Document:

Exhibit 10.8

                                                         $1,415,836.00 Term Note
                                                           dated January 3, 2005

                             MODIFICATION AGREEMENT

This Modification Agreement ("Modification Agreement") is effective as of May 1,
2005. The parties to the Modification  Agreement are Screw Compression  Systems,
Inc. ("Borrower") and Western National Bank ("Lender").

                                    RECITALS

On January 3, 2005,  Borrower executed and delivered to Lender that certain Term
Promissory Note in the original principal sum of $1,415,836.00, bearing interest
at the rate stated therein, with a stated final maturity date of January 1, 2010
(the "Note"), pursuant to that certain Third Amended and Restated Loan Agreement
dated January 3, 2005 (the "Prior Loan  Agreement"),  as amended and restated in
that certain  Fourth  Amended and Restated Loan  Agreement  dated March 15, 2005
(the "Loan Agreement").  All liens,  security interests and assignments securing
the Note are collectively  called the "Liens".  Terms defined in the Note or the
Loan  Agreement  and not otherwise  defined  herein shall have the same meanings
here as in those documents.

At  Borrower's  request,  Borrower  and  Lender  have  agreed to enter into this
Modification  Agreement  to modify the  interest  provisions  of the Note and to
ratify the Liens. Said modified interest provisions shall be effective as of May
1, 2005.

                                    AGREEMENT

1.  Modification  of Interest  Provisions  of the Note. In lieu of the following
provisions which were contained in the first paragraph of the Note:

                  "...at a rate per annum  which  shall from day to day be equal
         to the lesser of (a) a rate per annum (the "Established Rate") equal to
         the greater of (i) one percent  (1%) over the Prime Rate in effect from
         day to day, or (ii) six percent (6.0%), or (b) the Highest Lawful Rate,
         in each  case  calculated  on the  basis of actual  days  elapsed,  but
         computed as if each calendar year consisted of 360 days."

such provisions of the Note are changed to read in their entirety as follows:

                  "...at a rate per annum  which  shall from day to day be equal
         to the lesser of (a) a rate per annum (the "Established Rate") equal to
         the  greater  of (i)  one-half  percent  (0.5%)  over the Prime Rate in
         effect from day to day, or (ii) six percent (6.0%),  or (b) the Highest
         Lawful  Rate,  in each case  calculated  on the  basis of  actual  days
         elapsed, but computed as if each calendar year consisted of 360 days."

                                                                               1
<PAGE>

3.  Ratification  of Liens.  Borrower  and Lender  further  agree that all Liens
securing  the Note  shall  continue  and  carry  forward  until the Note and all
indebtedness  evidenced  thereby is paid in full.  Borrower  further agrees that
such liens are hereby ratified and affirmed as valid and subsisting  against the
collateral described therein,  and that this Modification  Agreement shall in no
manner  vitiate,  affect or impair the Note or the Liens  (except  as  expressly
modified in this  Modification  Agreement)  and that such Liens shall not in any
manner be waived, released, altered or modified.

4. Miscellaneous.

         (a)      As modified  hereby,  the provisions of the Note and the Liens
                  shall  continue  in  full  force  and  effect,   and  Borrower
                  acknowledges  and affirms its liability to Lender  thereunder.
                  In the event of an  inconsistency  between  this  Modification
                  Agreement  and the  terms  of the Note or of the  Liens,  this
                  Modification Agreement shall govern.

         (b)      Borrower hereby agrees to pay all costs and expenses  incurred
                  by Lender in connection with the execution and  administration
                  of this Modification Agreement.

         (c)      Any default by Borrower in the  performance of its obligations
                  herein contained shall constitute a default under the Note and
                  the Liens and shall allow Lender to exercise any or all of its
                  remedies  set  forth in such  Note  and  Liens or at law or in
                  equity.

         (d)      Lender  does  not,  by  its  execution  of  this  Modification
                  Agreement, waive any rights it may have against any person not
                  a party hereto.

         (e)      All terms, provisions,  covenants,  agreements, and conditions
                  of the Note and the Liens are  unchanged,  except as  provided
                  herein.  Borrower agrees that this Modification  Agreement and
                  all of the covenants and agreements  contained herein shall be
                  binding upon Borrower and shall inure to the benefit of Lender
                  and  each  of  their  respective   heirs,   executors,   legal
                  representatives, successors, and permitted assigns.

                  THIS  MODIFICATION  AGREEMENT  REPRESENTS THE FINAL  AGREEMENT
                  BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
                  PRIOR, CONTEMPORANEOUS,  OR SUBSEQUENT ORAL AGREE MENTS OF THE
                  PARTIES.  THERE ARE NO UNWRITTEN ORAL  AGREEMENTS  BETWEEN THE
                  PARTIES.

                                                                               2
<PAGE>

                                     Borrower:
                                     ---------

                                     Screw Compression Systems, Inc.

                                     By: /s/ Paul D. Hensley
                                        ----------------------------------------
                                        Paul D. Hensley, President

                                     Lender:
                                     -------

                                     Western National Bank

                                     By /s/ Scott A. Lovet
                                       -----------------------------------------
                                       Scott A. Lovett, Executive Vice President

STATE OF OKLAHOMA    ss.
                     ss.
COUNTY OF ROGERS     ss.

         This instrument was acknowledged  before me on May 10, 2005, by Paul D.
Hensley,  President of Screw Compression Systems, Inc., a Texas corporation,  on
behalf of said corporation.

                                       Notary Public, State of Oklahoma

                                       Printed Name: Deborah K. Tullos
                                                    ----------------------------

                                       Commission Expires: August 17, 2005
                                                          ----------------------

STATE OF TEXAS       ss.
                     ss.
COUNTY OF MIDLAND    ss.

         This instrument was acknowledged before me on May 11, 2005, by Scott A.
Lovett,  Executive Vice President of Western  National Bank, a national  banking
association, on behalf of said association.

                                        /s/ Deborah K. Tullos
                                       -----------------------------------------
                                       Notary Public, State of Texas

                                                                               3Exhibit 10.1

                         WAIVER AND AMENDMENT AGREEMENT

         WAIVER  AND  AMENDMENT  AGREEMENT,  dated  as  of  May  4,  2005  (this
"Amendment Agreement"), by and between HQ Sustainable Maritime Industries, Inc.,
a corporation  organized  and existing  under the laws of the State of Delaware,
U.S.A.  ("HQSM") and Sino-Sult  Canada  (S.S.C.)  Limited,  a limited  liability
corporation  organized  and  existing  under the laws of the  country  of Canada
("Sino-Sult").

                                    RECITALS

A. Pursuant to that certain Purchase Agreement, dated as of August 17, 2004 (the
"Purchase Agreement"),  by and among HQSM, Sino-Sult and Sealink Wealth Limited,
a limited  liability  corporation  organized and existing  under the laws of the
British Virgin Islands, HQSM made in favor of Sino-Sult a Convertible Promissory
Note,  dated August 17, 2004 (the "Note"),  in the original  principal amount of
U.S.  $11,111,345.  In accordance  with the terms  thereof,  the Note matured in
October of 2004.

B. Pursuant to a letter dated November 4, 2004 (the "Demand Letter"),  Sino-Sult
demanded of HQSM payment in full of the  principal  amount and accrued  interest
due and  outstanding  under the Note or, in lieu of such payment and in full and
complete  satisfaction of the Note, offered to accept (1) 15,730,493 shares (the
"Common  Shares")  of common  stock,  $0.001 par value per share,  of HQSM,  (2)
100,000 shares (the "Preferred Shares") of preferred stock, $0.001 par value per
share, of HQSM, issuable pursuant to a certificate of designation; provided that
HQSM shall make a cash payment to  Sino-Sult of the accrued and unpaid  interest
on the Note (the "Cash Payment").

C.  Pursuant  to that  certain  Agreement,  dated as of  November  4,  2004 (the
"Agreement"),  by and among HQSM and  Sino-Sult,  HQSM  accepted such offer from
Sino-Sult  and HQSM issued the Common  Shares to  Sino-Sult  in  November  2004;
agreed to issue and deliver to Sino-Sult one or more  certificates  representing
the Preferred Shares as promptly as feasible, but in any event no later than the
earliest  of (i)  ten  (10)  calendar  days  following  receipt  by  HQSM of all
requisite approvals  (including without limitation,  shareholder  approvals) for
such issuance,  and (ii) the six (6) month anniversary of the date of the Demand
Letter;  and  agreed  to make the Cash  Payment  to  Sino-Sult  as  promptly  as
feasible,  but in any event no later than 10 days  following  the  execution and
delivery of the Agreement.

D. HQSM and Sino-Sult now wish to amend the Agreement to (i) extend the due date
for the issuance and delivery of the Preferred  Shares;  and (ii) extend the due
date for delivery of the Cash Payment.

E.  Sino-Sult  has also agreed to waive any and all defaults  that have occurred
and presently exist under the Agreement and under the Note.

         NOW  THEREFORE,  in  consideration  of the  foregoing  and  the  mutual
covenants  and  agreements  set forth  below,  and for other  good and  valuable
consideration,  the receipt and adequacy of which are hereby  acknowledged,  the
parties hereto hereby agree as follows:

<PAGE>

I.       Amendment after Agreement

         1.  Section  1.01(b) of the  Agreement  is hereby  amended by  deleting
therefrom  the phrase "the six (6) month  anniversary  of the date of the Demand
Letter"  and by  inserting  in lieu  thereof  the phrase  "the twelve (12) month
anniversary date of the Demand Letter".

         2.  Section  1.01(c) of the  Agreement  is hereby  amended by  deleting
therefrom  the phrase  "ten (10)  calendar  days  following  the  execution  and
delivery of the Agreement by the parties  hereto," and inserting in lieu thereof
the phrase "the twelve (12) month anniversary date of the Demand Letter".

II.      Waiver of Defaults

         Sino-Sult hereby waives any and all defaults that have occurred and are
continuing  under  the  Agreement  and  under  the  Note,   including,   without
limitation,  default  related  to  non-payment  by HQSM of the Cash  Payment  in
accordance with the terms of the Agreement.

III.     No Other Modifications

         Except as specifically  amended herein, the terms and provisions of the
Agreement shall remain unchanged and in full force.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.

HQ SUSTAINABLE MARITIME INDUSTRIES, INC.

By:  /s/ Norbert Sporns
   ----------------------
Name:  Norbert Sporns
Title: CEO and President

SINO-SULT CANADA (S.S.C.) LIMITED

By:  /s/ Lillian Wang Li
   ----------------------
Name:  Lillian Wang Li
Title: Director

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