Document:

EXHIBIT
      10.2 

    RMB
      Short-Term Loan Agreement

    

     (This
      document is an English summary from the original Chinese version) 

    

    

    The
      Borrower:
      Jinzhou
      Halla Electrical Equipment Co., Ltd.

    

    The
      Lender:
      Bank of
      China (Jinzhou Tiebei Branch) 

    

    Date
      of
      the Agreement: September 27, 2007 

    

    
      	
              1.

            	
              The
                amount of loan is RMB 30 million.

            

    

     

    
      	
              2.

            	
              The
                term of the loan is 6 months, commencing on the drawdown date and
                ending
                on the last payment date.

            

    

     

    
      	
              3.

            	
              The
                loan shall be used for the purpose of purchasing raw materials. Without
                written consent of the Lender, the Borrower can not change the use
                of the
                loan. The loan can not be used to buy stocks, real estates in violation
                of
                regulations and other items prohibited by laws and regulations.
                

            

    

     

    
      	
              4.

            	
              The
                semiannual interest rate is 6.48% and cannot be adjusted within the
                term
                of this Agreement. The Borrower shall make the interest payment on
                a
                quarterly basis on March 20th,
                June20th,
                September 20th,
                and December 20th,
                respectively.

            

    

     

    
      	
              5.

            	
              Conditions
                of Drawing Loan

            

    

     

    The
      Lender is entitled to refuse the Borrower’s drawing money before the following
      conditions are satisfied:

     

    
      	 	
              (1)

            	
              The
                Borrower submits a written application for the loan and documents
                proving
                the use of the loan five days before it draws
                money;

            

    

     

    
      	 	
              (2)

            	
              This
                Agreement and other relevant documents attached have taken into
                effect;

            

    

     

    
      	 	
              (3)

            	
              The
                Mortgage Agreement specified under Section 9 has taken into
                effect;

            

    

     

    
      	 	
              (4)

            	
              The
                Borrower has opened bank account in accordance with the requirements
                of
                the Lender for drawing money, paying interests and
                fees;

            

    

     

    
      	 	
              (5)

            	
              The
                Borrower has submitted to the Lender the resolutions of the board
                of
                director of the Borrower or the other competent authorities approving
                the
                execution and performance of this Agreement;

            

    

     

    
      	 	
              (6)

            	
              The
                Borrower has submitted to the Lender the lists of personnel who have
                the
                power to execute this Agreement and relevant documents to this Agreement
                and their sample of signature; and

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
              (7)

            	
              No
                occurrence of event of default specified under Section
                11.

            

    

     

    
      	
              6.

            	
              The
                Borrower
                shall draw the whole amount of the loan on September 29,
                2007.

            

    

     

    
      	
              7.

            	
              The
                Borrower shall submit an application for the loan when drawing the
                money
                and go through respective
                formalities.

            

    

     

    
      	
              8.

            	
              On
                March 28, 2008, the Borrower shall pay back the principal of RMB
                30
                million. Prepayment is permitted, but a 15-day advance notice to
                the
                Lender is required. On such occasion, the Borrower shall be subject
                to a
                penalty equal to 2% of the interests that otherwise would be accrued
                on
                the portion of the principal that is
                pre-paid.

            

    

     

    
      	
              9.

            	
              The
                Borrower shall provide mortgage to secure the full payment of its
                obligation under this Agreement. The Borrower and the Lender entered
                into
                a Mortgage Agreement, the number of the agreement is 2007
                Jin Zhong Yin Tie Ya Zi No. 001.

            

    

     

    
      	
              10.

            	
              Representations
                and Warranties

            

    

     

    
      	 	
              10.1

            	
              The
                Borrower represents that:

            

    

     

    
      	 	
              (1)

            	
              It
                is duly registered and validly
                existing;

            

    

     

    
      	 	
              (2)

            	
              It
                has obtained all necessary authorization to execute this
                Agreement;

            

    

     

    
      	 	
              (3)

            	
              All
                documents, financial statements, and other materials provided by
                the
                Borrower to the Lender are true, complete, accurate and
                valid;

            

    

     

    
      	 	
              (4)

            	
              The
                Borrower has not disguised any of the following events which has
                already
                occurred or is occurring and will affect the performance capabilities
                of
                the Borrower:

            

    

     

    
      	 	
              (ii)

            	
              any
                material violation of discipline and laws or claims to be made involving
                the Borrower or its main leaders;

            

    

     

    
      	
            	(iii)	
              breach
                of contract by the Borrower under other
                agreements;

            

    

     

    
      	 	
              (iv)

            	
              obligations,
                contingent obligations or mortgage or pledge to a third party which
                the
                Borrower shall bear; 

            

    

     

    
      	 	
              (v)

            	
              pending
                litigation or arbitration; and

            

    

     

    
      	 	
              (vi)

            	
              other
                events which will affect the financial status and performance capabilities
                of the Borrower.

            

    

     

    
      	 	
              10.2

            	
              The
                Borrower hereby warrants:

            

    

     

    
      	 	
              (1)

            	
              To
                provide the Lender the latest financial statements on a monthly basis
                in
                accordance with the requirements of the Lender, provide the Lender
                the
                audited financial statements of the previous year in the first quarter,
                and to provide any time upon the request of the Lender other related
                materials including but limited to the financial
                statements;

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	 	
              (2)

            	
              To
                accept and fully coordinate the examination and supervision by the
                Lender
                to the use of the loans;

            

    

     

    
      	 	
              (3)

            	
              To
                inform the Lender in advance of decrease of registered capital, or
                any
                material change of equity interest and adjustment of operation, including
                but not limited to joint venture or cooperation with foreign investors,
                division, merger, acquisition, reorganizes, lease, contracting,
                trusteeship, etc. In case the aforesaid activities have an adverse
                impact
                on the Borrower’s capabilities to pay back the loan, consent of the Lender
                is required;

            

    

     

    
      	 	
              (4)

            	
              The
                Borrower can not dispose of its self-owned assets by decreasing its
                capabilities to pay back the loan. The Borrower shall timely inform
                the
                Lender when mortgaging or pledging its self-owned assets and warrant
                the
                total amounts of debts it secured shall not exceed the net value
                of the
                assets which secures the debts; 

            

    

     

    
      	 	
              (5)

            	
              The
                Lender has a priority on the payback of the loan over the payback
                of the
                loan by the shareholders to the Borrower and shall at least be in
                the same
                position as other creditors to the same type of
                debts;

            

    

     

    
      	 	
              (6)

            	
              The
                Borrower shall deposit enough money for paying back the interests
                at least
                one day before the date which every interest is
                due;

            

    

     

    
      	 	
              (7)

            	
              The
                Borrower shall not distribute dividend and bonus to its shareholder
                in any
                means in case the net after-tax profit in the relevant fiscal year
                is or
                below zero, or is not sufficient to make up the accumulated losses
                of the
                previous fiscal year, or the before-tax profit is not used to pay
                back the
                principle and interests and fees which are due in such fiscal year
                or the
                before-tax profit is not sufficient to pay back the principle, interests
                and fees in the next fiscal year; 

            

    

     

    
      	 	
              (8)

            	
              To
                immediately inform the Lender in case of occurrence of any of the
                following events: 

            

    

     

    
      	 	
              (i)

            	
              breach
                of contract by the Borrower under this Agreement or other
                agreements;

            

    

     

    
      	 	
              (ii)

            	
              change
                of senior management of the Borrower, amendment of the articles of
                association of the Borrower and material adjustment of the internal
                organization structure of the
                Borrower;

            

    

     

    
      	 	
              (iii)

            	
              deterioration
                of financial situation of the Borrower;
                and

            

    

     

    
      	 	
              (iv)

            	
              material
                litigation or arbitration the Borrower is
                involved.

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	
              11.

            	
              Event
                of Default

            

    

     

    
      	 	
              11.1

            	
              If
                the Borrower fails to repay the principal or interest when it becomes
                due
                and obtain an extension from the Lender, then during the overdue
                period,
                the interest rate for the portion of the payment that becomes due
                shall be
                150% of the agreed-upon interest rate; if the Borrower uses the proceeds
                of the loan for any purposes other than agreed upon herein, the interest
                rate for that portion of the proceeds will be 100% higher than the
                agreed-upon interest rate. In case the Borrower fails to repay the
                interest in full amount on time, the Lender is entitled to collect
                double
                interest on a quarterly basis on the amount of the interest which
                becomes
                due and unpaid according to the same interest rate as the rate for
                the
                principle. 

            

    

     

    
      	 	
              11.2

            	
              In
                any of the following events, the Lender is entitled to stop the Borrower
                to draw the money or cancel the loan which the Borrow has not drawn
                and
                declare that the principle and all the interests under this Agreement
                become due immediately:

            

    

     

    
      	 	
              (1)

            	
              The
                Borrower fails to repay the principle or interests in delay for more
                than
                30 days;

            

    

     

    
      	 	
              (2)

            	
              The
                total amount of the principle and interest that the Borrower fails
                to
                repay or uses for any purposes other than agreed upon herein has
                amounted
                to RMB one million;

            

    

     

    
      	 	
              (3)

            	
              Any
                representation furnished by the Borrower under Section 10 proves
                to be
                incorrect or the Borrower breaches any of its representations/warranties
                under this Agreement;

            

    

     

    
      	 	
              (4)

            	
              Occurrence
                of an event of default by the Borrower under other
                agreements;

            

    

     

    
      	 	
              (5)

            	
              Occurrence
                of an event of default by the mortgager under the mortgage agreement,
                adversely affect the Borrower’s capabilities to perform its obligations
                under this Agreement;

            

    

     

    
      	 	
              (6)

            	
              The
                Borrower ceases its operation, dissolves or bankrupts;
                

            

    

     

    
      	 	
              (7)

            	
              Serious
                deterioration of financial situation of the Borrower;
                and

            

    

     

    
      	 	
              (8)

            	
              The
                collaterals are damaged, lost, destroyed, sealed up or frozen and
                the
                Borrower fails to provide new security according to the requirements
                of
                the Lender.

            

    

     

    
      	
              12.

            	
              The
                Borrower agrees that the Lender may directly deduct any amounts which
                become due under this Agreement from the bank accounts the Borrower
                has
                opened in all the branches of Bank of China.

            

    

     

    
      	
              13.

            	
              All
                the taxes, charges and fees relevant to the execution, performance
                of this
                Agreement and its dispute resolution shall be borne by the Borrower.
                

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
              14.

            	
              Offset,
                Assignment and Rights Reservation 

            

    

     

    
      	 	
              14.1

            	
              The
                Borrower shall fully repay the principle and all the interests which
                become due under this Agreement and cannot offset such principle
                and
                interests, unless agreed by the
                Lender.

            

    

     

    
      	 	
              14.2

            	
              Without
                prior written consent from the Lender, the Borrower shall not assign
                any
                obligations under this Agreement to a third
                party.

            

    

     

    
      	 	
              14.3

            	
              Any
                tolerance, extension and preference given by the Lender to the Borrower
                or
                any delay to execute the rights under this Agreement by the Lender
                shall
                not affect, impair or restrict any enjoyable rights of the Lender
                according to this Agreement and other laws and regulations, nor be
                deemed
                a waiver of the aforesaid rights of the Lender under this Agreements,
                nor
                exempt any obligations of the Borrower under this
                Agreement.

            

    

     

    
      	
              15.

            	
              Amendment
                and Termination

            

    

     

    
      	 	
              15.1

            	
              This
                Agreement may be amended, supplemented or terminated based on mutual
                written agreement between both Parties. Any amendments and supplements
                to
                this Agreement shall constitute an integral part of this
                Agreement.

            

    

     

    
      	 	
              15.2

            	
              Any
                unenforceable provision of this Agreement will not affect the
                enforceability of all the remaining provisions of this
                Agreement. 

            

    

     

    
      	
              16.

            	
              Application
                of Law, Dispute
                Settlement and Jurisdiction 

            

    

     

    
      	 	
              16.1

            	
              The
                Agreement will be governed by laws of People’s Republic of
                China.

            

    

     

    
      	 	
              16.2

            	
              Any
                disputes, which cannot be settled through consultation, shall be
                adjudicated by the court in the jurisdiction where the Lender
                domiciles. 

            

    

     

    
      	
              17.

            	
              Effectiveness
                of the Agreement 

            

    

     

    This
      Agreement shall take into effect as of the date when the legal representatives
      or authorized representatives of both Parties sign and attach the seals to
      the
      Agreement. There are two official copies of the Agreement. Both Parties shall
      hold one original set, which shall be equally authentic.

     

    
      	
              18.

            	
              Special
                Note

            

    

     

    The
      Parties have conducted sufficient negotiations on all terms of this Agreement.
      The Lender has reminded the Borrower of paying special attentions to all the
      terms regarding the rights and obligations of both Parties and of understanding
      these terms comprehensively and accurately. Upon the request of the Borrower,
      the Lender has respectively informed and explained the aforesaid terms to the
      Borrower. 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      
        	
                Jinzhou
                  Halla Electrical Equipment Co., Ltd. 

              
	
                /s/
                  Yuncong Ma

              	 
	
                Seal

              
	
                September
                  27, 2007

              
	
                 

              
	
                 

              
	
                Bank
                  of China (Jinzhou Tiebei Branch)

              
	
                /s/
                  Jun Wang

              	 
	
                Seal
                  

              
	
                September
                  27, 2007 

              

      

    

     

    
      
         

      

      
        6EXHIBIT
      10.3

    

    Mortgage
      Agreement

    

    (This
      document is an English summary from the original Chinese version)

    

    The
      Mortgagor:
      Jinzhou
      Halla Electrical Equipment Co., Ltd.

    

    The
      Mortgagee:
      Bank of
      China (Jinzhou Tiebei Branch) 

    

    In
      order
      to ensure the performance of one or several credit agreements entered or to
      be
      entered into between the Mortgagor and the Mortgagee, the Mortgagor hereby
      enters into this agreement (the “Agreement”) with the Mortgagee and grants the
      Mortgagee security interests on certain of its properties to secure its
      obligations under those credit agreements. All terms have the meaning as defined
      in the credit agreements unless otherwise provided herein. 

    

    Section
      1
      Credit Facility Agreements 

    

    The
      Agreement is entered into pursuant to one or several Credit Facility Agreements
      entered or to be entered into by the Mortgagor and Mortgagee between September
      27, 2007 and September 24, 2008, and any other agreements now or hereafter
      entered into in connection with the Credit Facility Agreements (collectively,
      the “Credit Facility Agreements”). 

    

    The
      Mortgagee hereby confirms that it shall provide the credit facility to the
      Mortgagor pursuant to the Credit Facility Agreements and permit the Mortgagor,
      subject to the terms of the Credit Facility Agreement, to use the credit
      facilities for the use of RMB short-term loan, foreign currency short-term
      loan,
      bank’s acceptance bill and settlement. 

     

    Section
      2
      Security Scope 

    

    The
      obligations covered by the Agreement are: the outstanding loan obligations
      up to
      RMB 80 million owed by the Mortgagor to the Mortgagee incurred during September
      27, 2007 to September 24, 2008 (the “Secured Obligations”). 

    

    The
      Secured Obligations shall include all principal, interest, damage and related
      costs (including, but not limited to attorney’s fee, notarization fee and
      execution fee, etc.).

    

    Section
      3
      Secured Liabilities 

    

    Should
      the Mortgagor default for failing to make mortgage payments due under the Credit
      Facility Agreements, the Mortgagee has the right to foreclose on the
      collateral.

     

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

    
Section
      4
      Settlement Date

    

    The
      settlement date for the Secured Obligations shall be the earlier of (i)
      September 24, 2008 as provided in Section 2; or (ii) the date when the amount
      of
      the Secured Obligation can be determined pursuant to the applicable laws.

    

    Section
      5
      Collaterals

    

    The
      assessed value of the collateral is RMB 93.75 million. If at any time before
      the
      full repayment of the Secured Obligations, the total value of the collateral
      decreases and is insufficient to secure all Secured Obligations, the Mortgagee
      shall have the rights to request the Mortgagor to recover the value of the
      collaterals or provide additional collaterals acceptable to the Mortgagee with
      value equals to the decreased value. 

    

    In
      case
      the collaterals are the properties of which the circulation is restricted,
      the
      Mortgagor shall coordinate with the Mortgagee to go through examination,
      approval and registration formalities in accordance with the stipulations by
      law.

    

    If
      the
      value of the collaterals decreases due to natural disaster, unexpected events,
      torts or other reasons, the Mortgagor shall take necessary actions to prevent
      further damage and shall provide written notice to the Mortgagee promptly.
      

     

    Section
      6
      Possession of the Collaterals 

    

    The
      collateral under the Agreement shall be possessed by the Mortgagor but the
      title
      and other ownership documents shall be possessed by the Mortgagee. The Mortgagor
      agrees to accept and effectively coordinate the examination to the collateral
      by
      the Mortgagee and its delegated organizations and individuals at any time.
      The
      Mortgagor shall properly keep and maintain the collateral and take effective
      measures to safeguard the safety and completeness of the collateral. The
      collateral shall not be transferred, lend, leased, or disposed by the Mortgagor
      without prior written consent of the Mortgagee, otherwise the Mortgagee is
      entitled to declare such activities to be invalid and take the remedies
      specified under section 12. 

    

    Section
      7
      Insurance for the Collaterals 

    

    The
      Mortgagor shall insure the collateral with an insurer in such manner and for
      a
      term agreed upon by the Mortgagor and the Mortgagee. The coverage for the
      insurance shall be no less than the book value of the collaterals. The insurance
      policy shall comply with the requirements of the Mortgagee and contain no
      restrictive clauses which impair the interests of the Mortgagee.

    

    Before
      repaying off the Secured Obligations, the Mortgagor shall not cease, terminate
      or amend the insurance policy by any reasons and shall take all reasonable
      and
      necessary measures to maintain the validity of the insurance policy. In case
      the
      Mortgagor fails to purchase insurance for the collaterals or breaches the
      aforesaid stipulation, the Mortgagee is entitled to purchase insurance or
      continue to purchase insurance for the collaterals. In such occasion, the
      insurance fee shall be borne by the Mortgagor.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
Within
      10
      days after execution of the Agreement, the Mortgagor shall provide the Mortgagee
      the original of the insurance policy for the collaterals and transfer the
      insurance rights to the Mortgagee. 

    

    In
      case
      the collaterals include any machinery equipments which have not been installed,
      after completion of installation of those equipments, the Mortgagor shall handle
      insurance formalities for those equipments according to stipulations under
      this
      Section.

    

    Section
      8
      Mortgage Registration 

    

    The
      Mortgagor shall make the necessary filing with the relevant government authority
      for registration of the collaterals within ten days after the Agreement is
      entered into. After filing the registration formalities for the collaterals,
      the
      Mortgagor shall provide the duplicate of the relevant registration certificate
      to the Mortgagee within three days. In case the collaterals include any
      machinery equipments which have not been installed, within ten days after
      completion of installation of those equipments, the Mortgagor shall make the
      necessary filing with the relevant government authority for registration of
      those equipments.

    

    Section
      9
      Execution of Mortgage Rights

    

    Should
      the Mortgagor default for performing its obligations due under the Credit
      Facility Agreements, the Mortgagee shall have the right to convert or sell
      the
      collaterals at the agreed price. If the price is not agreed, the Mortgagee
      may
      apply with the court to auction or sell the collateral. The amount from disposal
      of the collaterals shall set-off the debts under the Credit Facility Agreements
      after paying the disposal fees and fees payable by the Mortgagor to the
      Mortgagee under this Agreement. When the Mortgagee claims to execute the
      mortgage rights, the Mortgagor shall not refuse by any excuses. 

    

    Section
      10 Relationship between the Mortgagee Agreement and the Credit Facility
      Agreement 

    

    The
      Agreement is independent from the Credit Facility Agreement and this Agreement
      shall not be voided or revoked because of the unenforceability of the Credit
      Facility Agreement. The parties to the Credit Facility Agreement terminate
      the
      Credit Facility Agreement or make it expire in advance, this Agreement shall
      still be valid and the Mortgagor shall be liable for the debts occurred and
      losses caused by the Mortgagor to the Mortgagee.

    

    Amendment
      to the Credit Facility Agreement and to the letter of credit opened and
      guarantee letter issued in accordance with the Credit Facility Agreement require
      no written consent of the Mortgagor who shall be liable for the amended Credit
      Facility Agreement and the obligations of the Mortgagor to the Mortgagee due
      to
      the amended letter of credit and guarantee letter.

    

    The
      adjustment to the credit line by the Mortgagee in accordance with the Credit
      Facility Agreement and assignment of the rights and obligations under the Credit
      Facility Agreement by the Mortgagee to other branches of Bank of China or
      assignment of credit rights by the Mortgagee under the Credit Facility Agreement
      require no written consent of the Mortgagor whose liabilities shall not
      decreased or exempted thereof. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
Section
      11 Representation and Warranties

    

    The
      Mortgagor hereby represents and warrants that

    

    
      	1.  	
              Among
                other things, that it is duly organized and in good standing under
                Chinese
                laws, and has legal ownership of or right to dispose the collateral.
                

            

    

    

    
      	2.  	
              No
                other co-owners exist on the collaterals, or though co-owners exist
                on the
                collaterals, the Mortgagor has obtained all written permit from all
                other
                co-owners. Such written permit has been delivered to the Mortgagee
                before
                conclusion of this Agreement.

            

    

    

    
      	3.  	
              It
                has fully understood the Credit Facility Agreement. The execution
                and
                performance of this Agreement are voluntary and true expression of
                intent
                of the Mortgagor. The legal representative or authorized representative
                who executes this Agreement on behalf of the Mortgagor has fully
                obtained
                the lawful and valid corporate authorization. Execution and performance
                of
                this Agreement will not violate any contracts, agreements or other
                legal
                documents having legal binding effect on the Mortgagor. The Mortgagor
                has
                obtained or will obtain all necessary permit, license, record or
                registration for this mortgage.

            

    

    

    
      	4.  	
              All
                documents and materials provided by the Mortgagor to the Mortgagee
                are
                true, complete, accurate and valid.

            

    

    

    
      	5.  	
              The
                Mortgagor has not disguised, as of the date when this Agreement is
                entered
                into, any mortgage, pledge, lien or other securities existing on
                the
                collaterals. 

            

    

    

    
      	6.  	
              It
                shall immediately inform the Mortgagee of dissolution, bankruptcy
                of the
                Mortgagor and occurrence of other events which will have adverse
                impact on
                the financial status of the Mortgagor or creation of material new
                obligations on the collaterals.

            

    

    

    
      	7.  	
              In
                case the collaterals are buildings under construction, no preemptive
                rights of a third party for payment exist on such collaterals. In
                case
                such preemptive rights of a third party exist, such third party will
                issue
                a written statement to waive such preemptive
                rights.

            

    

    

    Section
      12 Events of Default

    

    After
      conclusion of this Agreement, in case the mortgage rights can not be realized
      because the Mortgagor refuses or delays to go through registration formalities
      or due to other reasons, the Mortgagor, if he is the debtor, shall be liable
      to
      the Mortgagee for the Secured Obligations; if the Mortgagor is a third party,
      the Mortgagor shall be severally and jointly liable for the Secured Obligations
      under the Credit Facility Agreement. 

    

    Any
      of
      the following events shall constitute the breach of contract by the
      Mortgagor:

    

    
      	1.  	
              transferring,
                leasing, lending, reconstruction or disposing of all or some of the
                collaterals by other means at will in violation of the stipulations
                specified under Section 6;

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	2.  	
              preventing
                the Mortgagee from disposing of the collaterals in accordance with
                this
                Agreement by any means;

            

    

    

    
      	3.  	
              refusing
                or delaying to coordinate the Mortgagee to renew the registration
                of
                mortgage so as to invalidate the mortgage before full repayment of
                the
                Secured Obligations;

            

    

    

    
      	4.  	
              the
                insurer refuses to compensate the destroy or loss of the collaterals
                occupied by the Mortgagor due to the Mortgagor has not purchased
                insurance
                for the collaterals; and

            

    

    

    
      	5.  	
              Any
                representation furnished by the Mortgagor under this Agreement proves
                to
                be incorrect or the Mortgagor breaches any of its
                representations/warranties under this
                Agreement.

            

    

    

    In
      the
      event of breach of contract by the Mortgagor, the Mortgagee is entitled to
      take
      one or all of following actions:

    

    
      	1.  	
              reducing
                or canceling the line of credit;

            

    

    

    
      	2.  	
              declaring
                early expiration of the Loan Agreement and the Credit Facility Agreement
                entered into between the Mortgagor and the Mortgagee;
                

            

    

    

    
      	3.  	
              requiring
                the Mortgagor to compensate the Mortgagee all and any direct or indirect
                losses suffered therefrom;

            

    

    

    
      	4.  	
              offsetting
                the money of the Mortgagor saved in the Mortgagee or other branches
                of
                Bank of China against the Secured Obligations.

            

    

    

    Section
      13 Fees 

    

    All
      costs
      incurred in connection with the Agreement or the collateral thereunder shall
      be
      borne by the Mortgagor.

    

    Section
      14 Offset and Reservation of Rights 

    

    Unless
      the Mortgagee agrees otherwise, the Mortgagor has no rights to offset any
      payment made to the Mortgagee.

    

    Any
      tolerance, extension and preference given by the Mortgagor to the Mortgagee
      or
      any delay to execute the rights under this Agreement by the Mortgagee shall
      not
      affect, impair or restrict any enjoyable rights of the Mortgagee according
      to
      this Agreement and other laws and regulations, nor be deemed a waiver of the
      aforesaid rights of the Mortgagee under this Agreements, nor exempt any
      obligations of the Mortgagor under this Agreement. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
Section
      15 Amendment, Termination and Interpretation of the Agreement

    

    This
      Agreement may be amended, supplemented or terminated based on mutual written
      agreement between both Parties. Any amendments and supplements to this Agreement
      shall constitute an integral part of this Agreement.

    

    Any
      matters that are not covered by this Agreement shall be interpreted or handled
      according to the relevant provisions of the Credit Facility
      Agreements.

    

    Any
      unenforceable provision of this Agreement will not affect the enforceability
      of
      all the remaining provisions of this Agreement. 

    

    Section
      16 Application of Laws, Disputes Resolution and Jurisdiction

    

    The
      Agreement is governed by the laws of the People’s Republic of
      China.

    

    Disputes,
      which cannot be settled through consultation, shall be adjudicated by the court
      which has the jurisdiction pursuant to the Credit Facility Agreements.

    

    Section
      17 Attachments to the Agreement

    

    Attached
      to this Agreement are: (i) list of collaterals; (ii) ownership certificate
      of
      collaterals; (iii) original copies of insurance policies of collaterals; (iv)
      mortgage registration certificate; and (v) assessment reports of collaterals.
      These attachments shall be integral part of this Agreement. 

    

    Section
      18 Effectiveness of the Agreement

    

    The
      Agreement shall take into effect after (i) signature by the legal
      representatives or authorized representatives of both Parties, affixed with
      corporate seals; and (ii) registration by the Mortgagor. 

    

    Section
      19
      Special
      Note

    

    The
      Parties have conducted sufficient negotiations on all terms of this Agreement.
      The Mortgagee has reminded the Mortgagor of paying special attentions to all
      the
      terms regarding the rights and obligations of both Parties and of understanding
      these terms comprehensively and accurately. Upon the request of the Borrower,
      the Mortgagee has respectively informed and explained the aforesaid terms to
      the
      Mortgagor. 

    

    
      	 	
              Jinzhou Halla Electrical Equipment Co., Ltd.

            
	 	
              /s/
                Yuncong Ma

            
	 	
              Seal

            
	 	
              September
                27, 2007

            
	 	
              Place:
                Jinzhou Tiebei Branch

            
	 	 
	 	
              Bank of China (Jinzhou Tiebei Branch)

            
	 	
              /s/
                Jun Wang

            
	 	
              Seal

            
	 	
              September
                27, 2007

            
	 	
              Place:
                Jinzhou Tiebei Branch

            

    

     

    
      
        
        

      

      
        6

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