    

    Date
      of
      conclusion: October 17, 2005 

    Place
      of
      conclusion: Agricultural Bank of China Tianjin Daqiuzhuang
      Sub-Branch

    

    

    

    

    
      
        
        

      

      
        63

        
          

        

      

      
        
        

      

    

    

    

     

    

    

    Guarantee
      Contract

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Agricultural
      Bank of China 

    

    

    
      
        
        

      

      
        64

        
          

        

      

      
        
        

      

    

    

    

    Guarantee
      Contract

    

    No.
      (JJH)NYBZ( ) 12901200500006960

    

    Creditor
      (full name): Agricultural Bank of China Tianjin Jinghai Sub-Branch 

    Guarantor
      (full name): 1) Tianjin
      Dazhan Industrial Co., Ltd. 

      
      2) ________________________________

      
      3)_________________________________

    

    The
      Guarantor is willing to guarantee the debt between Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd. (hereinafter
      referred to as the Debtor) and the Creditor under the Loan
      Contract
      (hereinafter referred to as the Master Contract), No. JJHNYJZ
      (2005) 12101200500006410,
      to
      ensure that the Master Contract by and between the Debtor and the Creditor
      can
      be fulfilled in deed. The Contract is entered into through negotiation in
      accordance with pertinent laws and regulations of the State. 

    

    Article
      1
      Kind of Primary Creditor’s Rights Guaranteed and Sum of the
      Principal

    

    The
      primary creditor’s right guaranteed is of short-term
      working capital loan,
      covering fifteen
      million yuan
      of the
      principal. 

    

    Article
      2
      Scope of Guarantee 

    

    The
      scope
      of guarantee includes the principal, interests, penalty interests, compound
      interests, penalty and damages of the debt under the Master Contract, and
      litigation cost, attorney fee, guaranty disposal fee, transfer fee and other
      costs incurred by the Creditor for realization of its creditor’s right.

    

    Article
      3
      Mode of Guarantee 

    

    The
      guarantee mode hereunder shall be of joint and several liability. In case of
      several guarantors hereunder, each guarantor shall assume the joint and several
      liability to the Creditor. 

    

    Article
      4
      Term of Guarantee 

    

    4-1
      The
      guarantee term of the Guarantor shall be two years as of the date when the
      period of debt performance of the Debtor expires according to the stipulations
      of the Master Contract. 

    4-2
      The
      guarantee term under the Banker’s Acceptance Bill, L/C Issuance Finance and
      guarantee letter shall be two years as of the date when the Creditor pays the
      sum in advance. 

    4-3
      The
      guarantee term under commercial draft discount shall be two years as of the
      maturity date of the discount note. 

    4-4
      Where
      the Creditor and the Debtor negotiate an extension agreement concerning the
      term
      of debt performance under the Master Contract, the Guarantor shall continue
      to
      assume the guarantee liability. The guarantee term shall be two years as of
      the
      date when the period of debt performance agreed in the extension agreement
      expires. 

     

    
      
        
        

      

      
        65

        
          

        

      

      
        
        

      

    

    4-5
      Where
      the Creditor declares that the debt under the Master Contract is mature in
      advance due to occurrence circumstances stipulated in laws, regulations or
      the
      Master Contract, the guarantee term shall be two years as of the prior maturity
      date of the debt under the Master Contract, which is determined by the Creditor.
      

    

    Article
      5
      Guarantor’s Undertakings 

    

    5-1
      The
      Guarantor shall provide true, complete and effective financial statements and
      other relevant materials and information. 

    5-2
      The
      Guarantor will be willing to fulfill its liability of guarantee if the Debtor
      fails to discharge the debt according to the Master Contract. 

    5-3
      The
      Creditor shall have the right to deduct corresponding sum from any account
      of
      the Guarantor if the Guarantor fails to fulfill its guarantee liability
      according to the Contract. 

    5-4
      In
      case of any of the following circumstances, the Guarantor shall within 5 days
      thereafter notify the Creditor in writing: 

    1)
      the
      Guarantor changes administrative relationship or senior management, amends
      its
      articles of association and adjusts its organization structure; 

    2)
      the
      Guarantor stops production, closes business, cancels registration or is revoked
      business license; 

    3)
      the
      Guarantor’s finance deteriorates, or production and operation are in severe
      difficulty or the Guarantor is involved in significant litigation or
      arbitration; 

    4)
      the
      Guarantor changes name, domicile, legal representative, contact method and
      so
      on; or 

    5)
      the
      Guarantor has other circumstances which will not help the Creditor realize
      its
      creditor’s right. 

    5-5
      The
      Guarantor shall notify the Creditor in writing 15 days in advance and obtain
      written consent of the Creditor if the Guarantor intends to conduct the
      following behaviors: 

    1)
      the
      Guarantor changes capital structure or operation system, including, but not
      limited to, contract, lease, joint stock reconstruction, joint management,
      merger, acquirement, division, joint venture, asset transfer and application
      for
      business stoppage and rectification, dissolution or bankruptcy; 

    2)
      the
      Guarantor provides guarantee to the debt of a third person or mortgage, pawn
      or
      guarantee its main assets for debt of it or a third person, which may affect
      it
      performance of the guarantee liability hereunder. 

    5-6
      Where
      the Debtor guarantees with substantial objects, the Guarantor will perform
      the
      guarantee liability as to all debts guaranteed, prior to guarantee of
      substantial objects. 

    

    Article
      6
      Liability for Breach of Agreement 

    

    After
      effectiveness of the Contract, both the Creditor and the Guarantor shall perform
      their obligations hereunder. Either party that fails to do so shall be liable
      for corresponding liabilities for breach of agreement and compensating the
      other
      for losses therefrom.

    

    
      
        
        

      

      
        66

        
          

        

      

      
        
        

      

    

    Article
      7
      Settlement of Disputes 

    

    Any
      dispute arising from performance of the Contract may be settled through
      negotiation, or by the following first
      means:

    

    
      	
              11)

            	
              litigation.
                The dispute shall be governed by the People’s Court at the place where the
                Creditor is located; 

            

    

    
      	
              12)

            	
              arbitration.
                The dispute shall be submitted to ____________________ (full name
                of the
                arbitration institution) for arbitration according to its rules.
                

            

    

    

    The
      Contract shall be performed continually during the period of litigation or
      arbitration, except for those in dispute. 

    

    Article
      8
      Miscellaneous

    

    8-1
      The
      Guarantor has received and read the Master Contract guaranteed. 

    

    

    

    

    Article
      9
      Effectiveness 

    

    The
      Contract shall be in force after signed or sealed by the Parties hereto.

    

    Article
      10 The Contract shall be in three copies with equal force, one of which shall
      be
      kept by either party hereto, one by Tianjin Daqiuzhuang Metal Sheet Co., Ltd.
      

    

    Article
      11 Notice 

    

    The
      Creditor has reminded the Guarantor to understand comprehensively and exactly
      the terms and conditions of the Contract and explained for corresponding terms
      and conditions hereof at the requirements of the Guarantor. The Parties to
      the
      Contract have consistent understanding of the meanings of the Contract.

    

    

    

    The
      Creditor (signature and seal): Agricultural
      Bank of China Tianjin Jinghai Sub-Branch 

    Principal
      or agent: Liu
      Tiegang 

    

    The
      Guarantor (signature and seal):
      Tianjin
      Dazhan Industrial Co., Ltd.

    Legal
      representative or agent: Li
      Feng

    

    The
      Guarantor (signature and seal): 

    Legal
      representative or agent:

    

    
      
        
        

      

      
        67

        
          

        

      

      
        
        

      

    

    The
      Guarantor (signature and seal): 

    Legal
      representative or agent:

    

    

    

    Date
      of
      conclusion: October 17, 2005 

    Place
      of
      conclusion: Agricultural Bank of China Tianjin Daqiuzhuang
      Sub-Branch

    

    
      
        
        

      

      
        68

        
          

        

      

      
        
        

      

    

    

    

    

    

    

    

    

    

    Shanghai
      Pudong Development Bank

    

    

    

    

    Short-term
      Loan Contract

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Short-term
      Loan Contract

    

    
      
        
        

      

      
        69

        
          

        

      

      
        
        

      

    

    No.
      7707200528001301 

    

    Borrower:
      Tianjin Daqiuzhuang Metal Sheet Co., Ltd. 

    Legal
      address: 

    Correspondence
      address: 

    

    Lender:
      Shanghai Pudong Development Bank Tianjin Branch 

    Add.:
      

    

    Whereas
      the Borrower applies to the Lender for short-term loan, the Contract is hereby
      made through negotiation in the principle of equality in accordance with
      pertinent laws, decrees and regulations of the People’s Republic of China.

    

    Article
      1
      Loan 

    

    
      	
              1-1

            	
              The
                currency of the Loan hereunder is RMB,
                to the maximum extent of ten
                million yuan
                only. 

            

    

    
      	
              1-2

            	
              The
                term of the Loan hereunder shall be from March
                4, 2005
                to
                March
                3, 2006.
                

            

    

    
      	
              1-3

            	
              The
                Loan hereunder may not be used for any purposes other than short-term
                turnover. The effective evidence of the principal and interests of
                the
                Loan applied by the Borrower shall be subject to the accounting vouchers
                issued by the Lender according to the rules of practice.
                

            

    

    

    Article
      2
      Interest Rate and Interest Mode 

    

    2-1
      The
      interest rate of the Loan hereunder shall be: 

    1)
      20%
      floating upward the benchmark lending rate publicized by the People’s Bank of
      China in corresponding period at the same level, namely, 0.558% per month,
      in
      case of RMB loan; 

    2)
      __% of
      annual rate [floating on basis of ____ month(s)], in case of foreign exchange
      loan. 

    

    If
      the
      benchmark lending rate of the Loan hereunder is adjusted by the People’s Bank of
      China within the term of the Contract, the interest hereof shall be calculated
      at available interest rate, which shall be fixed according to the adjusted
      benchmark rate and the floating rate stipulated herein from the next quarter
      of
      the date when the People’s Bank of China publicizes the adjusted benchmark
      rate.

    

    2-2
      Unless otherwise stipulated herein or by the Parties, the loan interest
      hereunder shall be calculated according to actual sum drawn and days occupied
      from the date of drawing on the basis of 360 days a year. 

    2-3
      The
      interest payment date of the Loan hereunder shall be the 20th
      day of
      the third month in each quarter of a calendar year. In case of foreign exchange
      loan, the interest settlement day includes the final repayment date of the
      Loan
      hereunder. The Borrower shall pay the interests due to the Lender on the
      interest payment date, and hereby empower the Lender to deduct the interests
      due
      payable directly from the deposit account of the Borrower at the Lender.

    

    
      
        
        

      

      
        70

        
          

        

      

      
        
        

      

    

    Article
      3
      Drawing and Repayment 

    

    3-1
      The
      Lender shall have no obligation to offer the Loan hereunder, until the following
      preconditions are satisfied: 

    1)
      at the
      time of drawing, the Borrower has completed the Loan Voucher and delivered
      relevant documents and materials at the requirements of the Lender;

    2)
      the
      Borrower has handled relevant government permit, allowance and registration
      as
      well as other legal procedures relating to the Loan hereunder, e.g., the
      procedure for registration of foreign exchange loan; the Borrower shall also
      complete the procedure for notarization of the Contract, if required by the
      Lender; 

    3)
      the
      Borrower has completed such legal procedures as notarization and/or registration
      at the requirements of the Lender, if the Loan hereunder is of guaranteed loan,
      and the Borrower shall ensure the guarantee to be valid constantly;

    4)
      there
      is not any breaches of agreement as mentioned in Article 7 hereof. 

    3-2
      

    1)
      The
      Borrower shall 

    a.
      draw
      the Loan by installment according to the following drawing plan, but the
      Borrower shall handle the drawing procedure with the Lender three bank’s
      business days in advance of each drawing day: 

    
      	
              the
                day of drawing by installment<?xml:namespace prefix = o
                />

            	
              sum

            
	
              on
                the __ day of ____

            	
              (say)
                _____________ in _____ (currency)

            
	
              on
                the __ day of ____

            	
              (say)
                _____________ in _____ (currency)

            
	
              on
                the __ day of ____

            	
              (say)
                _____________ in _____ (currency)

            
	
              on
                the __ day of ____

            	
              (say)
                _____________ in _____ (currency)

            
	
              on
                the __ day of ____

            	
              (say)
                _____________ in _____ (currency)

            

or

    b.
      go
      through the procedures for drawing on a lump-sum basis with the Lender three
      bank’s business days in advance as of the date when the preconditions stipulated
      herein have been satisfied. 

    2)
      The
      Lender shall grant the Loan in time after the Borrower satisfies the
      preconditions stipulated herein and completes the procedures for drawing
      according to the aforesaid clause. 

    3-3
      The
      Lender shall have the right to cancel the sum which is not drawn by the Borrower
      according to the aforesaid clause. The Borrower has no right to make another
      drawing, except with consent of the Lender. 

    3-4
      The
      Borrower shall repay on time the Loan hereunder in full amount to the Lender
      on
      the maturity date and hereby empower the Lender to make deduction directly
      from
      the deposit accounts of the Borrower at the Lender. 

    3-5
      The
      Borrower shall obtain the prior consent of the Lender if it intends to repay
      the
      Loan in advance. The Borrower shall make repayment of the principal and
      interests according to the time limit as described herein if the consent of
      the
      Lender is absent. 

    

    
      
        
        

      

      
        71

        
          

        

      

      
        
        

      

    

    Article
      4
      Statements and Guarantees 

    

    The
      Borrower hereby makes following statements and guarantees to the Lender. The
      statements and guarantees shall be in force after signed and be effective and
      valid within the term of the Contract. 

     

    4-1
      The
      Borrower is the enterprise (institution) as legal person registered in
      accordance with Chinese laws. The Borrower owns sufficient rights to all of
      its
      assets, has full capability for civil conducts and assumes civil liability
      independently. 

    4-2
      The
      Borrower has authorized the representative to execute the Contract. All terms
      and conditions of the Contract reflect true meaning of the Borrower and have
      legal binding upon the Borrower. 

    4-3
      Execution and performance of the Contract by the Borrower will not violate
      the
      laws, regulations, decrees, judgments, rulings and orders which the Borrower
      shall abide by, or conflict with the articles of association of the Borrower,
      or
      any contract or agreement which the Borrower executes or any other obligations
      which the Borrower shall assume. 

    4-4
      The
      Borrower shall at the requirements of the Lender provide true information
      concerning relevant operation and financial situation of the Borrower. The
      Borrower ensures that all financial statements issued by it comply with
      pertinent Chinese laws and regulations and reflect truly and justly the
      financial situation of the Borrower, and all documents and materials involved
      in
      the Contract are true, effective, complete, exact and free of camouflage.

    4-5
      The
      Borrower does not conceal any litigations, arbitrations, administrative
      proceedings, property preservation measures or enforcement procedures which
      have
      occurred or will occur and will or may affect its execution or performance
      of
      the Contract or may cause material adverse impact upon its operation or finance,
      or other events which may cause material adverse impacts. 

    

    Article
      5
      Stipulations 

    

    Within
      the term of the Loan hereunder the Parties make the following stipulations:
      

    

    5-1
      The
      Lender may inspect and supervise at any time utilization of the Loan in any
      way.
      The Borrower shall at the requirements of the Lender provide periodically
      relevant financial statements and other materials. The Borrower ensures to
      operate by laws and utilize the Loan according to Article 1.3 hereof, to
      cooperate actively with the Lender in supervising and inspecting the utilization
      of the Loan and operation of the Borrower and to provide in time monthly and
      yearly financial reports and other relevant materials required by the Lender.
      

    5-2
      The
      Borrower ensures that, except with preservation measures of collateralized
      loan
      approved by the Lender in writing, it will not make contract, operating lease,
      joint management, joint stock reconstruction, merger, joint venture
      (cooperation), division, establishment of branches, transfer of property rights,
      capital reduction, operation stoppage, dissolution, application for bankruptcy
      and other conducts which will affect the rights and interests of the Lender.
      

    5-3
      The
      Borrower ensures that, except with written consent of the Lender, it will not
      alter its articles of association and business scope materially, or sell, lease,
      transfer or dispose in other ways all or large part of its assets, or at will
      provide a third party with guarantee which will be sufficient to cause material
      adverse impacts upon its financial situation or capability of performance of
      its
      obligations hereunder. 

     

    
      
        
        

      

      
        72

        
          

        

      

      
        
        

      

    

    5-4
      The
      Borrower ensures not to repay other loans first in violation of normal repayment
      order, and not to execute presently or in future any contract or agreement
      to
      which the Loan hereunder will be subject. 

    5-5
      The
      Borrower shall repay and pay the principal and interests of the Loan hereunder
      in the same currency. In case the guarantor makes repayment in other currencies,
      the Borrower shall ensure that it will, at the Lender’s instructions, convert
      the sum from the guarantor into the currency of the Loan hereunder via
      transaction, swap, conversion or sale of foreign exchange to repay the
      outstanding principal and interests hereunder; all costs and expenses incurred
      therefrom shall be borne by the Borrower. 

    5-6
      The
      Borrower ensures to provide in time another guarantee which will be accepted
      by
      the Lender in case of occurrence or contingent occurrence of events which are
      sufficient to cause material adverse impact upon the guarantor’s financial
      situation or its capability of performance of guarantee obligation.

    5-7
      The
      Borrower ensures to notify in time the Lender as follows: 

    1)
      to
      notify the Lender in writing within three days in case the Borrower is aware
      of
      the breaches as mentioned in Article 7 hereof or the events which constitute
      breach; 

    2)
      to
      notify the Lender in writing within three days as of the date of material
      adverse events as mentioned in Article 4.5 hereof; 

    3)
      to
      notify the Lender in writing ten days in case of alteration of legal
      representative, authorized representative, correspondence address, name of
      the
      enterprise or material changes in finance and human resources. 

    

    5-8
      The
      Lender shall have the right to make disposal according to Article 8.1 hereof
      in
      case the Borrower has certain events as mentioned in Article 4.5 hereof, which
      will be sufficient to affect the Borrower to repay the debt hereunder.

    

    Article
      6
      Guarantee of Creditor’s Rights 

    

    6-1
      The
      guarantor will provide guarantee in favor of the Borrower to the Lender
      concerning the principal and interests of the Loan hereunder, liquidated damages
      and costs incurred by the Lender for realizing the creditor’s right (the
      guarantee contract will be made otherwise): 

    1)
      Tianjin Sheng Da Steel Mill Co.,Ltd.
      (the
      guarantor) provides guarantee, the Guarantee Contract No.: 770720058001301;
      

    2)
      __________________
      (the
      mortgager) provides a mortgage with________________ (guaranty), the Mortgage
      Contract No.: ________________;
      

    3)
      __________________
      (the
      pawner) provides a pawn with________________ (pledge), the Pawn Contract No.:
      ________________.
      

    

    
      
        
        

      

      
        73

        
          

        

      

      
        
        

      

    

    Article
      7
      Breach 

    

    7-1
      Any
      of the following events shall constitute breach of the Contract by the Borrower:
      

    1)
      The
      Borrower fails to repay or/and pay on schedule all or part of principal and
      interests due payable under the Contract and other relevant expenses;

    2)
      The
      Borrower fails to perform or acts against the statements and guarantees as
      stipulated in Article 4 hereof, or such statements and guarantees are untrue,
      inexact or incomplete; 

    3)
      The
      Borrower has been in breach of the stipulations in Article 5 hereof;

    4)
      The
      Borrower violates any other loan contracts and agreements it makes, which cause
      its debts under such contracts and agreements is declared due in advance; or
      the
      Borrower fails to repay the debts which are due payable under other loan
      contracts and agreements it makes; 

    5)
      The
      investors of the Borrower withdraw capitals, transfer assets or shareholdings
      at
      will; 

    6)
      The
      Borrower fails to in time provide or add, at the requirements of the Lender,
      another guarantee which will be accepted by the Lender when the guarantor (or
      guaranty or pawn) has lost or will lost corresponding guarantee capability
      with
      the Loan hereunder or the guarantor acts against the guarantee documents it
      makes; or 

    7)
      The
      Borrower violates other terms and conditions of the Contract (except for this
      clause). 

    7-2
      It
      will constitute a breach if the Lender fails to grant the Loan to the Borrower
      according to Article 3.2.2 hereof, except for breaches by the Borrower as
      mentioned in Article 7.1 hereof. 

    

    Article
      8
      Breach Disposal 

    

    8-1
      In
      case of one or several breaches as mentioned in Article 7 hereof, the Lender
      may
      take one or several measures according to the fact: 

    1)
      to
      declare the principal of the Loan hereunder is due in advance, to settle all
      outstanding interests and to exercise recourse in any way against the Borrower
      or the guarantor; 

    2)
      to
      collect penalty interests at additional 50% of the lending interest rate on
      the
      overdue day and charge compound interests, in case of overdue payment of RMB
      loan; to collect penalty interests at additional 100% of the lending interest
      rate on the appropriation day and charge compound interests, in case of
      appropriation of RMB loan; to collect penalty interests at 20% floating upward
      the original interest rate and charge compound interests, in case of overdue
      payment and appropriation of foreign exchange loan; 

    3)
      to
      make deduction from all or part of deposit accounts of the Borrower at the
      Lender and other branches in the system of the head office of the Lender;

    4)
      to
      cancel the credit line unused by the Borrower; 

    5)
      to
      require the Borrower to provide other guarantees accepted by the Lender;

    6)
      to
      take other necessary measures according to laws. 

    

    In
      such
      case, the Borrower agrees to waive the right of defence without conditions
      and
      shall compensate the Lender for all losses due to such breach. 

    

    8-2
      In
      case of breach, the Borrower shall be accountable for relevant costs and
      expenses (including attorney fee, litigation cost and auction fee, etc.)
      incurred by the Lender for realizing the creditor’s right. 

    8-3
      Where
      the Lender has one of breaches as mentioned in Article 7.2 hereof, the Lender
      shall be accountable for material losses of the Borrower arising from obtaining
      substitutable loan in financial market, namely, the balance between the
      interests of substitutable loan from the financial market and those of the
      Loan
      from the Lender; besides, the Lender needs not to assume any other liability.
      

    

    
      
        
        

      

      
        74

        
          

        

      

      
        
        

      

    

    Article
      9
      Miscellaneous 

    

    9-1
      In
      case of conflicts of the Contract in force with pertinent laws, regulations
      and
      decrees promulgated by the State, the Parties shall negotiate a supplementary
      contract under the precondition to ensure the safety and benefit of the Loan
      of
      the Lender. The Lender reserves the right to accelerate maturity of the Loan
      and
      exercise immediately recourse. 

    9-2
      The
      Contract shall be applied to the laws of the People’s Republic of China. Any
      disputes relating to the Contract shall be subject to the jurisdiction of the
      People’s Court at the place where the main office of the Lender is located.

    9-3
      The
      Contract shall become effective after the Parties stamp official seals and
      the
      legal representatives or authorized representatives sign or seal respectively
      and be terminated when the principal, interests and expenses of the Loan
      hereunder have been repaid. 

    9-4
      The
      loan application, loan voucher, corresponding guarantee contract and relevant
      documents and materials provided by the Borrower shall be inseparable part
      of
      the Contract and have equal legal force with the Contract. 

    9-5
      The
      original of the Contract shall be in two copies, one of which shall be kept
      by
      either party hereto; the duplicates hereof shall be kept for reference.

    

    

    Signature:
      

    

    When
      executing the Contract, the Parties hereto have no objection to any of the
      terms
      and conditions of the Contract and have understood exactly and correctly the
      legal meanings of relevant rights, obligations and liabilities of the Parties
      hereunder. 

    

    The
      Borrower (seal): Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd. 

    Legal
      representative or authorized representative (signature or seal): Yu
      Zuosheng

    Opening
      bank and accounts: Agricultural Bank of China Tianjin Daqiuzhuang Sub-branch,
      0069874023680

    

    The
      Lender (seal): Shanghai
      Pudong Development Bank Tianjin Branch

    Legal
      representative or authorized representative (signature or seal): Li
      Changmin

    

    

    

    Date
      of
      conclusion: March 4, 2005 

     

    
      
        
        

      

      
        75

        
          

        

      

      
        
        

      

    

    

    

    

    

    

    Shanghai
      Pudong Development Bank

    

    

    

    

    Guarantee
      Contract for Short-term Loan 

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
        

      

      
        76

        
          

        

      

      
        
        

      

    

    Shanghai
      Pudong Development Bank 

    

    Guarantee
      Contract for Short-term Loan

    

    No.
      770720052800130

    

    Guarantor:
      Tianjin Sheng Da Steel Mill Co.,Ltd. 

    Legal
      address: 

    Correspondence
      address: 

    

    Lender:
      Shanghai Pudong Development Bank Tianjin Branch 

    Add.:
      

    

    Whereas
      the Loan Contract (No. 7707200528001301) (hereinafter referred to as the “Loan
      Contract”) is concluded on March 4, 2005 by and between Tianjin Daqiuzhuang
      Metal Sheet Co., Ltd. (hereinafter referred to as the “Borrower”) and the
      Lender, this Contract is hereby entered into through negotiation by the
      Guarantor and the Lender on the basis of equality in accordance with pertinent
      laws and regulations of the People’s Republic of China for the purpose of
      ensuring realization of the creditor’s right of the Lender. This Contract shall
      be as one of the preconditions for the Borrower drawing the Loan under the
      Loan
      Contract. 

    

    
      	
              1.

            	
              The
                primary creditor’s right guaranteed hereunder is the principle of the Loan
                covering ten
                million yuan only,
                which is granted by the Lender to the Borrower according to the Loan
                Contract. The Guarantor hereby acknowledges that effective evidences
                proving the debt owed by the Borrower shall be subject to the accounting
                vouchers issued by the Lender according to the rules of practice;
                the Loan
                shall be mature on March 3, 2006. “Maturity (expiration)” as mentioned in
                the Contract includes the circumstance that the Lender declares the
                Loan
                is due in advance. 

            

    

    
      	
              2.

            	
              The
                scope of guarantee hereunder includes the principal, interests, penalty
                interests, compound interests, penalty and damages of the Loan under
                the
                Loan Contract, which are due payable but have not been paid by the
                Borrower, and litigation cost, attorney fee and other costs incurred
                for
                realization of its creditor’s
                right.

            

    

    
      	
              3.

            	
              The
                guarantee as mentioned in this Contract shall be of joint and several
                liability. The Guarantor shall, together with the Borrower, assume
                joint
                and several liability for the debts within the guarantee scope. As
                for all
                debts which are due payable but are not repaid by the Borrower, the
                Guarantor shall make repayment to the Lender as the first debtor
                without
                any condition; meanwhile, the Guarantor hereby empowers the Lender
                to make
                deduction directly from the deposit accounts of the Guarantor at
                the
                branches of Shanghai Pudong Development Bank, or from relevant accounts
                of
                the Guarantor at other financial institutions.

            

    

    
      	
              4.

            	
              The
                guarantee hereunder shall be independent, irrevocable and constant.
                The
                Guarantee Contract will not be impacted by effectiveness and validity
                of
                the master contract, nor be null and revocable due to invalidity
                or
                rescission of the Loan Contract. The liability for guarantee of the
                Guarantor will not be varied from consent of the Lender concerning
                extension or reconstruction of the Loan, or from alteration of the
                Loan
                Contract under agreements between the Lender and the Borrower, or
                from
                change of operation or management system of the Borrower and the
                Guarantor. If the Lender and the Borrower negotiate to alter the
                Loan
                Contract or extend or reconstruct the Loan or the Borrower changes
                its own
                operation or management system without written consent of the Guarantor,
                the Guarantor shall also be accountable for guarantee.
                

            

    

     

    
      
        
        

      

      
        77

        
          

        

      

      
        
        

      

    

    
      	
              5.

            	
              The
                guarantee term of the Guarantor hereunder shall be two years as of
                the
                date when the performance period of primary debt for the Debtor expires.
                The performance period of primary debt shall be deemed mature if
                the Loan
                is declared due in advance. In such case, the Lender can require
                the
                Guarantor to assume the guarantee liability at any time within the
                guarantee term, and the Guarantor shall do so. As for the Loan extended
                and reconstructed with consent of the Lender, the guarantee term
                of the
                Guarantor shall be two years as of the date when the new performance
                period of primary debt for the Debtor expires.

            

    

    The
      Guarantor shall assume guarantee liability within the guarantee term hereunder.
      Where the Borrower fails to repay debts according to the Loan Contract, the
      Lender may require the Guarantor to assume the guarantee liability within the
      guarantee term; where the Lender does not require the Guarantor to do so within
      the guarantee term, the Guarantor shall be exempt from guarantee liability.
      

    
      	
              6.

            	
              If,
                during the guarantee term, the Lender transfers the primary creditor’s
                right to a third party according to laws, the Guarantor shall continue
                to
                assume the guarantee liability to the extent of the original scope
                of
                guarantee. Within the guarantee term the Borrower may not transfer
                the
                debt, except with written consent of the Lender and the Guarantor.
                

            

    

    
      	
              7.

            	
              The
                Guarantor hereby makes following statements and guarantees to the
                Lender.
                The statements and guarantees shall be in force after signed and
                be
                effective and valid within the term of the Contract.
                

            

    

    
      	 	
              1)

            	
              The
                Guarantor is of the enterprise or other economic organization registered
                in accordance with Chinese laws. The Guarantor owns sufficient rights
                to
                all of its assets, has full capability for civil conduct and assumes
                civil
                liability independently. 

            

    

    
      	 	
              2)

            	
              The
                Guarantor has authorized the representative to execute the Contract.
                All
                terms and conditions of the Contract reflect true meaning of the
                Borrower
                and have legal binding upon the
                Guarantor.

            

    

    
      	 	
              3)

            	
              Execution
                and performance of the Contract by the Guarantor will not violate
                the
                laws, regulations, decrees, judgments, rulings and orders which the
                Borrower shall abide by, or conflict with the articles of association
                of
                the Guarantor, or any contract or agreement which the Guarantor executes
                or any other obligations which the Guarantor shall assume.
                

            

    

    
      	 	
              4)

            	
              The
                Guarantor ensures that all financial statements issued by it comply
                with
                pertinent Chinese laws and regulations and reflect truly and justly
                the
                financial situation of the Guarantor, and all documents and materials
                involved in the Contract are true, effective, complete, exact and
                free of
                camouflage. 

            

    

    
      	 	
              5)

            	
              The
                Guarantor does not conceal any litigations, arbitrations, administrative
                proceedings, property preservation measures or enforcement procedures
                which have occurred or will occur and will or may affect its execution
                or
                performance of the Contract or may cause material adverse impact
                upon its
                operation or finance, or other events which may cause material adverse
                impacts. 

            

    

     

    
      
        
        

      

      
        78

        
          

        

      

      
        
        

      

    

    
      	
              8.

            	
              Within
                the guarantee term the Guarantor further makes undertakings to the
                Lender
                as follows: 

            

    

    
      	 	
              1)

            	
              to
                make operation by law, cooperate actively with the Lender in supervising
                and inspecting its operation and, at the requirements of the Lender,
                in
                time provide financial statements and other relevant materials of
                the
                Lender; 

            

    

    
      	 	
              2)

            	
              not
                to, without written consent of the Lender, alter materially its articles
                of association and business scope, or sell, lease, transfer or dispose
                in
                other ways all or large part of its assets, or at will change its
                management or operation system and conduct other acts which may affect
                the
                rights and interests of the Lender, so that it is sufficient to cause
                material adverse impacts upon its financial situation or capability
                of
                performance of its obligations hereunder.

            

    

    
      	 	
              3)

            	
              to
                ensure the level of its obligations hereunder will not be less than
                its
                other obligations free of real right guarantee, and, presently and
                in
                future, not to conclude any contract or agreement to which its guarantee
                obligations hereunder shall be subject.

            

    

    
      	 	
              4)

            	
              to
                notify the Lender in writing within three days in case the Guarantor
                is
                aware of the facts which have made, or may make, material adverse
                impacts
                upon its finance or capability in performing its obligations hereunder.
                

            

    

    
      	 	
              5)

            	
              to
                notify the Lender in writing ten days in case of alteration of legal
                representative, authorized representative, correspondence address,
                name of
                the enterprise or material changes in finance and human resources.
                

            

    

    
      	 	
              6)

            	
              to
                make payment all sums due in time and perform its obligations hereunder.
                

            

    

    
      	
              9.

            	
              In
                case of conflicts of the Contract in force with pertinent laws,
                regulations and decrees promulgated by the State, the Parties shall
                negotiate a supplementary contract under the precondition to ensure
                the
                safety and benefit of the Loan of the Lender.

            

    

    
      	
              10.

            	
              The
                Contract shall become effective after the Parties stamp official
                seals and
                the legal representatives or authorized representatives sign or seal
                respectively and be terminated when the principal, interests and
                expenses
                of the Loan owed by the Borrower hereunder have been repaid; nevertheless,
                

            

    

    
      	 	
              1)

            	
              the
                Contract shall be in force on the date which the master contract
                is
                concluded, if the Contract is made prior to the master contract;
                

            

    

    
      	 	
              2)

            	
              unless
                otherwise stipulated by the Parties hereto, the Contract shall be
                terminated with an extension period of six months as of the date
                of early
                repayment, if the Borrower repays all of the Loan in advance. If
                the
                Borrower does not repay the Loan in full amount in advance, the Guarantor
                shall still assume guarantee liability for outstanding debt.
                

            

    

    
      	
              11.

            	
              The
                Contract shall be applied to the laws of the People’s Republic of China.
                Any disputes relating to the Contract shall be subject to the jurisdiction
                of the People’s Court at the place where the main office of the Lender is
                located. 

            

    

    
      	
              12.

            	
              The
                original of the Contract shall be in two copies, one of which shall
                be
                kept by either party hereto; the duplicates hereof shall be kept
                for
                reference. 

            

    

    

    When
      executing the Contract, the Parties hereto have no objection to any of the
      terms
      and conditions of the Contract and have understood exactly and correctly the
      legal meanings of relevant rights, obligations and liabilities of the Parties
      hereunder. 

    

    
      
        
        

      

      
        79

        
          

        

      

      
        
        

      

    

    The
      Guarantor (seal): Tianjin
      Sheng Da Steel Mill Co.,Ltd. 

    Legal
      representative or authorized representative (signature or seal): Wu
      Congfeng

    Opening
      bank and accounts: Agricultural Bank of China Tianjin Daqiuzhuang Sub-branch,
      0069874078254

    

    The
      Lender (seal): Shanghai
      Pudong Development Bank Tianjin Branch

    Legal
      representative or authorized representative (signature or seal): Li
      Changmin

    

    

    

    Date
      of
      conclusion: March 4, 2005 

    

    

    
      
        
        

      

      
        80

        
          

        

      

      
        
        

      

    

    

    

    

    

    

    

    

    Shanghai
      Pudong Development Bank

    

    

    

    

    Short-term
      Loan Contract

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
        

      

      
        81

        
          

        

      

      
        
        

      

    

    

    Short-term
      Loan Contract

    

    No.
      77072005280095 

    

    Borrower:
      Tianjin Daqiuzhuang Metal Sheet Co., Ltd. 

    Legal
      address: 

    Correspondence
      address: 

    

    Lender:
      Shanghai Pudong Development Bank Tianjin Branch 

    Add.:
      

    

    Whereas
      the Borrower applies to the Lender for short-term loan, the Contract is hereby
      made through negotiation in the principle of equality in accordance with
      pertinent laws, decrees and regulations of the People’s Republic of China.

    

    Article
      1
      Loan 

    

    
      	
              1-4

            	
              The
                currency of the Loan hereunder is RMB,
                to the maximum extent of Twenty
                million yuan
                only. 

            

    

    
      	
              1-5

            	
              The
                term of the Loan hereunder shall be from November
                14, 2005
                to
                November
                13, 2006.
                

            

    

    
      	
              1-6

            	
              The
                Loan hereunder may not be used for any purposes other than short-term
                turnover. The effective evidence of the principal and interests of
                the
                Loan applied by the Borrower shall be subject to the accounting vouchers
                issued by the Lender according to the rules of practice.
                

            

    

    

    Article
      2
      Interest Rate and Interest Mode 

    

    2-1
      The
      interest rate of the Loan hereunder shall be: 

    1)
      15%
      floating upward the benchmark lending rate publicized by the People’s Bank of
      China in corresponding period and at the same level, namely, 0.53475% per month,
      in case of RMB loan; 

    2)
      __% of
      annual rate [floating on basis of ____ month(s)], in case of foreign exchange
      loan. 

    

    If
      the
      benchmark lending rate of the Loan hereunder is adjusted by the People’s Bank of
      China within the term of the Contract, the interest hereof shall be calculated
      at available interest rate, which shall be fixed according to the adjusted
      benchmark rate and the floating rate stipulated herein from the next quarter
      of
      the date when the People’s Bank of China publicizes the adjusted benchmark
      rate.

    

    2-2
      Unless otherwise stipulated herein or by the Parties, the loan interest
      hereunder shall be calculated according to actual sum drawn and days occupied
      from the date of drawing on the basis of 360 days a year. 

    2-3
      The
      interest payment date of the Loan hereunder shall be the 20th
      day of
      the third month in each quarter of a calendar year. In case of foreign exchange
      loan, the interest settlement day includes the final repayment date of the
      Loan
      hereunder. The Borrower shall pay the interests due to the Lender on the
      interest payment date, and hereby empower the Lender to deduct the interests
      due
      payable directly from the deposit account of the Borrower at the Lender.

    

    
      
        
        

      

      
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    Article
      3
      Drawing and Repayment 

    

    3-1
      The
      Lender shall have no obligation to offer the Loan hereunder, until the following
      preconditions are satisfied: 

    1)
      at the
      time of drawing, the Borrower has completed the Loan Voucher and delivered
      relevant documents and materials at the requirements of the Lender;

    2)
      the
      Borrower has handled relevant government permit, allowance and registration
      as
      well as other legal procedures relating to the Loan hereunder, e.g., the
      procedure for registration of foreign exchange loan; the Borrower shall also
      complete the procedure for notarization of the Contract, if required by the
      Lender; 

    3)
      the
      Borrower has completed such legal procedures as notarization and/or registration
      at the requirements of the Lender, if the Loan hereunder is of guaranteed loan,
      and the Borrower shall ensure the guarantee to be valid constantly;

    4)
      there
      is not any breaches of agreement as mentioned in Article 7 hereof. 

    3-2
      

    1)
      The
      Borrower shall 

    a.
      draw
      the Loan by installment according to the following drawing plan, but the
      Borrower shall handle the drawing procedure with the Lender three bank’s
      business days in advance of each drawing day: 

    
      	
              the
                day of drawing by installment

            	
              sum

            
	
              on
                the __ day of ____

            	
              (say)
                _____________ in _____ (currency)

            
	
              on
                the __ day of ____

            	
              (say)
                _____________ in _____ (currency)

            
	
              on
                the __ day of ____

            	
              (say)
                _____________ in _____ (currency)

            
	
              on
                the __ day of ____

            	
              (say)
                _____________ in _____ (currency)

            
	
              on
                the __ day of ____

            	
              (say)
                _____________ in _____ (currency)

            

or

    b.
      go
      through the procedures for drawing on a lump-sum basis with the Lender three
      bank’s business days in advance as of the date when the preconditions stipulated
      herein have been satisfied. 

    2)
      The
      Lender shall grant the Loan in time after the Borrower satisfies the
      preconditions stipulated herein and completes the procedures for drawing
      according to the aforesaid clause. 

    3-3
      The
      Lender shall have the right to cancel the sum which is not drawn by the Borrower
      according to the aforesaid clause. The Borrower has no right to make another
      drawing, except with consent of the Lender. 

    3-4
      The
      Borrower shall repay on time the Loan hereunder in full amount to the Lender
      on
      the maturity date and hereby empower the Lender to make deduction directly
      from
      the deposit accounts of the Borrower at the Lender. 

    3-5
      The
      Borrower shall obtain the prior consent of the Lender if it intends to repay
      the
      Loan in advance. The Borrower shall make repayment of the principal and
      interests according to the time limit as described herein if the consent of
      the
      Lender is absent. 

    

    
      
        
        

      

      
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    Article
      4
      Statements and Guarantees 

    

    The
      Borrower hereby makes following statements and guarantees to the Lender. The
      statements and guarantees shall be in force after signed and be effective and
      valid within the term of the Contract. 

     

    4-1
      The
      Borrower is the enterprise (institution) as legal person registered in
      accordance with Chinese laws. The Borrower owns sufficient rights to all of
      its
      assets, has full capability for civil conduct and assumes civil liability
      independently. 

    4-2
      The
      Borrower has authorized the representative to execute the Contract. All terms
      and conditions of the Contract reflect true meaning of the Borrower and have
      legal binding upon the Borrower. 

    4-3
      Execution and performance of the Contract by the Borrower will not violate
      the
      laws, regulations, decrees, judgments, rulings and orders which the Borrower
      shall abide by, or conflict with the articles of association of the Borrower,
      or
      any contract or agreement which the Borrower executes or any other obligations
      which the Borrower shall assume. 

    4-4
      The
      Borrower shall at the requirements of the Lender provide true information
      concerning relevant operation and financial situation of the Borrower. The
      Borrower ensures that all financial statements issued by it comply with
      pertinent Chinese laws and regulations and reflect truly and justly the
      financial situation of the Borrower, and all documents and materials involved
      in
      the Contract are true, effective, complete, exact and free of camouflage.

    4-5
      The
      Borrower does not conceal any litigations, arbitrations, administrative
      proceedings, property preservation measures or enforcement procedures which
      have
      occurred or will occur and will or may affect its execution or performance
      of
      the Contract or may cause material adverse impact upon its operation or finance,
      or other events which may cause material adverse impacts. 

    

    Article
      5
      Stipulations 

    

    Within
      the term of the Loan hereunder the Parties make the following stipulations:
      

    

    5-1
      The
      Lender may inspect and supervise at any time utilization of the Loan in any
      way.
      The Borrower shall at the requirements of the Lender provide periodically
      relevant financial statements and other materials. The Borrower ensures to
      operate by laws and utilize the Loan according to Article 1.3 hereof, to
      cooperate actively with the Lender in supervising and inspecting the utilization
      of the Loan and the operation of the Borrower and to provide in time monthly
      and
      yearly financial reports and other relevant materials required by the Lender.
      

    5-2
      The
      Borrower ensures that, except with preservation measures of collateralized
      loan
      approved by the Lender in writing, it will not make contract, operating lease,
      joint management, joint stock reconstruction, merger, joint venture
      (cooperation), division, establishment of branches, transfer of property rights,
      capital reduction, operation stoppage, dissolution, application for bankruptcy
      and other conducts which will affect the rights and interests of the Lender.
      

    5-3
      The
      Borrower ensures that, except with written consent of the Lender, it will not
      alter its articles of association and business scope materially, or sell, lease,
      transfer or dispose in other ways all or large part of its assets, or at will
      provide a third party with guarantee which will be sufficient to cause material
      adverse impacts upon its financial situation or capability of performance of
      its
      obligations hereunder. 

     

    
      
        
        

      

      
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    5-4
      The
      Borrower ensures not to repay other loans first in violation of normal repayment
      order, and not to execute presently or in future any contract or agreement
      to
      which the Loan hereunder will be subject. 

    5-5
      The
      Borrower shall repay and pay the principal and interests of the Loan hereunder
      in the same currency. In case the guarantor makes repayment in other currencies,
      the Borrower shall ensure that it will, at the Lender’s instructions, convert
      the sum from the guarantor into the currency of the Loan hereunder via
      transaction, swap, conversion or sale of foreign exchange to repay the
      outstanding principal and interests hereunder; all costs and expenses incurred
      therefrom shall be borne by the Borrower. 

    5-6
      The
      Borrower ensures to provide in time another guarantee which will be accepted
      by
      the Lender in case of occurrence or contingent occurrence of events which are
      sufficient to cause material adverse impact upon the guarantor’s financial
      situation or its capability of performance of guarantee obligation.

    5-7
      The
      Borrower ensures to notify in time the Lender as follows: 

    1)
      to
      notify the Lender in writing within three days in case the Borrower is aware
      of
      the breaches as mentioned in Article 7 hereof or the events which constitute
      breach; 

    2)
      to
      notify the Lender in writing within three days as of the date of material
      adverse events as mentioned in Article 4.5 hereof; 

    3)
      to
      notify the Lender in writing ten days in case of alteration of legal
      representative, authorized representative, correspondence address, name of
      the
      enterprise or material changes in finance and human resources. 

    

    5-8
      The
      Lender shall have the right to make disposal according to Article 8.1 hereof
      in
      case the Borrower has certain events as mentioned in Article 4.5 hereof, which
      will be sufficient to affect the Borrower to repay the debt hereunder.

    

    Article
      6
      Guarantee of Creditor’s Rights 

    

    6-1
      The
      guarantor will provide guarantee in favor of the Borrower to the Lender
      concerning the principal and interests of the Loan hereunder, liquidated damages
      and costs incurred by the Lender for realizing the creditor’s right (the
      guarantee contract will be made otherwise): 

    1)
      Tianjin
      Sheng Da Steel Mill Co.,Ltd.
      (the
      guarantor) provides guarantee, the Guarantee Contract No.: 77072005280095;
      

    2)
      __________________
      (the
      mortgager) provides a mortgage with________________ (guaranty), the Mortgage
      Contract No.: ________________;
      

    3)
      __________________
      (the
      pawner) provides a pawn with________________ (pledge), the Pawn Contract No.:
      ________________.
      

    

    
      
        
        

      

      
        85

        
          

        

      

      
        
        

      

    

    Article
      7
      Breach 

    

    7-1
      Any
      of the following events shall constitute breach of the Contract by the Borrower:
      

    1)
      The
      Borrower fails to repay or/and pay on schedule all or part of principal and
      interests due payable under the Contract and other relevant expenses;

    2)
      The
      Borrower fails to perform or acts against the statements and guarantees as
      stipulated in Article 4 hereof, or such statements and guarantees are untrue,
      inexact or incomplete; 

    3)
      The
      Borrower has been in breach of the stipulations in Article 5 hereof;

    4)
      The
      Borrower violates any other loan contracts and agreements it makes, which cause
      its debts under such contracts and agreements is declared due in advance; or
      the
      Borrower fails to repay the debts which are due payable under other loan
      contracts and agreements it makes; 

    5)
      The
      investors of the Borrower withdraw capitals, transfer assets or shareholdings
      at
      will; 

    6)
      The
      Borrower fails to in time provide or add, at the requirements of the Lender,
      another guarantee which will be accepted by the Lender when the guarantor (or
      guaranty or pawn) has lost or will lost corresponding guarantee capability
      with
      the Loan hereunder or the guarantor acts against the guarantee documents it
      makes; or 

    7)
      The
      Borrower violates other terms and conditions of the Contract (except for this
      clause). 

    7-2
      It
      will constitute a breach if the Lender fails to grant the Loan to the Borrower
      according to Article 3.2.2 hereof, except for breaches by the Borrower as
      mentioned in Article 7.1 hereof. 

    

    Article
      8
      Breach Disposal 

    

    8-1
      In
      case of one or several breaches as mentioned in Article 7 hereof, the Lender
      may
      take one or several measures according to the fact: 

    1)
      to
      declare the principal of the Loan hereunder is due in advance, to settle all
      outstanding interests and to exercise recourse in any way against the Borrower
      or the guarantor; 

    2)
      to
      collect penalty interests at additional 50% of the lending interest rate on
      the
      overdue day and charge compound interests, in case of overdue payment of RMB
      loan; to collect penalty interests at additional 100% of the lending interest
      rate on the appropriation day and charge compound interests, in case of
      appropriation of RMB loan; to collect penalty interests at 20% floating upward
      the original interest rate and charge compound interests, in case of overdue
      payment and appropriation of foreign exchange loan; 

    3)
      to
      make deduction from all or part of deposit accounts of the Borrower at the
      Lender and other branches in the system of the head office of the Lender;

    4)
      to
      cancel the credit line unused by the Borrower; 

    5)
      to
      require the Borrower to provide other guarantees accepted by the Lender;

    6)
      to
      take other necessary measures according to laws. 

    

    In
      such
      case, the Borrower agrees to waive the right of defence without conditions
      and
      shall compensate the Lender for all losses due to such breach. 

    

    8-2
      In
      case of breach, the Borrower shall be accountable for relevant costs and
      expenses (including attorney fee, litigation cost and auction fee, etc.)
      incurred by the Lender for realizing the creditor’s right. 

    8-3
      Where
      the Lender has one of breaches as mentioned in Article 7.2 hereof, the Lender
      shall be accountable for material losses of the Borrower arising from obtaining
      substitutable loan in financial market, namely, the balance between the
      interests of substitutable loan from the financial market and those of the
      Loan
      from the Lender; besides, the Lender needs not to assume any other liability.
      

    

    
      
        
        

      

      
        86

        
          

        

      

      
        
        

      

    

    Article
      9
      Miscellaneous 

    

    9-1
      In
      case of conflicts of the Contract in force with pertinent laws, regulations
      and
      decrees promulgated by the State, the Parties shall negotiate a supplementary
      contract under the precondition to ensure the safety and benefit of the Loan
      of
      the Lender. The Lender reserves the right to accelerate maturity of the Loan
      and
      exercise immediately recourse. 

    9-2
      The
      Contract shall be applied to the laws of the People’s Republic of China. Any
      disputes relating to the Contract shall be subject to the jurisdiction of the
      People’s Court at the place where the main office of the Lender is located.

    9-3
      The
      Contract shall become effective after the Parties stamp official seals and
      the
      legal representatives or authorized representatives sign or seal respectively
      and be terminated when the principal, interests and expenses of the Loan
      hereunder have been repaid. 

    9-4
      The
      loan application, loan voucher, corresponding guarantee contract and relevant
      documents and materials provided by the Borrower shall be inseparable part
      of
      the Contract and have equal legal force with the Contract. 

    9-5
      The
      original of the Contract shall be in two copies, one of which shall be kept
      by
      either party hereto; the duplicates hereof shall be kept for reference.

    

    

    Signature:
      

    

    When
      executing the Contract, the Parties hereto have no objection to any of the
      terms
      and conditions of the Contract and have understood exactly and correctly the
      legal meanings of relevant rights, obligations and liabilities of the Parties
      hereunder. 

    

    The
      Borrower (seal): Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd. 

    Legal
      representative or authorized representative (signature or seal): Yu
      Zuosheng

    Opening
      bank and accounts: Agricultural Bank of China Tianjin Daqiuzhuang Sub-branch,
      071201040006858

    

    The
      Lender (seal): Shanghai
      Pudong Development Bank Tianjin Branch

    Legal
      representative or authorized representative (signature or seal): Li
      Changmin

    

    

    

    Date
      of
      conclusion: November 14, 2005 

     

    

    
      
        
        

      

      
        87

        
          

        

      

      
        
        

      

    

    

    

    

    Shanghai
      Pudong Development Bank

    

    

    

    

    Guarantee
      Contract for Short-term Loan 

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
        

      

      
        88

        
          

        

      

      
        
        

      

    

    15

    Shanghai
      Pudong Development Bank 

    

    Guarantee
      Contract for Short-term Loan

    

    No.
      77072005280095

    

    Guarantor:
      Tianjin Sheng Da Steel Mill Co.,Ltd. 

    Legal
      address: 

    Correspondence
      address: 

    

    Lender:
      Shanghai Pudong Development Bank Tianjin Branch 

    Add.:
      

    

    Whereas
      the Loan Contract (No. 77072005280095) (hereinafter referred to as the “Loan
      Contract”) is concluded on November 11, 2005 by and between Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd.
      (hereinafter referred to as the “Borrower”) and the Lender, this Contract is
      hereby entered into through negotiation by the Guarantor and the Lender on
      the
      basis of equality in accordance with pertinent laws and regulations of the
      People’s Republic of China for the purpose of ensuring realization of the
      creditor’s right of the Lender. This Contract shall be as one of the
      preconditions for the Borrower drawing the Loan under the Loan Contract.

    

    
      	
              1.

            	
              The
                primary creditor’s right guaranteed hereunder is the principle of the Loan
                covering twenty
                million yuan only,
                which is granted by the Lender to the Borrower according to the Loan
                Contract. The Guarantor hereby acknowledges that effective evidences
                proving the debt owed by the Borrower shall be subject to the accounting
                vouchers issued by the Lender according to the rules of practice;
                the Loan
                shall be mature on November 13, 2006. “Maturity (expiration)” as mentioned
                in the Contract includes the circumstance that the Lender declares
                the
                Loan is due in advance. 

            

    

    
      	
              2.

            	
              The
                scope of guarantee hereunder includes the principal, interests, penalty
                interests, compound interests, penalty and damages of the Loan under
                the
                Loan Contract, which are due payable but have not been paid by the
                Borrower, and litigation cost, attorney fee and other costs incurred
                for
                realization of its creditor’s
                right.

            

    

    
      	
              3.

            	
              The
                guarantee as mentioned in this Contract shall be of joint and several
                liability. The Guarantor shall, together with the Borrower, assume
                joint
                and several liability for the debts within the guarantee scope. As
                for all
                debts which are due payable but are not repaid by the Borrower, the
                Guarantor shall make repayment to the Lender as the first debtor
                without
                any condition; meanwhile, the Guarantor hereby empowers the Lender
                to make
                deduction directly from the deposit accounts of the Guarantor at
                the
                branches of Shanghai Pudong Development Bank, or from relevant accounts
                of
                the Guarantor at other financial institutions.

            

    

    
      	
              4.

            	
              The
                guarantee hereunder shall be independent, irrevocable and constant.
                The
                Guarantee Contract will not be impacted by effectiveness and validity
                of
                the master contract, nor be null and revocable due to invalidity
                or
                rescission of the Loan Contract. The liability for guarantee of the
                Guarantor will not be varied from consent of the Lender concerning
                extension or reconstruction of the Loan, or from alteration of the
                Loan
                Contract under agreements between the Lender and the Borrower, or
                from
                change of operation or management system of the Borrower and the
                Guarantor. If the Lender and the Borrower negotiate to alter the
                Loan
                Contract or extend or reconstruct the Loan or the Borrower changes
                its own
                operation or management system without written consent of the Guarantor,
                the Guarantor shall also be accountable for guarantee.
                

            

    

     

    
      
        
        

      

      
        89

        
          

        

      

      
        
        

      

    

    
      	
              5.

            	
              The
                guarantee term of the Guarantor hereunder shall be two years as of
                the
                date when the performance period of primary debt for the Debtor expires.
                The performance period of primary debt shall be deemed mature if
                the Loan
                is declared due in advance. In such case, the Lender can require
                the
                Guarantor to assume the guarantee liability at any time within the
                guarantee term, and the Guarantor shall do so. As for the Loan extended
                and reconstructed with consent of the Lender, the guarantee term
                of the
                Guarantor shall be two years as of the date when the new performance
                period of primary debt for the Debtor expires.

            

    

    The
      Guarantor shall assume guarantee liability within the guarantee term hereunder.
      Where the Borrower fails to repay debts according to the Loan Contract, the
      Lender may require the Guarantor to assume the guarantee liability within the
      guarantee term; where the Lender does not require the Guarantor to do so within
      the guarantee term, the Guarantor shall be exempt from guarantee liability.
      

    
      	
              6.

            	
              If,
                during the guarantee term, the Lender transfers the primary creditor’s
                right to a third party according to laws, the Guarantor shall continue
                to
                assume the guarantee liability to the extent of the original scope
                of
                guarantee. Within the guarantee term the Borrower may not transfer
                the
                debt, except with written consent of the Lender and the Guarantor.
                

            

    

    
      	
              7.

            	
              The
                Guarantor hereby makes following statements and guarantees to the
                Lender.
                The statements and guarantees shall be in force after signed and
                be
                effective and valid within the term of the Contract.
                

            

    

    
      	 	
              1)

            	
              The
                Guarantor is of the enterprise or other economic organization registered
                in accordance with Chinese laws. The Guarantor owns sufficient rights
                to
                all of its assets, has full capability for civil conduct and assumes
                civil
                liability independently. 

            

    

    
      	 	
              2)

            	
              The
                Guarantor has authorized the representative to execute the Contract.
                All
                terms and conditions of the Contract reflect true meaning of the
                Borrower
                and have legal binding upon the
                Guarantor.

            

    

    
      	 	
              3)

            	
              Execution
                and performance of the Contract by the Guarantor will not violate
                the
                laws, regulations, decrees, judgments, rulings and orders which the
                Borrower shall abide by, or conflict with the articles of association
                of
                the Guarantor, or any contract or agreement which the Guarantor executes
                or any other obligations which the Guarantor shall assume.
                

            

    

    
      	 	
              4)

            	
              The
                Guarantor ensures that all financial statements issued by it comply
                with
                pertinent Chinese laws and regulations and reflect truly and justly
                the
                financial situation of the Guarantor, and all documents and materials
                involved in the Contract are true, effective, complete, exact and
                free of
                camouflage. 

            

    

    
      	 	
              5)

            	
              The
                Guarantor does not conceal any litigations, arbitrations, administrative
                proceedings, property preservation measures or enforcement procedures
                which have occurred or will occur and will or may affect its execution
                or
                performance of the Contract or may cause material adverse impact
                upon its
                operation or finance, or other events which may cause material adverse
                impacts. 

            

    

     

    
      
        
        

      

      
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              8.

            	
              Within
                the guarantee term the Guarantor further makes undertakings to the
                Lender
                as follows: 

            

    

    
      	 	
              6)

            	
              to
                make operation by law, cooperate actively with the Lender in supervising
                and inspecting its operation and, at the requirements of the Lender,
                in
                time provide financial statements and other relevant materials of
                the
                Lender; 

            

    

    
      	 	
              7)

            	
              not
                to, without written consent of the Lender, alter materially its articles
                of association and business scope, or sell, lease, transfer or dispose
                in
                other ways all or large part of its assets, or at will change its
                management or operation system and conduct other acts which may affect
                the
                rights and interests of the Lender, so that it is sufficient to cause
                material adverse impacts upon its financial situation or capability
                of
                performance of its obligations hereunder.

            

    

    
      	 	
              8)

            	
              to
                ensure the level of its obligations hereunder will not be less than
                its
                other obligations free of real right guarantee, and, presently and
                in
                future, not to conclude any contract or agreement to which its guarantee
                obligations hereunder shall be subject.

            

    

    
      	 	
              9)

            	
              to
                notify the Lender in writing within three days in case the Guarantor
                is
                aware of the facts which have made, or may make, material adverse
                impacts
                upon its finance or capability in performing its obligations hereunder.
                

            

    

    
      	 	
              10)

            	
              to
                notify the Lender in writing ten days in case of alteration of legal
                representative, authorized representative, correspondence address,
                name of
                the enterprise or material changes in finance and human resources.
                

            

    

    
      	 	
              11)

            	
              to
                make payment all sums due in time and perform its obligations hereunder.
                

            

    

    
      	
              9.

            	
              In
                case of conflicts of the Contract in force with pertinent laws,
                regulations and decrees promulgated by the State, the Parties shall
                negotiate a supplementary contract under the precondition to ensure
                the
                safety and benefit of the Loan of the Lender.

            

    

    
      	
              10.

            	
              The
                Contract shall become effective after the Parties stamp official
                seals and
                the legal representatives or authorized representatives sign or seal
                respectively and be terminated when the principal, interests and
                expenses
                of the Loan owed by the Borrower hereunder have been repaid; nevertheless,
                

            

    

    
      	 	
              12)

            	
              the
                Contract shall be in force on the date which the master contract
                is
                concluded, if the Contract is made prior to the master contract;
                

            

    

    
      	 	
              13)

            	
              unless
                otherwise stipulated by the Parties hereto, the Contract shall be
                terminated with an extension period of six months as of the date
                of early
                repayment, if the Borrower repays all of the Loan in advance. If
                the
                Borrower does not repay the Loan in full amount in advance, the Guarantor
                shall still assume guarantee liability for outstanding debt.
                

            

    

    
      	
              11.

            	
              The
                Contract shall be applied to the laws of the People’s Republic of China.
                Any disputes relating to the Contract shall be subject to the jurisdiction
                of the People’s Court at the place where the main office of the Lender is
                located. 

            

    

    
      	
              12.

            	
              The
                original of the Contract shall be in two copies, one of which shall
                be
                kept by either party hereto; the duplicates hereof shall be kept
                for
                reference. 

            

    

    

    When
      executing the Contract, the Parties hereto have no objection to any of the
      terms
      and conditions of the Contract and have understood exactly and correctly the
      legal meanings of relevant rights, obligations and liabilities of the Parties
      hereunder. 

    

    
      
        
        

      

      
        91

        
          

        

      

      
        
        

      

    

    The
      Guarantor (seal): Tianjin
      Sheng Da Steel Mill Co.,Ltd. 

    Legal
      representative or authorized representative (signature or seal): Wu
      Congfeng

    Opening
      bank and accounts: Agricultural Bank of China Tianjin Daqiuzhuang Sub-branch,
      0069874078254

    

    The
      Lender (seal): Shanghai
      Pudong Development Bank Tianjin Branch

    Legal
      representative or authorized representative (signature or seal): Li
      Changmin

    

    

    

    Date
      of
      conclusion: November 14, 2005 

    

    
      
        
        

      

      
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    16

    

    

    

    

    Shanghai
      Pudong Development Bank

    

    

    

    

    Short-term
      Loan Contract

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
        

      

      
        93

        
          

        

      

      
        
        

      

    

    Short-term
      Loan Contract

    

    No.
      7707200528005401 

    

    Borrower:
      Tianjin Daqiuzhuang Metal Sheet Co., Ltd. 

    Legal
      address: 

    Correspondence
      address: 

    

    Lender:
      Shanghai Pudong Development Bank Tianjin Branch 

    Add.:
      

    

    Whereas
      the Borrower applies to the Lender for short-term loan, the Contract is hereby
      made through negotiation in the principle of equality in accordance with
      pertinent laws, decrees and regulations of the People’s Republic of China.

    

    Article
      1
      Loan 

    

    
      	
              1-7

            	
              The
                currency of the Loan hereunder is RMB,
                to the maximum extent of Twenty
                million yuan
                only. 

            

    

    
      	
              1-8

            	
              The
                term of the Loan hereunder shall be from July
                18, 2005
                to
                July
                17, 2006.
                

            

    

    
      	
              1-9

            	
              The
                Loan hereunder may not be used for any purposes other than short-term
                turnover. The effective evidence of the principal and interests of
                the
                Loan applied by the Borrower shall be subject to the accounting vouchers
                issued by the Lender according to the rules of practice.
                

            

    

    

    Article
      2
      Interest Rate and Interest Mode 

    

    2-1
      The
      interest rate of the Loan hereunder shall be: 

    1)
      15%
      floating upward the benchmark lending rate publicized by the People’s Bank of
      China in corresponding period and at the same level, namely, 0.53475% per month,
      in case of RMB loan; 

    2)
      __% of
      annual rate [floating on basis of ____ month(s)], in case of foreign exchange
      loan. 

    

    If
      the
      benchmark lending rate of the Loan hereunder is adjusted by the People’s Bank of
      China within the term of the Contract, the interest hereof shall be calculated
      at available interest rate, which shall be fixed according to the adjusted
      benchmark rate and the floating rate stipulated herein from the next quarter
      of
      the date when the People’s Bank of China publicizes the adjusted benchmark
      rate.

    

    2-2
      Unless otherwise stipulated herein or by the Parties, the loan interest
      hereunder shall be calculated according to actual sum drawn and days occupied
      from the date of drawing on the basis of 360 days a year. 

    2-3
      The
      interest payment date of the Loan hereunder shall be the 20th
      day of
      the third month in each quarter of a calendar year. In case of foreign exchange
      loan, the interest settlement day includes the final repayment date of the
      Loan
      hereunder. The Borrower shall pay the interests due to the Lender on the
      interest payment date, and hereby empower the Lender to deduct the interests
      due
      payable directly from the deposit account of the Borrower at the Lender.

    

    
      
        
        

      

      
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    Article
      3
      Drawing and Repayment 

    

    3-1
      The
      Lender shall have no obligation to offer the Loan hereunder, until the following
      preconditions are satisfied: 

    1)
      at the
      time of drawing, the Borrower has completed the Loan Voucher and delivered
      relevant documents and materials at the requirements of the Lender;

    2)
      the
      Borrower has handled relevant government permit, allowance and registration
      as
      well as other legal procedures relating to the Loan hereunder, e.g., the
      procedure for registration of foreign exchange loan; the Borrower shall also
      complete the procedure for notarization of the Contract, if required by the
      Lender; 

    3)
      the
      Borrower has completed such legal procedures as notarization and/or registration
      at the requirements of the Lender, if the Loan hereunder is of guaranteed loan,
      and the Borrower shall ensure the guarantee to be valid constantly;

    4)
      there
      is not any breaches of agreement as mentioned in Article 7 hereof. 

    3-2
      

    1)
      The
      Borrower shall 

    a.
      draw
      the Loan by installment according to the following drawing plan, but the
      Borrower shall handle the drawing procedure with the Lender three bank’s
      business days in advance of each drawing day: 

    
      	
              the
                day
                of drawing by installment<?xml:namespace prefix = o ns =
                "urn:schemas-microsoft-com:office:office" />

            	
              sum

            
	
              on
                the
                __ day of ____

            	
              (say)
                _____________ in _____ (currency)

            
	
              on
                the
                __ day of ____

            	
              (say)
                _____________ in _____ (currency)

            
	
              on
                the
                __ day of ____

            	
              (say)
                _____________ in _____ (currency)

            
	
              on
                the
                __ day of ____

            	
              (say)
                _____________ in _____ (currency)

            
	
              on
                the
                __ day of ____

            	
              (say)
                _____________ in _____ (currency)

            

or 

    b.
      go
      through the procedures for drawing on a lump-sum basis with the Lender three
      bank’s business days in advance as of the date when the preconditions stipulated
      herein have been satisfied. 

    2)
      The
      Lender shall grant the Loan in time after the Borrower satisfies the
      preconditions stipulated herein and completes the procedures for drawing
      according to the aforesaid clause. 

    3-3
      The
      Lender shall have the right to cancel the sum which is not drawn by the Borrower
      according to the aforesaid clause. The Borrower has no right to make another
      drawing, except with consent of the Lender. 

    3-4
      The
      Borrower shall repay on time the Loan hereunder in full amount to the Lender
      on
      the maturity date and hereby empower the Lender to make deduction directly
      from
      the deposit accounts of the Borrower at the Lender. 

    3-5
      The
      Borrower shall obtain the prior consent of the Lender if it intends to repay
      the
      Loan in advance. The Borrower shall make repayment of the principal and
      interests according to the time limit as described herein if the consent of
      the
      Lender is absent. 

    

    
      
        
        

      

      
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    Article
      4
      Statements and Guarantees 

    

    The
      Borrower hereby makes following statements and guarantees to the Lender. The
      statements and guarantees shall be in force after signed and be effective and
      valid within the term of the Contract. 

     

    4-1
      The
      Borrower is the enterprise (institution) as legal person registered in
      accordance with Chinese laws. The Borrower owns sufficient rights to all of
      its
      assets, has full capability for civil conduct and assumes civil liability
      independently. 

    4-2
      The
      Borrower has authorized the representative to execute the Contract. All terms
      and conditions of the Contract reflect true meaning of the Borrower and have
      legal binding upon the Borrower. 

    4-3
      Execution and performance of the Contract by the Borrower will not violate
      the
      laws, regulations, decrees, judgments, rulings and orders which the Borrower
      shall abide by, or conflict with the articles of association of the Borrower,
      or
      any contract or agreement which the Borrower executes or any other obligations
      which the Borrower shall assume. 

    4-4
      The
      Borrower shall at the requirements of the Lender provide true information
      concerning relevant operation and financial situation of the Borrower. The
      Borrower ensures that all financial statements issued by it comply with
      pertinent Chinese laws and regulations and reflect truly and justly the
      financial situation of the Borrower, and all documents and materials involved
      in
      the Contract are true, effective, complete, exact and free of camouflage.

    4-5
      The
      Borrower does not conceal any litigations, arbitrations, administrative
      proceedings, property preservation measures or enforcement procedures which
      have
      occurred or will occur and will or may affect its execution or performance
      of
      the Contract or may cause material adverse impact upon its operation or finance,
      or other events which may cause material adverse impacts. 

    

    Article
      5
      Stipulations 

    

    Within
      the term of the Loan hereunder the Parties make the following stipulations:
      

    

    5-1
      The
      Lender may inspect and supervise at any time utilization of the Loan in any
      way.
      The Borrower shall at the requirements of the Lender provide periodically
      relevant financial statements and other materials. The Borrower ensures to
      operate by laws and utilize the Loan according to Article 1.3 hereof, to
      cooperate actively with the Lender in supervising and inspecting the utilization
      of the Loan and the operation of the Borrower and to provide in time monthly
      and
      yearly financial reports and other relevant materials required by the Lender.
      

    5-2
      The
      Borrower ensures that, except with preservation measures of collateralized
      loan
      approved by the Lender in writing, it will not make contract, operating lease,
      joint management, joint stock reconstruction, merger, joint venture
      (cooperation), division, establishment of branches, transfer of property rights,
      capital reduction, operation stoppage, dissolution, application for bankruptcy
      and other conducts which will affect the rights and interests of the Lender.
      

    5-3
      The
      Borrower ensures that, except with written consent of the Lender, it will not
      alter its articles of association and business scope materially, or sell, lease,
      transfer or dispose in other ways all or large part of its assets, or at will
      provide a third party with guarantee which will be sufficient to cause material
      adverse impacts upon its financial situation or capability of performance of
      its
      obligations hereunder. 

     

    
      
        
        

      

      
        96

        
          

        

      

      
        
        

      

    

    5-4
      The
      Borrower ensures not to repay other loans first in violation of normal repayment
      order, and not to execute presently or in future any contract or agreement
      to
      which the Loan hereunder will be subject. 

    5-5
      The
      Borrower shall repay and pay the principal and interests of the Loan hereunder
      in the same currency. In case the guarantor makes repayment in other currencies,
      the Borrower shall ensure that it will, at the Lender’s instructions, convert
      the sum from the guarantor into the currency of the Loan hereunder via
      transaction, swap, conversion or sale of foreign exchange to repay the
      outstanding principal and interests hereunder; all costs and expenses incurred
      therefrom shall be borne by the Borrower. 

    5-6
      The
      Borrower ensures to provide in time another guarantee which will be accepted
      by
      the Lender in case of occurrence or contingent occurrence of events which are
      sufficient to cause material adverse impact upon the guarantor’s financial
      situation or its capability of performance of guarantee obligation.

    5-7
      The
      Borrower ensures to notify in time the Lender as follows: 

    1)
      to
      notify the Lender in writing within three days in case the Borrower is aware
      of
      the breaches as mentioned in Article 7 hereof or the events which constitute
      breach; 

    2)
      to
      notify the Lender in writing within three days as of the date of material
      adverse events as mentioned in Article 4.5 hereof; 

    3)
      to
      notify the Lender in writing ten days in case of alteration of legal
      representative, authorized representative, correspondence address, name of
      the
      enterprise or material changes in finance and human resources. 

    

    5-8
      The
      Lender shall have the right to make disposal according to Article 8.1 hereof
      in
      case the Borrower has certain events as mentioned in Article 4.5 hereof, which
      will be sufficient to affect the Borrower to repay the debt hereunder.

    

    Article
      6
      Guarantee of Creditor’s Rights 

    

    6-1
      The
      guarantor will provide guarantee in favor of the Borrower to the Lender
      concerning the principal and interests of the Loan hereunder, liquidated damages
      and costs incurred by the Lender for realizing the creditor’s right (the
      guarantee contract will be made otherwise): 

    1)
      Tianjin
      Sheng Da Steel Mill Co.,Ltd.
      (the
      guarantor) provides guarantee, the Guarantee Contract No.: 7707200528005401;
      

    2)
      __________________
      (the
      mortgager) provides a mortgage with________________ (guaranty), the Mortgage
      Contract No.: ________________;
      

    3)
      __________________
      (the
      pawner) provides a pawn with________________ (pledge), the Pawn Contract No.:
      ________________.
      

    

    
      
        
        

      

      
        97

        
          

        

      

      
        
        

      

    

    Article
      7
      Breach 

    

    7-1
      Any
      of the following events shall constitute breach of the Contract by the Borrower:
      

    1)
      The
      Borrower fails to repay or/and pay on schedule all or part of principal and
      interests due payable under the Contract and other relevant expenses;

    2)
      The
      Borrower fails to perform or acts against the statements and guarantees as
      stipulated in Article 4 hereof, or such statements and guarantees are untrue,
      inexact or incomplete; 

    3)
      The
      Borrower has been in breach of the stipulations in Article 5 hereof;

    4)
      The
      Borrower violates any other loan contracts and agreements it makes, which cause
      its debts under such contracts and agreements is declared due in advance; or
      the
      Borrower fails to repay the debts which are due payable under other loan
      contracts and agreements it makes; 

    5)
      The
      investors of the Borrower withdraw capitals, transfer assets or shareholdings
      at
      will; 

    6)
      The
      Borrower fails to in time provide or add, at the requirements of the Lender,
      another guarantee which will be accepted by the Lender when the guarantor (or
      guaranty or pawn) has lost or will lost corresponding guarantee capability
      with
      the Loan hereunder or the guarantor acts against the guarantee documents it
      makes; or 

    7)
      The
      Borrower violates other terms and conditions of the Contract (except for this
      clause). 

    7-2
      It
      will constitute a breach if the Lender fails to grant the Loan to the Borrower
      according to Article 3.2.2 hereof, except for breaches by the Borrower as
      mentioned in Article 7.1 hereof. 

    

    Article
      8
      Breach Disposal 

    

    8-1
      In
      case of one or several breaches as mentioned in Article 7 hereof, the Lender
      may
      take one or several measures according to the fact: 

    1)
      to
      declare the principal of the Loan hereunder is due in advance, to settle all
      outstanding interests and to exercise recourse in any way against the Borrower
      or the guarantor; 

    2)
      to
      collect penalty interests at additional 50% of the lending interest rate on
      the
      overdue day and charge compound interests, in case of overdue payment of RMB
      loan; to collect penalty interests at additional 100% of the lending interest
      rate on the appropriation day and charge compound interests, in case of
      appropriation of RMB loan; to collect penalty interests at 20% floating upward
      the original interest rate and charge compound interests, in case of overdue
      payment and appropriation of foreign exchange loan; 

    3)
      to
      make deduction from all or part of deposit accounts of the Borrower at the
      Lender and other branches in the system of the head office of the Lender;

    4)
      to
      cancel the credit line unused by the Borrower; 

    5)
      to
      require the Borrower to provide other guarantees accepted by the Lender;

    6)
      to
      take other necessary measures according to laws. 

    

    In
      such
      case, the Borrower agrees to waive the right of defence without conditions
      and
      shall compensate the Lender for all losses due to such breach. 

    

    8-2
      In
      case of breach, the Borrower shall be accountable for relevant costs and
      expenses (including attorney fee, litigation cost and auction fee, etc.)
      incurred by the Lender for realizing the creditor’s right. 

    8-3
      Where
      the Lender has one of breaches as mentioned in Article 7.2 hereof, the Lender
      shall be accountable for material losses of the Borrower arising from obtaining
      substitutable loan in financial market, namely, the balance between the
      interests of substitutable loan from the financial market and those of the
      Loan
      from the Lender; besides, the Lender needs not to assume any other liability.
      

    

    
      
        
        

      

      
        98

        
          

        

      

      
        
        

      

    

    Article
      9
      Miscellaneous 

    

    9-1
      In
      case of conflicts of the Contract in force with pertinent laws, regulations
      and
      decrees promulgated by the State, the Parties shall negotiate a supplementary
      contract under the precondition to ensure the safety and benefit of the Loan
      of
      the Lender. The Lender reserves the right to accelerate maturity of the Loan
      and
      exercise immediately recourse. 

    9-2
      The
      Contract shall be applied to the laws of the People’s Republic of China. Any
      disputes relating to the Contract shall be subject to the jurisdiction of the
      People’s Court at the place where the main office of the Lender is located.

    9-3
      The
      Contract shall become effective after the Parties stamp official seals and
      the
      legal representatives or authorized representatives sign or seal respectively
      and be terminated when the principal, interests and expenses of the Loan
      hereunder have been repaid. 

    9-4
      The
      loan application, loan voucher, corresponding guarantee contract and relevant
      documents and materials provided by the Borrower shall be inseparable part
      of
      the Contract and have equal legal force with the Contract. 

    9-5
      The
      original of the Contract shall be in two copies, one of which shall be kept
      by
      either party hereto; the duplicates hereof shall be kept for reference.

    

    

    Signature:
      

    

    When
      executing the Contract, the Parties hereto have no objection to any of the
      terms
      and conditions of the Contract and have understood exactly and correctly the
      legal meanings of relevant rights, obligations and liabilities of the Parties
      hereunder. 

    

    The
      Borrower (seal): Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd. 

    Legal
      representative or authorized representative (signature or seal): Yu
      Zuosheng

    Opening
      bank and accounts: the Bank of China Jinghai Sub-branch,
      07546008093001

    

    The
      Lender (seal): Shanghai
      Pudong Development Bank Tianjin Branch

    Legal
      representative or authorized representative (signature or seal): Li
      Changmin

    

    

    

    Date
      of
      conclusion: July 18, 2005 

     

    

    

    

    
      
        
        

      

      
        99

        
          

        

      

      
        
        

      

    

    

    

    

    

    

    

    Shanghai
      Pudong Development Bank

    

    

    

    

    Guarantee
      Contract for Short-term Loan 

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
        

      

      
        100

        
          

        

      

      
        
        

      

    

    

    Shanghai
      Pudong Development Bank 

    

    Guarantee
      Contract for Short-term Loan

    

    No.
      7707200528005401

    

    Guarantor:
      Tianjin Sheng Da Steel Mill Co.,Ltd. 

    Legal
      address: 

    Correspondence
      address: 

    

    Lender:
      Shanghai Pudong Development Bank Tianjin Branch 

    Add.:
      

    

    Whereas
      the Loan Contract (No. 7707200528005401) (hereinafter referred to as the “Loan
      Contract”) is concluded on July 18, 2005 by and between Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd.
      (hereinafter referred to as the “Borrower”) and the Lender, this Contract is
      hereby entered into through negotiation by the Guarantor and the Lender on
      the
      basis of equality in accordance with pertinent laws and regulations of the
      People’s Republic of China for the purpose of ensuring realization of the
      creditor’s right of the Lender. This Contract shall be as one of the
      preconditions for the Borrower drawing the Loan under the Loan Contract.

    

    
      	
              13.

            	
              The
                primary creditor’s right guaranteed hereunder is the principle of the Loan
                covering twenty
                million yuan only,
                which is granted by the Lender to the Borrower according to the Loan
                Contract. The Guarantor hereby acknowledges that effective evidences
                proving the debt owed by the Borrower shall be subject to the accounting
                vouchers issued by the Lender according to the rules of practice;
                the Loan
                shall be mature on July 17, 2006. “Maturity (expiration)” as mentioned in
                the Contract includes the circumstance that the Lender declares the
                Loan
                is due in advance. 

            

    

    
      	
              14.

            	
              The
                scope of guarantee hereunder includes the principal, interests, penalty
                interests, compound interests, penalty and damages of the Loan under
                the
                Loan Contract, which are due payable but have not been paid by the
                Borrower, and litigation cost, attorney fee and other costs incurred
                for
                realization of its creditor’s
                right.

            

    

    
      	
              15.

            	
              The
                guarantee as mentioned in this Contract shall be of joint and several
                liability. The Guarantor shall, together with the Borrower, assume
                joint
                and several liability for the debts within the guarantee scope. As
                for all
                debts which are due payable but are not repaid by the Borrower, the
                Guarantor shall make repayment to the Lender as the first debtor
                without
                any condition; meanwhile, the Guarantor hereby empowers the Lender
                to make
                deduction directly from the deposit accounts of the Guarantor at
                the
                branches of Shanghai Pudong Development Bank, or from relevant accounts
                of
                the Guarantor at other financial institutions.

            

    

    
      	
              16.

            	
              The
                guarantee hereunder shall be independent, irrevocable and constant.
                The
                Guarantee Contract will not be impacted by effectiveness and validity
                of
                the master contract, nor be null and revocable due to invalidity
                or
                rescission of the Loan Contract. The liability for guarantee of the
                Guarantor will not be varied from consent of the Lender concerning
                extension or reconstruction of the Loan, or from alteration of the
                Loan
                Contract under agreements between the Lender and the Borrower, or
                from
                change of operation or management system of the Borrower and the
                Guarantor. If the Lender and the Borrower negotiate to alter the
                Loan
                Contract or extend or reconstruct the Loan or the Borrower changes
                its own
                operation or management system without written consent of the Guarantor,
                the Guarantor shall also be accountable for guarantee.
                

            

    

     

    
      
        
        

      

      
        101

        
          

        

      

      
        
        

      

    

    
      	
              17.

            	
              The
                guarantee term of the Guarantor hereunder shall be two years as of
                the
                date when the performance period of primary debt for the Debtor expires.
                The performance period of primary debt shall be deemed mature if
                the Loan
                is declared due in advance. In such case, the Lender can require
                the
                Guarantor to assume the guarantee liability at any time within the
                guarantee term, and the Guarantor shall do so. As for the Loan extended
                and reconstructed with consent of the Lender, the guarantee term
                of the
                Guarantor shall be two years as of the date when the new performance
                period of primary debt for the Debtor expires.

            

    

    The
      Guarantor shall assume guarantee liability within the guarantee term hereunder.
      Where the Borrower fails to repay debts according to the Loan Contract, the
      Lender may require the Guarantor to assume the guarantee liability within the
      guarantee term; where the Lender does not require the Guarantor to do so within
      the guarantee term, the Guarantor shall be exempt from guarantee liability.
      

    
      	
              18.

            	
              If,
                during the guarantee term, the Lender transfers the primary creditor’s
                right to a third party according to laws, the Guarantor shall continue
                to
                assume the guarantee liability to the extent of the original scope
                of
                guarantee. Within the guarantee term the Borrower may not transfer
                the
                debt, except with written consent of the Lender and the Guarantor.
                

            

    

    
      	
              19.

            	
              The
                Guarantor hereby makes following statements and guarantees to the
                Lender.
                The statements and guarantees shall be in force after signed and
                be
                effective and valid within the term of the Contract.
                

            

    

    
      	 	
              14)

            	
              The
                Guarantor is of the enterprise or other economic organization registered
                in accordance with Chinese laws. The Guarantor owns sufficient rights
                to
                all of its assets, has full capability for civil conduct and assumes
                civil
                liability independently. 

            

    

    
      	 	
              15)

            	
              The
                Guarantor has authorized the representative to execute the Contract.
                All
                terms and conditions of the Contract reflect true meaning of the
                Borrower
                and have legal binding upon the
                Guarantor.

            

    

    
      	 	
              16)

            	
              Execution
                and performance of the Contract by the Guarantor will not violate
                the
                laws, regulations, decrees, judgments, rulings and orders which the
                Borrower shall abide by, or conflict with the articles of association
                of
                the Guarantor, or any contract or agreement which the Guarantor executes
                or any other obligations which the Guarantor shall assume.
                

            

    

    
      	 	
              17)

            	
              The
                Guarantor ensures that all financial statements issued by it comply
                with
                pertinent Chinese laws and regulations and reflect truly and justly
                the
                financial situation of the Guarantor, and all documents and materials
                involved in the Contract are true, effective, complete, exact and
                free of
                camouflage. 

            

    

    
      	 	
              18)

            	
              The
                Guarantor does not conceal any litigations, arbitrations, administrative
                proceedings, property preservation measures or enforcement procedures
                which have occurred or will occur and will or may affect its execution
                or
                performance of the Contract or may cause material adverse impact
                upon its
                operation or finance, or other events which may cause material adverse
                impacts. 

            

    

     

    
      
        
        

      

      
        102

        
          

        

      

      
        
        

      

    

    
      	
              20.

            	
              Within
                the guarantee term the Guarantor further makes undertakings to the
                Lender
                as follows: 

            

    

    
      	 	
              19)

            	
              to
                make operation by law, cooperate actively with the Lender in supervising
                and inspecting its operation and, at the requirements of the Lender,
                in
                time provide financial statements and other relevant materials of
                the
                Lender; 

            

    

    
      	 	
              20)

            	
              not
                to, without written consent of the Lender, alter materially its articles
                of association and business scope, or sell, lease, transfer or dispose
                in
                other ways all or large part of its assets, or at will change its
                management or operation system and conduct other acts which may affect
                the
                rights and interests of the Lender, so that it is sufficient to cause
                material adverse impacts upon its financial situation or capability
                of
                performance of its obligations hereunder.

            

    

    
      	 	
              21)

            	
              to
                ensure the level of its obligations hereunder will not be less than
                its
                other obligations free of real right guarantee, and, presently and
                in
                future, not to conclude any contract or agreement to which its guarantee
                obligations hereunder shall be subject.

            

    

    
      	 	
              22)

            	
              to
                notify the Lender in writing within three days in case the Guarantor
                is
                aware of the facts which have made, or may make, material adverse
                impacts
                upon its finance or capability in performing its obligations hereunder.
                

            

    

    
      	 	
              23)

            	
              to
                notify the Lender in writing ten days in case of alteration of legal
                representative, authorized representative, correspondence address,
                name of
                the enterprise or material changes in finance and human resources.
                

            

    

    
      	 	
              24)

            	
              to
                make payment all sums due in time and perform its obligations hereunder.
                

            

    

    
      	
              21.

            	
              In
                case of conflicts of the Contract in force with pertinent laws,
                regulations and decrees promulgated by the State, the Parties shall
                negotiate a supplementary contract under the precondition to ensure
                the
                safety and benefit of the Loan of the Lender.

            

    

    
      	
              22.

            	
              The
                Contract shall become effective after the Parties stamp official
                seals and
                the legal representatives or authorized representatives sign or seal
                respectively and be terminated when the principal, interests and
                expenses
                of the Loan owed by the Borrower hereunder have been repaid; nevertheless,
                

            

    

    
      	 	
              25)

            	
              the
                Contract shall be in force on the date which the master contract
                is
                concluded, if the Contract is made prior to the master contract;
                

            

    

    
      	 	
              26)

            	
              unless
                otherwise stipulated by the Parties hereto, the Contract shall be
                terminated with an extension period of six months as of the date
                of early
                repayment, if the Borrower repays all of the Loan in advance. If
                the
                Borrower does not repay the Loan in full amount in advance, the Guarantor
                shall still assume guarantee liability for outstanding debt.
                

            

    

    
      	
              23.

            	
              The
                Contract shall be applied to the laws of the People’s Republic of China.
                Any disputes relating to the Contract shall be subject to the jurisdiction
                of the People’s Court at the place where the main office of the Lender is
                located. 

            

    

    
      	
              24.

            	
              The
                original of the Contract shall be in two copies, one of which shall
                be
                kept by either party hereto; the duplicates hereof shall be kept
                for
                reference. 

            

    

    

    When
      executing the Contract, the Parties hereto have no objection to any of the
      terms
      and conditions of the Contract and have understood exactly and correctly the
      legal meanings of relevant rights, obligations and liabilities of the Parties
      hereunder. 

    

    
      
        
        

      

      
        103

        
          

        

      

      
        
        

      

    

    The
      Guarantor (seal): Tianjin
      Sheng Da Steel Mill Co.,Ltd. 

    Legal
      representative or authorized representative (signature or seal): Wu
      Congfeng

    Opening
      bank and accounts: Agricultural Bank of China Tianjin Daqiuzhuang Sub-branch,
      0069874078254

    

    The
      Lender (seal): Shanghai
      Pudong Development Bank Tianjin Branch

    Legal
      representative or authorized representative (signature or seal): Li
      Changmin

    

    

    

    Date
      of
      conclusion: July 18, 2005 

    

    

    

    
      
        
        

      

      
        104

        
          

        

      

      
        
        

      

    

    

    

    

    Contract
      for (Short-term) Loan in RMB

    

    No.
      JZYJXZ(2005)003-1

    

    The
      Borrower: Tianjin Daqiuzhuang Metal Sheet Co., Ltd. 

    Business
      License of Enterprise Legal Person: No. QHJZZ016433

    Legal
      representative: Yu Zuosheng 

    Domicile:
      Daqiuzhuang, Jinghai, Tianjin 

    Opening
      bank and accounts: Bank of China Tianjin Jinghai Sub-Branch, 07546008093001
      

    Contact
      method: 60730082, 13332025839 

    

    The
      Lender: Bank of China Tianjin Jinghai Sub-Branch 

    Principal:
      Duan Zhichen 

    Domicile:
      No. 31 Shengli Road, Jinghai Town, Jinghai County, Tianjin 

    Contact
      method: 28946421

    

    Whereas
      the Lender agrees to grant short-term RMB loan to the Borrower, the Contract
      is
      hereby entered into through equal negotiation. 

    

    Article
      1
      Sum 

    

    The
      total
      sum of the Loan hereunder is (say) nine million yuan only, (yuan) 9,000,000.00.
      

    

    Article
      2
      Term 

    

    The
      term
      of the Loan hereunder is 12
      months
      from the agreed drawing day to the agreed last repayment day. “Drawing day” as
      mentioned herein means the commencement date of drawdown period if the time
      limit for drawing agreed is a special period. 

    

    Article
      3
      Purpose 

    

    The
      Loan
      hereunder shall be used for following purposes: 

    
      	
              1)

            	
              purchase
                of raw materials; 

            

    

    
      	
              2)

            	
              ___________;
                

            

    

    
      	
              3)

            	
              ___________.
                

            

    

    The
      Borrower may not change the purpose without written consent of the Lender.
      

    

    Article
      4
      Interest Rate and Interests 

    

    The
      loan
      interest rate will be 10%
      floating upward 5.58% of the benchmark rate,
      which
      shall be fixed within the term of the Contract. 

    The
      interests of the Loan shall be calculated from the actual drawing day according
      to actual amount drawn and occupation days on the basis of 360 days a year.
      

    The
      Borrower shall pay the interests according to the following first
      method:

     

    
      
        
        

      

      
        105

        
          

        

      

      
        
        

      

    

    
      	
              1)

            	
              The
                Borrower shall pay the interests once every quarter, namely, March
                20,
                June 20, September 20 and December 20 shall be the interest payment
                day.
                

            

    

    If
      the
      last repayment day as to the principal of the Loan is not the interest payment
      day, the Borrower shall pay off all interests payable on the last repayment
      day.

    
      	
              2)

            	
              The
                Borrower shall pay the interests once every month, namely, each
                20th
                day shall be the interest payment day.

            

    

    If
      the
      last repayment day as to the principal of the Loan is not the interest payment
      day, the Borrower shall pay off all interests payable on the last repayment
      day.

    
      	
              3)

            	
              The
                Borrower shall pay the interests once every month, namely, the
                corresponding day of disbursement date shall be the interest payment
                day.
                

            

    

    

    Article
      5
      Conditions for Drawing 

    

    The
      Lender shall have the right to refuse the drawing application of the Borrower
      if
      the following conditions cannot be satisfied: 

    
      	
              1)

            	
              the
                written drawing application and relevant documents proving loan purpose
                shall be submitted five days in advance;

            

    

    
      	
              2)

            	
              the
                Loan Contract and relevant annexes are in force;
                

            

    

    
      	
              3)

            	
              the
                Guarantee Contract as described in Article 9 hereof is in force;
                

            

    

    
      	
              4)

            	
              the
                Borrower has opened accounts of drawing, interest payment, expense
                payment
                and loan repayment according to the requirements of the Lender;
                

            

    

    
      	
              5)

            	
              the
                Borrower has submitted the Lender the resolutions and the power of
                attorney which prove that the board of directors or other authority
                approve execution and performance of the Contract;
                

            

    

    
      	
              6)

            	
              the
                Borrower has submitted the Lender the list of persons who has the
                power to
                execute the Contract and documents and bills relating to the Contract,
                as
                well as their specimen signatures;

            

    

    
      	
              7)

            	
              none
                of breaches described in Article 11 hereof occurs; or
                

            

    

    
      	
              8)

            	
              other
                drawing conditions stipulated by laws and between the Parties have
                been
                satisfied. 

            

    

    

    Article
      6
      Drawing Period 

    

    The
      Borrower shall draw the Loan according to the following first method:

    
      	
              1)

            	
              The
                Borrower shall draw the Loan on November 14, 2005 on once occasion;
                

            

    

    
      	
              2)

            	
              The
                Borrower shall draw the sum stipulated herein within ____ day(s)
                as of the
                __ day of ________. 

            

    

    

    The
      Lender shall have the right to refuse to disburse any amount which is not drawn
      beyond the said time limit. If the Lender agrees to make disbursement, it shall
      have the right to charge commitment fee against such delayed amount according
      to
      the interest countable of such amount; otherwise, the Lender shall have the
      right to charge commitment fee according to the interest countable.

    

    
      
        
        

      

      
        106

        
          

        

      

      
        
        

      

    

    Article
      7
      Procedures for Drawing 

    

    Before
      drawing, the Borrower shall at the requirements of the Lender submit the drawing
      application and go through other drawing procedures. 

    

    Article
      8
      Repayment 

    

    The
      Borrower must repay the Loan hereunder strictly subject to the following
      repayment plan: 

    
      	
              Times

            	
              Dates

            	
              Sum

            	
              Times

            	
              Dates

            	
              Sum

            
	
              1

            	
              November
                3, 2006

            	
              9,000,000

            	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

    

     

    If
      the
      Borrower intends to adjust any part of the said repayment plan, it must submit
      a
      written application 5 days prior to corresponding maturity date. Unless
      otherwise stipulated, any alteration to the repayment plan shall be confirmed
      by
      the Parties in writing. 

    In
      case
      of several loan contracts which are due between the Parties, the Lender shall
      have the right to decide on the order of the contract to be performed by the
      Borrower. 

    The
      Borrower may make early repayment, provided that it shall notify the Lender
      20
      days in advance. The Lender shall have the right to charge compensation fee
      against the interests receivable of such amount repaid early. The amount of
      early repayment shall be used first to repay the Loan which is due finally,
      namely, repayment shall be made in a reverse order. The Borrower may not require
      for further drawing of the amount to be repaid early with approval of the
      Lender. 

    

    Article
      9
      Guarantee 

    

    The
      Loan
      hereunder shall be guaranteed according to the following second method:

    
      	
              1)

            	
              _____
                provides repayment guarantee with several and joint liability and
                the
                Guarantee Contract shall be made, No. ___________________;
                

            

    

    
      	
              2)

            	
              Tianjin
                Daqiuzhuang Metal Sheet Co., Ltd. provides mortgage and the Maximum
                Deposit Mortgage Contract, No. JZYJXZ(2005) 003, has been concluded;
                

            

    

    
      	
              3)

            	
              _____
                provides pawn guarantee and the Pawn Contract shall be made, No.
                ___________________.

            

    

    

    The
      Lender shall have the right to require the Borrower to provide another guarantor
      or new guaranties or pledges to guarantee the Loan hereunder if the guarantor’s
      capability of repayment decreases obviously due to deterioration of finance
      or
      other reasons, or the guarantor’s capability of guaranty weakens or loses due to
      depreciation, loss or damage of guaranties or pledges. 

    

    
      
        
        

      

      
        107

        
          

        

      

      
        
        

      

    

    Article
      10 Statements and Guarantees 

    

    The
      Borrower states as follows: 

    
      	
              1)

            	
              the
                Borrower has been registered and exists in accordance with laws;
                

            

    

    
      	
              2)

            	
              the
                Borrower has obtained necessary authorization for executing the Contract;
                

            

    

    
      	
              3)

            	
              all
                documents, materials, statements and vouchers provided to the Lender
                by
                the Borrower are exact, true, complete and effective;
                

            

    

    
      	
              4)

            	
              the
                Borrower does not conceal any of the following circumstances which
                have
                occurred, are occurent or may affect judgment of its capability of
                performance of the Contract: 

            

    

    
      	 	
              a.

            	
              the
                Borrower or its main leaders are involved in significant breach of
                violation of laws or are claimed; 

            

    

    
      	 	
              b.

            	
              breaches
                of the Borrower under other Contracts;

            

    

    
      	 	
              c.

            	
              debts
                and contingent debts borne by the Borrower or mortgage and pawn to
                a third
                party; 

            

    

    
      	 	
              d.

            	
              litigations
                and arbitrations in dispute; and 

            

    

    
      	 	
              e.

            	
              other
                circumstances which may impact finance and repayment capability of
                the
                Borrower. 

            

    

    

    The
      Borrower undertakes as follows: 

    

    
      	
              1)

            	
              the
                Borrower will at the requirements of the Lender submit up-to-date
                financial statements on a monthly basis and the audited financial
                statements of previous year in the first quarter every year; the
                Borrower
                will provide from time to time at the requirements of the Lender
                documents
                and materials, including, but not limited to, reports and statements
                on
                operation and finance of the Borrower;

            

    

    
      	
              2)

            	
              if
                the Borrower has concluded or will conclude a counterguarantee agreement
                or similar agreements with the guarantor hereunder concerning its
                guarantee obligation, the agreement will not impact any right of
                the
                Lender hereunder; 

            

    

    
      	
              3)

            	
              the
                Borrower will accept the credit inspection and supervision conducted
                by
                the Lender and will assist and cooperate sufficiently;
                

            

    

    
      	
              4)

            	
              the
                Borrower will notify the Lender in advance if it reduces registered
                capital, changes property materially or adjusts operation mode (including,
                but not limited to, joint venture or cooperation with foreigners;
                division, merger, acquisition or being annexed; reconstruction,
                establishment or rebuilding of a joint stock company; change of such
                operation modes as lease, contract, joint management and custody).
                Where
                the said conducts will impact the Borrower’s capability of repayment
                adversely, the consent of the Lender shall be obtained.
                

            

    

    
      	
              5)

            	
              the
                Borrower may not dispose its own assets in a way which may decrease
                its
                capability of repayment. The Borrower shall notify the Lender in
                time when
                providing guarantee to a third party or mortgage or impawn its own
                assets,
                and the Borrower shall guarantee that all debts guaranteed may not
                be more
                than one times more than its net assets.

            

    

    
      	
              6)

            	
              the
                debts from the Lender shall be repaid earlier than its loans offered
                by
                shareholders of the Borrower, and may not be later than the same
                kind of
                debt from other creditors; 

            

    

    The
      Borrower shall obtain the written consent of the Lender before it applies to
      other banks for loans or increases other debts. 

    (this
      stipulate shall be as alternative clause mainly applicable to loans applied
      by
      institutes) 

    As
      for
      the real estate development project in which the Borrower uses the Loan, the
      quantity of individual housing consumption loans conducted at the Lender shall
      be more than total amount of individual housing consumption loans as to such
      real estate development project. 

    (this
      stipulate shall be as alternative clause mainly applicable to loans for real
      estate development projects ) 

    The
      engineering project contractor does not pay any funds in advance for
      construction of the real estate project developed by the Borrower. If the
      contractor has made advance payment, the Borrower shall submit the Lender the
      written documents proving that the contractor surrenders the priority right
      on
      advance payment of the project. 

    (this
      stipulate shall be as alternative clause mainly applicable to loans for real
      estate loans)

     

    
      
        
        

      

      
        108

        
          

        

      

      
        
        

      

    

    
      	
              7)

            	
              the
                Borrower undertakes to notify the Lender in time in case of any of
                the
                following circumstances: 

            

    

    
      	 	
              a.

            	
              breaches
                of the Contract or any other contracts;

            

    

    
      	 	
              b.

            	
              alteration
                of subordinate relations, or change of senior management, or amendment
                of
                articles of association and material adjustment of interior organization
                organs of the Borrower; 

            

    

    
      	 	
              c.

            	
              difficulties
                in operation and depravation of finance of the Borrower;
                

            

    

    
      	 	
              d.

            	
              other
                circumstances which will impact the Borrower’s capability of repayment.
                

            

    

    
      	
              8)

            	
              the
                Borrower must deposit sufficient funds for payment at least 10 days
                in
                advance of maturity date of each part of principal and interests.
                

            

    

    
      	
              9)

            	
              relevant
                settlement business as to the Loan shall be completed at the Lender
                or
                other branches or offices of the Bank of China, and the settlement
                amount
                shall satisfy the requirements of the Lender.

            

    

    
      	
              10)

            	
              the
                Borrower may not distribute any dividends or bonus to its shareholders
                in
                any way if the net profit after-tax in corresponding fiscal year
                is zero
                or negative, or the profit after tax is insufficient to make up
                accumulative losses of previous fiscal year, or profit before tax
                is not
                used to repay the principal, interests and expenses payable within
                the
                fiscal year or the profit before tax is insufficient to repay the
                principal, interests and expenses payable in following period.
                

            

    

    

    Article
      11 Breach of Agreement and Disposal 

    

    Where
      the
      Borrower neither makes repayment on schedule nor reaches an agreement with
      the
      Lender concerning extension, the Lender shall have the right to charge penalty
      interest against the overdue amount as of the overdue day according to the
      penalty interest rate on overdue loan, until the Borrower repays all of
      principals and interests. Where the Borrower fails to use the Loan according
      to
      the stipulated purpose, the Lender shall have the right to charge penalty
      interest against amount misappropriated as of the misappropriation day according
      to the penalty interest rate on misappropriation, until the Borrower repays
      all
      of principals and interests. 

    

    The
      penalty interest rate on overdue loan shall be 30% floating upwards the loan
      interest rate stipulated herein; the penalty interest rate on misappropriation
      shall be 50% floating upwards the loan interest rate stipulated herein.

    

    Where
      the
      Borrower fails to pay interests in full amount on schedule, the Lender shall
      have the right to charge compound interest against the amount, of which the
      interests are due but not paid, on a quarterly (monthly/quarterly) basis at
      the
      same penalty interest rate same of the principal of the Loan. Where a loan
      is
      repaid beyond the time limit and misappropriated, compound interest shall be
      charged according to the penalty interest rate on misappropriation. In case
      of
      normal use of the principal of the Loan, the compound interest shall be charged
      according to the penalty interest rate on overdue loan. 

    

    
      
        
        

      

      
        109

        
          

        

      

      
        
        

      

    

    In
      case
      of adjustment of the loan interest rate stipulated herein, penalty interests
      and
      compound interests shall be calculated in periods as of the date of adjustment.
      

    

    In
      case
      of any of the following circumstances, the Lender shall have the right to refuse
      drawing by the Borrower or cancel the part of the Loan which has not been drawn,
      and to declare both principal and interests of the Loan hereunder are due
      immediately: 

    

    
      	
              1)

            	
              the
                Borrower fails to repay the principal or interests beyond the time
                limit;
                

            

    

    
      	
              2)

            	
              the
                Borrower repays the Loan beyond the time limit or misappropriates
                the
                Loan; 

            

    

    
      	
              3)

            	
              the
                statements made by Borrower in Article 10 are untrue or violate its
                other
                undertakings; 

            

    

    
      	
              4)

            	
              the
                Borrower is in breach of other contracts;

            

    

    
      	
              5)

            	
              the
                guarantor, the mortgager or the pawnor is in breach of the guarantee
                contract, which affect the Borrower to perform its obligations hereunder;
                

            

    

    
      	
              6)

            	
              the
                Borrower stops business or is dissolved, revoked or bankrupt;
                

            

    

    
      	
              7)

            	
              the
                finance of the Borrower or the guarantor is deteriorated severely;
                or
                

            

    

    
      	
              8)

            	
              the
                Borrower fails to provide new guaranties at the requirements of the
                Lender
                after the guaranties or pledges are depreciated, ruined, damaged,
                sealed
                up or frozen. 

            

    

    

    Article
      12 Deduction 

    

    The
      Borrower agrees that the Lender can deduct any amount payable by the Borrower
      under the Contract directly from the Borrower’s accounts at branches or offices
      of the Bank of China. 

    

    Article
      13 Taxes 

    

    All
      taxes
      and expenses relating to conclusion and performance of the Contract and dispute
      settlement, including, but not limited to, stamp tax, interest withholding
      tax,
      litigation cost, enforcement fee, attorney fee and notarization fee, shall
      be
      paid or reimbursed by the Borrower. 

    

    Article
      14 Setoff, Transfer and Right Reservation 

    

    The
      Borrower shall pay all amounts payable under the Contract in full amount and
      may
      not claim for setoff, unless otherwise the Lender consents. 

    The
      Borrower may not transfer its obligations hereunder to a third person without
      written consent of the Lender. 

    Toleration,
      extension, preferential treatments given to the Borrower by the Lender or
      deferment of exercise of its rights hereunder shall not impact, damage or
      restrict the Lender to enjoy all rights and interests according to the Contract,
      laws and regulations, may not be deemed as the Lender’s waiver of its rights and
      interests hereunder or release of the Borrower from any of its obligations
      hereunder. 

    

    
      
        
        

      

      
        110

        
          

        

      

      
        
        

      

    

    Article
      15 Modification and Rescission 

    

    The
      Contract may be modified, supplemented or rescinded with written consent of
      the
      Parties. Modification and supplementation of the Contract shall be inseparable
      part of the Contract. 

    Invalidity
      of any of the terms and conditions of the Contract shall not impact efficiency
      of other terms and conditions hereof. 

    

    Article
      16 Governing Law, Dispute Settlement and Jurisdiction 

    

    The
      Contract shall be applied to the laws of the People’s Republic of China.

    Any
      and
      all disputes and dissensions arising from performance of or relating to the
      Contract shall be settled through negotiation. Where negotiation fails, the
      Parties agree that the following first method shall apply: 

    
      	
              1)

            	
              to
                bring a lawsuit directly with the People’s Court having jurisdiction;
                

            

    

    
      	
              2)

            	
              to
                submit to _____ Arbitration Committee for arbitration.
                

            

    

    

    Article
      17 Annexes 

    

    The
      following annexes and other annexes confirmed by the Parties shall be
      inseparable part of the Contract and have equal force with the Contract:

    
      	
              1)

            	
              Due
                bill; 

            

    

    
      	
              2)

            	
              Application
                for Drawing; 

            

    

    
      	
              3)

            	
              ______;
                

            

    

    
      	
              4)

            	
              _______.
                

            

    

    

    Article
      18 Effectiveness 

    

    The
      Contract shall become effective with signature and seal by the legal
      representatives or authorized signatories of the Parties. 

    The
      Contract shall be in two copies with equal force, one of which shall be kept
      by
      either party hereto. 

    

    Article
      19 Special Notice 

    

    The
      Borrower has negotiated sufficiently with the Lender concerning all terms and
      conditions of the Contract.

    The
      Lender has reminded the Borrower to pay special attention to the terms and
      conditions of the Contract concerning to the Parties’ rights and obligations and
      to understand comprehensively and exactly. The Lender has explained for
      corresponding terms and conditions hereof at the requirements of the Borrower.
      

    The
      Parties to the Contract have consistent understanding of the meanings of the
      Contract. 

     

    
      
        
        

      

      
        111

        
          

        

      

      
        
        

      

    

    The
      Borrower: Tianjin Daqiuzhuang Metal Sheet Co., Ltd. (official seal)

    Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd.

    Legal
      representative (or authorized signatory): 

    

    The
      Lender: Bank of China Tianjin Jinhai Sub-branch (official seal) 

    Bank
      of
      China Tianjin Jinhai Sub-branch

    Principal
      (or authorized signatory): 

    

    Date:
      November 4, 2005

    

    
      
        
        

      

      
        112

        
          

        

      

      
        
        

      

    

    

    

    Maximum
      Deposit Mortgage Contract

    

    No.
      JZYJXZ(2005)003 

    

    

    The
      Mortgager: Tianjin Daqiuzhuang Metal Sheet Co., Ltd. 

    Business
      License of Enterprise Legal Person: No. QHJZZ016433

    Legal
      representative: Yu Zuosheng 

    Opening
      bank and accounts: Bank of China Tianjin Jinghai Sub-Branch, 07546008093001
      

    Main
      office: Daqiuzhuang, Jinghai, Tianjin, 301606

    Tel:
      13332025839; Fax: 60730082 

    

    The
      Mortgagee: Bank of China Tianjin Jinghai Sub-Branch 

    Principal:
      Duan Zhichen 

    Main
      office: No. 31 Shengli Road, Jinghai Town, Jinghai County, Tianjin, 301600
      

    Tel:
      28946423 Fax: 28946421

     

    

    The
      Mortgager is willing to mortgage the creditor’s right of the Mortgagee with its
      legal disposal right and the properties which are listed in the Guaranty List
      attached to the Contract in order to ensure that the obligations of the Debtor
      under several master contracts, which have been or will be concluded by and
      between the Debtor, Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd.,
      and the
      Mortgagee hereunder, can be fulfilled faithfully. The Contract is hereby entered
      into through equal negotiation. Unless otherwise stipulated, the words and
      expresses herein shall be subject to the definitions in the master contract.
      

    

    Article
      1
      Master Contract 

    

    The
      master contract for the purpose of the Contract is the Agreement for Credit
      Line, No. JZYJXZ
      (2005) 003,
      concluded on November
      4, 2005
      by and
      between the Mortgagee and the Debtor, as well as single agreements made from
      time to time in accordance with the Agreement. The single agreements mean the
      Contract for (Short-term) Loan in RMB and the Contract for Loan in Foreign
      Exchange which the Debtor concludes with the Mortgagee to use actually the
      credit line approved by the Mortgagee, applicable annexes on settlement and
      financing which are chosen from the said Agreement for Credit Line, the
      Application for Settlement and Financing made by and between the Mortgagee
      and
      the Debtor at the time of conduction of settlement and financing, any other
      written agreements made by the parties as to single credit disbursement, and
      due
      bills, application letters, correspondences and vouchers on drawing which are
      submitted or issued by the Debtor to the Mortgagee and confirmed by the
      Mortgagee. 

     

    
      
        
        

      

      
        113

        
          

        

      

      
        
        

      

    

    The
      Guarantor confirms that the credit line granted by the Mortgagee to the Debtor
      according to the master contract may be used by the Debtor circularly,
      regulatively or on once occasion under the conditions stipulated in the master
      contract, for short-term loan in RMB, short-term loan in foreign exchange,
      settlement and financing. Settlement and financing business means issuance
      of
      L/C, import bill advance, shipping guarantee, packing loan, export bill
      purchase, acceptance bill discount under usance L/C and issuance of guarantee
      letter/stand-by L/C. 

    

    Article
      2
      Scope of Guarantee 

    

    The
      primary creditor’s right secured under the Contract is all of credit/financing
      stipulated in the Agreement for Credit Line, No. JZYJXZ
      (2005) 003,
      concluded on November
      3, 2005
      by and
      between the Mortgagee and the Debtor, including the balance of the
      credit/financing incurred under the Agreement and single agreements as of the
      effective day of the Agreement to November 3, 2006. The maximum price of
      creditor’s right secured is RMB16
      million
      at equal
      value. 

    

    Guarantee
      scope under the Contract covers the principal and interests (including legal
      interest, agreed interest, compound interest and penalty interest) of creditor’s
      right arising from the master contract, penalty, compensations, expenses
      incurred for realization of creditor’s right (including, but not limited to,
      litigation cost, attorney fee, notarization fee and enforcement fee, etc.),
      losses to the Mortgagee due to breach of the Debtor and other amount payable.
      

    

    Article
      3
      Guaranty Liability

    

    If,
      under
      the master contract, the Debtor fails to make repayment to the Mortgagee
      according to stipulations on any of normal repayment days or early repayment
      days, the Mortgagee shall have the right to convert the guaranties into cash
      to
      exercise priority of compensation in accordance with the Contract. 

    The
      Mortgagee points out specially that normal repayment day as mentioned herein
      is
      the interest payment day stipulated in the master contract, principal repayment
      day and interest payment day described in the repayment plan, due bill and
      application, or the date when the Debtor shall pay any funds to the Mortgagee
      according to such stipulations. The early repayment day as mentioned herein
      is
      the early repayment date applied by the Debtor and agreed by the Mortgagee,
      and
      the date when the Mortgagee according to the stipulations demands to take back
      the principal and interests of financing and/or other funds in advance from
      the
      Debtor. 

    

    Article
      4
      Settlement Period 

    

    The
      settlement period of the creditor’s right secured hereunder shall be November 3,
      2006 described in Paragraph 1 of Article 2 hereof or another day which can
      be
      fixed according to the sum of primary creditor’s right subject to applicable
      laws (earlier day may apply). 

    The
      Mortgager shall discharge the guarantee liability it assumes under the Contract
      with the guaranties as of such day. 

    

    
      
        
        

      

      
        114

        
          

        

      

      
        
        

      

    

    Article
      5
      Guaranty 

    

    The
      evaluated value of the guaranties is RMB38.437 million. Details may refer to
      the
      Guaranty List and Evaluation Report. 

    In
      case
      of properties in the guaranties, of which circulation is prohibited by laws,
      the
      Mortgager shall have the obligation to indicate in the Guaranty List.

    If,
      before the creditor’s right secured is fulfilled completely, the book value of
      the said guaranties is reduced for any reason, so that they are insufficient
      to
      guarantee all of the creditor’s right secured, the Mortgagee shall have the
      right to require the Mortgager to restore the value of the guaranties or provide
      other guarantees accepted by the Mortgagee at equal value with those
      reduced.

    If
      the
      mortgage is made with objects of which circulation is prohibited, the Mortgager
      shall assist with the Mortgagee in going through procedures for examination,
      approval and registration in accordance with pertinent laws, to ensure the
      right
      of mortgage is valid. 

    In
      case
      of loss, or obvious reduction of value, of the guaranties due to natural
      disaster, accidents, infringement and other reasons, the Mortgager shall
      promptly take measures to avoid further losses and immediately notify the
      Mortgagee in writing. 

    

    Article
      6
      Holding and Management of Guaranties 

    

    The
      guaranties hereunder shall be held by the Mortgager, but all originals of
      documents of title as to the guaranties shall be submitted to the Mortgagee.
      The
      Mortgagee agrees to at any time accept and cooperate in inspection of the
      guaranties by the Mortgagee and the institutes or individuals it appointed.
      

    The
      Mortgager shall safeguard, maintain and protect the guaranties properly and
      take
      effective measures to ensure safety and completion of the guaranties. In case
      of
      necessary reparation, the Mortgager shall conduct in time and be responsible
      for
      corresponding costs and expenses. 

    The
      Mortgager may not transfer, lease, lend, contribute with material objects,
      reconstruct, rebuild or dispose in any other ways the guaranties, partly or
      wholly, without written consent of the Mortgagee. Otherwise, the Mortgagee
      shall
      have the right to declare the said conducts by the Mortgager null and take
      relives stipulated in Article 12 hereof. 

    Earnings
      from transfer of the guaranties with consent of the Mortgagee shall be applied
      to repayment of the debt in advance, or to be drawn by the third party
      designated by the Mortgagee. 

    

    Article
      7
      Insurance of Guaranties 

    

    The
      Mortgager shall insure the guaranties at the insurer confirmed through
      negotiation between the Mortgager and the Mortgagee according to the agreed
      type
      and period, covering at least the book value of the guaranties. The contents
      of
      the policy shall comply with the requirements of the Mortgagee and may not
      embody any limited conditions which may impact the rights and interests of
      the
      Mortgagee. 

    The
      Mortgager may not suspend, terminate, modify or alter the policy with any reason
      until the principal, interests and expenses of the credit/financing secured
      under the master contract have been repaid completely, and the Mortgager shall
      take all reasonable and necessary measures to ensure the insurance stipulated
      herein valid continually. In case the Mortgager fails to pay insurance or acts
      against the said stipulations, the Mortgagee shall have the right to insure
      or
      reinsure the guaranties. In such case, the insurance premium shall be borne
      by
      the Mortgager and counted into the balance of the creditor’s right together with
      the contingent losses to the Mortgagee therefrom. 

    The
      Mortgager shall, within 10 days as of the date of the Contract, deliver the
      original of the policy concerning the guaranties to the Mortgagee and transfer
      the rights and interests hereof to the Mortgagee. The original of the policy
      shall be kept by the Mortgagee until the principal and interests of the
      credit/financing under the master contract have been repaid completely.

    If
      there
      are machine and equipments in the guaranties which have not been installed
      completely, the Mortgager shall, after completion of such installation, go
      through insurance procedures according to this clause, deliver the original
      of
      the policy to, and transfer the rights and interests hereof to, the Mortgagee.
      

    

    
      
        
        

      

      
        115

        
          

        

      

      
        
        

      

    

    Article
      8
      Registration of Mortgage 

    

    The
      Mortgager shall, within 10 days as of the date of the Contract, go through
      the
      procedures for registration of mortgage with relevant authority in accordance
      with pertinent provisions of the Guarantee Law. 

    After
      completing the procedures for registration, the Mortgager shall submit the
      copy
      of relevant documents on registration to the Mortgagee. 

    If
      there
      are machine and equipments in the guaranties which have not been installed
      completely, the Mortgager shall, within 10 days after completion of installation
      of such machine or equipments, go through the procedures for registration of
      mortgage with relevant authority. 

    

    Article
      9
      Realization of the Right of Mortgage 

    

    If
      the
      Debtor fails to repay the debts due (including those the Mortgagee declares
      due
      in advance according to the master contract) according to the master contract,
      the Mortgager shall have the right to require selling or converting the
      guaranties to repay the creditor’s right secured. The price of sale or
      conversion shall be fixed through negotiation; where negotiation fails, the
      Mortgagee shall have the right to apply to the People’s Court for auction or
      compulsory sale. 

    Earnings
      from disposal of the guaranties may not be set off the debts under the master
      contract until the expenses arising from disposal of the guaranties and the
      money which the Mortgager shall pay or repay to the Mortgagee according to
      the
      Contract have been paid. 

    When
      the
      Mortgagee requires to realize the right of mortgage, the Mortgager may not
      refuse with any reason, including, but not limited to, the Mortgagee’s failure
      to notify the Mortgager of the fact of breaches by the Debtor, disputes between
      the Mortgagee and the Debtor relating to performance of the master contract,
      toleration, extension or exemption granted to the Debtor by the Mortgagee under
      the master contract or the Mortgagee’s waiver of any of its rights under the
      master contract, the Mortgagee’s failure to exercise other real right of
      security relating to the master contract, the Mortgagee’s failure to disposal
      first of relevant documents and goods under the master contract, the Mortgagee’s
      failure to exercise other rights or relief under the master contract, and
      modification of the master contract by the Mortgagee and the Debtor.

    

    
      
        
        

      

      
        116

        
          

        

      

      
        
        

      

    

    Article
      10 Relation Between the Mortgage Contract and the Master Contract 

    

    The
      guarantee under the Mortgage Contract shall be independent. In any case the
      Mortgage Contract shall not be invalid or revocable due to invalidity or
      revocability of the master contract secured. The right of mortgage shall be
      valid and effective, although the master contract is rescinded by the parties
      concerned or is due in advance. The Mortgager shall assume guarantee liability
      to the existing debts and the losses to the Mortgagee due to reason attributable
      to the Debtor. 

    The
      parties to the master contract may negotiate to alter the contents therein
      and
      to modify the L/C or the guarantee letter/stand-by L/C, which are issued
      according to the master contract, without written consent of the Mortgager.
      However, the Mortgager shall assume guarantee liability for the altered master
      contract and the debts of the Debtor to the Mortgager arising from modified
      L/C
      or the guarantee letter/stand-by L/C. 

    The
      written consents of the Mortgager need not be obtained when Mortgagee agrees,
      according to the master contract, the Debtor to regular or use circularly the
      credit line, or entrusts all or part of its rights and obligations under the
      master contract to other branches of the Bank of China or assigns its creditor’s
      right under the master contract to a third party. However, the guarantee
      liability of the Mortgager may not be reduced or exempted thus. The Mortgager
      shall assist with the Mortgagee and such a third party in completing the
      procedures for mortgage modification or registration required by law.

     

    Article
      11 Statements and Guarantees 

    

    The
      Mortgager states and guarantees as follows: 

    

    
      	
              1)

            	
              the
                Mortgager has complete capability of civil conducts and enjoys legal
                title
                or disposal right to the guaranties;

            

    

    
      	
              2)

            	
              the
                Mortgager guarantees that there is no co-owner of the guaranties,
                or the
                Mortgager has obtained the written permission of all co-owners, if
                any.
                The Mortgager undertakes that such written permission will be submitted
                to
                the Mortgagee before executing the Contract;

            

    

    
      	
              3)

            	
              the
                Mortgager is completely aware of the contents herein. The Mortgager
                is
                willing to execute and perform the Contract, which are its true meaning.
                The legal representative or authorized signatory who signs the Contract
                on
                behalf of the Mortgager are empowered legally and validly by the
                Company.
                Execution and performance of the Contract will not violate any other
                contracts, agreements or legal documents which are binding upon the
                Mortgager. The Mortgager has obtained, or will obtain, all of necessary
                approval, permission, records or registration for establishment of
                the
                mortgage; 

            

    

    
      	
              4)

            	
              all
                documents and materials provided to the Mortgagee by the Mortgager
                are
                true, exact, complete and valid; 

            

    

    
      	
              5)

            	
              the
                Mortgager does not conceal any right of mortgage, right of pledge,
                lien or
                other rights and interests secured which have been established on
                the
                guaranties by the end of the date of the Contract;
                

            

    

    
      	
              6)

            	
              if
                the Mortgager dissolves, is revoked or (is applied) applies for
                bankruptcy, or facts which may affect the Mortgager’s finance occur, or
                new significant debts are made on the guaranties or the guaranties
                are
                sealed up, the Mortgager shall, as soon as possible, notify the Mortgagee
                without any delay; 

            

    

     

    
      
        
        

      

      
        117

        
          

        

      

      
        
        

      

    

    
      	
              7)

            	
              if
                the guaranties are projects in construction, the Mortgager guarantees
                that
                the guaranties are free of priority of compensation of any third
                party. In
                case of such priority of compensation, the Mortgager ensures to make
                such
                a third party issue a written statement proving waiver of the priority
                of
                compensation, and the written statement will be submitted to the
                Mortgagee. 

            

    

    

    Article
      12 Defect in Conclusion and Breach of Agreement 

    

    If,
      after
      conclusion of the Contract, the right of mortgage cannot be in force because
      the
      Mortgager refuses to go through or delay in mortgage registration or other
      reasons attributable to the Mortgager, it shall constitute defect in conclusion.
      If the Mortgager is the Debtor, the Mortgager shall be responsible for
      compensation to the Mortgagee to the extent of mortgage; if the Mortgager is
      a
      third person, the Mortgager shall assume irrevocable joint and several liability
      the debts to the Mortgagee under the master contract. 

    

    Any
      of
      the following circumstances shall constitute breach of the Contract by the
      Mortgager: 

    
      	
              1)

            	
              transferring,
                leasing, lending, contributing in material objects, reconstructing,
                rebuilding or disposing in any other way the guaranties, partly or
                wholly,
                in violation of Article 5 hereof; 

            

    

    
      	
              2)

            	
              disturbing
                in any way (act or omission) the Mortgagee to dispose the guaranties
                according to relevant stipulations herein;

            

    

    
      	
              3)

            	
              refusing
                or delaying cooperation with the Mortgagee in renewing mortgage
                registration, so that the mortgage is null and invalid before the
                primary
                debt has been repaid completely; 

            

    

    
      	
              4)

            	
              loss
                or damage of the guaranties kept by the Mortgager, and the insurer
                refuses
                compensation due to non-fulfillment of insurance or the guaranties
                or
                other reasons; 

            

    

    
      	
              5)

            	
              making
                untrue statements herein or acting against the guarantees it makes
                herein;
                or 

            

    

    
      	
              6)

            	
              acting
                against other stipulations herein concerning the rights and obligations
                of
                the parties concerned. 

            

    

    

    In
      case
      of breach by the Mortgager, the Mortgagee shall have the right to take one
      or
      several measures as follows: 

    
      	
              1)

            	
              reducing
                or canceling the credit line granted to the Mortgager by the Mortgagee;
                

            

    

    
      	
              2)

            	
              declaring
                the loan contract, credit loan and other contracts by and between
                the
                Mortgager and the Mortgagee due in advance;

            

    

    
      	
              3)

            	
              requiring
                the Mortgager to compensate the Mortgagee for all direct or indirect
                losses (including, but not limited to, losses of the principal, interests
                and expenses of the credit/financing under master contract) due to
                breach
                of the Mortgager; or 

            

    

    
      	
              4)

            	
              setting
                off the funds in the Mortgager’s accounts at the Mortgagee or other
                offices of the Bank of China or any creditor’s right or mortgage-backed
                creditor’s right of the Mortgagee or other offices of the Bank of China.
                

            

    

    

    
      
        
        

      

      
        118

        
          

        

      

      
        
        

      

    

    Article
      13 Expenses 

     

    The
      Mortgager shall be responsible for all costs and expenses relating to the
      Contract or the guaranties hereunder, including, but not limited to, costs
      of
      registration, notarization, insurance, transportation, storage, safekeeping,
      evaluation, reparation, maintenance and disposal under the Contract.

    

    Article
      14 Setoff and Right Reservation 

    

    Under
      the
      Contract the Mortgager may not claim for setoff of any funds to be paid to
      the
      Mortgagee, except with consent of the Mortgagee. 

    Toleration,
      extension, preferential treatments given to the Mortgager by the Mortgagee
      or
      deferment of exercise of its rights hereunder shall not impact, damage or
      restrict the Mortgagee to enjoy all rights and interests according to the
      Contract, laws and regulations, may not be deemed as the Mortgagee’s waiver of
      its rights and interests hereunder or release of the Mortgager from any of
      its
      obligations hereunder. 

    

    Article
      15 Modification, Rescission and Interpretation

    

    The
      Contract may be modified, supplemented or rescinded with written consent of
      the
      Parties. Modification and supplementation of the Contract shall be inseparable
      part of the Contract. 

    Any
      matters unstipulated herein shall be interpreted or handled subject to relevant
      terms and conditions of the master contract secured by the Contract.

    Invalidity
      of any of the terms and conditions of the Contract shall not impact efficiency
      of other terms and conditions hereof. 

     

    Article
      16 Governing Law, Dispute Settlement and Jurisdiction 

    

    The
      Contract shall be applied to the laws of the People’s Republic of China.

    Any
      and
      all disputes and dissensions arising from performance of or relating to the
      Contract shall be settled through negotiation. Where negotiation fails, the
      Parties agree that the following first method shall apply: 

    
      	
              3)

            	
              to
                bring a lawsuit directly with the People’s Court having jurisdiction,
                which is stipulated in the master contract;

            

    

    
      	
              4)

            	
              to
                apply for arbitration in accordance with the stipulations in the
                master
                contract. 

            

    

    

    Article
      17 Annexes 

    

    The
      following first, second, third, fourth and fifth documents are of annex to
      the
      Contract: 

    
      	
              1)

            	
              the
                Guaranty List; 

            

    

    
      	
              2)

            	
              the
                Certification of Title of Guaranty;

            

    

    
      	
              3)

            	
              the
                original of policy of guaranty; 

            

    

    
      	
              4)

            	
              the
                certification of guaranty registration;

            

    

    
      	
              5)

            	
              the
                Evaluation Report on Guranty; 

            

    

    
      	
              6)

            	
              other
                materials deemed necessary: 

            

    

    

    
      
        
        

      

      
        119

        
          

        

      

      
        
        

      

    

    The
      annexes to the Contract shall be inseparable part of the Contract. 

    

    Article
      18 Effectiveness 

    

    The
      Parties choose the following first circumstance: 

    

    
      	
              1)

            	
              The
                Contract shall become effective after the following conditions are
                satisfied: 

            

    

    
      	 	
              a.

            	
              the
                legal representatives or authorized signatories of the Parties hereto
                sign
                and stamp official seals; 

            

    

    
      	 	
              b.

            	
              the
                Mortgager completes the procedures for mortgage registration.
                

            

    

    
      	
              2)

            	
              The
                Contract shall become effective with signature and seal by the legal
                representatives or authorized signatories of the Parties, the later
                will
                apply. 

            

    

    

    The
      Contract shall be in three
      copies
      with equal force, one of which shall be kept by the Mortgager, the Mortgagee
      and
      the Debtor. 

    

    Article
      19 Special Notice 

    

    The
      Mortgager has negotiated sufficiently with the Mortgagee concerning all terms
      and conditions of the Contract.

    The
      Mortgagee has reminded the Mortgager to understand comprehensively and exactly
      the terms and conditions of the Contract and explained for corresponding terms
      and conditions hereof at the requirements of the Mortgager. 

    

    

    

    

    

    The
      Mortgager (signature and seal):
      Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd.

    Legal
      representative or authorized signatory:  

    Date:
      November 4, 2005

    Domicile:
      Daqiuzhuang, Jinghai, Tianjin

    

    The
      Mortgagee (signature and seal): Bank
      of
      China Tianjin Jinghai Sub-Branch 

    Authorized
      signatory:  

    Date:
      November 4, 2005

    Domicile:
      No. 31 Shengli Road, Jinghai Town, Jinghai County, Tianjin

    

    

    
      
        
        

      

      
        120

        
          

        

      

      
        
        

      

    

    Guaranty
      List

    Total
      value of guaranties: RMB38.437 million

    
      	
              No.

            	
              Name

            	
              Specification

            	
              Quantity

            	
              Location

            	
              Registration
                Authority

            	
              Insurance

            	
              Title

            	
              Title
                Certificate No.

            	
              Book
                Value

            	
              Evaluation

            	
              Appraiser

            	
              Note

            
	
              1

            	
              Collective-owned
                land use right of Tianjin Daqiuzhuang Metal Sheet Co., Ltd. (First
                Workshop) and title of overgound buildings

               

            	 	
              27,459.8
                square meters of land area and 10,616.42 square meters of the area
                of
                buildings

            	
              No.
                6, Guangtuan W. Road, Daqiuzhuang Town, Jinghai, Tianjin

            	
              Jinghai
                Bureau of Planning and State Land and Resource

            	
              insured
                of fixed assets at Tianjin Jinghai Branch of Chinese People's Property
                Insurance Co., Ltd. covering RMB38,333,300

            	
              Tianjin
                Daqiuzhuang Metal Sheet Co., Ltd

            	
              Property
                Right Certificate: No. JHZ233005096, House Ownership Certificate:
                No.
                JDJY(2001G)134, Collective-owned Land Use Certificate

            	
              RMB

              317,162,000

            	
              RMB13.5
                million

            	
              Tianjin
                Keyi Co., Ltd. Land Price Appraisal Institute Jinghai
                Branch

            	 
	
              2

            	
              Collective-owned
                land use right of Tianjin Daqiuzhuang Metal Sheet Co., Ltd. and title
                of
                overgound buildings

            	 	
              4,611.3
                square meters of land area and 2,879.74 square meters of the area
                of
                buildings

            	
              North
                Side of Yingfeng Road, Daqiuzhuang Town, Jinghai, Tianjin

            	
              Jinghai
                Bureau of Planning and State Land and Resource

            	
              insured
                of fixed assets at Tianjin Jinghai Branch of Chinese People's Property
                Insurance Co., Ltd. covering RMB38,333,300

            	
              Tianjin
                Daqiuzhuang Metal Sheet Co., Ltd.

            	
              Property
                Right Certificate: No. JHZ233003810, House Ownership Certificate:
                No.
                JDJY(2001G)049, Collective-owned Land Use Certificate

            	
              RMB

              6,617,100

            	
              RMB2.5
                million

            	
              Tianjin
                Keyi Co., Ltd. Land Price Appraisal Institute Jinghai
                Branch

            	 

    

     

    

    
      
        
        

      

      
        121

        
          

        

      

      
        
        

      

    

    

    

    The
      Mortgager (signature and seal):
      Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd.

    Legal
      representative or authorized signatory:  

    Date:
      November 4, 2005

    Domicile:
      Daqiuzhuang, Jinghai, Tianjin

    

    The
      Mortgagee (signature and seal): Bank
      of
      China Tianjin Jinghai Sub-Branch 

    Authorized
      signatory:  

    Date:
      November 4, 2005

    Domicile:
      No. 31 Shengli Road, Jinghai Town, Jinghai County, Tianjin

     

    

    
      
        
        

      

      
        122

        
          

        

      

      
        
        

      

    

    

    

    

    Credit
      Line Agreement

    

    No.
      JZYJXZ(2005)003 

    

    

    Party
      A:
      Tianjin Daqiuzhuang Metal Sheet Co., Ltd. 

    Business
      License of Enterprise Legal Person: No. QHJZZ016433

    Legal
      representative: Yu Zuosheng 

    Main
      office: Daqiuzhuang, Jinghai, Tianjin, 301606 

    Opening
      bank and accounts: Bank of China Tianjin Jinghai Sub-Branch, 07546008093001
      

    Tel:
      13332025839; Fax: 60730082 

    

    Party
      B:
      Bank of China Tianjin Jinghai Sub-Branch 

    Principal:
      Duan Zhichen 

    Main
      office: No. 31 Shengli Road, Jinghai Town, Jinghai County, Tianjin, 301600
      

    Tel:
      28917623 Fax: 28946421

     

    

    The
      following agreements are hereby made through negotiation in the principle of
      voluntarieness, equality, mutual benefit and good faith for the purpose of
      developing friendly and mutual benefit cooperation. 

    

    Article
      1
      Scope of Business 

    

    Party
      B
      grants the credit line to Party A according to the Agreement. Provided that
      the
      stipulations in the Agreement and relevant single agreements are satisfied,
      Party A may apply Party B to use circularly, regulatively or on once occasion
      the credit line for short-term loan in RMB, short-term loan in foreign exchange,
      issuance of banker’s acceptance bill and settlement and financing business
      (hereinafter referred collectively as “Single Credit Business”). For the purpose
      of this Agreement, settlement and financing business means issuance of L/C,
      import bill advance, shipping guarantee, packing loan, export bill purchase,
      acceptance bill discount under usance L/C and issuance of guarantee
      letter/stand-by L/C.

    

    Article
      2
      Type and Amount of Credit Line 

    

    Party
      B
      agrees to provide the following credit line to Party A, totally RMB16 million
      yuan; the credit line used for foreign exchange business shall be converted
      into
      RMB at the following rate of exchange: 

    
      	
              1)

            	
              ______
                publicized by Party B on the effective date of the Agreement;
                

            

    

    
      	
              2)

            	
              ______
                publicized by the State Administration for Foreign Exchange on the
                effective date of the Agreement. 

            

    

    

    
      
        
        

      

      
        123

        
          

        

      

      
        
        

      

    

    The
      credit line to be granted by Party B to Party A includes: 

    

    
      	
              1)

            	
              short-term
                credit line in RMB, 9 million yuan;

            

    

    
      	
              2)

            	
              short-term
                credit line in foreign exchange, ________;

            

    

    
      	
              3)

            	
              credit
                line of issuance of banker’s acceptance bill, 7 million yuan;
                

            

    

    
      	
              4)

            	
              credit
                line of settlement and financing (without sub-line, for issuance
                of L/C,
                import bill advance, shipping guarantee, packing loan, export bill
                purchase, acceptance bill discount under usance L/C and issuance
                of
                guarantee letter/stand-by L/C), _____;

            

    

    
      	
              5)

            	
              credit
                line of L/C issuance, _______; 

            

    

    
      	
              6)

            	
              credit
                line of import bill advance, _______;

            

    

    
      	
              7)

            	
              credit
                line of shipping guarantee,
                _______;

            

    

    
      	
              8)

            	
              credit
                line of packing loan, _______;

            

    

    
      	
              9)

            	
              credit
                line of export bill purchase (under L/C),
                _______;

            

    

    
      	
              10)

            	
              credit
                line of export bill purchase (under collection),
                _______;

            

    

    
      	
              11)

            	
              credit
                line of acceptance bill discount under usance L/C, _______;
                

            

    

    
      	
              12)

            	
              credit
                line of issuance of guarantee letter/stand-by L/C, _______________.
                

            

    

    

    The
      existing balance of credit line of Party A at Party B by the end of the date
      of
      the Agreement shall be deemed as the credit hereunder and be part of the credit
      line for Party A ratified by Party B. 

    

    Article
      3
      Use of Credit Line 

     

    Within
      the term of the credit line as stipulated in Article 5 hereof, Party A may
      use
      corresponding credit according to the following first method to the extent
      of
      the line of single credit described in previous clause: 

    
      	
              1)

            	
              circularly;
                

            

    

    
      	
              2)

            	
              on
                once occasion. 

            

    

    

    Where
      Party A needs to regulate the line of single credit as stipulated in Article
      1,
      it shall submit a written application to Party B. Party B shall decide whether
      to regulation and decide on the specific methods. 

    

    If
      Party
      B is an office of the Bank of China Tianjin Branch, settlement and financing
      business as mentioned in Article 4 hereof, which is conducted by Party A at
      the
      Bank of China Tianjin Branch with consent of Party B and contact with the Bank
      of China Tianjin Branch, shall take up corresponding line of credit hereunder
      and be subject to the management by Party B and the Bank of China Tianjin Branch
      according to the Agreement and its annexes. 

    

    
      
        
        

      

      
        124

        
          

        

      

      
        
        

      

    

    If
      the
      settlement and financing business applied by Party A is of one of the following
      circumstances, it will not take up the line of credit: 

    
      	
              1)

            	
              export
                bill purchase with corresponding documents;

            

    

    
      	
              2)

            	
              banker’s
                acceptance bill discount under the usance L/C accepted by Party B;
                

            

    

    
      	
              3)

            	
              provision
                of pledge with sufficient deposit; 

            

    

    
      	
              4)

            	
              provision
                of pledge with national debts, deposit receipt issued by the Bank
                of China
                or the banker’s acceptance bill accepted by Party B;
                

            

    

    
      	
              5)

            	
              provision
                of guarantee with the guarantee letter and stand-by L/C accepted
                by Party
                B. 

            

    

    

    The
      settlement and financing business conducted will not take up the credit line
      or
      affect the effectiveness of the terms and conditions hereof on the Parties.
      

    

    Article
      4
      Necessary Agreements for Single Credit 

    

    When
      applying to Party B for single credit hereunder, Party A shall enter into the
      following agreements (hereinafter referred collectively to as single agreements)
      with Party B, including: 

    

    
      	
              1)

            	
              Contract
                for (Short-term) Loan in RMB for short-term loan in RMB;
                

            

    

    
      	
              2)

            	
              Contract
                for Loan in Foreign Exchange for short-term loan in foreign exchange;
                

            

    

    
      	
              3)

            	
              Banker’s
                Acceptance Contract for issuance of banker’s acceptance bill;
                

            

    

    
      	
              4)

            	
              for
                settlement and financing businesses, Party A and choose or enter
                into the
                following relevant annexes or application letters together with Party
                B or
                the Bank of China Tianjin Branch: 

            

    

    
      	 	
              a.

            	
              following
                annexes which are negotiated, modified or applicable with consent
                by the
                Parties shall constitute single agreements and be inseparable part
                of the
                Agreement: 

            

    

    The
      following annexes with a “check” marked in “box” shall be applicable and with a
“x” shall be inapplicable. The Parties need not sign and seal otherwise on
      corresponding applicable annexes. Neither party may thus present any objection
      to the effectiveness of such annexes which constitute legal documents binding
      upon the Parties. 

    o
      Annex
      1: for issuance of L/C;

    o
      Annex
      2: for import bill advance;

    o
      Annex
      3: for packing loan; 

    o
      Annex
      4: for export bill purchase; 

    o
      Annex
      5: for acceptance bill discount under usance L/C; 

    o
      Annex
      6: for issuance guarantee letter/stand-by L/C. 

    
      	 	
              b.

            	
              The
                following application letters shall be submitted by Party A to Party
                B or
                the Bank of China Tianjin Branch for business of settlement and financing.
                The application letters shall constitute single agreements and be
                inseparable part of the Agreement upon completed by the Parties through
                negotiation and stamped by Party B with official seal or business
                seal:
                

            

    

     

    
      
        
        

      

      
        125

        
          

        

      

      
        
        

      

    

    
      	 	
              a.

            	
              application
                letter for issuance of L/C;

            

    

    
      	 	
              b.

            	
              application
                letter for modification of L/C;

            

    

    
      	 	
              c.

            	
              application
                letter for import bill advance;

            

    

    
      	 	
              d.

            	
              application
                letter for shipping guarantee;

            

    

    
      	 	
              e.

            	
              application
                letter for packing loan;

            

    

    
      	 	
              f.

            	
              application
                letter for drawing of packing loan;

            

    

    
      	 	
              g.

            	
              application
                letter for export financing (for export bill purchase or acceptance
                bill
                discount under usance L/C);

            

    

    
      	 	
              h.

            	
              application
                letter for issuance of guarantee letter/stand-by
                L/C;

            

    

    
      	 	
              i.

            	
              application
                letter for modification of guarantee letter/stand-by L/C.
                

            

    

    
      	
              5)

            	
              any
                other written agreements concluded by and between the Parties on
                single
                credit, and due bills, application letters, documents and vouchers
                for
                drawing submitted or issued by Party A to Party B or the Bank of
                China
                Tianjin Branch, of which the effectiveness is confirmed by Party
                A to
                Party B or the Bank of China Tianjin Branch.

            

    

    

    Single
      agreements shall be part of the Agreement. The Parties shall decide on the
      rights and obligations of either party according to single agreements and this
      Agreement, especially the balance of creditor’s right of Party B to Party A. In
      case of conflicts between single agreements and this Agreement, the former
      shall
      prevail. 

    

    Article
      5
      Term of Credit Line 

    

    The
      term
      of the credit line hereunder shall be from the effective day of this Agreement
      as stipulated in Article 18 hereof to November 3, 2006. 

    The
      term
      of the credit line may not be extended automatically. 

    Prior
      to
      expiration, the term of the credit line may be extended against written
      documents if Party A applies to Party B for extension, which is approved by
      the
      latter, and Party A provides corresponding guarantees. Written agreement for
      extension shall stipulate the term of new credit line. 

    After
      expiration of the term of the credit line, single credit conducted by the
      Parties according to the Agreement shall be performed continually subject to
      this Agreement and relevant single agreements, and the creditor’s right and
      debts therefrom will not be affected thus. 

    

    Article
      6
      Preconditions for Single Credit 

    

    The
      following conditions shall be satisfied when Party A applies for single credits
      hereunder: 

    
      	
              1)

            	
              Party
                A shall submit the application letter to Party B for corresponding
                single
                credit prior to expiration of the term of credit line as stipulated
                in
                Article 5 hereof; 

            

    

    
      	
              2)

            	
              Party
                A shall reserve documents, bills, seals, list and specimen signature
                of
                corresponding personnel relating to execution of this Agreement and
                single
                agreements and complete relevant vouchers;

            

    

    
      	
              3)

            	
              Party
                A shall open necessary accounts for completing single credits according
                to
                the requirements of Party B; 

            

    

     

    
      
        
        

      

      
        126

        
          

        

      

      
        
        

      

    

    
      	
              4)

            	
              Party
                A shall complete all of necessary legal and administrative examination
                and
                approval procedures for conducting single credit and submit, at the
                requirements of Party B, the duplication of such examination and
                approval
                documents or corresponding copies with the original; if relevant
                procedures must be handled by Party B in accordance with the state
                laws
                and regulations, Party A agrees to make all of necessary cooperation;
                

            

    

    
      	
              5)

            	
              Preconditions
                for other credits or drawing as stipulated in single agreements shall
                be
                satisfied; 

            

    

    
      	
              6)

            	
              The
                deposits have been paid or the Guarantee Agreement concluded at the
                requirement of Party B is in force;

            

    

    
      	
              7)

            	
              Party
                A agrees to make statements and guarantees as stipulated in Article
                10
                hereof; and 

            

    

    
      	
              8)

            	
              Other
                conditions to be satisfied by Party A according to Party B’s requirement.
                

            

    

    

    Article
      7
      Party B’s Obligations 

    

    Party
      B
      shall assume the obligations as follows: 

    
      	
              1)

            	
              to,
                according to the stipulations in single agreements, handle the application
                of Party A for single credit in time;

            

    

    
      	
              2)

            	
              to
                provide civilized service when handling the application of Party
                A for
                single credit; 

            

    

    
      	
              3)

            	
              to
                pay attention to and dispose properly inspection, inquiry and criticism
                of
                Party A. 

            

    

    

    Article
      8
      Party A’s Obligations 

    

    Party
      A
      shall assume the obligations as follows: 

    
      	
              1)

            	
              to,
                according to the stipulations in single agreements, pay Party B the
                expenses which shall be paid by Party A in the course of use of the
                credit
                line; the calculation method shall be subject to Party B’s regulations;
                

            

    

    
      	
              2)

            	
              to,
                according to the stipulations in single agreements, pay Party B the
                excess
                reserves on schedule; 

            

    

    
      	
              3)

            	
              to,
                according to the stipulations in single agreements, repay the debts
                to
                Party B in time, including, but not limited to, principal, interests,
                penalty interests, relevant expenses and losses arising from foreign
                exchange margin due to Party A’s breach;

            

    

    
      	
              4)

            	
              to
                use the funds granted for the purpose stipulated in this Agreement
                and
                single agreements. 

            

    

    

    Article
      9
      Guarantee 

    

    As
      for
      the debt of Party A to Party B under the Agreement and single agreements, the
      Parties agree to apply to the guarantee according to the following second
      method: 

    
      	
              1)

            	
              _________
                provides the maximum deposit guarantee and concludes the Maximum
                Deposit
                Guarantee Contract, No. __________________;

            

    

    
      	
              2)

            	
              Tianjin
                Daqiuzhuang Metal Sheet Co., Ltd.
                provides the maximum deposit guarantee and concludes the Maximum
                Deposit
                Guarantee Contract, No. JZYJXZ(2005) 003.

            

    

    

    Party
      B
      shall have the right to require Party A to provide another guarantor or new
      guaranties to guarantee the Loan of Party A to Party B hereunder if Party B
      deems that Party A or the guarantor occurs certain circumstance which may affect
      their capability of performance of the Agreement, or the guarantee documents
      become null and invalid or the guarantor’s capability of repayment decreases
      obviously due to deterioration of finance or other reasons, or the guarantor
      is
      in breach of the contract between the guarantor and Party B, including other
      guarantee contracts, or the guarantor’s capability of guaranty weakens or loses
      due to depreciation, loss or damage of guaranties or pledges. 

     

    
      
        
        

      

      
        127

        
          

        

      

      
        
        

      

    

    Article
      10 Statements and Guarantees 

    

    Party
      A
      states as follows: 

    

    
      	
              8)

            	
              Party
                A has a status of enterprise legal person established and existing
                in
                accordance with the laws, has completed and will go through the procedures
                for industrial and commercial registration on schedule and has necessary
                rights and powers to fulfill its obligations under the Agreement
                and
                single agreements in its own name; 

            

    

    
      	
              9)

            	
              Execution
                and performance of the Agreement and single agreements are true meaning
                of
                Party A, for which Party A has obtained the legal and valid authorization
                from the Company in accordance with the articles of association or
                other
                internal management documents; execution and performance hereof will
                not
                violate any agreements, contracts and other legal documents which
                are
                binding upon Party A; 

            

    

    
      	
              10)

            	
              All
                documents, financial statements, vouchers and other materials provided
                to
                Party B by Party A under this Agreement and single agreements are
                true,
                exact, complete and valid; 

            

    

    
      	
              11)

            	
              The
                background of businesses applied by Party A to Party B are true and
                valid;
                Party A will not use for money laundering and other illegal purposes;
                provision of any documents to Party B at Party B’s requirements may not be
                interpreted that Party B has obligation and liability to examine
                the truth
                and validity of transactions conducted by Party A.
                

            

    

    
      	
              12)

            	
              Party
                A does not conceal any facts which may impact Party A’s and the
                guarantor’s finance and capability of performance.
                

            

    

    

    Party
      A
      undertakes as follows: 

    

    
      	
              1)

            	
              Party
                A will submit its financial statements (including, but not limited
                to,
                yearly reports, quarterly reports and monthly statements) and other
                relevant materials to Party B periodically;

            

    

    
      	
              2)

            	
              Party
                A will accept and assist with Party B in inspection and supervision
                conducted by Party B concerning use of the credit line and relevant
                production, operation and finance; 

            

    

    
      	
              3)

            	
              Where
                Party A has concluded, or will conclude, the counterguarantee agreement
                or
                similar agreements with the guarantor hereunder concerning its guarantee
                obligations, and such agreements will not impact any of Party B’s rights
                hereunder; 

            

    

    
      	
              4)

            	
              Party
                A shall as soon as possible notify Party B without any delay in case
                of
                circumstances which may affect Party A’s or the guarantor’s finance and
                capability of performance, including, but not limited to, reduction
                of
                registered capital, transfer of material assets or shareholdings,
                assumption of great debts or establishment of new material debts
                on the
                guaranties, sealing-up of the guaranties, dissolution, revocation
                and
                application for bankruptcy; 

            

    

    
      	
              5)

            	
              Party
                A shall obtain written consent of Party B in advance of division,
                merger,
                joint management, joint venture or cooperation with foreigners,
                contracting, reconstruction, system reform, plans for listing or
                change in
                operation modes in any way; 

            

    

    
      	
              6)

            	
              As
                for matters unstipulated herein, Party A agrees to handle subject
                to
                international traditions and Party B’s relevant rules.
                

            

    

    

    
      
        
        

      

      
        128

        
          

        

      

      
        
        

      

    

    Article
      11 Adjustment and Cancellation of Credit Line 

    

    In
      case
      of any of the following circumstances within the term of the credit line, Party
      B shall have the right to adjust or cancel the credit line granted to Party
      A at
      any time: 

    

    
      	
              1)

            	
              breaches
                as stipulated in Article 12 hereof;

            

    

    
      	
              2)

            	
              significant
                adverse news at Party B’s discretion in the market or the industry
                involved; 

            

    

    
      	
              3)

            	
              certain
                limited policies promulgated by the State, foreign governments or
                international organizations which will or may at Party B’s discretion
                cause significant adverse impact upon the industry involved in the
                Agreement . 

            

    

    

    Article
      12 Breach of Agreement 

     

    Any
      of
      the following circumstances shall constitute breach of the Contract by Party
      A:

    
      	
              7)

            	
              failing
                to perform the obligation of payment or repayment to Party B according
                to
                this Agreement and single agreements;

            

    

    
      	
              8)

            	
              failing
                to pay excess reserves to Party B according to this Agreement and
                single
                agreements; 

            

    

    
      	
              9)

            	
              failing
                to use the funds obtained for the purposes stipulated in this Agreement
                and single agreements; 

            

    

    
      	
              10)

            	
              making
                untrue undertakings herein or acting against its undertakings herein;
                

            

    

    
      	
              11)

            	
              acting
                against other stipulations in this Agreement and single agreements
                concerning the rights and obligations of the parties concerned; or
                

            

    

    
      	
              12)

            	
              breach
                of other contracts by and between the Parties.

            

    

    

    In
      case
      of breach as stipulated in Paragraph 1 of this clause, Party B shall have the
      right to take the following measures, respectively or jointly: 

    
      	
              5)

            	
              declaring
                immediately the principal and interests of outstanding loan/financing
                under single agreements and other amount due payable are due, without
                prior notice to Party A; 

            

    

    
      	
              6)

            	
              deducting
                the principal, interests and penalty interests which Party A shall
                repay,
                as well as losses of foreign exchange margin, directly from Party
                A’s
                accounts at Party B and other offices of the Bank of China, without
                prior
                notice to Party A; immature amount in the accounts shall be deemed
                early
                due. Where the currency in the accounts is different from that used
                by
                Party B for calculation, the conversion shall be made at the exchange
                rate
                confirmed by Party B in deduction date;

            

    

    
      	
              7)

            	
              disposing
                the properties secured, from which the earnings shall be applied
                first to
                priority of compensation or recourse against the guarantor;
                

            

    

    
      	
              8)

            	
              any
                other measures Party B deems necessary and possible.
                

            

    

    

    
      
        
        

      

      
        129

        
          

        

      

      
        
        

      

    

    Article
      13 Miscellaneous 

    

    Party
      A
      may not transfer any of its rights and obligations hereunder to a third party
      without written consent of Party B. 

    Party
      A
      shall consent if Party B has to entrust other offices of the Bank of China
      (including branches and subbranches) to perform its rights and obligations
      hereunder due to demands for business. Other offices of the Bank of China
      empowered by Party B shall have the right to exercise all of its rights
      hereunder and to bring a lawsuit with a People’s Court or submit the disputes
      arising from the Agreement to an arbitration institution for arbitration. Party
      A waives the right to present any objections to the subject to litigations
      or
      arbitration relating to other offices of the Bank of China. 

    Without
      prejudice to other stipulations herein, the Agreement shall be legal binding
      upon the Parties and their respective legal successors and assigns.

     

    Article
      14 Right Reservation 

    

    Failure
      of Party B to exercise part of its rights hereunder or require Party A to
      perform part of obligations shall not constitute Party B’s waiver of or
      exemption from such rights or obligations, nor constitute Party B’s waiver of
      other rights herein or exemption of Party A from other obligations.

    Toleration
      and extension given to Party A or deferment of exercise of its rights hereunder
      shall not impact Party B to enjoy all rights according to the Agreement, laws
      and regulations, and may not be deemed as Party B’s waiver of such rights.

    

    Article
      15 Modification, Rescission and Interpretation

    

    Unless
      otherwise stipulated herein, the Agreement may be modified, supplemented or
      rescinded with written consent of the Parties. Modification and supplementation
      of the Agreement shall be inseparable part of the Contract. 

    Invalidity
      of any of the terms and conditions of the Agreement shall not impact efficiency
      of other terms and conditions hereof. 

    Headlines
      and names of businesses as mentioned in this Agreement and single agreements
      are
      used for convenience of direction, may not be used for interpreting the
      relationship of rights and obligations between the Parties hereto. 

     

    Article
      16 Dispute Settlement 

    

    The
      Contract shall be applied to the laws of the People’s Republic of China.

    Any
      and
      all disputes and dissensions arising from performance of or relating to the
      Contract shall be settled through negotiation. Where negotiation fails, the
      Parties agree that the following second method shall apply: 

    
      	
              5)

            	
              to
                bring a lawsuit with the People’s Court at the place where Party B or
                other office of the Bank of China which exercises rights and obligations
                subject to the Agreement is located;

            

    

    
      	
              6)

            	
              to
                bring a lawsuit directly with the People’s Court having jurisdiction;
                

            

    

    
      	
              7)

            	
              to
                apply to _________ for arbitration at ___________.
                

            

    

    

    
      
        
        

      

      
        130

        
          

        

      

      
        
        

      

    

    Article
      17 Notarization (alternative clause; choice: 1, Applicable; 2, Inapplicable)
      

    

    The
      Parties shall within ___ working day(s) as of the date of the Agreement complete
      notarization of compulsory enforcement at ___________. The notarization fee
      shall be borne by ________. 

    

    Article
      18 Effectiveness 

    The
      Agreement shall become effective with signature and seal by the legal
      representatives or authorized signatories of the Parties, the latter shall
      apply. 

     

    The
      Contract shall be in three
      copies
      with equal force, one of which shall be kept by either party hereto and the
      guarantor. 

    

    Article
      19 Special Notice 

    

    The
      Parties hereto have negotiated sufficiently all of the terms and conditions
      of
      the Agreement, as well as single agreements. 

    Party
      B
      has reminded Party A to pay special attention to the terms and conditions
      concerning the Parties’ rights and obligations and understand them
      comprehensively and exactly; Party B has explained for corresponding terms
      and
      conditions hereof at the requirements of the Mortgager. 

    

    

    

    

    

    Party
      A:
Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd.

    Legal
      representative or authorized signatory:  

    Date:
      November 4, 2005

    Domicile:
      Daqiuzhuang, Jinghai, Tianjin

    

    Party
      B:
Bank
      of
      China Tianjin Jinghai Sub-Branch 

    Authorized
      signatory:  

    Date:
      November 4, 2005

    Domicile:
      No. 31 Shengli Road, Jinghai Town, Jinghai County, Tianjin

     

    

    
      
        
        

      

      
        131

        
          

        

      

      
        
        

      

    

     

    

     

    

    

    

    

    

    

    

    

    

    

    RENMINBI
      LOAN CONTRACT

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    CHINA
      CONSTRUCTION BANK TIANJIN BRANCH

    
      
        
        

      

      
        132

        
          

        

      

      
        
        

      

    

    Contract
      No.: JHTJRL 2005002

    

    Type
      of
      Loan: Working Capital

    

    Borrower(Party
      A): Tianjin Daqiuzhuang Metal Sheet Co., Ltd

    Domicile:
      Jinmei Street Daqiuzhuang Town, Jinghai County, Zip code: 301600

    Legal
      Representative (Person in charge): Yu Zuosheng

    Fax:
      28899175 Tel: 28899174

    

    

    

    

    Lender(Party
      B): China Construction Bank Corporation Tianjin Branch 

    Domicile:
      No.1 (added), 19 Nanjing Road, Hexi District, Tianjin

    Zip
      code:
      300203

    Person
      in
      charge: Jia Xiangyu 

    Fax:
      23400658 Tel: 23400683

    
      
        
        

      

      
        133

        
          

        

      

      
        
        

      

    

    Parties
      to This Contract: 

    (1)
      Borrower(hereinafter referred to as “Party A”): Tianjin Daqiuzhuang Metal Sheet
      Co., Ltd

    And
      

    (2)
      Lender (hereinafter referred to as “Party B”): China Construction Bank
      Corporation Tianjin Branch

    

    WHEREAS,
      Party A
      has applied for a certain loan from Party B; 

    WHEREAS,
      Party B
      agrees to extend such loan to Party A upon the terms and conditions contained
      herein. 

    

    NOW,
      THEREFORE, the
      Parties agree to enter into this RENMINBI
      LOAN CONTRACT
      (hereinafter referred to as “this Contract”) through mutual friendly negotiation
      on the aforesaid issue in accordance with related laws and regulations, subject
      to the terms and conditions to be set forth hereinafter. 

    

    ARTICLE
      1 LOAN AMOUNT 

    The
      loan
      to be provided by Party B to Party A hereunder is in sum of RMB (amount in
      words) Five
      Million Four Hundred Thousand Yuan only. 

    ARTICLE
      2 LOAN PUROSE 

    The
      loan
      to be extended by Party B hereunder shall be applied to repay the outstanding
      and payable debts as existing under the contract numbered JHTJRL 2004010.

    ARTICLE
      3 LOAN TERM

    The
      mutually-agreed-upon term of the loan hereunder is one (1) year, commencing
      as
      from August 22nd
      2005 and
      ending on August 21st
      2006.

    In
      case
      the starting date of the term of the loan hereunder doesn’t coincide with the
      date shown in the voucher for deposit of loan, then the date indicated in the
      voucher for deposit of the first loan shall be regarded as the starting date
      of
      the loan term hereunder. Any voucher for deposit of loan is integral part of
      this Contract both of which are equally authentic. 

     

    
      
        
        

      

      
        134

        
          

        

      

      
        
        

      

    

    ARTICLE
      4 INTEREST RATE, INTEREST CALCULATION AND SETTLEMENT

    4.1
      The
      interest rate of the loan hereunder is agreed to be 7.4600% per annum.

    4.2
      The
      interest on the loan hereunder shall arise as from the date the loan is
      deposited in the account of Party A. It is agreed that the interest on the
      loan
      hereunder shall be accrued on daily basis and settled on monthly (quarterly)
      basis, the date for interest settlement is agreed to be fixed at the
      20th
      day of
      each month (last month of appropriate quarter), in addition, the daily interest
      rate = monthly interest rate/30.

    4.3
      In
      the case of adjustment to the interest rate by the People’s Bank of China upon
      concluding of the Contract and prior to the grant of the first part of the
      loan
      hereunder, __(i)__ shall apply: 

    
      	
              (i)

            	
              Continue
                to apply the stipulated interest rate herein.

            

    

    
      	
              (ii)

            	
              Apply
                a new interest rate adjusted in the light of new interest rate
                policy.

            

    

    4.4
      Any
      adjustment to the agreed upon interest rate and the means for calculation and
      collection of accrued interest shall be subject to related regulations of the
      People’s Bank of China. In the event of any revision made by the People’s Bank
      of China (hereinafter referred to as “PBC”) to such regulations which revision
      is applicable to the loan hereunder, Party B is entitled to act in accordance
      with the newly regulations last revised by the PBC without having to send a
      notice to Party A. 

    ARTICLE
      5 GRANT AND USE OF LOAN

    5.1
      Conditions Precedent to Grant of Loan

    5.1.1
      Only to the extent the following preconditions are met or satisfied, except
      as
      waived by Party B wholly or partially, Party B is obliged to make the loan
      available to Party A: 

    
      	
              (i)

            	
              Party
                A has completed any and all legally required formalities or procedures
                in
                respect of the loan hereunder, such as approval, registration, delivery,
                etc., pursuant to related laws and regulations;

            

    

    
      	
              (ii)

            	
              The
                Security Contract or other forms of guarantee as acceptable to Party
                B,
                has/have entered into full force where such Security Contract or
                other
                guarantees is/are created for this Contract;

            

    

    
      	
              (iii)

            	
              None
                of defaults set forth herein has occurred to Party A;
                

            

    

    
      	
              (iv)

            	
              Other
                preconditions as both Parties hereto may agree;
                

            

    

    ___________________________________________________________________________________________________________________________

     

    
      
        
        

      

      
        135

        
          

        

      

      
        
        

      

    

    5.1.2
      Party B shall, within _____ working days following the date the required
      preconditions are satisfied on the part of Party A, make the loan available
      to
      Party A. 

    5.2
      Plan for Use of Loan

    5.2.1
      22nd
      August
      2005, in the amount of Five Million Four Hundred Thousand; 

    5.2.2
      DD
      MM YY, in the amount of _______________;

    5.2.3
      DD
      MM YY, in the amount of _______________;

    5.2.4
      DD
      MM YY, in the amount of _______________;

    5.2.5
      DD
      MM YY, in the amount of _______________;

    5.2.6
      DD
      MM YY, in the amount of _______________;

    

    ARTICLE
      6 REPAYMENT

    6.1
      Principle of Repayment 

    The
      repayment of any part of the loan hereunder shall be made in the principle
      of
      first payment of accrued interest and late payment of due principal.

    6.2
      Payment of Interest

    Party
      A
      shall pay Party B any and all accrued interest on appropriate loan at the
      Interest Settlement Date as stipulated herein. The date for the initial payment
      of accrued interest is the first interest settlement day following the
      availability of the loan, and any and all accrued interests shall be paid up
      together with the repayment of the last part of the outstanding principal.
      

    6.3
      Plan for Repayment of Loan

    Party
      A
      shall repay the principal of the loan hereunder as scheduled below:

    6.3.1
      21st
      August
      2006 in the amount of Five Point Four Million; 

    6.3.2
      DD
      MM YY in the amount of ______________________; 

    6.3.3
      DD
      MM YY in the amount of ______________________; 

    6.3.4
      DD
      MM YY in the amount of ______________________; 

    6.3.5
      DD
      MM YY in the amount of ______________________; 

    6.3.6
      DD
      MM YY in the amount of ______________________; 

     

    
      
        
        

      

      
        136

        
          

        

      

      
        
        

      

    

    6.4
      Form of Repayment

    Party
      A
      shall, ahead of the repayment date prescribed herein, deposit in an account
      opened with Party B the sufficient amount of fund which is to be applied, in
      the
      manner of automatic transfer, to repay any part of loan then currently becoming
      due, or transfer from any other account an appropriate amount for repayment
      of
      any due principal at the repayment date set out herein; In case Party A fails
      to
      do so, Party B is entitled to withhold any such overdue amount from any account
      opened by Party A with any branch of China Construction Bank. 

    6.5
      Earlier Repayment

    6.5.1
      Party A may elect to prepay any accrued interest on the loan hereunder ahead
      of
      schedule upon a notice to Party B. 

    6.5.2
      Party A may repay the principal, in whole or part, ahead of schedule only upon
      a
      written application of ten (10) banking business days to Party B to which
      application Party B consents. 

    In
      the
      case of earlier repayment of the principal hereof, the interest thereon shall
      be
      computed on the basis of the number of days during which the principal is used
      as loan and at the interest rate of the loan specified in ARTICLE 4 hereof.
      

    Party
      A
      hereby agrees to pay Party B a compensation for any earlier repayment which
      compensation shall be calculated as follows: Compensation = Amount of principal
      to be repaid ahead of schedule (times) 0.05% (times) Number of days prior to
      the
      scheduled repayment date. 

    In
      case
      Party A elects to repay partial principal of the loan hereunder, such repayment
      shall be made in the order exactly contrary to the order prescribed in the
      Plan
      for Repayment, thereafter, interest shall be charged on any outstanding part
      of
      loan hereunder at the interest rate as stipulated herein. 

    ARTICLE
      7 LOAN SECURITY

    In
      the
      case of secured loan, the security shall be provided in the form of 7.1
      (optional): 

    7.1
      Suretyship

    7.2
      Mortgage

    7.3
      Pledge

    7.4
      Standby L/C

    7.5
      Credit insurance

    7.6
      Others; to
      be
      specified.

    

    
      
        
        

      

      
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    ARTICLE
      8 RIGHTS AND OBLIGATIONS OF PARTY A

    8.1
      Rights of Party A 

    8.1.1
      Party A is entitled to request Party B to extend the loan subject to the terms
      and conditions set out herein; 

    8.1.2
      Party A is entitled to use the loan for purposes described herein; 

    8.1.3
      Party A is entitled to apply to Party B for an extension of loan to the extent
      related requirements of Party B are fulfilled; 

    8.1.4
      Party A is entitled to have Party B imposed under the obligation to maintain
      confidential any and all financial materials together with any trade secrets
      relating to production & operation to be furnished by Party A, except as
      otherwise provided for by related laws and regulations. 

    8.2
      Obligations of Party A

    8.2.1
      Party A is obliged to present, as required by Party B, related financial and
      accounting documents as well as appropriate materials in respect of production
      & operation, including without limitation supply Party B with the balance
      sheet ending the last quarter as well as the profit and loss sheet (the income
      and expenditure sheet in the case of nonprofit institution) ending the last
      quarter within the first
      ten (10)
      banking
      business days of each quarter, and the supply Party B with the cash flow for
      then current year at the end of such year, in addition, Party A shall be liable
      for the truthfulness, completeness as well as the validity of such materials
      supplied as hereinabove; 

    8.2.2
      Party A shall use the loan for purposes stipulated herein, neither unauthorized
      diversion for other use nor appropriation thereof for whatsoever reasons is
      tolerated; 

    8.2.3
      Party A shall, on its own initiative, be voluntarily subject to any inspection
      and/or supervision conducted by Party B over the production & operation,
      financial activities, as well as the use of loan on the part of Party A, and
      shall provide assistance as required; 

    8.2.4
      Party A shall repay the principal hereof and pay any accrued interest thereon
      as
      scheduled herein; 

    8.2.5
      Neither Party A nor any of its investors may siphon out the capital or transfer
      any assets with an intent to shrug off the debts owed to Party B; 

     

    
      
        
        

      

      
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    8.2.6
      Party A shall refrain from provide a security with any asset formed with the
      loan hereunder for any third party, in the absence of consent of Party B, before
      the principal hereof and any interest accrued thereon are satisfied in full;
      

    8.2.7
      During the whole life of this Contract, any intended provision of security
      by
      Party A for any party’s debts that may impair Party A’s ability to repay the
      loan hereunder shall be subject to a written notice to and consent from Party
      B;

    8.2.8
      In
      the event that the surety hereunder, during the term of this Agreement, stops
      production, ceases to carry out business, is de-registered, has its business
      license suspended, goes bankrupt, revoked or suffers a loss in operation, etc.
      that might deprive Party B of the whole or partial capacity to act as a surety
      appropriate to the loan hereunder, or in the case of decrease in the value
      of,
      damage to or loss of the mortgaged objects or pledged articles, Party A shall
      upon the request of Party A provide any other securities as required by Party
      B;

    8.2.9
      During the term of this Agreement, Party A is obliged to notify in a timely
      manner Party B of any change in/of the name, legal representative (person in
      charge), domicile, business scope, registered capital, etc. that may occur
      to
      Party A; 

    8.2.10
      In
      the event a contracting, lease, stock reconstruction, pool, consolidation,
      merger & acquisition, division, joint venture, application for business stop
      for internal rectification, application for dissolution or application for
      being
      declared to be bankrupt, etc. occurs to Party A that suffice to impair the
      satisfaction of the creditor’s rights of Party B, Party A shall deliver to Party
      B a written notice of
      thirty (30)
      days for
      approval, and shall take step to satisfy the debts hereunder and effect the
      guarantees provided therefore;

    8.2.11
      In
      the event that Party A, during the term of this Agreement stops production,
      ceases to carry out business, is de-registered, has its business license
      suspended, the legal representative or key responsible person of which commits
      unlawful act and is involved in significant actions, experiences serious
      difficulties in operating and manufacturing, undergoes deteriorating in
      financial standing, etc. as well as other circumstances that might be materially
      adverse to the repayment obligation fulfillment hereunder, Party A shall give
      a
      written notice to Party B promptly and shall at the request of Party A satisfy
      the debts hereunder and effect the guarantee provided for the said
      debt;

    8.2.12
      Party A shall bear any and all costs or expenses incurred in respect of this
      Contract and the lawyer, insurance, evaluation, registration, custody,
      authentication, notary, etc. relating to the security provided hereunder.

    

    
      
        
        

      

      
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    ARTICLE
      9 RIGHTS AND OBLIGATIONS OF PARTY B 

    9.1
      Rights of Party B

    9.1.1
      Party B is entitled to have access to or to be informed of the information
      relating to the production & operation, as well as financial activities on
      the part of Party A, and to require Party A to provide related documentation,
      such as statistics of related plans and accounting statements; 

    9.1.2
      Party B is entitled to transfer and withhold any amount in whatsoever currency
      from any account opened by Party A with any branch of China Construction Bank,
      for any money payable to Party B by Party A hereunder; 

    9.2
      Obligations of Party B

    9.2.1
      Party B shall make the loan available to Party A in full as scheduled herein,
      except for the delay by virtue of Party A; 

    9.2.2
      Party B shall keep and maintain confidential any and all financial materials
      as
      well as the trade secrets in respect of the production & operation of Party
      A that may be supplied thereby, except to the extent required by related laws
      and regulations. 

    

    ARTICLE
      10 LIABILITIES FOR BREACH 

    10.1
      Breaching Event

    10.1.1
      Breach on the Part of Party A

    10.1.1.1
      Failure to provide true, complete and valid accounting materials, information
      relating to production & operation and others as required by Party B;

    10.1.1.2
      Failure to use the loan for purposes stipulated herein; 

    10.1.1.3
      Failure to repay the principal of and the accrued interest on the loan as
      scheduled; 

    10.1.1.4
      Refuse to be subject to or interfere with the inspection and/or supervision
      by
      Party B over the use of loan by Party A; 

    10.1.1.5
      Transfer of assets, siphoning out fund with an intent to shrug debts;

    10.1.1.6
      Failure to satisfy any due debt as a result of detonation of the operation
      and
      financial standing, or involved or will be involved in any significant suit
      or
      arbitral proceedings or any other legal dispute that suffice to make Party
      B
      believe that the rights and interests of Party B hereunder might be or have
      been
      effected or impaired thereby; 

     

    
      
        
        

      

      
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    10.1.1.7
      Any other debt owed by Party A has effected or might effect the fulfillment
      of
      the obligations by Party A to Party A hereunder; 

    10.1.1.8
      Failure to satisfy other debts owed to China Construction Bank when due;

    10.1.1.9
      Any act occurred on the part of Party A during the term of this Contract, such
      as contracting, lease, consolidation, M&A, joint venture, division, pool,
      stock reconstruction, etc. that results in change in the operation means or
      reconstruction of operation method and that reasonably makes Party B to believe
      its rights and interest hereunder might be or have been effected or impaired
      thereby; 

    10.1.1.10
      Other circumstances which suffice to impair the satisfaction of creditor’s
      rights of Party B in the sole opinion of the same; 

    10.1.1.11
      In breach of other obligations provided herein. 

    

    10.1.2
      Failure by Party A to provide a new security as acceptable to Party B upon
      any
      of the following cases on the part of the surety, shall be deemed a breach
      on
      the part of Party A:

    10.1.2.1
      Occurrence on the part of the surety hereunder, of contracting, lease,
      consolidation, M&A, joint venture, division, pool, stock reconstruction,
      bankruptcy, revocation, etc. that suffice to impair the joint and several
      liability to be assumed by the surety hereunder; 

    10.1.2.2
      The surety hereunder provide such a security for any third party which security
      is beyond its assumption capacity; 

    10.1.2.3
      The surety loses or might lose the capacity to stand as surety; 

    10.1.2.4
      Other breaches on the part of the surety as set out herein. 

    

    10.1.3
      Failure by Party A to provide a new security as acceptable to Party B upon
      any
      of the following cases on the part of the Mortgagor, shall be deemed a breach
      on
      the part of Party A:

    10.1.3.1
      Failure by the Mortgagor to take out or procure the property insurance for
      the
      mortgaged objects, or failure of the Mortgagor to deal with issues relating
      to
      the insurance indemnity as agreed in the Mortgage Agreement, upon any insurance
      accident; 

    10.1.3.2
      Failure of the Mortgagor to deal with issues relating the damages in accordance
      with the Mortgage Agreement upon the damage to, loss of or decrease in the
      value
      of, the mortgaged objects by virtue of the act on the part of any third party;
      

     

    
      
        
        

      

      
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    10.1.3.3
      In the absence of consent from the Party B in writing, gifts, assignment, lease
      out, overlay mortgage, relocation, or otherwise disposition of the mortgaged
      objects on the part of Mortgagor; 

    10.1.3.4
      The Mortgagor disposes of the mortgaged objects with the permission of Party
      B,
      but fails to apply the proceeds from such disposition as stipulated in the
      Mortgage Agreement; 

    10.1.3.5
      The Mortgagor fails to reinstate the value of the mortgaged objects in a timely
      manner or to provide other guarantees acceptable to Party B, upon the damage
      to,
      loss of or decrease in the value of the mortgaged objects that suffice to
      prejudice the satisfaction of the debts hereunder; 

    10.1.3.6
      Other breaches on the part of the Mortgagor as set forth in the Mortgage
      Agreement. 

    

    10.1.4
      Failure by Party A to provide a new security as acceptable to Party B upon
      any
      of the following cases on the part of the Pledgor, shall be deemed a breach
      on
      the part of Party A:

    10.1.4.1
      Failure by the Pledgor to take out or procure the property insurance for the
      mortgaged objects, or failure of the Pledgor to deal with issues relating to
      the
      insurance indemnity as agreed in the Pledge Agreement, upon any insurance
      accident;

    10.1.4.2
      Failure of the Pledgor to deal with issues relating the damages in accordance
      with the Pledge Agreement upon the damage to, loss of or decrease in the value
      of, the pledged objects by virtue of the act on the part of any third
      party;

    10.1.4.3
      The Pledgor disposes of the pledged objects with the permission of Party B,
      but
      fails to apply the proceeds from such disposition as stipulated in the Pledge
      Agreement; 

    10.1.4.4
      The Pledgor fails to reinstate the value of the pledged objects in a timely
      manner or to provide other guarantees acceptable to Party B, upon the damage
      to,
      loss of or decrease in the value of the pledged objects that suffice to
      prejudice the satisfaction of the debts hereunder;

    10.1.4.5
      Other breaches on the part of the Pledgor as set forth in the Pledge
      Agreement.

    

    10.1.5
      Failure of Party A to provide new securities shall be deemed a breach of Party
      A
      upon any of the following cases: the Security Contract or other guarantees
      fails
      to enter into force, is null and void, cancelled, or occurrence of other
      circumstances that result in loss of being a guarantee wholly or partly on
      the
      part of such guarantee hereunder or refusal of such guarantee to perform its
      obligations hereunder. 

    

    
      
        
        

      

      
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    10.2
      Remedies for Breach 

    Party
      B
      is entitled to elect one or several of the rights set out below upon any cases
      set out in 10.1.1 through 10.1.5:

    10.2.1
      Cease to extend the loan, declare all loan due promptly, request Party A to
      repay and/or pay without delay any and all principal of, accrued interests
      thereon as well as costs hereunder, whether due or not at then time.

    10.2.2
      Charge Party A a fine for breach at the rate of 0.5%
      of
      the
      principal of the loan hereunder; 

    10.2.3
      In
      case Party A fails to use the loan hereunder as agreed, a penalty interest
      shall
      be charged on any part of loan appropriated, in accordance with related
      regulations of PBC. 

    10.2.4
      A
      compound interest shall be charged on any interest not paid when due by Party
      A
      at the interest rate and in the interest settlement method, prescribed in
      ARTICLE 4 hereof, prior to the scheduled maturity date. 

    10.2.5
      In
      the case of any overdue repayment, appropriate interest and compound interest
      shall be charged on any principal and interest, including the principal and
      interest declared due by Party B ahead of schedule, at the applicable interest
      rate of overdue loan and in the interest settlement manner specified herein.
      Overdue repayment as mentioned hereinabove refers to such repayment of loan
      by
      Party A not as scheduled or beyond the timescale for repayment as set forth
      herein. 

    10.2.6
      Transfer and withhold any amount in any currency, out of the account opened
      by
      Party A with any branch of China Construction Bank. 

    10.2.7
      Request Party A to provide a new security for the debts hereunder subject to
      requirements of Party B. 

    10.2.8
      Enforce the security. 

    10.2.9
      Terminate this Contract. 

    

    ARTICLE
      11 MISCELLANEOUS

    11.1
      The
      penalty interest shall be charged at the monthly rate of 9.3255% for any overdue
      part of the loan.
      

    11.2
      The
      plan for repayment of loan hereunder shall be made in the principle set out
      in
      the Accounting Rules for Financial Enterprise (hereinafter referred to as
“ARFE”). In the case of any discrepancy between the ARFE and this Contract, the
      ARFE shall apply. 

    

    
      
        
        

      

      
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    ARTICLE
      12 DISPUTE RESOLUTION 

    Any
      dispute arising out of or in connection with this Contract shall be settled
      by
      mutual friendly negotiation, in case no successful settlement reached therefrom,
      such dispute shall be determined by means of
      12.1:

    12.1
      Institute an action with the people’s court at the place where Party B
      resides.

    12.2
      Submit to ___________ Arbitration Committee at the place of __________ for
      arbitration in accordance with rules and procedures then currently in force.
      The
      arbitral award reached thereby shall be final and binding upon both Parties.
      

    During
      the action or arbitration, any provisions contained herein shall be continued
      to
      be performed except for matters in dispute. 

    

    ARTICLE
      13 EFFECTIVENESS

    This
      Contract shall enter into force upon being signed and sealed by the legal
      representatives (persons in charge) or duly authorized signatories of both
      Parties hereto. 

    

    ARTICLE
      14
      This
      Contract is made in
      triplicate.
      

    ARTICLE
      15 ACKNOWLEDGEMENT 

    15.1
      Party A hereby acknowledges to have clear knowledge of the business scope and
      authority limit of Party B. 

    15.2
      Party A have read carefully all the articles contained herein. Party B has,
      upon
      request of Party A, made appropriate explanation and notes to this Contract.
      Party A has been clearly aware of and fully understood the implication of all
      articles set out herein. 

    15.3
      Party A has the full and sufficient authority and power to sign this Contract.
      

    

    Party
      A:
      (Common Seal)

    Legal
      representative (person in charge) or duly authorized representative:
      (Signature)

    Date:
      22nd
      August
      2005

    

    
      
        
        

      

      
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    Party
      B:
      (Common Seal)

    Person
      in
      charge or duly authorized representative: (Signature) 

    Date:
      22nd
      August
      2005

    

    
      
        
        

      

      
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    Guarantee
      Contract

    

    

    

    

    

    

    

    

    

    

    

    

    

     

    Tianjin
      Branch, China Construction Bank

     

    
      
        
        

      

      
        146

        
          

        

      

      
        
        

      

    

    

    

    

    

    Contract
      No: JHTJRLBZ
      2005002

    

    

    Guarantor
      (Party A): Tianjin
      Sheng Da Steel Mill Co., Ltd. 

    Domicile:
      Jinmei
      Street, Daqiuzhuang Town, Jinghai County

    Postal
      Code: 301606

    Legal
      Representative: Wu
      Congfeng

    Fax:

    Tel:
      28899625

    

    

    

    

    

    

    

    

    

    

    

    Creditor
      (Party B): Tianjin
      Branch, China Construction Bank 

    Domicile:
      N0.19,
      Nanjing Road, Hexi District, Tianjin City

    Postal
      Code:
      300203

    Legal
      Representative: Jia
      Xiangyu

    Fax:
      23400658

    Tel:
      23400683

    

    
      
        
        

      

      
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    Guarantor
      (hereinafter referred to as Party A): Tianjin Sheng Da Steel Mill Co.,
      Ltd.

    Creditor
      (hereinafter referred to as Party B): Tianjin Branch, China Construction
      Bank

    

    In
      order
      to guarantee the fulfillment of
      RMB
      Currency Loan Contract
      (hereinafter referred to as Principle Contract) with contract No.:
      JHTJRL 2005002
      signed
      by Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd. (hereinafter
      referred to as Debtor) and Party B, Party A agrees to guarantee the debt in
      the
      principle contract with joint guarantee responsibilities so as to protect the
      creditor’s right of Party B. Both parties signed this contract after friendly
      negotiation in accordance with the related laws and regulations of China.

    

    Article
      1 Modes of Guarantee 

    Party
      A bears joint guarantee responsibilities. 

    Party
      A confirms that Party B has the right to require Party A to bear the guarantee
      responsibilities in the range of guarantee when debtor does not fulfill its
      debts no matter what guarantee is provided by Party B under the principle
      contract (including but not limited to guarantee, mortgage, hypothecation,
      letter of guarantee, stand-by L/C etc). 

    

    Article
      2
      Range of Guarantee

    The
      range
      of guarantee of Party A was limited to total principle RMB
      5,400,000,
      interest (including compound interest and penalty interest), breaches of
      contract damages, compensation expenses and any expense paid to fulfill the
      creditor’s right (including but not limited to legal cost, arbitration cost,
      attachment cost, business trivial expenses, execution cost, evaluation cost,
      and
      auctioneer's fee etc). 

    

    Article
      3
      Duration Guarantee 

    The
      duration guarantee is from the effect date of this contract to two years after
      the fulfillment date of principle contract. If Party A agrees to extend the
      creditor right, the duration guarantee shall be expired at the date of two
      years
      after the new fulfillment date of debts. 

    

    Article
      4 The Alternation of Guaranteed Principle Contract

    Party
      A confirms that it shall be confirmed as agreement of Party A when Party B
      and
      debtor agrees to alter the articles of principal contract, and the guarantee
      responsibilities of Party A shall not be exempted except: 

    
      	
              (1)

            	
              Extension
                of fulfillment term of
                debts;

            

    

    
      	
              (2)

            	
              Adding
                the principles of
                creditors.

            

    

    

    Article
      5 The Independence of Contract Validity

    This
      contract is independent from the principle contract; the invalidity thereof
      shall not affect the validity of this contract. If the principle contract is
      confirmed as invalidity, Party A shall bear the joint guarantee responsibilities
      for the debt of restitution of property or compensation. 

     

    
      
        
        

      

      
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    Article
      6
      Guarantee Capacity

    During
      the duration guarantee, if Party A loses or may lose its guarantee capacity,
      or
      the legal person and other organizations as guarantor are contracted, leased,
      combined, jointed, divided, pooled, remolded
      with the stock system, or cancelled, Party A shall notice Party B in written
      in
      advance. All liabilities under this contract shall be borne by alternated
      institution or the institution that cancelled Party A. If Party B do not agree
      with the relevant guarantee capacity of altered institution, Party A or the
      institution that cancelled Party A shall supply new guarantee for the
      requirement of Party B and sign the relevant guarantee contract. 

    

    During
      the duration guarantee, Party A shall not bear other guarantee to third party
      that would exceed its guarantee capacity without the agreement of Party B in
      written. 

    

    Article
      7
      Supervision in Financial Status to Guarantor 

    During
      the duration guarantee, Party B has the right to supervise the assets and
      financial status; Party A shall submit related information such as financial
      statements according to the facts.

    

    Article
      8 Taking the Guarantee Responsibilities in Advance

    During
      the duration guarantee, if Party B announces the maturity of debts in advance,
      Party B has the right to require Party B to take guarantee responsibilities
      within 7 bank working days before the maturity date in advance; and Party A
      shall agree it. 

    

    Article
      9
      Payment of Accounts Payable 

    Party
      B
      has right to transfer money directly from Party A’s account in China
      Construction Bank to pay the total accounts payable in the range of guarantee.
      

    

    Article
      10 Other Articles Agreed by Both Parties

    
      	
              1)

            	
              During
                the duration guarantee, the debtor is combined, divided,
                pooled, remolded
                with the stock system, increased or decreased its registered capital,
                jointed, pooled or altered its name etc, the guarantee responsibilities
                of
                Party A shall not be decreased or exempted.

            

    

    
      	
              2)

            	
              Guarantor
                has the right to supervise the usages of the loans.
                

            

    

    
      	
              3)

            	
              When
                Party B supply foreign currency loan to debtor, Party A agrees to
                take the
                guarantee responsibilities in accordance with Foreign Currency Loan
                Contract; if Party A uses the other currency to fulfill the liabilities,
                it shall be agreed by Party B and calculated in bank selling rate
                in the
                date of payment. 

            

    

    
      	
              4)

            	
              Blank

            

    

    
      	
              5)

            	
              Blank

            

    

    
      	
              6)

            	
              Blank

            

    

    

    
      
        
        

      

      
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    Article
      11 Settlements of Disputes

    Any
      dispute arisen from this contract shall be settled through friendly negotiation,
      or both parties shall settle it by using the
      first
      method
      of:

    
      	
              1)

            	
              filing
                the case to the People’s count in the domicile of Party
                B;

            

    

    
      	
              2)

            	
              submitting
                to(
                Blank     ) Arbitration
                Committee (in (
                Blank )      )
                for arbitration in accordance with its arbitration rules. The award
                is
                final and has the legal force to both parties.

            

    

    During
      the litigation or arbitration, the articles without dispute are still valid.
      

    

    Article
      12 Effect of the Contract

    This
      contract shall be affected after signed by legal representative or authorized
      representative of both parties or stamped (if Party A is natural person, it
      shall sign in person). 

    

    Article
      13 This contract has three originals.

    

    Article
      14 Announcement Articles

    
      	
              1)

            	
              Party
                A is well informed the business scope and authorization limit of
                Party B.
                

            

    

    
      	
              2)

            	
              Party
                A has already read all articles of this contract and specially noticed
                the
                articles in boldface. With the requirement of Party A, Party B has
                already
                interpreted the relevant articles. Party A has gotten known and fully
                understood the articles in this contract and relevant legal results.
                

            

    

    
      	
              3)

            	
              Party
                A has right to sign this contract. 

            

    

    

    

    

    Party
      A
      (stamp): 

    Legal
      representative (principle) or Authorized representative (signature): Wu
      Congfeng

    August
      22, 2005

    

    

    Party
      B
      (stamp): 

    Principle
      or Authorized representative (signature): Lu Peiying

    August
      22, 2005

    

    

    
      
        
        

      

      
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    RENMINBI
      LOAN CONTRACT

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    CHINA
      CONSTRUCTION BANK TIANJIN BRANCH

    
      
        
        

      

      
        152

        
          

        

      

      
        
        

      

    

    Contract
      No.: Gongyeliu 2005004

    

    Type
      of
      Loan: Working Capital for Industrial Enterprise 

    

    Borrower(Party
      A): Tianjin Daqiuzhuang Metal Sheet Co., Ltd

    Domicile:
      Daqiuzhuang Town, Jinghai County, Zip code: 301600

    Legal
      Representative(Person in charge): Yu Zuosheng

    Fax:                         Tel:
      28899172

    

    

    

    

    Lender(Party
      B): China Construction Bank Corporation Tianjin Branch Jinghai
      Sub-branch

    Domicile:
      Jinghai Town

    Zip
      code:
      301600

    Person
      in
      charge: Shi Yicao

    Fax:28942873                    
      Tel: 28943946

    
      
        
        

      

      
        153

        
          

        

      

      
        
        

      

    

    Parties
      to This Contract: 

    (1)
      Borrower(hereinafter referred to as “Party A”): Tianjin Daqiuzhuang Metal Sheet
      Co., Ltd

    And
      

    (2)
      Lender (hereinafter referred to as “Party B”): China Construction Bank
      Corporation Tianjin Branch, Jinghai Sub-branch

    

    WHEREAS,
      Party A
      has applied for a certain loan from Party B; 

    WHEREAS,
      Party B
      agrees to extend such loan to Party A upon the terms and conditions contained
      herein. 

    

    NOW,
      THEREFORE, the
      Parties agree to enter into this RENMINBI
      LOAN CONTRACT
      (hereinafter referred to as “this Contract”) through mutual friendly negotiation
      on the aforesaid issue in accordance with related laws and regulations, subject
      to the terms and conditions to be set forth hereinafter. 

    

    ARTICLE
      1 LOAN AMOUNT 

    The
      loan
      to be provided by Party B to Party A hereunder is in sum of RMB (amount in
      words) Eight
      Million and One Hundred Thousand Yuan only. 

    ARTICLE
      2 LOAN PURPOSE 

    The
      loan
      to be extended by Party B hereunder shall be applied to repay the outstanding
      and payable debts as existing under the contract numbered 2004-005 between
      the
      Borrower and our bank. 

    ARTICLE
      3 LOAN TERM

    The
      mutually-agreed-upon term of the loan hereunder is twelve (12) months,
      commencing as from August 22nd
      2005 and
      ending on August 15th
      2006.

    In
      case
      the starting date of the term of the loan hereunder doesn’t coincide with the
      date shown in the voucher for deposit of loan, then the date indicated in the
      voucher for deposit of the first loan shall be regarded as the starting date
      of
      the loan term hereunder. Any voucher for deposit of loan is integral part of
      this Contract both of which are equally authentic. 

     

    
      
        
        

      

      
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    ARTICLE
      4 INTEREST RATE, INTEREST CALCULATION AND SETTLEMENT

    4.1
      The
      interest rate of the loan hereunder is agreed to be 6.217%
      per
      month. 

    4.2
      The
      interest on the loan hereunder shall arise as from the date the loan is
      deposited in the account of Party A. It is agreed that the interest on the
      loan
      hereunder shall be accrued on daily basis and settled on monthly (quarterly)
      basis, the date for interest settlement is agreed to be fixed at the
      20th
      day of
      each month (last month of appropriate quarter), in addition, the daily interest
      rate = monthly interest rate/30.

    4.3
      In
      the case of adjustment to the interest rate by the People’s Bank of China upon
      concluding of the Contract and prior to the grant of the first part of the
      loan
      hereunder, __(i)__ shall apply: 

    
      	
              (iii)

            	
              Continue
                to apply the stipulated interest rate herein.

            

    

    
      	
              (iv)

            	
              Apply
                a new interest rate adjusted in the light of new interest rate
                policy.

            

    

    4.4
      Any
      adjustment to the agreed upon interest rate and the means for calculation and
      collection of accrued interest shall be subject to related regulations of the
      People’s Bank of China. In the event of any revision made by the People’s Bank
      of China (hereinafter referred to as “PBC”) to such regulations which revision
      is applicable to the loan hereunder, Party B is entitled to act in accordance
      with the newly regulations last revised by the PBC without having to send a
      notice to Party A. 

    ARTICLE
      5 GRANT AND USE OF LOAN

    5.1
      Conditions Precedent to Grant of Loan

    5.1.1
      Only to the extent the following preconditions are met or satisfied, except
      as
      waived by Party B wholly or partially, Party B is obliged to make the loan
      available to Party A: 

    
      	
              (v)

            	
              Party
                A has completed any and all legally required formalities or procedures
                in
                respect of the loan hereunder, such as approval, registration, delivery,
                etc., pursuant to related laws and regulations;

            

    

    
      	
              (vi)

            	
              The
                Security Contract or other forms of guarantee as acceptable to Party
                B,
                has/have entered into full force where such Security Contract or
                other
                guarantees is/are created for this Contract;

            

    

    
      	
              (vii)

            	
              None
                of defaults set forth herein has occurred to Party A;
                

            

    

    
    

     

    
      
        
        

      

      
        155

        
          

        

      

      
        
        

      

    

     

    
      	
              (viii)

            	
              Other
                preconditions as both Parties hereto may agree;

            

    

    
      
        

      

    

     

     

      
        

      

    

    5.1.2
      Party B shall, within three
      (3) working
      days following the date the required preconditions are satisfied on the part
      of
      Party A, make the loan available to Party A. 

    5.2
      Plan for Use of Loan

    5.2.1
      22nd
      August
      2005, in the amount of Eight Million and One Hundred Thousand Yuan;

    5.2.2
      DD
      MM YY, in the amount of _______________;

    5.2.3
      DD
      MM YY, in the amount of _______________;

    5.2.4
      DD
      MM YY, in the amount of _______________;

    5.2.5
      DD
      MM YY, in the amount of _______________;

    5.2.6
      DD
      MM YY, in the amount of _______________;

    

    ARTICLE
      6 REPAYMENT

    6.1
      Principle of Repayment 

    The
      repayment of any part of the loan hereunder shall be made in the principle
      of
      first payment of accrued interest and late payment of due principal.

    6.2
      Payment of Interest

    Party
      A
      shall pay Party B any and all accrued interest on appropriate loan at the
      Interest Settlement Date as stipulated herein. The date for the initial payment
      of accrued interest is the first interest settlement day following the
      availability of the loan, and any and all accrued interests shall be paid up
      together with the repayment of the last part of the outstanding principal.
      

    6.3
      Plan for Repayment of Loan

    Party
      A
      shall repay the principal of the loan hereunder as scheduled below:

    6.3.1
      15th
      August
      2006 in the amount of Eight Million and One Hundred Thousand Yuan; 

    6.3.2
      DD
      MM YY in the amount of ______________________; 

    6.3.3
      DD
      MM YY in the amount of ______________________; 

    6.3.4
      DD
      MM YY in the amount of ______________________; 

     

    
      
        
        

      

      
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    6.3.5
      DD
      MM YY in the amount of ______________________; 

    6.3.6
      DD
      MM YY in the amount of ______________________; 

    6.4
      Form of Repayment

    Party
      A
      shall, ahead of the repayment date prescribed herein, deposit in an account
      opened with Party B the sufficient amount of fund which is to be applied, in
      the
      manner of automatic transfer, to repay any part of loan then currently becoming
      due, or transfer from any other account an appropriate amount for repayment
      of
      any due principal at the repayment date set out herein; In case Party A fails
      to
      do so, Party B is entitled to withhold any such overdue amount from any account
      opened by Party A with any branch of China Construction Bank. 

    6.5
      Earlier Repayment

    6.5.1
      Party A may elect to prepay any accrued interest on the loan hereunder ahead
      of
      schedule upon a notice to Party B. 

    6.5.2
      Party A may repay the principal, in whole or part, ahead of schedule only upon
      a
      written application of thirty
      (30)
      banking
      business days to Party B to which application Party B consents. 

    In
      the
      case of earlier repayment of the principal hereof, the interest thereon shall
      be
      computed on the basis of the number of days during which the principal is used
      as loan and at the interest rate of the loan specified in ARTICLE 4 hereof.
      

    Party
      A
      hereby agrees to pay Party B a compensation for any earlier repayment which
      compensation shall be calculated as follows: Compensation = Amount of principal
      to be repaid ahead of schedule (times) _______ (times) Number of days prior
      to
      the scheduled repayment date. 

    In
      case
      Party A elects to repay partial principal of the loan hereunder, such repayment
      shall be made in the order exactly contrary to the order prescribed in the
      Plan
      for Repayment, thereafter, interest shall be charged on any outstanding part
      of
      loan hereunder at the interest rate as stipulated herein. 

    ARTICLE
      7 LOAN SECURITY

    In
      the
      case of secured loan, the security shall be provided in the form of 7.2
      (optional):
      

    7.1
      Suretyship

    7.2
      Mortgage

    7.3
      Pledge

     

    
      
        
        

      

      
        157

        
          

        

      

      
        
        

      

    

    7.4
      Standby L/C

    7.5
      Credit insurance

    7.6
      Others; to
      be
      specified.

    

    ARTICLE
      8 RIGHTS AND OBLIGATIONS OF PARTY A

    8.1
      Rights of Party A 

    8.1.1
      Party A is entitled to request Party B to extend the loan subject to the terms
      and conditions set out herein; 

    8.1.2
      Party A is entitled to use the loan for purposes described herein; 

    8.1.3
      Party A is entitled to apply to Party B for an extension of loan to the extent
      related requirements of Party B are fulfilled; 

    8.1.4
      Party A is entitled to have Party B imposed under the obligation to maintain
      confidential any and all financial materials together with any trade secrets
      relating to production & operation to be furnished by Party A, except as
      otherwise provided for by related laws and regulations. 

    8.2
      Obligations of Party A

    8.2.1
      Party A is obliged to present, as required by Party B, related financial and
      accounting documents as well as appropriate materials in respect of production
      & operation, including without limitation supply Party B with the balance
      sheet ending the last quarter as well as the profit and loss sheet (the income
      and expenditure sheet in the case of nonprofit institution) ending the last
      quarter within the first
      ten (10) banking
      business days of each quarter, and the supply Party B with the cash flow for
      then current year at the end of such year, in addition, Party A shall be liable
      for the truthfulness, completeness as well as the validity of such materials
      supplied as hereinabove; 

    8.2.2
      Party A shall use the loan for purposes stipulated herein, neither unauthorized
      diversion for other use nor appropriation thereof for whatsoever reasons is
      tolerated; 

    8.2.3
      Party A shall, on its own initiative, be voluntarily subject to any inspection
      and/or supervision conducted by Party B over the production & operation,
      financial activities, as well as the use of loan on the part of Party A, and
      shall provide assistance as required; 

    8.2.4
      Party A shall repay the principal hereof and pay any accrued interest thereon
      as
      scheduled herein; 

     

    
      
        
        

      

      
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    8.2.5
      Neither Party A nor any of its investors may siphon out the capital or transfer
      any assets with an intent to shrug off the debts owed to Party B; 

    8.2.6
      Party A shall refrain from provide a security with any asset formed with the
      loan hereunder for any third party, in the absence of consent of Party B, before
      the principal hereof and any interest accrued thereon are satisfied in full;
      

    8.2.7
      During the whole life of this Contract, any intended provision of security
      by
      Party A for any party’s debts that may impair Party A’s ability to repay the
      loan hereunder shall be subject to a written notice to and consent from Party
      B;

    8.2.8
      In
      the event that the surety hereunder, during the term of this Agreement, stops
      production, ceases to carry out business, is de-registered, has its business
      license suspended, goes bankrupt, revoked or suffers a loss in operation, etc.
      that might deprive Party B of the whole or partial capacity to act as a surety
      appropriate to the loan hereunder, or in the case of decrease in the value
      of,
      damage to or loss of the mortgaged objects or pledged articles, Party A shall
      upon the request of Party A provide any other securities as required by Party
      B;

    8.2.9
      During the term of this Agreement, Party A is obliged to notify in a timely
      manner Party B of any change in/of the name, legal representative(person in
      charge), domicile, business scope, registered capital, etc. that may occur
      to
      Party A; 

    8.2.10
      In
      the event a contracting, lease, stock reconstruction, pool, consolidation,
      merger & acquisition, division, joint venture, application for business stop
      for internal rectification, application for dissolution or application for
      being
      declared to be bankrupt, etc. occurs to Party A that suffice to impair the
      satisfaction of the creditor’s rights of Party B, Party A shall deliver to Party
      B a written notice of
      thirty (30)
      days for
      approval, and shall take step to satisfy the debts hereunder and effect the
      guarantees provided therefore;

    8.2.11
      In
      the event that Party A, during the term of this Agreement stops production,
      ceases to carry out business, is de-registered, has its business license
      suspended, the legal representative or key responsible person of which commits
      unlawful act and is involved in significant actions, experiences serious
      difficulties in operating and manufacturing, undergoes deteriorating in
      financial standing, etc. as well as other circumstances that might be materially
      adverse to the repayment obligation fulfillment hereunder, Party A shall give
      a
      written notice to Party B promptly and shall at the request of Party A satisfy
      the debts hereunder and effect the guarantee provided for the said
      debt;

     

    
      
        
        

      

      
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    8.2.12
      Party A shall bear any and all costs or expenses incurred in respect of this
      Contract and the lawyer, insurance, evaluation, registration, custody,
      authentication, notary, etc. relating to the security provided hereunder.

    

    ARTICLE
      9 RIGHTS AND OBLIGATIONS OF PARTY B 

    9.1
      Rights of Party B

    9.1.1
      Party B is entitled to have access to or to be informed of the information
      relating to the production & operation, as well as financial activities on
      the part of Party A, and to require Party A to provide related documentation,
      such as statistics of related plans and accounting statements; 

    9.1.2
      Party B is entitled to transfer and withhold any amount in whatsoever currency
      from any account opened by Party A with any branch of China Construction Bank,
      for any money payable to Party B by Party A hereunder; 

    9.2
      Obligations of Party B

    9.2.1
      Party B shall make the loan available to Party A in full as scheduled herein,
      except for the delay by virtue of Party A; 

    9.2.2
      Party B shall keep and maintain confidential any and all financial materials
      as
      well as the trade secrets in respect of the production & operation of Party
      A that may be supplied thereby, except to the extent required by related laws
      and regulations. 

    

    ARTICLE
      10 LIABILITIES FOR BREACH 

    10.1
      Breaching Event

    10.1.1
      Breach on the Part of Party A

    10.1.1.1
      Failure to provide true, complete and valid accounting materials, information
      relating to production & operation and others as required by Party B;

    10.1.1.2
      Failure to use the loan for purposes stipulated herein; 

    10.1.1.3
      Failure to repay the principal of and the accrued interest on the loan as
      scheduled; 

    10.1.1.4
      Refuse to be subject to or interfere with the inspection and/or supervision
      by
      Party B over the use of loan by Party A; 

    10.1.1.5
      Transfer of assets, siphoning out fund with an intent to shrug debts;

     

    
      
        
        

      

      
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    10.1.1.6
      Failure to satisfy any due debt as a result of detonation of the operation
      and
      financial standing, or involved or will be involved in any significant suit
      or
      arbitral proceedings or any other legal dispute that suffice to make Party
      B
      believe that the rights and interests of Party B hereunder might be or have
      been
      effected or impaired thereby; 

    10.1.1.7
      Any other debt owed by Party A has effected or might effect the fulfillment
      of
      the obligations by Party A to Party A hereunder; 

    10.1.1.8
      Failure to satisfy other debts owed to China Construction Bank when due;

    10.1.1.9
      Any act occurred on the part of Party A during the term of this Contract, such
      as contracting, lease, consolidation, M&A, joint venture, division, pool,
      stock reconstruction, etc. that results in change in the operation means or
      reconstruction of operation method and that reasonably makes Party B to believe
      its rights and interest hereunder might be or have been effected or impaired
      thereby; 

    10.1.1.10
      Other circumstances which suffice to impair the satisfaction of creditor’s
      rights of Party B in the sole opinion of the same; 

    10.1.1.11
      In breach of other obligations provided herein. 

    

    10.1.2
      Failure by Party A to provide a new security as acceptable to Party B upon
      any
      of the following cases on the part of the surety, shall be deemed a breach
      on
      the part of Party A:

    10.1.2.1
      Occurrence on the part of the surety hereunder, of contracting, lease,
      consolidation, M&A, joint venture, division, pool, stock reconstruction,
      bankruptcy, revocation, etc. that suffice to impair the joint and several
      liability to be assumed by the surety hereunder; 

    10.1.2.2
      The surety hereunder provide such a security for any third party which security
      is beyond its assumption capacity; 

    10.1.2.3
      The surety loses or might lose the capacity to stand as surety; 

    10.1.2.4
      Other breaches on the part of the surety as set out herein. 

    

    10.1.3
      Failure by Party A to provide a new security as acceptable to Party B upon
      any
      of the following cases on the part of the Mortgagor, shall be deemed a breach
      on
      the part of Party A:

    10.1.3.1
      Failure by the Mortgagor to take out or procure the property insurance for
      the
      mortgaged objects, or failure of the Mortgagor to deal with issues relating
      to
      the insurance indemnity as agreed in the Mortgage Agreement, upon any insurance
      accident; 

     

    
      
        
        

      

      
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    10.1.3.2
      Failure of the Mortgagor to deal with issues relating the damages in accordance
      with the Mortgage Agreement upon the damage to, loss of or decrease in the
      value
      of, the mortgaged objects by virtue of the act on the part of any third party;
      

    10.1.3.3
      In the absence of consent from the Party B in writing, gifts, assignment, lease
      out, overlay mortgage, relocation, or otherwise disposition of the mortgaged
      objects on the part of Mortgagor; 

    10.1.3.4
      The Mortgagor disposes of the mortgaged objects with the permission of Party
      B,
      but fails to apply the proceeds from such disposition as stipulated in the
      Mortgage Agreement; 

    10.1.3.5
      The Mortgagor fails to reinstate the value of the mortgaged objects in a timely
      manner or to provide other guarantees acceptable to Party B, upon the damage
      to,
      loss of or decrease in the value of the mortgaged objects that suffice to
      prejudice the satisfaction of the debts hereunder; 

    10.1.3.6
      Other breaches on the part of the Mortgagor as set forth in the Mortgage
      Agreement. 

    

    10.1.4
      Failure by Party A to provide a new security as acceptable to Party B upon
      any
      of the following cases on the part of the Pledgor, shall be deemed a breach
      on
      the part of Party A:

    10.1.4.1
      Failure by the Pledgor to take out or procure the property insurance for the
      mortgaged objects, or failure of the Pledgor to deal with issues relating to
      the
      insurance indemnity as agreed in the Pledge Agreement, upon any insurance
      accident;

    10.1.4.2
      Failure of the Pledgor to deal with issues relating the damages in accordance
      with the Pledge Agreement upon the damage to, loss of or decrease in the value
      of, the pledged objects by virtue of the act on the part of any third
      party;

    10.1.4.3
      The Pledgor disposes of the pledged objects with the permission of Party B,
      but
      fails to apply the proceeds from such disposition as stipulated in the Pledge
      Agreement; 

    10.1.4.4
      The Pledgor fails to reinstate the value of the pledged objects in a timely
      manner or to provide other guarantees acceptable to Party B, upon the damage
      to,
      loss of or decrease in the value of the pledged objects that suffice to
      prejudice the satisfaction of the debts hereunder;

    10.1.4.5
      Other breaches on the part of the Pledgor as set forth in the Pledge
      Agreement.

    

    10.1.5
      Failure of Party A to provide new securities shall be deemed a breach of Party
      A
      upon any of the following cases: the Security Contract or other guarantees
      fails
      to enter into force, is null and void, cancelled, or occurrence of other
      circumstances that result in loss of being a guarantee wholly or partly on
      the
      part of such guarantee hereunder or refusal of such guarantee to perform its
      obligations hereunder. 

     

    
      
        
        

      

      
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    10.2
      Remedies for Breach 

    Party
      B
      is entitled to elect one or several of the rights set out below upon any cases
      set out in 10.1.1 through 10.1.5:

    10.2.1
      Cease to extend the loan, declare all loan due promptly, request Party A to
      repay and/or pay without delay any and all principal of, accrued interests
      thereon as well as costs hereunder, whether due or not at then time.

    10.2.2
      Charge Party A a fine for breach at the rate of
      6.3%
      of the
      principal of the loan hereunder; 

    10.2.3
      In
      case Party A fails to use the loan hereunder as agreed, a penalty interest
      shall
      be charged on any part of loan appropriated, in accordance with related
      regulations of PBC. 

    10.2.4
      A
      compound interest shall be charged on any interest not paid when due by Party
      A
      at the interest rate and in the interest settlement method, prescribed in
      ARTICLE 4 hereof, prior to the scheduled maturity date. 

    10.2.5
      In
      the case of any overdue repayment, appropriate interest and compound interest
      shall be charged on any principal and interest, including the principal and
      interest declared due by Party B ahead of schedule, at the applicable interest
      rate of overdue loan and in the interest settlement manner specified herein.
      Overdue repayment as mentioned hereinabove refers to such repayment of loan
      by
      Party A not as scheduled or beyond the timescale for repayment as set forth
      herein. 

    10.2.6
      Transfer and withhold any amount in any currency, out of the account opened
      by
      Party A with any branch of China Construction Bank. 

    10.2.7
      Request Party A to provide a new security for the debts hereunder subject to
      requirements of Party B. 

    10.2.8
      Enforce the security. 

    10.2.9
      Terminate this Contract. 

    

    
      
        
        

      

      
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    ARTICLE
      11 MISCELLANEOUS

    11.1
      The
      penalty interest as described in ARTICLE 10.2.5 shall be 1.5 time that set
      out
      in ARTICLE 4.1, alternatively 9.3255% per month for any overdue part of the
      loan.
      

    11.2
      It
      is agreed that the penalty interest as described in ARTICLE 10.3 shall be
      charged at double rate as set forth in ARTICLE 4.1, alternatively, 12.434%
      per
      month for any overdue part of loan.

    11.3
      The plan for repayment of loan hereunder shall be made in the principle set
      out
      in the Accounting Rules for Financial Enterprise (hereinafter referred to as
      “ARFE”). In the case of any discrepancy between the ARFE and this Contract, the
      ARFE shall apply. 

    

    ARTICLE
      12 DISPUTE RESOLUTION 

    Any
      dispute arising out of or in connection with this Contract shall be settled
      by
      mutual friendly negotiation, in case no successful settlement reached therefrom,
      either party may institute such dispute with the people’s court at the place
      where Party B resides for determination or submit to ___________ Arbitration
      Committee at the place of __________ for arbitration in accordance with rules
      and procedures then currently in force. The arbitral award reached thereby
      shall
      be final and binding upon both Parties. 

    During
      the action or arbitration, any provisions contained herein shall be continued
      to
      be performed except for matters in dispute. 

    

    ARTICLE
      13 EFFECTIVENESS

    This
      Contract shall enter into force upon being signed and sealed by the legal
      representatives (persons in charge) or duly authorized signatories of both
      Parties hereto. 

    

    ARTICLE
      14
      This
      Contract is made in
      four
      copies.

    ARTICLE
      15 ACKNOWLEDGEMENT 

    15.1
      Party A hereby acknowledges to have clear knowledge of the business scope and
      authority limit of Party B. 

    15.2
      Party A have read carefully all the articles contained herein. Party B has,
      upon
      request of Party A, made appropriate explanation and notes to this Contract.
      Party A has been clearly aware of and fully understood the implication of all
      articles set out herein. 

     

    
      
        
        

      

      
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    15.3
      Party A has the full and sufficient authority and power to sign this Contract.
      

    

    Party
      A:
      (Common Seal)

    Legal
      representative (person in charge) or duly authorized representative:
      (Signature)

    Date:
      19th
      August
      2005

    

    

    Party
      B:
      (Common Seal)

    Person
      in
      charge or duly authorized representative: (Signature) 

    Date:
      22nd
      August
      2005

    

    
      
        
        

      

      
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    MORTGAGE
      CONTRACT

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    CHINA
      CONSTRUCTION BANK

    TIANJIN
      BRANCH

    
      
        
        

      

      
        166

        
          

        

      

      
        
        

      

    

    Contract
      No.: Diya 2005-004

    

    

    

    The
      Mortgagor: Tianjin Daqiuzhuang Metal Sheet Co., Ltd. (hereinafter “Party
      A”)

    Domicile:
      Daqiuzhuang Town, Jinghai County, Tianjin

    Zip
      code:
      301600

    Legal
      Representative (person in charge): Yu Zuosheng 

    Fax:

    Tel:
      28893172

    

    

    

    

    

    

    

    

    The
      Mortgagee: China Construction Bank Tianjin Branch Jinghai
      Sub-branch

    Domicile:
      Jinghai Town, Tianjin

    Zip
      code:
      301600

    Person
      in
      charge: Shi Yichao

    Fax:
      28942873 

    Tel:
      28943946 

    
      
        
        

      

      
        167

        
          

        

      

      
        
        

      

    

    The
      Mortgagor: Tianjin Daqiuzhuang Metal Sheet Co., Ltd. (hereinafter “Party
      A”)

    The
      Mortgagee: China Construction Bank Tianjin Branch Jinghai
      Sub-branch

    

    THIS
      MORTGAGE CONTRACT is made and entered into by and between Party A and Party
      B,
      through mutual friendly negotiation on provision of security, in the form of
      mortgage, by Party A voluntarily for guaranteeing and successful realization
      of
      the creditor’s rights created by the Renminbi Loan Contract (no. gongye2005-004)
      between Party A (also known as “the Debtor”) and Party B (hereinafter “the
      Principal Contract”) , in accordance with relevant laws and regulations, subject
      to the terms and conditions to be set out herein.

    

    ARTICLE
      1 MORTGAGED OBJECTS

    Party
      A
      agrees to provide mortgage with the properties set out in ARTICLE 16- List
      of
      Mortgaged Objects. 

    Party
      A
      undertakes that it has the legal ownership or title or disposal rights of such
      mortgaged objects. 

    Party
      A
      undertakes that no adverse cases such as title dispute, attachment or seizure,
      exist in respect of the mortgaged objects. 

    ARTICLE
      2 GUARANTY SCOPE

    The
      guaranty scope of the mortgage hereunder shall include the principal of the
      loan
      in the sum of RMB
      Eight million One hundred thousand Yuan only,
      the
      accrued interest on the loan, including any compound interest and penalty
      interest, if any, fine for breach, compensation or indemnity, any expenses
      paid
      first by Party B on behalf of Party A, as well as any and all costs and
      expenditure that may be incurred in respect of the realization by Party B of
      its
      creditor’s rights and right to mortgage, including without limitation litigation
      cost, arbitration costs, fees for attachment, travel expense, enforcement fees,
      evaluation charges, as well as auction fees, etc. 

    In
      case the Debtor fails to perform any of its obligations under the Principal
      Contract, Party B shall be entitled to demand Party A to assume the guaranty
      liabilities within the abovementioned guaranty scope, whether or not Party
      B is
      entitled to any other securities or guarantees for its creditor’s rights under
      the Principal Contract, including but not limited to suretyship, mortgage,
      pledge, letter of guarantee, standby l/c, etc. 

     

    
      
        
        

      

      
        168

        
          

        

      

      
        
        

      

    

    ARTICLE
      3 DURATION OF MORTGAGE

    The
      mortgage duration shall remain in effect until and unless two (2) years
      following the expiry of the limitation of action for the guaranteed creditor’s
      rights, comes to the end. 

    ARTICLE
      4 MODIFICATION OF THE GUARANTEED PRINCIPAL CONTRACT

    Party
      A
      hereby acknowledges that a prior consent shall be deemed to have been given
      by
      Party A for any modification of the Principal Contract between Party B and
      the
      Debtor, in no event shall Party A’s guaranty liability be relieved or
      discharged, except for the following cases:

    4.1
      Extend the term for performance of the debts; 

    4.2
      Increase the principal amount of the creditor’s rights. 

    ARTICLE
      5 INDEPENDENCE OF VALIDITY 

    This
      Contract shall be independent from the Principal Contract the invalidity of
      which shall have impact on this Contract for whatever reasons. In case the
      Principal Contact is determined to be invalid, Party A shall be under the
      guaranty liability with the mortgaged objects, for any debt created as a result
      of return or property or compensation for loss on the part of the Debtor.

    ARTICLE
      6 CUSTODY OF MORTGAGED OBJECTS

    During
      the mortgage term, Party A is obliged to take appropriate custody of the
      mortgaged objects, to keep the same from intact, and shall be subject to
      inspection by party B from time to time. Party B shall be keep informed of
      any
      damage to, loss of or any other circumstances resulting in a noticeable decrease
      in value of, the mortgaged objects, in such a case, Party A shall provide Party
      B with any other appropriate guarantees the value of which is equal to the
      decrease in value of the mortgaged objects within
      five
banking
      business days. 

    ARTICLE
      7 INSURANCE FOR MORTGAGED OBJECTS

    During
      the mortgage term, Party A shall take out appropriate property insurance for
      the
      mortgaged objects, in accordance with related laws and regulations, as well
      as
      requirements laid down by Party B in respect of the coverage and insured amount
      therefore. The insurance term shall be three
      (3)
      months
      longer than the performance duration of the Principal Contract, Party A shall
      refrain from suspending or revoking the insurance on whatsoever grounds during
      the specified insurance term. 

    Party
      A
      shall require the to indicate on the policy the following particulars: Party
      B
      is the indemnitee of precedence of the insurance(i.e. the first beneficiary),
      in
      the case of any insurance accident, the Insurer shall pay the indemnity to
      the
      account to be named by Party B. In case the mortgaged objected has been insured
      duly, but Party B is not endorsed as the indemnitee of precedence, Party B
      shall
      be endorsed or registered as the indemnitee of precedence. 

     

    
      
        
        

      

      
        169

        
          

        

      

      
        
        

      

    

    In
      respect of the insurance indemnity, Party A agrees Party B is entitled to take
      any of the following steps and agrees to provide reasonable assistance in
      undergoing related formalities:

    7.1
      Applied to repay or pay of the principal of and accrued interest on the loan
      hereunder, as well as any other expenses in relation thereto; 

    7.2
      Changed into term deposit and the deposit certificate is provided as the pledge;
      

    7.3
      Applies to repair the mortgaged objects for purpose of reinstating the value
      thereof upon consent of Party B; 

    7.4
      Lodged with a third party as appointed by Party B; 

    7.5
      Make
      free disposal of the insurance indemnity upon provision by Party A of any new
      guaranty as required by Party B. 

    ARTICLE
      8 THIRD PARTY DAMAGES

    During
      the mortgage term, any damages as a result of decrease in value of the mortgaged
      objects by reason of the act of any third party shall be paid to the account
      named by Party B. In respect of the said damages, Party A agrees Party B is
      entitled to take any of the following steps and agrees to provide reasonable
      assistance in undergoing related formalities:

    8.1
      Applied to repay or pay the principal of and accrued interest on the loan
      hereunder, as well as any other expenses in relation thereto;

    8.2
      Changed into term deposit and the deposit certificate is provided as the
      pledge;

    8.3
      Applies to repair the mortgaged objects for purpose of reinstating the value
      thereof upon consent of Party B;

    8.4
      Lodged with a third party as appointed by Party B;

    8.5
      Make
      free disposal of the damages upon provision by Party A of any new guaranty
      as
      required by Party B.

    During
      the mortgaged term, Party A shall provide another guaranty acceptable to Party
      B
      in case that the value of the mortgaged objects is less than the principal
      of
      and accrued interests on the loan, as well as any other expenses incurred in
      respect hereunder. The remaining value of the mortgaged objects shall be deemed
      part of the guarantee for the debts.

     

    
      
        
        

      

      
        170

        
          

        

      

      
        
        

      

    

    ARTICLE
      9 DISPOSAL OF MORTGAGED OBJECTS 

    9.1
      During the mortgage term, Party A shall refrain from gifting, assigning, renting
      out, re-mortgaging, relocating or otherwise disposing of the mortgaged objects
      in the absence of prior written consent of Party B. 

    9.2
      Any
      disposal by Party A of the mortgaged objects during the mortgage term shall
      be
      subject to prior written consent from Party B, and Party A hereby agrees that
      Party B is entitled to dispose of the proceeds from such disposal in the manner
      of _______:

    9.2.1
      Applied to repay or pay the principal of and accrued interest on the loan
      hereunder, as well as any other expenses in relation thereto;

    9.2.2
      Changed into term deposit and the deposit certificate is provided as the
      pledge;

    9.2.3
      Lodged with a third party as appointed by Party B;

    9.2.4
      Make absolute disposal of the damages upon provision by Party A of any new
      guaranty as required by Party B.

    ARTICLE
      10 REALIZATION OF MORTGAGE 

    Upon
      any
      of the following cases, Party A agrees that Party B is entitled to auction
      or
      sell the mortgaged objects at an agreed-upon price, in accordance with related
      laws:

    10.1
      Party B fails to be paid upon the expiry of the performance term for the
      repayment of the principal of the loan or the accrued interest on the loan,
      wholly or partly, hereunder; 

    10.2
      Other events allowing Party B to realize its creditor’s rights ahead of schedule
      as stipulated herein. 

    ARTICLE
      11 BREACH OF CONTACT 

    During
      the mortgage term, in the case of any breach of ARTICLE 1, ARTICLE 6, ARTICLE
      7,
      ARTICLE 8, ARTICLE 9 hereof on the part of Party A, Party B is entitled to
      require Party A to make appropriate correction within a specified timeframe,
      provide appropriate guaranty and/or make appropriate compensation for any loss
      therefrom, without prejudice to its right to dispose of the mortgaged objects
      in
      advance. 

    Party
      A
      hereby agrees that Party B is entitled to apply the proceeds from such disposal
      in the manner of ______________:

    11.1
      Applied to repay or pay the principal of and accrued interest on the loan
      hereunder, as well as any other expenses in relation thereto;

     

    
      
        
        

      

      
        171

        
          

        

      

      
        
        

      

    

    11.2
      Changed into term deposit and the deposit certificate is provided as the
      pledge;

    11.3
      Lodged with a third party as appointed by Party B;

    11.4
      Make
      absolute disposal of the damages upon provision by Party A of any new guaranty
      as required by Party B.

    ARTICLE
      12 REGISTRATION AND DEREGISTRATION OF MORTGAGED OBJECTS

    In
      case
      appropriate registration is necessitated by the mortgaged objects, both parties
      hereto shall work together to make required registration with appropriate
      registry office upon signing of this Contract. Party A shall, at the effective
      date hereof, supply Party B with the certificate of other rights in the
      mortgaged objects, the original of the mortgage registration document, as well
      as any other right certificates all of which shall be in possession of Party
      B.

    Party
      B
      shall work with Party A in a timely manner to deregister the mortgaged objects
      with the appropriate registry office upon the satisfaction of the whole debts
      under the Principal Contract and this Contract. 

    ARTICLE
      13 ASSUMPTION OF COSTS 

    Any
      and
      all costs and expenses in respect of the evaluation, public notarization,
      insurance, registration, authentication, custody, as well as drawing, etc.
      shall
      be borne by Party A. 

    ARTICLE
      14 OTHER PROVISIONS BOTH PARTIES AGREE UPON

    13.1_______[Intentionally
      left blank]___________________________; 

    13.2_______[Intentionally
      left blank]___________________________; 

    13.3
      _______[Intentionally
      left blank]___________________________;

    13.4_______[Intentionally
      left blank]___________________________;

    

    ARTICLE
      14 DISPUTE RESOLUTION

    Any
      dispute arising out of or in connection with the performance of this Contract
      shall be settled by friendly negotiation between both Parties, in case of no
      successful settlement therefrom, either party may elect to:____
      (optional)

    14.1
      Lodge an action with the people’s court at the place where Party b resides; or

    14.2
      Submit to ___[BLANK]____
      Arbitration Committee for determination at the place of _________ in accordance
      with rules and procedures then currently in force. The arbitral award is final
      and binding upon both parties. 

     

    
      
        
        

      

      
        172

        
          

        

      

      
        
        

      

    

    During
      the arbitration or action period, any provisions other than those in dispute
      or
      at issue shall continued to be performed by appropriate party or parties.

    ARTICLE
      15 LIST OF MORTGAGED OBJECTS

    The
      List
      of Mortgaged Objects is as follows:

    List
      of
      Mortgaged Objects

    
      	
              Name
                of Mortgaged Object

            	
              Title
                Certificate or Number

            	
              Location

            	
              Value
                Shown in the Invoice of the Mortgaged Object(ten thousand
                Yuan)

            	
              Evaluated
                Value of Mortgage Object (ten thousand Yuan)

            	
              Amount
                mortgaged for other creditor’s rights

            	
              Remarks

            
	
              Machines
                & Equipments

            	
              Daqiuzhuang
                

              Town

            	
              1850.9

            	
              1778.75

            	
              None

            	
              See
                Schedule attached

            	 
	 	 	 	 	 	 	 

    

    

    ARTICLE
      17 PREREQUISITES FOR EFFECTIVENESS OF THIS CONTRAT

    17.1
      This
      Contract shall enter into force upon the signature and/or common seal (signature
      is in need only in the case of Party A being individual) by legal representative
      (person in charge) or duly authorized signatory and the person in charge or
      duly
      authorized signatory of Party B; 

    17.2
      Registration has been duly completed for the mortgaged objects set out in the
      List of Mortgaged Objects hereinabove. 

    ARTICLE
      18
      This
      Contract is made in four
      copies.

    ARTICLE
      19 ACKNOWLEDGEMENT

    19.1
      Party A hereby acknowledges to have clear knowledge of the business scope and
      authority limit of Party B. 

     

    
      
        
        

      

      
        173

        
          

        

      

      
        
        

      

    

    19.2
      Party A have read carefully all the articles contained herein and gave special
      attention to the articles written in extra black letters. Party B has, upon
      request of Party A, made appropriate explanation and notes to this Contract.
      Party A has been clearly aware of and fully understood the implication of all
      articles set out herein. 

    19.3
      Party A has the full and sufficient authority and power to sign this Contract.
      

    

    Party
      A:
      (Common Seal)

    Legal
      representative (person in charge) or duly authorized representative:
      (Signature)

    Date:
      19th
      August
      2005

    

    

    Party
      B:
      (Common Seal)

    Person
      in
      charge or duly authorized representative: (Signature) 

    Date:
      22nd
      August
      2005

    
      
        
        

      

      
        174

        
          

        

      

      
        
        

      

    

    List
      of
      Mortgaged Objects

     

    The
      Mortgagor:                             Registration
      No.:

    
      	
              Name

            	
              Brand

            	
              Specification

            	
              Code

            	
              Quantity

            	
              Value

            
	
              Main
                motor

            	 	
              1000kw

            	 	
              4

            	
              1,359,000

            
	
              Rolling
                machine

            	 	
              1200

            	 	
              1
                unit

            	
              10,960,000

            
	
              Roll
                straightener

            	 	
              17

            	 	
              2
                

            	
              1,109,745

            
	
              Surface
                grinding machine

            	 	
              M7140B

            	 	
              1

            	
              140,700

            
	
              Generator

            	 	
              80kw

            	 	
              1

            	
              179,200

            
	
              Rolled
                sheet flattering machine

            	 	 	 	 	
              579,600

            
	
              Unprocessed
                rolled sheet straightener

            	 	
              9
                

            	 	
              2
                

            	
              513,045

            
	
              Low
                voltage cubicle switchboard

            	 	 	 	
              1
                set 

            	
              448,000

            
	
              High
                voltage cubicle switchboard

            	 	 	 	
              1
                set 

            	
              615,000

            
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
              Total

            	 	 	 	 	
              17,787,290

            
	
              Total
                value of mortgaged objects/currency ( )

            	
              Say
                RMB seventeen million seven hundred and seven thousand two hundred
                and
                ninety Yuan only

            

    

    

    

    
      
        
        

      

      
        175

        
          

        

      

      
        
        

      

    

    

    

    

    LOAN
      CONTRACT

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    CHINA
      MERCHANTS BANK

    FEB
      2004

    
      
        
        

      

      
        176

        
          

        

      

      
        
        

      

    

     Contract
      No.: [2005]Daizhidi5014

    Parties
      to this Loan Contract: 

    The
      Lender: China Merchants Bank Tianjin Branch (hereinafter referred to as “Party
      A”)

    Person
      in
      charge: Yang Yuehua

    Position:
      President

    Address: 55
      North
      Youyi Road Hexi District, Tianjin 

    Tel:
      

    And
      

    The
      Borrower: Tianjin Daqiuzhuang Metal Sheet Co., Ltd. (hereinafter referred to
      as
“Party B”)

    Legal
      Representative: Yu Zuosheng

    Position:
      Chairman of the Board

    Address:
      Daqiuzhuang, Jinghai County, Tianjin

    Tel:
      

    

    WHEREAS,
      Party B
      has applied to Party A for a
      certain amount of loan
      for
      purpose of Working
      Capital.
      

    WHEREAS,
      Party A
      agrees to extend such a loan after due process of examination. 

    NOW,
      THEREFORE, both
      Parties agree to enter into this Loan Contract based on the negotiation in
      regard thereto in accordance with relevant laws and regulations, subject to
      the
      terms and conditions to be set out hereinafter. 

    

    
      
        
        

      

      
        177

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      1
      TYPE OF LOAN

     

    This
      Loan
      to be provided hereunder is
      Working Capital Loan.
      

    ARTICLE
      2 CURRENCY AND AMOUNT OF LOAN

    The
      loan
      shall be provided in the currency of RMB
      and in
      the amount of Forty
      Million Yuan Only.
      

    ARTICLE
      3 LOAN PURPOSE 

    The
      loan
      hereunder shall be used for purpose of working capital only, no diversion for
      other purposes may be done without first obtaining written consent from Party
      A. 

    ARTICLE
      4 LOAN TERM

    The
      term
      of the loan is twelve (12) months, commencing from 20 June 2005 and ending
      on 19
      June 2006. In case the date of the actual loan availability fails to coincide
      with the abovementioned starting date of the term, the dates shown in the loan
      receipt shall apply. 

    ARTICLE
      5 INTEREST RATE AND INTEREST

    5.1
      Interest rate: The interest rate is agreed to be:_____(optional)

    
      	
              o

            	
              Fixed
                interest rate:
                _______________________

            

    

    
      	
              
                o

              

            	
              Floating
                interest rate: 5.86%, to be adjusted on daily basis.
                

            

    

    A
      penalty
      interest at the double
      rate of
      the aforesaid interest rate shall be charged on any part of loan the purpose
      of
      which is changed, appropriated or diverted for other purposes by Party B without
      permission from Party A, without excluding the accrued interest in the ordinary
      course. A penalty interest which 1.5 times that as aforementioned and elected,
      shall be charged on any part of loan not paid by Party B when due. 

    Appropriate
      interest shall be charged at the abovementioned penalty interest rate on any
      part of loan which is overdue or diverted for other purposes not prescribed
      herein as from the date of such due date or diversion of such part of loan,
      until the principal of the loan together with accrued interest is discharged
      in
      full. 

     

    
      
        
        

      

      
        178

        
          

        

      

      
        
        

      

    

    In
      the
      case of any adjustment by the People’s Bank of China (hereinafter referred to as
“PBC”) to the interest rate herein, the interest on the loan shall be calculated
      at the interest rate so adjusted. 

    5.2
      Interest Calculation: the interest on the loan shall accrue as from the date
      of
      the actual availability to Party B and on the basis of number of days during
      which the loan is outstanding, as well as the actual amount of the loan extended
      hereunder, and the interest shall be computed on the 20th
      day of
      the last month of each applicable quarter. 

    5.3
      Interest Settlement: Party B shall pay any and all accrued interest on the
      loan
      at each applicable interest computation date which accrued interest may be
      directly withheld or deducted by Party A from any deposit account of Party
      B. In
      case Party B fails to pay the accrued interest, Party A shall have the right
      to
      charge Party B a compound interest at the abovementioned penalty interest rate
      on any overdue interest accrued hereunder. 

    ARTICLE
      6 SECURITY 

    6.1
      Tianjin
      Sheng Da Steel Mill Co.,Ltd.
      and
Baotou
      Shengda Industrial Co., Ltd.
      as named
      by Party B shall stand for surety for the principal, accrued interest thereon,
      as well as the any and all other costs in respect thereof hereunder both of
      the
      companies shall provide Party A with irrevocable guaranty letters, and/or

    6.2
      The
      mortgage (pledge) shall be provided for the loan hereunder by _______ company
      or
      ________ individual with the _________ owned or subject to legal disposal by
      the
      same, for which a mortgage or pledge contract is to be concluded by both
      parties. 

    ARTICLE
      7 RIGHTS AND OBLIGATIONS OF PARTY B 

    7.1
      Party
      B shall have the rights to be set out hereinafter:

    7.1.1
      To
      withdraw and use the whole of loan as agreed herein; 

    7.1.2
      To
      deny any additional preconditions not stipulated herein; 

    7.1.3
      To
      assign or transfer its debt to any third party upon consent of Party A;

    7.2
      Party
      B shall be under the following obligations:

     

    
      
        
        

      

      
        179

        
          

        

      

      
        
        

      

    

    7.2.1
      To
      provide any documents and/or materials as required by Party A, as well as the
      information relating to all of its depository banks, accounts number and balance
      existing therein, and to provide assistance in any investigation, examination
      as
      well as inspection to be carried out by Party A in respect of the loan
      hereunder; 

    7.2.2
      To
      be subject to reasonable supervision by Party A over Party B’s use of the credit
      loan, as well as supervision by the same over Party B’s production &
operation and the financial activities; 

    7.2.3
      To
      use the loan subject to the terms and conditions set out herein; 

    7.2.4
      To
      repay and pay in full the principal of and accrued interest on the loan as
      scheduled herein; 

    7.2.5
      To
      be subject to Party A’s prior written consent in the case of assignment or
      transfer of its debts hereunder, in whole or part, to any third party;

    7.2.6
      Upon any of the following cases, Party B is required to notify Party A promptly
      and to take reasonable security measures necessary for repayment or
      reimbursement in full of the principal of and accrued interest on the loan
      hereunder, as well as any and all other costs that may occur
      hereunder:

    7.2.6.1
      Substantial financial loss, assets loss or other financial crisis; 

    7.2.6.2
      Provision of loan or stand surety, or provision of mortgage (pledge) with its
      own properties (rights), for purpose of any third party’s interest or protecting
      any third party from any loss; 

    7.2.6.3
      Consolidation (M&A), division, reconstruction, joint venture (cooperative),
      transfer of property rights, stock reconstruction, etc; 

    7.2.6.4
      Cease to carry out business, have its business license suspended or
      deregistered, apply by itself or others to be bankrupt, or dissolution, etc;
      

    7.2.6.5
      Its controlling shareholder or other affiliates experience substantial operation
      or financial crisis that may impair the ordinary operation thereof;

    7.2.6.6
      Conduct related transactions with its controlling shareholders or other
      affiliates that may be materially adverse to its ordinary operation;

    7.2.6.7
      Occurrence of any suit, arbitration, or criminal or administrative penalty
      that
      may be materially adverse to its operation or financial standing; 

     

    
      
        
        

      

      
        180

        
          

        

      

      
        
        

      

    

    7.2.6.8
      Occurrence of any breaking events that may affect its repayment
      capacity.

    ARTICLE
      8 RIGHTS AND OBLIGATIONS OF PARTY A 

    8.1
      Party
      A shall have the following rights:

    8.1.1
      To
      require Party B to repay the principal of and accrued interest on the loan
      as
      scheduled herein; 

    8.1.2
      To
      request Party B to provide materials relating to the loan hereunder;

    8.1.3
      To
      find out information in respect of Party B’s production & operation as well
      as financial activities; 

    8.1.4
      To
      supervise the use by Party B of the loan hereunder;

    8.1.5
      To
      directly transfer and withhold the amount for repayment of the due principal
      of
      and accrued interest on the loan, out of any of Party B’s bank accounts;

    8.1.6
      To
      require Party B to repay the loan ahead of schedule or to suspend any part
      of
      loan that remains unused by Party B, in accordance with this Contract, in case
      Party B fails to perform any of its obligations hereunder; 

    8.1.7
      To
      require Party B to repay promptly the principal of and accrued interest of
      the
      loan, as well as any other costs that may occur hereunder, or to transfer all
      of
      Party B’s debts hereunder to any assignee permitted by Party A, or to
      provide/increase any appropriate security or guaranty acceptable to Party A.
      

    8.2
      Party
      A shall be under the following obligations: 

    8.2.1
      To
      extend the loan in accordance herewith; 

    8.2.2
      To
      keep or maintain confidential any and all information in relation to Party
      B’s
      debts, finance, production, as well as operation, etc. except as otherwise
      provided for by related laws; 

    ARTICLE
      9 PARTY HEREBY REPRESENTS AND WARRANTS TO PARTY A THAT:

    9.1
      Party
      B is an enterprise duly incorporated under the laws of the People’s Republic of
      China (hereinafter “PRC”) and existing legally, has the legal person status, as
      well as the full civil act capacity to sign and perform this Contract;

    9.2
      Party
      B has been fully authorized by the Board of Directors or any other authorities
      to sign and perform this Contract; 

     

    
      
        
        

      

      
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    9.3
      The
      documentation, materials as well as the vouchers to be provided by Party B
      in
      relation to Party B, surety, mortgagor(pledgor), as well as the mortgaged or
      pledged objects are true, accurate, complete and valid, free from any
      significant mistakes inconsistent with facts or any substantial omission;

    9.4
      At
      the time of signing this Contract, no suit, arbitration, criminal or
      administrative penalty that may be materially adverse to Party B or its
      principal property occur(s), nor may the same threaten(s) to occur during
      performance of this Contract, otherwise, Party B is required to notify Party
      A
      promptly; 

    9.5
      To be
      in strict compliance with any applicable national laws and regulations in its
      operation, to strictly abide by the business scope prescribed by its Business
      License for Incorporated Enterprise in conducting business, as well as to go
      through enterprise (legal person) annual inspection & registration
      formalities in time; 

    9.6
      To
      maintain or increase the current operation or management level to ensure the
      value preservation and appreciation of the existing assets, not to waive any
      due
      creditor rights, not to dispose of the existing principal property free or
      otherwise; 

    9.7
      No
      significant event that suffice to prejudice the performance by Party B of any
      obligations hereunder exists at the time of signing this Contract. 

    ARTICLE
      10 PREPAYMENT 

    10.1
      Party B may request to repay the loan ahead of schedule, provided however a
      prior consent from Party A has been obtained; 

    10.2
      In
      the case of any repayment ahead of schedule, the interest shall be computed
      and
      settled at the rate specified herein. 

    ARTICLE
      11 LOAN EXTENSION 

    In
      case
      Party B is unable to repay the loan hereunder as scheduled and requests for
      an
      extension therefore, Party B shall submit an application for that purpose one
      month prior to the scheduled expiry date hereof; An Agreement on Loan Contract
      Extension shall be concluded by both Parties in case Party A consents to such
      intended extension after due process of examination, otherwise, this Contract
      shall remain in full force and effect. Party B is obliged to repay any part
      of
      loan used by Party B together with accrued interest, as provided herein.

     

    
      
        
        

      

      
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    ARTICLE
      12 COSTS & EXPENSES

    Any
      and
      all costs and expenses in respect hereof shall be borne by Party B in full,
      including those incurred in respect of the inquiry of creditworthiness,
      inspection, public notarization, etc. in connection herewith, attorney’s fee,
      suit costs as well as travel expense, etc. incurred by Party A in realizing
      its
      creditor’s rights in case Party B fails to repay the principal of and accrued
      interest on the loan hereunder and to reimburse the fees payable by Party B
      as
      scheduled, Party B hereby authorizes Party a to directly withhold any such
      amount out of Party B’s bank account, any deficiency existing after such
      withholding shall be reimbursed by Party B in full to Party A upon receipt
      of a
      notice requesting to do so from Party A without further need to provide any
      proof. 

    ARTICLE
      13 BREACHING EVENTS AND SETTLEMENT

    13.1
      Any
      of the following shall be deemed a breach on the part of Party B:

    13.1.1
      The information provided by Party B to Party A is falsified or conceals
      significant facts, failure by Party B to assist Party A in investigation,
      examination as well as inspection, in breach of ARTICLE 7.2.1 hereof, Party
      B
      fails to make appropriate correction within a timeframe specified by Party
      A,
      the circumstances are rather serious; 

    13.1.2
      Party B refuses to be subject to or shrugs off the supervision by Party A over
      the use of credit loan by Party B, related production & operation, as well
      as financial activities, in contravention of ARTICLE 7.2.2, the circumstances
      are serious; 

    13.1.3
      Party B fails to use the loan for purposes described herein, in contravention
      of
      ARTICLE 7.2.3. 

    13.1.4
      Party B fails to repay the principal of and accrued interest on the loan in
      full
      and as scheduled herein, as in contravention of ARTICLE 7.2.4 hereof;

    13.1.5
      Party B unilaterally assigns its debts hereunder to any third party that may
      prejudice Party A’s interests, as in contravention of ARTICLE 7.2.5 hereof;

     

    
      
        
        

      

      
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    13.1.6
      Party B fails to notify Party A of any event set out in ARTICLE 7.2.6 in a
      timely manner, or Party B refuses to increase the security or guaranty for
      repayment of debts hereunder as required by Party A being aware of any such
      events described in ARTICLE 7.2.26 hereinabove, or any other events occurring
      on
      the part of Party B that may impair the safe recovery of the loan in the sole
      opinion of Party A; 

    13.1.7
      Party A’s interest is impaired as a result of Party B’s act in contravention of
ARTICLE
      9.1,
      9.2, and/or 9.4, or as a result of failure of Party B to make prompt correction
      as required by Party A; 

    13.1.8
      Any other events occurring on the part of Party B that may prejudice the
      legitimate rights and interests of Party A in the sole opinion of the same;
      

    13.2
      Upon
      any of the following cases on the part of the surety hereunder that may affect
      the guaranty capacity of the surety as in the sole opinion of Party A, failure
      of the surety and/or Party B to exclude any adverse impact as a result thereof
      or increase or change the security or guaranty shall be deemed as a breach
      of
      Party B:

    13.2.1
      Occurrence of any of the cases similar to those set out in ARTICLE 7.2.6 hereof;
      

    13.2.2
      Conceals the capacity to stand surety or fails to be authorized by related
      authority at the time of issuance of the irrevocable guaranty letter;

    13.2.3
      Fails to go through annual inspection and registration formalities in a timely
      manner; 

    13.2.4
      Neglect in management and recourse of any due creditor’s rights, or disposes of
      its principal property without compensation or otherwise. 

    13.3
      Upon
      any of the following cases on the part of the Mortgagor (Pledgor) hereunder
      that
      may result in the failure of such mortgage (pledge) or value deficiency of
      the
      mortgaged or pledged objects, as in the sole opinion of Party A, failure of
      the
      Mortgagor (Pledgor) to exclude any adverse impact as a result thereof or failure
      of Party B to increase or change the security or guaranty, as required by Party
      A shall be deemed as a breach of Party B:

    13.3.1
      Has no title in or disposal rights of the mortgaged or pledged objects, or
      the
      title therein remain unclear; 

     

    
      
        
        

      

      
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    13.3.2
      Conceals the fact that the mortgaged or pledged objects are co-owned, have
      been
      leased out, have been sealed up, or have been in custody, etc.; 

    13.2.3
      The Mortgagor, without the written consent from Party A, assigns, rents,
      remortgages, or otherwise disposes of the mortgaged objects; 

    13.2.4
      A
      considerable appreciation in value of the mortgaged objects as a result of
      failure of the Mortgagor to take appropriate custody of, maintenance and repair
      on the mortgaged objects; or reduction in value of mortgaged objects as a result
      of act of the Mortgagor threatening the mortgaged objects; or the Mortgagor
      fails to procure insurance for the mortgaged objects as required by the Party
      A
      within the agreed upon mortgage term; 

    13.4
      Upon
      any breaching events set out in 13.1, 13.2, as well as 13.3 hereinabove, Party
      A
      is entitled to elect to take any or several in combination of the following
      steps to which Party B shall refrain from making any objection:

    13.4.1
      Cease to provide any part of loan unused by Party B; 

    13.4.2
      Reclaim the principal of the loan together with accrued interest, to the extent
      made available to Party B, as well as related expenses, ahead of schedule;
      

    13.4.3
      Directly withhold any amount out of the settlement account or other accounts
      of
      Party B, to repay the debts hereunder; 

    13.4.4
      Exercise the recourse rights pursuant to this Contract. 

    ARTICLE
      14 MODIFICATION AND TERMINATION OF CONTRACT

    This
      Contract may be modified or terminated upon agreement between both Parties
      in
      writing. Prior to concluding of such written agreement, this Contract shall
      remain in full force and effect. Neither party hereto may modify, revise or
      terminate this Contract without consent and agreement of the other party.

    ARTICLE
      15 MISCELLANEOUS 

    15.1
      During the whole life of this Contract, no tolerance, grace period, or
      suspension to enforce any of the rights and interests or powers of Party A
      hereunder, as may be granted by Party A to Party B in respect of any breach
      or
      delay on the part of Party B may impair, affect, or limit any rights and
      interests, or powers of Party A as the creditor in accordance with this Contract
      and related laws and regulations, nor shall be construed as the permission
      or
      recognition by Party A of any breach on the part of Party B, or as the waiver
      by
      Party A of any right to take appropriate actions against any present or future
      breach of Party B. 

     

    
      
        
        

      

      
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    15.2
      Party B shall perform any and all repayment obligations in disregard of the
      fact
      that this Contract, in whole or part, is determined null and void at law for
      whatsoever reasons, in such a case, Party A is entitled to terminate this
      Contract and promptly reclaim against Party B the principal of and accrued
      interest on the loan hereunder, as well as other related amounts. 

    15.3
      Any
      notice and request to be made by either party hereunder shall be in writing.
      The
      telegraph and/or telex shall be deemed effectively given upon sending by Party
      A, and the communication shall be deemed effectively given upon being delivered
      to appropriate post office by Party A. 

    15.4
      The
      loan receipt as well as any written supplemental agreement between both Parties
      on any issue not defined herein or on revision of this Contract shall be
      attached as appendices to this Contract and constitute integral parts hereof.
      

    ARTICLE
      16 GOVERNING LAW AND DISPUTE RESOLUTION 

    16.1
      The
      formation, interpretation, as well as dispute resolution in respect of this
      Contract shall be governed by the laws of the People’s Republic of China, the
      rights and interests of both parties hereto shall be under protection of the
      same. 

    16.2
      Any
      dispute arising out of or in connection with the performance of this Contract
      shall be settled by friendly negotiation between both Parties, in case of no
      successful settlement therefrom, either party may elect to:____ (optional,
      either 16.2.1 or 16.2.2)

    16.2.1
      Lodge an action with the people’s court at the place where Party A resides; or

    16.2.2
      Submit to _____________ Arbitration Committee for determination in accordance
      with rules and procedures then currently in force.

    16.3
      Once
      appropriate public notarization is completed which gives rise to the
      enforceability of this Contract, Party A may directly apply to any People’s
      Court having appropriate jurisdiction thereover to enforce this Contract for
      purpose of recovering any due and payable debts hereunder. 

     

    
      
        
        

      

      
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    ARTICLE
      17 EFFECTIVENESS

    17.1
      This
      Contract shall enter into and remain in force conditional upon the signature,
      common seal by duly authorized representatives of both parties, as well as
      upon
      completion of the formalities for security or guaranty as set forth in ARTICLE
      6
      hereof, until any and all principal of and the accrued interest on the loan,
      as
      well as any other costs in respect thereof are paid up. 

    17.2
      This
      Contract is made in four copies being equally authentic. Party A holds two
      (2)
      copies thereof, each of Party B and _____ holds one (1) copies thereof.

    

    

    [Below
      is intentionally left blank]

    

    

      
        	
                Party
                  A(Common Seal):

              	
                Party
                  B(Common Seal):

              
	 	 
	
                Duly
                  Authorized Signatory:

              	
                Duly
                  Authorized Signatory:

              
	 	 
	
                Date:
                  20th
                  June 2005

              	
                Date:
                  20th
                  June 2005

              

      

    

    

    
      
        
        

      

      
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    Credit
      Extension Contract

    øIssued
      in
      July, 2003÷

    

    Accrediting
      party: Tianjin branch Merchant Bank, (hereinafter referred to as Party
      A)

    Domicile:
      No.55 Youyibei Road, Hexi District, Tianjin 

    Legal
      representative/Principle: Yang Yuehua Deputy: President 

    

    Fiduciary:
      Tianjin Daqiuzhuang Metal Sheet Co., Ltd.

    Domicile:
      Daqiuzhuang Town, Jinghai Country, Tianjin City

    Legal
      representative: Yu Zuosheng Deputy: Chairman of Directors

    

    With
      the
      application of Party B, Party A agrees to credit Party B credit extension for
      RMB
      40,000,000 Yuan
      (including the equivalent foreign currency). Both parties signed this agreement
      through sufficient negotiation pertaining to the related laws.

    

    Article
      1
      Maximum Credit Extension

    The
      credit extension refers to the maximum credit extension of off-balance sheet
      business (hereinafter referred to as Loan) including loan, trading financing
      (including packing credit and import and export documentary credit etc) and
      discount (hereinafter referred to as Loan), and the maximum credit extension
      of
      on-balance sheet business including Commercial Bill Acceptance, opening L/C
      and
      letter of guarantee. 

    The
      credit extensions aforesaid are not including the relevant credit extension
      of
      guarantee fund or hypothecation of deposit receipt supplied by Party B or any
      third party, which is the same in the whole contract. 

    The
      businesses and their scopes credited by Party A shall be confirmed in accordance
      with Article 3 of this agreement. 

    

    Article
      2
      Credit Extension Period

    The
      credit extension period is 1 year, from June 20, 2005 to June 19, 2006. Party
      B
      shall apply for credit extension in this period, or Party A will not accept.
      

    

    Article
      3
      Usage of Credit Extension Limit

    3.1
      The
      type and scope of credit extension limit

    The
      credit extension limit aforesaid shall be (please elect one type between general
      credit extension and single credit extension):

    3.1.1
      General credit extension, which was allocated as follows:

    3.1.1.1
      Working Capital loan: RMB 40,000,000
      Yuan;

    3.1.1.2
      Trading financing: the equivalent foreign currency with RMB Yuan
      (or ,
       ).
      

    3.1.1.3
      Bank acceptance: RMB Yuan

    3.1.1.4
      Commercial accepted bill: RMB Yuan

     

    
      
        
        

      

      
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    3.1.1.5
      The Commercial bill acceptance: RMB Yuan;

    3.1.1.6
      Letter of Credit: the equivalent foreign currency with RMB Yuan
      (or ,
       ).

    3.1.1.7
      Letter of guarantee: RMB Yuan.

    With
      the
      assent of Party B, the specific credit extension aforesaid could be relieved
      with each other

    3.1.2
      Single Credit Extension Limit.

    3.2
      During the credit extension period, Party B can use the credit extension limit
      in circle, but it shall apply for each credit, and Party A will approve for
      each
      credit. Both parties shall sign another specific contracts (hereinafter referred
      to as each specific contracts) to confirm it.

    3.3
      In
      the credit extension limit, each loan or other credit extension shall be
      confirmed the specific usage period in accordance with the operation requirement
      of Party B and the business administration of Party A, and each expiration
      date
      could be later than the expiration date of the credit extension period.

    

    Article
      4
      Interests and charges

    The
      interests for loan and financing and the charges for acceptance, opening L/C
      and
      letter of guarantee shall be paid in accordance with the each specific contract.
      

    

    Article
      5
      Guarantee

    5.1
      Tianjin
      Sheng Da Steel Mill Co.,Ltd. and Baotou Shengda Industry Co.,
      Ltd.
      will
      take the joint guarantee responsibilities for any debt of Party B to Party
      A
      under this agreement. These two companies shall produce Irrevocable Guarantee
      Letter for Maximum Credit Extension to Party A, and/or

    5.2
       Company
      will enter into mortgage (hypothecation) contract by its owned or
      disposed assets
      to
      guarantee any debt of Party B to Party A under this agreement. 

     

    Article
      6
      The rights and obligations of Party B

    6.1
      Party
      B has the rights as follows: 

    6.1.1
      it
      has right to require Party A to release the loan in the credit extension limit
      in accordance with this agreement; 

    6.1.2
      it
      has right to use the credit extension in accordance with this
      agreement;

    6.1.3
      it
      has right to require Party A to keep secrecy to production, operation, financial
      status and accounts, unless otherwise regulated by the law;

    6.1.4
      it
      has right to transfer its debts to third party with the agreement of Party
      A.

    6.2
      Party
      B takes the liabilities as follows: 

    6.2.1
      it
      shall submit the documents, opening bank, account Number and balance of deposit
      and loan according to the facts with the requirement of Party A, and cooperate
      with the investigation, review and inspection of Party A; 

    6.2.2
      it
      shall accept the supervision of Party A in usage of credit loan, production,
      operation and financial activities; 

    6.2.3
      it shall use the loan and /or other credit extension pertaining to each specific
      contract; 

     

    
      
        
        

      

      
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    6.2.4
      it
      shall pay the loan and/or principles and interests in advance in sufficient
      within the confirmed time;

    6.2.5
      it
      shall be agreed with Party A in written if it would transfer its debts to third
      party totally or partly;

    6.2.6
      it
      shall notice Party A immediately and cooperate with Party A to fulfill the
      safeguard measures for the loan under this agreement, other credit principle
      and
      interests and any related charge, if:

    6.2.6.1
      there is material financial loss or any other financial crisis;

    6.2.6.2
      it supply loan or guarantee to any third party, or enter into mortgage
      (hypothecation) by using its own property (right);

    6.2.6.3
      There is alternation such as combination, division, recombination, joint venture
      (joint cooperation), transfer of shares, reformation of shares etc;

    6.2.6.4
      There is stopping operation, revoking or withdrawing the business license,
      and
      applying or being applied for dismiss;

    6.2.6.5
      There is material crisis in operation or financial status for its holding
      shareholders or other related companies, which has already affected the normal
      operation of the company;

    6.2.6.6
      There is material related transaction with its holding shareholders and its
      related companies, which has already affected its normal operation;

    6.2.6.7
      There is any litigation, arbitration or criminal or administrative penalty,
      which would have bad effect to the operation or financial status;

    6.2.6.8
      There is any other material matters which would affect its liabilities to pay
      off debt.

    

    Article
      7
      Rights and obligations of Party A

    7.1.
      Party A has the rights as follows:

    7.1.1
      it
      has the right to require Party B to return the loan and the principle and
      interest paid in advance under this agreement within the due time;

    7.1.2
      it
      has right to require Party B to submit any related information related to the
      credit extension limit;

    7.1.3
      it
      has right to know the production and financial activities of Party
      B;

    7.1.4
      it
      has right to supervise the usage of loan or any other credit extension under
      this agreement and each specific contract;

    7.1.5
      it
      has right to transfer the loan and/or principles and interests paid in advance
      from the account of Party B;

    7.1.6
      it
      has right to terminate the loan unused or other credit extension in the credit
      extension limit and require Party B to pay off the loan leased in advance if
      Party B does not fulfill any obligation under this agreement and/or each
      specific contract; ]

    7.1.7
      it
      has right to terminate the loan unused or other credit extension in the credit
      extension limit and require Party B to pay off the loan and/or principles and
      interests and any related charges, or transfer the debts to assignee accepted
      by
      Party A, or render/add new guarantee accepted by Party A if any circumstance
      happened in Article 6.2.6.

     

    
      
        
        

      

      
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    7.2
      Party
      A has the obligations as follows:

    7.2.1
      it
      shall release loan or render other credit extension in the credit extension
      limitation in accordance with this agreement and each specific contract;

    7.2.2
      it
      shall keep the secrecy to the assets, finance, production and operation of
      Party
      B unless otherwise regulated by law.

    

    Article
      8
      Party B guarantees as follows:

    8.1
      Party
      B is the business corporation established and operated pertaining to the Chinese
      Laws, which has civil capacity to sign and fulfill this agreement;

    8.2
      it
      has been authorized by Board of Directors or any other qualified institution
      to
      sign and fulfill this agreement;

    8.3
      The
      information submitted by Party B about Party B, mortgager (pledger), information
      and documents, vouchers of mortgage and hypothecation are true, complete and
      valid, which has no or omitted material errors. 

    8.4
      There
      is no any litigation, arbitration or criminal or administrative penalty, which
      would result material result to Party B or its main assets when signing this
      agreement, and there shall be no any litigation, arbitration or criminal or
      administrative penalty in the period of executing this agreement. Or Party
      B
      shall notice Party A immediately;

    8.5
      It
      abides by the laws and regulations of China in the operation, and expands each
      business in the business scope in the business license, and transacts procure
      for yearly register. 

    8.6
      It
      keeps or improves its operation level to ensure the increase of the current
      asset, and do not give up any maturity debt rights, or dispose the current
      property for free or in improper way.

    8.7
      There
      is no any material item, which would affect the fulfillment of this
      agreement.

    

    Article
      9
      Other charges

    Party
      B
      shall bear all charges and expenses arisen from credit information, inspection,
      and notarization and the retaining fee, litigation fee and expenses for business
      trip which paid by Party A for protecting its creditor’s right because Party B
      do not pay back all debts. Party B authorizes Party A to transfer the money
      directly from the account of Party B in the bank of Party A. If there is not
      enough, Party B guarantees to pay back in sufficient after receiving the notice
      from Party A and would not require any proving documents.

    

    Article
      10 Breaches of Contract and Settlement

    10.1
      It
      will be confirmed as breaches of contract if Party B:

    10.1.1
      it
      breaches the Article 6.2.1 and submits or omits the material facts and does
      not
      cooperate with the investigation, inspection and examination of Party A. And
      with the revising requirement of Party A, it still refuses to revise its faults
      and damages the interests of Party A;

    10.1.2
      it
      breaches the Article 6.2.2, and does not accept the supervision of Party A
      in
      usage of loan, production and financial activities, which damages the interests
      of Party A;

     

    
      
        
        

      

      
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    10.1.3
      it
      breaches the Article 6.2.3, and does not use the loan and/or other credit
      extension in the confirmed mode specified in this agreement and each specific
      contract;

    10.1.4
      it
      breaches the Article 6.2.4, and does not turn back the loan and/or principles
      and interest paid in advance in sufficient;

    10.1.5
      it
      breaches the Article 6.2.5, and transfers the debts under this agreement to
      third party, which damages interest of Party A;

    10.1.6
      it
      breaches the Article 6.2.6, and does not notice Party A, or does not cooperate
      with Party A when Party A was informed the circumstances and required Party
      B to
      add new guarantee, or Party A considered the safety drawing back of loan and/or
      principles and interests of Party A;

    10.1.7
      it
      breaches Article 8.1, 8.2, 8.4, and damages the interests of Party A; or it
      breaches Articles 8.3, 8.5, 8.6 or 8.7, and does not amend immediately, and
      damages the interests of Party A;

    10.1.8
      there is any other circumstances, which would damage the legal interests of
      Party A;

    10.2
      When
      the guarantor has the circumstance as follows, Party A requires guarantor to
      eliminate the disadvantages, or requires Party B to add or alter the guarantee
      conditions, and the guarantor and Party B do not cooperate, which could be
      confirmed as breaches of contract:

    10.2.1
      there is one of circumstances in Article 6.2.6;

    10.2.2
      it
      hides its guarantee capacities or it is not authorized when it producing the
      letter of guarantee;

    10.2.3
      it
      does not transact the yearly register review in time;

    10.2.4
      it
      does not manage and recourse its due creditor’s right, or it disposes its main
      assets for free or in other improper way; 

    10.3
      When
      the mortgager (pledger) has the circumstance as follows, which may cause the
      invalidity of mortgage (hypothecation), the Party A requires mortgager (pledger)
      to eliminate the disadvantages, or requires Party B to add or alter the
      guarantee conditions, and the mortgager (pledger) and Party B do not
      cooperate:

    10.3.1
      it
      has no priority right or disposal right, or properties whose ownership and
      use
      rights are unclear or controversial; 

    10.3.2
      the guaranty (hypothecated assets) has been leased, closed, detained or warded,
      and/or Party B hides this fact to Party A;

    10.3.3
      Without agreement of Party A in written, the mortgager transfers, leases,
      mortgaged for a second time or disposes the guaranty improperly; or it disposes
      the guaranty with the written agreement of Party A, but the incomes do not
      be
      used to return the its debts to Party A; 

    10.3.4
      The mortgager does not keep, maintain and repair the guaranty, which is distinct
      devalued; the activities of mortgager threat the guaranty directly, which leads
      to the decrease of guaranty; or mortgager does not buy insurance to the guaranty
      with the requirement of Party A during the mortgage term. 

    10.4
      If
      there is any circumstance happened in Article 10.1, 10.2 and 10.3, Party A
      has
      right to take measures as follows and Party B shall not have any dissension:
      

     

    
      
        
        

      

      
        192

        
          

        

      

      
        
        

      

    

    10.4.1
      it
      stops releasing any loan not used in the credit extension, and stops supplying
      the credit of acceptance, opening L/C or letter of guarantee in the credit
      extension;

    10.4.2
      it
      draws back the principles and interests of loan released in credit extension
      and
      related charges;

    10.4.3
      For the accepted drafts, or opened L/C or letter of guarantee, Party A can
      require Party B to increase the deposit amount no matter the principles and
      interests are paid in advance by Party A, or Party A transfers the savings
      in
      the account of Party B or balance account to deposit account to pay off the
      deposit paid in advance by Party A, or transfer the relevant fund to third
      party
      for drawing in order to pay for Party A in advance.

    10.4.4.
      it directly deducts the savings in balance account and/or other account of
      Party
      B to pay off all debts of Party B under this contract and each specific
      contract; 

    10.4.5
      it
      has right to recourses in accordance with the Article 13 of this
      contract.

    

    Article
      11 The alternation and termination of this contract

    This
      contract can be alternated and terminated with the written agreement of both
      parties after friendly negotiation. Before reaching the written agreement,
      this
      contract is still valid. Any party shall not alter, amend or terminate this
      contract independently. 

    

    Article
      12 Others

    12.1
      During the valid period of this contract, any tolerance, extension or postponing
      the performance of interests or rights of Party A, shall not damage, affect
      or
      limit any interests and rights of Party A as a creditor pertaining to laws
      and
      regulations and this contract, shall not be confirmed as abandon of its right
      to
      take measures against breaches of contract in current or in the future.

    12.2
      If
      this contract is invalid or part of articles invalid no
      matter
      what reasons, Party B still shall take any responsibilities to pay off any
      debt
      to Party A under this contract. And Party A has right to terminate this contract
      and recourse immediately all debts of Party B under this contract. 

    12.3
      Any
      notice and requirement between both parties under this contract shall be in
      written. It will be confirmed as service at the time of sending for fax and
      telegram, and at the time of sending to post office for mails.

    12.4
      Both
      parties could reach supplementary agreements under this contract through
      friendly negotiation. The supplementary agreements and each specific contract
      shall be the annexes, which are one part of this contract. 

    

    Article
      13 Laws Applicable and Disputes Settlement

    13.1
      Any
      dispute arisen from this contract shall be settled pertaining to the laws of
      PRC, and the rights and interests shall be protected by laws of PRC.

    13.2
      Any
      disputes arisen from the performance of this contract shall be settled through
      negotiation of both parties. If the negotiation is failed, any party can choose
      (one of):

    13.2.1
      to
      file a litigation to People’s Court in the domicile of Party A; or 

    13.2.2
      to
      submit to Commission
      for arbitration. 

     

    
      
        
        

      

      
        193

        
          

        

      

      
        
        

      

    

    13.2.3
      After notarization of this contract and each specific contract with force of
      compelling performance, Party A could apply for force execution to people’s
      court with jurisdiction so as to recourse the due debts under this contract
      and
      each specific contract. 

    

    Article
      14 Effect of This Contract 

    This
      contract shall come into force after signature of both parties and stamp of
      common seal, and fulfillment of guarantee procedures in Article 5 of this
      contract. And the contract shall be automatic terminated after the payoff of
      all
      debts and other related charges and expenses under this contract. 

    

    Article
      15 This contract has four
      originals with the same force. 

    Each
      party and has
      one.

     

    

      
        	
                Party
                  A (common
                  seal)

              	
                Party
                  B (common seal)

              
	 	 
	 	 
	 	 
	
                Authorized
                  representative
                  (signature):

              	
                Authorized
                  representative (signature):

              
	 	 
	 	 
	 	 
	
                June
                  20, 2005

              	
                June
                  20, 2005

              

      

    

    

    
      
        
        

      

      
        194

        
          

        

      

      
        
        

      

    

    

    For
      Letter of Guarantee

    

    NO.:
      2005
      xinzi No.: 15014

    

    To:
      Tianjin branch Merchant Bank

    We,
      the
      enterprise authorized by with
      legal person qualification and business license, would like to provide guarantee
      to Renminbi
      (currency) 40,000,000
      Yuan
      under
2005
      xinzi No.: 55014
      loan
      contract/ credit extension contract signed on June
      20, 2005
      by
Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd.
      (Borrower) and your bank. Whereas, we confirmed that the Irrevocable Letter
      of
      Guarantee issued on June
      20, 2005 to
      your
      bank is truthful, and we would take all responsibilities to the articles under
      the letter of guarantee. 

    

    

    

    

    Guarantor
      (common seal): 

    Present
      guarantee.

    Authorized
      representative: Zhang Yuqing

    

    June
      10,
      2005

    

    
      
        
        

      

      
        195

        
          

        

      

      
        
        

      

    

    MAXIMUM
      AMOUNT IRREVOCABLE GUARANTY LETTER

    (Prepared
      in July 2003)

    

    No:
      [2005]Xinzhidi 55014

    

    To:
      China
      Merchants Bank Tianjin Branch 

    

    WHEREAS,

    The
      Credit Agreement (no.[2005]Xinzhidi 55018) was entered into by and between
      Your
      Bank and Tianjin Daqiuzhuang Metal Sheet Co., Ltd (hereinafter “Credit
      Applicant”) on 20th
      June
      2005. 

    Pursuant
      to the Credit Agreement, your bank shall offer the Credit Applicant a line
      of
      credit in the sum of RMB Forty Million Yuan (or equivalent in foreign currency)
      (hereinafter “the Line of Credit”) during the Credit Term as from 20th
      June
      2005 and ending on 19th
      June
      2006 (hereinafter “the Credit Term”). 

    NOW
      THEREFORE, we, the undersigned and surety for the Credit Applicant, hereby
      agree
      to issue this Guaranty Letter with joint and several liabilities for all the
      debts owed by the Credit Applicant to your bank, subject to the terms and
      conditions set forth hereinafter. 

    

    ARTICLE
      1 MAXIMUM AMOUNT GUARANTY LETTER

    
      	
              1.1

            	
              The
                Line of Credit as used herein refers to the maximum amount of the
                on-balance-sheet business credit such as the loan that may be used
                by the
                borrower in a continuous and cycle manner, trade financing, discount,
                etc.
                (hereinafter collectively referred to as “the Loan”), and of the
                off-balance-sheet business credit balance, such as the acceptance
                of
                commercial bill, issuance of L/C, issuance of L/G, etc. that may
                be
                offered by your bank to the Credit Applicant.

            

    

    The
      aforesaid line of credit excludes such amount of credit appropriate to the
      security deposit or guaranty of deposit certificate as may be offered or
      provided by the Credit Applicant or any third party, the same hereinafter.
      

     

    
      
        
        

      

      
        196

        
          

        

      

      
        
        

      

    

    
      	
              1.2

            	
              During
                the Credit Term, your bank may, in accordance with the Credit Agreement
                and/or any appropriate individual contract under the same, extend
                loan or
                provide other credit services to the Credit Applicant by installments.
                The
                Credit Applicant may use the Line of Credit in a cycle manner. The
                particular amount, term as well as the purpose of each loan or credit
                may
                be stipulated by individual loan contract, loan receipt or any other
                credit contract. The maturity date of any of the particular business
                may
                be later than the expiry date of the Credit Agreement and we, the
                undersigned and the surety for the Credit Applicant, have no objection
                thereto. 

            

    

    
      	
              1.3

            	
              In
                the case of appropriate balance remains in the loan or any other
                credit as
                may be offered by your bank to the Credit Applicant upon expiry date
                of
                the Credit Term, we shall be jointly and severally liable to you
                to the
                extent of the actual line of credit already available to the Credit
                Applicant.

            

    

    
      	
              1.4

            	
              With
                respect to the credit services as may be offered by your bank to
                the
                Credit Applicant during the Credit Term, including commercial bill
                acceptance, issuance of L/C and L/G, etc., we agree to be held jointly
                and
                severally liable for any and all debts created or established in
                respect
                of the abovementioned credit services which debts include without
                limitation any principal of and accrued interest on any amount paid
                by
                your bank for the Credit Applicant as well as any other related expenses,
                in disregard to whether any amount paid by your bank for and on behalf
                of
                the Credit Applicant exists upon the maturity of the Credit Term.
                

            

    

    
      	
              1.5

            	
              In
                case your bank decides to make recourse against the Credit Applicant
                prior
                to the scheduled expiry date of the Credit Term, we agree to be held
                jointly and severally liable to you to the extent of the actual line
                of
                credit occurred at that time. 

            

    

    ARTICLE
      2 SURETY SCOPE

    2.1
      The
      scope of the suretyship offered by us hereunder includes the principal of the
      loan and any other credit (with the maximum amount is RMB _____________ Yuan)
      offered by your bank to the Credit Applicant in accordance with the Credit
      Agreement during the specified Credit Term, together with appropriate accrued
      interest, penalty interest, fine for breach, as well as any and all other costs
      and expenses in respect of effort to realize the creditor’s rights, including
      but not limited to:

    2.1.1
      The
      principal of and accrued interest, penalty interest, fine for breach, as well
      as
      any other expenses in respect of the loan to be extended by your bank in
      accordance with the particular loan contract under the Credit Agreement or
      loan
      receipt; 

     

    
      
        
        

      

      
        197

        
          

        

      

      
        
        

      

    

    2.1.2
      The
      principal of any money to be paid by your bank for the Credit Applicant in
      honoring, in accordance with the Credit Agreement, the commercial bill, L/C,
      as
      well as any L/G drawn by the Credit Applicant, together with any and all accrued
      interest, penalty interest, fine for breach, as well as any other expenses
      

    2.1.3
      Any
      and all costs and expenses incurred by your bank in making effort to recover
      any
      debt against the Credit Applicant. 

    2.2
      We
      shall be held for no guaranty liability for any amount of the principal of
      the
      loan or any other credit as may be offered by your bank, in excess of the
      prescribed line of credit, and shall be only jointly and severally liable for
      such principal of the loan or any other credit services, as well as any accrued
      interest thereon, penalty interest, fine for breach, etc. in respect thereof,
      as
      may be within the line of credit. 

    ARTICLE
      3 FORM OF SURETY

    We,
      the
      undersigned and the surety for the Credit Applicant, hereby acknowledge to
      be
      jointly and severally liable, whether economically or legally, for any debts
      owed by the Credit Applicants, provided such debts shall be within the surety
      scope as set out in ARTICLE 2 hereinabove. Your bank is entitled to directly
      make recourse against us without having to first make recourse or institute
      actions against the Credit Applicant in case the Credit Applicant fails to
      repay
      or pay in a timely manner and in accordance with the Credit Agreement and/or
      any
      other particular contract, if any, the principal of the loan and/or any amount
      paid by your bank for the Credit Applicant, or any related expenses, or in
      the
      case of any breaching event as may be set out in the Credit Agreement and/or
      any
      other particular contract, if any. In disregard to any mortgage or pledge
      established additionally to ensure the timely satisfaction or repayment of
      any
      debt owed by the Credit Applicant to your bank under the Credit Agreement,
      your
      bank is also entitled to directly make recourse against us for all the amounts
      of debts, without having to first enforcement of such mortgaged or pledged
      objects. 

    We
      agree
      to be absolutely subject to any Claim Notice to be issued by you which is final.
      We further agree to repay and satisfy any and all debts owed by the Credit
      Applicant under the Credit Agreement in full within five days upon receipt
      of
      such Claim Notice for which your bank is not obliged to provide any proof or
      documents. 

     

    
      
        
        

      

      
        198

        
          

        

      

      
        
        

      

    

    ARTICLE
      4 SURETYSHIP DURATION

    The
      suretyship duration hereunder shall be as from the expiry date of each loan
      as
      may be extended under the Credit Agreement or as from the same date of the
      second year following the date on which the payment of each amount is made
      by
      your bank for the Credit Applicant. 

    ARTICLE
      5 INDEPENDENCE OF GUARANTY LETTER

    5.1
      This
      Guaranty Letter is independent, continuously effective, irrevocable and
      unconditional, in no event shall be affected by the Credit Agreement and/or
      any
      particular contract, nor shall be affected by any agreement or document
      concluded between the Credit Applicant and any unit. This Guaranty Letter shall
      remain unchanged in the event of any fraudulent action, reorganization, cease
      to
      carry out business, dissolution, liquidation, bankruptcy, etc. on the part
      of
      the Credit Applicant for whatsoever reasons. The liability to be taken by us
      as
      the surety hereunder may not be released or exempted by reason of any order
      received, change in our financial standing, or any agreement entered into with
      any unit or individual. 

    5.2
      The
      liability to be taken by us as the surety hereunder may not be affected by
      virtue of cease to provide any unused part of loan and/or any other credits
      or
      recovery of the extended loan in advance, by your bank in accordance with the
      Credit Agreement and/or any particular contract. 

    ARTICLE
      6 We,
      the
      undersigned and surety for the Credit Applicant, hereby acknowledge and
      undertakes to be bound by and subject to any extension agreement or other
      supplemental agreements in respect of the term and interest rate, etc. of each
      particular contract to be concluded between your bank and the Credit Applicant
      in the course of performance of this Credit Agreement and any particular
      contract thereunder, without requiring future notice from your bank.

    ARTICLE
      7 WE, THE UNDERSIGNED AND SURETY FOR THE CREDIT APPLICANT HEREBY REPRESENTS
      AND
      WARRANTS WITH YOUR BANK:

    7.1
      That
      we, a legal person enterprise which is duly registered with appropriate
      authority for industry and commerce (registration no.: ______ ) upon approval
      by
      _________, and which is eligible for standing surety for others, or a
      not-for-profit institution with legal person status which is eligible for
      standing surety for others, agree to provide guarantee with the assets legally
      owned by us or to which we are entitled to disposal right, and undertake to
      perform any of the obligations prescribed herein; 

     

    
      
        
        

      

      
        199

        
          

        

      

      
        
        

      

    

    7.2
      That
      we are fully authorized or approved by superior authority/the Board of Directors
      as necessitated by issuance of this Guaranty Letter; 

    7.3
      That
      issuance of this Guaranty Letter is the true representation of us under no
      misrepresentation or duress; 

    7.4
      That
      we, the undersigned and surety for the Credit Applicant, agree to be held for
      the total guaranty liability (including equivalent in foreign currency) not
      more
      than the whole sum of our proprietary rights and interests; 

    7.5
      That
      any and all financial statements as well as any other documents to be submitted
      by us to your bank are true, legally permitted for which the our legal
      representative or any other person in charge shall be held liable; 

    7.6
      That
      we shall issue a guaranty confirmation upon request of your bank; 

    7.7
      That
      we shall notify your bank of any change in the registration particulars with
      authority for industry and commerce, organization structure, operation mode
      or
      financial standing in respect of our company, which change may result in a
      change in our capacity to perform this guaranty letter, without delay;

    7.8
      That
      any assign or successor of us shall be bound by all the provisions contained
      herein. No assignment of any of our obligations hereunder may be made by us
      in
      the absence of the written consent from your bank; 

    ARTICLE
      8 In
      case
      we fail to repay and satisfy any of the debts as required herein, your bank
      is
      entitled to withhold or deduct any such amount therefore out of any deposit
      account of us, until and unless any and all debts owed by the Credit Applicant
      under the Credit Agreement, and we have no objection to the aforesaid continuing
      obligation.

    ARTICLE
      9 During
      the whole life of this Guaranty Letter, no tolerance, grace period, or
      suspension to enforce any of the rights and interests or powers of your bank
      under the Credit Agreement or this Guaranty Letter, as may be granted by your
      bank in respect of any breach or delay on the part of us and/or the Credit
      Applicant may impair, affect, or limit any rights and interests, or powers
      of
      your bank as the creditor in accordance with this Guaranty Letter and related
      laws and regulations, nor shall be construed as the waiver by your bank of
      any
      right to take appropriate actions against any present or future breach of the
      Credit Applicant and/or us. 

     

    
      
        
        

      

      
        200

        
          

        

      

      
        
        

      

    

    ARTICLE
      10 This
      Guaranty Letter is governed by the laws of the People’s Republic of China, we
      hereby confirm that any dispute arising out of or in connection with the
      performance hereof shall be settled by such means applicable to dispute, as
      set
      out in the Credit Agreement.

    ARTICLE
      11 This Guaranty Letter shall enter into force upon signature by duly authorized
      signatory from us and common seal of us. 

    ARTICLE
      12 This Guaranty Letter is made in _______ copies, each of your bank, the Credit
      Applicant, the surety as well as _______ etc. shall hold one copy thereof.
      

    

    

      
        	
                The
                  Surety(Common Seal):

              	
                Duly
                  Authorized Signatory(Signature): 

              
	 	
                Zhang
                  Yuqing

              
	
                Legal
                  Address:

              	 
	
                Deposit
                  Bank:

              	
                Settlement
                  Account of the Surety:

              
	
                Tel:

              	
                Fax:
                  

              

      

    

     

    
      
        
        

      

      
        201

        
          

        

      

      
        
        

      

    

    

    For
      Letter of Guarantee

    

    NO.:
      2005
      xinzi No.: 55014

    

    To:
      Tianjin branch Merchant Bank

    We,
      the
      enterprise authorized by with
      legal person qualification and business license, would like to provide guarantee
      to Renminbi
      (currency) 40,000,000
      Yuan
      under
2005
      xinzi No.: 55014
      loan
      contract/ credit extension contract signed on June
      20, 2005
      by
Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd.
      (Borrower) and your bank. Whereas, we confirmed that the Irrevocable Letter
      of
      Guarantee issued on June
      20, 2005 to
      your
      bank is truthful, and we would take all responsibilities to the articles under
      the letter of guarantee. 

    

    

    

    

    Guarantor
      (common seal): Tianjin Sheng Da Steel Mill Co.,Ltd. 

    Present
      Guarantee. 

    Authorized
      representative: Wu Congfeng

    

    June
      20,
      2005

    

    
      
        
        

      

      
        202

        
          

        

      

      
        
        

      

    

    MAXIMUM
      AMOUNT IRREVOCABLE GUARANTY LETTER

    (Prepared
      in July 2003)

    

    No:
      [2005]Xinzhidi 55014

    

    To:
      China
      Merchants Bank Tianjin Branch 

    

    WHEREAS,

    The
      Credit Agreement (no.[2005]Xinzhidi 55014) was entered into by and between
      Your
      Bank and Tianjin Daqiuzhuang Metal Sheet Co., Ltd (hereinafter “Credit
      Applicant”) on 20th
      June
      2005. 

    Pursuant
      to the Credit Agreement, your bank shall offer the Credit Applicant a line
      of
      credit in the sum of RMB Forty Million Yuan (or equivalent in foreign currency)
      (hereinafter “the Line of Credit”) during the Credit Term as from 20th
      June
      2005 and ending on 19th
      June
      2006 (hereinafter “the Credit Term”). 

    NOW
      THEREFORE, we, the undersigned and surety for the Credit Applicant, hereby
      agree
      to issue this Guaranty Letter with joint and several liabilities for all the
      debts owed by the Credit Applicant to your bank, subject to the terms and
      conditions set forth hereinafter. 

    

    ARTICLE
      1 MAXIMUM AMOUNT GUARANTY LETTER

    
      	
              1.6

            	
              The
                Line of Credit as used herein refers to the maximum amount of the
                on-balance-sheet business credit such as the loan that may be used
                by the
                borrower in a continuous and cycle manner, trade financing, discount,
                etc.
                (hereinafter collectively referred to as “the Loan”), and of the
                off-balance-sheet business credit balance, such as the acceptance
                of
                commercial bill, issuance of L/C, issuance of L/G, etc. that may
                be
                offered by your bank to the Credit Applicant.

            

    

    The
      aforesaid line of credit excludes such amount of credit appropriate to the
      security deposit or guaranty of deposit certificate as may be offered or
      provided by the Credit Applicant or any third party, the same hereinafter.
      

     

    
      
        
        

      

      
        203

        
          

        

      

      
        
        

      

    

    
      	
              1.7

            	
              During
                the Credit Term, your bank may, in accordance with the Credit Agreement
                and/or any appropriate individual contract under the same, extend
                loan or
                provide other credit services to the Credit Applicant by installments.
                The
                Credit Applicant may use the Line of Credit in a cycle manner. The
                particular amount, term as well as the purpose of each loan or credit
                may
                be stipulated by individual loan contract, loan receipt or any other
                credit contract. The maturity date of any of the particular business
                may
                be later than the expiry date of the Credit Agreement and we, the
                undersigned and the surety for the Credit Applicant, have no objection
                thereto. 

            

    

    
      	
              1.8

            	
              In
                the case of appropriate balance remains in the loan or any other
                credit as
                may be offered by your bank to the Credit Applicant upon expiry date
                of
                the Credit Term, we shall be jointly and severally liable to you
                to the
                extent of the actual line of credit already available to the Credit
                Applicant.

            

    

    
      	
              1.9

            	
              With
                respect to the credit services as may be offered by your bank to
                the
                Credit Applicant during the Credit Term, including commercial bill
                acceptance, issuance of L/C and L/G, etc., we agree to be held jointly
                and
                severally liable for any and all debts created or established in
                respect
                of the abovementioned credit services which debts include without
                limitation any principal of and accrued interest on any amount paid
                by
                your bank for the Credit Applicant as well as any other related expenses,
                in disregard to whether any amount paid by your bank for and on behalf
                of
                the Credit Applicant exists upon the maturity of the Credit Term.
                

            

    

    
      	
              1.10

            	
              In
                case your bank decides to make recourse against the Credit Applicant
                prior
                to the scheduled expiry date of the Credit Term, we agree to be held
                jointly and severally liable to you to the extent of the actual line
                of
                credit occurred at that time. 

            

    

    ARTICLE
      2 SURETY SCOPE

    2.1
      The
      scope of the suretyship offered by us hereunder includes the principal of the
      loan and any other credit (with the maximum amount is RMB _____________ Yuan)
      offered by your bank to the Credit Applicant in accordance with the Credit
      Agreement during the specified Credit Term, together with appropriate accrued
      interest, penalty interest, fine for breach, as well as any and all other costs
      and expenses in respect of effort to realize the creditor’s rights, including
      but not limited to:

    2.1.1
      The
      principal of and accrued interest, penalty interest, fine for breach, as well
      as
      any other expenses in respect of the loan to be extended by your bank in
      accordance with the particular loan contract under the Credit Agreement or
      loan
      receipt; 

     

    
      
        
        

      

      
        204

        
          

        

      

      
        
        

      

    

    2.1.2
      The
      principal of any money to be paid by your bank for the Credit Applicant in
      honoring, in accordance with the Credit Agreement, the commercial bill, L/C,
      as
      well as any L/G drawn by the Credit Applicant, together with any and all accrued
      interest, penalty interest, fine for breach, as well as any other expenses
      

    2.1.3
      Any
      and all costs and expenses incurred by your bank in making effort to recover
      any
      debt against the Credit Applicant. 

    2.2
      We
      shall be held for no guaranty liability for any amount of the principal of
      the
      loan or any other credit as may be offered by your bank, in excess of the
      prescribed line of credit, and shall be only jointly and severally liable for
      such principal of the loan or any other credit services, as well as any accrued
      interest thereon, penalty interest, fine for breach, etc. in respect thereof,
      as
      may be within the line of credit. 

    ARTICLE
      3 FORM OF SURETY

    We,
      the
      undersigned and the surety for the Credit Applicant, hereby acknowledge to
      be
      jointly and severally liable, whether economically or legally, for any debts
      owed by the Credit Applicants, provided such debts shall be within the surety
      scope as set out in ARTICLE 2 hereinabove. Your bank is entitled to directly
      make recourse against us without having to first make recourse or institute
      actions against the Credit Applicant in case the Credit Applicant fails to
      repay
      or pay in a timely manner and in accordance with the Credit Agreement and/or
      any
      other particular contract, if any, the principal of the loan and/or any amount
      paid by your bank for the Credit Applicant, or any related expenses, or in
      the
      case of any breaching event as may be set out in the Credit Agreement and/or
      any
      other particular contract, if any. In disregard to any mortgage or pledge
      established additionally to ensure the timely satisfaction or repayment of
      any
      debt owed by the Credit Applicant to your bank under the Credit Agreement,
      your
      bank is also entitled to directly make recourse against us for all the amounts
      of debts, without having to first enforcement of such mortgaged or pledged
      objects. 

    We
      agree
      to be absolutely subject to any Claim Notice to be issued by you which is final.
      We further agree to repay and satisfy any and all debts owed by the Credit
      Applicant under the Credit Agreement in full within five days upon receipt
      of
      such Claim Notice for which your bank is not obliged to provide any proof or
      documents. 

     

    
      
        
        

      

      
        205

        
          

        

      

      
        
        

      

    

    ARTICLE
      4 SURETYSHIP DURATION

    The
      suretyship duration hereunder shall be as from the expiry date of each loan
      as
      may be extended under the Credit Agreement or as from the same date of the
      second year following the date on which the payment of each amount is made
      by
      your bank for the Credit Applicant. 

    ARTICLE
      5 INDEPENDENCE OF GUARANTY LETTER

    5.1
      This
      Guaranty Letter is independent, continuously effective, irrevocable and
      unconditional, in no event shall be affected by the Credit Agreement and/or
      any
      particular contract, nor shall be affected by any agreement or document
      concluded between the Credit Applicant and any unit. This Guaranty Letter shall
      remain unchanged in the event of any fraudulent action, reorganization, cease
      to
      carry out business, dissolution, liquidation, bankruptcy, etc. on the part
      of
      the Credit Applicant for whatsoever reasons. The liability to be taken by us
      as
      the surety hereunder may not be released or exempted by reason of any order
      received, change in our financial standing, or any agreement entered into with
      any unit or individual. 

    5.2
      The
      liability to be taken by us as the surety hereunder may not be affected by
      virtue of cease to provide any unused part of loan and/or any other credits
      or
      recovery of the extended loan in advance, by your bank in accordance with the
      Credit Agreement and/or any particular contract. 

    ARTICLE
      6 We,
      the
      undersigned and surety for the Credit Applicant, hereby acknowledge and
      undertakes to be bound by and subject to any extension agreement or other
      supplemental agreements in respect of the term and interest rate, etc. of each
      particular contract to be concluded between your bank and the Credit Applicant
      in the course of performance of this Credit Agreement and any particular
      contract thereunder, without requiring future notice from your bank.

    ARTICLE
      7 WE, THE UNDERSIGNED AND SURETY FOR THE CREDIT APPLICANT HEREBY REPRESENTS
      AND
      WARRANTS WITH YOUR BANK:

    7.1
      That
      we, a legal person enterprise which is duly registered with appropriate
      authority for industry and commerce (registration no.: ______ ) upon approval
      by
      _________, and which is eligible for standing surety for others, or a
      not-for-profit institution with legal person status which is eligible for
      standing surety for others, agree to provide guarantee with the assets legally
      owned by us or to which we are entitled to disposal right, and undertake to
      perform any of the obligations prescribed herein; 

     

    
      
        
        

      

      
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    7.2
      That
      we are fully authorized or approved by superior authority/the Board of Directors
      as necessitated by issuance of this Guaranty Letter; 

    7.3
      That
      issuance of this Guaranty Letter is the true representation of us under no
      misrepresentation or duress; 

    7.4
      That
      we, the undersigned and surety for the Credit Applicant, agree to be held for
      the total guaranty liability (including equivalent in foreign currency) not
      more
      than the whole sum of our proprietary rights and interests; 

    7.5
      That
      any and all financial statements as well as any other documents to be submitted
      by us to your bank are true, legally permitted for which the our legal
      representative or any other person in charge shall be held liable; 

    7.6
      That
      we shall issue a guaranty confirmation upon request of your bank; 

    7.7
      That
      we shall notify your bank of any change in the registration particulars with
      authority for industry and commerce, organization structure, operation mode
      or
      financial standing in respect of our company, which change may result in a
      change in our capacity to perform this guaranty letter, without delay;

    7.8
      That
      any assign or successor of us shall be bound by all the provisions contained
      herein. No assignment of any of our obligations hereunder may be made by us
      in
      the absence of the written consent from your bank; 

    ARTICLE
      8 In
      case
      we fail to repay and satisfy any of the debts as required herein, your bank
      is
      entitled to withhold or deduct any such amount therefore out of any deposit
      account of us, until and unless any and all debts owed by the Credit Applicant
      under the Credit Agreement, and we have no objection to the aforesaid continuing
      obligation.

    ARTICLE
      9 During
      the whole life of this Guaranty Letter, no tolerance, grace period, or
      suspension to enforce any of the rights and interests or powers of your bank
      under the Credit Agreement or this Guaranty Letter, as may be granted by your
      bank in respect of any breach or delay on the part of us and/or the Credit
      Applicant may impair, affect, or limit any rights and interests, or powers
      of
      your bank as the creditor in accordance with this Guaranty Letter and related
      laws and regulations, nor shall be construed as the waiver by your bank of
      any
      right to take appropriate actions against any present or future breach of the
      Credit Applicant and/or us. 

     

    
      
        
        

      

      
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    ARTICLE
      10 This
      Guaranty Letter is governed by the laws of the People’s Republic of China, we
      hereby confirm that any dispute arising out of or in connection with the
      performance hereof shall be settled by such means applicable to dispute, as
      set
      out in the Credit Agreement.

    ARTICLE
      11 This Guaranty Letter shall enter into force upon signature by duly authorized
      signatory from us and common seal of us. 

    ARTICLE
      12 This Guaranty Letter is made in _______ copies, each of your bank, the Credit
      Applicant, the surety as well as _______ etc. shall hold one (1) copy thereof.
      

    

    

      
        	
                The
                  Surety(Common Seal):

              	
                Duly
                  Authorized Signatory(Signature): 

              
	
                Tianjin
                  Sheng Da Steel Mill Co.,Ltd. Wu Congfeng

              	 
	
                Legal
                  Address:

              	 
	
                Deposit
                  Bank:

              	
                Settlement
                  Account of the Surety:

              
	
                Tel:

              	
                Fax:
                  

              

      

    
      
        
        

      

      
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    LOAN
      CONTRACT

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    CHINA
      MERCHANTS BANK

    FEB
      2004

    
      
        
        

      

      
        209

        
          

        

      

      
        
        

      

    

    Contract
      No.: [2005]Daizhidi55023

    Parties
      to this Loan Contract: 

    The
      Lender: China Merchants Bank Tianjin Branch (hereinafter referred to as “Party
      A”)

    Person
      in
      charge: Yang Yuehua

    Position:
      President

    Address: 55
      North
      Youyi Road Hexi District, Tianjin 

    Tel:
      

    And
      

    The
      Borrower: Tianjin Daqiuzhuang Metal Sheet Co., Ltd. (hereinafter referred to
      as
“Party B”)

    Legal
      Representative: Yu Zuosheng

    Position:
      Chairman of the Board

    Address:
      Daqiuzhuang, Jinghai County, Tianjin

    Tel:
      

    

    WHEREAS,
      Party B
      has applied to Party A for a
      certain amount of loan
      for
      purpose of Working
      Capital.
      

    WHEREAS,
      Party A
      agrees to extend such a loan after due process of examination. 

    NOW,
      THEREFORE, both
      Parties agree to enter into this Loan Contract based on the negotiation in
      regard thereto in accordance with relevant laws and regulations, subject to
      the
      terms and conditions to be set out hereinafter. 

    

    
      
        
        

      

      
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    ARTICLE
      1
      TYPE OF LOAN

     

    This
      Loan
      to be provided hereunder is
      Short Term Working Capital Loan.
      

    ARTICLE
      2 CURRENCY AND AMOUNT OF LOAN

    The
      loan
      shall be provided in the currency of RMB
      and in
      the amount of Ten
      Million Yuan Only.
      

    ARTICLE
      3 LOAN PURPOSE 

    The
      loan
      hereunder shall be used for purpose of working capital only, no diversion for
      other purposes may be done without first obtaining written consent from Party
      A. 

    ARTICLE
      4 LOAN TERM

    The
      term
      of the loan is twelve (12) months, commencing from 31st
      Aug.
      2005 and ending on 30th
      Aug.
      2006. In case the date of the actual loan availability fails to coincide with
      the abovementioned starting date of the term, the dates shown in the loan
      receipt shall apply. 

    ARTICLE
      5 INTEREST RATE AND INTEREST

    5.1
      Interest rate: The interest rate is agreed to be:_____(optional)

    
      	
              o

            	
              Fixed
                interest rate:
                _______________________

            

    

    
      	
              
                o

              

            	
              Floating
                interest rate:5.859%, to be adjusted on daily basis.
                

            

    

    A
      penalty
      interest at the double
      rate of
      the aforesaid interest rate shall be charged on any part of loan the purpose
      of
      which is changed, appropriated or diverted for other purposes by Party B without
      permission from Party A, without excluding the accrued interest in the ordinary
      course. A penalty interest which 1.5 times that as aforementioned and elected,
      shall be charged on any part of loan not paid by Party B when due. 

    Appropriate
      interest shall be charged at the abovementioned penalty interest rate on any
      part of loan which is overdue or diverted for other purposes not prescribed
      herein as from the date of such due date or diversion of such part of loan,
      until the principal of the loan together with accrued interest is discharged
      in
      full. 

     

    
      
        
        

      

      
        211

        
          

        

      

      
        
        

      

    

    In
      the
      case of any adjustment by the People’s Bank of China (hereinafter referred to as
“PBC”) to the interest rate herein, the interest on the loan shall be calculated
      at the interest rate so adjusted. 

    5.2
      Interest Calculation: the interest on the loan shall accrue as from the date
      of
      the actual availability to Party B and on the basis of number of days during
      which the loan is outstanding, as well as the actual amount of the loan extended
      hereunder, and the interest shall be computed on the 20th
      day of
      the last month of each applicable quarter. 

    5.3
      Interest Settlement: Party B shall pay any and all accrued interest on the
      loan
      at each applicable interest computation date which accrued interest may be
      directly withheld or deducted by Party A from any deposit account of Party
      B. In
      case Party B fails to pay the accrued interest, Party A shall have the right
      to
      charge Party B a compound interest at the abovementioned penalty interest rate
      on any overdue interest accrued hereunder. 

    ARTICLE
      6 SECURITY 

    6.1
      Tianjin
      Sheng Da Steel Mill Co.,Ltd.
      and
Baotou
      Shengda Industrial Co., Ltd.
      as named
      by Party B shall stand for surety for the principal, accrued interest thereon,
      as well as the any and all other costs in respect thereof hereunder both of
      the
      companies shall provide Party A with irrevocable guaranty letters, and/or

    6.2
      The
      mortgage (pledge) shall be provided for the loan hereunder by _______ company
      or
      ________ individual with the _________ owned or subject to legal disposal by
      the
      same, for which a mortgage or pledge contract is to be concluded by both
      parties. 

    ARTICLE
      7 RIGHTS AND OBLIGATIONS OF PARTY B 

    7.1
      Party
      B shall have the rights to be set out hereinafter:

    7.1.1
      To
      withdraw and use the whole of loan as agreed herein; 

    7.1.2
      To
      deny any additional preconditions not stipulated herein; 

    7.1.3
      To
      assign or transfer its debt to any third party upon consent of Party A;

    7.2
      Party
      B shall be under the following obligations:

     

    
      
        
        

      

      
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    7.2.1
      To
      provide any documents and/or materials as required by Party A, as well as the
      information relating to all of its depository banks, accounts number and balance
      existing therein, and to provide assistance in any investigation, examination
      as
      well as inspection to be carried out by Party A in respect of the loan
      hereunder; 

    7.2.2
      To
      be subject to reasonable supervision by Party A over Party B’s use of the credit
      loan, as well as supervision by the same over Party B’s production &
operation and the financial activities; 

    7.2.3
      To
      use the loan subject to the terms and conditions set out herein; 

    7.2.4
      To
      repay and pay in full the principal of and accrued interest on the loan as
      scheduled herein; 

    7.2.5
      To
      be subject to Party A’s prior written consent in the case of assignment or
      transfer of its debts hereunder, in whole or part, to any third party;

    7.2.6
      Upon any of the following cases, Party B is required to notify Party A promptly
      and to take reasonable security measures necessary for repayment or
      reimbursement in full of the principal of and accrued interest on the loan
      hereunder, as well as any and all other costs that may occur
      hereunder:

    7.2.6.1
      Substantial financial loss, assets loss or other financial crisis; 

    7.2.6.2
      Provision of loan or stand surety, or provision of mortgage (pledge) with its
      own properties (rights), for purpose of any third party’s interest or protecting
      any third party from any loss; 

    7.2.6.3
      Consolidation (M&A), division, reconstruction, joint venture (cooperative),
      transfer of property rights, stock reconstruction, etc; 

    7.2.6.4
      Cease to carry out business, have its business license suspended or
      deregistered, apply by itself or others to be bankrupt, or dissolution, etc;
      

    7.2.6.5
      Its controlling shareholder or other affiliates experience substantial operation
      or financial crisis that may impair the ordinary operation thereof;

    7.2.6.6
      Conduct related transactions with its controlling shareholders or other
      affiliates that may be materially adverse to its ordinary operation;

    7.2.6.7
      Occurrence of any suit, arbitration, or criminal or administrative penalty
      that
      may be materially adverse to its operation or financial standing; 

     

    
      
        
        

      

      
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    7.2.6.8
      Occurrence of any breaking events that may affect its repayment
      capacity.

    ARTICLE
      8 RIGHTS AND OBLIGATIONS OF PARTY A 

    8.1
      Party
      A shall have the following rights:

    8.1.1
      To
      require Party B to repay the principal of and accrued interest on the loan
      as
      scheduled herein; 

    8.1.2
      To
      request Party B to provide materials relating to the loan hereunder;

    8.1.3
      To
      find out information in respect of Party B’s production & operation as well
      as financial activities; 

    8.1.4
      To
      supervise the use by Party B of the loan hereunder;

    8.1.5
      To
      directly transfer and withhold the amount for repayment of the due principal
      of
      and accrued interest on the loan, out of any of Party B’s bank accounts;

    8.1.6
      To
      require Party B to repay the loan ahead of schedule or to suspend any part
      of
      loan that remains unused by Party B, in accordance with this Contract, in case
      Party B fails to perform any of its obligations hereunder; 

    8.1.7
      To
      require Party B to repay promptly the principal of and accrued interest of
      the
      loan, as well as any other costs that may occur hereunder, or to transfer all
      of
      Party B’s debts hereunder to any assignee permitted by Party A, or to
      provide/increase any appropriate security or guaranty acceptable to Party A.
      

    8.2
      Party
      A shall be under the following obligations: 

    8.2.1
      To
      extend the loan in accordance herewith; 

    8.2.2
      To
      keep or maintain confidential any and all information in relation to Party
      B’s
      debts, finance, production, as well as operation, etc. except as otherwise
      provided for by related laws; 

    ARTICLE
      9 PARTY HEREBY REPRESENTS AND WARRANTS TO PARTY A THAT:

    9.1
      Party
      B is an enterprise duly incorporated under the laws of the People’s Republic of
      China (hereinafter “PRC”) and existing legally, has the legal person status, as
      well as the full civil act capacity to sign and perform this Contract;

    9.2
      Party
      B has been fully authorized by the Board of Directors or any other authorities
      to sign and perform this Contract; 

     

    
      
        
        

      

      
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    9.3
      The
      documentation, materials as well as the vouchers to be provided by Party B
      in
      relation to Party B, surety, mortgagor (pledgor), as well as the mortgaged
      or
      pledged objects are true, accurate, complete and valid, free from any
      significant mistakes inconsistent with facts or any substantial omission;

    9.4
      At
      the time of signing this Contract, no suit, arbitration, criminal or
      administrative penalty that may be materially adverse to Party B or its
      principal property occur(s), nor may the same threaten(s) to occur during
      performance of this Contract, otherwise, Party B is required to notify Party
      A
      promptly; 

    9.5
      To be
      in strict compliance with any applicable national laws and regulations in its
      operation, to strictly abide by the business scope prescribed by its Business
      License for Incorporated Enterprise in conducting business, as well as to go
      through enterprise (legal person) annual inspection & registration
      formalities in time; 

    9.6
      To
      maintain or increase the current operation or management level to ensure the
      value preservation and appreciation of the existing assets, not to waive any
      due
      creditor rights, not to dispose of the existing principal property free or
      otherwise; 

    9.7
      No
      significant event that suffice to prejudice the performance by Party B of any
      obligations hereunder exists at the time of signing this Contract. 

    ARTICLE
      10 PREPAYMENT 

    10.1
      Party B may request to repay the loan ahead of schedule, provided however a
      prior consent from Party A has been obtained; 

    10.2
      In
      the case of any repayment ahead of schedule, the interest shall be computed
      and
      settled at the rate specified herein. 

    ARTICLE
      11 LOAN EXTENSION 

    In
      case
      Party B is unable to repay the loan hereunder as scheduled and requests for
      an
      extension therefore, Party B shall submit an application for that purpose one
      month prior to the scheduled expiry date hereof; An Agreement on Loan Contract
      Extension shall be concluded by both Parties in case Party A consents to such
      intended extension after due process of examination, otherwise, this Contract
      shall remain in full force and effect. Party B is obliged to repay any part
      of
      loan used by Party B together with accrued interest, as provided herein.

     

    
      
        
        

      

      
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    ARTICLE
      12 COSTS & EXPENSES

    Any
      and
      all costs and expenses in respect hereof shall be borne by Party B in full,
      including those incurred in respect of the inquiry of creditworthiness,
      inspection, public notarization, etc. in connection herewith, attorney’s fee,
      suit costs as well as travel expense, etc. incurred by Party A in realizing
      its
      creditor’s rights in case Party B fails to repay the principal of and accrued
      interest on the loan hereunder and to reimburse the fees payable by Party B
      as
      scheduled, Party B hereby authorizes Party a to directly withhold any such
      amount out of Party B’s bank account, any deficiency existing after such
      withholding shall be reimbursed by Party B in full to Party A upon receipt
      of a
      notice requesting to do so from Party A without further need to provide any
      proof. 

    ARTICLE
      13 BREACHING EVENTS AND SETTLEMENT

    13.1
      Any
      of the following shall be deemed a breach on the part of Party B:

    13.1.1
      The information provided by Party B to Party A is falsified or conceals
      significant facts, failure by Party B to assist Party A in investigation,
      examination as well as inspection, in breach of ARTICLE 7.2.1 hereof, Party
      B
      fails to make appropriate correction within a timeframe specified by Party
      A,
      the circumstances are rather serious; 

    13.1.2
      Party B refuses to be subject to or shrugs off the supervision by Party A over
      the use of credit loan by Party B, related production & operation, as well
      as financial activities, in contravention of ARTICLE 7.2.2, the circumstances
      are serious; 

    13.1.3
      Party B fails to use the loan for purposes described herein, in contravention
      of
      ARTICLE 7.2.3. 

    13.1.4
      Party B fails to repay the principal of and accrued interest on the loan in
      full
      and as scheduled herein, as in contravention of ARTICLE 7.2.4 hereof;

    13.1.5
      Party B unilaterally assigns its debts hereunder to any third party that may
      prejudice Party A’s interests, as in contravention of ARTICLE 7.2.5 hereof;

     

    
      
        
        

      

      
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    13.1.6
      Party B fails to notify Party A of any event set out in ARTICLE 7.2.6 in a
      timely manner, or Party B refuses to increase the security or guaranty for
      repayment of debts hereunder as required by Party A being aware of any such
      events described in ARTICLE 7.2.26 hereinabove, or any other events occurring
      on
      the part of Party B that may impair the safe recovery of the loan in the sole
      opinion of Party A; 

    13.1.7
      Party A’s interest is impaired as a result of Party B’s act in contravention of
ARTICLE
      9.1,
      9.2, and/or 9.4, or as a result of failure of Party B to make prompt correction
      as required by Party A; 

    13.1.8
      Any other events occurring on the part of Party B that may prejudice the
      legitimate rights and interests of Party A in the sole opinion of the same;
      

    13.2
      Upon
      any of the following cases on the part of the surety hereunder that may affect
      the guaranty capacity of the surety as in the sole opinion of Party A, failure
      of the surety and/or Party B to exclude any adverse impact as a result thereof
      or increase or change the security or guaranty shall be deemed as a breach
      of
      Party B:

    13.2.1
      Occurrence of any of the cases similar to those set out in ARTICLE 7.2.6 hereof;
      

    13.2.2
      Conceals the capacity to stand surety or fails to be authorized by related
      authority at the time of issuance of the irrevocable guaranty letter;

    13.2.3
      Fails to go through annual inspection and registration formalities in a timely
      manner; 

    13.2.4
      Neglect in management and recourse of any due creditor’s rights, or disposes of
      its principal property without compensation or otherwise. 

    13.3
      Upon
      any of the following cases on the part of the Mortgagor (Pledgor) hereunder
      that
      may result in the failure of such mortgage (pledge) or value deficiency of
      the
      mortgaged or pledged objects, as in the sole opinion of Party A, failure of
      the
      Mortgagor (Pledgor) to exclude any adverse impact as a result thereof or failure
      of Party B to increase or change the security or guaranty, as required by Party
      A shall be deemed as a breach of Party B:

    13.3.1
      Has no title in or disposal rights of the mortgaged or pledged objects, or
      the
      title therein remain unclear; 

     

    
      
        
        

      

      
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    13.3.2
      Conceals the fact that the mortgaged or pledged objects are co-owned, have
      been
      leased out, have been sealed up, or have been in custody, etc.; 

    13.2.3
      The Mortgagor, without the written consent from Party A, assigns, rents,
      remortgages, or otherwise disposes of the mortgaged objects; 

    13.2.4
      A
      considerable appreciation in value of the mortgaged objects as a result of
      failure of the Mortgagor to take appropriate custody of, maintenance and repair
      on the mortgaged objects; or reduction in value of mortgaged objects as a result
      of act of the Mortgagor threatening the mortgaged objects; or the Mortgagor
      fails to procure insurance for the mortgaged objects as required by the Party
      A
      within the agreed upon mortgage term; 

    13.4
      Upon
      any breaching events set out in 13.1, 13.2, as well as 13.3 hereinabove, Party
      A
      is entitled to elect to take any or several in combination of the following
      steps to which Party B shall refrain from making any objection:

    13.4.1
      Cease to provide any part of loan unused by Party B; 

    13.4.2
      Reclaim the principal of the loan together with accrued interest, to the extent
      made available to Party B, as well as related expenses, ahead of schedule;
      

    13.4.3
      Directly withhold any amount out of the settlement account or other accounts
      of
      Party B, to repay the debts hereunder; 

    13.4.4
      Exercise the recourse rights pursuant to this Contract. 

    ARTICLE
      14 MODIFICATION AND TERMINATION OF CONTRACT

    This
      Contract may be modified or terminated upon agreement between both Parties
      in
      writing. Prior to concluding of such written agreement, this Contract shall
      remain in full force and effect. Neither party hereto may modify, revise or
      terminate this Contract without consent and agreement of the other party.

    ARTICLE
      15 MISCELLANEOUS 

    15.1
      During the whole life of this Contract, no tolerance, grace period, or
      suspension to enforce any of the rights and interests or powers of Party A
      hereunder, as may be granted by Party A to Party B in respect of any breach
      or
      delay on the part of Party B may impair, affect, or limit any rights and
      interests, or powers of Party A as the creditor in accordance with this Contract
      and related laws and regulations, nor shall be construed as the permission
      or
      recognition by Party A of any breach on the part of Party B, or as the waiver
      by
      Party A of any right to take appropriate actions against any present or future
      breach of Party B. 

     

    
      
        
        

      

      
        218

        
          

        

      

      
        
        

      

    

    15.2
      Party B shall perform any and all repayment obligations in disregard of the
      fact
      that this Contract, in whole or part, is determined null and void at law for
      whatsoever reasons, in such a case, Party A is entitled to terminate this
      Contract and promptly reclaim against Party B the principal of and accrued
      interest on the loan hereunder, as well as other related amounts. 

    15.3
      Any
      notice and request to be made by either party hereunder shall be in writing.
      The
      telegraph and/or telex shall be deemed effectively given upon sending by Party
      A, and the communication shall be deemed effectively given upon being delivered
      to appropriate post office by Party A. 

    15.4
      The
      loan receipt as well as any written supplemental agreement between both Parties
      on any issue not defined herein or on revision of this Contract shall be
      attached as appendices to this Contract and constitute integral parts hereof.
      

    ARTICLE
      16 GOVERNING LAW AND DISPUTE RESOLUTION 

    16.1
      The
      formation, interpretation, as well as dispute resolution in respect of this
      Contract shall be governed by the laws of the People’s Republic of China, the
      rights and interests of both parties hereto shall be under protection of the
      same. 

    16.2
      Any
      dispute arising out of or in connection with the performance of this Contract
      shall be settled by friendly negotiation between both Parties, in case of no
      successful settlement therefrom, either party may elect to: 16.1
      (optional, either 16.2.1 or 16.2.2)

    16.2.1
      Lodge an action with the people’s court at the place where Party A resides; or

    16.2.2
      Submit to _____________ Arbitration Committee for determination in accordance
      with rules and procedures then currently in force.

    16.3
      Once
      appropriate public notarization is completed which gives rise to the
      enforceability of this Contract, Party A may directly apply to any People’s
      Court having appropriate jurisdiction thereover to enforce this Contract for
      purpose of recovering any due and payable debts hereunder. 

     

    
      
        
        

      

      
        219

        
          

        

      

      
        
        

      

    

    ARTICLE
      17 EFFECTIVENESS

    17.1
      This
      Contract shall enter into and remain in force conditional upon the signature,
      common seal by duly authorized representatives of both parties, as well as
      upon
      completion of the formalities for security or guaranty as set forth in ARTICLE
      6
      hereof, until any and all principal of and the accrued interest on the loan,
      as
      well as any other costs in respect thereof are paid up. 

    17.2
      This
      Contract is made in four copies being equally authentic. Party A holds two
      (2)
      copies thereof, each of Party B and _____ holds one (1) copies thereof.

    

    

    [Below
      is intentionally left blank]

    

    

    

      
        	
                Party
                  A(Common Seal):

              	
                Party
                  B(Common Seal):

              
	 	 
	
                Duly
                  Authorized Signatory:

              	
                Duly
                  Authorized Signatory:

              
	 	 
	
                Date:

              	
                Date:
                  31st
                  Aug. 2005

              

      

    

     

    
      
        
        

      

      
        220

        
          

        

      

      
        
        

      

    

    IRREVOCABLE
      GUARANTY LETTER

    (Prepared
      in Dec. 2001)

    

    

    In
      Favor
      of China Merchants Bank Tianjin Branch 

    

    WHEREAS,
      your
      bank
      has entered into a Loan Contract with the no. [2005] daizhidi 55023 with Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd. (hereinafter “the Borrower”) on 31st
      Aug.
      2005 whereby a loan in the sum of RMB
      Ten Million Yuan only
      is to be
      extended for a term of
      twelve months.
      

    NOW
      THEREFORE,
      we, the
      undersigned and surety for the Borrower, hereby agree to issue this Guaranty
      Letter with joint and several liabilities for all the debts owed by the Borrower
      to your bank, subject to the terms and conditions set forth
      hereinafter.

    

    ARTICLE
      1
      The
      scope of the suretyship offered by us hereunder covers any all debts created
      under the Loan Contract, including the principal of the loan in the amount
      of
RMB
      Ten Million Yuan
      offered
      by your bank to the Borrower in accordance with the Loan Contract, together
      with
      appropriate accrued interest, penalty interest, fine for breach, as well as
      any
      and all other costs and expenses in respect thereof. 

    ARTICLE
      2
      We, the
      undersigned and the surety for the Borrower, hereby acknowledge to be jointly
      and severally liable, whether economically or legally, for any debts owed by
      the
      Borrowers, provided such debts shall be within the surety scope as set out
      in
      ARTICLE 2 hereinabove. Your bank is entitled to directly make recourse against
      us without having to first make recourse or institute actions against the
      Borrower in case the Borrower fails to repay or pay in a timely manner and
      in
      accordance with the Loan Contract and/or any other particular contract, if
      any,
      the principal of the loan and/or any amount paid by your bank for the Borrower,
      or any related expenses, or in the case of any breaching event as may be set
      out
      in the Loan Contract and/or any other particular contract, if any. In disregard
      to any mortgage or pledge established additionally to ensure the timely
      satisfaction or repayment of any debt owed by the Borrower to your bank under
      the Loan Contract, your bank is also entitled to directly make recourse against
      us for all the amounts of debts, without having to first enforcement of such
      mortgaged or pledged objects. 

     

    
      
        
        

      

      
        221

        
          

        

      

      
        
        

      

    

    We
      agree
      to be absolutely subject to any Claim Notice to be issued by you which is final.
      We further agree to repay and satisfy any and all debts owed by the Borrower
      under the Loan Contract in full within five days upon receipt of such Claim
      Notice for which your bank is not obliged to provide any proof or
      documents. 

    ARTICLE
      3
      This
      Guaranty Letter is independent, continuously effective, irrevocable and
      unconditional, in no event shall be affected by the Loan Contract and/or any
      particular contract, nor shall be affected by any agreement or document
      concluded between the Borrower and any unit. This Guaranty Letter shall remain
      unchanged in the event of any fraudulent act, reorganization, cease to carry
      out
      business, dissolution, liquidation, bankruptcy, etc. on the part of the Borrower
      for whatsoever reasons. The liability to be taken by us as the surety hereunder
      may not be released or exempted by reason of any order received, change in
      our
      financial standing, or any agreement entered into with any unit or individual.
      

    The
      liability to be taken by us as the surety hereunder may not be affected by
      virtue of cease to provide any unused part of loan and/or recovery of the
      extended loan in advance, by your bank in accordance with ARTICLE 13 of the
      Loan
      Contract.

    ARTICLE
      4
      We, the
      undersigned and surety for the Borrower, hereby acknowledge and undertakes
      to be
      bound by and subject to any extension agreement or other supplemental agreements
      in respect of the term and interest rate, etc. of the Loan Contract between
      your
      bank and the Borrower in the course of performance of the same, without
      requiring future notice from your bank. 

    ARTICLE
      5
      The
      suretyship duration hereunder shall be as from the expiry date of each loan
      as
      may be extended under the Loan Contract or as from the same date of the second
      year following the expiry date of the Loan Contract. 

    ARTICLE
      6 WE, THE UNDERSIGNED AND SURETY FOR THE BORROWER, HEREBY REPRESENTS AND
      WARRANTS WITH YOUR BANK:

     

    
      
        
        

      

      
        222

        
          

        

      

      
        
        

      

    

    6.1
      That
      we, a legal person enterprise which is duly registered with appropriate
      authority for industry and commerce (registration no.: ______ ) upon approval
      by
      _________, and which is eligible for standing surety for others, or a
      not-for-profit institution with legal person status which is eligible for
      standing surety for others, agree to provide guarantee with the assets legally
      owned by us or to which we are entitled to disposal right, and undertake to
      perform any of the obligations prescribed herein; 

    6.2
      That
      issuance of this Guaranty Letter is the true representation of us under no
      misrepresentation or duress; 

    6.3
      That
      we are fully authorized or approved by superior authority/the Board of Directors
      as necessitated by issuance of this Guaranty Letter;

    6.4
      That
      any and all financial statements as well as any other documents to be submitted
      by us to your bank are true, legally permitted for which the our legal
      representative or any other person in charge shall be held liable; 

    6.5
      That
      we shall issue a guaranty confirmation upon request of your bank; 

    6.6
      That
      we, the undersigned and surety for the Borrower, agree to be held for the total
      guaranty liability (including equivalent in foreign currency) not more than
      the
      whole sum of our proprietary rights and interests;

    6.7
      That
      we shall notify your bank of any change in the registration particulars with
      authority for industry and commerce, organization structure, operation mode
      or
      financial standing in respect of our company, which change may result in a
      change in our capacity to perform this guaranty letter, without delay;

    6.8
      That
      your bank is hereby authorized to withhold or deduct any such amount therefore
      out of any deposit account of us, until and unless any and all debts, as well
      as
      any other expenses, as long as owed by the Borrower under the Loan Contract,
      and
      we shall be absolutely subject to the aforesaid continuing obligation;

    6.9
      That
      any assign or successor of us shall be bound by all the provisions contained
      herein. No assignment of any of our obligations hereunder may be made by us
      in
      the absence of the written consent from your bank; 

    ARTICLE
      7 This
      Guaranty Letter is governed by the laws of the People’s Republic of China, we
      hereby confirm that any dispute arising out of or in connection with the
      performance hereof shall be settled by such means applicable to dispute
      resolution, as set out in the Loan Contract.

     

    
      
        
        

      

      
        223

        
          

        

      

      
        
        

      

    

    Once
      appropriate public notarization is completed which gives rise to the
      enforceability of the Loan Contract and this Guaranty Letter, we hereby agree
      that any creditor receiving no repayment is entitled to directly apply to any
      People’s Court having appropriate jurisdiction thereover to enforce the Loan
      Contract and/or this Guaranty Letter, for purpose of recovering any due and
      payable debts hereunder.

    ARTICLE
      8 This
      Guaranty Letter is made in three (3) copies, each of the Lender, the Borrower
      as
      well as the surety shall hold one copy thereof. 

    This
      Guaranty Letter shall enter into force upon signature and common seal by the
      surety hereunder.

    

    

      
        	
                The
                  Surety (Common Seal):

              	
                Duly
                  Authorized Signatory (Signature): 

              
	 	
                Wu
                  Congfeng

              
	
                Address:
                  Daqiuzhuang Town, Jinghai County, Tianjin

              	
                Tel:

              
	
                Major
                  Deposit Bank & A/c No.:

              	
                Date:
                  21st
                  Aug. 2005 

              

      

    

    

    
      
        
        

      

      
        224

        
          

        

      

      
        
        

      

    

    IRREVOCABLE
      GUARANTY LETTER

    (Prepared
      in Dec. 2001)

    

    

    In
      Favor
      of China Merchants Bank Tianjin Branch 

    

    WHEREAS,
      your
      bank
      has entered into a Loan Contract with the no. [2005] daizhidi 55023 with Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd. (hereinafter “the Borrower”) on 31st
      Aug.
      2005 whereby a loan in the sum of RMB
      Ten Million Yuan only
      is to be
      extended for a term of
      twelve months.
      

    NOW
      THEREFORE,
      we, the
      undersigned and surety for the Borrower, hereby agree to issue this Guaranty
      Letter with joint and several liabilities for all the debts owed by the Borrower
      to your bank, subject to the terms and conditions set forth
      hereinafter.

    

    ARTICLE
      1
      The
      scope of the suretyship offered by us hereunder covers any all debts created
      under the Loan Contract, including the principal of the loan in the amount
      of
RMB Ten
      Million Yuan
      offered
      by your bank to the Borrower in accordance with the Loan Contract, together
      with
      appropriate accrued interest, penalty interest, fine for breach, as well as
      any
      and all other costs and expenses in respect thereof. 

    ARTICLE
      2
      We, the
      undersigned and the surety for the Borrower, hereby acknowledge to be jointly
      and severally liable, whether economically or legally, for any debts owed by
      the
      Borrowers, provided such debts shall be within the surety scope as set out
      in
      ARTICLE 2 hereinabove. Your bank is entitled to directly make recourse against
      us without having to first make recourse or institute actions against the
      Borrower in case the Borrower fails to repay or pay in a timely manner and
      in
      accordance with the Loan Contract and/or any other particular contract, if
      any,
      the principal of the loan and/or any amount paid by your bank for the Borrower,
      or any related expenses, or in the case of any breaching event as may be set
      out
      in the Loan Contract and/or any other particular contract, if any. In disregard
      to any mortgage or pledge established additionally to ensure the timely
      satisfaction or repayment of any debt owed by the Borrower to your bank under
      the Loan Contract, your bank is also entitled to directly make recourse against
      us for all the amounts of debts, without having to first enforcement of such
      mortgaged or pledged objects. 

     

    
      
        
        

      

      
        225

        
          

        

      

      
        
        

      

    

    We
      agree
      to be absolutely subject to any Claim Notice to be issued by you which is final.
      We further agree to repay and satisfy any and all debts owed by the Borrower
      under the Loan Contract in full within five days upon receipt of such Claim
      Notice for which your bank is not obliged to provide any proof or
      documents. 

    ARTICLE
      3
      This
      Guaranty Letter is independent, continuously effective, irrevocable and
      unconditional, in no event shall be affected by the Loan Contract and/or any
      particular contract, nor shall be affected by any agreement or document
      concluded between the Borrower and any unit. This Guaranty Letter shall remain
      unchanged in the event of any fraudulent act, reorganization, cease to carry
      out
      business, dissolution, liquidation, bankruptcy, etc. on the part of the Borrower
      for whatsoever reasons. The liability to be taken by us as the surety hereunder
      may not be released or exempted by reason of any order received, change in
      our
      financial standing, or any agreement entered into with any unit or individual.
      

    The
      liability to be taken by us as the surety hereunder may not be affected by
      virtue of cease to provide any unused part of loan and/or recovery of the
      extended loan in advance, by your bank in accordance with ARTICLE 13 of the
      Loan
      Contract.

    ARTICLE
      4
      We, the
      undersigned and surety for the Borrower, hereby acknowledge and undertakes
      to be
      bound by and subject to any extension agreement or other supplemental agreements
      in respect of the term and interest rate, etc. of the Loan Contract between
      your
      bank and the Borrower in the course of performance of the same, without
      requiring future notice from your bank. 

    ARTICLE
      5
      The
      suretyship duration hereunder shall be as from the expiry date of each loan
      as
      may be extended under the Loan Contract or as from the same date of the second
      year following the expiry date of the Loan Contract. 

    ARTICLE
      6 WE, THE UNDERSIGNED AND SURETY FOR THE BORROWER, HEREBY REPRESENTS AND
      WARRANTS WITH YOUR BANK:

     

    
      
        
        

      

      
        226

        
          

        

      

      
        
        

      

    

    6.1
      That
      we, a legal person enterprise which is duly registered with appropriate
      authority for industry and commerce (registration no.: ______ ) upon approval
      by
      _________, and which is eligible for standing surety for others, or a
      not-for-profit institution with legal person status which is eligible for
      standing surety for others, agree to provide guarantee with the assets legally
      owned by us or to which we are entitled to disposal right, and undertake to
      perform any of the obligations prescribed herein; 

    6.2
      That
      issuance of this Guaranty Letter is the true representation of us under no
      misrepresentation or duress; 

    6.3
      That
      we are fully authorized or approved by superior authority/the Board of Directors
      as necessitated by issuance of this Guaranty Letter;

    6.4
      That
      any and all financial statements as well as any other documents to be submitted
      by us to your bank are true, legally permitted for which the our legal
      representative or any other person in charge shall be held liable; 

    6.5
      That
      we shall issue a guaranty confirmation upon request of your bank; 

    6.6
      That
      we, the undersigned and surety for the Borrower, agree to be held for the total
      guaranty liability (including equivalent in foreign currency) not more than
      the
      whole sum of our proprietary rights and interests;

    6.7
      That
      we shall notify your bank of any change in the registration particulars with
      authority for industry and commerce, organization structure, operation mode
      or
      financial standing in respect of our company, which change may result in a
      change in our capacity to perform this guaranty letter, without delay;

    6.8
      That
      your bank is hereby authorized to withhold or deduct any such amount therefore
      out of any deposit account of us, until and unless any and all debts, as well
      as
      any other expenses, as long as owed by the Borrower under the Loan Contract,
      and
      we shall be absolutely subject to the aforesaid continuing obligation;

    6.9
      That
      any assign or successor of us shall be bound by all the provisions contained
      herein. No assignment of any of our obligations hereunder may be made by us
      in
      the absence of the written consent from your bank; 

    ARTICLE
      7 This
      Guaranty Letter is governed by the laws of the People’s Republic of China, we
      hereby confirm that any dispute arising out of or in connection with the
      performance hereof shall be settled by such means applicable to dispute
      resolution, as set out in the Loan Contract.

     

    
      
        
        

      

      
        227

        
          

        

      

      
        
        

      

    

    Once
      appropriate public notarization is completed which gives rise to the
      enforceability of the Loan Contract and this Guaranty Letter, we hereby agree
      that any creditor receiving no repayment is entitled to directly apply to any
      People’s Court having appropriate jurisdiction thereover to enforce the Loan
      Contract and/or this Guaranty Letter, for purpose of recovering any due and
      payable debts hereunder.

    ARTICLE
      8 This
      Guaranty Letter is made in three (3) copies, each of the Lender, the Borrower
      as
      well as the surety shall hold one copy thereof. 

    This
      Guaranty Letter shall enter into force upon signature and common seal by the
      surety hereunder.

    

    

    

      
        	
                The
                  Surety (Common Seal):

              	
                Duly
                  Authorized Signatory (Signature): 

              
	 	
                Zhang
                  Yuqing

              
	
                Address:
                  Daqiuzhuang Town, Jinghai County, Tianjin

              	
                Tel:

              
	
                Major
                  Deposit Bank & A/c No.:

              	
                Date:
                  31st
                  Aug. 2005 

              

      

    
      
        
        

      

      
        228

        
          

        

      

      
        
        

      

    

    

    For
      Letter of Guarantee

    

    NO.:
      2005
      daizi No.: 55023

    

    To:
      Tianjin branch Merchant Bank

    We,
      the
      enterprise authorized by               
      with
      legal person qualification and business license, would like to provide guarantee
      to Renminbi
      (currency) 10,000,000
      Yuan
      under
2005
      daizi No.: 55023
      loan
      contract/ credit extension contract signed on Aug.
      31, 2005
      by
Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd.
      (Borrower) and your bank. Whereas, we confirmed that the Irrevocable Letter
      of
      Guarantee issued on Aug.
      31, 2005 to
      your
      bank is truthful, and we would take all responsibilities to the articles under
      the letter of guarantee. 

    

    

    

    

    Guarantor
      (common seal): Tianjin Sheng Da Steel Mill Co.,Ltd. 

    Present
      guarantee. 

    Authorized
      representative: Wu Congfeng

    

    Aug
      31,
      2005

    

    
      
        
        

      

      
        229

        
          

        

      

      
        
        

      

    

    

    For
      Letter of Guarantee

    

    NO.:
      2005
      daizi No.: 55023

    

    To:
      Tianjin branch Merchant Bank

    We,
      the
      enterprise authorized
      by              
 with
      legal person qualification and business license, would like to provide guarantee
      to Renminbi
      (currency) 10,000,000
      Yuan
      under
2005
      daizi No.: 55023
      loan
      contract / credit extension contract signed on Aug.
      31, 2005 by
      Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd.
      (Borrower) and your bank. Whereas, we confirmed that the Irrevocable Letter
      of
      Guarantee issued on Aug.
      31, 2005 to
      your
      bank is truthful, and we would take all responsibilities to the articles under
      the letter of guarantee. 

    

    

    

    

    Guarantor
      (common seal): 

    Present
      guarantee. 

    Authorized
      representative: 

    

    Aug
      31,
      2005

    

    
      
        
        

      

      
        230

        
          

        

      

      
        
        

      

    

    

    

    

    

    

    LOAN
      CONTRACT

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    CHINA
      MERCHANTS BANK

    FEB
      2004

    
      
        
        

      

      
        231

        
          

        

      

      
        
        

      

    

     Contract
      No.: [2005]Daizhidi55033

    Parties
      to this Loan Contract: 

    The
      Lender: China Merchants Bank Tianjin Branch (hereinafter referred to as “Party
      A”)

    Person
      in
      charge: Yang Yuehua

    Position:
      President

    Address: 55
      North
      Youyi Road Hexi District, Tianjin 

    Tel:
      

    And
      

    The
      Borrower: Tianjin Daqiuzhuang Metal Sheet Co., Ltd. (hereinafter referred to
      as
“Party B”)

    Legal
      Representative: Yu Zuosheng

    Position:
      Chairman of the Board

    Address:
      Daqiuzhuang, Jinghai County, Tianjin

    Tel:
      

    

    WHEREAS,
      Party B
      has applied to Party A for a
      certain amount of loan
      for
      purpose of Working
      Capital.
      

    WHEREAS,
      Party A
      agrees to extend such a loan after due process of examination. 

    NOW,
      THEREFORE, both
      Parties agree to enter into this Loan Contract based on the negotiation in
      regard thereto in accordance with relevant laws and regulations, subject to
      the
      terms and conditions to be set out hereinafter. 

    

    
      
        
        

      

      
        232

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      1
      TYPE OF LOAN

     

    This
      Loan
      to be provided hereunder is
      Working Capital Loan.
      

    ARTICLE
      2 CURRENCY AND AMOUNT OF LOAN

    The
      loan
      shall be provided in the currency of RMB
      and in
      the amount of Fifteen
      Million Yuan Only.
      

    ARTICLE
      3 LOAN PURPOSE 

    The
      loan
      hereunder shall be used for purpose of working capital only, no diversion for
      other purposes may be done without first obtaining written consent from Party
      A. 

    ARTICLE
      4 LOAN TERM

    The
      term
      of the loan is twelve (12) months, commencing from 29th
      Sept.
      2005 and ending on 28th
      Sept.
      2006. In case the date of the actual loan availability fails to coincide with
      the abovementioned starting date of the term, the dates shown in the loan
      receipt shall apply. 

    ARTICLE
      5 INTEREST RATE AND INTEREST

    5.1
      Interest rate: The interest rate is agreed to be:_____(optional)

    
      	
              o

            	
              Fixed
                interest rate:
                _______________________

            

    

    
      	
              
                o

              

            	
              Floating
                interest rate:5.859%, to be adjusted on daily basis.
                

            

    

    A
      penalty
      interest at the double
      rate of
      the aforesaid interest rate shall be charged on any part of loan the purpose
      of
      which is changed, appropriated or diverted for other purposes by Party B without
      permission from Party A, without excluding the accrued interest in the ordinary
      course. A penalty interest which 1.5 times that as aforementioned and elected,
      shall be charged on any part of loan not paid by Party B when due. 

    Appropriate
      interest shall be charged at the abovementioned penalty interest rate on any
      part of loan which is overdue or diverted for other purposes not prescribed
      herein as from the date of such due date or diversion of such part of loan,
      until the principal of the loan together with accrued interest is discharged
      in
      full. 

     

    
      
        
        

      

      
        233

        
          

        

      

      
        
        

      

    

    In
      the
      case of any adjustment by the People’s Bank of China (hereinafter referred to as
“PBC”) to the interest rate herein, the interest on the loan shall be calculated
      at the interest rate so adjusted. 

    5.2
      Interest Calculation: the interest on the loan shall accrue as from the date
      of
      the actual availability to Party B and on the basis of number of days during
      which the loan is outstanding, as well as the actual amount of the loan extended
      hereunder, and the interest shall be computed on the 20th
      day of
      the last month of each applicable quarter. 

    5.3
      Interest Settlement: Party B shall pay any and all accrued interest on the
      loan
      at each applicable interest computation date which accrued interest may be
      directly withheld or deducted by Party A from any deposit account of Party
      B. In
      case Party B fails to pay the accrued interest, Party A shall have the right
      to
      charge Party B a compound interest at the abovementioned penalty interest rate
      on any overdue interest accrued hereunder. 

    ARTICLE
      6 SECURITY 

    6.1
      Tianjin
      Sheng Da Steel Mill Co.,Ltd.
      and
Baotou
      Shengda Industrial Co., Ltd.
      as named
      by Party B shall stand for surety for the principal, accrued interest thereon,
      as well as the any and all other costs in respect thereof hereunder both of
      the
      companies shall provide Party A with irrevocable guaranty letters, and/or

    6.2
      The
      mortgage (pledge) shall be provided for the loan hereunder by _______ company
      or
      ________ individual with the _________ owned or subject to legal disposal by
      the
      same, for which a mortgage or pledge contract is to be concluded by both
      parties. 

    ARTICLE
      7 RIGHTS AND OBLIGATIONS OF PARTY B 

    7.1
      Party
      B shall have the rights to be set out hereinafter:

    7.1.1
      To
      withdraw and use the whole of loan as agreed herein; 

    7.1.2
      To
      deny any additional preconditions not stipulated herein; 

    7.1.3
      To
      assign or transfer its debt to any third party upon consent of Party A;

    7.2
      Party
      B shall be under the following obligations:

     

    
      
        
        

      

      
        234

        
          

        

      

      
        
        

      

    

    7.2.1
      To
      provide any documents and/or materials as required by Party A, as well as the
      information relating to all of its depository banks, accounts number and balance
      existing therein, and to provide assistance in any investigation, examination
      as
      well as inspection to be carried out by Party A in respect of the loan
      hereunder; 

    7.2.2
      To
      be subject to reasonable supervision by Party A over Party B’s use of the credit
      loan, as well as supervision by the same over Party B’s production &
operation and the financial activities; 

    7.2.3
      To
      use the loan subject to the terms and conditions set out herein; 

    7.2.4
      To
      repay and pay in full the principal of and accrued interest on the loan as
      scheduled herein; 

    7.2.5
      To
      be subject to Party A’s prior written consent in the case of assignment or
      transfer of its debts hereunder, in whole or part, to any third party;

    7.2.6
      Upon any of the following cases, Party B is required to notify Party A promptly
      and to take reasonable security measures necessary for repayment or
      reimbursement in full of the principal of and accrued interest on the loan
      hereunder, as well as any and all other costs that may occur
      hereunder:

    7.2.6.1
      Substantial financial loss, assets loss or other financial crisis; 

    7.2.6.2
      Provision of loan or stand surety, or provision of mortgage (pledge) with its
      own properties (rights), for purpose of any third party’s interest or protecting
      any third party from any loss; 

    7.2.6.3
      Consolidation (M&A), division, reconstruction, joint venture (cooperative),
      transfer of property rights, stock reconstruction, etc; 

    7.2.6.4
      Cease to carry out business, have its business license suspended or
      deregistered, apply by itself or others to be bankrupt, or dissolution, etc;
      

    7.2.6.5
      Its controlling shareholder or other affiliates experience substantial operation
      or financial crisis that may impair the ordinary operation thereof;

    7.2.6.6
      Conduct related transactions with its controlling shareholders or other
      affiliates that may be materially adverse to its ordinary operation;

    7.2.6.7
      Occurrence of any suit, arbitration, or criminal or administrative penalty
      that
      may be materially adverse to its operation or financial standing; 

     

    
      
        
        

      

      
        235

        
          

        

      

      
        
        

      

    

    7.2.6.8
      Occurrence of any breaking events that may affect its repayment
      capacity.

    ARTICLE
      8 RIGHTS AND OBLIGATIONS OF PARTY A 

    8.1
      Party
      A shall have the following rights:

    8.1.1
      To
      require Party B to repay the principal of and accrued interest on the loan
      as
      scheduled herein; 

    8.1.2
      To
      request Party B to provide materials relating to the loan hereunder;

    8.1.3
      To
      find out information in respect of Party B’s production & operation as well
      as financial activities; 

    8.1.4
      To
      supervise the use by Party B of the loan hereunder;

    8.1.5
      To
      directly transfer and withhold the amount for repayment of the due principal
      of
      and accrued interest on the loan, out of any of Party B’s bank accounts;

    8.1.6
      To
      require Party B to repay the loan ahead of schedule or to suspend any part
      of
      loan that remains unused by Party B, in accordance with this Contract, in case
      Party B fails to perform any of its obligations hereunder; 

    8.1.7
      To
      require Party B to repay promptly the principal of and accrued interest of
      the
      loan, as well as any other costs that may occur hereunder, or to transfer all
      of
      Party B’s debts hereunder to any assignee permitted by Party A, or to
      provide/increase any appropriate security or guaranty acceptable to Party A.
      

    8.2
      Party
      A shall be under the following obligations: 

    8.2.1
      To
      extend the loan in accordance herewith; 

    8.2.2
      To
      keep or maintain confidential any and all information in relation to Party
      B’s
      debts, finance, production, as well as operation, etc. except as otherwise
      provided for by related laws; 

    ARTICLE
      9 PARTY HEREBY REPRESENTS AND WARRANTS TO PARTY A THAT:

    9.1
      Party
      B is an enterprise duly incorporated under the laws of the People’s Republic of
      China (hereinafter “PRC”) and existing legally, has the legal person status, as
      well as the full civil act capacity to sign and perform this Contract;

    9.2
      Party
      B has been fully authorized by the Board of Directors or any other authorities
      to sign and perform this Contract; 

     

    
      
        
        

      

      
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    9.3
      The
      documentation, materials as well as the vouchers to be provided by Party B
      in
      relation to Party B, surety, mortgagor (pledgor), as well as the mortgaged
      or
      pledged objects are true, accurate, complete and valid, free from any
      significant mistakes inconsistent with facts or any substantial omission;

    9.4
      At
      the time of signing this Contract, no suit, arbitration, criminal or
      administrative penalty that may be materially adverse to Party B or its
      principal property occur(s), nor may the same threaten(s) to occur during
      performance of this Contract, otherwise, Party B is required to notify Party
      A
      promptly; 

    9.5
      To be
      in strict compliance with any applicable national laws and regulations in its
      operation, to strictly abide by the business scope prescribed by its Business
      License for Incorporated Enterprise in conducting business, as well as to go
      through enterprise (legal person) annual inspection & registration
      formalities in time; 

    9.6
      To
      maintain or increase the current operation or management level to ensure the
      value preservation and appreciation of the existing assets, not to waive any
      due
      creditor rights, not to dispose of the existing principal property free or
      otherwise; 

    9.7
      No
      significant event that suffice to prejudice the performance by Party B of any
      obligations hereunder exists at the time of signing this Contract. 

    ARTICLE
      10 PREPAYMENT 

    10.1
      Party B may request to repay the loan ahead of schedule, provided however a
      prior consent from Party A has been obtained; 

    10.2
      In
      the case of any repayment ahead of schedule, the interest shall be computed
      and
      settled at the rate specified herein. 

    ARTICLE
      11 LOAN EXTENSION 

    In
      case
      Party B is unable to repay the loan hereunder as scheduled and requests for
      an
      extension therefore, Party B shall submit an application for that purpose one
      month prior to the scheduled expiry date hereof; An Agreement on Loan Contract
      Extension shall be concluded by both Parties in case Party A consents to such
      intended extension after due process of examination, otherwise, this Contract
      shall remain in full force and effect. Party B is obliged to repay any part
      of
      loan used by Party B together with accrued interest, as provided herein.

     

    
      
        
        

      

      
        237

        
          

        

      

      
        
        

      

    

    ARTICLE
      12 COSTS & EXPENSES

    Any
      and
      all costs and expenses in respect hereof shall be borne by Party B in full,
      including those incurred in respect of the inquiry of creditworthiness,
      inspection, public notarization, etc. in connection herewith, attorney’s fee,
      suit costs as well as travel expense, etc. incurred by Party A in realizing
      its
      creditor’s rights in case Party B fails to repay the principal of and accrued
      interest on the loan hereunder and to reimburse the fees payable by Party B
      as
      scheduled, Party B hereby authorizes Party a to directly withhold any such
      amount out of Party B’s bank account, any deficiency existing after such
      withholding shall be reimbursed by Party B in full to Party A upon receipt
      of a
      notice requesting to do so from Party A without further need to provide any
      proof. 

    ARTICLE
      13 BREACHING EVENTS AND SETTLEMENT

    13.1
      Any
      of the following shall be deemed a breach on the part of Party B:

    13.1.1
      The information provided by Party B to Party A is falsified or conceals
      significant facts, failure by Party B to assist Party A in investigation,
      examination as well as inspection, in breach of ARTICLE 7.2.1 hereof, Party
      B
      fails to make appropriate correction within a timeframe specified by Party
      A,
      the circumstances are rather serious; 

    13.1.2
      Party B refuses to be subject to or shrugs off the supervision by Party A over
      the use of credit loan by Party B, related production & operation, as well
      as financial activities, in contravention of ARTICLE 7.2.2, the circumstances
      are serious; 

    13.1.3
      Party B fails to use the loan for purposes described herein, in contravention
      of
      ARTICLE 7.2.3. 

    13.1.4
      Party B fails to repay the principal of and accrued interest on the loan in
      full
      and as scheduled herein, as in contravention of ARTICLE 7.2.4 hereof;

    13.1.5
      Party B unilaterally assigns its debts hereunder to any third party that may
      prejudice Party A’s interests, as in contravention of ARTICLE 7.2.5 hereof;

     

    
      
        
        

      

      
        238

        
          

        

      

      
        
        

      

    

    13.1.6
      Party B fails to notify Party A of any event set out in ARTICLE 7.2.6 in a
      timely manner, or Party B refuses to increase the security or guaranty for
      repayment of debts hereunder as required by Party A being aware of any such
      events described in ARTICLE 7.2.26 hereinabove, or any other events occurring
      on
      the part of Party B that may impair the safe recovery of the loan in the sole
      opinion of Party A; 

    13.1.7
      Party A’s interest is impaired as a result of Party B’s act in contravention of
ARTICLE
      9.1,
      9.2, and/or 9.4, or as a result of failure of Party B to make prompt correction
      as required by Party A; 

    13.1.8
      Any other events occurring on the part of Party B that may prejudice the
      legitimate rights and interests of Party A in the sole opinion of the same;
      

    13.2
      Upon
      any of the following cases on the part of the surety hereunder that may affect
      the guaranty capacity of the surety as in the sole opinion of Party A, failure
      of the surety and/or Party B to exclude any adverse impact as a result thereof
      or increase or change the security or guaranty shall be deemed as a breach
      of
      Party B:

    13.2.1
      Occurrence of any of the cases similar to those set out in ARTICLE 7.2.6 hereof;
      

    13.2.2
      Conceals the capacity to stand surety or fails to be authorized by related
      authority at the time of issuance of the irrevocable guaranty letter;

    13.2.3
      Fails to go through annual inspection and registration formalities in a timely
      manner; 

    13.2.4
      Neglect in management and recourse of any due creditor’s rights, or disposes of
      its principal property without compensation or otherwise. 

    13.3
      Upon
      any of the following cases on the part of the Mortgagor (Pledgor) hereunder
      that
      may result in the failure of such mortgage (pledge) or value deficiency of
      the
      mortgaged or pledged objects, as in the sole opinion of Party A, failure of
      the
      Mortgagor (Pledgor) to exclude any adverse impact as a result thereof or failure
      of Party B to increase or change the security or guaranty, as required by Party
      A shall be deemed as a breach of Party B:

    13.3.1
      Has no title in or disposal rights of the mortgaged or pledged objects, or
      the
      title therein remain unclear; 

     

    
      
        
        

      

      
        239

        
          

        

      

      
        
        

      

    

    13.3.2
      Conceals the fact that the mortgaged or pledged objects are co-owned, have
      been
      leased out, have been sealed up, or have been in custody, etc.; 

    13.2.3
      The Mortgagor, without the written consent from Party A, assigns, rents,
      remortgages, or otherwise disposes of the mortgaged objects; 

    13.2.4
      A
      considerable appreciation in value of the mortgaged objects as a result of
      failure of the Mortgagor to take appropriate custody of, maintenance and repair
      on the mortgaged objects; or reduction in value of mortgaged objects as a result
      of act of the Mortgagor threatening the mortgaged objects; or the Mortgagor
      fails to procure insurance for the mortgaged objects as required by the Party
      A
      within the agreed upon mortgage term; 

    13.4
      Upon
      any breaching events set out in 13.1, 13.2, as well as 13.3 hereinabove, Party
      A
      is entitled to elect to take any or several in combination of the following
      steps to which Party B shall refrain from making any objection:

    13.4.1
      Cease to provide any part of loan unused by Party B; 

    13.4.2
      Reclaim the principal of the loan together with accrued interest, to the extent
      made available to Party B, as well as related expenses, ahead of schedule;
      

    13.4.3
      Directly withhold any amount out of the settlement account or other accounts
      of
      Party B, to repay the debts hereunder; 

    13.4.4
      Exercise the recourse rights pursuant to this Contract. 

    ARTICLE
      14 MODIFICATION AND TERMINATION OF CONTRACT

    This
      Contract may be modified or terminated upon agreement between both Parties
      in
      writing. Prior to concluding of such written agreement, this Contract shall
      remain in full force and effect. Neither party hereto may modify, revise or
      terminate this Contract without consent and agreement of the other party.

    ARTICLE
      15 MISCELLANEOUS 

    15.1
      During the whole life of this Contract, no tolerance, grace period, or
      suspension to enforce any of the rights and interests or powers of Party A
      hereunder, as may be granted by Party A to Party B in respect of any breach
      or
      delay on the part of Party B may impair, affect, or limit any rights and
      interests, or powers of Party A as the creditor in accordance with this Contract
      and related laws and regulations, nor shall be construed as the permission
      or
      recognition by Party A of any breach on the part of Party B, or as the waiver
      by
      Party A of any right to take appropriate actions against any present or future
      breach of Party B. 

     

    
      
        
        

      

      
        240

        
          

        

      

      
        
        

      

    

    15.2
      Party B shall perform any and all repayment obligations in disregard of the
      fact
      that this Contract, in whole or part, is determined null and void at law for
      whatsoever reasons, in such a case, Party A is entitled to terminate this
      Contract and promptly reclaim against Party B the principal of and accrued
      interest on the loan hereunder, as well as other related amounts. 

    15.3
      Any
      notice and request to be made by either party hereunder shall be in writing.
      The
      telegraph and/or telex shall be deemed effectively given upon sending by Party
      A, and the communication shall be deemed effectively given upon being delivered
      to appropriate post office by Party A. 

    15.4
      The
      loan receipt as well as any written supplemental agreement between both Parties
      on any issue not defined herein or on revision of this Contract shall be
      attached as appendices to this Contract and constitute integral parts hereof.
      

    ARTICLE
      16 GOVERNING LAW AND DISPUTE RESOLUTION 

    16.1
      The
      formation, interpretation, as well as dispute resolution in respect of this
      Contract shall be governed by the laws of the People’s Republic of China, the
      rights and interests of both parties hereto shall be under protection of the
      same. 

    16.2
      Any
      dispute arising out of or in connection with the performance of this Contract
      shall be settled by friendly negotiation between both Parties, in case of no
      successful settlement therefrom, either party may elect to: 16.1
      (optional, either 16.2.1 or 16.2.2)

    16.2.1
      Lodge an action with the people’s court at the place where Party A resides; or

    16.2.2
      Submit to _____________ Arbitration Committee for determination in accordance
      with rules and procedures then currently in force.

    16.3
      Once
      appropriate public notarization is completed which gives rise to the
      enforceability of this Contract, Party A may directly apply to any People’s
      Court having appropriate jurisdiction thereover to enforce this Contract for
      purpose of recovering any due and payable debts hereunder. 

     

    
      
        
        

      

      
        241

        
          

        

      

      
        
        

      

    

    ARTICLE
      17 EFFECTIVENESS

    17.1
      This
      Contract shall enter into and remain in force conditional upon the signature,
      common seal by duly authorized representatives of both parties, as well as
      upon
      completion of the formalities for security or guaranty as set forth in ARTICLE
      6
      hereof, until any and all principal of and the accrued interest on the loan,
      as
      well as any other costs in respect thereof are paid up. 

    17.2
      This
      Contract is made in four copies being equally authentic. Party A holds two
      (2)
      copies thereof, each of Party B and _____ holds one (1) copies thereof.

    

    

    [Below
      is intentionally left blank]

     

    

      
        	
                Party
                  A(Common Seal):

              	
                Party
                  B(Common Seal):

              
	 	 
	
                Duly
                  Authorized Signatory:

              	
                Duly
                  Authorized Signatory:

              
	 	 
	
                Date:
                  29th
                  Sept.2005

              	
                Date:
                  29th
                  Sept.2005

              

      

    

    

    
      
        
        

      

      
        242

        
          

        

      

      
        
        

      

    

    IRREVOCABLE
      GUARANTY LETTER

    (Prepared
      in Dec. 2001)

    

    

    In
      Favor
      of China Merchants Bank Tianjin Branch 

    

    WHEREAS,
      your
      bank
      has entered into a Loan Contract with the no. [2005] daizhidi 55033 with Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd. (hereinafter “the Borrower”) on 29th
      Sept.
      2005 whereby a loan in the sum of RMB
      Fifteen Million Yuan Only
      is
      extended for a term of
      twelve months.
      

    NOW
      THEREFORE,
      we, the
      undersigned and surety for the Borrower, hereby agree to issue this Guaranty
      Letter with joint and several liabilities for all the debts owed by the Borrower
      to your bank, subject to the terms and conditions set forth
      hereinafter.

    

    ARTICLE
      1
      The
      scope of the suretyship offered by us hereunder covers any all debts created
      under the Loan Contract, including the principal of the loan in the amount
      of
RMB
      Fifteen Million Yuan
      offered
      by your bank to the Borrower in accordance with the Loan Contract, together
      with
      appropriate accrued interest, penalty interest, fine for breach, as well as
      any
      and all other costs and expenses in respect thereof. 

    ARTICLE
      2
      We, the
      undersigned and the surety for the Borrower, hereby acknowledge to be jointly
      and severally liable, whether economically or legally, for any debts owed by
      the
      Borrowers, provided such debts shall be within the surety scope as set out
      in
      ARTICLE 2 hereinabove. Your bank is entitled to directly make recourse against
      us without having to first make recourse or institute actions against the
      Borrower in case the Borrower fails to repay or pay in a timely manner and
      in
      accordance with the Loan Contract and/or any other particular contract, if
      any,
      the principal of the loan and/or any amount paid by your bank for the Borrower,
      or any related expenses, or in the case of any breaching event as may be set
      out
      in the Loan Contract and/or any other particular contract, if any. In disregard
      to any mortgage or pledge established additionally to ensure the timely
      satisfaction or repayment of any debt owed by the Borrower to your bank under
      the Loan Contract, your bank is also entitled to directly make recourse against
      us for all the amounts of debts, without having to first enforcement of such
      mortgaged or pledged objects. 

     

    
      
        
        

      

      
        243

        
          

        

      

      
        
        

      

    

    We
      agree
      to be absolutely subject to any Claim Notice to be issued by you which is final.
      We further agree to repay and satisfy any and all debts owed by the Borrower
      under the Loan Contract in full within five days upon receipt of such Claim
      Notice for which your bank is not obliged to provide any proof or
      documents. 

    ARTICLE
      3
      This
      Guaranty Letter is independent, continuously effective, irrevocable and
      unconditional, in no event shall be affected by the Loan Contract and/or any
      particular contract, nor shall be affected by any agreement or document
      concluded between the Borrower and any unit. This Guaranty Letter shall remain
      unchanged in the event of any fraudulent act, reorganization, cease to carry
      out
      business, dissolution, liquidation, bankruptcy, etc. on the part of the Borrower
      for whatsoever reasons. The liability to be taken by us as the surety hereunder
      may not be released or exempted by reason of any order received, change in
      our
      financial standing, or any agreement entered into with any unit or individual.
      

    The
      liability to be taken by us as the surety hereunder may not be affected by
      virtue of cease to provide any unused part of loan and/or recovery of the
      extended loan in advance, by your bank in accordance with ARTICLE 13 of the
      Loan
      Contract.

    ARTICLE
      4
      We, the
      undersigned and surety for the Borrower, hereby acknowledge and undertakes
      to be
      bound by and subject to any extension agreement or other supplemental agreements
      in respect of the term and interest rate, etc. of the Loan Contract between
      your
      bank and the Borrower in the course of performance of the same, without
      requiring future notice from your bank. 

    ARTICLE
      5
      The
      suretyship duration hereunder shall be as from the expiry date of each loan
      as
      may be extended under the Loan Contract or as from the same date of the second
      year following the expiry date of the Loan Contract. 

    ARTICLE
      6 WE, THE UNDERSIGNED AND SURETY FOR THE BORROWER, HEREBY REPRESENTS AND
      WARRANTS WITH YOUR BANK:

     

    
      
        
        

      

      
        244

        
          

        

      

      
        
        

      

    

    6.1
      That
      we, a legal person enterprise which is duly registered with appropriate
      authority for industry and commerce (registration no.: ______ ) upon approval
      by
      _________, and which is eligible for standing surety for others, or a
      not-for-profit institution with legal person status which is eligible for
      standing surety for others, agree to provide guarantee with the assets legally
      owned by us or to which we are entitled to disposal right, and undertake to
      perform any of the obligations prescribed herein; 

    6.2
      That
      issuance of this Guaranty Letter is the true representation of us under no
      misrepresentation or duress; 

    6.3
      That
      we are fully authorized or approved by superior authority/the Board of Directors
      as necessitated by issuance of this Guaranty Letter;

    6.4
      That
      any and all financial statements as well as any other documents to be submitted
      by us to your bank are true, legally permitted for which the our legal
      representative or any other person in charge shall be held liable; 

    6.5
      That
      we shall issue a guaranty confirmation upon request of your bank; 

    6.6
      That
      we, the undersigned and surety for the Borrower, agree to be held for the total
      guaranty liability (including equivalent in foreign currency) not more than
      the
      whole sum of our proprietary rights and interests;

    6.7
      That
      we shall notify your bank of any change in the registration particulars with
      authority for industry and commerce, organization structure, operation mode
      or
      financial standing in respect of our company, which change may result in a
      change in our capacity to perform this guaranty letter, without delay;

    6.8
      That
      your bank is hereby authorized to withhold or deduct any such amount therefore
      out of any deposit account of us, until and unless any and all debts, as well
      as
      any other expenses, as long as owed by the Borrower under the Loan Contract,
      and
      we shall be absolutely subject to the aforesaid continuing obligation;

    6.9
      That
      any assign or successor of us shall be bound by all the provisions contained
      herein. No assignment of any of our obligations hereunder may be made by us
      in
      the absence of the written consent from your bank; 

    ARTICLE
      7 This
      Guaranty Letter is governed by the laws of the People’s Republic of China, we
      hereby confirm that any dispute arising out of or in connection with the
      performance hereof shall be settled by such means applicable to dispute
      resolution, as set out in the Loan Contract.

     

    
      
        
        

      

      
        245

        
          

        

      

      
        
        

      

    

    Once
      appropriate public notarization is completed which gives rise to the
      enforceability of the Loan Contract and this Guaranty Letter, we hereby agree
      that any creditor receiving no repayment is entitled to directly apply to any
      People’s Court having appropriate jurisdiction thereover to enforce the Loan
      Contract and/or this Guaranty Letter, for purpose of recovering any due and
      payable debts hereunder.

    ARTICLE
      8 This
      Guaranty Letter is made in three (3) copies, each of the Lender, the Borrower
      as
      well as the surety shall hold one copy thereof. 

    This
      Guaranty Letter shall enter into force upon signature and common seal by the
      surety hereunder.

    

    

    

      
        	
                The
                  Surety (Common Seal):

              	
                Duly
                  Authorized Signatory (Signature): 

              
	 	
                Zhang
                  Yuqing

              
	
                Address:
                  Daqiuzhuang Town, Jinghai County, Tianjin

              	
                Tel:

              
	
                Major
                  Deposit Bank & A/c No.:

              	
                Date:
                  29th
                  Sept. 2005 

              

      

    
      
        
        

      

      
        246

        
          

        

      

      
        
        

      

    

    

    For
      Letter of Guarantee

    

    NO.:
      2005
      daizi No.: 55026

    

    To:
      Tianjin branch Merchant Bank

    We,
      the
      enterprise authorized by                   
      with
      legal person qualification and business license, would like to provide guarantee
      to Renminbi
      (currency) 15,000,000
      Yuan
      under
2005
      daizi No.: 55033
      loan
      contract/ credit extension contract signed on Sept.29,
      2005
      by
Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd.
      (Borrower) and your bank. Whereas, we confirmed that the Irrevocable Letter
      of
      Guarantee issued on Sept.29,
      2005 to
      your
      bank is truthful, and we would take all responsibilities to the articles under
      the letter of guarantee. 

    

    

    

    

    Guarantor
      (common seal): 

    Present
      guarantee. 

    Authorized
      representative: 

    

    Sept.29,
      2005

    

    

    
      
        
        

      

      
        247

        
          

        

      

      
        
        

      

    

    

    IRREVOCABLE
      GUARANTY LETTER

    (Prepared
      in Dec. 2001)

    

    

    In
      Favor
      of China Merchants Bank Tianjin Branch 

    

    WHEREAS,
      your
      bank
      has entered into a Loan Contract with the no. [2005] daizhidi 55033 with Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd. (hereinafter “the Borrower”) on 29th
      Sept.
      2005 whereby a loan in the sum of RMB
      Fifteen Million Yuan only
      is
      extended for a term of
      twelve months.
      

    NOW
      THEREFORE,
      we, the
      undersigned and surety for the Borrower, hereby agree to issue this Guaranty
      Letter with joint and several liabilities for all the debts owed by the Borrower
      to your bank, subject to the terms and conditions set forth
      hereinafter.

    

    ARTICLE
      1
      The
      scope of the suretyship offered by us hereunder covers any all debts created
      under the Loan Contract, including the principal of the loan in the amount
      of
RMB
      Fifteen Million Yuan
      offered
      by your bank to the Borrower in accordance with the Loan Contract, together
      with
      appropriate accrued interest, penalty interest, fine for breach, as well as
      any
      and all other costs and expenses in respect thereof. 

    ARTICLE
      2
      We, the
      undersigned and the surety for the Borrower, hereby acknowledge to be jointly
      and severally liable, whether economically or legally, for any debts owed by
      the
      Borrowers, provided such debts shall be within the surety scope as set out
      in
      ARTICLE 2 hereinabove. Your bank is entitled to directly make recourse against
      us without having to first make recourse or institute actions against the
      Borrower in case the Borrower fails to repay or pay in a timely manner and
      in
      accordance with the Loan Contract and/or any other particular contract, if
      any,
      the principal of the loan and/or any amount paid by your bank for the Borrower,
      or any related expenses, or in the case of any breaching event as may be set
      out
      in the Loan Contract and/or any other particular contract, if any. In disregard
      to any mortgage or pledge established additionally to ensure the timely
      satisfaction or repayment of any debt owed by the Borrower to your bank under
      the Loan Contract, your bank is also entitled to directly make recourse against
      us for all the amounts of debts, without having to first enforcement of such
      mortgaged or pledged objects. 

     

    
      
        
        

      

      
        248

        
          

        

      

      
        
        

      

    

    We
      agree
      to be absolutely subject to any Claim Notice to be issued by you which is final.
      We further agree to repay and satisfy any and all debts owed by the Borrower
      under the Loan Contract in full within five days upon receipt of such Claim
      Notice for which your bank is not obliged to provide any proof or
      documents. 

    ARTICLE
      3
      This
      Guaranty Letter is independent, continuously effective, irrevocable and
      unconditional, in no event shall be affected by the Loan Contract and/or any
      particular contract, nor shall be affected by any agreement or document
      concluded between the Borrower and any unit. This Guaranty Letter shall remain
      unchanged in the event of any fraudulent act, reorganization, cease to carry
      out
      business, dissolution, liquidation, bankruptcy, etc. on the part of the Borrower
      for whatsoever reasons. The liability to be taken by us as the surety hereunder
      may not be released or exempted by reason of any order received, change in
      our
      financial standing, or any agreement entered into with any unit or individual.
      

    The
      liability to be taken by us as the surety hereunder may not be affected by
      virtue of cease to provide any unused part of loan and/or recovery of the
      extended loan in advance, by your bank in accordance with ARTICLE 13 of the Loan
      Contract.

    ARTICLE
      4
      We, the
      undersigned and surety for the Borrower, hereby acknowledge and undertakes
      to be
      bound by and subject to any extension agreement or other supplemental agreements
      in respect of the term and interest rate, etc. of the Loan Contract between
      your
      bank and the Borrower in the course of performance of the same, without
      requiring future notice from your bank. 

    ARTICLE
      5
      The
      suretyship duration hereunder shall be as from the expiry date of each loan
      as
      may be extended under the Loan Contract or as from the same date of the second
      year following the expiry date of the Loan Contract. 

    ARTICLE
      6 WE, THE UNDERSIGNED AND SURETY FOR THE BORROWER, HEREBY REPRESENTS AND
      WARRANTS WITH YOUR BANK:

     

    
      
        
        

      

      
        249

        
          

        

      

      
        
        

      

    

    6.1
      That
      we, a legal person enterprise which is duly registered with appropriate
      authority for industry and commerce (registration no.: ______ ) upon approval
      by
      _________, and which is eligible for standing surety for others, or a
      not-for-profit institution with legal person status which is eligible for
      standing surety for others, agree to provide guarantee with the assets legally
      owned by us or to which we are entitled to disposal right, and undertake to
      perform any of the obligations prescribed herein; 

    6.2
      That
      issuance of this Guaranty Letter is the true representation of us under no
      misrepresentation or duress; 

    6.3
      That
      we are fully authorized or approved by superior authority/the Board of Directors
      as necessitated by issuance of this Guaranty Letter;

    6.4
      That
      any and all financial statements as well as any other documents to be submitted
      by us to your bank are true, legally permitted for which the our legal
      representative or any other person in charge shall be held liable; 

    6.5
      That
      we shall issue a guaranty confirmation upon request of your bank; 

    6.6
      That
      we, the undersigned and surety for the Borrower, agree to be held for the total
      guaranty liability (including equivalent in foreign currency) not more than
      the
      whole sum of our proprietary rights and interests;

    6.7
      That
      we shall notify your bank of any change in the registration particulars with
      authority for industry and commerce, organization structure, operation mode
      or
      financial standing in respect of our company, which change may result in a
      change in our capacity to perform this guaranty letter, without delay;

    6.8
      That
      your bank is hereby authorized to withhold or deduct any such amount therefore
      out of any deposit account of us, until and unless any and all debts, as well
      as
      any other expenses, as long as owed by the Borrower under the Loan Contract,
      and
      we shall be absolutely subject to the aforesaid continuing obligation;

    6.9
      That
      any assign or successor of us shall be bound by all the provisions contained
      herein. No assignment of any of our obligations hereunder may be made by us
      in
      the absence of the written consent from your bank; 

     

    
      
        
        

      

      
        250

        
          

        

      

      
        
        

      

    

    ARTICLE
      7 This
      Guaranty Letter is governed by the laws of the People’s Republic of China, we
      hereby confirm that any dispute arising out of or in connection with the
      performance hereof shall be settled by such means applicable to dispute
      resolution, as set out in the Loan Contract.

    Once
      appropriate public notarization is completed which gives rise to the
      enforceability of the Loan Contract and this Guaranty Letter, we hereby agree
      that any creditor receiving no repayment is entitled to directly apply to any
      People’s Court having appropriate jurisdiction thereover to enforce the Loan
      Contract and/or this Guaranty Letter, for purpose of recovering any due and
      payable debts hereunder.

    ARTICLE
      8 This
      Guaranty Letter is made in three (3) copies, each of the Lender, the Borrower
      as
      well as the surety shall hold one copy thereof. 

    This
      Guaranty Letter shall enter into force upon signature and common seal by the
      surety hereunder.

    

    

    

      
        	
                The
                  Surety (Common Seal):

              	
                Duly
                  Authorized Signatory (Signature): 

              
	
                Tianjin
                  Sheng Da Steel Mill Co.,Ltd.

              	
                Wu
                  Congfeng

              
	
                Address:
                  Daqiuzhuang Town, Jinghai County, Tianjin

              	
                Tel:

              
	
                Major
                  Deposit Bank & A/c No.:

              	
                Date:
                  29th
                  Sept. 2005 

              

      

    

    

    
      
        
        

      

      
        251

        
          

        

      

      
        
        

      

    

    

    For
      Letter of Guarantee

    

    NO.:
      2005
      daizi No.: 55033

    

    To:
      Tianjin branch Merchant Bank

    We,
      the
      enterprise authorized by                        
      with
      legal person qualification and business license, would like to provide guarantee
      to Renminbi
      (currency) 15,000,000
      Yuan
      under
2005
      daizi No.: 55033
      loan
      contract/ credit extension contract signed on Sept.
      29,
      2005
      by
Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd.
      (Borrower) and your bank. Whereas, we confirmed that the Irrevocable Letter
      of
      Guarantee issued on Sept.
      29,
      2005 to
      your
      bank is truthful, and we would take all responsibilities to the articles under
      the letter of guarantee. 

    

    

    

    

    Guarantor
      (common seal): Tianjin Sheng Da Steel Mill Co.,Ltd. 

    Present
      guarantee. 

    Authorized
      representative: Wu Congfeng

    

    Sept.
      29,
      2005

    

    
      
        
        

      

      
        252

        
          

        

      

      
        
        

      

    

    

    

    

    

    

    ACCEPTANCE
      CONTRACT FOR BANK ACCEPTANCE BILL

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    AGRICULTURAL
      BANK OF CHINA

    
      
        
        

      

      
        253

        
          

        

      

      
        
        

      

    

    ACCEPTANCE
      CONTRACT FOR BANK ACCEPTANCE BILL

     

    No.:
      [Jinjinghai] nongyinchengzhi ( )no. 

    

    Applicant
      (Full name): Tianjin Daqiuzhuang Metal Sheet Co., Ltd. 

    Acceptor
      (Full name): Agricultural Bank of China Tianjin Branch Jinghai
      Sub-branch

    

    THIS
      ACCEPTANCE CONTRACT FOR BANK ACCEPTANCE BILL
      (hereinafter “this Contract”) is entered into by and between the Applicant and
      the Acceptor, through mutual friendly negotiation in accordance with relevant
      regulations and rules of the People’s Bank of China, subject to the terms and
      conditions set forth hereinafter. 

    

    ARRTICLE
      1
      The
      Acceptor hereby agrees to accept and honor the acceptance bills with the
      following particulars (See the Acceptance List of Bank Acceptance Bill in the
      case of more than one acceptance transactions):

    

      
        	
                Full
                  name of the
                  Drawer: Tianjin Daqiuzhuang Metal Sheet Co., Ltd.

              	
                Full
                  name of the payee: Tianjin Hengying Trade Co., Ltd.

              
	
                A/c
                  no.: 071201040006858

              	
                A/c
                  no.:2213001000264625 

              
	
                Paying
                  bank: Agricultural
                  Bank of China Daqiuzhuang Sub-branch

              	
                Deposit
                  bank: China Construction Bank Jinghai Sub-branch

              
	
                Swift
                  code: 39724

              	
                Swift
                  code:___________________________________

              
	
                Bill
                  no.: 00351843

              	
                Bill
                  amount(amount in words): Four Million Yuan only

              
	
                Issuance
                  date:2nd
                  Dec. 2005

              	
                Maturity
                  date: 2nd
                  June 2006

              

      

    

     

    ARTICLE
      2 The
      Applicant shall, before the scheduled maturity date of any bill and upon no
      conditions, deposit the sufficient amount to the Acceptor for payment of such
      payable bill amount (hereinafter “Bill Amount”). Upon the maturity date of any
      bank bill, the Acceptor is entitled to withhold or deduct the Bill Amount out
      of
      any bank account of the Applicant. 

    ARTICLE
      3 Appropriate
      processing fee at the rate of 0.5%
      of the
      face value of any bill shall be for the account of the Applicant in a lump
      sum
      at the time the Acceptor agrees to accept such bill. 

     

    
      
        
        

      

      
        254

        
          

        

      

      
        
        

      

    

    ARTICLE
      4 The
      Applicant shall, at the acceptance date, deposit a security deposit in the
      sum
      of RMB
      50% of
      the
      acceptance amount in an account named by the Acceptor, which security deposit
      may not be appropriated before clear settlement of Bill Amount. The Acceptor
      is
      entitled to apply the security deposit to pay any deficiency in paying the
      Bill
      Amount in case the Applicant fails to supply sufficient money for such bill.
      

    ARTICLE
      5 THE APPLICANT HEREBY UNDERTAKES THAT:

    5.1
      the
      bank acceptance bill is made based on the true and legal commodity transaction
      between the Drawer and the payee. 

    5.2
      no
      dispute between the Drawer and the bill holder may constitute the defense in
      failure to discharge the debts hereunder, and the Bill Amount will be deposited
      to the Acceptor prior to the scheduled maturity date thereof. 

    5.3
      it
      shall, upon request of the Acceptor, provide true balance sheet, profit and
      loss
      statement, cash flow sheet, all accounts numbers, account balances,
      etc.

    5.4
      it
      shall repay and pay to the Acceptor the amount together with accrued interest
      thereon as a result of payment of the Bill Amount by the Acceptor for the
      Drawer. 

    5.5
      it
      shall notify the Acceptor of any change of legal representative, increase or
      decrease in the registered capital, change of business premises, change in
      operation and management mode or shareholding structure, during the whole life
      of this Agreement. 

    5.6
      it
      shall be held liable for any other obligations as may be prescribed by related
      laws and regulations. 

     

     

    ARTICLE
      6 RIGHTS AND OBLIGATIONS OF ACCEPTOR

     

    6.1
      The
      Acceptor is obliged to unconditionally pay the Bill Amount to appropriate bill
      holder prior to the maturity date of the bill, upon presentation whether
      sufficient amount for such Bill Amount is made available by the Applicant,
      except as dishonor is allowed by related laws and regulations. 

    6.2
      The
      Acceptor is entitled to charge a interest at the rate of 0.5%
      of the
      money paid by the Acceptor for the Applicant, and to withhold or deduct directly
      such amount together with accrued interest out of any deposit account opened
      by
      the Applicant with the Acceptor. 

     

    
      
        
        

      

      
        255

        
          

        

      

      
        
        

      

    

    6.3
      The
      Acceptor shall have the right to require the Applicant to deposit the Bill
      Amount in advance or to take other appropriate actions, in the event of any
      swindling and other material changes that may impair the interest of the
      Acceptor, or in the event of breach by the Applicant of any of the warranties
      set out in ARTICLE 5 hereof. 

    ARTICLE
      7
      The bank
      acceptance bill hereunder is secured or guaranteed by
      a mortgage
      for
      which a mortgage contract is to be entered into. 

    ARTICLE
      8
      This Contract shall enter into force upon signature or seal by both parties
      hereto. 

    ARTICLE
      9
      Any
      dispute arising out of or in connection with the performance of this Contract
      shall be settled by friendly negotiation between both parties; and shall be
      subject to the jurisdiction of the court at the place where the Acceptor resides
      in the case of resorting to action for purpose of settlement of any such
      dispute. 

     

    ARTICLE
      10 MISCELLANEOUS 

     

      
        

      

    

    
       

      
        

      

    
      
        

      

    
      
        

      

    

    

    ARTICLE
      11
      This
      Contract is made in duplicate, being equally authentic, and each party,
      including the guarantor, if appropriate, holds one copy thereof. 

    ARTICLE
      12 REMINDER

    The
      Acceptor has reminded the Applicant to have a compete and accurate understanding
      of the provisions contained herein, and upon request of the Applicant, make
      appropriate explanation of related provisions. The parties hereto acknowledge
      that their respective understanding regarding the implication of provisions
      hereof coincides with each. 

    

    
      
        
        

      

      
        256

        
          

        

      

      
        
        

      

    

    

    

    

      

      
        	
                The
                  Applicant (Seal):

              	
                The
                  Acceptor (Seal):

              
	 	 
	
                Legal
                  representative or

              	
                Legal
                  representative or

              
	
                Duly
                  authorized representative

              	
                Duly
                  authorized representative

              

      

      

      
         

        
          

        

      

      

      

      
        	 	
                Dated:
                  DD MM YY

              
	 	
                Place:
                  Building of the
                  Acceptor

              
	 	
                Jingwen
                  Road Jinghai County

              

      

    
      
        
        

      

      
        257

        
          

        

      

      
        
        

      

    

    

    

    

    ACCEPTANCE
      CONTRACT FOR BANK ACCEPTANCE BILL

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    AGRICULTURAL
      BANK OF CHINA

    
      
        
        

      

      
        258

        
          

        

      

      
        
        

      

    

    ACCEPTANCE
      CONTRACT FOR BANK ACCEPTANCE BILL

     

    No.:
      [Jinjinghai] nongyinchengzhi ( )no. 

    

    Applicant
      (Full name): Tianjin Daqiuzhuang Metal Sheet Co., Ltd. 

    Acceptor
      (Full name): Agricultural Bank of China Tianjin Branch Jinghai
      Sub-branch

    

    THIS
      ACCEPTANCE CONTRACT FOR BANK ACCEPTANCE BILL
      (hereinafter “this Contract”) is entered into by and between the Applicant and
      the Acceptor, through mutual friendly negotiation in accordance with relevant
      regulations and rules of the People’s Bank of China, subject to the terms and
      conditions set forth hereinafter. 

    

    ARRTICLE
      1
      The
      Acceptor hereby agrees to accept and honor the acceptance bills with the
      following particulars (See the Acceptance List of Bank Acceptance Bill in the
      case of more than one acceptance transactions):

    

      
        	
                Full
                  name of the
                  Drawer: Tianjin Daqiuzhuang Metal Sheet Co., Ltd. 

              	Full
                name of the payee: Tianjin Hengying Trade Co., Ltd.
	
                A/c
                  no.: 071201040006858

              	
                A/c
                  no.:2213001000264625 

              
	
                Paying
                  bank: Agricultural
                  Bank of China Daqiuzhuang Sub-branch

              	
                Deposit
                  bank: China Construction Bank Jinghai Sub-branch

              
	
                Swift
                  code: 39724

              	
                Swift
                  code:___________________________________

              
	
                Bill
                  no.: 0031589 

              	
                Bill
                  amount(amount in words): Three Million Yuan only

              
	
                Issuance
                  date 25th
                  Oct. 2005

              	
                Maturity
                  date:25th
                  April 2006

              

      

    

    Amount
      of
      security deposit(amount in words): One
      Million and Five Hundred Thousand Yuan only 

    ARTICLE
      2 The
      Applicant shall, before the scheduled maturity date of any bill and upon no
      conditions, deposit the sufficient amount to the Acceptor for payment of such
      payable bill amount (hereinafter “Bill Amount”). Upon the maturity date of any
      bank bill, the Acceptor is entitled to withhold or deduct the Bill Amount out
      of
      any bank account of the Applicant. 

    ARTICLE
      3 Appropriate
      processing fee at the rate of 0.5%
      of the
      face value of any bill shall be for the account of the Applicant in a lump
      sum
      at the time the Acceptor agrees to accept such bill. 

     

    
      
        
        

      

      
        259

        
          

        

      

      
        
        

      

    

    ARTICLE
      4 The
      Applicant shall, at the acceptance date, deposit a security deposit in the
      sum
      of RMB
      50% of
      the
      acceptance amount in an account named by the Acceptor, which security deposit
      may not be appropriated before clear settlement of Bill Amount. The Acceptor
      is
      entitled to apply the security deposit to pay any deficiency in paying the
      Bill
      Amount in case the Applicant fails to supply sufficient money for such bill.
      

    ARTICLE
      5 THE APPLICANT HEREBY UNDERTAKES THAT:

    5.1
      the
      bank acceptance bill is made based on the true and legal commodity transaction
      between the Drawer and the payee. 

    5.2
      no
      dispute between the Drawer and the bill holder may constitute the defense in
      failure to discharge the debts hereunder, and the Bill Amount will be deposited
      to the Acceptor prior to the scheduled maturity date thereof. 

    5.3
      it
      shall, upon request of the Acceptor, provide true balance sheet, profit and
      loss
      statement, cash flow sheet, all accounts numbers, account balances,
      etc.

    5.4
      it
      shall repay and pay to the Acceptor the amount together with accrued interest
      thereon as a result of payment of the Bill Amount by the Acceptor for the
      Drawer. 

    5.5
      it
      shall notify the Acceptor of any change of legal representative, increase or
      decrease in the registered capital, change of business premises, change in
      operation and management mode or shareholding structure, during the whole life
      of this Agreement. 

    5.6
      it
      shall be held liable for any other obligations as may be prescribed by related
      laws and regulations. 

     

     

    ARTICLE
      6 RIGHTS AND OBLIGATIONS OF ACCEPTOR

     

    6.1
      The
      Acceptor is obliged to unconditionally pay the Bill Amount to appropriate bill
      holder prior to the maturity date of the bill, upon presentation whether
      sufficient amount for such Bill Amount is made available by the Applicant,
      except as dishonor is allowed by related laws and regulations. 

    6.2
      The
      Acceptor is entitled to charge a interest at the rate of 0.5%
      of the
      money paid by the Acceptor for the Applicant, and to withhold or deduct directly
      such amount together with accrued interest out of any deposit account opened
      by
      the Applicant with the Acceptor. 

     

    
      
        
        

      

      
        260

        
          

        

      

      
        
        

      

    

    6.3
      The
      Acceptor shall have the right to require the Applicant to deposit the Bill
      Amount in advance or to take other appropriate actions, in the event of any
      swindling and other material changes that may impair the interest of the
      Acceptor, or in the event of breach by the Applicant of any of the warranties
      set out in ARTICLE 5 hereof. 

    ARTICLE
      7
      The bank
      acceptance bill hereunder is secured or guaranteed by
      a mortgage
      for
      which a mortgage contract is to be entered into. 

    ARTICLE
      8
      This Contract shall enter into force upon signature or seal by both parties
      hereto. 

    ARTICLE
      9
      Any
      dispute arising out of or in connection with the performance of this Contract
      shall be settled by friendly negotiation between both parties; and shall be
      subject to the jurisdiction of the court at the place where the Acceptor resides
      in the case of resorting to action for purpose of settlement of any such
      dispute. 

     

    ARTICLE
      10 MISCELLANEOUS 

     

      
        

      

    

    

    
      
        

      

    
      
        

      

    
      
        

      

    ARTICLE
      11
      This
      Contract is made in duplicate, being equally authentic, and each party,
      including the guarantor, if appropriate, holds one copy thereof. 

    ARTICLE
      12 REMINDER

    The
      Acceptor has reminded the Applicant to have a compete and accurate understanding
      of the provisions contained herein, and upon request of the Applicant, make
      appropriate explanation of related provisions. The parties hereto acknowledge
      that their respective understanding regarding the implication of provisions
      hereof coincides with each. 

    

    

    
      
        
        

      

      
        261

        
          

        

      

      
        
        

      

    

    

    

      

      
        	
                The
                  Applicant (Seal):

              	
                The
                  Acceptor (Seal):

              
	 	 
	
                Legal
                  representative or

              	
                Legal
                  representative or

              
	
                Duly
                  authorized representative

              	
                Duly
                  authorized representative

              

      

      

      
         

        
          

        

      

      

      

      
        	 	
                Dated:
                  DD MM YY

              
	 	
                Place:
                  Agricultural Bank of China Tianjin Branch Jinghai
                  Sub-branch

              

      

    

    

    
      
        
        

      

      
        262

        
          

        

      

      
        
        

      

    

    

    

    

    

    

    ACCEPTANCE
      CONTRACT FOR BANK ACCEPTANCE BILL

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    AGRICULTURAL
      BANK OF CHINA

    
      
        
        

      

      
        263

        
          

        

      

      
        
        

      

    

    ACCEPTANCE
      CONTRACT FOR BANK ACCEPTANCE BILL

    No.:
      [Jinjinghai] nongyinchengzhi (2005)no. 122012005000025

    

    Applicant
      (Full name): Tianjin Daqiuzhuang Metal Sheet Co., Ltd. 

    Acceptor
      (Full name): Agricultural Bank of China Tianjin Branch Daqiuzhuang
      Sub-branch

    

    THIS
      ACCEPTANCE CONTRACT FOR BANK ACCEPTANCE BILL
      (hereinafter “this Contract”) is entered into by and between the Applicant and
      the Acceptor, through mutual friendly negotiation in accordance with relevant
      regulations and rules of the People’s Bank of China, subject to the terms and
      conditions set forth hereinafter. 

    

    ARRTICLE
      1
      The
      Acceptor hereby agrees to accept and honor the acceptance bills with the
      following particulars (See the Acceptance List of Bank Acceptance Bill in the
      case of more than one acceptance transactions):

    

      
        	
                Full
                  name of the Drawer: Tianjin Daqiuzhuang Metal Sheet Co., Ltd.
                  

              	
                Full
                  name of the payee: Tianjin Hengying Trade Co., Ltd.

              
	
                A/c
                  no.: 071201040006858
                  

              	
                A/c
                  no.:2213001000264625 

              
	
                Paying
                  bank: Agricultural Bank of China Daqiuzhuang Sub-branch

              	
                Deposit
                  bank: China Construction Bank Jinghai Sub-branch

              
	
                Swift
                  code: 39724

              	
                Swift
                  code:___________________________________

              
	
                Bill
                  no.:

              	
                Bill
                  amount(amount in words): Five
                  Million Yuan only

              
	
                Issuance
                  date:
                  11th
                  July 2005

              	
                Maturity
                  date: 7th
                  Janu. 2006

              

      

    

    Amount
      of
      security deposit(amount in words): Two
      Million and Five Hundred Thousand Yuan only 

    ARTICLE
      2 The
      Applicant shall, before the scheduled maturity date of any bill and upon no
      conditions, deposit the sufficient amount to the Acceptor for payment of such
      payable bill amount (hereinafter “Bill Amount”). Upon the maturity date of any
      bank bill, the Acceptor is entitled to withhold or deduct the Bill Amount out
      of
      any bank account of the Applicant. 

    ARTICLE
      3 Appropriate
      processing fee at the rate of 0.5%
      of the
      face value of any bill shall be for the account of the Applicant in a lump
      sum
      at the time the Acceptor agrees to accept such bill. 

    ARTICLE
      4 The
      Applicant shall, at the acceptance date, deposit a security deposit in the
      sum
      of RMB
      50% of
      the
      acceptance amount in an account named by the Acceptor, which security deposit
      may not be appropriated before clear settlement of Bill Amount. The Acceptor
      is
      entitled to apply the security deposit to pay any deficiency in paying the
      Bill
      Amount in case the Applicant fails to supply sufficient money for such bill.
      

     

    
      
        
        

      

      
        264

        
          

        

      

      
        
        

      

    

    ARTICLE
      5 THE APPLICANT HEREBY UNDERTAKES THAT:

    5.1
      the
      bank acceptance bill is made based on the true and legal commodity transaction
      between the Drawer and the payee. 

    5.2
      no
      dispute between the Drawer and the bill holder may constitute the defense in
      failure to discharge the debts hereunder, and the Bill Amount will be deposited
      to the Acceptor prior to the scheduled maturity date thereof. 

    5.3
      it
      shall, upon request of the Acceptor, provide true balance sheet, profit and
      loss
      statement, cash flow sheet, all accounts numbers, account balances,
      etc.

    5.4
      it
      shall repay and pay to the Acceptor the amount together with accrued interest
      thereon as a result of payment of the Bill Amount by the Acceptor for the
      Drawer. 

    5.5
      it
      shall notify the Acceptor of any change of legal representative, increase or
      decrease in the registered capital, change of business premises, change in
      operation and management mode or shareholding structure, during the whole life
      of this Agreement. 

    5.6
      it
      shall be held liable for any other obligations as may be prescribed by related
      laws and regulations. 

     

     

    ARTICLE
      6 RIGHTS AND OBLIGATIONS OF ACCEPTOR

     

    6.1
      The
      Acceptor is obliged to unconditionally pay the Bill Amount to appropriate bill
      holder prior to the maturity date of the bill, upon presentation whether
      sufficient amount for such Bill Amount is made available by the Applicant,
      except as dishonor is allowed by related laws and regulations. 

    6.2
      The
      Acceptor is entitled to charge a interest at the rate of 0.5%
      of the
      money paid by the Acceptor for the Applicant, and to withhold or deduct directly
      such amount together with accrued interest out of any deposit account opened
      by
      the Applicant with the Acceptor. 

    6.3
      The
      Acceptor shall have the right to require the Applicant to deposit the Bill
      Amount in advance or to take other appropriate actions, in the event of any
      swindling and other material changes that may impair the interest of the
      Acceptor, or in the event of breach by the Applicant of any of the warranties
      set out in ARTICLE 5 hereof. 

     

    
      
        
        

      

      
        265

        
          

        

      

      
        
        

      

    

    ARTICLE
      7
      The bank
      acceptance bill hereunder is secured or guaranteed by
      a mortgage
      for
      which a mortgage contract is to be entered into. 

    ARTICLE
      8
      This Contract shall enter into force upon signature or seal by both parties
      hereto. 

    ARTICLE
      9
      Any
      dispute arising out of or in connection with the performance of this Contract
      shall be settled by friendly negotiation between both parties; and shall be
      subject to the jurisdiction of the court at the place where the Acceptor resides
      in the case of resorting to action for purpose of settlement of any such
      dispute. 

     

    ARTICLE
      10 MISCELLANEOUS 

     

    
      
        

      

    
      
        

      

    
      
        

      

    
      
        

      

    ARTICLE
      11
      This
      Contract is made in triplicate, being equally authentic, and each party,
      including the guarantor, if appropriate, holds one copy thereof. 

    ARTICLE
      12 REMINDER

    The
      Acceptor has reminded the Applicant to have a compete and accurate understanding
      of the provisions contained herein, and upon request of the Applicant, make
      appropriate explanation of related provisions. The parties hereto acknowledge
      that their respective understanding regarding the implication of provisions
      hereof coincides with each. 

    

    

    
      
        
        

      

      
        266

        
          

        

      

      
        
        

      

    

    

    

      

      
        	
                The
                  Applicant (Seal):

              	
                The
                  Acceptor (Seal):

              
	 	 
	
                Legal
                  representative or

              	
                Legal
                  representative or

              
	
                Duly
                  authorized representative

              	
                Duly
                  authorized representative

              

      

       

      
 

      
        
          

        

      

      

      

      
        	 	
                Dated:
                  DD MM YY

              
	 	
                Place:
                  Agricultural Bank of China Tianjin Branch Daqiuzhuang
                  Sub-branch

              

      

    

    
      
        
        

      

      
        267

        
          

        

      

      
        
        

      

    

    

    

    Guarantee
      Contract

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Agricultural
      Bank of China 

    

    

    
      
        
        

      

      
        268

        
          

        

      

      
        
        

      

    

    

    

    Guarantee
      Contract

    

    No.
      (JJH)NYBZ(2005) 12901200500005008

    

    Creditor
      (full name): Agricultural Bank of China Tianjin Jinghai Sub-Branch 

    Guarantor
      (full name): 1) Tianjin
      Sheng Da Steel Mill Co.,Ltd. 

    2)
      ________________________________

    3)_________________________________

    

    The
      Guarantor is willing to guarantee the debt between Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd. (hereinafter
      referred to as the Debtor) and the Creditor under the Acceptance
      Contract for Banker’s Acceptance Bill
      (hereinafter referred to as the Master Contract), No. JJHNYJZ
      (2005) 12201200500002510,
      to
      ensure that the Master Contract by and between the Debtor and the Creditor
      can
      be fulfilled in deed. The Contract is entered into through negotiation in
      accordance with pertinent laws and regulations of the State. 

    

    Article
      1
      Kind of Primary Creditor’s Rights Guaranteed and Sum of the
      Principal

    

    The
      primary creditor’s right guaranteed is of banker’s
      acceptance bill,
      covering five
      million yuan
      of the
      principal. 

    

    Article
      2
      Scope of Guarantee 

    

    The
      scope
      of guarantee includes the principal, interests, penalty interests, compound
      interests, penalty and damages of the debt under the Master Contract, and
      litigation cost, attorney fee, guaranty disposal fee, transfer fee and other
      costs incurred by the Creditor for realization of its creditor’s right.

    

    Article
      3
      Mode of Guarantee 

    

    The
      guarantee mode hereunder shall be of joint and several liability. In case of
      several guarantors hereunder, each guarantor shall assume the joint and several
      liability to the Creditor. 

    

    Article
      4
      Term of Guarantee 

    

    4-1
      The
      guarantee term of the Guarantor shall be two years as of the date when the
      period of debt performance of the Debtor expires according to the stipulations
      of the Master Contract. 

    4-2
      The
      guarantee term under the Banker’s Acceptance Bill, L/C Issuance Finance and
      guarantee letter shall be two years as of the date when the Creditor pays the
      sum in advance. 

    4-3
      The
      guarantee term under commercial draft discount shall be two years as of the
      maturity date of the discount note. 

    4-4
      Where
      the Creditor and the Debtor negotiate an extension agreement concerning the
      term
      of debt performance under the Master Contract, the Guarantor shall continue
      to
      assume the guarantee liability. The guarantee term shall be two years as of
      the
      date when the period of debt performance agreed in the extension agreement
      expires. 

     

    
      
        
        

      

      
        269

        
          

        

      

      
        
        

      

    

    4-5
      Where
      the Creditor declares that the debt under the Master Contract is mature in
      advance due to occurrence circumstances stipulated in laws, regulations or
      the
      Master Contract, the guarantee term shall be two years as of the prior maturity
      date of the debt under the Master Contract, which is determined by the Creditor.
      

    

    Article
      5
      Guarantor’s Undertakings 

    

    5-1
      The
      Guarantor shall provide true, complete and effective financial statements and
      other relevant materials and information. 

    5-2
      The
      Guarantor will be willing to fulfill its liability of guarantee if the Debtor
      fails to discharge the debt according to the Master Contract. 

    5-3
      The
      Creditor shall have the right to deduct corresponding sum from any account
      of
      the Guarantor if the Guarantor fails to fulfill its guarantee liability
      according to the Contract. 

    5-4
      In
      case of any of the following circumstances, the Guarantor shall within 5 days
      thereafter notify the Creditor in writing: 

    1)
      the
      Guarantor changes administrative relationship or senior management, amends
      its
      articles of association and adjusts its organization structure; 

    2)
      the
      Guarantor stops production, closes business, cancels registration or is revoked
      business license; 

    3)
      the
      Guarantor’s finance deteriorates, or production and operation are in severe
      difficulty or the Guarantor is involved in significant litigation or
      arbitration; 

    4)
      the
      Guarantor changes name, domicile, legal representative, contact method and
      so
      on; or 

    5)
      the
      Guarantor has other circumstances which will not help the Creditor realize
      its
      creditor’s right. 

    5-5
      The
      Guarantor shall notify the Creditor in writing 15 days in advance and obtain
      written consent of the Creditor if the Guarantor intends to conduct the
      following behaviors: 

    1)
      the
      Guarantor changes capital structure or operation system, including, but not
      limited to, contract, lease, joint stock reconstruction, joint management,
      merger, acquirement, division, joint venture, asset transfer and application
      for
      business stoppage and rectification, dissolution or bankruptcy; 

    2)
      the
      Guarantor provides guarantee to the debt of a third person or mortgage, pawn
      or
      guarantee its main assets for debt of it or a third person, which may affect
      it
      performance of the guarantee liability hereunder. 

    5-6
      Where
      the Debtor guarantees with substantial objects, the Guarantor will perform
      the
      guarantee liability as to all debts guaranteed, prior to guarantee of
      substantial objects. 

    

    Article
      6
      Liability for Breach of Agreement 

    

    After
      effectiveness of the Contract, both the Creditor and the Guarantor shall perform
      their obligations hereunder. Either party that fails to do so shall be liable
      for corresponding liabilities for breach of agreement and compensating the
      other
      for losses therefrom.

    

    
      
        
        

      

      
        270

        
          

        

      

      
        
        

      

    

    Article
      7
      Settlement of Disputes 

    

    Any
      dispute arising from performance of the Contract may be settled through
      negotiation, or by the following first
      means:

    

    
      	
              13)

            	
              litigation.
                The dispute shall be governed by the People’s Court at the place where the
                Creditor is located; 

            

    

    
      	
              14)

            	
              arbitration.
                The dispute shall be submitted to ____________________ (full name
                of the
                arbitration institution) for arbitration according to its rules.
                

            

    

    

    The
      Contract shall be performed continually during the period of litigation or
      arbitration, except for those in dispute. 

    

    Article
      8
      Miscellaneous

    

    8-1
      The
      Guarantor has received and read the Master Contract guaranteed. 

     

    

    

    Article
      9
      Effectiveness 

    

    The
      Contract shall be in force after signed or sealed by the Parties hereto.

    

    Article
      10 The Contract shall be in three copies with equal force, one of which shall
      be
      kept by either party hereto, one by Tianjin
      Daqiuzhuang Metal Sheet Co., Ltd.
      

    

    Article
      11 Notice 

    

    The
      Creditor has reminded the Guarantor to understand comprehensively and exactly
      the terms and conditions of the Contract and explained for corresponding terms
      and conditions hereof at the requirements of the Guarantor. The Parties to
      the
      Contract have consistent understanding of the meanings of the Contract.

    

    

    

    The
      Creditor (signature and seal): Agricultural
      Bank of China Tianjin Jinghai Sub-Branch 

    Principal
      or agent: Liu
      Tiegang 

    

    The
      Guarantor (signature and seal):
      Tianjin
      Sheng Da Steel Mill Co.,Ltd.

    Legal
      representative or agent: Wu
      Congfeng

     

    
      
        
        

      

      
        271

        
          

        

      

      
        
        

      

    

    
 

    The
      Guarantor (signature and seal): 

    Legal
      representative or agent:

    

    The
      Guarantor (signature and seal): 

    Legal
      representative or agent:

    

    

    

    Date
      of
      conclusion: July 11, 2005 

    Place
      of
      conclusion: Agricultural Bank of China Tianjin Daqiuzhuang
      Sub-Branch

    

    

    
      
        
        

      

      
        272

        
          

        

      

      
        
        

      

    

    COMMERCIAL
      BILL ACCEPTANCE AGREEMENT

    

    No.:
      Jinzhongyinjingxinzhi [2005] 003-3

    

    

      
        	
                Full
                  name of the
                  Applicant:
                  Tianjin Daqiuzhuang Metal Sheet Co., Ltd.. 

              	
                Full
                  name of the payee: Tianjin
                  Hengying Trade Co., Ltd.

              
	
                Deposit
                  bank:
                  Bank of China Tianjin Branch Jinghai Sub-branch

              	
                Deposit
                  bank: China
                  Construction Bank of China Jinghai Branch

              
	
                A/c
                  no.:
                  07546008093001

              	
                A/c
                  no.:2213001000264625 

              
	
                Bill
                  no.: 00351843

              	
                Bill
                  amount(amount in words): Four
                  Million Yuan only

              
	
                Issuance
                  date:
                  17th
                  Nov, 2005

              	
                Maturity
                  date:15th
                  May
                  2006

              
	
                Legal
                  representative:
                  Yu
                  Zuosheng

              	
                Tel:
                  28899317

              
	
                Address:
                  Daqiuzhuang Town Jinghai Country Tianjin

              	 
	
                Paying
                  bank: Bank
                  of China Tianjin Branch Jinghai Sub-branch

              	
                Tel:28946421

              
	
                Legal
                  representative(or authorized agent):
                  Tang Mansuo

              	 
	
                Address:
                  No.
                  31 Shengli Road Jinghai Town Jinghai County, Tianjin 

              	 
	
                Deposit
                  bank: China
                  Construction Bank Jinghai Sub-branch

              	 

      

    

    THIS
      COMMERCIAL BILL ACCEPTANCE AGREEMENT
      (hereinafter “this Contract”) is made and entered into by and between the
      Applicant and the Accepting 

    Bank,
      through mutual friendly negotiation on issues in respect of acceptance of
      acceptance bills (hereinafter “Bills”) upon application of the acceptance
      applicant, subject to the terms and conditions set out hereinafter.

    

    ARTICLE
      1
      The Applicant has, based on the transaction contract, no.
      20051021,
      issue
one
      bill
      in
      the sum of (amount in words) RMB
      Four Million Yuan only or (amount in figure) RMB 4,000,000.00
      Yuan.
      

    ARTICLE
      2
      The acceptance applicant (hereinafter “the Applicant”) agrees to comply with the
      relevant provisions set out in the Law of the People’s Republic of China on
      Negotiable Instruments, the Procedures for Payment and Settlement, as well
      as
      the terms set forth below:

     

    
      
        
        

      

      
        273

        
          

        

      

      
        
        

      

    

    2.1
      The
      Applicant deposits a security deposit in the sum of 50% of the face value of
      the
      Bill at the Accepting Bank, which security deposit account shall be managed
      in a
      special manner; 

    2.2
      The
      Applicant has deposited the bill amount to the Accepting Bank prior to the
      maturity date thereof; 

    2.3
      The
      Applicant shall pay a processing fee at the rate of 0.5% of the face value
      of
      the Bill in the lump sum at the acceptance; 

    2.4
      Any
      dispute that may arise out of or in connection with this Contract shall be
      settled by related parties in question, in no event shall such dispute affect
      the rights and obligations of either party hereto, the Applicant shall deposit
      the bill amount in full and a timely manner, to the Accepting Bank as required
      by 2.2 hereinabove; 

    2.5
      In
      case the Applicant fails to supply sufficient amount for the bill amount at
      the
      maturity date of such bill, the Accepting Bank shall deal with the deficiency
      between the bill amount and the money actually provided by the Applicant as
      the
      overdue loan on which a penalty interest may be charged; 

    2.6
      The
      Applicant shall, as required by the Accepting Bank, open appropriate settlement
      account in national or foreign currency with the Accepting Bank for purpose
      of
      conducting business transaction. In case the Applicant fails to supply
      sufficient amount for any bill amount at the maturity date, the Accepting Bank
      may, in its sole discretion and opinion, withhold or deduct out of any account
      of the Applicant, any amount for appropriate deficiency of amount together
      with
      accrued interest and commission; 

    2.7
      The
      Applicant shall be held liable for any and all losses incurred by the Accepting
      Bank as a result of failure by the Applicant to perform any of its obligations
      under this Contract or the Commitment. Any and all costs and expenses incurred
      in respect of performance of this Contract shall be charged to the account
      of
      the Applicant by related parties.

    ARTICLE
      3
      ACCEPTANCE GUARANTY

    The
      acceptance amount under this Agreement, including accrued interest thereon,
      commission as well as any other open parts, is secured
      and guaranteed by the land and properties legally owned by the
      Applicant,
      In case
      the Applicant fails to deposit sufficient money to the Accepting Bank prior
      to
      the maturity date or falls in breach of other covenants, the Applicant shall
      assume appropriate security or guaranty obligations as agreed herein, and the
      Accepting Bank is entitled to withhold or deduct any amount out of the surety’s
      account or other funds of the Applicant for making payment of such bill, or
      to
      dispose of the property in case such property is provided as a guaranty
      therefore. 

     

    
      
        
        

      

      
        274

        
          

        

      

      
        
        

      

    

    ARTICLE
      4 REPRESENTATIONS AND WARRANTIES OF APPLICANT

    4.1
      The
      Applicant hereby represents that: 

    4.1.2
      it
      is a legal person enterprise duly established under the laws of the People’s
      Republic of China, with necessary powers and rights to carry out related
      business operation, and has legally permitted right to dispose of the assets
      under the management of the same; 

    4.1.2
      it
      has been fully and legally authorized to execute, deliver and perform this
      Agreement; 

    4.1.3
      it
      undertakes that all the materials to be provided to the Accepting Bank are
      accurate, truthful, complete and valid. 

    4.2
      The
      Applicant hereby warrants and undertakes that: 

    4.2.1
      it
      is in compliance with the relevant provisions set out in the Law
      of the People’s Republic of China on Negotiable Instruments,
      the
Procedures
      for Payment and Settlement,
      as well
      as the terms set forth herein; 

    4.2.2
      the
      bill is issued based on the legal transaction and it shall be responsible for
      the legality of such transaction; 

    4.2.3
      it
      shall refrain from making decrease in the registered capital by any means or
      in
      any form; 

    4.2.4
      any
      change in system, including division, consolidation, reorganization, stock
      reconstruction, etc. or deregistration, dissolution, cease to carry out business
      or bankruptcy, that may occur to the Applicant shall be subject to prior notice
      to the Accepting Bank, otherwise, none of the aforesaid acts may be effective
      or
      valid; 

    4.2.5
      the
      change of affiliation, adjustment to departments, material personnel change,
      as
      well as modification of any joint venture contract and/or Articles of
      Association shall be notified to the Accepting Bank promptly; 

    4.2.6
      the
      Accepting Bank shall be notified of any dispute between or among the parties
      hereto which dispute may affect the legitimate rights and interests of the
      Accepting Bank, and it shall pay the acceptance amount as scheduled;

    4.2.7
      no
      tolerance, grace period, or suspension to enforce any of the rights and
      interests or powers of the Accepting Bank hereunder, as may be granted by the
      Accepting Bank to the Applicant in respect of any breach or delay on the part
      of
      the latter may impair, affect, or limit any rights and interests, or powers
      of
      the Accepting Bank in accordance with this Agreement and related laws and
      regulations, nor shall be construed as the waiver by the Accepting Bank of
      any
      right and interest hereunder;

     

    
      
        
        

      

      
        275

        
          

        

      

      
        
        

      

    

    4.2.8
      this Agreement shall automatically cease to be in force upon clear settlement
      of
      acceptance bills. 

    The
      representations and warranties made by the Applicant hereinabove shall be deemed
      a restatement by the same in any possible modification of, supplement to or
      revision of this Agreement. 

    ARTICLE
      5
      APPENDIX TO AGREEMENT

    The
      following documents shall form the integral parts of this Agreement and are
      of
      the same legal force as this Agreement:

    5.1
      Commercial Bill Acceptance Application Form; 

    5.2
      Pledge Contract; 

    5.3
      Security or Guaranty Contact; 

    5.4
      Various instruments and/or documents, etc. in respect of pledge and/or mortgage;
      

    ARTICLE
      6
      The Agreement is governed by the laws of the People’s Republic of China. Any
      dispute arising out of or in connection with the performance of this Agreement
      shall be settled by friendly negotiation between both Parties, in case of no
      successful settlement therefrom, either party may elect to lodge an action
      with
      the people’s court in accordance with law. 

    ARTICLE
      7
      This Agreement shall enter into force upon signature and common seal by legal
      representatives or duly authorized agents of both parties. 

    

    

      
        	
                Acceptance
                  Applicant (Common Seal):

              	
                Accepting
                  Bank (Common Seal): 

              
	 	 
	
                Legal
                  representative or

              	
                Legal
                  representative or

              
	
                Duly
                  authorized representative

              	
                Duly
                  authorized representative

              

      

    

     

    Dated:
      17th
      Nov.
      2005                                 

    
      
        
        

      

      
        276

        
          

        

      

      
        
        

      

    

    ATTACHMENT
      5 

    PARTICULARS
      OF BANK ACCEPTANCE BILL

    

    Bill
      Code: Bill Number:

    
      	
              Full
                name of the Drawer

            	
              Tianjin
                Daqiuzhuang Metal Sheet Co., Ltd. 

            	
              Full
                name of the payee

            	
              Tianjin
                Hengying Trade Co., Ltd.

            
	
              A/c
                no. of the Drawer

            	
              07546008093001

            	
              A/c
                no. of the Payee

            	
              2213001000264625

            
	
              Full
                name of the paying bank

            	
              Bank
                of China Tianjin Branch Jinghai Sub-branch

            	
              Deposit
                Bank

            	
              China
                Construction Bank of China Jinghai Branch

            
	
              Bill
                amount

            	
              RMB
                Four Million Yuan Only

            	 	 
	
              Date
                of issue

            	
              17th
                Nov. 2005 

            	
              Maturity
                date

            	
              15th
                May 2006 

            

    

    

    

    
      
        
        

      

      
        277

        
          

        

      

      
        
        

      

    

    COMMERCIAL
      BILL ACCEPTANCE AGREEMENT

    

    No.:
      Jinzhongyinjingxinzhi [2005] 003-4

    

    

      
        	
                Full
                  name of the
                  Applicant:
                  Tianjin Daqiuzhuang Metal Sheet Co., Ltd.. 

              	
                Full
                  name of the payee: Tianjin
                  Hengying Trade Co., Ltd.

              
	
                Deposit
                  bank:
                  Bank of China Tianjin Branch Jinghai Sub-branch

              	
                Deposit
                  bank: China
                  Construction Bank of China Jinghai Branch

              
	
                A/c
                  no.:
                  07546008093001

              	
                A/c
                  no.:2213001000264625 

              
	
                Bill
                  no.: 00351843
                  

              	
                Bill
                  amount(amount in words): Three
                  Million and Six Hundred Thousand Yuan only

              
	
                Issuance
                  date:
                  17th
                  Nov, 2005

              	
                Maturity
                  date:12th
                  May
                  2006

              
	
                Legal
                  representative:
                  Yu
                  Zuosheng

              	
                Tel:
                  28899317

              
	
                Address:
                  Daqiuzhuang Town Jinghai Country Tianjin

              	 
	
                Paying
                  bank: Bank
                  of China Tianjin Branch Jinghai Sub-branch

              	
                Tel:28946421

              
	
                Legal
                  representative(or authorized agent):
                  Tang Mansuo

              	 
	
                Address:
                  No.
                  31 Shengli Road Jinghai Town Jinghai County, Tianjin 

              	 
	
                Deposit
                  bank: China
                  Construction Bank Jinghai Sub-branch

              	 

      

    

    

    THIS
      COMMERCIAL BILL ACCEPTANCE AGREEMENT
      (hereinafter “this Contract”) is made and entered into by and between the
      Applicant and the Accepting 

    Bank,
      through mutual friendly negotiation on issues in respect of acceptance of
      acceptance bills (hereinafter “Bills”) upon application of the acceptance
      applicant, subject to the terms and conditions set out hereinafter.

    

    ARTICLE
      1
      The Applicant has, based on the transaction contract, no.
      20051021,
      issue
one
      bill
      in
      the sum of (amount in words) RMB
      Three
      Million and Six Hundred Thousand Yuan only or (amount in figure) RMB
      3,600,000.00 Yuan.
      

    ARTICLE
      2
      The acceptance applicant (hereinafter “the Applicant”) agrees to comply with the
      relevant provisions set out in the Law of the People’s Republic of China on
      Negotiable Instruments, the Procedures for Payment and Settlement, as well
      as
      the terms set forth below:

     

    
      
        
        

      

      
        278

        
          

        

      

      
        
        

      

    

    2.1
      The
      Applicant deposits a security deposit in the sum of 50% of the face value of
      the
      Bill at the Accepting Bank, which security deposit account shall be managed
      in a
      special manner; 

    2.2
      The
      Applicant has deposited the bill amount to the Accepting Bank prior to the
      maturity date thereof; 

    2.3
      The
      Applicant shall pay a processing fee at the rate of 0.5% of the face value
      of
      the Bill in the lump sum at the acceptance; 

    2.4
      Any
      dispute that may arise out of or in connection with this Contract shall be
      settled by related parties in question, in no event shall such dispute affect
      the rights and obligations of either party hereto, the Applicant shall deposit
      the bill amount in full and a timely manner, to the Accepting Bank as required
      by 2.2 hereinabove; 

    2.5
      In
      case the Applicant fails to supply sufficient amount for the bill amount at
      the
      maturity date of such bill, the Accepting Bank shall deal with the deficiency
      between the bill amount and the money actually provided by the Applicant as
      the
      overdue loan on which a penalty interest may be charged; 

    2.6
      The
      Applicant shall, as required by the Accepting Bank, open appropriate settlement
      account in national or foreign currency with the Accepting Bank for purpose
      of
      conducting business transaction. In case the Applicant fails to supply
      sufficient amount for any bill amount at the maturity date, the Accepting Bank
      may, in its sole discretion and opinion, withhold or deduct out of any account
      of the Applicant, any amount for appropriate deficiency of amount together
      with
      accrued interest and commission; 

    2.7
      The
      Applicant shall be held liable for any and all losses incurred by the Accepting
      Bank as a result of failure by the Applicant to perform any of its obligations
      under this Contract or the Commitment. Any and all costs and expenses incurred
      in respect of performance of this Contract shall be charged to the account
      of
      the Applicant by related parties.

    ARTICLE
      3
      ACCEPTANCE GUARANTY

    The
      acceptance amount under this Agreement, including accrued interest thereon,
      commission as well as any other open parts, is secured
      and guaranteed by the land and properties legally owned by the
      Applicant,
      In case
      the Applicant fails to deposit sufficient money to the Accepting Bank prior
      to
      the maturity date or falls in breach of other covenants, the Applicant shall
      assume appropriate security or guaranty obligations as agreed herein, and the
      Accepting Bank is entitled to withhold or deduct any amount out of the surety’s
      account or other funds of the Applicant for making payment of such bill, or
      to
      dispose of the property in case such property is provided as a guaranty
      therefore. 

     

    
      
        
        

      

      
        279

        
          

        

      

      
        
        

      

    

    ARTICLE
      4 REPRESENTATIONS AND WARRANTIES OF APPLICANT

    4.1
      The
      Applicant hereby represents that: 

    4.1.2
      it
      is a legal person enterprise duly established under the laws of the People’s
      Republic of China, with necessary powers and rights to carry out related
      business operation, and has legally permitted right to dispose of the assets
      under the management of the same; 

    4.1.2
      it
      has been fully and legally authorized to execute, deliver and perform this
      Agreement; 

    4.1.3
      it
      undertakes that all the materials to be provided to the Accepting Bank are
      accurate, truthful, complete and valid. 

    4.2
      The
      Applicant hereby warrants and undertakes that: 

    4.2.1
      it
      is in compliance with the relevant provisions set out in the Law
      of the People’s Republic of China on Negotiable Instruments,
      the
Procedures
      for Payment and Settlement,
      as well
      as the terms set forth herein; 

    4.2.2
      the
      bill is issued based on the legal transaction and it shall be responsible for
      the legality of such transaction; 

    4.2.3
      it
      shall refrain from making decrease in the registered capital by any means or
      in
      any form; 

    4.2.4
      any
      change in system, including division, consolidation, reorganization, stock
      reconstruction, etc. or deregistration, dissolution, cease to carry out business
      or bankruptcy, that may occur to the Applicant shall be subject to prior notice
      to the Accepting Bank, otherwise, none of the aforesaid acts may be effective
      or
      valid; 

    4.2.5
      the
      change of affiliation, adjustment to departments, material personnel change,
      as
      well as modification of any joint venture contract and/or Articles of
      Association shall be notified to the Accepting Bank promptly; 

    4.2.6
      the
      Accepting Bank shall be notified of any dispute between or among the parties
      hereto which dispute may affect the legitimate rights and interests of the
      Accepting Bank, and it shall pay the acceptance amount as scheduled;

     

    
      
        
        

      

      
        280

        
          

        

      

      
        
        

      

    

    4.2.7
      no
      tolerance, grace period, or suspension to enforce any of the rights and
      interests or powers of the Accepting Bank hereunder, as may be granted by the
      Accepting Bank to the Applicant in respect of any breach or delay on the part
      of
      the latter may impair, affect, or limit any rights and interests, or powers
      of
      the Accepting Bank in accordance with this Agreement and related laws and
      regulations, nor shall be construed as the waiver by the Accepting Bank of
      any
      right and interest hereunder;

    4.2.8
      this Agreement shall automatically cease to be in force upon clear settlement
      of
      acceptance bills. 

    The
      representations and warranties made by the Applicant hereinabove shall be deemed
      a restatement by the same in any possible modification of, supplement to or
      revision of this Agreement. 

    ARTICLE
      5
      APPENDIX TO AGREEMENT

    The
      following documents shall form the integral parts of this Agreement and are
      of
      the same legal force as this Agreement:

    5.1
      Commercial Bill Acceptance Application Form; 

    5.2
      Pledge Contract; 

    5.3
      Security or Guaranty Contact; 

    5.4
      Various instruments and/or documents, etc. in respect of pledge and/or mortgage;
      

    ARTICLE
      6
      The Agreement is governed by the laws of the People’s Republic of China. Any
      dispute arising out of or in connection with the performance of this Agreement
      shall be settled by friendly negotiation between both Parties, in case of no
      successful settlement therefrom, either party may elect to lodge an action
      with
      the people’s court in accordance with law. 

    ARTICLE
      7
      This Agreement shall enter into force upon signature and common seal by legal
      representatives or duly authorized agents of both parties. 

    

    

      
        	
                Acceptance
                  Applicant (Common Seal):

              	
                Accepting
                  Bank (Common Seal): 

              
	 	 
	
                Legal
                  representative or

              	
                Legal
                  representative or

              
	
                Duly
                  authorized representative

              	
                Duly
                  authorized representative

              
	 	Dated:
                17th
                Nov. 2005 

      

    

    
      
        
        

      

      
        281

        
          

        

      

      
        
        

      

    

    ATTACHMENT
      5 

    PARTICULARS
      OF BANK ACCEPTANCE BILL

    

    Bill
      Code: Bill Number:

    
      	
              Full
                name of the Drawer

            	
              Tianjin
                Daqiuzhuang Metal Sheet Co., Ltd. 

            	
              Full
                name of the payee

            	
              Tianjin
                Hengying Trade Co., Ltd.

            
	
              A/c
                no. of the Drawer

            	
              07546008093001

            	
              A/c
                no. of the Payee

            	
              2213001000264625

            
	
              Full
                name of the paying bank

            	
              Bank
                of China Tianjin Branch Jinghai Sub-branch

            	
              Deposit
                Bank

            	
              China
                Construction Bank of China Jinghai Branch

            
	
              Bill
                amount

            	
              RMB
                Three
                Million and Six Hundred Thousand Yuan only

            	 	 
	
              Date
                of issue

            	
              17th
                Nov. 2005 

            	
              Maturity
                date

            	
              12th
                May 2006 

            

    

    

    

    
      
        
        

      

      
        282

        
          

        

      

      
        
        

      

    

    

    COMMERCIAL
      BILL ACCEPTANCE AGREEMENT

    

    No.:
      Jinzhongyinjingxinzhi [2005] 003-2

    

    

      
        	
                Full
                  name of the
                  Applicant:
                  Tianjin Daqiuzhuang Metal Sheet Co., Ltd..

              	
                Full
                  name of the payee: Tianjin
                  Hengying Trade Co., Ltd.

              
	
                Deposit
                  bank:
                  Bank of China Tianjin Branch Jinghai Sub-branch

              	
                Deposit
                  bank: China
                  Construction Bank of China Jinghai Branch

              
	
                A/c
                  no.:
                  07546008093001

              	
                A/c
                  no.:2213001000264625 

              
	
                Bill
                  no.: 00351843

              	
                Bill
                  amount(amount in words): Four
                  Million Yuan only

              
	
                Issuance
                  date:
                  17th
                  Nov, 2005

              	
                Maturity
                  date:17th
                  May
                  2006

              
	
                Legal
                  representative:
                  Yu
                  Zuosheng 

              	
                Tel:
                  28899317

              
	
                Address:
                  Daqiuzhuang Town Jinghai Country Tianjin

              	 
	
                Paying
                  bank: Bank
                  of China Tianjin Branch Jinghai Sub-branch

              	
                Tel:28946421

              
	
                Legal
                  representative(or authorized agent):
                  Tang Mansuo

              	 
	
                Address:
                  No.
                  31 Shengli Road Jinghai Town Jinghai County, Tianjin 

              	 
	
                Deposit
                  bank: China
                  Construction Bank Jinghai Sub-branch

              	 

      

    

    
 

    THIS
      COMMERCIAL BILL ACCEPTANCE AGREEMENT
      (hereinafter “this Contract”) is made and entered into by and between the
      Applicant and the Accepting 

    Bank,
      through mutual friendly negotiation on issues in respect of acceptance of
      acceptance bills (hereinafter “Bills”) upon application of the acceptance
      applicant, subject to the terms and conditions set out hereinafter.

    

    ARTICLE
      1
      The Applicant has, based on the transaction contract, no.
      20051021,
      issue
one
      bill
      in
      the sum of (amount in words) RMB
      Four Million Yuan only or (amount in figure) RMB 4000000.00 Yuan.
      

    ARTICLE
      2
      The acceptance applicant (hereinafter “the Applicant”) agrees to comply with the
      relevant provisions set out in the Law of the People’s Republic of China on
      Negotiable Instruments, the Procedures for Payment and Settlement, as well
      as
      the terms set forth below:

     

    
      
        
        

      

      
        283

        
          

        

      

      
        
        

      

    

    2.1
      The
      Applicant deposits a security deposit in the sum of 50% of the face value of
      the
      Bill at the Accepting Bank, which security deposit account shall be managed
      in a
      special manner; 

    2.2
      The
      Applicant has deposited the bill amount to the Accepting Bank prior to the
      maturity date thereof; 

    2.3
      The
      Applicant shall pay a processing fee at the rate of 0.5% of the face value
      of
      the Bill in the lump sum at the acceptance; 

    2.4
      Any
      dispute that may arise out of or in connection with this Contract shall be
      settled by related parties in question, in no event shall such dispute affect
      the rights and obligations of either party hereto, the Applicant shall deposit
      the bill amount in full and a timely manner, to the Accepting Bank as required
      by 2.2 hereinabove; 

    2.5
      In
      case the Applicant fails to supply sufficient amount for the bill amount at
      the
      maturity date of such bill, the Accepting Bank shall deal with the deficiency
      between the bill amount and the money actually provided by the Applicant as
      the
      overdue loan on which a penalty interest may be charged; 

    2.6
      The
      Applicant shall, as required by the Accepting Bank, open appropriate settlement
      account in national or foreign currency with the Accepting Bank for purpose
      of
      conducting business transaction. In case the Applicant fails to supply
      sufficient amount for any bill amount at the maturity date, the Accepting Bank
      may, in its sole discretion and opinion, withhold or deduct out of any account
      of the Applicant, any amount for appropriate deficiency of amount together
      with
      accrued interest and commission; 

    2.7
      The
      Applicant shall be held liable for any and all losses incurred by the Accepting
      Bank as a result of failure by the Applicant to perform any of its obligations
      under this Contract or the Commitment. Any and all costs and expenses incurred
      in respect of performance of this Contract shall be charged to the account
      of
      the Applicant by related parties.

    ARTICLE
      3
      ACCEPTANCE GUARANTY

    The
      acceptance amount under this Agreement, including accrued interest thereon,
      commission as well as any other open parts, is secured
      and guaranteed by the land and properties legally owned by the
      Applicant,
      In case
      the Applicant fails to deposit sufficient money to the Accepting Bank prior
      to
      the maturity date or falls in breach of other covenants, the Applicant shall
      assume appropriate security or guaranty obligations as agreed herein, and the
      Accepting Bank is entitled to withhold or deduct any amount out of the surety’s
      account or other funds of the Applicant for making payment of such bill, or
      to
      dispose of the property in case such property is provided as a guaranty
      therefore. 

     

    
      
        
        

      

      
        284

        
          

        

      

      
        
        

      

    

    ARTICLE
      4 REPRESENTATIONS AND WARRANTIES OF APPLICANT

    4.1
      The
      Applicant hereby represents that: 

    4.1.2
      it
      is a legal person enterprise duly established under the laws of the People’s
      Republic of China, with necessary powers and rights to carry out related
      business operation, and has legally permitted right to dispose of the assets
      under the management of the same; 

    4.1.2
      it
      has been fully and legally authorized to execute, deliver and perform this
      Agreement; 

    4.1.3
      it
      undertakes that all the materials to be provided to the Accepting Bank are
      accurate, truthful, complete and valid. 

    4.2
      The
      Applicant hereby warrants and undertakes that: 

    4.2.1
      it
      is in compliance with the relevant provisions set out in the Law
      of the People’s Republic of China on Negotiable Instruments,
      the
Procedures
      for Payment and Settlement,
      as well
      as the terms set forth herein; 

    4.2.2
      the
      bill is issued based on the legal transaction and it shall be responsible for
      the legality of such transaction; 

    4.2.3
      it
      shall refrain from making decrease in the registered capital by any means or
      in
      any form; 

    4.2.4
      any
      change in system, including division, consolidation, reorganization, stock
      reconstruction, etc. or deregistration, dissolution, cease to carry out business
      or bankruptcy, that may occur to the Applicant shall be subject to prior notice
      to the Accepting Bank, otherwise, none of the aforesaid acts may be effective
      or
      valid; 

    4.2.5
      the
      change of affiliation, adjustment to departments, material personnel change,
      as
      well as modification of any joint venture contract and/or Articles of
      Association shall be notified to the Accepting Bank promptly; 

    4.2.6
      the
      Accepting Bank shall be notified of any dispute between or among the parties
      hereto which dispute may affect the legitimate rights and interests of the
      Accepting Bank, and it shall pay the acceptance amount as scheduled;

    4.2.7
      no
      tolerance, grace period, or suspension to enforce any of the rights and
      interests or powers of the Accepting Bank hereunder, as may be granted by the
      Accepting Bank to the Applicant in respect of any breach or delay on the part
      of
      the latter may impair, affect, or limit any rights and interests, or powers
      of
      the Accepting Bank in accordance with this Agreement and related laws and
      regulations, nor shall be construed as the waiver by the Accepting Bank of
      any
      right and interest hereunder;

     

    
      
        
        

      

      
        285

        
          

        

      

      
        
        

      

    

    4.2.8
      this Agreement shall automatically cease to be in force upon clear settlement
      of
      acceptance bills. 

    The
      representations and warranties made by the Applicant hereinabove shall be deemed
      a restatement by the same in any possible modification of, supplement to or
      revision of this Agreement. 

    ARTICLE
      5
      APPENDIX TO AGREEMENT

    The
      following documents shall form the integral parts of this Agreement and are
      of
      the same legal force as this Agreement:

    5.1
      Commercial Bill Acceptance Application Form; 

    5.2
      Pledge Contract; 

    5.3
      Security or Guaranty Contact; 

    5.4
      Various instruments and/or documents, etc. in respect of pledge and/or mortgage;
      

    ARTICLE
      6
      The Agreement is governed by the laws of the People’s Republic of China. Any
      dispute arising out of or in connection with the performance of this Agreement
      shall be settled by friendly negotiation between both Parties, in case of no
      successful settlement therefrom, either party may elect to lodge an action
      with
      the people’s court in accordance with law. 

    ARTICLE
      7
      This Agreement shall enter into force upon signature and common seal by legal
      representatives or duly authorized agents of both parties. 

    

    

      
        	 	 
	
                Acceptance
                  Applicant (Common Seal):

              	
                Accepting
                  Bank (Common Seal): 

              
	 	 
	
                Legal
                  representative or

              	
                Legal
                  representative or

              
	
                Duly
                  authorized representative

              	
                Duly
                  authorized representative

              
	 	Dated:
                17th
                Nov. 2005 

      

    

    
      
        
        

      

      
        286

        
          

        

      

      
        
        

      

    

    ATTACHMENT
      5 

    PARTICULARS
      OF BANK ACCEPTANCE BILL

    

    Bill
      Code: Bill Number:

    
      	
              Full
                name of the Drawer

            	
              Tianjin
                Daqiuzhuang Metal Sheet Co., Ltd. 

            	
              Full
                name of the payee

            	
              Tianjin
                Hengying Trade Co., Ltd.

            
	
              A/c
                no. of the Drawer

            	
              07546008093001

            	
              A/c
                no. of the Payee

            	
              2213001000264625

            
	
              Full
                name of the paying bank

            	
              Bank
                of China Tianjin Branch Jinghai Sub-branch

            	
              Deposit
                Bank

            	
              China
                Construction Bank of China Jinghai Branch

            
	
              Bill
                amount

            	
              RMB
                Four Million Yuan Only

            	 	 
	
              Date
                of issue

            	
              17th
                Nov. 2005 

            	
              Maturity
                date

            	
              15th
                May 2006 

            

    

    

    

    

    
      
        
        

      

      
        287

        
          

        

      

      
        
        

      

    

    

    

    

    SHANGHAI
      PUDONG DEVELOPMENT BANK

    

    

    

    

    

    ACCEPTANCE
      AGREEMENT FOR BANK ACCEPTANCE BILL

    
      
        
        

      

      
        288

        
          

        

      

      
        
        

      

    

    SHANGHAI
      PUDONG DEVELOPMENT BANK

    ACCEPTANCE
      AGREEMENT FOR BANK ACCEPTANCE BILL

    

    No.:
      CD77072005880100

    

    The
      Drawer: Tianjin Daqiuzhuang Metal Sheet Co., Ltd.

    Legal
      Address:

    Postal
      Address:

    

    

    The
      Accepting Bank: Shanghai Pudong Development Bank Tianjin Branch

    Address:

    

    WHREAS,
      the
      Drawer desires to present and honor and the Accepting Bank agrees to honor
      the
      bank acceptance bill (hereinafter “Bill”); 

    NOW,
      THEREFORE,
      both
      Parties agree to enter into this agreement, through mutual friendly negotiation
      on the basis of fairness and good faith and in accordance with related laws
      of
      regulations of the People’s Republic of China (hereinafter “China”), subject to
      the terms and conditions to be set out hereinafter. 

    

    ARTICLE
      1 BILL PARTICULARS

    
      	
              1.1

            	
              In
                principle, the Bill shall include the particulars specified
                hereinafter:

            

    

    

      
        	
                Full
                  name of the
                  Drawer: Tianjin Daqiuzhuang Metal Sheet Co., Ltd.

              	
                Full
                  name of the payee: Tianjin Hengying Trade Co., Ltd.

              
	
                Deposit
                  bank: Shanghai Pudong Development Bank Tianjin Branch

              	
                Deposit
                  bank: China Construction Bank Jinghai Subrranch

              
	
                A/c
                  no.: 126986411000616

              	
                A/c
                  no.:2213001000264625

              
	
                Bill
                  no.: 00333314, 00333315, 00333313

              	
                Bil
                  amount(amount in words): Twenty Million Yuan only

              
	
                Issuance
                  date: 10th
                  Nov. 2005

              	
                Maturity
                  date: 10th
                  May
                  2006 

              

      

    

    
      	
              1.2

            	
              The
                Drawer issues the Bills herein whereby the payment obligations under
                __________ (underlying contract) to the payee are to be performed.
                

            

    

    

    
      
        
        

      

      
        289

        
          

        

      

      
        
        

      

    

    ARTICLE
      2 ACCEPTANCE AND PAYMENT OBLIGATIONS

    2.1
      The
      Accepting Bank shall, upon agreeing to accept the Bills hereunder, become the
      principal debtor for such Bills, and is obliged to pay the designated payee
      or
      the Bill holders the amount shown on the Bills at the maturity date thereof,
      provided however the Accepting Bank may not be held liable for aforesaid
      underlying contract. 

    2.2
      The
      obligations of the Drawer hereunder shall be as set out below:

    2.2.1
      The
      Drawer shall deposit sufficient amount of money for any Bill to be drawn to
      the
      Accepting Bank prior to the scheduled maturity date thereof, without regard
      to
      any dispute in any form that may arise out of the underlying transaction between
      the Drawer and the payee, and the Drawer shall authorize the Accepting Bank
      to
      directly withhold and deduct any such amount out of the deposit account opened
      with the Accepting Bank at any appropriate time. 

    2.2.2
      The
      Drawer shall pay in full and a timely manner, to the Accepting Bank any and
      all
      costs and expenses incurred hereunder, and shall submit relevant materials
      and
      documents as required by the Accepting Bank. 

    2.2.3
      In
      case no money exists in or deficiency occurs to the account of the Drawer when
      the Bill matures, the Drawer shall without delay pay the Accepting Bank any
      amounts paid by the Accepting Bank for the Drawer, together with any accrued
      interest on overdue amount as well as related costs, and hereby acknowledges
      that the accounting vouchers issued by the Accepting Bank shall be regarded
      as
      the sole and conclusive evidence for such debts for which the Drawer is be
      held
      liable to the Accepting Bank. 

    2.3
      The
      Drawer shall mark any Bill which is intended not to be transferred, with the
      legend “Non-transferable”, and shall notify the payee so, in such a case, the
      Accepting Bank shall be held liable for payment to the named payee only.

    

    ARTICLE
      3 REPRESENTATIONS AND WARRANTIES

    The
      Drawer hereby represents and warrants with the Accepting Bank which
      representations and warranties shall be of continuous force during the whole
      life of this agreement, as follows:

    3.1
      The
      Drawer is a legal person enterprise which is duly incorporated under the law
      of
      the People’s Republic of China, that is has full rights or powers in its all
      assets, and has full civil act capacity, as well as that it can assume any
      liability on its own.

     

    
      
        
        

      

      
        290

        
          

        

      

      
        
        

      

    

    3.2
      Appropriate authorized representative has been appointed by the Drawer to
      execute this Agreement which constitute the true representation of the surety
      agreeing to be legally bound by such Bills and this Agreement.

    3.3
      The
      underlying transaction contract between the Drawer and payee is true and has
      a
      proper and good consideration, the Drawer has a reliable fund source to pay
      any
      Bill and no instrument-related fraudulent actions exist.

    3.4
      The
      Drawer hereby undertakes to provide reasonable assistance in any supervision
      and/or inspection by the Accepting Bank over the operation of the Drawer, and
      undertakes that any and all financial statements to be provided by the Drawer
      are in compliance with related laws and regulations of China which statements
      fairly and truthfully reflect the financial standing of the Drawer; Any and
      all
      documents and materials relating to this Agreement are true, valid, complete,
      accurate as well as free from any conscious concealment. 

    3.5
      The
      Drawer hereby undertakes not to be engaged in any contracting, business
      operation under lease, pool, stock reconstruction, consolidation (M&A),
      joint venture (cooperation), division, establishment of subsidiary, transfer
      of
      property right, reduction of registered capital, cease to carry out business,
      dissolution, application for being declared bankrupt or any other act that
      may
      impair the rights and interest of the Accepting Bank, without providing security
      measures for the performance of debts which security measures are subject to
      a
      consent in writing from the Accepting Bank. 

    3.6
      The
      Drawer hereby undertakes to notify the Accepting Bank within three (3) days
      in
      writing of any breach described in ARTICLE 5 hereof or any other facts that
      may
      constitute a breach, upon being aware of the same. 

    

    ARTICLE
      4 EXPENSES AND GUARANTEE

    4.1
      The
      Drawer shall at the acceptance date pay the Accepting Bank a commission in
      the
      sum of (amount in words) RMB
      Ten Thousand Yuan only
      as
      prescribed by relevant regulations of the People’s Bank of China. 

    4.2
      The
      Drawer shall open a security deposit account with the Accepting Bank, and shall
      deposit an amount equivalent to 50%
      of the
      face value of the Bill to be drawn before the scheduled acceptance date, and
      shall authorize the Accepting Bank to deduct any such amount out of such account
      directly at appropriate time, except as waived by the Accepting Bank.

     

    
      
        
        

      

      
        291

        
          

        

      

      
        
        

      

    

    4.3
      Appropriate guarantee shall be provided by the following guarantor(s) for the
      acceptance amount together with any accrued interest on overdue payment and
      related expenses(after deduction of security deposit) that may be incurred
      hereunder (the guaranty contract is to be concluded): 

    4.3.1
      Tianjin
      Sheng Da Steel Mill Co.,Ltd.
      (hereinafter “the surety”) stands surety in accordance with a suretyship
      contract with the no.:
      CD77072005800274. 

    4.3.2
      ________________________________ (hereinafter “the mortgagor”) provides a
      mortgage in accordance with a mortgage contract with the no.:       
      .

    4.3.3
      _________________________________ (hereinafter “the pledgor”) act as the pledgor
      in accordance with a pledge contract with the no.:               
      .
      

    

    ARTICLE
      5 BREACH AND SETTLEMENT

    5.1
      Any
      of the followings shall constitute a breach on the part of the Drawer of this
      Agreement. 

    5.1.1
      Failure to perform its obligations under ARTICLE 2 hereof, in a timely and
      complete manner. 

    5.1.2
      The
      representations and warranties made by the Drawer under ARTICLE 3 hereof are
      not
      true, inaccurate, incomplete or the Drawer is in breach or default.

    5.1.3
      The
      Drawer is or will be in the status of cease to produce, being liquidated,
      dissolved, deregistered, bankrupt, or involved in other significant suits,
      arbitration, administrative proceedings, or the whole or substantial part of
      its
      assets are or will be attached, sealed up, confiscated or seized. 

    5.1.4
      The
      guarantor has no or will have no guaranty capacity appropriate to the acceptance
      amount, or falls in breach of the guaranty documents signed by the same.

    5.1.5
      Occurrence of any material adverse change that may affect the performance by
      the
      Drawer of any obligation hereunder. 

    5.1.6
      Breach by the Drawer of any other provision contained herein. 

    5.2
      The
      Accepting Bank is entitled to charge appropriate interest in accordance with
      related regulations of the People’s Bank of China, on any payment by the
      Accepting Bank for the Drawer if the sufficient amount for the Bill is not
      made
      available by the Drawer at the maturity date of such Bill. 

     

    
      
        
        

      

      
        292

        
          

        

      

      
        
        

      

    

    5.3
      In
      the case of any or a combination of the abovementioned breaches, in addition
      to
      the remedies provided in ARTICLE 5.2 hereinabove, the Accepting Bank may also
      elect to any or a combination of remedies described below:

    5.3.1
      Require the Drawer to pay a security deposit in sufficient amount; 

    5.3.2
      Withhold or deduct directly such amount out of any deposit accounts opened
      by
      the Drawer with any business office of Shanghai Pudong Development Bank.

    5.3.3
      Require the Drawer to provide guarantees, mortgage, pledge or others as may
      be
      acceptable to the Accepting Bank.

    5.3.4
      Make recourse or recovery against the Drawer by taking other necessary actions
      as prescribed by related laws. 

    Upon
      any
      of the abovementioned cases, the Drawer hereby agrees to unconditionally waive
      its defense right, and to indemnify and hold harmless the Accepting Bank from
      and against any and all loss incurred as a result of the breach. 

    

    ARTICLE
      6 MISCELLANEOUS

    6.1
      This
      Contract shall be governed by and construed in accordance with the laws of
      the
      People’s Republic of China. Any dispute arising out of or in connection with
      this contract shall be subject to the jurisdiction of the people’s court at the
      place where the principal business office of the Accepting Bank is
      domiciled.

    6.2
      This
      Agreement shall enter into force upon common seal by both Parties hereto or
      signature or seal by the legal representative or duly authorized representative
      of each party, until any and all debts owed by the Drawer u have been satisfied
      or paid up. 

    6.3
      The
      Acceptance Application, Bank Acceptance Bill, appropriate guaranty contract,
      as
      well as related written documents shall form the integral parts of this
      Agreement and have the same legal force as the same. 

    6.4
      This
      Agreement is made in duplicate in original, each party holds one, and several
      copies thereof shall be made available for reference. 

    

    AT
      THE
      TIME OF SIGNING THIS CONTRACT, NEITHER PARTY HAS ANY DOUBT OR CONCERN OVER
      ANY
      PROVISION CONTAINED HEREIN AND EACH OF THEM HAS A CLEAR UNDERSTANDING OF THE
      LEGAL IMPLICATION OF THE ARTICLES PERTAINING TO THE RIGHTS, OBLIGATIONS AS
      WELL
      AS THE LIABILITIES OF EACH PARTY.

    

    
      
        
        

      

      
        293

        
          

        

      

      
        
        

      

    

    

    

    

      
        	
                The
                  Drawer (Common Seal):

              	
                The
                  Accepting Bank (Common Seal): 

              
	 	 
	 	 
	
                Legal
                  representative or duly authorized

              	
                Legal
                  representative or duly authorized

              
	
                representative
                  (signature or seal)

              	
                representative
                  (signature or seal) 

              

      

    

    Dated
      10th
      Nov.
      2005

    

    
      
        
        

      

      
        294

        
          

        

      

      
        
        

      

    

    

    

    

    

    SHANGHAI
      PUDONG DEVELOPMENT BANK

    

    

    

    

    

    MAXIMUM
      AMOUNT SURETYSHIP CONTRACT FOR BANK ACCEPTANCE BILL

    
      
        
        

      

      
        295

        
          

        

      

      
        
        

      

    

    

    MAXIMUM
      AMOUNT SURETYSHIP CONTRACT FOR BANK ACCEPTANCE BILL

    

    No.:
      CD77072005800274

    

    The
      Surety: Tianjin Sheng Da Steel Mill Co. , Ltd. 

    Legal
      Address:

    Postal
      Address:

    

    

    Accepting
      Bank: Shanghai Pudong Development Bank Tianjin Branch

    Address:
      

    

    WHEREAS,
      The
      Maximum Amount Acceptance Contract (No.:
      CD77072005800274)
      (hereinafter “the Maximum Amount Acceptance Contract”) was entered into by and
      between Tianjin Daqiuzhuang Metal Sheet Co., Ltd.(hereinafter “the Drawer”) and
      the Accepting Bank on 23rd
      May
      2005; 

    WHEREAS,
      the
      Accepting Bank has or will accept and honor a series of drafts to be drawn
      and
      presented by the Drawer; 

    NOW,
      THEREFORE,
      This
      suretyship contract is entered into by and between the Drawer and the Accepting
      Bank, through mutual friendly negotiation on the basis of fairness and good
      faith, with a view to guaranteeing the successful realization of the creditor’s
      rights of the Accepting Bank, subject to the terms and conditions to be set
      forth hereinafter. 

    ARTICLE
      1
      The
      principal creditor’s right for which this suretyship is established hereunder
      refers to any balance of the amounts shown in the series of drafts to be drawn
      by the Drawer and honored by the Accepting Bank within the credit term as from
      23rd
      May 2005
      and ending on 18th
      Nov.
      2005 pursuant to the Maximum Amount Acceptance Contract, and the maximum total
      sum of the aforesaid balance may not exceed the amount of RMB Twenty Million
      Yuan (amount in words). In the event of any payment by the Accepting Bank for
      the Drawer for honoring any due and payable acceptance bill for which the Drawer
      fails to pay, the appropriate individual principal creditor’s right shall refer
      to such payment made by the Accepting Bank for the Drawer which payment shall
      be
      regarded as the overdue loan. The “Maturity” and “Expiry” as referred to herein
      shall include the accelerated maturity as may be declared by the Accepting
      Bank.

     

    
      
        
        

      

      
        296

        
          

        

      

      
        
        

      

    

    The
      amount, maturity date as well as the acceptance date of any acceptance bill
      shall be as described in Attachment 1 hereto. 

    ARTICLE
      2 The
      scope
      of the surety hereunder shall include the principal creditor’s rights payable
      but not paid by the Drawer when due, together with any accrued interest on
      the
      same, fine for breach, compensation, attorney fees, action costs incurred by
      the
      Accepting Bank in realizing its creditor’s rights, as well as any other related
      costs; Any accounting voucher issued by the Accepting Bank in compliance with
      related banking business procedures shall work as the sole and conclusive
      evidence for the indebtedness owed by the Drawer. 

    ARTICLE
      3
      The
      suretyship referred to herein shall mean the suretyship with joint and several
      liability whereby the surety agrees to be held liable jointly and severally
      for
      any indebtedness owed by the Drawer to the extent of the scope of such
      suretyship created hereunder. The surety undertakes to unconditionally discharge
      the guaranteed debts as the first debtor, upon receipt of a written notice
      from
      the Accepting Bank: 

    
      	
              (i)

            	
              In
                case the Accepting Bank has paid to appropriate payee, the surety
                shall
                directly repay any and all debts owed by the Drawer to the Accepting
                Bank
                as a result thereof; 

            

    

    
      	
              (ii)

            	
              (ii)
                In case the Accepting Bank has not paid to appropriate payee but
                is
                entitled to take actions against any breach as provided in the Maximum
                Amount Acceptance Contract, the surety shall directly pay the Accepting
                Bank an amount equivalent to the principal debts which amount shall
                be
                deemed a security deposit for payment by the Accepting Bank. The
                surety
                hereby authorizes the Accepting Bank to withhold and deduct any such
                amount out of any deposit account opened by the Drawer with any business
                office of Shanghai Pudong Development Bank.

            

    

    ARTICLE
      4 This
      suretyship hereunder is independent, irrevocable and continuously effective.
      In
      no event shall the Suretyship Contract be affected by the Principal Contract,
      nor shall be declared void and/or rescinded as a result of the fact that the
      principal contract is declared void and/or rescinded. The suretyship liability
      to be taken by the surety hereunder shall remain unchanged is disregard to
      any
      modification of the Maximum Amount Acceptance Contract as both parties may
      make
      by agreement, and in disregard to any change by the Drawer and/or the surety
      in
      their respective operation or management structure. The surety agrees to be
      held
      liable as surety in the case of any modification of the Maximum Amount
      Acceptance Contract between the Lender and the Drawer, or in the case of any
      change in the operation or management structure of the Drawer, in the absence
      of
      the written permission of the Surety hereunder. 

     

    
      
        
        

      

      
        297

        
          

        

      

      
        
        

      

    

    The
      surety shall be held liable as surety for any debts created as a result of
      acceptance by the Accepting Bank of any bank drafts drawn by the Drawer within
      the credit term, unless otherwise agreed in writing by both parties with regard
      to the acceptance surety for particular draft. 

    ARTICLE
      5
      The
      suretyship shall remain in force for a period of two (2) years as from the
      expiry date of each draft during which surety duration failure of the Accepting
      Bank to require the Surety to perform the surety obligation shall render the
      surety released or exempted from such suretyship. 

    ARTICLE
      6
      The
      surety hereby represents and warrants with the Accepting Bank that it is a
      legal
      person enterprise or entity which is duly incorporated under the law of the
      People’s Republic of China, that is has full rights or powers in its all assets,
      and has full civil act capacity, as well as that it can assume any liability
      on
      its own; Appropriate authorized representative has been appointed by the surety
      to execute this contract which constitute the true representation of the surety
      agreeing to be bound thereby. 

    ARTICLE
      7 This
      Contract shall enter into and remain in force upon common seal by both Parties
      hereto or signature or seal by the legal representative or duly authorized
      representative of each party, until any and all debts owed by the Drawer under
      the Maximum Amount Acceptance Contract have been satisfied or paid up. In case
      the signing date hereof is earlier than the signing date of the Maximum Amount
      Acceptance Contract, this Contract shall enter into as from the signing date
      of
      the Maximum Amount Acceptance Contract. 

    ARTICLE
      8 This
      Contract shall be governed by and construed in accordance with the laws of
      the
      People’s Republic of China. Any dispute arising out of or in connection with
      this contract shall be subject to the jurisdiction of the people’s court at the
      place where the principal business office of the Accepting Bank is domiciled.
      

    ARTICLE
      9
      This
      Contract is made in duplicate in original, each party holds one, and several
      copies thereof shall be made available for reference. 

    

    AT
      THE
      TIME OF SIGNING THIS CONTRACT, NEITHER PARTY HAS ANY DOUBT OR CONCERN OVER
      ANY
      PROVISION CONTAINED HEREIN AND EACH OF THEM HAS A CLEAR UNDERSTANDING OF THE
      LEGAL IMPLICATION OF THE ARTICLES PERTAINING TO THE RIGHTS, OBLIGATIONS AS
      WELL
      AS THE LIABILITIES OF EACH PARTY. 

    

    
      
        
        

      

      
        298

        
          

        

      

      
        
        

      

    

    

    

      
        	
                The
                  Surety (Common Seal):

              	
                The
                  Accepting Bank (Common Seal): 

              
	 	 
	 	 
	
                Legal
                  representative or duly authorized

              	
                Legal
                  representative or duly authorized

              
	
                representative
                  (signature or seal)

              	
                representative
                  (signature or seal) 

              
	 	 
	 	 
	
                Deposit
                  Bank and A/c No.:

              	
                Dated
                  23rd
                  May 2005 

              

      

    

     

    
      
        
        

      

      
        299

        
          

        

      

      
        
        

      

    

    ATTACHMENT
      TO MAXIMUM AMOUNT SURETYSHIP CONTRACT FOR BANK ACCEPTANCE BILL
      (No.:        ) 

     

    

      
        	 	
                Bill
                  1

              	
                Bill
                  2

              	
                Bill
                  3

              	
                Bill
                  4

              	
                Bill
                  5 

              
	
                Bill
                  No.:

              	
                _______

              	
                _______

              	
                _________

              	
                _________

              	
                __________

              
	
                Bill
                  Amount:

              	
                _______

              	
                _______

              	
                _________

              	
                __________

              	
                __________

              
	
                Maturity
                  Date:

              	
                ______

              	
                _______

              	
                _________

              	
                __________

              	
                ___________

              
	
                Acceptance
                  Date:

              	
                _____

              	
                _______

              	
                -_________

              	
                ___________

              	
                __________

              
	
                Remarks:

              	
                ________

              	
                _________

              	
                __________

              	
                __________

              	
                __________

              

      

    

     

    

      
        	 	
                Bill
                  6

              	
                Bill
                  7

              	
                Bill
                  8

              	
                Bill
                  9

              	
                Bill
                  10

              
	
                Bill
                  No.:

              	
                _______

              	
                _______

              	
                _________

              	
                _________

              	
                __________

              
	
                Bill
                  Amount:

              	
                _______

              	
                _______

              	
                _________

              	
                __________

              	
                __________

              
	
                Maturity
                  Date:

              	
                ______

              	
                _______

              	
                _________

              	
                __________

              	
                ___________

              
	
                Acceptance
                  Date:

              	
                _____

              	
                _______

              	
                -_________

              	
                ___________

              	
                __________

              
	
                Remarks:

              	
                ________

              	
                _________

              	
                __________

              	
                __________

              	
                __________

              

      

      
        	 	
                Bill
                  11

              	
                Bill
                  12

              	
                Bill
                  13

              	
                Bill
                  14

              	
                Bill
                  15 

              
	
                Bill
                  No.:

              	
                _______

              	
                _______

              	
                _________

              	
                _________

              	
                __________

              
	
                Bill
                  Amount:

              	
                _______

              	
                _______

              	
                _________

              	
                __________

              	
                __________

              
	
                Maturity
                  Date:

              	
                ______

              	
                _______

              	
                _________

              	
                __________

              	
                ___________

              
	
                Acceptance
                  Date:

              	
                _____

              	
                _______

              	
                -_________

              	
                ___________

              	
                __________

              
	
                Remarks:

              	
                ________

              	
                _________

              	
                __________

              	
                __________

              	
                __________

              

      

    

     

    This
      Attachment is to be completed by the Accepting Bank and to be notified to the
      surety on regular basis. 

     

    
      
        
        

      

      
        300

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