Document:

EXHIBIT
      10.25

     

    Loan
      Contract

    

    Contract
      No.: Year 2005 Shang Zi No. 1005470046

    

     

    Lender:
      Shenzhen Honggang Branch of China Merchants Bank ("Party
      A")

    

    Borrower:
      Winner Industries (Shenzhen) Co., Ltd. ("Party B")

     

    Whereas
      Party B has applied to Party A for working capital loan for the purpose of
      turnover of working capital (the "Loan")
      and,
      upon examinations, Party A has agreed to grant the Loan to Party B. Parties
      A
      and B, after thorough negotiations, hereby enter into this Contract subject
      to
      the following terms and conditions and in accordance with relevant laws and
      regulations: 

     

    
      	1.	
              TYPE
                OF THE LOAN

            

    

    The
      type
      of the Loan is working capital loan.

    

    
      	2.	
              CURRENCY
                AND AMOUNT OF THE LOAN

            

    

    The
      Loan
      is RMB 4,000,000 yuan only.

    

    
      	3.	
              PURPOSE
                OF THE LOAN

            

    

    The
      Loan
      shall be used for turnover of working capital only. Party B shall not change
      the
      purpose of the Loan without written consent from Party A.

    

    
      	4.	
              TERM
                OF THE LOAN

            

    

    
      The
        Loan
        is granted for a term of 6 months, commencing from November 7th
        2005 to
        May 7th
        2006. If
        the actual drawdown date of the Loan is different from the above-mentioned
        commencement date, the commencement and maturity dates of the Loan shall
        be the
        dates prescribed in the relevant certificate of
        indebtedness.

    

    

    
      	5.	
              INTEREST
                RATE AND INTEREST

            

    

    
      	
            	5.1	
              Interest
                rate: Interest of the Loan is calculated at the rate of 5.22 % per
                annum.

            

    

    
       

    

    
      The
        interest rate of the Loan shall be finally confirmed by the rate stated on
        the
        certificate of indebtedness.

    

     

    If
      Party
      B changes the purpose of the Loan, Party A is entitled to charge interest on
      the
      misused portion of the Loan at the rate equaling to 2 times of the normal Loan
      interest rate based on misused days.

     

    If
      Party
      B fails to repay the Loan before the due date, Party A is entitled to charge
      interest on the amount in default at the rate equaling to 1.5 times of the
      normal Loan interest rate.

     

    If
      both
      events above-mentioned occur simultaneously, Party B should impose penalty
      based
      on the breach which is more severe instead of based on both events.

     

    If
      the
      People’s Bank of China changes the lending rate during the term of the Loan, the
      interest of the Loan shall be calculated in accordance with the provisions
      relating to such change.

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    

    
      	
            	5.2	
              Calculation
                of interest: Interest shall accrue from the drawdown date of the
                Loan on
                the basis of the actual amount granted and the actual days elapsed
                and
                shall be calculated once a month at the 20th day of each
                month.

            

    

    

    
      	
            	5.3	
              Payment
                of interest: Party B shall pay the interest on each interest calculation
                date. Party A may deduct the interest directly from Party B’s deposit
                account. If Party B fails to pay the interest by the time prescribed,
                Party A is entitled to charge compound interest on the interest in
                default.

            

    

    

    
      	6.	
              GUARANTEE
                CLAUSE

            

    

    
      	
            	6.1	
              The
                principal and interest of the Loan and all other relevant expenses
                hereunder shall be guaranteed by Winner Medical & Textile Ltd.
                Jingmen, Winner Medical & Textile Ltd. Tianmen, Winner Medical &
                Textile Ltd. Yichang under an Irrevocable Letter of Guarantee issued
                in
                favor of Party A; and

            

    

    

    
      	
            	6.2	
              The
                Loan under this Contract shall be secured by the collateral, i.e.,
                real
                properties, to which Winner Industries (Shenzhen) Co., Ltd. has title
                and
                the two parties shall enter into a Mortgage Contract
                separately.

            

    

     

    
      
        	
              	6.3	
                Other
                  enforcement of guarantee: Jianquan Li provides limitless personal
                  liability guarantee.

              

      

    

     

    
      	7.	
              RIGHTS
                AND OBLIGATIONS OF PARTY B

            

    

    
      	
            	7.1	
              Party
                B shall have the following rights:

            

    

    
      	
            	7.1.1	
              To
                draw down and use the whole of the Loan according to this
                Contract;

            

    

    
      	
            	7.1.2	
              To
                refuse to accept any conditions other than those set forth
                herein;

            

    

    
      	
            	7.1.3	
              To
                assign the debts to a third party after obtaining consent from Party
                A.

            

    

    

    
      	
            	7.2	
              Party
                B shall undertake the following
                obligations:

            

    

    
      	
            	7.2.1	
              It
                shall provide such true documents and materials as Party A requires
                and
                the information on all its bank accounts, including the banks with
                which
                Party B maintains such accounts, the account numbers and the balances
                of
                its deposits and loans, and it shall also give cooperation in Party
                A's
                investigations, reviews and
                examinations;

            

    

    
      	
            	7.2.2	
              It
                shall accept Party A’s supervision over its use of credit facilities,
                operations and financial
                activities;

            

    

    
      	
            	7.2.3	
              It
                shall use the Loan for the purpose prescribed in this
                Contract;

            

    

    
      	
            	7.2.4	
              It
                shall make timely and full payment of the principal and interest
                of the
                Loan as agreed herein;

            

    

    
      	
            	7.2.5	
              It
                shall obtain written consent from Party A before transferring the
                debts
                hereunder, in whole or in part, to a third
                party;

            

    

    
      	
            	7.2.6	
              It
                shall forthwith notify Party A of any occurrence of the following
                events
                and make every effort to take measures, on Party A's demand, for
                securing
                timely and full payment of the principal and interest of the Loan
                and all
                other relevant expenses hereunder: 

            

    

    
      	
            	7.2.6.1	
              It
                suffers grave financial loss, asset damage or other financial
                distress;

            

    

    
      	
            	7.2.6.2	
              It
                offers a loan or guarantee or puts its property (right) in mortgage
                (pledge), for the benefits of a third party or to keep that party
                harmless
                to any loss;

            

    

    
      	
            	7.2.6.3	
              Occurrence
                of changes like amalgamation (merger), division, reorganization,
                equity
                (cooperative) joint venture, transfer of equity, transformation into
                shareholding company, etc.;

            

    

    
      	
            	7.2.6.4	
              It
                winds up its business, has its business license revoked or cancelled,
                has
                filed or been presented the bankruptcy or dissolution petition and
                so
                forth;

            

    

    
      	
            	7.2.6.5	
              Its
                controlling shareholder and other affiliates suffer great difficulty
                in
                business or financial condition which affects its normal
                operation;

            

    

    
      	
            	7.2.6.6	
              It
                concludes material connected transactions with its controlling shareholder
                and other affiliates which affect its normal
                operation;

            

    

    
      	
            	7.2.6.7	
              It
                is involved in any litigation or arbitration or imposed on any criminal
                or
                administrative penalty, having material adverse effects on its business
                or
                property;

            

    

    
      	
            	7.2.6.8	
              Other
                material events which are likely to affect its solvency take
                place.

            

    

     

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    
      	8.	
              RIGHTS
                AND OBLIGATIONS OF PARTY A

            

    

    
      	
            	8.1	
              Party
                A shall have the following rights:

            

    

    
      	
            	8.1.1	
              To
                require Party B to make payment of the principal and interest of
                the Loan
                when they become due;

            

    

    
      	
            	8.1.2	
              To
                require Party B to provide any information relating to the
                Loan;

            

    

    
      	
            	8.1.3	
              To
                look into the operations and financial activities of Party
                B;

            

    

    
      	
            	8.1.4	
              To
                supervise Party B on its usage of the Loan for the purpose prescribed
                herein;

            

    

    
      	
            	8.1.5	
              To
                deduct the principal and interest of the Loan directly from Party
                B’s
                account;

            

    

    
      	
            	8.1.6	
              To
                require Party B to prepay the Loan before due date or stop Party
                B from
                making further drawdown in accordance with the provisions hereof
                if Party
                B is in default of performance of its obligations
                hereunder;

            

    

    
      	
            	8.1.7	
              To
                require Party B to pay in full the principal and interest of the
                Loan and
                all other relevant expenses hereunder immediately, to transfer all
                the
                debts hereunder to an assignee acceptable to Party A, or to
                provide/increase security acceptable to Party A if Party B is found
                to
                have been in any of the situations specified in Clause
                7.2.6.

            

    

    

    
      	
            	8.2	
              Party
                A shall undertake the following
                obligations:

            

    

    
      	
            	8.2.1	
              To
                grant the Loan to Party B upon the terms stated in this
                Contract;

            

    

    
      	
            	8.2.2	
              To
                keep Party B’s indebtedness, financial, production and operational
                conditions confidential unless otherwise required by
                law.

            

    

    

    
      	9.	
              PARTY
                B HEREBY WARRANTS THAT:

            

    

    
      	
            	9.1	
              It
                is an enterprise duly established and lawfully existing in accordance
                with
                the laws of China with the status of enterprise legal person and
                the full
                capacity of civil disposition to execute and perform this
                Contract;

            

    

    

    
      	
            	9.2	
              It
                executes and performs this Contract with proper authorization from
                its
                board of directors or any other
                authority;

            

    

     

    
      	
            	9.3	
              All
                the documents, information and instruments it has provided concerning
                itself, the guarantor, the mortgagor (the pledgor) and the security
                (the
                collateral) are true, accurate, complete and valid, and do not contain
                any
                material mistakes with reference to the facts or omit any material
                facts;

            

    

    

    
      	
            	9.4	
              At
                the time of signing of this Contract, there is no litigation, arbitration
                or criminal or administrative penalty which has material adverse
                effects
                on Party B or its major assets, nor the occurrence of such litigation,
                arbitration or criminal or administrative penalty is expected during
                performance of this Contract, and Party B shall forthwith notify
                Party A
                of any occurrence of such litigation, arbitration or criminal or
                administrative penalty;

            

    

    

    
      	
            	9.5	
              It
                will keep its operations in full compliance with the national laws
                and
                regulations, conduct business within the business scope prescribed
                in its
                Business License for Enterprise Legal Person, and keep the registration
                of
                enterprise (legal person) in force by going through the annual examination
                formalities;

            

    

    

    
      	
            	9.6	
              It
                will maintain or improve its current operation and management, and
                ensure
                that its existing assets remain stable or appreciate in value; it
                will not
                waive its claim for the matured liabilities and dispose of its existing
                major assets for no consideration or in other improper
                manners;

            

    

    

    
      	
            	9.7	
              At
                the time of signing of this Contract, there occurs no material event
                which
                will affect Party B's performance of its obligations
                hereunder.

            

    

    

    
      	10.	
              PRE-REPAYMENT

            

    

    
      	
            	10.1	
              With
                the prior consent from Party A, Party B is allowed to make
                pre-repayment;

            

    

    

    
      	
            	10.2	
              Notwithstanding
                any pre-repayment by Party B, the interest shall be calculated pursuant
                to
                the provisions of this Contract.

            

    

     

    
      	11.	
              EXTENSION
                OF THE LOAN

            

    

    If
      Party
      B needs to procure extension of the Loan on its failure to repay the Loan
      hereunder when it becomes due, it shall apply in writing to Party A one month
      before the expiry date of this Contract. If Party A agrees to extend the Loan
      after examinations, Parties A and B shall enter into an agreement for extension
      of the loan contract separately. If Party A does not agree to do so, this
      Contract shall remain in force. Party B shall pay the utilized portion of the
      Loan and the interests thereon in accordance with the provisions of this
      Contract.

    

    
      	12.	
              EXPENSES

            

    

    All
      expenses arising from matters relating to this Contract, such as investigation
      of creditworthiness, examination and notarization, and all expenses incurred
      by
      Party A in enforcing its claims on Party B's failure to pay the principal and
      interest of the Loan and other expenses payable hereunder when they become
      due,
      such as attorney’s fees, costs of the action and travel expenses, shall be borne
      by Party B. Party A is entitled to deduct such expenses directly from the
      accounts of Party B. In case of deficiency, Party B guarantees to make such
      payment in full as Party A may specify by notice without production of any
      proof
      by Party A.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    

    
      	13.	
              EVENTS
                OF DEFAULT AND HANDLING

            

    

    
      	
            	13.1	
              If
                Party B is found to have been in any of the following situations,
                it shall
                be deemed as an occurrence of events of
                default:

            

    

    
      	
            	13.1.1	
              In
                violation of Clause 7.2.1 hereof, Party B provides false materials
                to or
                withholds true important facts from Party A or does not give cooperation
                in Party A's investigations, reviews and examinations, and it fails
                to
                remedy such default within the reasonable period specified by Party
                A and
                such default is considered to be material;

            

    

    
      	
            	13.1.2	
              In
                violation of Clause 7.2.2 hereof, Party B refuses to accept or evades
                Party A’s supervision over its use of credit facilities, operations and
                financial activities and such default is considered to be
                material;

            

    

    
      	
            	13.1.3	
              In
                violation of Clause 7.2.3 hereof, Party B does not use the Loan for
                the
                purpose prescribed herein and such default is considered to be
                material;

            

    

    
      	
            	13.1.4	
              In
                violation of Clause 7.2.4 hereof, Party B fails to make timely and
                full
                payment of the principal and interest of the Loan as agreed
                herein;

            

    

    
      	
            	13.1.5	
              In
                violation of Clause 7.2.5 hereof, Party B transfers the debts hereunder
                to
                a third party without authorization, impairing the benefits of Party
                A;

            

    

    
      	
            	13.1.6	
              In
                violation of Clause 7.2.6 hereof, Party B fails to promptly notify
                Party A
                of any occurrence of the events prescribed therein or it fails to
                take
                measures for further securing payment of the debts hereunder as required
                by Party A after having knowledge of such occurrence or Party A considers
                that the Loan is insecure;

            

    

    
      	
            	13.1.7	
              Party
                B is in violation of Clauses 9.1, 9.2 and 9.4 hereof which impair
                Party
                A’s benefits or in violation of Clauses 9.3, 9.5, 9.6, and 9.7 hereof,
                Party B fails to remedy its default immediately on demand of Party
                A which
                impair Party A's benefits;

            

    

    
      	
            	13.1.8	
              Party
                B is in other situations that may, in the opinion of Party A, affect
                Party
                A's legal interests.

            

    

    

    
      	
            	13.2	
              If
                the guarantor is found to have been in any of the following situations,
                which Party A considers that it is likely to affect the capability
                of the
                guarantor to perform its obligations under the guarantee and requires
                the
                guarantor to eliminate such adverse effects, or requires Party B
                to
                increase or change the terms of guarantee, but the guarantor and
                Party B
                fail to do so, it shall be deemed as an occurrence of events of
                default:

            

    

    
      	
            	13.2.1	
              Any
                of the events similar to those described in Clause 7.2.6 hereof
                occurs;

            

    

    
      	
            	13.2.2	
              The
                guarantor has concealed the information on its capability to undertake
                the
                obligations of the guarantee or has not obtained authorization from
                the
                authority when executing the Irrevocable Letter of
                Guarantee;

            

    

    
      	
            	13.2.3	
              The
                guarantor fails to keep the registration in force by going through
                the
                annual examination formalities;

            

    

    
      	
            	13.2.4	
              The
                guarantor neglects to manage and enforce its claim for the matured
                liabilities, or disposes of its existing major assets for no
                considerations or in other improper
                manners.

            

    

    

    
      	
            	13.3	
              If
                the mortgagor (or the pledgor) is found to have been in any of the
                following situations, which Party A considers that the creation of
                mortgage (or pledge) is likely to end in failure or the value of
                the
                security (or the collateral) is likely to have a fall, and requires
                the
                mortgagor (or the pledgor) to eliminate such adverse effects, or
                requires
                Party B to increase or change the terms of guarantee, but the mortgagor
                (or the pledgor) and Party B fail to do so, it shall be deemed as
                an
                occurrence of events of default:

            

    

    
      	
            	13.3.1	
              The
                mortgagor (or the pledgor) has no title to or right to dispose of
                the
                security (or the collateral), or such title or right is in
                dispute;

            

    

    
      	
            	13.3.2	
              The
                mortgagor (or the pledgor) conceals the facts that the security (or
                the
                collateral) is jointly owned, leased, distrained or taken
                over;

            

    

    
      	
            	13.3.3	
              Without
                prior written consent from Party A, the mortgagor transfers, leases
                out,
                places a second mortgage on the security or disposes of the security
                in
                any other improper manner;

            

    

    
      	
            	13.3.4	
              The
                mortgagor fails to keep the security in safe custody or to maintain
                and
                repair the security properly, leading to substantial depreciation
                of the
                value of the security; or the mortgagor's actions jeopardize the
                security
                directly, leading to a fall in the value of the security, or the
                mortgagor
                fails to keep the security insured as required by Party A during
                the
                continuance of the mortgage.

            

    

    

    
      	
            	13.4	
              Should
                any of the events of default described in Clauses 13.1, 13.2 and
                13.3
                occurs, Party A is entitled to take the following measures separately
                or
                simultaneously and Party B shall not raise any objection
                thereto:

            

    

    
      	
            	13.4.1	
              To
                stop releasing the agreed and unused
                Loan;

            

    

    
      	
            	13.4.2	
              To
                declare the principal and interest of the Loan granted and relevant
                expenses immediately due and
                payable;

            

    

    
      	
            	13.4.3	
              To
                satisfy all the debts hereunder by deducting the same directly from
                Party
                B’s settlement account or other
                accounts;

            

    

    
      	
            	13.4.4	
              To
                make recourse pursuant to Clause 16
                hereof.

            

    

    

    
      	14.	
              MODIFICATION
                AND TERMINATION

            

    

    This
      Contract may be modified and terminated upon a written agreement between Parties
      A and B through negotiations. This Contract shall remain in force so long as
      no
      agreement has been reached. Neither party shall modify, amend or terminate
      this
      Contract without authorization.

    
       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

    

    

    
      	15.	
              MISCELLANEOUS

            

    

    
      	
            	15.1	
              During
                the valid period of this Contract, no relaxation, forbearance or
                indulgence by Party A in enforcing any of its interests or rights
                hereunder against any events of default or delay of Party B shall
                prejudice, affect or restrict Party A’s interests and rights as a creditor
                under this Contract and the relevant laws and regulations, nor shall
                it be
                taken as Party A’s approval to or permission of any events of default, or
                operate as waiver of its rights to take actions against existing
                or future
                defaults.

            

    

    

    
      	
            	15.2	
              Should
                this Contract or any provisions hereof become invalid under the law
                for
                whatsoever reasons, Party B shall continue to fulfill all its obligations
                to make payment. In such event, Party A is entitled to terminate
                this
                Contract and demand immediate payment of the principal and interest
                of the
                Loan and other relevant expenses hereunder from Party
                B.

            

    

    

    
      	
            	15.3	
              Each
                notice and demand to be given by Parties A and B hereunder shall
                be made
                in writing. Such notice or demand shall be deemed to have been duly
                served
                on Party B once the same is sent by telex, by telegram or to the
                post
                office.

            

    

    

    
      	
            	15.4	
              The
                certificate of indebtedness of the Loan and any supplemental written
                agreement entered into between Parties A and B through negotiations
                in
                respect of the matters not covered herein or changes shall serve
                as the
                schedule(s) to this Contract and constitute an inseparable part of
                this
                Contract.

            

    

     

    
      	16.	
              APPLICABLE
                LAW AND SETTLEMENT OF
                DISPUTES

            

    

    
      	
            	16.1	
              The
                execution, construction and settlement of disputes of this Contract
                shall
                be governed by the laws of the People’s Republic of China. The interests
                of Parties A and B are protected by the laws of the People’s Republic of
                China.

            

    

    

    
      	
            	16.2	
              Any
                dispute between Parties A and B in connection with the performance
                of this
                Contract may be settled by the two parties through negotiations.
                In case
                no settlement can be reached through negotiations, any of the Parties
                may
                submit the dispute to the People’s Court of the territory where Party A is
                located

            

    

    

    
      	
            	16.3	
              Having
                completed the formalities of notarization by Parties A and B for
                the
                enforcement of this Contract, Party A may directly apply to the People's
                Court of competent jurisdiction for enforcement with a view to claiming
                for the debts due and owed by Party B
                hereunder.

            

    

    

    
      	17.	
              EFFECTIVENESS
                OF THE CONTRACT

            

    

    
      	
            	17.1	
              This
                Contract shall take effect upon affixing the signatures and official
                seals
                by the authorized signatories of the two parties and completion of
                formalities of guarantee as described in Clause 6 hereof. This Contract
                shall remain effective until the date on which the principal and
                interest
                of the Loan and all other relevant expenses hereunder are settled
                in full.
                

            

    

    

    
      	
            	17.2	
              This
                Contract is executed in 6 counterparts with each having the same
                force.
                Party A, Party B and the guarantors each holds one thereof.
                

            

    

    

    

    
      	
              PARTY
                A: (OFFICIAL SEAL)

            	
              PARTY
                B: (OFFICIAL SEAL)

            
	
              Shenzhen
                Honggang Branch of China Merchants Bank

            	
              Winner
                Industries (Shenzhen) Co., Ltd.

            
	
              AUTHORIZED
                SIGNATORY: Yan

            	
              AUTHORIZED
                SIGNATORY: Jianquan Li

            
	
              DATE:
                November 7th 2005

            	
              DATE:
                November 7th 2005

            
	 	 
	 	 
	
              -5-EXHIBIT
      10.26

     

    MORTGAGE
      CONTRACT OF MAXIMUM AMOUNT

    

    

    Contract
      No.: Year 2005 Shang Zi No. 0005475013

    

    

    Mortgagee:
      Shenzhen Honggang Branch of China Merchants Bank ("Party
      A")

    

    Address:
      Ground Floor, Honggang Building, Honggang Road, Shenzhen City

    Legal
      Representative (Person-in-charge): Liu Jun    Position:
      President

    Telephone
      No.: 25871521

    

    Mortgagor:
      Winner Industries (Shenzhen) Co., Ltd.  ("Party
      B")

    

    Address:
      Winner Industrial Park, Bulong Road Longhua Town, Shenzhen City

    Legal
      Representative: Jianquan Li    Position: Board
      Chairman

    Telephone
      No.: 28138888

    

    Whereas:

    

    Party
      A
      and Party B, being the Facility Applicant, have entered into a Credit Facility
      Agreement (Contract No.: Year 2005 Shang Zi No. 0005475013) on June
      27th
      2005,
      pursuant to which Party A agrees to grant to Party B a comprehensive facility
      of
      up to RMB 25,000,000 yuan (the “Facility”) during the term of the Facility
      commencing from the July 12th
      2005 to
      July 12th
      2006
      (the “Availability Period”).

    

    Party
      B
      is willing to place a mortgage on the property to which it has title or of
      which
      it is rightfully entitled to dispose for the purpose of securing the full
      payment of all the debts owed to Party A by Party B under the Credit Facility
      Agreement on time. Upon examinations, Party A agrees to accept such property
      as
      security. Parties A and B, after negotiations on the basis of equality, hereby
      enter into this Contract subject to the following terms and in accordance with
      the relevant laws and regulations:

     

    
      	1.	
              SECURITY
                OFFERED BY PARTY B 

            

    

    

    Details
      in security list

     

    
      	2.	
              MORTGAGE
                FOR MAXIMUM AMOUNT OF THE
                FACILITY

            

    

    

    
      	
            	2.1	
              The
                Facility referred to herein shall mean the maximum extent of facility
                which Party A will grant to Party B during the Availability Period
                in
                respect of on-balance-sheet transactions such as continuing and revolving
                loans, trade financing and discount of bills (collectively referred
                to as
                the “Loans”) and off-balance-sheet transactions such as acceptance of
                commercial draft, opening of letters of credit and issue of confirmations
                pursuant to the Credit Facility
                Agreement.

            

    

    

    
      	
            	2.2	
              During
                the Availability Period, Party A may separately release the Loans
                or
                provide other facilities under the Facility to Party B. Party B may
                utilize the Facility available in various forms in a revolving manner.
                The
                details of each provision of the Loans or other facilities such as
                the
                amounts, periods and specific purposes shall be prescribed in the
                respective loan contracts, certificates of indebtedness or contracts
                for
                granting other facilities. Any of the above transactions may end
                on a date
                later than the expiry date of the Availability Period and both parties
                shall not raise any objection
                thereto.

            

    

    

    
      	
            	2.3	
              If
                any of the Loans or other facilities advanced to Party B by Party
                A under
                the Facility Agreement remains outstanding upon the expiry of the
                Availability Period, Party B shall guarantee the repayment of the
                same to
                the extent of the Facility by way of the security it has offered.
                

            

    

    

    
      	
            	2.4	
              Regarding
                the Facility provided by Party A to Party B by ways of acceptance
                of
                commercial draft, opening of letters of credit, issue of confirmations
                and
                so forth during the Availability Period, Party B shall guarantee
                the
                repayment of all the debts incurred by Party B (including but not
                limited
                to the principal and interest of the advances made by Party A and
                relevant
                expenses) by way of the security it has offered notwithstanding that
                Party
                A has not made any advances upon the expiry of the Availability
                Period.

            

    

    

    
      	
            	2.5	
              The
                guarantee given by Party B for the Facility by way of the security
                it has
                offered shall remain effective if Party A demands early payment from
                Party
                B in accordance with the Credit Facility Agreement and the respective
                specific contracts before the expiry of the Availability
                Period.

            

    

     

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

     

    
      	3.	
              COVERAGE
                OF THE MORTGAGE

            

    

    

    
      	
            	3.1	
              The
                mortgage constituted hereunder shall cover the outstanding principal
                of
                the Loans or other facilities advanced to Party B by Party A in accordance
                with the Credit Facility Agreement (up to the extent of the Facility
                of
                RMB 25,000,000) and interest thereon, default interest, default payments
                and all other relevant expenses such as those arising from the enforcement
                of the security, including but not limited to the
                following:

            

    

    

    
      	
            	3.1.1	
              the
                outstanding principal of the Loans advanced by Party A pursuant to
                the
                respective loan contracts or certificates of indebtedness concluded
                under
                the Credit Facility Agreement and interest thereon, default interest,
                default payments and relevant
                expenses;

            

    

    

    
      	
            	3.1.2	
              the
                outstanding principal of the advances made to Party B by Party A
                in
                fulfilling its obligations of making payment in respect of the commercial
                draft, letters of credit and confirmations under the Credit Facility
                Agreement and interest thereon, default interest, default payments
                and
                relevant expenses;

            

    

    

    
      	
            	3.1.3	
              all
                expenses accrued to Party A as a result of recovering the debts from
                and
                enforcing the security against Party
                B.

            

    

    

    
      	
            	3.2	
              If
                the outstanding principal of the Loans or other facilities advanced
                to
                Party B by Party A exceeds the extent of the Facility, the exceeding
                amount shall not fall within the guarantee given by Party B. The
                guarantee
                given by Party B shall only cover the outstanding principal of the
                Loans
                or other facilities that is within the extent of the Facility, interest
                thereon, default interest, default payments and other relevant
                expenses.

            

    

    

    
      	4.	
              INDEPENDENCE
                OF THE CONTRACT

            

    

    

    
      	
            	4.1	
              This
                Contract is independent and unconditional. Subject only to the completion
                of the formalities giving effect to this Contract as provided for
                in
                Clauses 6 and 19 hereof, this Contract shall be legally binding on
                Parties
                A and B. The validity of this Contract shall not be affected by the
                validity of the Credit Facility Agreement and the respective specific
                contracts and by any agreements or documents entered into between
                Party B
                and any entity. Nor shall it be altered as a result of fraud,
                reorganization, winding up, dissolution, liquidation, bankruptcy
                or
                whatever on the part of Party B. 

            

    

    

    
      	
            	4.2	
              The
                guarantee given by Party B hereunder shall not be affected if Party
                A
                stops releasing the unutilized portion of the Loans and/or other
                facilities to Party B and declares that the loan advanced shall be
                immediately due and payable or makes claims for the same pursuant
                to the
                Credit Facility Agreement.

            

    

    

    
      	5.	
              CUSTODY
                AND OBLIGATIONS IN RESPECT OF THE SECURITY AND DOCUMENTS OF TITLE
                TO OR
                RIGHTS OVER THE SECURITY

            

    

    

    
      	
            	5.1	
              During
                the term of the mortgage, the security shall be placed in custody
                of Party
                B or its attorney. Party B and its attorney shall keep the security
                in
                safe custody, be responsible for the maintenance and repair of the
                security and keeping the security in good order and condition, and
                at any
                time allow Party A to examine the
                security.

            

    

     

    The
      term
      of the mortgage shall mean the period commencing from the effective date of
      this
      Contract and ending on the date on which the principal and interest of the
      Facility and all other relevant expenses under the Credit Facility Agreement
      are
      paid off.

    

    
      	
            	5.2	
              During
                the term of the mortgage, Party B shall refrain from any acts that
                are
                likely to depreciate the value of the security. Should Party B commit
                such
                act, Party A shall be entitled to demand Party B to stop doing such
                act
                and restore the value of the security or provide additional security
                approved by Party A. Expenses arising from restoration of the value
                of the
                security or creation of new security shall be borne by Party
                B.

            

    

    

    
      	
            	5.3	
              During
                the term of the mortgage, Party B shall deliver to Party A the documents
                of title to or rights over the security and other relevant certifying
                documents. Party A shall keep such documents in safe custody or it
                shall
                bear the costs of replacement of the documents damaged or lost due
                to
                improper custody on the part of Party
                A.

            

    

    

    
      	6.	
              REGISTRATION
                OF SECURITY

            

    

    

    Parties
      A
      and B shall deliver this Contract and the relevant materials to the registration
      authority for registration of the security within 15 days from the execution
      date of this Contract.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    

    
      	7.	
              INSURANCE

            

    

    

    
      	
            	7.1	
              Party
                B shall keep the security insured against such risks as Party A may
                require with Shenzhen Branch of China Pacific Property Insurance
                Co.,
                Ltd., the insurer designated by Party A, for an amount not less than
                the
                full replacement cost thereof. The insurance policy shall be placed
                in the
                custody of Party A who shall be named as the first beneficiary therein.
                The insurance shall be maintained in full force and effect beyond
                the
                Availability Period agreed in the Credit Facility Agreement. Whenever
                the
                Availability Period is extended, Party B shall go through the formalities
                to extend the term of the insurance. In case of any damages to the
                security insured, Party A shall be given priority to recover the
                principal
                and interest of the Loans and the advances and all other relevant
                expenses
                under the Credit Facility Agreement out of the insurance
                indemnity.

            

    

    

    
      	
            	7.2	
              Party
                B shall extend the term of the insurance on the security if it fails
                to
                pay off all its debts under the Credit Facility Agreement upon the
                expiry
                of the Availability Period notwithstanding that the Availability
                Period
                has not been extended. If Party B fails to extend the term of the
                insurance on the security, Party A is entitled to do so on behalf
                of Party
                B and the expenses arising therefrom shall be borne by Party
                B.

            

    

    

    
      	8.	
              LIMITATIONS
                ON DISPOSAL OF THE SECURITY DURING THE TERM OF THE
                MORTGAGE

            

    

    

    
      	
            	8.1	
              During
                the term of the mortgage, Party B shall not transfer the security
                hereunder by ways of sale, exchange, gift or whatever without
                authorization. If Party B is required to transfer the security hereunder
                for consideration, it shall be subject to the following
                conditions:

            

    

     

    
      	
            	8.1.1	
              Party
                B shall obtain written consent from Party A and inform the transferee
                of
                the mortgage placed on the security to be transferred, otherwise
                the
                transfer shall be null and void;

            

    

    

    
      	
            	8.1.2	
              Party
                B shall, on demand of Party A, provide additional security if the
                security
                will be transferred at a price far less than its value and the proceeds
                from such transfer are insufficient to cover the Facility and all
                other
                expenses in full; and no such transfer shall be effected if Party
                B fails
                to do so;

            

    

    

    
      	
            	8.1.3	
              The
                proceeds from the transfer of the security shall be deposited directly
                in
                the bank account designated by Party A for the purpose of payment
                or early
                payment of the principal and interest of all the Loans or advances
                and all
                other relevant expenses under the Credit Facility Agreement. After
                Party B
                has deposited the full amount of the proceeds from the transfer of
                the
                security in the bank account designated by Party A, Party A may assist
                Party B to cancel the registration of the security and return to
                Party B
                the documents of title to or rights over the
                security.

            

    

    

    
      	
            	8.2	
              Without
                prior written consent from Party A, Party B shall not transfer, lease
                out,
                place a second mortgage on the security hereunder or dispose of the
                security hereunder in any other improper
                manner.

            

    

    

    
      	9.	
              All
                expenses in connection with matters such as insurance, notarization
                and
                registration hereunder shall be borne by Party
                B.

            

    

     

    
      	10.	
              Once
                this Contract has taken into effect, neither party shall modify or
                terminate this Contract without prior consent of the other party.
                This
                Contract shall only be modified or terminated upon a written agreement
                between the two parties through negotiations. All provisions hereof
                shall
                remain in force until the said written agreement has been
                reached.

            

    

     

    
      	11.	
              If
                Party B undergoes division or amalgamation during the continuance
                of this
                Contract, the organization(s) so formed thereafter shall be jointly
                or
                severally liable for Party B’s obligations hereunder. In the event that
                Party B is declared dissolved or bankrupt, Party A shall be entitled
                to
                dispose of the security prior to the expiry of this
                Contract.

            

    

     

    
      	12.	
              Party
                A may dispose of the security in accordance with the law upon occurrence
                of any of the following events:

            

    

    

    
      	
            	12.1	
              any
                of the events of default specified in Clause 10.1 of the Credit Facility
                Agreement occurs on the part of Party B and Party A exercises the
                right of
                recourse pursuant to the Credit Facility Agreement and the respective
                specific contracts;

            

    

    

    
      	
            	12.2	
              any
                of the events of default specified in Clause 10.3 of the Credit Facility
                Agreement occurs on the part of Party B, or Party B fails to perform
                its
                obligations hereunder, constituting default under the provisions
                hereof;

            

    

    

    
      	
            	12.3	
              Party
                B dies without appointing a successor or
                beneficiary;

            

    

    

    
      	
            	12.4	
              Party
                B’s successor or beneficiary waives its right of succession or to gift,
                and refuses to undertake the obligation to pay the principal and
                interest
                of loans;

            

    

    

    
      	
            	12.5	
              Party
                B winds up its business, has its business licence revoked or cancelled,
                has filed or been presented the bankruptcy or dissolution petition
                and so
                forth;

            

    

    

    
      	
            	12.6	
              the
                occurrence of any other matters that would jeopardize the enforcement
                of
                claims under the Credit Facility
                Agreement.

            

    

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    
      	13.	
              LIABILITY
                FOR DEFAULT

            

    

    

    
      	
            	13.1	
              If
                Party B violates Clause 5 hereof and fails to maintain and manage
                the
                security properly, resulting in depreciation of the value of the
                security,
                or Party B commits any acts that jeopardize the security directly,
                resulting in depreciation of the value of the security, and refuses
                to
                restore the value of the security as required by Party A or provide
                additional security acceptable to Party A, Party A shall be entitled
                to
                dispose of the security lawfully before the expiry of this
                Contract.

            

    

    

    
      	
            	13.2	
              If
                Party B violates Clause 8 hereof and disposes of the security without
                authorization, such disposal shall be null and void. Party A shall
                be
                entitled to require Party B to stop doing such tortious act immediately,
                restore the original security and, where the actual circumstances
                so
                require, provide other security acceptable to Party A, or Party A
                shall be
                entitled to dispose of the security lawfully before the expiry of
                this
                Contract.

            

    

    

    
      	
            	13.3	
              If
                Party B conceals the fact that the security is jointly owned, in
                dispute,
                attached, distrained, leased out or in mortgage, or the fact that
                Party B
                has no title to and right of disposition over the security, Party
                B shall
                be liable for the economic losses so incurred to Party
                A.

            

    

    

    
      	
            	13.4	
              If
                Party B fails to provide additional security on demand of Party A,
                Party B
                shall pay to Party A a default payment equivalent to 10 % of the
                Facility
                under the Credit Facility Agreement. Moreover, Party B shall indemnify
                Party A against any economic loss arising
                therefrom.

            

    

     

    
      	14.	
              If
                the security is attached or distrained by a People’s court as a result of
                Party A's application for enforcement of its right to the security
                hereunder due to the fact that the principal and interest of the
                Loans and
                advances and all other relevant expenses owed to Party A by Party
                B have
                not been paid on time upon expiry of the Availability Period, Party
                A
                shall be entitled to, from the date of such attachment or distraint,
                receive the natural yields derived from the security and the legal
                yields
                payable to Party B in respect of the
                security.

            

    

     

    
      	15.	
              ENFORCEMENT
                OF SECURITY

            

    

    

    
      	
            	15.1	
              Upon
                occurrence of any one or more of the events prescribed in Clauses
                12
                hereof, the right to the security may be enforced in the following
                ways:

            

    

    

    
      	
            	15.1.1	
              the
                security may be converted into money directly or put up for auction
                or
                sale according to the agreement entered into between Parties A and
                B;

            

    

    

    
      	
            	15.1.2	
              the
                security may be disposed of in such manner as stipulated in
                law.

            

    

    

    
      	
            	15.2	
              Party
                A shall be given priority to have its claims satisfied with the proceeds
                from the above-mentioned disposal of the security. Any excess of
                the
                proceeds over the total of the principal and interest of the Loans
                and
                advances and all other relevant expenses owed by Party B under the
                Credit
                Facility Agreement, shall be vested in Party B. In case of deficiency,
                Party A shall exercise the right of recourse to recover the
                deficit.

            

    

     

    
      	16.	
              LAPSE
                OF RIGHT TO THE SECURITY

            

    

    

    If
      the
      principal and interest of the Loans and advances owed by Party B under the
      Credit Facility Agreement have been paid off on time upon expiry of the
      Availability Period, Party A’s right to the security shall lapse automatically.
      Party A shall return to Party B the documents of title or rights or certifying
      documents and the insurance policies of the security which are in its custody.
      Party A may, at the request of Party B, assist Party B to cancel the
      registration of the security.

     

    
      	17.	
              During
                the continuance of this Contract, no relaxation, forbearance or indulgence
                by Party A in enforcing any of its interests or rights under the
                Credit
                Facility Agreement against any events of default or delay of Party
                B shall
                prejudice, affect or restrict Party A’s interests and rights as creditor
                under the relevant laws and regulations and this Contract, nor shall
                it
                operate as a waiver of Party A’s rights to take actions against existing
                or future defaults. 

            

    

     

    
      	18.	
              APPLICABLE
                LAW AND SETTLEMENT OF
                DISPUTES

            

    

    

    
      	
            	18.1	
              The
                execution, construction and settlement of disputes of this Contract
                shall
                be governed by the laws of the People’s Republic of
                China.

            

    

    

    
      	
            	18.2	
              Any
                dispute between Parties A and B in connection with the performance
                of this
                Contract may be settled by the two parties through negotiations.
                In case
                no settlement can be reached through negotiations, any of the Parties
                may
                submit the dispute to the People’s court of the territory where Party A is
                located.

            

    

     

    
      	19.	
              EFFECTIVENESS
                OF THE MORTGAGE CONTRACT

            

    

    

    This
      Contract shall take effect from the date on which the registration of the
      security comes into force upon affixing the signatures and official seals by
      the
      authorized signatories of the two parties. This Contract shall remain effective
      until the date on which the principal and interest of all the Loans and advances
      and all other expenses owed to Party A by Party B under the Credit Facility
      Agreement are settled in full.

     

    
      	20.	
              This
                Contract is executed in 7 counterparts. Party A, Party B, the guarantor
                and the registration authority each holds one thereof.
                

            

    

    

    

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    

    

    PARTY
      A:    (OFFICIAL
      SEAL)

    Shenzhen
      Honggang Branch of China Merchants Bank

    

    AUTHORIZED
      SIGNATORY: Lei Li

    

    

    PARTY
      B:    (OFFICIAL
      SEAL)

    Winner
      Industries (Shenzhen) Co., Ltd.

    

    AUTHORIZED
      SIGNATORY: Jianquan Li

    

    

    DATE:
      June 27th,
      2005

    

    Security
      List

    

    Real
      properties under the Certificate numbered: 

    Shen
      Fang
      Di Zi No. 5000148445

    Shen
      Fang
      Di Zi No. 5000148444

    Shen
      Fang
      Di Zi No. 5000148443

    Shen
      Fang
      Di Zi No. 5000148451

    Shen
      Fang
      Di Zi No. 5000148450

    Shen
      Fang
      Di Zi No. 5000148449

    Shen
      Fang
      Di Zi No. 5000148448

    Shen
      Fang
      Di Zi No. 5000148447

    Shen
      Fang
      Di Zi No. 5000148446

    Shen
      Fang
      Di Zi No. 5000148453

    Shen
      Fang
      Di Zi No. 5000148454

    
      	 	 	 	 
	 	 	 	 
	
              -5-

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