Document:

Unassociated Document

    EXHIBIT 10.3

     

    Loan
      Contract

     

    (Chongwen)
      Nong-Yin-Jie No.3256 

     

    Borrower
      (Full Name): Duoyuan
      Digital Printing Technology Industry (China) Co., Ltd.

     

    Lender
      (Full Name): Agricultural Bank of China Chongwen
      Branch, Beijing

     

    In
      accordance with applicable laws and regulations of the State, both parties
      hereto enter into this loan contract (the “Contract”) after mutual
      consultation.

     

    Article
      I Loan

     

    
      	
              1.

            	
              Type
                of Loan: revolving
                debt 

            

    

    
      	 	 

      	
              2.

            	
              Purpose
                of Loan: for
                purchasing raw materials

            

      	 	 

    

    
      	
              3.

            	
              Currency
                and Amount (in Capital Letters) of Loan: Twenty
                million RMB

            

    

    
      	 	 

      	
              4.

            	
              Term
                of Loan

            

      	 	 

    

    
      	
              (1)

            	
              See
                the table below for the term of the
                Loan.

            

    

     

    
      	
              Release

            	 	
              Maturity

            
	
              Year

            	 	
              Month

            	 	
              Day

            	 	
              Amount

            	 	
              Year

            	 	
              Month

            	 	
              Day

            	 	
              Amount

            
	
              2006

            	 	
              9

            	 	
              1

            	 	
              Twenty
                million

            	 	
              2007

            	 	
              6

            	 	
              30

            	 	
              Twenty
                million

            

    

     

    (Additional
      sheets may be attached to the above table when the space in the above table
      is
      insufficient and shall constitute a part of the Contract.)

     

    
      	
              (2)

            	
              In
                the event of any discrepancy between the amount, release and maturity
                dates of the Loan as stated in the Contract and those recorded on
                the loan
                document, the latter shall prevail. The loan document shall constitute
                a
                part of and enjoy the same effectiveness as the
                Contract.

            

    

    
      	 	 

      	
              (3)

            	
              When
                the Loan hereunder is in a foreign currency, the Borrower shall pay
                principal and interest of the Loan in the currency in which the Loan
                has
                been originally released to him/her.

            

      	 	 

    

    
      	
              5.

            	
              Interest
                Rate

            

    

     

    Interest
      rate of RMB loans shall be determined using the (2
      )
method
      described here below:

     

    
      	
              (1)

            	
              Floating
                Interest Rate:

            

    

     

    The
      interest rate of the Loan shall float by  ×%
      (up/down) the base rate and the annual interest rate shall be  %.
      The
      base rate of a loan for a term of five years or less shall be the base rate
      of
      RMB loans in the same period as publicized by the People’s Bank of China, and
      that of a loan for a term of more than five years shall be said base rate of
      RMB
      loans plus  × 
      (in
      capital letters) percent. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    Interest
      rate adjustment shall take place at an interval of  × 
      (in
      capital letters) month. In the event of an adjustment to the base interest
      rate
      of RMB loans by the People’s Bank of China, the Lender shall determine the new
      applicable interest rate of the Loan based on the adjusted base rate of loans
      for appropriate term without further notifying the Borrower. When the date
      of a
      base rate adjustment coincides with the release date of the Loan or the date
      of
      the initial month of said adjustment interval that corresponds to the release
      date of the Loan, the new applicable rate shall be determined from the date
      of
      the adjustment. When no such corresponding date is available, the last day
      of
      the month shall be deemed as the corresponding date. 

     

    
      	
              (2)

            	
              Fixed
                Interest Rate

            

    

     

    The
      interest rate of the Loan shall float by 10
      %
      up
      (up/down) the base rate and the annual interest rate shall be 6.138%
      until
      the maturity date of the Loan. The base rate of a loan for a term of five years
      or less shall be the base rate of RMB loans in the same period as publicized
      by
      the People’s Bank of China, and that of a loan for a term of more than five
      years shall be said base rate of RMB loans plus  × 
      (in
      capital letters) percent.

     

    Interest
      rate of foreign-currency loans shall be determined using the  × 
      method
      described here below:

     

    
      	(1)	
              The
                interest rate shall be floating based on  × (in
                capital letters) months  × 
                that is composed of  (in
                capital letters) months’  × (LIBOR/HIBOR)
                +  × %
                as interest rate difference. LIBOR/HIBOR shall be the London/Hong
                Kong
                inter-bank offered rate publicized by Routers as of two working days
                before the interest calculation date for loans of the corresponding
                term.
                

            

    

     

    
      	(2)	
              Apply
                the annual interest rate of  × %
                until the maturity date of the
                Loan.

            

    

     

    
      	(3)	
              Other
                Method:  ×                       
                . 

            

    

     

    
      	
              6.

            	
              Interest
                Settlement

            

    

     

    Interest
      of the Loan hereunder shall be settled on a quarterly
      (monthly/quarterly)
      basis and the date of interest settlement shall be the 20th
      day of
      each quarter’s
      final month (month/quarter’s
      final month). The Borrower shall pay interest on each date of interest
      settlement. If the final principal payment date of the Loan isn’t a date of
      interest settlement, the outstanding interest shall be paid in full together
      with the principal (daily interest rate = monthly interest rate/
      30).

     

    Article
      II. The Lender shall have the right to reject provision of the Loan hereunder
      if
      the following requirements are not satisfied:

     

    1.
      The
      Borrower shall open basic
      account
      with the Lender.

     

    2.
      The
      Borrower shall provide relevant documents, materials and properly fulfill
      appropriate procedures as requested by the Lender.

     

    3.
      When
      the Loan hereunder is in a foreign currency, the Borrower shall have properly
      fulfilled all approval, registration and other statutory procedures in
      connection with the Loan as required by the present clause.

     

    4.
      In the
      event that the Loan hereunder involves mortgage or pledge guarantee, the
      appropriate registration and/or insurance procedures shall have been properly
      fulfilled as required by the Lender and such guarantee and insurance shall
      remain valid. If the Loan hereunder involves a surety guarantee, the surety
      contract shall have been signed and fallen into force and effect. 

     

    Article
      III. Rights and Obligations of Lender

     

    
      	 	
              1.

            	
              The
                Lender shall have the right to keep informed of conditions of the
                Borrower’s business and financial activities as well as inventories of
                materials and use of the Loan, and to require the Borrower to provide
                financial statements as well as other materials and information on
                a
                regular basis.

            

    

    
    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	 	
              2.

            	
              When
                the Borrower incurs any of the unfavorable actions or situations
                set forth
                in provisions including without limitation to Sub-clauses 7, 8 and
                10 of
                Article IV herein that is sufficient to endanger security of the
                Loan, the
                Lender may suspend release of the Loan or recover it earlier.
                

            

    

    
      	 	 	 

      	 	
              3.

            	
              When
                recovering principal, interest, penal interest, compound interest
                of the
                Loan and other fees and charges payable by the Borrower as contracted
                herein or earlier than scheduled, the Lender may transfer the amounts
                to
                be so recovered from any account of the
                Borrower.

            

      	 	 	 

    

    
      	 	
              4.

            	
              When
                the amount paid by the Borrower is insufficient to pay off the sum
                due and
                payable hereunder, the Lender may opt to use the amount to pay the
                principal, interest, penal interest, compound interest or fees and
                charges
                of the Loan.

            

    

    
      	 	 	 

      	 	
              5.

            	
              If
                the Borrower has failed to fulfill the obligation of paying the Loan,
                the
                Lender may publicly disclose the Borrower’s default.
                

            

      	 	 	 

    

    
      	 	
              6.

            	
              The
                Lender shall release the Loan to the Borrower in full amount and
                on time
                as agreed herein.

            

    

     

    Article
      IV Rights
      and Obligations of Borrower

     

    
      	 	
              1.

            	
              The
                Borrower shall have the right to obtain and use the Loan as agreed
                herein.

            

    

    
      	 	 	 

      	 	
              2.

            	
              The
                Borrower shall handle current settlements and deposits in connection
                with
                the Loan hereunder through the account set forth in Article II
                herein.

            

      	 	 	 

    

    
      	 	
              3.

            	
              If
                the Loan hereunder is in a foreign currency, the Borrower shall properly
                fulfill appropriate approval, registration and other statutory procedures
                in connection with the Loan in accordance with applicable
                regulations.

            

    

    
      	 	 	 

      	 	
              4.

            	
              The
                Borrower shall pay principal and interest of the Loan as scheduled.
                When
                the Borrower needs an extension of the term of the Loan, it shall
                lodge a
                written application to the Lender within 15 days before the maturity
                date
                of the Loan, and sign an extension agreement after obtaining the
                Lender’s
                consent.

            

      	 	 	 

    

    
      	 	
              5.

            	
              The
                Borrower shall use the Loan for the purpose contracted herein without
                seizing or diverting the Loan for any other
                purposes.

            

    

    
      	 	 	 

      	 	
              6.

            	
              The
                Borrower shall provide the Lender with true, complete and valid financial
                statements and other relevant materials and information on a monthly
                basis, and actively collaborate with the Lender’s inspection of its
                business and financial activities and use of the Loan
                hereunder.

            

      	 	 	 

    

    
      	 	
              7.

            	
              The
                Borrower shall notify the Lender in advance in writing and obtain
                the
                Lender’s consent before it executes any contracting, lease, joint stock
                system reform, joint venture, consolidation, merger, division, asset
                assignment, application for cessation of operation for rectification
                purpose or for dissolution or bankruptcy, or any other action that
                is
                sufficient to cause changes to the debtor-creditor relationship hereunder
                or to impair the Lender’s realization of its creditor’s rights, and shall
                not implement any of the foregoing actions until it has identified
                the
                accountability for debts paying or paid off all debts
                earlier.

            

    

    
      	 	 	 

      	 	
              8.

            	
              The
                Borrower shall immediately notify the Lender in writing when it incurs
                any
                other circumstances other than the actions set forth in the foregoing
                sub-clause that will have material negative influence on its fulfillment
                of the payment obligation hereunder, such as cessation of production,
                wind-up, registration cancellation, revocation of business license,
                legal
                representative or superintendent’s engagement in illegal activities or
                involvement in major legal actions or arbitration, severe difficulty
                in
                business operation, deterioration of financial status, etc., and
                shall
                implement the creditor’s right preservation measures that have been
                accepted by the Lender.

            

      	 	 	 

    

    
      	 	
              9.

            	
              The
                Borrower shall notify the Lender in advance in writing and obtain
                the
                Lender’s consent if it provides guarantee for other persons’ debts or
                mortgages or pledges its major assets to a third person that may
                possibly
                impair its ability to pay the Loan
                hereunder.

            

    

    
      	 	 	 

      	 	
              10.

            	
              The
                Borrower and its investor(s) shall not secretly withdraw funds, transfer
                assets or assign shares without permission in order to evade the
                payment
                obligation to the Lender.

            

      	 	 	 

    

    
      	 	
              11.

            	
              The
                Borrower shall duly notify the Lender in writing of changes to the
                Borrower’s name, legal representative, address or business
                scope.

            

    

    
    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	 	
              12.

            	The Borrower shall promptly provide other guarantee
              measures accepted by the Lender in the event that the guarantor of
              the
              Loan hereunder incurs such situations as cessation of operation, wind-up,
              cancellation of registration, revocation of business license, bankruptcy
              or suffering a losing result in business operation and has partially
              or
              completely lost the guaranteeing capability matching the Loan, or that
              the
              collateral, pledge or pledged title serving as guarantee of the Loan
              hereunder suffers decrement in value.

    

     

    
      	 	
              13.

            	
              The
                Borrower shall cover the costs and expenses of attorney’s service,
                insurance, transportation, appraisal, registration, safekeeping,
                identification and public notarization that are in connection with
                the
                Contract or the guarantee
                hereunder.

            

    

     

    Article
      V. Early Payment of Loan

     

    The
      Borrower shall obtain the Lender’s consent before making an earlier payment of
      the Loan; and if the Lender agrees upon such earlier payment, interest on the
      portion so paid earlier shall be calculated and paid at the time of the payment
      using the  × 
      method
      described here below:

     

    
      	 	
              1.

            	
              Calculate
                and collect interest based on the term of the Loan and applicable
                interest
                rate agreed in the Contract.

            

    

    
      	 	 	 

      	 	
              2.

            	
              Calculate
                and collect interest based on the actual term of the Loan and at
                the
                applicable interest rate agreed herein plus  × (in
                capital letters) percent.

            

    

     

    Article
      VI. Defaults

     

    
      	 	
              1.

            	
              If
                the Lender has failed to release the Loan to the Borrower in full
                and as
                scheduled and consequently caused loss to the Borrower, it shall
                pay
                penalty to the Borrower based on the defaulted amount and the days
                of
                duration of the default, which penalty shall be calculated using
                the same
                method applicable to overdue loan payment in the same
                period.

            

    

    
      	 	 	 

      	 	
              2.

            	
              In
                the event that the Borrower has failed to pay principal of the Loan
                as per
                the schedule agreed herein, the Lender shall impose penal interest
                upon
                the overdue amount from the overdue date and at the applicable interest
                rate of the Loan as set forth herein plus FIFTY
                (in
                capital letters) percent until the principal and interest of the
                Loan is
                paid off in full. If the People’s Bank of China adjusts upwards the base
                interest rate of RMB loans in the same period during such overdue
                payment,
                the penal interest rate shall be raised accordingly from the date
                of the
                adjustment to the extent that the Loan hereunder is in
                RMB.

            

      	 	 	 

    

    
      	 	
              3.

            	
              If
                the Borrower has failed to use the Loan as contracted, the Lender
                shall
                impose penal interest on the defaulted amount from the date of the
                default
                and at the applicable interest rate of the Loan as agreed herein
                plus
                ONE
                HUNDRED (in
                capital letters) percent until the principal and interest of the
                Loan is
                paid in full. If the People’s Bank of China adjusts upwards the base
                interest rate of RMB loans in the same period during such default,
                the
                penal interest rate shall be raised accordingly from the date of
                the
                adjustment to the extent that the Loan hereunder is in RMB.
                

            

    

    
      	 	 	 

      	 	
              4.

            	
              The
                Lender will charge compound interest in accordance with regulations
                of the
                People’s Bank of China on interest due and payable but remaining
                outstanding. 

            

      	 	 	 

    

    
      	 	
              5.

            	
              In
                the event of the Borrower’s breach of its obligations hereunder, the
                Lender shall have the right to require the Borrower’s correction of the
                breach within specified period of time, suspend release of the Loan,
                recover earlier the amount of the Loan that has been previously released,
                and declare immediate maturity of loans under other loan contracts
                between
                the Borrower and the Lender or take other asset preservation
                measures.

            

    

    
      	 	 	 

      	 	
              6.

            	
              If
                any guarantor of the Loan hereunder has breached the obligations
                agreed
                herein, the Lender shall have the right to suspend release of the
                Loan,
                recover earlier the amount of the Loan that has been previously released
                or take other asset preservation
                measures.

            

      	 	 	 

    

    
      	 	
              7.

            	
              If
                the Lender resorts to legal action or arbitration for realization
                of its
                creditor’s rights as result of the Borrower’s default of the Contract, the
                Borrower shall assume the attorney’s fee, traveling expense and other
                costs and expenses that the Lender has paid for such realization
                of
                creditor’s rights.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    Article
      VII. Guarantee

     

    The
      form
      of guarantee of the Loan hereunder is Maximum
      collateralized loan balance and
      the
      guarantee contract is to be separately signed. If maximum-value guarantee is
      adopted, the guarantee contract number is                      
      .

     

    Article
      VIII. Settlement
      of Disputes

     

    Disputes
      occurring during performance of the Contract may either be settled through
      mutual consultation of both parties or through the 1
      method
      described here below:

     

    
      	
              1.

            	
              Legal
                action: Such disputes shall be subject to jurisdiction of the people’s
                court in the place of the Lender.

            

    

    
      	 	 

      	
              2.

            	
              Arbitration:
                The disputes shall be submitted to  × (full
                name of arbitrating agency) for arbitration in accordance with its
                arbitration rules. 

            

    

     

    During
      such legal action or arbitration, performance of provisions of the Contract
      other than those concerned in the dispute shall be continued.

     

    Article
      IX. Miscellaneous

     

    
      
        	
                 Maximum
                  collateralized loan balance term:2005.07.28
                  — 2007.07.27

              
	 
	 
	 
	 
	 
	 	
              

      

    

     

    Article
      X. Effectiveness of Contract

     

    The
      Contract shall take effect from the date of signatures or seals by the Lender
      and the Borrower. 

     

    Article
      XI. Counterparts

     

    The
      Contract is made in three
      identical
      copies, with each party hereto respectively holding one, the guarantors
      respectively keeping one
      and
      two
      copies,
      all enjoying the same effectiveness.

     

    Article
      XII. Notice

     

    The
      Lender has reminded the Borrower to fully and accurately understand all printed
      clauses herein and made appropriate clarifications of the clauses as requested
      by the Borrower. Both parties have common understanding regarding implications
      of the Contract. 

    

    
      	Borrower (Signature/Seal)	 	Lender (Signature/Seal):
	/s/ Duoyuan Digital Printing Technology
              Industry (China) Co., Ltd.	 	/s/ Agricultural Bank of
              China
              Beijing Chongwen District Branch Special Seal for Loan Contract
              Approval
	 	 	 
	Legal Representative:	 	Officer in Charge or Authorized
              Representative:
	 	 	 
	
              Date
                Signed:

            	 	 
	 	 	 
	
              Place
                Signed:

            	 	 

    

     

    
      
        
        

      

      
        5Unassociated Document

    EXHIBIT 10.4

     

    Loan
      Contract

     

    (Chongwen)
      Nong-Yin-Jie No.3886 

     

    Borrower
      (Full Name): Duoyuan
      Digital Printing Technology Industry (China) Co., Ltd.

     

    Lender
      (Full Name): Agricultural Bank of China Chongwen
      Branch, Beijing

     

    In
      accordance with applicable laws and regulations of the State, both parties
      hereto enter into this loan contract (the “Contract”) after mutual
      consultation.

     

    Article
      I Loan

     

    
      	
              1.

            	
              Type
                of Loan: revolving
                debt 

            

    

    
      	 	 

      	
              2.

            	
              Purpose
                of Loan: for
                purchasing raw materials

            

      	 	 

    

    
      	
              3.

            	
              Currency
                and Amount (in Capital Letters) of Loan: Twenty
                million RMB

            

    

    
      	 	 

      	
              4.

            	
              Term
                of Loan

            

      	 	 

    

    
      	
              (1)

            	
              See
                the table below for the term of the
                Loan.

            

    

     

    
      	
               Release

            	 	
              Maturity

            
	
              Year

            	 	
              Month

            	 	
              Day

            	 	
              Amount

            	 	
              Year

            	 	
              Month

            	 	
              Day

            	 	
              Amount

            
	
              2006

            	 	
              11

            	 	
              16

            	 	
              Twenty
                million

            	 	
              2007

            	 	
              7

            	 	
              15

            	 	
              Twenty
                million

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

    

     

    (Additional
      sheets may be attached to the above table when the space in the above table
      is
      insufficient and shall constitute a part of the Contract.)

     

    
      	
              (2)

            	
              In
                the event of any discrepancy between the amount, release and maturity
                dates of the Loan as stated in the Contract and those recorded on
                the loan
                document, the latter shall prevail. The loan document shall constitute
                a
                part of and enjoy the same effectiveness as the
                Contract.

            

    

    
      	 	 

      	
              (3)

            	
              When
                the Loan hereunder is in a foreign currency, the Borrower shall pay
                principal and interest of the Loan in the currency in which the Loan
                has
                been originally released to
                him/her.

            

    

    
      	 	 

      	
              5.

            	
              Interest
                Rate

            

      	 	 

    

    Interest
      rate of RMB loans shall be determined using the (2
      )
method
      described here below:

     

    
      	
              (1)

            	
              Floating
                Interest Rate:

            

    

     

    The
      interest rate of the Loan shall float by  ×%
      (up/down) the base rate and the annual interest rate shall be  %.
      The
      base rate of a loan for a term of five years or less shall be the base rate
      of
      RMB loans in the same period as publicized by the People’s Bank of China, and
      that of a loan for a term of more than five years shall be said base rate of
      RMB
      loans plus  × 
      (in
      capital letters) percent. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    Interest
      rate adjustment shall take place at an interval of  × 
      (in
      capital letters) month. In the event of an adjustment to the base interest
      rate
      of RMB loans by the People’s Bank of China, the Lender shall determine the new
      applicable interest rate of the Loan based on the adjusted base rate of loans
      for appropriate term without further notifying the Borrower. When the date
      of a
      base rate adjustment coincides with the release date of the Loan or the date
      of
      the initial month of said adjustment interval that corresponds to the release
      date of the Loan, the new applicable rate shall be determined from the date
      of
      the adjustment. When no such corresponding date is available, the last day
      of
      the month shall be deemed as the corresponding date. 

     

    
      	
              (2)

            	
              Fixed
                Interest Rate

            

    

     

    The
      interest rate of the Loan shall float by 10
      %
      up
      (up/down) the base rate and the annual interest rate shall be 6.138%
      until
      the maturity date of the Loan. The base rate of a loan for a term of five years
      or less shall be the base rate of RMB loans in the same period as publicized
      by
      the People’s Bank of China, and that of a loan for a term of more than five
      years shall be said base rate of RMB loans plus  × 
      (in
      capital letters) percent.

    Interest
      rate of foreign-currency loans shall be determined using the  × 
      method
      described here below:

     

    (1)
      The
      interest rate shall be floating based on  × (in
      capital letters) months  × 
      that is
      composed of  (in
      capital letters) months’  × (LIBOR/HIBOR)
      +  × %
      as
      interest rate difference. LIBOR/HIBOR shall be the London/Hong Kong inter-bank
      offered rate publicized by Routers as of two working days before the interest
      calculation date for loans of the corresponding term. 

     

    (2)
      Apply
      the annual interest rate of  × %
      until
      the maturity date of the Loan.

    
(3)
      Other Method:  ×
      . 

     

    
      	
              6.

            	
              Interest
                Settlement

            

    

     

    Interest
      of the Loan hereunder shall be settled on a monthly
      (monthly/quarterly)
      basis and the date of interest settlement shall be the 20th
      day of
      each month
      (month/quarter’s
      final month). The Borrower shall pay interest on each date of interest
      settlement. If the final principal payment date of the Loan isn’t a date of
      interest settlement, the outstanding interest shall be paid in full together
      with the principal (daily interest rate = monthly interest rate/
      30).

     

    Article
      II. The Lender shall have the right to reject provision of the Loan hereunder
      if
      the following requirements are not satisfied:

     

    1.
      The
      Borrower shall open basic
      account
      with the Lender.

     

    2.
      The
      Borrower shall provide relevant documents, materials and properly fulfill
      appropriate procedures as requested by the Lender.

     

    3.
      When
      the Loan hereunder is in a foreign currency, the Borrower shall have properly
      fulfilled all approval, registration and other statutory procedures in
      connection with the Loan as required by the present clause.

     

    4.
      In the
      event that the Loan hereunder involves mortgage or pledge guarantee, the
      appropriate registration and/or insurance procedures shall have been properly
      fulfilled as required by the Lender and such guarantee and insurance shall
      remain valid. If the Loan hereunder involves a surety guarantee, the surety
      contract shall have been signed and fallen into force and effect. 

     

    Article
      III. Rights and Obligations of Lender

     

    
      	 	
              1.

            	
              The
                Lender shall have the right to keep informed of conditions of the
                Borrower’s business and financial activities as well as inventories of
                materials and use of the Loan, and to require the Borrower to provide
                financial statements as well as other materials and information on
                a
                regular basis.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
    

    
      	 	
              2.

            	
              When
                the Borrower incurs any of the unfavorable actions or situations
                set forth
                in provisions including without limitation to Sub-clauses 7, 8 and
                10 of
                Article IV herein that is sufficient to endanger security of the
                Loan, the
                Lender may suspend release of the Loan or recover it earlier.
                

            

    

    
      	 	 	 

    

    
      	 	
              3.

            	
              When
                recovering principal, interest, penal interest, compound interest
                of the
                Loan and other fees and charges payable by the Borrower as contracted
                herein or earlier than scheduled, the Lender may transfer the amounts
                to
                be so recovered from any account of the
                Borrower.

            

    

    
      	 	 	 

      	 	
              4.

            	
              When
                the amount paid by the Borrower is insufficient to pay off the sum
                due and
                payable hereunder, the Lender may opt to use the amount to pay the
                principal, interest, penal interest, compound interest or fees and
                charges
                of the Loan.

            

      	 	 	 

    

    
      	 	
              5.

            	
              If
                the Borrower has failed to fulfill the obligation of paying the Loan,
                the
                Lender may publicly disclose the Borrower’s default.
                

            

    

    
      	 	 	 

      	 	
              6.

            	
              The
                Lender shall release the Loan to the Borrower in full amount and
                on time
                as agreed herein.

            

    

     

    Article
      IV Rights
      and Obligations of Borrower

     

    
      	 	
              1.

            	
              The
                Borrower shall have the right to obtain and use the Loan as agreed
                herein.

            

    

    
      	 	 	 

      	 	
              2.

            	
              The
                Borrower shall handle current settlements and deposits in connection
                with
                the Loan hereunder through the account set forth in Article II
                herein.

            

      	 	 	 

    

    
      	 	
              3.

            	
              If
                the Loan hereunder is in a foreign currency, the Borrower shall properly
                fulfill appropriate approval, registration and other statutory procedures
                in connection with the Loan in accordance with applicable
                regulations.

            

    

    
      	 	 	 

      	 	
              4.

            	
              The
                Borrower shall pay principal and interest of the Loan as scheduled.
                When
                the Borrower needs an extension of the term of the Loan, it shall
                lodge a
                written application to the Lender within 15 days before the maturity
                date
                of the Loan, and sign an extension agreement after obtaining the Lender’s
                consent.

            

      	 	 	 

    

    
      	 	
              5.

            	
              The
                Borrower shall use the Loan for the purpose contracted herein without
                seizing or diverting the Loan for any other
                purposes.

            

    

    
      	 	 	 

      	 	
              6.

            	
              The
                Borrower shall provide the Lender with true, complete and valid financial
                statements and other relevant materials and information on a monthly
                basis, and actively collaborate with the Lender’s inspection of its
                business and financial activities and use of the Loan
                hereunder.

            

      	 	 	 

    

    
      	 	
              7.

            	
              The
                Borrower shall notify the Lender in advance in writing and obtain
                the
                Lender’s consent before it executes any contracting, lease, joint stock
                system reform, joint venture, consolidation, merger, division, asset
                assignment, application for cessation of operation for rectification
                purpose or for dissolution or bankruptcy, or any other action that
                is
                sufficient to cause changes to the debtor-creditor relationship hereunder
                or to impair the Lender’s realization of its creditor’s rights, and shall
                not implement any of the foregoing actions until it has identified
                the
                accountability for debts paying or paid off all debts
                earlier.

            

    

    
      	 	 	 

      	 	
              8.

            	
              The
                Borrower shall immediately notify the Lender in writing when it incurs
                any
                other circumstances other than the actions set forth in the foregoing
                sub-clause that will have material negative influence on its fulfillment
                of the payment obligation hereunder, such as cessation of production,
                wind-up, registration cancellation, revocation of business license,
                legal
                representative or superintendent’s engagement in illegal activities or
                involvement in major legal actions or arbitration, severe difficulty
                in
                business operation, deterioration of financial status, etc., and
                shall
                implement the creditor’s right preservation measures that have been
                accepted by the Lender.

            

    

    
      	 	 	 

      	 	
              9.

            	
              The
                Borrower shall notify the Lender in advance in writing and obtain
                the
                Lender’s consent if it provides guarantee for other persons’ debts or
                mortgages or pledges its major assets to a third person that may
                possibly
                impair its ability to pay the Loan
                hereunder.

            

      	 	 	 

    

    
      	 	
              10.

            	
              The
                Borrower and its investor(s) shall not secretly withdraw funds, transfer
                assets or assign shares without permission in order to evade the
                payment
                obligation to the Lender.

            

    

    
      	 	 	 

      	 	
              11.

            	
              The
                Borrower shall duly notify the Lender in writing of changes to the
                Borrower’s name, legal representative, address or business
                scope.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

    
      	

               

            	
              12.

            	The Borrower shall promptly provide other guarantee
              measures accepted by the Lender in the event that the guarantor of
              the
              Loan hereunder incurs such situations as cessation of operation, wind-up,
              cancellation of registration, revocation of business license, bankruptcy
              or suffering a losing result in business operation and has partially
              or
              completely lost the guaranteeing capability matching the Loan, or that
              the
              collateral, pledge or pledged title serving as guarantee of the Loan
              hereunder suffers decrement in value. 

      	 	 	 

      	 	
              13.

            	
              The
                Borrower shall cover the costs and expenses of attorney’s service,
                insurance, transportation, appraisal, registration, safekeeping,
                identification and public notarization that are in connection with
                the
                Contract or the guarantee
                hereunder.

            

    

     

    Article
      V. Early Payment of Loan

     

    The
      Borrower shall obtain the Lender’s consent before making an earlier payment of
      the Loan; and if the Lender agrees upon such earlier payment, interest on the
      portion so paid earlier shall be calculated and paid at the time of the payment
      using the  × 
      method
      described here below:

     

    
      	 	
              1.

            	
              Calculate
                and collect interest based on the term of the Loan and applicable
                interest
                rate agreed in the Contract.

            

    

    
      	 	 	 

      	 	
              2.

            	
              Calculate
                and collect interest based on the actual term of the Loan and at
                the
                applicable interest rate agreed herein plus  × (in
                capital letters) percent.

            

    

     

    Article
      VI. Defaults

     

    
      	 	
              1.

            	
              If
                the Lender has failed to release the Loan to the Borrower in full
                and as
                scheduled and consequently caused loss to the Borrower, it shall
                pay
                penalty to the Borrower based on the defaulted amount and the days
                of
                duration of the default, which penalty shall be calculated using
                the same
                method applicable to overdue loan payment in the same
                period.

            

    

    
      	 	 	 

      	 	
              2.

            	
              In
                the event that the Borrower has failed to pay principal of the Loan
                as per
                the schedule agreed herein, the Lender shall impose penal interest
                upon
                the overdue amount from the overdue date and at the applicable interest
                rate of the Loan as set forth herein plus FIFTY
                (in
                capital letters) percent until the principal and interest of the
                Loan is
                paid off in full. If the People’s Bank of China adjusts upwards the base
                interest rate of RMB loans in the same period during such overdue
                payment,
                the penal interest rate shall be raised accordingly from the date
                of the
                adjustment to the extent that the Loan hereunder is in
                RMB.

            

      	 	 	 

    

    
      	 	
              3.

            	
              If
                the Borrower has failed to use the Loan as contracted, the Lender
                shall
                impose penal interest on the defaulted amount from the date of the
                default
                and at the applicable interest rate of the Loan as agreed herein
                plus
                ONE
                HUNDRED (in
                capital letters) percent until the principal and interest of the
                Loan is
                paid in full. If the People’s Bank of China adjusts upwards the base
                interest rate of RMB loans in the same period during such default,
                the
                penal interest rate shall be raised accordingly from the date of
                the
                adjustment to the extent that the Loan hereunder is in RMB.
                

            

    

    
      	 	 	 

      	 	
              4.

            	
              The
                Lender will charge compound interest in accordance with regulations
                of the
                People’s Bank of China on interest due and payable but remaining
                outstanding. 

            

    

    
      	 	 	 

      	 	
              5.

            	
              In
                the event of the Borrower’s breach of its obligations hereunder, the
                Lender shall have the right to require the Borrower’s correction of the
                breach within specified period of time, suspend release of the Loan,
                recover earlier the amount of the Loan that has been previously released,
                and declare immediate maturity of loans under other loan contracts
                between
                the Borrower and the Lender or take other asset preservation
                measures.

            

      	 	 	 

    

    
      	 	
              6.

            	
              If
                any guarantor of the Loan hereunder has breached the obligations
                agreed
                herein, the Lender shall have the right to suspend release of the
                Loan,
                recover earlier the amount of the Loan that has been previously released
                or take other asset preservation
                measures.

            

    

    
      	 	 	 

      	 	
              7.

            	
              If
                the Lender resorts to legal action or arbitration for realization
                of its
                creditor’s rights as result of the Borrower’s default of the Contract, the
                Borrower shall assume the attorney’s fee, traveling expense and other
                costs and expenses that the Lender has paid for such realization
                of
                creditor’s rights.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    Article
      VII. Guarantee

     

    The
      form
      of guarantee of the Loan hereunder is Maximum
      collateralized loan balance and
      the
      guarantee contract is to be separately signed. If maximum-value guarantee is
      adopted, the guarantee contract number is ______________.

     

    Article
      VIII. Settlement
      of Disputes

     

    Disputes
      occurring during performance of the Contract may either be settled through
      mutual consultation of both parties or through the 1
      method
      described here below:

     

    
      	
              1.

            	
              Legal
                action: Such disputes shall be subject to jurisdiction of the people’s
                court in the place of the Lender.

            

    

    
      	 	 

      	
              2.

            	
              Arbitration:
                The disputes shall be submitted to  × (full
                name of arbitrating agency) for arbitration in accordance with its
                arbitration rules. 

            

    

     

    During
      such legal action or arbitration, performance of provisions of the Contract
      other than those concerned in the dispute shall be continued.

     

    Article
      IX. Miscellaneous

     

    Maximum
      collateralized loan balance term:2005.07.28
      2007.07.27

     

    
      

    

    
    

    
      

    

    
    

    
      

    

    
    

    
      

    

    
    

    
      

    

    
    

    
      

    

       

    Article
      X. Effectiveness of Contract

     

    The
      Contract shall take effect from the date of signatures or seals by the Lender
      and the Borrower. 

     

    Article
      XI. Counterparts

     

    The
      Contract is made in three
      identical
      copies, with each party hereto respectively holding one, the guarantors
      respectively keeping one
      and
      three
      copies,
      all enjoying the same effectiveness.

     

    Article
      XII. Notice

     

    The
      Lender has reminded the Borrower to fully and accurately understand all printed
      clauses herein and made appropriate clarifications of the clauses as requested
      by the Borrower. Both parties have common understanding regarding implications
      of the Contract. 

    

     

    
      	Borrower (Signature/Seal)	 	Lender
              (Signature/Seal): 
	/s/ Duoyuan Digital Printing Technology
              Industry (China) Co., Ltd.	 	/s/ Agricultural Bank of
              China
              Beijing Chongwen District Branch Special Seal for Loan Contract
              Approval
	 	 	 
	Legal Representative:	 	 Officer
              in Charge or Authorized Representative:
	 	 	 
	
              Date
                Signed:

            	 	 
	 	 	 
	Place Signed:	 	 

    

     

    
      
        
        

      

      
        5

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