This SENIOR SECURED CONVERTIBLE LOAN AGREEMENT (this Agreement) is entered as of October 14, 2005 ( the“Effective Date”) by and between:

W I T N E S S E T H:

WHEREAS, Lender and Borrower have agreed that Lender shall make to the Borrower an interest-free loan in the aggregate amount of RMB52,000, upon occurrence of certain conditions, within six months of the Effective Date, convertible into certain percentage of shares of Borrower subject to the terms and conditions of this Agreement.

WHEREAS all the shareholders of the Borrower have agreed to grant to the Lender a security interest over the Collateral (as defined below) as security for the repayment of the Loan (as defined below).

NOW THEREFORE in consideration of the mutual covenants and agreements herein contained and intending to be legally bound hereby, each of the Parties hereto hereby agree as follows:

SECTION 1. Amount and Terms of Loan.

1.01 Commitment. Subject to and upon the terms and conditions herein set forth, the Lender agrees to issue a loan (each, a "Loan") to the Borrower and the term of the Loan is SIX ( 6 ) months from the Effective date of this Agreement (the “Term”). Should the Conversion fail to happen due to non fulfillment of certain condition

precedents, the Term of the Loan may be extended upon written agreement between the Parties .

该高级担保可转换贷款协议（这份协议）由双方于2005年11月14日（生效日）达成：

兹证明：

鉴于贷款人和借款人已经就52，000元人民币总额的免息贷款达成一致同意，但这是基于一定条件发生的，即在六个月的有效期内，可根据本协议的条款和条件转换为借款人一定比例的股份。

而所有借款人股东已同意给予贷款方抵押担保物权（定义如下）作为贷款的还款保障（定义如下）。

因此，现在双方的合约和协议所包含的条款，以兹予合法考虑，双方同意如下：第1节．贷款金额和条款

1.01承诺。根据本协议所载条款和条件出发，贷款人同意发放贷款（每个，“贷款”）给借款人，贷款的期限是从本协议生效之日起六（6）个月（“期限”）。如果由于某些先例条件不满足而转换失败，贷款期限可以按双方签订书面协议延长。