Document:

EXHIBIT
      10.19

     

    Loan
      Contract

     

    Contract
      No.: (Zhi) Nong Yin Jie Zi (2005) No. 004

    

    

    Borrower:
      Winner Medical & Textile Ltd. Yichang 

    

    Lender:
      Zhijiang 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 raw
                materials.

            

    

    

    
      	3.	
              Currency
                and amount of the loan: RMB Two 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)

            
	
              June
                2005

            	
              RMB
                2 million

            	
              June
                16th
                2006

            	
              RMB
                2 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 floating rate: the annual interest rate
      shall be 8.37%, which is 50% higher than the basic interest rate. 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.

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

     

    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.

            

    

     

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    
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.

            

    

     

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    
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 150% 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 200% 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 and pledge contract 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 & Textile Ltd. Yichang

            
	
              Authorized
                Representative:

            	
              Rongqun
                Wang

            
	 	 
	 	 
	
              Lender
                (official
                seal):

            	
              Zhijiang
                Branch of Agricultural Bank of China

            
	
              Authorized
                Representative:

            	
              Zhaohua
                Zeng

            
	 	 
	
              Date:

            	
              June
                16th,
                2005

            
	
              Venue:

            	
              Zhijiang
                City

            
	 	 
	 	 
	
              -4-EXHIBIT
      10.20

     

    Loan
      Contract

    

    Contract
      No.: Year 2005 Shang Zi No. 1005470035

    

     

    Lender:
      Shenzhen Honggang Branch of China Merchants Bank ("Party
      A")

    

    Borrower:
      Winner Industries (Shenzhen) Co., Ltd. ("Party B")

     

    Whereas
      Party B has applied to Party A for working capital loan for the purpose of
      turnover of working capital (the "Loan")
      and,
      upon examinations, Party A has agreed to grant the Loan to Party B. Parties
      A
      and B, after thorough negotiations, hereby enter into this Contract subject
      to
      the following terms and conditions and in accordance with relevant laws and
      regulations: 

     

    
      	1.	
              TYPE
                OF THE LOAN

            

    

    The
      type
      of the Loan is working capital loan.

    

    
      	2.	
              CURRENCY
                AND AMOUNT OF THE LOAN

            

    

    The
      Loan
      is RMB 5,000,000 yuan only.

    

    
      	3.	
              PURPOSE
                OF THE LOAN

            

    

    The
      Loan
      shall be used for turnover of working capital only. Party B shall not change
      the
      purpose of the Loan without written consent from Party A.

    

    
      	4.	
              TERM
                OF THE LOAN

            

    

    The
      Loan
      is granted for a term of 6 months, commencing from July 27th,
      2005 to
      January 27th,
      2006.
      If the actual drawdown date of the Loan is different from the above-mentioned
      commencement date, the commencement and maturity dates of the Loan shall be
      the
      dates prescribed in the relevant certificate of indebtedness.

    

    
      	5.	
              INTEREST
                RATE AND INTEREST

            

    

    
      	
            	5.1	
              Interest
                rate: Interest of the Loan is calculated at the rate of 5.22 % per
                annum.

            

    

    

    The
      interest rate of the Loan shall be finally confirmed by the rate stated on
      the
      certificate of indebtedness.

     

    If
      Party
      B changes the purpose of the Loan, Party A is entitled to charge interest on
      the
      misused portion of the Loan at the rate equaling to 2 times of the normal Loan
      interest rate based on misused days.

     

    If
      Party
      B fails to repay the Loan before the due date, Party A is entitled to charge
      interest on the amount in default at the rate equaling to 1.5 times of the
      normal Loan interest rate.

     

    If
      both
      events above-mentioned occur simultaneously, Party B should impose penalty
      based
      on the breach which is more severe instead of based on both events.

     

    If
      the
      People’s Bank of China changes the lending rate during the term of the Loan, the
      interest of the Loan shall be calculated in accordance with the provisions
      relating to such change.

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    

    
      	
            	5.2	
              Calculation
                of interest: Interest shall accrue from the drawdown date of the
                Loan on
                the basis of the actual amount granted and the actual days elapsed
                and
                shall be calculated once a month at the 20th day of each
                month.

            

    

    

    
      	
            	5.3	
              Payment
                of interest: Party B shall pay the interest on each interest calculation
                date. Party A may deduct the interest directly from Party B’s deposit
                account. If Party B fails to pay the interest by the time prescribed,
                Party A is entitled to charge compound interest on the interest in
                default.

            

    

    

    
      	6.	
              GUARANTEE
                CLAUSE

            

    

    
      	
            	6.1	
              The
                principal and interest of the Loan and all other relevant expenses
                hereunder shall be guaranteed by Winner Medical & Textile Ltd.
                Jingmen, Winner Medical & Textile Ltd. Tianmen, Winner Medical &
                Textile Ltd. Yichang under an Irrevocable Letter of Guarantee issued
                in
                favor of Party A; and

            

    

    

    
      	
            	6.2	
              The
                Loan under this Contract shall be secured by the collateral, i.e.,
                real
                properties, to which Winner Industries (Shenzhen) Co., Ltd. has title
                and
                the two parties shall enter into a Mortgage Contract
                separately.

            

    

    

    
      	
            	6.3	
              Other
                enforcement of guarantee: Jianquan Li provides limitless personal
                liability guarantee.

            

    

    

    
      	7.	
              RIGHTS
                AND OBLIGATIONS OF PARTY B

            

    

    
      	
            	7.1	
              Party
                B shall have the following rights:

            

    

    
      	
            	7.1.1	
              To
                draw down and use the whole of the Loan according to this
                Contract;

            

    

    
      	
            	7.1.2	
              To
                refuse to accept any conditions other than those set forth
                herein;

            

    

    
      	
            	7.1.3	
              To
                assign the debts to a third party after obtaining consent from Party
                A.

            

    

    

    
      	
            	7.2	
              Party
                B shall undertake the following
                obligations:

            

    

    
      	
            	7.2.1	
              It
                shall provide such true documents and materials as Party A requires
                and
                the information on all its bank accounts, including the banks with
                which
                Party B maintains such accounts, the account numbers and the balances
                of
                its deposits and loans, and it shall also give cooperation in Party
                A's
                investigations, reviews and
                examinations;

            

    

    
      	
            	7.2.2	
              It
                shall accept Party A’s supervision over its use of credit facilities,
                operations and financial
                activities;

            

    

    
      	
            	7.2.3	
              It
                shall use the Loan for the purpose prescribed in this
                Contract;

            

    

    
      	
            	7.2.4	
              It
                shall make timely and full payment of the principal and interest
                of the
                Loan as agreed herein;

            

    

    
      	
            	7.2.5	
              It
                shall obtain written consent from Party A before transferring the
                debts
                hereunder, in whole or in part, to a third
                party;

            

    

    
      	
            	7.2.6	
              It
                shall forthwith notify Party A of any occurrence of the following
                events
                and make every effort to take measures, on Party A's demand, for
                securing
                timely and full payment of the principal and interest of the Loan
                and all
                other relevant expenses hereunder: 

            

    

    
      	
            	7.2.6.1	
              It
                suffers grave financial loss, asset damage or other financial
                distress;

            

    

    
      	
            	7.2.6.2	
              It
                offers a loan or guarantee or puts its property (right) in mortgage
                (pledge), for the benefits of a third party or to keep that party
                harmless
                to any loss;

            

    

    
      	
            	7.2.6.3	
              Occurrence
                of changes like amalgamation (merger), division, reorganization,
                equity
                (cooperative) joint venture, transfer of equity, transformation into
                shareholding company, etc.;

            

    

    
      	
            	7.2.6.4	
              It
                winds up its business, has its business license revoked or cancelled,
                has
                filed or been presented the bankruptcy or dissolution petition and
                so
                forth;

            

    

    
      	
            	7.2.6.5	
              Its
                controlling shareholder and other affiliates suffer great difficulty
                in
                business or financial condition which affects its normal
                operation;

            

    

    
      	
            	7.2.6.6	
              It
                concludes material connected transactions with its controlling shareholder
                and other affiliates which affect its normal
                operation;

            

    

    
      	
            	7.2.6.7	
              It
                is involved in any litigation or arbitration or imposed on any criminal
                or
                administrative penalty, having material adverse effects on its business
                or
                property;

            

    

    
      	
            	7.2.6.8	
              Other
                material events which are likely to affect its solvency take
                place.

            

    

     

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    
      	8.	
              RIGHTS
                AND OBLIGATIONS OF PARTY A

            

    

    
      	
            	8.1	
              Party
                A shall have the following rights:

            

    

    
      	
            	8.1.1	
              To
                require Party B to make payment of the principal and interest of
                the Loan
                when they become due;

            

    

    
      	
            	8.1.2	
              To
                require Party B to provide any information relating to the
                Loan;

            

    

    
      	
            	8.1.3	
              To
                look into the operations and financial activities of Party
                B;

            

    

    
      	
            	8.1.4	
              To
                supervise Party B on its usage of the Loan for the purpose prescribed
                herein;

            

    

    
      	
            	8.1.5	
              To
                deduct the principal and interest of the Loan directly from Party
                B’s
                account;

            

    

    
      	
            	8.1.6	
              To
                require Party B to prepay the Loan before due date or stop Party
                B from
                making further drawdown in accordance with the provisions hereof
                if Party
                B is in default of performance of its obligations
                hereunder;

            

    

    
      	
            	8.1.7	
              To
                require Party B to pay in full the principal and interest of the
                Loan and
                all other relevant expenses hereunder immediately, to transfer all
                the
                debts hereunder to an assignee acceptable to Party A, or to
                provide/increase security acceptable to Party A if Party B is found
                to
                have been in any of the situations specified in Clause
                7.2.6.

            

    

    

    
      	
            	8.2	
              Party
                A shall undertake the following
                obligations:

            

    

    
      	
            	8.2.1	
              To
                grant the Loan to Party B upon the terms stated in this
                Contract;

            

    

    
      	
            	8.2.2	
              To
                keep Party B’s indebtedness, financial, production and operational
                conditions confidential unless otherwise required by
                law.

            

    

    

    
      	9.	
              PARTY
                B HEREBY WARRANTS THAT:

            

    

    
      	
            	9.1	
              It
                is an enterprise duly established and lawfully existing in accordance
                with
                the laws of China with the status of enterprise legal person and
                the full
                capacity of civil disposition to execute and perform this
                Contract;

            

    

    

    
      	
            	9.2	
              It
                executes and performs this Contract with proper authorization from
                its
                board of directors or any other
                authority;

            

    

     

    
      	
            	9.3	
              All
                the documents, information and instruments it has provided concerning
                itself, the guarantor, the mortgagor (the pledgor) and the security
                (the
                collateral) are true, accurate, complete and valid, and do not contain
                any
                material mistakes with reference to the facts or omit any material
                facts;

            

    

    

    
      	
            	9.4	
              At
                the time of signing of this Contract, there is no litigation, arbitration
                or criminal or administrative penalty which has material adverse
                effects
                on Party B or its major assets, nor the occurrence of such litigation,
                arbitration or criminal or administrative penalty is expected during
                performance of this Contract, and Party B shall forthwith notify
                Party A
                of any occurrence of such litigation, arbitration or criminal or
                administrative penalty;

            

    

    

    
      	
            	9.5	
              It
                will keep its operations in full compliance with the national laws
                and
                regulations, conduct business within the business scope prescribed
                in its
                Business License for Enterprise Legal Person, and keep the registration
                of
                enterprise (legal person) in force by going through the annual examination
                formalities;

            

    

    

    
      	
            	9.6	
              It
                will maintain or improve its current operation and management, and
                ensure
                that its existing assets remain stable or appreciate in value; it
                will not
                waive its claim for the matured liabilities and dispose of its existing
                major assets for no consideration or in other improper
                manners;

            

    

    

    
      	
            	9.7	
              At
                the time of signing of this Contract, there occurs no material event
                which
                will affect Party B's performance of its obligations
                hereunder.

            

    

    

    
      	10.	
              PRE-REPAYMENT

            

    

    
      	
            	10.1	
              With
                the prior consent from Party A, Party B is allowed to make
                pre-repayment;

            

    

    

    
      	
            	10.2	
              Notwithstanding
                any pre-repayment by Party B, the interest shall be calculated pursuant
                to
                the provisions of this Contract.

            

    

     

    
      	11.	
              EXTENSION
                OF THE LOAN

            

    

    If
      Party
      B needs to procure extension of the Loan on its failure to repay the Loan
      hereunder when it becomes due, it shall apply in writing to Party A one month
      before the expiry date of this Contract. If Party A agrees to extend the Loan
      after examinations, Parties A and B shall enter into an agreement for extension
      of the loan contract separately. If Party A does not agree to do so, this
      Contract shall remain in force. Party B shall pay the utilized portion of the
      Loan and the interests thereon in accordance with the provisions of this
      Contract.

    

    
      	12.	
              EXPENSES

            

    

    All
      expenses arising from matters relating to this Contract, such as investigation
      of creditworthiness, examination and notarization, and all expenses incurred
      by
      Party A in enforcing its claims on Party B's failure to pay the principal and
      interest of the Loan and other expenses payable hereunder when they become
      due,
      such as attorney’s fees, costs of the action and travel expenses, shall be borne
      by Party B. Party A is entitled to deduct such expenses directly from the
      accounts of Party B. In case of deficiency, Party B guarantees to make such
      payment in full as Party A may specify by notice without production of any
      proof
      by Party A.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    

    
      	13.	
              EVENTS
                OF DEFAULT AND HANDLING

            

    

    
      	
            	13.1	
              If
                Party B is found to have been in any of the following situations,
                it shall
                be deemed as an occurrence of events of
                default:

            

    

    
      	
            	13.1.1	
              In
                violation of Clause 7.2.1 hereof, Party B provides false materials
                to or
                withholds true important facts from Party A or does not give cooperation
                in Party A's investigations, reviews and examinations, and it fails
                to
                remedy such default within the reasonable period specified by Party
                A and
                such default is considered to be material;

            

    

    
      	
            	13.1.2	
              In
                violation of Clause 7.2.2 hereof, Party B refuses to accept or evades
                Party A’s supervision over its use of credit facilities, operations and
                financial activities and such default is considered to be
                material;

            

    

    
      	
            	13.1.3	
              In
                violation of Clause 7.2.3 hereof, Party B does not use the Loan for
                the
                purpose prescribed herein and such default is considered to be
                material;

            

    

    
      	
            	13.1.4	
              In
                violation of Clause 7.2.4 hereof, Party B fails to make timely and
                full
                payment of the principal and interest of the Loan as agreed
                herein;

            

    

    
      	
            	13.1.5	
              In
                violation of Clause 7.2.5 hereof, Party B transfers the debts hereunder
                to
                a third party without authorization, impairing the benefits of Party
                A;

            

    

    
      	
            	13.1.6	
              In
                violation of Clause 7.2.6 hereof, Party B fails to promptly notify
                Party A
                of any occurrence of the events prescribed therein or it fails to
                take
                measures for further securing payment of the debts hereunder as required
                by Party A after having knowledge of such occurrence or Party A considers
                that the Loan is insecure;

            

    

    
      	
            	13.1.7	
              Party
                B is in violation of Clauses 9.1, 9.2 and 9.4 hereof which impair
                Party
                A’s benefits or in violation of Clauses 9.3, 9.5, 9.6, and 9.7 hereof,
                Party B fails to remedy its default immediately on demand of Party
                A which
                impair Party A's benefits;

            

    

    
      	
            	13.1.8	
              Party
                B is in other situations that may, in the opinion of Party A, affect
                Party
                A's legal interests.

            

    

    

    
      	
            	13.2	
              If
                the guarantor is found to have been in any of the following situations,
                which Party A considers that it is likely to affect the capability
                of the
                guarantor to perform its obligations under the guarantee and requires
                the
                guarantor to eliminate such adverse effects, or requires Party B
                to
                increase or change the terms of guarantee, but the guarantor and
                Party B
                fail to do so, it shall be deemed as an occurrence of events of
                default:

            

    

    
      	
            	13.2.1	
              Any
                of the events similar to those described in Clause 7.2.6 hereof
                occurs;

            

    

    
      	
            	13.2.2	
              The
                guarantor has concealed the information on its capability to undertake
                the
                obligations of the guarantee or has not obtained authorization from
                the
                authority when executing the Irrevocable Letter of
                Guarantee;

            

    

    
      	
            	13.2.3	
              The
                guarantor fails to keep the registration in force by going through
                the
                annual examination formalities;

            

    

    
      	
            	13.2.4	
              The
                guarantor neglects to manage and enforce its claim for the matured
                liabilities, or disposes of its existing major assets for no
                considerations or in other improper
                manners.

            

    

    

    
      	
            	13.3	
              If
                the mortgagor (or the pledgor) is found to have been in any of the
                following situations, which Party A considers that the creation of
                mortgage (or pledge) is likely to end in failure or the value of
                the
                security (or the collateral) is likely to have a fall, and requires
                the
                mortgagor (or the pledgor) to eliminate such adverse effects, or
                requires
                Party B to increase or change the terms of guarantee, but the mortgagor
                (or the pledgor) and Party B fail to do so, it shall be deemed as
                an
                occurrence of events of default:

            

    

    
      	
            	13.3.1	
              The
                mortgagor (or the pledgor) has no title to or right to dispose of
                the
                security (or the collateral), or such title or right is in
                dispute;

            

    

    
      	
            	13.3.2	
              The
                mortgagor (or the pledgor) conceals the facts that the security (or
                the
                collateral) is jointly owned, leased, distrained or taken
                over;

            

    

    
      	
            	13.3.3	
              Without
                prior written consent from Party A, the mortgagor transfers, leases
                out,
                places a second mortgage on the security or disposes of the security
                in
                any other improper manner;

            

    

    
      	
            	13.3.4	
              The
                mortgagor fails to keep the security in safe custody or to maintain
                and
                repair the security properly, leading to substantial depreciation
                of the
                value of the security; or the mortgagor's actions jeopardize the
                security
                directly, leading to a fall in the value of the security, or the
                mortgagor
                fails to keep the security insured as required by Party A during
                the
                continuance of the mortgage.

            

    

    

    
      	
            	13.4	
              Should
                any of the events of default described in Clauses 13.1, 13.2 and
                13.3
                occurs, Party A is entitled to take the following measures separately
                or
                simultaneously and Party B shall not raise any objection
                thereto:

            

    

    
      	
            	13.4.1	
              To
                stop releasing the agreed and unused
                Loan;

            

    

    
      	
            	13.4.2	
              To
                declare the principal and interest of the Loan granted and relevant
                expenses immediately due and
                payable;

            

    

    
      	
            	13.4.3	
              To
                satisfy all the debts hereunder by deducting the same directly from
                Party
                B’s settlement account or other
                accounts;

            

    

    
      	
            	13.4.4	
              To
                make recourse pursuant to Clause 16
                hereof.

            

    

    

    
      	14.	
              MODIFICATION
                AND TERMINATION

            

    

    This
      Contract may be modified and terminated upon a written agreement between Parties
      A and B through negotiations. This Contract shall remain in force so long as
      no
      agreement has been reached. Neither party shall modify, amend or terminate
      this
      Contract without authorization.

    
       

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

    

    

    
      	15.	
              MISCELLANEOUS

            

    

    
      	
            	15.1	
              During
                the valid period of this Contract, no relaxation, forbearance or
                indulgence by Party A in enforcing any of its interests or rights
                hereunder against any events of default or delay of Party B shall
                prejudice, affect or restrict Party A’s interests and rights as a creditor
                under this Contract and the relevant laws and regulations, nor shall
                it be
                taken as Party A’s approval to or permission of any events of default, or
                operate as waiver of its rights to take actions against existing
                or future
                defaults.

            

    

    

    
      	
            	15.2	
              Should
                this Contract or any provisions hereof become invalid under the law
                for
                whatsoever reasons, Party B shall continue to fulfill all its obligations
                to make payment. In such event, Party A is entitled to terminate
                this
                Contract and demand immediate payment of the principal and interest
                of the
                Loan and other relevant expenses hereunder from Party
                B.

            

    

    

    
      	
            	15.3	
              Each
                notice and demand to be given by Parties A and B hereunder shall
                be made
                in writing. Such notice or demand shall be deemed to have been duly
                served
                on Party B once the same is sent by telex, by telegram or to the
                post
                office.

            

    

    

    
      	
            	15.4	
              The
                certificate of indebtedness of the Loan and any supplemental written
                agreement entered into between Parties A and B through negotiations
                in
                respect of the matters not covered herein or changes shall serve
                as the
                schedule(s) to this Contract and constitute an inseparable part of
                this
                Contract.

            

    

     

    
      	16.	
              APPLICABLE
                LAW AND SETTLEMENT OF
                DISPUTES

            

    

    
      	
            	16.1	
              The
                execution, construction and settlement of disputes of this Contract
                shall
                be governed by the laws of the People’s Republic of China. The interests
                of Parties A and B are protected by the laws of the People’s Republic of
                China.

            

    

    

    
      	
            	16.2	
              Any
                dispute between Parties A and B in connection with the performance
                of this
                Contract may be settled by the two parties through negotiations.
                In case
                no settlement can be reached through negotiations, any of the Parties
                may
                submit the dispute to the People’s Court of the territory where Party A is
                located

            

    

    

    
      	
            	16.3	
              Having
                completed the formalities of notarization by Parties A and B for
                the
                enforcement of this Contract, Party A may directly apply to the People's
                Court of competent jurisdiction for enforcement with a view to claiming
                for the debts due and owed by Party B
                hereunder.

            

    

    

    
      	17.	
              EFFECTIVENESS
                OF THE CONTRACT

            

    

    
      	
            	17.1	
              This
                Contract shall take effect upon affixing the signatures and official
                seals
                by the authorized signatories of the two parties and completion of
                formalities of guarantee as described in Clause 6 hereof. This Contract
                shall remain effective until the date on which the principal and
                interest
                of the Loan and all other relevant expenses hereunder are settled
                in full.
                

            

    

    

    
      	
            	17.2	
              This
                Contract is executed in 6 counterparts with each having the same
                force.
                Party A, Party B and the guarantors each holds one thereof.
                

            

    

    

    

    
      	
              PARTY
                A: (OFFICIAL SEAL)

            	
              PARTY
                B: (OFFICIAL SEAL)

            
	
              Shenzhen
                Honggang Branch of China Merchants Bank

            	
              Winner
                Industries (Shenzhen) Co., Ltd.

            
	
              AUTHORIZED
                SIGNATORY: Lei Li

            	
              AUTHORIZED
                SIGNATORY: Jianquan Li

            
	
              DATE:
                July 27, 2005

            	
              DATE:
                July 27, 2005

            
	 	 
	 	 
	
              -5-

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