Document:

Exhibit
      10.8

    

      RMB
        Loan Agreement

      

      Borrower:
        Wuhan Blower Co., Ltd (hereinafter named as “Party A”)

       

      Address:
        Inside Cang Dao Science Park of Miaoshan Development Zone, Jiangxia District,
        Wuhan 

       

      Postal
        code: 430200

       

      Telephone:
        59700038

       

      Fax:
        59700033

       

      Legal
        representative: Xu Jie

       

      Deposit
        bank and account number: CITIC Wuhan (Zhuyeshan) Sub-branch,
        82200011201

      

      Lender:
        CITIC Wuhan Branch (hereinafter named as “Party B”)

       

      Address:
        CITIC Building, No 747, Jianshe Avenue, Wuhan

       

      Postal
        code: 430015

       

      Telephone:
        85355273

       

      Fax:
        85355273

       

      Legal
        representative/principal: Xu Xuemin

       

      Deposit
        bank and account number: 

       

      Place
        of
        Agreement: CITIC
        Bank

       

      Date
        of
        Agreement: September
        29th,
        2006

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      With
        reference to the relevant laws, rules and regulations in Contract Law of
        the
        People’s Republic of China and General Rules on Loan and after mutual
        consultation on the basis of equality, both parties sign this Agreement.
        

      

      Article
        1: Type of Loan

       

      Party
        B
        agrees to provide the following type I
        loan to
        Party A as stipulated in the Agreement:

       

      
        	I. Short-term loan	II. Medium term loan 	III. Long-term
                loan

      

       

      Article:
        2 Loan Amount and Length of Term

       

      The
        loan
        amount under this Agreement is RMB (in words): Nineteen
        Million Yuan.

       

       
        (in
        numerals): 19,000,000.

       

      The
        length of maturity under this Agreement is One
        Year,
        from
October
        13th,
        2006
        to
October
        12th,
        2007.

       

      If
        there
        is any conflict on the loan term between this Agreement and the debit note
        under
        this Agreement, the debit note prevails.

      

      Article
        3 Purpose of the loan

       

      Party
        A
        shall apply the loan under this Agreement for current
        capital,
        however, Party B will not bear any responsibilities for the purpose of the
        loan.

      

      Article
        4: Interest rate and interest of loan

       

      
        	1.	
                The
                  interest rate is determined according to the following first
                  type
                  for this loan:

              

      

       

      
        	
              	(1)	
                Fixed
                  interest rate of 6.732%.
                  If the interest rate of the People’s Bank of China is adjusted within the
                  term of this Agreement, the interest will not be calculated for
                  separate
                  phases.

              

      

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

       

      
        	
              	(2)	
                Apply
                  the floating interest rate at the statutory interest rate of corresponding
                  period and corresponding level of the People’s Bank of China floating
                  /
                  %
                  (upward/ downward), that is, the interest rate of loan is /
                  %
                  at the time when this Agreement takes effects. If the interest
                  rate of the
                  People’s Bank of China is adjusted within the term of this Agreement,
                  the
                  loan interest rate will be adjusted in this Agreement according
                  to the
                  adjusted corresponding statutory rate from the next
                  __/___(month/quarter/year).

              

      

       

      
        	2.	
                Interest
                  accrual of this loan shall be calculated from the actual date of
                  drawing
                  and interest is settled on a monthly basis. The date of interest
                  settlement is the 20th
                  of
                  every month.

              

      

       

      
        	3.	
                First
                  interest payment date of this loan is October
                  21st,
                  2006.
                  Party A shall deposit sufficient sums in Party B’s deposit bank before
                  each interest payment date for Party B to deduct the interest rate
                  in
                  time; if Party A chooses to make interest payments by other means,
                  it
                  shall ensure the interest is transferred into the account in time.
                  If
                  Party B fails to receive the full payment of the interest rate
                  at the
                  interest settlement date, it will be considered as Party A’s failure of
                  punctual payment.

              

      

       

      
        	4.	
                When
                  the last installment of the loan becomes due, the interest rate
                  shall be
                  settled together with the
                  principal.

              

      

      

      Article
        5: Deposit withdrawal

       

      
        	1.	
                Party
                  A shall withdraw the deposit according to the following plan and
                  the
                  planned withdrawal date shall be the working day of the
                  bank:

              

      

      

      
        	
                SN

              	 	
                Date
                  of withdrawal

              	 	
                Sum
                  of withdrawal

              	 
	
                1

              	 	 	
                October
                  13th,
                  2006

              	 	 	
                19,000,000

              	 

      

       

      
        	2.	
                Party
                  A shall withdraw the deposit according to the agreed withdrawal
                  date of
                  this Agreement, and decision to change the withdrawal time and/or
                  sum
                  shall be delivered to Party B seven (7) working days of the bank
                  before
                  the agreed withdrawal date. Party B agrees to offer Party A the
                  withdrawal
                  grace period of three (3) working days. Any loan not withdrawn
                  when the
                  grace period expires will be automatically cancelled and Party
                  A may not
                  withdraw again.

              

      

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

       

      
        	3.	
                Party
                  A shall submit the irrevocable notification of drawing, loan note
                  or other
                  drawing notes to Party B three business days of the bank before
                  the
                  scheduled date of drawing. Party B shall pay the loan after examining
                  and
                  approve the notification of drawing or other notes, which shall
                  be the
                  receipts of the loan.

              

      

       

      Article
        6: Means of repayment:

       

      
        	1.	
                Party
                  A shall repay the principal according to the following
                  plan:

              

      

      

      
        	
                SN

              	 	
                Date
                  of repayment

              	 	
                Sum
                  of repayment

              	 
	
                1

              	 	 	
                October
                  12th,
                  2007

              	 	 	
                19,000,000

              	 

      

      

      
        	2.	
                The
                  loan principal repaid by Party A shall be deposited to the designated
                  account of Party B, the account number is 7381910182200011201.

              

      

       

      
        	3.	
                If
                  Party A requires repayment in advance, he shall deliver to Party
                  B the
                  irrevocable plan of advanced repayment in written form 30 calendar
                  days
                  before the scheduled advanced repayment date and shall get the
                  consent of
                  Party B. Party B is entitled to charge the interest with reference
                  to the
                  length of maturity and interest rate agreed in this
                  Agreement.

              

      

      

      Article
        7: Loan extension

       

      If
        Party
        A fails to return the loan under this Agreement and requires extension of
        the
        loan, he shall submit the written application 30 working days of the bank
        before
        the loan maturity date and if Party B examines and consents, both parties
        may
        sign a loan extension agreement. If Party B disagrees, this Agreement remains
        valid.

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

       

      Article
        8: Guaranty of loan

       

      This
        loan
        is guaranteed by a mortgage and a third party guarantee. Party B and warrantor
        sign the security contracts 200619
        Mortgage No. 16 and 200619 BZ No. 0194 Guaranty Contractson
        the
        detailed guarantee issues under this Agreement.

      

      Article
        9: Party A statement and warranty

       

      
        	1.	
                Party
                  A is a Chinese legal person or other organization founded according
                  to the
                  law of the People’s Republic of China and possesses the obligatory civil
                  rights and behavioral competence to sign and implement this Agreement
                  and
                  is capable of bearing the civil responsibilities
                  independently.

              

      

       

      
        	2.	
                All
                  the documents, report forms and statements related with this loan
                  provided
                  by Party A are legal, authentic, accurate and
                  complete.

              

      

      

      Article
        10: Rights and obligations of Party A

       

      
        	1.	
                Party
                  A is entitled to withdraw and use the loan according to the maturity
                  and
                  purpose as agreed in this
                  Agreement.

              

      

       

      
        	2.	
                Party
                  A shall repay the principal and interest as agreed in this
                  Agreement.

              

      

       

      
        	3.	
                Party
                  A shall provide to Party B the report form and other documents
                  truly
                  reflecting its operation state and financial status regularly or
                  as
                  required by Party B. 

              

      

       

      
        	4.	
                During
                  the loan period, any significant changes in Party A’s managerial
                  decision-making, including but not limited to share transfer,
                  reorganization, coalescence, separation, shareholding system
                  transformation, joint venture, cooperation, joint operation, contracting
                  tenancy, operational range and registered capital modification,
                  etc and
                  other changes which may possibly affect the decision making of
                  Party B’s
                  rights and benefits shall be informed to Party B in written form
                  at least
                  30 calendar days in advance and achieve the previous written consent
                  of
                  Party B to fulfill the tender responsibilities of the loan or advanced
                  loan discharge or provide the guaranty approved by Party
                  B.

              

      

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

      
        	5.	
                Party
                  A shall actively cooperate with Party B to investigate, understand
                  and
                  supervise the operation status and loan use status. The expenses
                  incurred
                  by Party B as a result of Party A’s obstructive activities shall all be
                  borne by Party A.

              

      

       

      
        	6.	
                Without
                  previous written consent of Party B, Party A is not entitled to
                  transfer
                  or in the form of transfer the liabilities under this Agreement
                  by any
                  means.

              

      

       

      
        	7.	
                The
                  transfer, lease or the disposal of all or a significant part of
                  the assets
                  and business or business revenue by means of setting the guaranty
                  on the
                  liabilities other than which are under this Agreement shall be
                  in informed
                  to Party B at least thirty calendar days in advance and require
                  the
                  previous written consent from Party
                  B.

              

      

       

      
        	8.	
                If
                  any accidents which will exercise seriously negative influence
                  on the
                  liability implementation of this Agreement take place, including
                  but not
                  limited to the severe economic disputes, cessation of business,
                  going out
                  of business, bankruptcy, dissolution, business license withdrawal,
                  business annulment, financial status degeneration, etc., Party
                  A shall
                  inform Party B in written notice
                  immediately.

              

      

       

      
        	9.	
                In
                  case that the Guarantor suspends business, closes down business,
                  is
                  declared bankrupt, dissolves, is revoked of business license, is
                  revoked
                  of or loses profits, which results in the loss of part or the entire
                  capacity to guarantee the loan hereunder, or the value of the mortgaged
                  property, pledged property, or mortgage rights for the loan hereunder
                  decreases, Party A shall provide Party B with new guaranties acknowledged
                  by Party B.

              

      

       

      
        	10.	
                During
                  the loan period, any changes in Party A’s named legal representative, or
                  project principal’s, address, telephone, or fax shall be sent to Party B
                  within seven calendar days after the
                  changes.

              

      

      

      Article
        11 Rights and obligations of Party B

       

      
        	1.	
                Party
                  B is entitled to inspect and understand the business circumstances
                  and
                  loan service of Party A.

              

      

       

      
        	2.	
                Under
                  the prerequisite that Party A implements the obligation agreed
                  in this
                  Agreement and satisfies the money-lending condition, Party B shall
                  lend
                  the loan to Party A on time and in
                  full.

              

      

       

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

       

      
        	3.	
                Party
                  B shall keep the materials, documents and information provided
                  by Party A
                  confidential, except otherwise stipulated in the laws and regulations
                  for
                  query.

              

      

      

      Article
        12 Responsibility of breach of Agreement

       

      
        	1.	
                When
                  this Agreement enters into force, Party A and Party B shall both
                  perform
                  the obligations agreed to in this Agreement, the failure of either
                  party
                  to perform wholly or partially the agreed obligations shall bear
                  the
                  corresponding responsibility of breach of
                  Agreement.

              

      

       

      
        	2.	
                If
                  Party A fails to draw the loan within the agreed date in the Agreement,
                  Party B is entitled to charge a penalty according to the overdue
                  days and
                  the interest rate agreed in this
                  Agreement.

              

      

       

      
        	3.	
                If
                  Party B fails to provide the loan as agreed in the Agreement, Party
                  A is
                  entitled to require the payment of penalty according to the overdue
                  days
                  and the interest rate agreed in this
                  Agreement.

              

      

       

      
        	4.	
                If
                  any of the following circumstances occur, Party B is entitled to
                  terminate
                  any sum of money undrawn under this Agreement and require Party
                  A to
                  immediately repay the entire withdrawn loan, interest payable and
                  other
                  expenses. The day when Party B requires Party A to repay the above
                  payment
                  is the advanced maturity of the liability under this Agreement
                  and Party B
                  is entitled to directly deduct the sum from the Party B’s account
                  deposited by Party A to compensate the liability under this
                  Agreement.

              

      

       

      
        	
              	(1)	
                Party
                  A fails to repay the principal and interest of the loan under this
                  Agreement in time;

              

      

       

      
        	
              	(2)	
                Party
                  B fails to implement any one of the obligations agreed in Clause
                  3 to
                  Clause 9 of Article 10 of this
                  contact;

              

      

       

      
        	
              	(3)	
                The
                  certification and documents related with this loan submitted by
                  Party A to
                  Party B and the statements and warranty of Article 9 of this Agreement
                  are
                  proved to be unauthentic, inaccurate, incomplete or tending to
                  mislead;

              

      

       

      
        	
              	(4)	
                Party
                  A completely stops the repayment of liability or fails to expresses
                  the
                  failure of the mature liability
                  repayment;

              

      

       

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

       

      
        	
              	(5)	
                Cessation
                  of business, going out of business, bankruptcy, dissolution, business
                  license withdrawal, business annulment, severe economic disputes
                  and
                  financial status degeneration take place in Party
                  A;

              

      

       

      
        	
              	(6)	
                Changes
                  in address, range of business, legal representative and other issues
                  registered in business administration or the significant external
                  investment takes place, which will seriously influence or threaten
                  the
                  realization of Party B’s financial
                  claims;

              

      

       

      
        	
              	(7)	
                Other
                  accidents that threaten and harm or possibly threaten and harm
                  the Party
                  B’s rights and benefits.

              

      

       

      
        	5.	
                If
                  Party A fails to repay the loan as agreed in the Agreement, in
                  addition to
                  exercising the rights provided in Clause (4) of this Article, Party
                  B is
                  entitled to charge the extra penalty interest with another 50%
                  of the loan
                  interest agreed in the Agreement according to the actual overdue
                  days,
                  namely the penalty interest rate is 10.098%. The un-payable interest
                  of
                  the overdue loan shall be charged with compound interest with reference
                  to
                  the penalty interest rate agreed in this
                  clause.

              

      

       

      
        	6.	
                For
                  the un-payable interest by Party A in loan period, Party B is entitled
                  to
                  charge the compound interest according to the actual overdue days
                  on the
                  basis of the loan interest rate agreed in the
                  Agreement.

              

      

       

      
        	7.	
                For
                  the loan not used for the agreed purposes by Party A, in addition
                  to
                  exerting the rights agreed in Clause 4 of this Article, Party B
                  is
                  entitled to charge the penalty interest on the party in default
                  since the
                  embezzlement date with another 100% of the loan interest agreed
                  in the
                  Agreement according to the actual overdue days, namely the penalty
                  rate is
                  13.464%. The un-payable interest during the loan embezzlement period
                  shall
                  be charged with compound interest on the basis of the penalty interest
                  stipulated in this clause.

              

      

       

      
        	8.	
                All
                  the expenses of Party B to realize the creditor’s rights (including but
                  not limited to the legal fare, travel expense, retaining fee, etc)
                  shall
                  be borne by Party A.

              

      

       

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

       

      Article
        13 Continuity of obligations

       

      All
        the
        obligations of Party A under this Agreement possess the continuity and complete
        binding forces on his inheritor, agent, receiver, assignee and the merged,
        reorganized and renamed subject.

      

      Article
        14 Notarization

       

      If
        either
        party of this Agreement raises the notarization requirements, this Agreement
        shall be notarized in the national stipulated notary organ and the expense
        shall
        be borne by Party A.

      

      Article
        15 Other agreed issues

       

      
        
          

        

         

        
          
            

          

           

          
            
              

            

            
               

              
                
                  

                

                 

              

            

            ________________

             

          

        

      

      Article
        16 Applicable laws

       

      This
        Agreement is under the jurisdiction of the laws of the People’s Republic of
        China and has binding forces on both parties.

      

      Article
        17 Dispute solution

       

      Any
        disputes arising out of and related with this Agreement shall be negotiated
        by
        both parties for solution; the failure of which shall be solved through the
        following second
        means
        agreed by both parties;

       

      
        	1.	
                Apply
                  for arbitration by ___________Arbitration
                  Committee

              

      

       

      
        	2.	
                Bring
                  the lawsuit to the People’s Court where Party B is
                  located.

              

      

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

       

      Article
        18 Accumulative features of Party B’s rights

       

      Party
        B’s
        rights under this Agreement are cumulative, which will not affect or exclude
        any
        rights from Party A according to law and other contracts. Except otherwise
        expressed by Party B in written form, Party B’s nonuse, partial exercise and/or
        deferred exercise of their rights do not compose a waiver or partial waiver
        of
        their rights, nor will it influence, prevent or obstruct the continuous exertion
        or the exertion of other rights.

      

      Article
        19 Validation, modification and dissolution of the
        Agreement

       

      
        	1.	
                This
                  Agreement enters into force when Party A’s legal representative or the
                  entrusted agent and Party B’s legal representative or principal or
                  entrusted agent sign or stamp and with an official seal; if this
                  Agreement
                  is equipped with a guarantee, the guarantee enters into force since
                  the
                  valid date of the guarantee
                  contract.

              

      

       

      
        	2.	
                When
                  this Agreement enters into force, except otherwise agreed in this
                  Agreement, neither party of this Agreement is allowed to modify
                  or
                  dissolve the Agreement at will; if it’s necessary to modify or dissolve
                  the Agreement, it shall be consulted by both parties and the written
                  agreement shall be made.

              

      

      

      Article
        20 Others

       

      
        	1.	
                The
                  unexhausted issues in this Agreement may be written in other agreements
                  as
                  the attachment of this Agreement. Any attachment, modification
                  or
                  supplementation of this Agreement is an inseparable component of
                  this
                  Agreement and possess the same legal forces of this
                  Agreement.

              

      

       

      
        	2.	
                If
                  a certain clause of this Agreement or part of the content of a
                  certain
                  clause is considered invalid or will be invalid in the future,
                  this
                  invalid clause or the invalid part will not affect the validity
                  of this
                  Agreement and other clauses in this Agreement or other content
                  in that
                  clause.

              

      

       

      
        	3.	
                Upon
                  delivery, any notice, requirement or other communication related
                  with this
                  Agreement by Party B to Party A, including but not limited to the
                  telex,
                  telegram, fax, or letter, will be considered as received by Party
                  A; the
                  third day when the registered letter is delivered, it will be considered
                  as received by Party A.

              

      

       

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

       

      
        	4.	
                The
                  original of this Agreement is executed in /
                  originals
                  and
                  / for
                  each party.

              

      

       

      
        	Party A (Stamp) 	Party B (Stamp)
	Legal representative: /s/ Xu Jie 	Legal representative/principal: /s/
                Xu Xuemin
                
	(Signature or stamp of entrusted agent)
                	(Signature or stamp of entrusted
                agent)
	/s/
                Wuhan Blower Co., Ltd 	/s/ CITIC Wuhan
                Branch

      

       

      
        
          
          

        

        
          -11-Exhibit
        10.9

    

    CHINA
      CITIC BANK

     

    Contract
      No.: No. 16 Mortgage 200619

    

    MORTGAGE
      AGREEMENT OF MAXIMUM AMOUNT

     

    CHINA
      CITIC BANK Wuhan Branch

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    AGREEMENT
      OF MORTGAGE OF MAXIMUM AMOUNT

    

    Mortgager:
      Wuhan Blower Co., Ltd (Referred to as “Party A” hereunder)

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

    Post
      Code: 430200

    Tel:
      59700039

    Fax:
      59700010

    Legal
      Representative: Xu Jie

    Opening
      bank and Account Number: China CITIC Bank Zhuyeshan Branch;
      7381910182200011201

    

    Mortgagee:
      China CITIC Bank Wuhan Branch (Referred to as “Party B” hereunder)

    Address:
      CITIC Mansion, 747 Jianshe Avenue, Wuhan 

    Post
      Code: 430015

    Tel:
      027-85355111

    Fax:
      027-85355111

    Legal
      Representative/Principal: Xu Xuemin

    

    Debtor:
      Wuhan Blower Co., Ltd

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

    Post
      Code: 430200

    Tel:
      59700039

    Fax:
      59700010

    Legal
      Representative: Xu Jie

    Opening
      bank and Account Number: China CITIC Bank Zhuyeshan Branch; 7381910182200011201
      

    

    Signing
      Place: China CITIC Bank 

    Signing
      Date: September 29, 2006 

    
      
        
        

      

      
        -2-

        
          

        

      

       

    

    In
      order
      to ensure the enforcement of Party B's claims, Party A is willing to provide
      guaranty of mortgage of maximum amount for a series of debts between Party
      B and
      the debtor to the principal Agreement. For this reason,
      through
      friendly consultations conducted based on the principles of equality and mutual
      benefit, and in accordance with Contract
      Law of the People's Republic of China, The
      Guaranty Law of the People's Republic of China
      as well
      as other relevant laws and regulations, Party A and Party B have
      entered into agreement on the terms and conditions specified as
      below.

    

    Article
      1
      Definitions

     

    A
      mortgage of maximum amount as used in this Agreement means that Party A and
      Party B agree upon and set for the debtor a maximum amount for a series of
      debts
      occurring successively during a given period of time, and that Party A shall
      use
      the mortgaged property to provide Party B with the guaranty of the debtor’s
      performance of debts to the extent of the aforesaid maximum amount. The maximum
      amount is the total balance of debts (including or with liabilities) arising
      from all contracts between Party B and the debtor.

    

    Article
      2
      Principal Claims of Mortgage Guaranty

     

    Principal
      claims of mortgage guaranty used in this Agreement refer to debts occurring
      successively between August
      28, 2006
      and
      August 28, 2007,
      on the
      base of credit granting to the debtor by Party B, with the maximum amount of
      RMB
NINETEEN
      MILLION ONLY (
      in
      capital ). After Party A performs his guaranteed obligation, the maximum amount
      of guaranty would be deducted according to the actually fulfilled
      amount.

     

    Master
      contracts used in this Agreement shall be contracts, agreements or other legal
      documents derived from the debtor-creditor relationship between Party B and
      the
      debtor within the prescribed period and maximum amount.

    

    Article
      3
      Mortgaged Property

     

    Mortgaged
      property provided to Party B by Party A are the properties listed in Appendix
      (No.
      16, Mortgage 200619 )
      titled
“List of Mortgaged Property” to this Agreement, with a present value of RMB
THIRTY
      FOUR MILLION NINE HUNDRED FORTY TWO THOUSAND SIX HUNDRED YUAN ONLY
(
      in
      capital) and mortgage ratio of  %.
      Within
      the period of validity of this Agreement, shall the mortgage ratio exceed the
      above ratio for any reason, Party A is obliged to take remedial measures
      acceptable to Party B to reach or restore the aforestated ratio. 

    

    Article
      4
      Scope of Guaranty of Mortgage

     

    The
      scope
      of guaranty of mortgage includes the principal and the interest thereof, penalty
      interest, compound interest default
      fine, compensation for damage, and the cost of enforcing the right of the claim
      and mortgage (including but not limited to legal cost, attorney
      fees, traveling
      expenses etc). 

    

    Article
      5
      Period of Mortgage Right

     

    The
      term
      of mortgage right shall be two years from the date of maturity of the limitation
      of actions of the guaranteed claims.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    Article
      6
      Declaration and Warrant by Party A

     

    1.
      Party
      A has full, valid, and legal right of disposal over the mortgaged property
      under
      this Agreement. Shall any common ownership or co-ownership by shares exist
      in
      the property, such owners should agree clearly in writing that this Agreement
      is
      binding on them.

     

    2.
      Party
      A warrants that there is no ownership dispute, seal up, or restraint on the
      mortgaged property. 

     

    3.
      Party
      A is in full awareness of and agreement with all the terms and conditions set
      forth by the principal contract, and provide guaranty of its own will for the
      debtor of the principal contract. All intentions expressed by Party A hereunder
      are genuine.

     

    4.
      Setting the mortgage would neither encounter any restrictions, nor shall it
      cause any illegal matters. The property is free of any other property guaranty,
      or sufficient disclosure has been made to Party B when there are any other
      restrictions.

     

    5.
      All
      data and information offered by Party A concerning the mortgaged property are
      legal, genuine, exact and complete.

    

    Article
      7
      Party A’s Rights and Obligations

     

    1.
      Party
      A is to provide Party B with title certificate and other valid evidencing
      documents and relevant data, which would be in the custody of Party B after
      confirmation by both parties.

     

    2
      .Within
      the validity of the contract, Party A is supposed to timely notify Party B
      in
      writing on the information it knows or should know that may affect the mortgage
      right adversely. Such information includes but is not limited to stock right
      transfer, restructure, merger, split, shareholding reform, partnership,
      collaboration, consortium, contracting, lease, change of business scope and
      registered capital, major economic disputes, mortgaged property ownership
      disputes, going bankrupt, wind up, close down, dissolve, business license
      revoked, canceled, or the mortgaged property of maximum amount is subject to
      seal-up or property preservation measures by another lawsuit.

     

    3.
      Within
      the validity of this Agreement, prior to obtaining a consent in writing by
      Party
      B, Party A shall be forbidden to transfer, lease, re-mortgage or dispose
      otherwise of the whole or part of the mortgaged property. With the
      aforementioned consent, Party A is in agreement that Party B has the right
      to
      dispose of the property through any methods listed below, and help complete
      relevant formalities: 

     

    (1)
      Pay
      or pay in advance the principal, interest, and relevant fees and charges under
      the principal contract;

     

    (2)
      Convert it into time deposit and set the certificate of deposit as
      pledge;

     

    (3)
      Repair the mortgaged property to restore its original value;

     

    (4)
      Deposit with a third party named by Party B.

    

    When
      the
      mortgage right is exposed or will be exposed to any damage from a third party,
      Party A is obliged to take effective measures to avoid such damage.

     

    Party
      A
      should neither pose any obstacle to Party B’s disposal of the mortgaged property
      in compliance with the contract, nor take any actions that may hamper or delay
      the disposal of mortgaged property in accordance with the contract by Party
      B.
      Party A promises to offer active support as required by Party B to accelerate
      the enforcement of the mortgage right. 

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    Party
      A
      is entitled to cancel the contract when all debts under the principal contract
      are paid off by the debtor of the principal contract.

    

    Article
      8
      Party B’s Rights and Obligations

     

    1.
      Party
      B is entitled to dispose of the mortgaged property according to the stipulations
      of the contract if the debtor of principal contract fails to repay the principal
      and interest thereof in accordance with the principal contract upon the maturity
      of performing period of the debt or acceleration of maturity pursuant to
      relevant stipulations of the principal contract.

     

    2.
      If the
      proceeds from the disposal of the mortgaged property do not cover all the
      claims, Party B has the right to claim by law the difference on the debtor
      of
      the principal contract or Party A; if the proceeds exceed the claim, the balance
      shall be returned to Party A.

     

    3.
      Party
      B has the right to inspect the status of the mortgaged property at any time.
      

     

    Article
      9
      Maintenance of Mortgaged Property

     

    1.
      Party
      A shall have the obligation to maintain the mortgaged property intact and in
      good condition, pay various taxes and fees, lawfully and properly possess,
      use,
      manage and operate the mortgaged property in sound condition, and welcome and
      cooperate with Party B to check the condition of the mortgaged property at
      any
      time in the validity of the mortgage right.

     

    2.
      Within
      the validity of the mortgage right, if there is a decline, for which Party
      B is
      not held accountable, in the value of the mortgaged property, then Party A
      shall
      restore the value of the property as requested by Party B, or provide equivalent
      guaranty acceptable to Party B. Otherwise, Party A shall assume joint liability
      for a debt under this Agreement of the amount equivalent to the
      loss.

    

    Article
      10 Insurance of the mortgage 

     

    1.
      Within
      the validity of the mortgage right and prior to the full settlement of the
      claims, Party A is to arrange property insurance for the mortgaged property
      according to relevant laws as well as the insurance type and amount designated
      by Party B. Under no circumstance is Party B entitled to terminate or cancel
      the
      insurance as long as there still are any unsettled claims. Party A is to extend
      the insurance if the claims guaranteed by Party A have not been settled in
      full
      upon the expiration of the insurance.

     

    2.
      Within
      the validity of the mortgage right, Party A is to deliver the original insurance
      policy into the custody of Party B.

     

    3.
      Party
      A shall instruct the insurer to mark on the insurance policy the following
      statement: Party B is the first beneficiary of the insurance, and the insured
      is
      to transfer directly the insurance indemnity to the account designated by Party
      B upon the occurrence of an insured event. If insurance has been arranged for
      the mortgaged property with a first beneficiary other than Party B, it is
      required to name Party B as the first beneficiary by endorsement or
      alteration.

     

    4.
      In
      respect of insurance indemnity, Party A understands that Party B has the right
      to dispose of it through any of the methods hereunder, and would assist to
      complete the relevant formalities.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    (1)
      Pay
      or pay in advance the principal, interest, and relevant fees and charges under
      the principal contract;

     

    (2)
      Convert it into time deposit and set the certificate of deposit as
      pledge;

     

    (3)
      Repair the mortgaged property to restore its original value;

     

    (4)
      Deposit with a third party named by Party B;

     

    (5)
      Dispose of it when a qualified new guaranty has been provided by Party
      A.

    

    Article
      11 Registration of Mortgaged Property

     

    1.
      Party
      A and Party B shall register the mortgaged property at the legal departments
      responsible for the registration of mortgaged property within  
      working
      days after the signing of the contract; property that does not have such legal
      registration departments shall be registered at the notary office at the
      mortgager’s location. Party A shall deliver into the custody of Party B
      certificate for jus alias, original mortgage registration document, and other
      certificates of the mortgaged property on the day this Agreement takes
      effect.

     

    2.
      Within
      the validity of the contract, in transferring or altering the ownership or
      any
      right of the property with Party B’s consent in writing, the relevant party
      shall register such transfer or alteration within legal time limit, and deliver
      relevant certificates and documents after the alteration registration to the
      custody by Party B.

     

    3.
      Where
      the debtor has performed its obligation under the principal contract and this
      Agreement, Party B shall timely return certificate for jus alias, original
      mortgage registration document, and other certificates to Party A, and handle
      mortgage logout with Party A.

    

    Article
      12 Compensation by a Third Party

     

    1.
      Where
      the value of the mortgage declines due to a third party’s actions within the
      validity of the mortgage right, the third party shall deposit the compensation
      for damage to the account designated by Party B. Party A agrees that Party
      B
      shall dispose of the compensation by a method set forth by Article 10.4 and
      help
      conduct relevant procedures.

     

    2.
      Within
      the validity of the mortgage right, where the value of the mortgaged property
      is
      not enough to cover the principal, interest thereof, or relevant fees and
      charges under the principal contract due to the action of a third party, Party
      A
      shall renew the guaranty acknowledged by Party B, and the remaining of the
      previous mortgage shall resume the guaranty to claims. 

    

    Article
      13 Liability for Breach of Agreement

     

    1.
      After
      this Agreement enters into effect, Party A and Party B are to perform their
      obligations under this Agreement duly. Any party failing to perform its
      obligations hereunder in whole or in part shall be held accountable for the
      breach of Agreement as well as corresponding compensation.

     

    2.
      Party
      A shall be responsible for the compensation for the loss of Party B caused
      by
      any unreal, inaccurate, incomplete or purposely misleading statement of the
      declaration and warrant by Party A. 

     

    3.
      Party
      A is to cover all the losses sustained by Party B resulting from the invalidity
      of the contract caused by the fault of Party A.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    4.
      Shall
      any of the following occur within the validity of the contract, Party B is
      entitled to declare the expiration of all the principal contracts, and execute
      the mortgage right promptly:

     

    (1)
      Party
      B is not paid upon the maturity of the obligation performance of debt under
      any
      principal contract;

     

    (2)
      Acceleration of the maturity of contract pursuant to relevant stipulations
      of
      the principal contract; 

     

    (3)
      Party
      A’s winding up, closing down, bankruptcy application, bankruptcy declaration,
      dissolution, revocation of business license, and canceling;

     

    (4)
      Party
      A’s inability to keep the mortgaged property intact and in good
      condition;

     

    (5)
      Other
      incidents happen to Party A that may endanger, damage or threaten the rights
      and
      interests of Party B.

    

    Article
      14 Enforcement of Mortgage Right

     

    Party
      A
      and Party B agree to enforce the mortgage right through any of the approaches
      stated hereunder when Party B is not paid at the maturity of the
      obligation.

     

    1.
      Party
      B, as the mortgagee, through agreement with Party A, as the mortgager, may
      be
      paid out of the proceeds from the conversion of the mortgaged property, either
      at the value agreed upon between the parties or estimated by qualified
      assessment institution entrusted by Party B. and Party B refrains from any
      objections to the assessment institution as well as its estimated value.

     

    2.
      Party
      B, as the mortgagee, through agreement with Party A, as the mortgager, may
      be
      paid out of the proceeds from the sale of the mortgaged property. Party A can
      find a buyer by itself or by entrusting Party B or other agencies, or by
      inviting tenders with the auction price complying with stipulations of item
      1 of
      this article.

     

    3.
      Party
      B, as the mortgagee, through agreement with Party A, as the mortgager, may
      be
      paid out of the proceeds from the auction of the mortgaged property. Party
      B has
      the right to entrust a qualified auction company registered in China to handle
      the auction, and Party A should not object to or disagree with the entrusted
      auction company. Party B can suggest an auction reservation price based on
      the
      total or a percentage not below  
      of all
      unpaid debts under principal contract on the occasion or do not suggest a
      reservation price; Party A agrees to accept any auction conducted and concluded
      hereby. In case of auction failure, Party B is entitled to entrust the mortgaged
      property with another auction company again.

    

    Article
      15 Notarization and Voluntary Acceptance of Forcible Execution:
 

     

    1.
      Shall
      a Party require notarization, the contract is to be notarized at a notary public
      prescribed by the government.

     

    2.
      Party
      A agrees that Party B can apply to notary public for a certificate with forcible
      execution supported by this Agreement, in case the debtor fails to pay within
      the repayment period prescribed in the contract the principal and the interest
      thereof, penalty interest, compound interest, default fine, the compensation
      for
      damage, and the cost of enforcing the right of the claim and mortgage (including
      but not limited to legal cost, attorney fees, traveling expenses etc). Supported
      by this Agreement, Party B can apply to the people’s court with jurisdiction for
      forcible execution, whereas Party A waives all rights of defense, together
      with
      all rights of denying the guaranty responsibility for Party B.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    Article
      16 Other Agreed Items

     

      
        

      

       

    

    
      
        

      

       

    

    Article
      17 Applicable Law

     

    The
      contract is to be governed by laws of the People’s Republic of China, which is
      binding on both Parties.

     

    Article18
      Dispute Settlement

     

    Any
      disputes arising from the execution or in connection with this Agreement shall
      be settled by the Parties through amicable consultation. If the Parties fail
      to
      settle the disputes in the preceding manner, both Parties agree upon the
second
      approach
      below:

     

    1.
      Submit
      it to ___________ Arbitration
      Commission for arbitration; or

     

    2.
      File a
      lawsuit with the people’s court at the domicile of Party B.

     

    During
      the arbitration or the legal proceedings, the contract shall be observed and
      enforced by both Parties except for the matters in dispute. 

     

    Article
      19 Accumulation of Rights and Obligations

     

    1.
      The
      rights of Party B hereunder are accumulating, which does not affect or preclude
      any rights it may have against Party A in accordance with laws or other
      contracts. Except for expressed in writing by Party B, Party B’s failure or
      delay to exercise any right, or partial exercise of any right under this
      Agreement shall not constitute a waiver of the right in whole or in part, nor
      shall it affect, prevent or hamper the continued exercise of the right or the
      exercise of any other right of it by Party B. 

     

    2.
      The
      rights of Party A under this Agreement are accumulating, which does not affect
      or preclude any obligations and responsibilities it may have for Party B in
      accordance with laws or other contracts. Except for the compulsory provisions
      of
      the law or agreeing or approving in writing by Party B, Party B is free of
      any
      obligations and responsibilities that Party A may have to perform to a third
      party. 

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    Article
      20 Continuity of Obligations

     

    All
      obligations of Party A under this Agreement have continuity, and are binding
      on
      its successor, agent, receiver, assignee, and its principal after merger
      restructuring, renaming etc. Such obligations shall neither be affected by
      any
      disputes, claims and orders of legal proceedings and superior units, as well
      as
      any contracts and instruments signed between the debtor of the principal
      contract and any natural person or legal person, nor shall they change with
      the
      debtor’s going bankrupt, inability to repay loans, losing enterprise
      qualification, amendment of articles of association or the occurrence of any
      material changes. 

     

    Article
      21 Validity of Agreement

     

    1.
      This
      Agreement is independent of the primary contract. In case the primary contract
      is invalid for any reason, this Agreement shall remain valid with no harm done
      to its validity. The mortgage guaranty under this Agreement applies to the
      legal
      liabilities upon the invalidity of the primary contract (including but not
      limited to refund and compensation).

     

    2.
      Shall
      the content of an article or part of an article be invalid presently or become
      invalid in the future, the invalid article or part of an article shall not
      have
      bearing on the validity of the contract and other articles of the contract
      as
      well as the remaining part of such article.

     

    Article
      22 Effectiveness, Modification and Cancel of Contract 

     

    1.
      The
      contract shall take effect when the conditions prescribed hereunder are met.
      

     

    (1)
      The
      contract is signed (or sealed) by the legal representatives (principals) or
      authorized agents, together with seal (only signature is required under the
      circumstance where Party A is a natural person);

     

    (2)
      The
      mortgaged properties in the “List of Mortgaged Property” of this Agreement have
      been registered complying with laws.

     

    2.
      After
      the effectiveness of this Agreement, unless otherwise stipulated by the
      contract, each party shall not unilaterally modify or cancel the contract
      without any good reason. In case such modification or cancelation is really
      needed, the Parties should reach a written agreement through friendly
      consultation. 

     

    Article
      23 Miscellaneous

     

    1.
      In
      case of anything not covered in this Agreement, the Parties shall otherwise
      agree to enter into a written agreement as an appendix to the contract. Any
      appendix, modification, or supplementation of the contract shall become an
      integral part hereof, and have the same legal force and effect with this
      Agreement.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    2.
      Unless
      otherwise stipulated, the relevant fees and costs of assessment, notarization,
      insurance, registration, authentication, maintenance, deposit etc. are for
      Party
      A’s account.

     

    3.
      Any
      notice and request in form of email, or other telecommunications, telex,
      telegraph, or fax sent by Party B concerning this Agreement shall be deemed
      to
      have arrived at the receiver upon sending. A Post letter will be assumed to
      have
      arrived at the receiver on the third day since day of the reiterated post.
      

     

    4.
      Shall
      a Party alter its address, name, telephone number, or fax number herein, the
      Party is obliged to notify the other Party within fifteen calendar days
      thereafter.

     

    5.
      This
      Agreement is executed in five
      originals, with one
      for each
      Party, one for registration department, and one for notary public when
      notarization is obtained, being equally authentic.

    

    Appendix:
      List of Mortgaged Property, in _______ copies

     

    
      	Party A (Seal): Wuhan Blower Co., Ltd.
              	Party B (Seal): China CITIC Bank Wuhan
              Branch
              
	Legal Representative: /s/ Xu Jie 	Legal Representative or Principal: /s/
              Xu
              Xuemin
	(or signature or seal of entrusted agent)
              	(or signature or seal of entrusted
              agent)

    

    
      
        
        

      

      
        -10-

        
          

        

      

       

    

    Appendix
      1:

    List
      of
      Mortgaged Property (Real Estate)

    Mortgager:
      Wuhan Blower Co., Ltd.

    Mortgagee:
      China CITIC Bank Wuhan Branch 

    No.:
      No.16 Mortgage 200619

    

      
        	
                Name
                  of the Mortgaged Property

              	
                Real
                  Estate of Wuhan Blower Co., Ltd.

              	
                Address

              	
                Cang
                  Long Dao Science Park, Jiangxia District, Wuhan

              
	
                Owner
                  of the Property 

              	
                Wuhan
                  Blower Co., Ltd.

              
	
                Owner
                  of Right to Use

              	
                Wuhan
                  Blower Co., Ltd.

              
	
                Building
                  Area

              	
                12,734.12
                  m2

              	
                Function
                  and Usage

              	 
	
                Acreage
                  of Using site

              	
                m2

              
	
                Terms
                  of Land use right

              	
                22,230.90
                  m2 

              	
                Terms
                  of Land use

              	
                From
                  Year 2005

                to
                  March, 2054

              
	
                Houses
                  & other Things Firmly Fixed on the Land 

              	
                Original
                  Value

              	 	
                Ownership
                  Certificate, Issuing Unit and No.

              	
                Property

              	
                Wu
                  Fang Quan Zheng Xia Zi No. 200403909, No. 200505064, No.
                  200402225

              
	
                Land

              	
                Xia
                  Guo Yong (2005)No.189

              
	
                Net
                  Value

              	
                34,942,600
                  yuan

              
	
                Assessed
                  Value

              	
                 

              	
                Assessment
                  Institution 

              	 	
                Mortgage
                  Registration Office

              	 
	
                Enacted
                  Mortgage Status

              	 	
                With
                  Ownership Dispute or not

              	
                NO

              
	
                Is
                  the Mortgaged Property under Lease or not

              	 	
                Procurement
                  of Land-Use Right

              	
                By
                  grant

              
	
                Title
                  of the Mortgage Contract

              	 	
                No:
                  No.16 Mortgage 200619 Maximum
                  Amount Mortgage Agreement

              

      

       

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

      

       

      
        	
                Signature
                  of the Mortgager

              	
                Legal
                  Representative Xu Jie Wuhan Blower Co., Ltd o 
Seal
                  o

                 

                 

                o 
Entrusted
                  Agent  o

                 

                 

                September
                  29, 2006

              	
                Signature
                  of the Mortgagee

              	
                (Unit’s
                  Seal or Contract Seal )

                 

                 

                 

                Responsible
                  Person o   
                  o 
Seal
                  o

                 

                 

                September
                  28, 2005

              

      

    

     

    This
      list
      is executed in copies.

     

    
      
        
        

      

      
        -12-

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