LOAN CONTRACT Shenzhen development bank April 2010 LOAN CONTRACT Contract No. Shenfa Yinlian Daizhi 20101109002 Within agreed amount Agreed amount loan contract name: comprehensive agreed credit loan contract Agreed amount loan contract Shenfa Yinlian Daizi No.: 20101109002

1.10

Borrower’s warrantor breaches warranty contract(including but not limiting contract of guarantee, mortgage contract, pledge contract) or incurring breaching affair under warranty contract, or invalid warranty, ineffective warranty or canceled warranty happens;

1.11

Borrower does not take enough care to manage or claim due debt rights, or borrower transfer wealth in unrecoverable, unreasonable or any other inappropriate way or any deed of escaping from debt right happens;

1.12

Borrower deals with any third party(including but not limiting lender’s related party) to take use of untrue contract or arrangement, including but not limiting using not existing trading receivables to discount or pledge and to further acquire lender’s or other banks’ capital or granting credit;

1.13

Borrower escapes from debt right of bank with intention, in the way of related party trading or other ways;

1.14

Borrower encounters significant operation problem, huge worsening financial situation, vital financial losses, asset losses(including but not limiting losses causing by warranty for other parties) or financial crisis in other forms;

1.15

Borrower is punished or in sanctions, due to illegal operation, or is being investigated by related department and is possible to be punished or in sanctions;

1.16

Borrower is involving segregation, consolidation, merger and acquisition, disposal of significant assets, reducing capital, liquidation, restructuring, repealing, being announced to go bankruptcy, being disbanded or others;

1.17

Borrower changes its majority stockholder or management controlling person, and lender deems this issue can possibly affect debt rights; or important issue happens to majority stockholder, management controlling person, legal representative person, high management level; this issue include but not limits punishment or sanction caused by illegal operation or persons mentioned above is possible to be punished, in sanctions, to incur lawsuit or arbitration, to worsen financial situation, to announce to be bankruptcy or disbanded or others;

1.18

Industry of borrower changes, which may cause losses to borrower, lender deems this change has already hampered debt rights or it is possible to be negative to debt rights;

1.19

Borrower does not do balancing or saving as contracted;

1.20

Any situation, which is relevant to borrower, can make or may make debt rights unsecure;

2.1

Lender can state loan is due, and claim part or whole amount of principle, interests and related fees, including but not limiting, related investigation fee of capital and credit, inspection fee, notary fee and so on, legal expenses, litigation fee, travel expenses, post fee, service fee, enforceable fee and all other relevant fees which are used to help lender realize its debt rights;

2.2

Ceasing or terminating residual loan;

2.3

Having rights to deduct principle, interests and fees from borrower’s and guarantor’s accounts;

2.4

Requiring borrower offer new warranty contract which can meet lender’s requirements;

2.5

Taking use of warranty rights and requiring guarantor to fulfill its responsibilities or securing lender’s debt rights through disposal of collateral or pledge;

2.6

Loan is due or due before schedule, and borrower does not repay principle and interests as contracted, lender has right to charge 50% additional punishment interest on principle, according to the dates after due and lender also uses compound interest calculation to obtain the punishment interest: if days after loan due day is no more than 90 days, the payment sequence of loan is :(1) interests (including punishment interest, compound interest); (2) principle. If days after loan due day is more than 90days, the payment sequence of loan is :(1) principle;(2) interests (including punishment interest, compound interest);

2.7

Borrower who misappropriates loan, lender has right to charge borrower additional 100% punishment interest according to the misappropriation date, days and contracted loan’s interest. If borrower can not pay interest timely, lender will use compound interest to calculate punishment interest;

2.8

According to laws, lender can use subrogation to claim loan from borrower’s debtor, borrower should, according to lender’s requirements, supply all necessary coordination and help; and all fees incurred from subrogation are afforded by borrower;

2.9

Appealing to law court to cancel borrower’s due debt rights or any deed of transferring  ownership without payment or unreasonable low transferring price; borrower should, according to lender’s requirements, coordinate and help lender, and all related fees should be paid by borrower;

2.10

Lender, according to laws and rules, has right to claim other recoverable measures;