Document:

EX 10.6

    EXHIBIT
      10.6

    

    Loan
      Agreement

    (English
      Translation)

    

    
      	
              Borrower:

            	
              Pinglu
                County Changhong Ferroalloy Co., Ltd.

            
	
              Legal
                Representative:

            	
              Beicang
                Hou

            
	
              Address:

            	
              6
                residents group, Shangling Village, Development Zone

            
	 	 
	
              Lender
                (Pledgee):

            	
              Shanxi
                Bestlink Management Consulting Co., Ltd.

            
	
              Legal
                Representative:

            	
              Beicang
                Hou

            
	
              Address:

            	
              8/F,
                Beicang Building, Jianshe North Road No76, Taiyuan, Shanxi Province,
                PRC

            
	 	 
	
              Guarantor
                (Pledgor):

            	
              All
                of the shareholders of the Borrower, being Beicang Hou, Yaoting Ren
                and
                Zengguan Li

            
	
              Address:

            	
              12/F,
                Beicang Building, Jianshe North Road No76, Taiyuan, Shanxi Province;
                PRC
                Liuxiang South Road No48,Taiyuan City, Shanxi Province,
                PRC

            

    

    

    This
      agreement (“Agreement”) is entered into in Taiyuan on January 5, 2006 by the
      above parties (“Parties”) pursuant to all applicable laws and regulations and
      upon the mutual consent of the  Parties
      to adhere to the herein terms. 

     

    Terms
      of the Loan

    

    Article
      1 Use
      of
      Proceeds 

    

    Borrower
      shall use the proceeds of the loan in connection with the cash flow necessary
      for Borrower’s operations.

    

    Article
      2 Loan
      Amount

    

    The
      amount of the loan is Renminbi Five Hundred Thousand (RMB 500,000) (“Loan”).
      Based on Borrower’s operations, Lender and Borrower may agree at any time to
      increase the amount of the Loan. Borrower hereby warrants that, without Lender’s
      written consent, Borrower may not borrow money or request loan guaranty from
      third parties, and may not incur additional debts. 

    

    Article
      3 Term

    

    The
      term
      of the Loan is from January 5, 2006 until December 31, 2025. 

    

    Article
      4 Interest
      Rate; Late Payment Penalty

    

    4.1 Interest
      Rate

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    The
      Loan
      shall be interest-free.

    

    4.2 Late
      Payment Penalty

    

    A
      daily
      late payment penalty shall be imposed on any amount of the Loan not repaid
      at
      the end of the Term, at the rate of 0.005% of the unpaid balance per day.

    

    If
      Borrower fails to repay the entire Loan at the end of the Term, Lender may
      exercise its rights as Pledgee. 

    

    Article
      5 Payment
      of Loan

    

    Lender
      shall pay the proceeds of the Loan in installments, in the total sum of RMB
      500,000 on or before the end of 2006.

    

    Article
      6 Repayment
      of Loan

    

    Borrower
      shall repay the Loan in yearly installment payments. 

    

    Article
      7 Early
      Repayments

    

    Borrower
      may not make early repayments of the Loan without Lender’s written consent. In
      the event that Borrower is experiencing financial difficulties, Lender may
      demand for the immediate repayment of the Loan or, in the alternative, exercise
      its rights as Pledgee to recover the Loan amount.

    

    Article
      8 Borrower’s
      Rights and Obligations

    

    8.1 Borrower
      shall complete all procedures to effectuate the pledge within 30
      days.

    

    8.2 At
      Lender’s request, Borrower shall provide Lender or its designee with all
      financial, operational and management information, which information Borrower
      warrants to be complete, current and accurate.

    

    8.3 Borrower
      warrants to timely repay the Loan and interests, if any.

    

    8.4 Lender
      or
      its designee may examine Borrower’s financial records.

    

    8.5 Borrower
      shall notify Lender in writing within 7 days of the occurrence or likely
      occurrence of the following:

    

    8.5.1 Any
      dispute between Pledgor and a third party

    

    8.5.2 Any
      lawsuit, arbitration or administrative actions that affect or may affect
      Borrower’s ability to repay the Loan

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
              8.5.3

            	
              Any
                other event that affect or may affect Borrower’s ability to repay the
                Loan

            

    

    

    Article
      9 Lender’s
      Rights and Obligations

    

    9.1 Lender
      has the right to timely receive repayment of the Loan in full.

    

    9.2 Lender
      has the right to examine and verify the legality of all documents and records
      provided by Borrower, including the use of the Loan proceeds.

    

    9.3 Lender
      shall maintain the pledge certificate and all related documents.

     

    Guaranty

    

    Article
      10. This
      Agreement is guaranteed by a pledge and a guaranty.

    

    Article
      11. Terms
      of
      the Pledge.

    

    11.1 Pledgor
      hereby acknowledges that this Agreement is crucial to Lender’s allocation of its
      capital, and agrees that the Pledge be effectuated pursuant to Attachment
      1,
      and
      further guarantees Borrower’s performance of the terms and conditions of this
      Agreement.

    

    In
      the
      event of Borrower’s breach, and in addition to any other rights of Lender,
      Lender may enforce this Agreement against Pledgor to the extent of Pledgor’s
      guaranty, including the right to demand Pledgor to transfer all pledged shares
      to Lender or its designee based on the initial paid-in price of the register
      capital. 

    

    11.3 Pledgor
      shall provide Lender with all legally required documents effectuating the Pledge
      within 10 working days from the effective date of this Agreement. 

    

    11.4 The
      Pledge is separate and independent from all other terms of this Agreement.
      

    If
      any
      clause of this Agreement is determined to be invalid or non-enforceable, Pledgor
      shall assume all liabilities to the extent of Pledgor’s guaranty. In the event
      that the Agreement between Lender and Borrower is deemed invalid, Pledgor shall
      assume all resulting liabilities of Lender.

    

    11.5 At
      its
      own expense, Pledgor shall use its best effort and take all actions necessary
      to
      effectuate the Pledge and secure the rights of Lender as Pledgee.

    

    Article
      12 Guaranty
      of Guarantor

    

    12.1 Extent
      of
      Guaranty and Guaranty Amount

    

    Guarantor
      hereby guarantees all of the obligations of Borrower and/or Pledgor under this
      Agreement, including actual damages resulting from breach of said obligations,
      as well as all expenses incurred by Lender to enforce its rights (including
      without limitations fees legal, arbitration, travel, administrative, appraisal
      and auction fees and expenses).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    12.2 Form
      of
      Guaranty

    

    The
      Guranty is jointly made, and shall be in effect from the effective date of
      this
      Agreement until Borrower and/or Pledgor has satisfied all obligations under
      the
      Agreement, but in no event earlier than December 31, 2025.

    

    12.3 Effectuating
      the Guaranty

    

    Pursuant
      to the request of Lender and/or Pledgee, Guarantor shall assist Borrower and/or
      Pledgor to satisfy their obligations under the Agreement, and Guarantor shall
      waive its right of protest.

    

    12.4 Exemption

    

    Guarantor
      shall further guarantee such other changes to the Agreement agreed to between
      Lender and/or Pledgee on the one hand and Borrower and/or Pledgor on the other,
      to the extent that such changes may increase the obligations of Borrower and/or
      Pledgor.

    

    12.5 Effectiveness
      of the Guaranty

    

    This
      Guaranty is effective from the signing of or affixing seal to this Agreement
      by
      Guarantor’s representative and delivering same to Lender and/or
      Pledgee.

     

    Breach

    

    Article
      13 Event
      of
      Breach

    

    13.1 If
      Borrower obtains the Loan through false data or documentation

    

    13.2 If
      Borrower fails to timely repay the Loan, interest or related fees

    

    13.3 If
      Borrower uses the Loan proceeds for purposes other than as described in Article
      1

    

    13.4 If
      Borrower refuses or otherwise prevent Lender (including its authorized
      representative) from supervising and inspecting the Borrower’s use of the Loan
      proceeds

    

    13.5 If
      other
      debts or liabilities of Borrower affect or may affect its ability to satisfy
      its
      obligations to Lender

    

    13.6 If
      Borrower is in financial difficulties or is involved in litigation, arbitration
      or other legal proceedings, the occurrence of any one of which in Lender’s
      opinion affect or may affect Lender’s rights under the Agreement

    

    13.7 If
      any
      part or all of the Guaranty is ineffective or terminated or is not effectuated,
      and Borrower fails to secure new guaranty at the request of
      Lender

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    13.8 If
      Borrower disposes its assets or contractual rights without Lender’s
      authorization, or if any other event occurs that affect Borrower’s ability to
      repay the Loan

    

    Article
      14 Remedies

    On
      the
      occurrence of any Event of Breach, Lender shall be entitled to do any one of
      the
      following or combination thereof:

    

    14.1 Declare
      the Loan due immediately and demand repayment of the Loan and all outstanding
      interests and related fees;

    

    14.2 Exercise
      its rights under the Guaranty; and/or 

    

    14.3 Terminate
      its relationship with Borrower

     

    General
      Provisions

    

    Article
      15 During
      the Term, Borrower’s obligation to make annual repayments of the Loan is
      irrespective of Borrower’s ability to complete its plans

    

    Article
      16 Dispute
      Resolution

    

    The
      parties shall strive to settle any dispute arising from this Agreement through
      friendly consultation. In case no settlement can be reached through
      consultation, either party may submit the dispute to China International
      Economic and Trade Arbitration Commission (“CIETAC”) for arbitration in Beijing
      in accordance with the rules of CIETAC. The decision of the CIETAC shall be
      final and binding upon all parties. During the period when a dispute is being
      resolved, the parties shall in all other respects continue their implementation
      of this Agreement.

     

    Article
      17 Effective
      Date of this Agreement

    

    This
      Agreement shall become effective on the date the representatives of all parties
      sign the Agreement.

    

    Article
      18 Notice

    

    Notices
      pursuant to this Agreement shall be written in Chinese and shall be delivered
      or
      sent by mail, telegram or facsimile transmission to the address of the relevant
      party set forth below. A party shall provide written notice of any change in
      address or facsimile number within 10 days prior to the change.

    

    Article
      19 Four
      copies of this Agreement shall be made, one copy to each party, and each copy
      having the same force and effect. 

    

    [Remainder
      of Page Intentionally Blank]

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    [Signature
      Page]

     

    

    Borrower:  

    Pinglu
      County Changhong Ferroalloy Co., Ltd.

    

    /s/
      Beicang Hou

      
        

      

    

    Legal
      Representative: 

    

    

    Lender
      (Pledgee): 

    Shanxi
      Bestlink Management Consulting Co., Ltd. 

    

    /s/
      Beicang Hou

      

    

    Legal
      Representative: 

     

    

    Guarantor: 

    

    /s/
      Beicang Hou

      

    

    Beicang
      Hou

    

    

    Guarantor: 

    

    /s/
      Yaoting Ren

      

    

    Yaoting
      Ren 

    

    

    Guarantor:
       

    

    /s/
      Zengguan Li

      

    

    Zengguan
      LiAMENDMENT
      NO. 1 TO EMPLOYMENT AGREEMENT

    

    This
      Amendment No. 1 to the Employment Agreement ("Amendment") is made and entered
      into as of May 17, 2007 by and between Peerless Systems Corporation, a Delaware
      corporation ("Peerless") and Richard L. Roll ("Executive").

     

    WHEREAS,
      Executive is currently employed by Peerless pursuant to a written employment
      agreement executed as of December 15, 2006 (the "Employment
      Agreement");

    

    WHEREAS,
      Executive and Peerless wish to modify the "Change in Control" definition of
      the
      Employment Agreement to be consistent with the "Change in Control" definition
      in
      the form of change in control severance agreement entered into between Peerless
      and certain other members of senior management;

    

    THEREFORE,
      the parties agree as follows:

    

    1. The
      "Change in Control" definition of the Employment Agreement shall be modified
      so
      that it reads as follows:

    

    "Change
      in Control" shall mean (i) the acquisition by any person, entity or group (other
      than Peerless, its subsidiaries or any employee benefit plan of Peerless) of
      fifty percent (50%) or more of the combined voting power of Peerless’ then
      outstanding securities, (ii) a change, during any period of two consecutive
      years, in a majority or more of the Board, if the new members have not been
      approved by at least two-thirds of the incumbent Board, (iii) the consummation
      by Peerless of a merger, consolidation, reorganization or business combination
      of Peerless, a sale or other disposition of all or substantially all of
      Peerless' assets or the acquisition of assets or stock of another entity, in
      each case other than a transaction in which the voting securities of Peerless
      immediately prior thereto continue to represent at least fifty percent (50%)
      of
      the combined voting power of the outstanding voting securities of the surviving
      entity immediately after such transaction, or (iv) a liquidation or dissolution
      of Peerless.

    

    2. Any
      capitalized terms in this Amendment that are not defined herein shall have
      the
      same meaning as set forth in the Employment Agreement.

    

    3. Except
      as
      expressly set forth above, this Amendment shall not amend, supersede or
      otherwise modify any provision of the Employment Agreement.

    

      
        	 	
                Peerless
                  Systems Corporation

              
	
                 

              	 
	 	
                /s/
                  William B. Patton Jr.

              
	 	
                By: 
                  William B. Patton, Jr.

              
	 	
                Chairman,
                  Compensation

              
	 	
                Committee

              
	 	 
	 	
                EXECUTIVE

              
	 	 
	 	
                /s/
                  Richard L. Roll

              
	 	
                Richard
                  L. Roll

              

      

    

     

     

    
      
         

      

      
        -1-

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