Document:

English
      Translation of Loan Contract

     

    Contract
      No.: Nong Yin Jie Zi (2006) No. 0421012006000087

    

    Borrower:
      Winner Medical (Huanggang) Co., Ltd.

    

    Lender:
      Huanggang Branch of Agricultural Bank of China

     

    Article
      1 The Loan

     

    
      	
              1.

            	
              The
                type of the loan is short-term
                loan.

            

    

    

    
      	
              2.

            	
              The
                purpose of the loan is for purchase of
                cotton.

            

    

    

    
      	
              3.

            	
              Currency
                and amount of the loan: RMB Five Million Yuan
                Only

            

    

    

    
      	
              4.

            	
              Term
                of the loan:

            
	 	 	 
	 	
              a.

            	
              The
                term of the loan is illustrated as
                follows:

            

    

    

    
      	
              Granting
                of the Loan

            	 	
              Maturity
                of the Loan

            
	
              Date

            	 	
              Amount
                (yuan)

            	 	
              Date

            	 	
              Amount
                (yuan)

            
	
              August
                14, 2006

            	 	
              RMB
                5 million

            	 	
              February
                13, 2007

            	 	
              RMB
                5 million

            

    

    

    
      	 	
              b.

            	
              If
                there is any discrepancy regarding the commencement date, mature
                date,
                interest rate and amount of the loan between this Contract and the
                specific loan certificate which is an integral part to this Contract,
                the
                latter shall prevail. 

            
	 	 	 
	 	
              c.

            	
              The
                Borrower shall repay the loan in the original
                currency.

            

    

    

    
      	
              5.

            	
              Interest
                rate:

            

    

     

    The
      interest rate under this Contract is fixed rate: the annual interest rate shall
      be 5.4%. The basic interest rate is the interest rate for loan in RMB for the
      same period as promulgated by the People’s Bank of China. 

    

    
      	
              6.

            	
              Payment
                of Interest

            

    

     

    The
      interest shall be paid monthly on the 20th
      day of
      each month. If the date of repayment of the last installment of the principal
      is
      not the interest payment day, the unpaid interest shall be paid with the last
      installment of principal at a daily interest rate equivalent to one thirtieth
      of
      the monthly interest rate.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Article
      2 The Lender is entitled to withhold the loan unless all of the following
      requirements are met:

     

    
      	
              1.

            	
              The
                Borrower opens its basic account in the
                Lender;

            

    

    

    
      	
              2.

            	
              The
                Borrower provides all necessary documentations, materials and go
                through
                all procedures as required by the
                Lender;

            

    

    

    
      	
              3.

            	
              In
                case that the loan is in foreign currency, the Borrower shall go
                through
                all the legal procedures for approval, registration etc. in accordance
                with the relevant laws and
                regulations;

            

    

    

    
      	
              4.

            	
              In
                case that the mortgage or pledge is required for the loan under this
                Contract, the relevant legal procedures such as registration and/or
                insurance etc. have been completed and the said security and insurance
                are
                continuously valid. In case that the guaranty is required, the relevant
                guaranty contract has been signed and become
                effective.

            

    

     

    Article
      3  Rights
      and Obligations of Lender

     

    
      	
              1.

            	
              The
                Lender is entitled to know the production, operation, financial
                activities, material storage, usage of the loan etc. of the Borrower.
                The
                Lender is also entitled to demand the Borrower to regularly provide
                the
                relevant documentation, information and materials such as the financial
                report etc. 

            

    

    

    
      	
              2.

            	
              In
                case of any negative circumstance which may impair the timely repayment
                of
                the loan, including but not limited to the circumstances stated in
                clause
                7, 8, 10 of Article 4 of this Contract, the Lender is entitled to
                withhold
                the granting of the loan or demand prepayment of the
                loan.

            

    

    

    
      	
              3

            	
              The
                Lender is entitled to transfer the relevant amount from any account
                of the
                Borrower for repayment or prepayment of principal, interest, penalty
                interest, compound interest or other fees owed by the Borrower.
                

            

    

    

    
      	
              4.

            	
              In
                case that the payment made by the Borrower is not sufficient for
                all
                indebtedness of the Borrower under this Contract, the Lender is entitled
                to choose to use such payment for settlement of principal, interest,
                penalty interest, compound interest or other
                fee.

            

    

    

    
      	
              5.

            	
              The
                Lender is entitled to disclose the default by the Borrower to the
                public.
                

            

    

    

    
      	
              6.

            	
              The
                Lender shall grant the loan to the Borrower timely and in full amount
                in
                accordance with this Contract.

            

    

     

    Article
      4 Rights and Obligations of Borrower

     

    
      	
              1.

            	
              The
                Borrower is entitled to receive and use the loan in accordance with
                this
                Contract.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              2.

            	
              The
                Borrower shall use the bank account stated under Article 2 of this
                Contract for the purpose of payment, settlement and deposit related
                to the
                loan under this Contract.

            

    

    

    
      	
              3.

            	
              In
                case that the loan is in foreign currency, the Borrower shall go
                through
                all the legal procedures for approval, registration etc. in accordance
                with the relevant laws and
                regulations.

            

    

    

    
      	
              4.

            	
              The
                Borrower shall repay the principal and interest of the loan in time.
                In
                case that the Borrower wishes to extend the loan term, the Borrower
                shall
                submit a written application to the Lender 15 days before the maturity
                date and shall sign the extension contract with the Lender subject
                to the
                approval by the Lender.

            

    

    

    
      	
              5.

            	
              The
                Borrower shall use the loan for the agreed purpose and shall not
                embezzle
                or use the loan for other purpose.

            

    

    

    
      	
              6.

            	
              The
                Borrower shall provide the truthful, complete and valid financial
                report
                and other relevant information, materials to the Lender monthly and
                shall
                cooperate with the Lender to assist the Lender to supervise the business
                operation, financial activities and usage of the loan by the
                Borrower.

            

    

    

    
      	
              7.

            	
              In
                case of contractual management, lease, transformation of stock system,
                co-management, merger, acquisition, division, joint venture, asset
                transfer, application for cease of operation, application for dissolution,
                application for bankruptcy etc. of the Borrower which may cause the
                change
                of indebtedness under this Contract or impair the realization of
                its
                rights by the Lender, the Borrower shall give prior written notification
                to the Lender and obtain the approval by the Lender. The Borrower
                shall
                also settle its indebtedness before maturity or make specific arrangement
                for the settlement of its indebtedness, or otherwise the Borrower
                shall
                not conduct any of the aforementioned
                activities.

            

    

    

    
      	
              8.

            	
              In
                case of any other circumstance such as cease of production, cease
                of
                business operation, cancellation of business registration, revoke
                of
                business license, violation of law by legal representative or other
                senior
                management staff, major litigation or arbitration, major difficulty
                in
                business operation, deterioration of financial status etc., which
                may
                affect the performance by the Borrower of its obligations under this
                Contract, the Borrower shall notify the Lender immediately in writing
                and
                make specific arrangement for the settlement of its indebtedness
                as
                acceptable to the Lender.

            

    

    

    
      	
              9.

            	
              The
                Borrower shall notify in writing the Lender of and obtain the approval
                by
                the Lender for the granting of guaranty to other third party or mortgage
                or pledge its major assets to secure the indebtedness of other third
                party
                which may affect the performance by the Borrower of its obligations
                under
                this Contract.

            

    

    

    
      	
              10.

            	
              The
                Borrower and its investors shall not withdraw their capital or transfer
                their assets/shares in order to avoid their oblations.
                

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              11.

            	
              The
                Borrower shall notify the Lender in writing of any alteration of
                company
                name, legal representative, address and business scope etc.
                

            

    

    

    
      	
              12.

            	
              In
                case that the guarantor for the loan lose part or whole of its capacity
                to
                perform its obligation of guaranty due to cease of production, cease
                of
                business operation, cancellation of registration, revoke of business
                license, bankruptcy or insolvency, or the collateral, mortgage or
                pledged
                rights for the loan depreciate or are damaged, the Borrower shall
                provide
                other security acceptable to the
                Lender.

            

    

    

    
      	
              13.

            	
              The
                Borrower shall bear all fees for lawyer’s service, insurance,
                transportation, evaluation, registration, storage, authentication,
                notary
                etc. which are related to this Contract or to the security under
                this
                Contract.

            

    

     

    Article
      5 Pre-repayment

     

    The
      Borrower should obtain consent from the Lender for pre-repayment. Under the
      condition that consent from the Lender is obtained for pre-repayment, interest
      shall be calculated in accordance with the agreed interest rate for the actual
      borrowed loan term.

    

    Article
      6 Breach of Contract

     

    
      	
              1.

            	
              In
                case that the Lender fails to provide the loan to the Borrower timely
                and
                in full amount in accordance with this Contract and incurs loss to
                the
                Borrower, the Lender shall pay the compensation to the Borrower which
                shall be equivalent to the interest for delayed withdrawal of loan
                for the
                same amount and same period.

            

    

    

    
      	
              2.

            	
              In
                case that the Borrower fails to repay the principal of the loan in
                accordance with this Contract, the Lender shall charge a penalty
                interest
                which is 30% of the agreed interest rate until all principal and
                interest
                are paid up. The penalty interest rate shall be increased accordingly
                if
                the basic interest rate for loan in RMB for the same period promulgated
                by
                the People’s Bank of China is
                increased.

            

    

    

    
      	
              3.

            	
              In
                case that the Borrower uses the loan for purpose other than that
                stipulated in this Contract, the Lender shall charge a penalty interest
                equivalent to 50% of the agreed interest rate until all principal
                and
                interest are paid up. The penalty interest rate shall be increased
                accordingly if the basic interest rate for loan in RMB for the same
                period
                promulgated by the People’s Bank of China is
                increased.

            

    

    

    
      	
              4.

            	
              The
                Lender shall charge the compound interest for unpaid due interest
                in
                accordance with relevant rules of People’s Bank of
                China.

            

    

    

    
      	
              5.

            	
              In
                case of breach of obligation under this Contract by the Borrower,
                the
                Lender is entitled to demand the Borrower to correct its conduct
                within
                specific period, cease the granting of loan, demand prepayment of
                the
                loan, declare all loans under any other contracts between the Borrower
                and
                the Lender become mature immediately or take other security
                measures.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              6.

            	
              In
                case of breach of obligation under the guaranty contract by the guarantor,
                the Lender is entitled to cease the granting of loan, demand prepayment
                of
                the loan or take other security
                measures.

            

    

    

    
      	
              7.

            	
              The
                Borrower shall bear the lawyer’s fee, travel cost or other expenses
                incurred to the Lender in realizing its creditor’s right through
                litigation or arbitration due to breach of contract by the
                Borrower.

            

    

    

    Article
      7 Security

     

    The
      security for the loan under this Contract is guaranty and pledge and the
      relevant guaranty contract (contract number NO42901200600000856) shall be signed
      separately. 

    

    Article
      8 Dispute Settlement

     

    Any
      dispute arising during the performance of this Contract shall be settled by
      litigation in the People’s Court located in the region of the
      Lender.

    

    Article
      9 Other Issues

     

    N/A

     

    Article
      10 Effectiveness

     

    This
      Contract shall come into effect once it is signed and stamped by both Parties.
      

    

    Article
      11 Originals

     

    This
      Contract has 3 originals. The Lender, the Borrower and the party providing
      security shall each retain 1 original. They are of the same legal
      effect.

    

    Article
      12 Attention

     

    The
      Lender has reminded the Borrower to understand this Contract comprehensively
      and
      accurately and has made necessary explanations upon the request of the Borrower.
      Both Parties have the same understanding about this Contract.

     

    
      	
              Borrower
                (official seal):

            	
              Winner
                Medical (Huanggang) Co., Ltd.

            
	
              Authorized
                Representative:

            	
            
	
               

            	
               

            
	
               

            	
               

            
	
              Lender
                (official seal):

            	
              Huanggang
                Branch of Agricultural Bank of China

            
	
              Authorized
                Representative:

            	
              Jun
                Long : /s/ Jun Long

            
	
               

            	
               

            
	
              Date:

            	
              July
                27, 2006

            
	
              Venue:English
      Translation of Mortgage Contract of Maximum Amount

    

    Contract
      No: Nong Yin Gao Bao Zi (2006) No. NO42901200600000856

    

    Mortgagee:
      Huanggang Branch of Agricultural Bank of China

    

    Debtor:
      Winner Medical (Huanggang) Co., Ltd.

    

    Mortgagor:
      Winner Industries (Shenzhen) Co. Ltd.

     

    Whereas:
      The
      Debtor and the Mortgagee have entered into a serial of Loan Contracts
      (hereinafter referred to as “Loan Contracts”) within the period and under the
      maximum amount as stipulated in Clause I of this Contract. The Mortgagor
      undertakes to provide security for the indebtedness of the Debtor under the
      Loan
      Contracts. In accordance with relevant PRC laws and regulations and through
      friendly negotiation, the Parties agree to enter into this
      Contract:

    

    
      	
              I.

            	
              Indebtedness
                to be Secured and Maximum
                Amount

            

    

    

    
      	
              1.

            	
              The
                Mortgagor undertakes to provide security for the Debtor’s indebtedness to
                the Mortgagee derived from its business dealing with the Mortgagee
                during
                the period from August 13, 2006 to August 13, 2007. The balance of
                the
                aforesaid indebtedness shall not exceed RMB 30 Million and indebtedness
                in
                foreign currency shall be calculated according to the selling price
                on the
                date of the dealing. The mature date of the aforesaid indebtedness
                shall
                not exceed August 13, 2008. The abovementioned dealings include both
                loans
                in RMB or foreign currency, L/C Issuance Finance, bankers acceptance
                and Import Letter of Credit. 

            

    

    

    
      	
              2.

            	
              Within
                the period and under the maximum amount as stipulated in this Contract,
                the Debtor is entitled to apply for revolving utilization of the
                abovementioned bank credit facilities. The beginning date, mature
                date,
                interest rate and amount of each borrowing shall be determined by
                the loan
                certificate or relevant credit certificate under the Loan Contracts.
                

            

    

    

    
      	
              3.

            	
              The
                Parties do not need to enter into individual security arrangement
                for each
                of the bank loan or bank facility granted by the Mortgagor within
                the
                period and under the maximum amount as stipulated in this Contract.
                

            

    

    

    
      	
              4.

            	
              The
                dealings may be carried out in any currency and the security is to
                secure
                the indebtedness in the borrowed currency.

            

    

     

    
      	
              II.

            	
              Scope
                of Security 

            

    

    

    The
      security under this Contract shall be to secure all of the loan principal,
      interest, penalty interest, breach of contract compensation and all the expenses
      such as litigation cost, lawyer’s fee, disposal cost of the collateral and
      transfer cost etc. which is incurred to the Mortgagee in realizing its
      creditor’s right. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    The
      security under this Contract shall also cover the indebtedness of the Debtor
      which exceeds the agreed maximum amount due to fluctuation of exchange rate
      of
      foreign currency.

     

    
      	
              III.

            	
              Collateral
                

            

    

    

    
      	
              1.

            	
              The
                Mortgagor agrees to mortgage its real property (please refer to the
                collateral list numbered Zhi Nong Yin Fang Di Qing No. 2005002 which
                is an
                integral part to this Contract) to the
                Mortgagee.

            

    

    

    
      	
              2.

            	
              The
                value of the abovementioned collateral is estimated preliminarily
                as RMB
                Three Million Four Hundred Thousand and shall be determined according
                to
                the net proceeds derived from the disposal of such collateral.
                

            

    

     

    
      	
              IV.

            	
              Undertakes
                of the Mortgagor

            

    

    

    The
      Mortgagor undertakes that:

     

    
      	
              1.

            	
              it
                has full and uncontroversial ownership and right of disposal for
                the
                collateral;

            

    

    

    
      	
              2.

            	
              the
                collateral is allowed by law to be transferred
                freely;

            

    

    

    
      	
              3.

            	
              there
                is no seizure, attachment or existing mortgage on the
                collateral;

            

    

    

    
      	
              4.

            	
              the
                Mortgagor does not conceal any fact of overdue tax, construction
                payment
                or lease in relation to the
                collateral;

            

    

    

    
      	
              5.

            	
              the
                co-owner’s consent for the security has been
                obtained;

            

    

    

    
      	
              6.

            	
              there
                is no other circumstance in relation to the collateral which may
                hinder
                the Mortgagee from realizing of its
                rights.

            

    

     

    
      	
              V.

            	
              Effect
                of the Mortgage

            

    

    

    The
      effect of the mortgage shall cover the adjunct, accessory right, composition,
      mixture and proceeds of the collateral.

     

    
      	
              VI.

            	
              Possession
                of the Collateral

            

    

     

    
      	
              1.

            	
              The
                collateral under this Contract shall be possessed and managed by
                the
                Mortgagor with due diligence. The Mortgagee is entitled to supervise
                and
                examine the possession and management of the
                collateral.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              2.

            	
              During
                the valid period of this Contract, the Mortgagor should not transfer,
                donate, sell, lease, re-security or dispose by other means of the
                collateral without the written approval by the Mortgagee. The proceeds
                from the transfer, donation, sale, lease, re-security or disposal
                by other
                means of the collateral with the written approval by the Mortgagee
                shall
                be used to settle the indebtedness under the Loan Contracts or be
                deposited in a third party designated by the Mortgagor and the Mortgagee.
                

            

    

    

    
      	
              3.

            	
              In
                case of loss, damage or confiscation of the collateral, the Mortgagor
                shall take all necessary efforts to minimize the loss and inform
                the
                Mortgagee in writing immediately. The insurance compensation or other
                compensation received by the Mortgagor under such circumstance shall
                be
                used with priority to settle the indebtedness under the Loan
                Contracts.

            

    

    

    
      	
              4.

            	
              In
                case of devaluation of the collateral, the Mortgagee is entitled
                to demand
                the Mortgagor to recover the value of the collateral or to provide
                other
                means of security. In case of failure of the Mortgagor to do so,
                the
                Mortgagee is entitled to declare the indebtedness under the Loan
                Contracts
                become mature immediately and demand the Debtor to perform its obligations
                or realize the security immediately.

            

    

     

    
      	
              VII.

            	
              Insurance
                for the Collateral

            

    

    

    
      	
              1.

            	
              The
                Mortgagor shall purchase the insurance for the collateral as instructed
                by
                the Mortgagee and the Mortgagee shall be the first
                beneficiary;

            

    

    

    
      	
              2.

            	
              The
                insurance policy shall be kept by the
                Mortgagee;

            

    

    

    
      	
              3.

            	
              The
                Mortgagor shall not terminate or cancel the insurance for any reason
                during the valid period of this
                Contract.

            

    

    

    
      	
              4.

            	
              The
                insurance compensation shall be used with priority to settle the
                indebtedness under the Loan Contracts and relevant
                cost.

            

    

     

    
      	
              VIII.

            	
              Registration
                of Security

            

    

    

    The
      Mortgagor shall register the security with competent registration authorities
      within 5 days after the signature of this Contract and provide the original
      certificates to the Mortgagee.

     

    
      	
              IX.

            	
              Realization
                of Mortgage 

            

    

    

    
      	
              1.

            	
              In
                case of breach of contract by the Mortgagor or Debtor under the Loan
                Contracts or this Contract, the Mortgagee is entitled to declare
                the
                indebtedness under the Loan Contracts become mature immediately and
                to
                realize the mortgage under this
                Contract.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    In
      case
      that the Debtor fails to perform its obligations under any of the Loan Contracts
      upon maturity, the Mortgagee is entitled to use the collateral to make up for
      the indebtedness or settle the outstanding indebtedness by the proceeds derived
      from the sale or auction of the collateral. The remaining proceeds shall be
      used
      to secure the non-mature indebtedness under the Loan Contracts or shall be
      deposited in a third party designated by the Mortgagor and the Mortgagee.

    

    
      	
              2.

            	
              If
                there is more than one Mortgagor, the Mortgagee is entitled to choose
                the
                collateral of any Mortgagor in realization of the
                security.

            

    

     

    
      	
              X.

            	
              Breach
                of Contract

            

    

    

    
      	
              1.

            	
              The
                Mortgagor and the Mortgagee shall perform their obligations under
                this
                Contract strictly after the effectiveness of this Contract. The breaching
                party shall compensate the loss of the other party incurred by its
                breach
                of contract.

            

    

    

    
      	
              2.

            	
              The
                Mortgagor shall compensate all the loss of the Mortgagee due
                to:

            
	 	 	 
	 	
              (1)

            	
              concealment
                of facts by the Mortgagor of co-ownership, dispute, seizure, attachment,
                over-mortgage, lease, overdue tax or construction payment etc. in
                relation
                to the collateral;

            

    

    

    
      	 	
              (2)

            	
              disposal
                of the collateral by the Mortgagor without written approval by the
                Mortgagee;

            
	 	 	 
	 	
              (3)

            	
              other
                breach of contract by the
                Mortgagor.

            

    

     

    
      	
              XI.

            	
              Cost

            

    

    

    All
      cost
      of registration, evaluation, insurance, notary, deposit, authentication etc.
      under this Contract shall be born by the Mortgagor.

     

    
      	
              XII.

            	
              Dispute
                Settlement

            

    

    

    Any
      dispute arising from this Contract shall be settled by litigation in the
      People’s Court located in the region of the Mortgagee.

     

    
      	
              XIII.

            	
              Other
                Issues

            

    

    

    The
      Mortgagor shall familiar itself of the business status of the Debtor and the
      occurrence and performance of the dealings under this Contract. The Loan
      Contracts, loan certificate or relevant credit certificate will not be served
      to
      the Mortgagor separately.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              XIV.

            	
              Effectiveness

            

    

    

    This
      Contract shall take effect once it is signed or stamped by all parties or once
      it is registered with the competent authorities as required by law.

    

    
      	
              XV.

            	
              This
                Contract has three originals and each party shall retain one original
                of
                the same legal effect.

            

    

     

    
      	
              XV.

            	
              Attention

            

    

    

    The
      Mortgagee has drawn the attention of the Mortgagor to understand each clause
      of
      this Contract clearly and comprehensively and has explained the relevant clauses
      upon the request of the Mortgagor. The parties have the same understanding
      about
      this Contract.

     

    
    

    
      	 	 	 
	
              Mortgagee (official seal): Huanggang
                Branch of
                Agricultural 

              Bank
                of China

            
	Authorized Representative (signature):
              Jun
              Long:	
            	/s/ Jun Long
	 	
              

            
	 
	 
	
              Mortgagor
                (official seal): Winner Industries (Shenzhen) Co., 

              Ltd.

            
	Authorized Representative (signature):
              Xiuyuan Fang:	/s/ Xiuyuan Fang
	 	
              

            
	
              Date:
                July 27, 2006

              Venue:
                Longhua, Shenzhen City

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]