Exhibit 10.14


 


ABC(2016)1003-1


 


 


 


Agricultural Bank of China Co., Ltd


Working Capital Loan Contract


 


 


No.:62010120200000291


 




     


     


    

 


Dear customers: to protect
your rights and interests, please carefully read any and all terms of this contract (especially those in block letter) prior to
execution of this contract) and pay attention to your rights and obligations in the contract. If you have any doubts or questions
regarding this contract, please consult the lending bank. If you need to make business inquiries and complaints, please dial the
customer service hotline of Agricultural Bank of China at 95599.


 


Table of Contents


 


	Section 1 Definitions	- 1 -
	Section 2 Borrower’s undertakings	- 2 -
	Section 3 Basic terms	- 3 -
	3.1 Form of loan	- 3 -
	3.2 Purpose of loan	- 3 -
	3.3 Interest rate, penalty interest and compound interest	- 3 -
	3.4 Drawdown and loan repayment	- 6 -
	3.5 Financial indicator supervision	- 9 -
	3.6 Account supervision	- 9 -
	3.7 Repayment	- 10 -
	3.8 Certificate of indebtedness	- 11 -
	3.9 Guarantee	- 11 -
	3.10 Rights and obligations	- 12 -
	Section 4 Additional terms	- 14 -
	Section 5 Legal liabilities	- 14 -
	Section 6 Miscellaneous	- 15 -


 






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Borrower (full name): Gansu Qilianshan
Pharmaceutical Co. Ltd.  


Place of business (address): Jiuquan
High-tech Industrial Park, Jiuquan City, Gansu Province, China.  


Tel: 18089374001 Fax:_________ 


Legal representative/CEO: _Bingyan Lu______


 


Lender (full name): Agricultural Bank
of China Co., Ltd Jiuquan Branch


Place of business (address): No. 2 Panxuan
East Road, Suzhou District, Jiuquan City, Gansu Province, China.


Tel: 0937-2617565 Fax:__________


Legal representative/CEO: _Binhua Shi_____


 


According to the applicable
Chinese laws and regulations, both parties hereby enter into this contract through consultations.


 


Section 1 Definitions


 


Except as otherwise
agreed upon, the following terms shall have the following meanings ascribed thereto when used herein;


 


1.1 Loan term: consisting
of the term of the total loan and the terms of individual loans. The term of total loan shall mean the period from the date of
issue of the first loan to the date when the borrower repays all of the loan principal and interest according to the contract;
the term of individual loan shall mean the period from the date of issue of individual loan in installment drawdown to the agreed
date when the borrower repays the principal of and interest on such loan.


 


1.2 Loan limit: shall
mean the limit of the loan principal provided by the lender to the borrower within the valid period of the limit set forth herein.
Within the valid period of limit and the loan limit, the borrower may cyclically use the loan, provided that the sum of the loan
amount requested by the borrower and the balance of the loan principal outstanding hereunder may not exceed the loan limit. When
the valid period of limit expires, the unused loan limit shall automatically expire.


 


1.3 Self-service electronic
channel: shall mean such electronic channels as online banking, tele-banking and cash management channel made available by the
lender for drawdown under the self-service revolving working capital loan mode.


 


1.4 Period: the period
shall be calculated by day, month and year, and if the last day of a period is a public holiday, the first day immediately following
the public holiday shall be the expiry date of the period.


 


1.5 LIBOR/HIBOR: shall
mean the London/Hong Kong interbank market rate published by Reuters for the period corresponding to two working days prior to
the drawdown date.


 



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1.6 Laws and regulations:
including the laws and administrative regulations, local regulations, rules, judicial interpretations and other provisions having
the effect of law of the People’s Republic of China.


 


1.7 LPR: Loan Prime
Rate, shall mean the loan prime rate published by the National Interbank Funding Center.


 


Section 2 Borrower’s
undertakings


 


The borrower hereby
undertakes as follows:


 


2.1 Legal and regulatory
compliance of loan application: the borrower is a corporate or public institution legal person incorporated under laws and approved
and registered with the competent authorities or another organization that can act as borrower according to the national regulations;
the borrower is in good standing and without significant bad records; the purpose of loan and source of funding for repayment are
clear and lawful; there is no other violation of laws and regulations.


 


2.2 Contract execution
flawless: The execution of this contract or performance of its obligations hereunder by the borrower has undergone necessary formalities
according to the laws and regulations or articles of association; the person signing or sealing this contract is the legal representative/chief
executive officer or authorized agent of the borrower; the borrower actively handles or assists the lender in handling the contract
approval, registration or filing formalities; there is no other circumstance that might cause the loan contract to be inadequately
effective or valid due to the fault of the borrower.


 


2.3 Provided guarantee
lawful and valid; the borrower ensures the guarantor has performed the necessary formalities according to the laws and regulations
or articles of association in order to perform the guarantee contract or perform its obligations under the guarantee contract;
the guarantor has the right to create security with such collateral; the person signing the guarantee contract is the authorized
signatory; the borrower urges the guarantor to actively handle or assist the lender in handling the guarantee contract approval,
registration or filing formalities and the guarantee registration formalities; there is no other defect in effect or any circumstance
that might result in material adverse change under the guarantee.


 


2.4 Good-faith performance
of contractual rights and obligations: the borrower shall use the loan according to law and the term, purpose and manner set forth
in the contract and shall not use the loan for any activities in violation of laws and regulations; the borrower shall actively
work with the national competent authorities and the lender on loan disbursement management, post-loan management and related checks;
the borrower shall repay the loan in full and in time pursuant to the contract and shall not evade its debts in any manner; any
significant matters of the borrower including but not limited to external investments, substantial increase in debt financing,
consolidation, separation or equity transfer shall be subject to the prior consent of the lender; the lender has the right to recover
the loan in advance based on the return of funds to the borrower; the borrower shall promptly notify the lender of any material
adverse event affecting its solvency; there is no other violation of contractual obligations.


 



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2.5 The borrower did
not hold back from the lender any events already incurred or ongoing that might adversely affect its financial condition and solvency,
including but not limited to legal actions, arbitrations, other administrative proceedings or claims.


 


2.6 The documents and
data provided by the borrower with respect to the borrower, the guarantor and its shareholders are true, complete, accurate, lawful
and valid.


 


Section 3 Basic terms


 


3.1 Form of loan


 


The lender will issue
the loan to the borrower in the following manner (1).


 


(1) General working
capital loan


 


(1) Currency and amount
of loan (in words): RMB Ten Million Yuan.


 


(2) Term of total loan
(in words): one year.


 


(3) Amounts and terms
of individual loans


 


	Amount of loan	 	Date issued	 	Loan term
	RMB Ten Million Yuan	 	March 30, 2020	 	One Year


 


(Additional table may
be added if necessary, which shall constitute integral part of this contract)


 


(2) Revolving working
capital loan


 


(1) Currency and amount
of loan limit (in words):______.


 


(2) Valid period of
limit (in words):___to ______.


 


(2) Self-service revolving
working capital loan


 


(1) Currency and amount
of loan limit (in words):______.


 


(2) Valid period of
limit (in words):___to ______.


 


3.2 Purpose of loan


 


The loan hereunder shall
be used for purchasing raw materials. 


 


3.3 Interest rate, penalty interest and compound
interest


 


3.3.1 Loan interest
rate


 



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3.3.1.1 RMB loan, in
respect of the loan interest shall be determined in the following manner (1):


 


(1) Fixed interest rate
(base rate pricing): __% ____(above/below) the base rate published by the People’s Bank of China for the same period and
class that corresponds to _____(drawdown date of each loan/contract execution date)_____(term of individual loan/term of total
loan), until the loan maturity date;


 


(2) Floating interest
rate (base rate pricing): __% ____(above/below) the base rate published by the People’s Bank of China for the same period
and class that corresponds to _____(drawdown date of each loan/contract execution date)_____(term of individual loan/term of total
loan). The adjustment to the floating interest rate shall be made at an interval of ___(in words) months, and the new loan interest
shall be determined according to the base rate of the adjusted corresponding period and class as of the corresponding date of loan
in the first month of the next cycle following the adjustment to the RMB loan base rate by the People’s Bank of China, without
further notice from the lender to the borrower. In absence of the corresponding day of loan, the last day of such month shall be
deemed the corresponding day of loan.


 


(3) Fixed interest rate
(base rate pricing): shall be determined at one-year LPR ____ as of the working day immediately preceding the contract execution
date (drawdown date of each loan/contract execution date) (plus/minus)_____(in words) bp(1bp=0.01%), until the loan maturity date.


 


(4) Floating interest
rate (base rate pricing): shall be determined at LPR agreed upon for each cycle plus or minus a certain spread, subject to cycle-by-cycle
floatation. Under this contract, the interest rate adjustment shall be made at an interval of _Three_(in words) month(s),
and the spread shall be _plus__(plus/minus)__three hundred and four point five__(in words)bp (1bp=0.01%) and shall
remain unchanged during the loan term. Among them, the LPR applied in the first cycle shall be one-year LPR as of the working day
immediately preceding the loan drawdown date, and the LPR applied in each cycle thereafter shall be re-determined at the one-year
LPR as of the working day immediately preceding the corresponding date in the first month of such cycle with respect to the loan
drawdown date. In absence of the day corresponding to the loan drawdown date, the last day of such month shall be deemed the corresponding
day.


 


(5) Others:_______.


 


3.3.1.2 Foreign exchange
loan, in respect of which the interest rate shall be determined in the following manner ___:


 


(1) the loan interest
rate floating at ___(in words) months that is constituted by ___(in words) month___ (LIBOR/HIBOR) +_______% spread;


 


(2) Annual interest
rate of __% applied, until the loan maturity date;


 


(3) Others:______.


 



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3.3.2 Interest accrual
and settlement


 


3.3.2.1 The interest
accrued on the loan shall be settled on a monthly (monthly/quarterly/yearly) basis on the 20th day of each month
(month/quarter-end month/year-end month). The borrower shall pay the interest on each interest settlement day. if the last
repayment date of the loan principal is not the interest settlement date, the unpaid interest shall be fully paid along with full
repayment of loan principal.


 


3.3.2.2 In case of loan
subject o fixed interest rate, the interest shall be calculated at the agreed interest rate. In case of loan subject to floating
interest rate, the interest shall be calculated at the interest rate determined in each floating period; Where the interest rate
floats several times within a single interest settlement period, the interest accrued in each floating period shall be first calculated
before adding up the interest in each floating period. Where another interest rate applies, the interest shall be calculated according
to the agreement of both parties.


 


3.3.2.3 Where the loan
maturity date happens on statutory holiday or public holiday, the normal repayment date shall be postponed accordingly to the first
working day after the statutory holiday or public holiday, provided that the interest shall accrue according to the agreed interest
accrual process during the extended period.


 


3.3.3 Penalty interest


 


3.3.3.1 Where the borrower
fails to repay the loan principal within the period set forth herein, the lender will charge the penalty interest period by period
according to the overdue period on the overdue loan from the due date on the basis of the applicable loan interest rate set forth
herein: penalty interest will be charged at the applicable loan interest rate plus _fifty_(in words) percent within 30 days
(inclusive) of the due date; penalty interest will be charged at the applicable loan interest rate plus _fifty_(in words)
percent beyond 30 days and less than 60 days (inclusive) of the due date; penalty interest will be charged at the applicable loan
interest rate plus _fifty_(in words) percents beyond 60 days of the due date; During the overdue period, with respect to
RMB loan on which interest accrues at the fixed interest rate (base rate pricing), the penalty interest rate shall be adjusted
accordingly as of the date of adjustment to the base rate in case of any upward adjustment to the RMB loan base rate of the same
period by the People’s Bank of China; with respect to RMB loan on which interest accrues at the fixed interest rate (prime
rate pricing), the penalty interest rate shall be adjusted accordingly as of the working day immediately following the adjustment
to the one-year LPR in case of any upward adjustment to the one-year LPR.


 



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3.3.3.2 Where the borrower
fails to use the loan for the purpose set forth herein, the lender will charge the penalty interest on the misappropriated loan
from the misappropriation date at the agreed loan interest rate plus one hundred (in words) percent, until repayment of
the loan principal and interest. During the misappropriation period, with respect to RMB loan on which interest accrues at the
fixed interest rate (base rate pricing), the penalty interest rate shall be adjusted accordingly as of the date of adjustment to
the base rate in case of any upward adjustment to the RMB loan base rate of the same period by the People’s Bank of China;
with respect to RMB loan on which interest accrues at the fixed interest rate (prime rate pricing), the penalty interest rate shall
be adjusted accordingly as of the working day immediately following the adjustment to the one-year LPR in case of any upward adjustment
to the one-year LPR.


 


3.3.3.3 Where the borrower
fails to both repay the loan principal on due date and use the loan for the purpose set forth herein with respect to one and the
same loan, the penalty interest rate shall be whichever is higher.


 


3.3.4 Compound interest


 


Where the borrower fails
to pay the interest on due date, the lender will charge compound interest on a monthly (quarterly/monthly) basis as of the
date of failure to pay on the due date. If the borrower fails to pay the interest on due date prior to the loan maturity date,
the lender will charge compound interest at the loan interest rate set forth herein; upon the loan maturity date, the lender will
charge compound interest at the penalty interest rate for delinquency set forth herein.


 


3.4 Drawdown and loan repayment


 


3.4.1 Conditions for
drawdown


 


3.4.1.1 The borrower
shall meet all of the following conditions when applying for drawdown:


 


(1) The borrower is
qualified as borrower and its corresponding decision-making body or authorizing body has made a resolution consenting to loan according
to law and the approvals of competent authorities have been obtained if necessary;


 


(2) The borrower has
completed the related guarantee formalities as required by the lender and the guarantee is lawful and valid;


 


(3) The use of loan
by the borrower complies with the laws and regulations and the provisions of the loan contract and the commercial contract applicable
to the loan use;


 


(4) The related representations
and warranties made by the borrower at the time of execution of the contract remain true and valid at the time of each drawdown,
no material or substantial adverse change has occurred and no other material adverse circumstances that might affect the performance
of this contract have occurred.


 


(5) Other covenants:______.


 



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3.4.1.2 If the borrower
fails to satisfy any of the conditions set forth in Subsection 3.4.1.1 above within 3 (3/6/9) months of execution of this
contract, the lender has the right to terminate this contract at its sole discretion. Where the lender so terminates this contract,
the borrower shall have 7 days to raise any objection, commencing from the date when the lender notifies the borrower in writing,
orally or in any other form.


 


3.4.2 Drawdown process


 


3.4.2.1 General working
capital loan


 


3.4.2.1.1 The borrower
shall withdraw the loan according to its actual need for loan utilization, with the specific drawdown schedule as follows:


 


_March 20, 2020 to
March 30, 2020_. Among them, the first loan must be withdrawn prior to __March 30, 2020_____ and the last loan must
be withdrawn prior to __--___. Where the borrower fails to handle the drawdown formalities according to the drawdown schedule
set forth herein, the lender has the right to cancel the non-withdrawn loan in full or in part and re-determine whether or not
to issue the loan and the conditions for drawdown.


 


3.4.2.1.2 The borrower
shall withdraw the loan on such date and in such an amount as set forth herein. If the borrower needs to adjust its drawdown schedule,
it shall file a request to the lender three days in advance for approval.


 


3.4.2.2 Revolving working
capital loan


 


3.4.2.2.1 The borrower
may apply to the lender for loan drawdown on a loan-by-loan basis as necessary to the extent of the loan limit and handle the drawdown
formalities subject to the review and approval of the lender, provided that the term of individual loan may not exceed ___years
and the expiry date thereof may not exceed six months of the expiry date of the valid period of limit.


 


3.4.2.2.2 Where the
borrower applies for loan drawdown, it shall file a written drawdown request to the lender and provide it with the commercial contract,
invoice and other credentials corresponding to the loan utilization.


 


3.4.2.3 Self-service
revolving working capital loan


 


The borrower may withdraw
the loan tranche by tranche as necessary via the clerk counter or self-service electronic channel provided by the lender to the
extent of loan limit, provided that the amount of individual loan may not be less than RMB fifty thousand Yuan and shall be the
multiples of RMB ten thousand Yuan and the loan term may not be more than one year and the expiry date thereof may not exceed the
expiry date of the valid period of limit.


 


3.4.3 Loan disbursement


 


3.4.3.1 Authorized disbursement


 


3.4.3.1.1 In any of
the following cases, the borrower will engage the lender to disburse the loan proceeds to the counterparty of the borrower that
meets the provisions of this contract and the purpose set forth in the commercial contract corresponding to the loan utilization:


 


(1) The payee is well-defined
and the amount of each drawdown exceeds RMB one million Yuan (including foreign currency equivalent);


 



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(2) Other circumstances
agreed upon by both parties:______.


 


3.4.3.1.2 In case of
authorized disbursement, the borrower shall submit a drawdown request and the Notice of Authorized Disbursement to the lender three
days in advance and provide the commercial contract, invoice and other credentials corresponding to the loan utilization as required
by the lender. Upon its review and confirmation, the lender will directly pay the loan proceeds to the counterparty of the borrower
via the borrower’s account. Where the drawdown request of the borrower does not meet the drawdown conditions set forth herein
or the payment authorization request is inconsistent with the provisions hereof or the transaction documents are incomplete or
untrue with respect thereof, the lender has the right not to issue or disburse the corresponding loan; the resulting default of
the borrower to its counterparty or any other losses so incurred shall not be the responsibility of the lender. Any delay or failure
in payment of funds due to inaccurate or incomplete payment information provided by the borrower shall not be responsibility of
the lender.


 


3.4.3.1.3 Where the
borrower applies for delayed payment or withdraws its payment authorization, it shall file the request in writing to the lender
prior to any payment by the lender. Upon its review and confirmation, the lender will suspend the authorized payment and may recover
the corresponding loan; during this period, the interest shall accrue on the corresponding loan pursuant to this contract. Upon
suspension of authorized payment, if the borrower applies for restoration of payment authorization, the provisions of Section 3.4.3.1.2
shall apply.


 


3.4.3.1.4 The payment
authorization shall be unconditional, and if the borrower imposes any conditions in the Notice of Authorized Payment, such conditions
shall not create any obligation on the part of the lender. Except as otherwise agreed upon by both parties in writing, the lender
will not be obligated to notify the payee when it deals with the matters of authorized payment, suspended payment, withdrawn payment
or restored payment.


 


3.4.3.1.5 In case of
authorized disbursement, the lender has the right to restrict the act of payment and withdrawal function of such non-counter channels
with respect to the related accounts of the borrower including but not limited to online banking, tele-banking and cash management
channel.


 


3.4.3.2 Autonomous disbursement


 


Except as otherwise
set forth in Subsection 3.4.3.1.1, upon the issue of the loan into the borrower’s account, the borrower may make payments
of its own pursuant to this contract. The borrower shall notify the lender of the payment of loan proceeds as required by the lender
and provide the loan utilization records and the commercial contract, invoice and other credentials corresponding to loan utilization
in a timely manner as required by the lender. The lender may verify whether the loan disbursement complies with the agreed purpose
through account analysis, voucher examination and onsite survey, among others.


 



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3.4.3.3 If the credit
standing of the borrower decreases, the loan utilization is found abnormal, the borrower fails to pay the loan proceeds pursuant
to this contract or the borrower circumvents the authorized disbursement by the lender by breaking up the whole into parts or providing
falsified data, the lender may consult with the borrower about additional conditions for loan issue and disbursement or cease to
issue and disburse the loan.


 


3.4.4 Drawdown return


 


3.4.4.1 If the loan
already withdrawn by the borrower exceeds the amount actually paid by the borrower for the related transactions or the refund of
the transaction amount occurs due to the commercial contract upon which the loan hereunder is based corresponding to the loan utilization
cannot be actually performed in full or is rescinded or becomes invalid through no fault of the lender, the borrower shall return
the corresponding loan proceeds to the lender.


 


3.4.4.2 If the borrower
fails to disburse the loan proceeds in such manner as set forth herein, the lender has the right to recover the loan proceeds paid
otherwise pursuant to the contract.


 


3.4.4.3 Prior to the
return of the loan proceeds according to Subsection 3.4.4.1 and Subsection 3.4.4.2, the interest shall accrue and be settled according
to Subsection 3.3.1 and Subsection 3.3.2.


 


3.5 Financial indicator
supervision


 


In the following case
(1) (2) and (3), the borrower shall take the debt security measures acceptable to the lender as required by the lender,
otherwise the lender may exercise the remedies set forth in Subsection 5.3:


 


(1) The asset-liability
ratio of the borrower exceeds 70%;


 


(2) The contingent liability
ratio of the borrower exceeds_20%___;


 


(3) The operating cash
flow of the borrower remains negative for _two__ consecutive years;


 


(4) Others:______.


 


3.6 Account supervision


 


3.6.1 The borrower hereby
designates the following account as its collection account:


 


Account name: Gansu
Qilianshan Pharmaceutical Co., Ltd. 


 


Account No: 27200101040012662



 



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3.6.2 The lender has
the right to take the following supervisory measures against the aforesaid collection account:


 


(1) Require the borrower
to provide the details about the receipt and expenditure of funds into and from the collection account.


 


(2) Others;_______.


 


3.7 Repayment


 


3.7.1 Repayment method


 


3.7.1.1 The borrower
shall deposit the loan principal and interest then due and payable into the repayment account designated by the lender three
days prior to the repayment date and irrevocably authorize the lender to make collections from such account.


 


3.7.1.2. If the borrower
fails to repay its debts hereunder when due (including being declared due and payable) pursuant to this contract, the lender has
the right to deduct the corresponding amount from any and all accounts of the borrower with the lender or any other branch of Agricultural
Bank of China for repayment, until the borrower fully repays any and all of its debts hereunder.


 


3.7.1.3 If the lender
exercises its right of offset according to law or this contract, the borrower shall have seven days to raise any objections, commencing
from the date when the lender notifies the borrower in writing, orally or in any other form.


 


3.7.2 Repayment sequence


 


3.7.2.1 The borrower
shall repay its debts hereunder in the following sequence, except as otherwise agreed upon by both parties:


 


(1) If there are several
debts due between the borrower and the lender and the repayment by the borrower is insufficient to repay all debts due, the debts
repaid by the borrower’s payments and the sequence of offset shall be determined by the lender;


 


(2) If the lender exercises
the right of offset against the borrower according to law or the provisions hereof, the debts to be offset and the sequence of
offset shall be determined by the lender; when the lender exercises the right of subrogation according to law, the debts repaid
by the sub-obligor’s payments and the sequence of offset shall be determined by the lender.


 


3.7.2.2 If the repayment
by the borrower is insufficient to repay the loan due and payable hereunder, the lender may choose to apply the repayment towards
repayment of the principal, interest, penalty interest, compound interest or the costs and expenses of debt realization.


 



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3.7.3 Prepayment


 


3.7.3.1 The borrower
shall file a written request for prepayment to the lender three days in advance and may make prepayment with the mutual
consent of both parties. The repayment sequence of prepayment shall be as specified in Subsection 3.7.2.


 


3.7.3.2 When the borrower
makes prepayment, the interest shall accrue on the prepaid portion in the following manner (1) and shall be paid in full
along with full repayment of loan principal:


 


(1) The interest shall
accrue for the actual period of loan and at the agreed interest rate;


 


(2) The interest shall
accrue for the actual period of loan and at the interest rate set forth herein plus ___%;


 


(3) Others:_______.


 


3.7.3.3 In case of prepayment
by the borrower, the principal repaid may not be less than RMB one hundred thousand Yuan and shall be multiples of RMB
one hundred thousand Yuan.


 


3.7.3.4 If the borrower
prepays a portion of loan, the interest shall still accrue on the loan not yet repaid at the loan interest rate set forth herein.


 


3.7.4 Extension


 


The borrower of general
working capital loan, if unable to repay the loan on the repayment date set forth herein, may apply to the lender for extension.
The borrower shall file an extension request to the lender 15 days prior to the maturity date of such loan and both parties will
execute the extension agreement subject to the consent of the lender.


 


3.8 Certificate of indebtedness


 


3.8.1 The certificate
of indebtedness shall constitute integral part of this contract. If this contract does not so specify or if the loan amount, drawdown
amount, repayment amount, date of loan issue and maturity date, loan term, loan interest rate or purpose of loan specified herein
is inconsistent with that indicated on the certificate of indebtedness, the particulars on the certificate of indebtedness shall
prevail.


 


3.8.2 In case of self-service
revolving working capital loan, if the borrowers withdraws the loan via self-service electronic channel, the loan amount, drawdown
amount, repayment amount, date of loan issue and maturity date, loan term, loan interest rate and purpose of loan shall be as indicated
on the electronic transaction records generated from the self-service electronic channel.


 


3.9 Guarantee


 


3.9.1 The form of guarantee
for the loan hereunder is: single-person guarantee, mortgage of industrial building 


 



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3.9.2 The guarantee
contract shall be executed by and among the lender, the borrower and the guarantor separately. In case of maximum-amount guarantee,
the guarantee contract numbers are 62100620170001703. 


 


3.10 Rights and obligations


 


3.10.1 Borrower’s
rights and obligations


 


(1) To withdraw the
loan pursuant to this contract;


 


(2) To repay the loan
principal and interest in time and in full;


 


(3) To use the loan
for such purpose and in such manner as specified by laws and regulations or set forth herein and not to use the loan for investment
in fixed assets or equities or for any field or purpose of production or operations prohibited by the national laws and regulations;


 


(4) To accept and actively
work with the lender and its principal on supervision and examination of financial activities, loan utilization and other related
matters; to submit the related data and information about loan utilization and finance and such other matters as required by the
lender to the lender in a timely manner as required by the lender;


 


(5) The borrower shall
notify the lender in writing of its intention to conduct any of the following actions in advance for the consent of the lender,
and the lender may participate in such activities:


 


(1) Contracting, leasing,
shareholding reform, joint operation, consolidation, merger, merger & acquisition, separation, reduction in registered capital,
joint venture, transfer of major assets, significant external investment, issue of bonds, high-value financing, significant related-party
transactions, petition for winding-up, petition for dissolution and petition for bankruptcy, etc;


 


(2) Provision of large-amount
warranty guarantee for others’ debts or mortgaging or pledging its major assets to any third party, which might adversely
affect the borrower’s solvency;


 


(3) Any other material
adverse events sufficient for the borrower to cause any material change to the credit-debt relation hereunder or affect the realization
of the financial claims of the lender;


 


(6) When the borrower
incurs any of the following events, the borrower shall notify the lender in writing within 5 days of occurrence thereof:


 


(1) The borrower or
its legal representative, chief executive officer or actual controller engages in any illegal activities;


 


(2) The borrower is
out of business, shut down, deregistered, or has its business license revoked or rescinded;


 



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(3) The borrower suffers
deteriorating financial condition or serious operational difficulties or any material adverse dispute;


 


(4) Any other event
of the borrower that might adversely affect the realization of financial claims of the lender hereunder.


 


(7) When the borrower
incurs any of the following events, the borrower shall notify the lender in writing within 7 days of occurrence thereof:


 


(1) The affiliation
of the borrower changes, its senior management changes substantially or its organizational structure changes substantially;


 


(2) The borrower’s
name, place of business, scope of business or other business registration particulars or licenses change substantially;


 


(3) The borrower’s
registered capital is increased or its articles of association are substantially modified;


 


(4) Any other event
of the borrower that might adversely affect the performance of its debts hereunder.


 


(8) The borrower and
its investors may not evade its debts to the lender by means of capital withdrawal, transfer of assets or unauthorized share transfer
or otherwise and may not engage in any other activities detrimental to the interests of the lender;


 


(9) Other rights and
obligations specified in laws and regulations or agreed upon by both parties.


 


3.10.2 Lender’s
rights and obligations


 


(1) To issue the loan
to the borrower in time and in full, except for delay due to the fault of the borrower or otherwise through no fault of the lender;


 


(2) To supervise and
examine the production operations, financial condition, material inventory and loan utilization and other aspects of the borrower
either onsite or offsite and to require the borrower to provide related documents, data and information;


 


(3) If the borrower
incurs any circumstance that might adversely affect the loan security or debt service or the guarantor is out of business, shut
down, deregistered, has its business license revoked, goes bankrupt or is rescinded or suffers substantial operating losses or
any other circumstances that might cause it to lose the corresponding guarantee capacity in part or in full, or the collaterals
or pledged properties used as security for loan are diminished, accidentally destroyed or lost or otherwise jeopardize the realization
of guarantee, the lender may require the borrower to make corrections, implement safeguards for financial claims or provide another
valid guarantee within a specified period or reduce or revoke the loan limit granted to the borrower, cease to issue the loan or
declare the loan hereunder and other contracts due and repayable immediately or recover the loan in advance, etc.;


 



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(4) Other rights and
obligations specified in laws and regulations or agreed upon by both parties.


 


3.10.3 Other obligations


 


3.10.3.1 Both parties
shall keep strictly confidential any and all business secrets of the other party and other information that are acquired in the
course of execution and performance of this contract; except otherwise specified in laws and regulations, neither party may disclose
or divulge any of the aforesaid information to any third party without the prior consent of the other party.


 


3.10.3.2 Upon termination
of the rights and obligations hereunder, both parties shall perform necessary notification, assistance and other obligations in
good faith.


 


Section 4 Additional
terms


 


Both parties further
agree as follows: --. 


 


Section 5 Legal liabilities


 


5.1 Any of the following
acts of the borrower shall constitute default:


 


(1) Violation of any
obligation hereunder;


 


(2) Failure to perform
any of its undertakings made in Section 2 hereof;


 


(3) Express indication
or indication by action of its unwillingness to repay its debts already due or becoming due hereunder;


 


(4) Failure to perform
any of its obligations under any other contract between the borrower and the lender in full or in part, where the lender declares
such failure constitutes default of the borrower;


 


(5) The borrower’s
other failures to perform this contract in full or in part.


 


5.2 In any of the
following cases, the lender may terminate this contract and any other contract between the two parties: 


 


(1) Any default of the
borrower or the guarantor;


 


(2) The repayment capacity
of the borrower or the guarantor might materially and adversely change;


 


(3) The collaterals
or pledged properties may suffer substantial damage or value decrease;


 


(4) Any adjustment to
the national policy that might materially and adversely affect the loan security;


 



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(5) The borrower commits
any material default to any other creditor;


 


(6) Any other circumstance
in which this contract may be terminated according to law or agreement of both parties.


 


If the lender terminates
this contract, the borrower shall have 7 days to raise any objection, commencing from the date when the lender notifies the borrower
in writing, orally or in any other form. 


 


5.3 In case of any circumstance
set forth in Subsection 5.1 or 5.2, the lender may exercise the following remedies:


 


(1) Require the borrower
and the guarantor to make corrections to its default or other circumstances detrimental to the loan security, implement safeguards
for financial claims or provide another valid guarantee within a specified period;


 


(2) If the borrower
fails to use or repay the loan pursuant to this contract or to pay interest when due hereunder, to charge the penalty interest
and compound interest pursuant to this contract, until full repayment of the loan principal and interest;


 


(3) Reduce or revoke
the loan limit granted to the borrower, cease to issue the loan or declare the loan hereunder and other contracts due and repayable
immediately or recover the loan in advance;


 


(4) Exercise the right
of offset or other statutory or agreed rights against the borrower;


 


(5) Require the borrower
to assume damages and other legal liabilities;


 


(6) Take corresponding
asset preservation measures and other legal measures;


 


(7) Publicly disclose
the defaults of the borrower;


 


(8) Other remedies:__--____.


 


5.4 Where the lender
realizes its financial claims by means of legal actions or arbitration or otherwise due to the default of the borrower, the attorney’s
fee, travel expenses, enforcement costs, appraisal costs and any and all other costs and expenses incurred by the lender to realize
its financial claims shall be borne by the borrower.


 


5.5. Subject to the
borrower performing its obligations hereunder, if the lender fails to issue the loan in full and in time to the borrower, the lender
shall compensate the borrower for the actual losses so incurred.


 


Section 6 Miscellaneous


 


6.1 The notices and
communications hereunder shall be sent to the other party according to the postal address, fax number or other contact details
indicated herein, and either party shall notify the other party of any change to its contact details promptly.


 


6.2 The lender may charge
fees according to the items and rates set by it according to laws and regulations, except otherwise agreed upon by both parties.
If the lender adjusts its fees or tariff according to laws and regulations, it has no obligation to further notify the borrower
after publication of such adjustment, except otherwise specified in laws and regulations or agreed upon by both parties.


 



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The fees payable by
both parties to third parties for performance of this contract shall be determined and borne by both parties through consultations.
In absence of consultations or if such consultations fails, the fees shall be borne by both parties according to laws and regulations
or on the fairness basis.


 


6.3 The lender or Agricultural
Bank of China may authorize or engage other branches of Agricultural Bank of China to perform the rights and obligations hereunder
as necessary for its business management (including but not limited to post-loan management, loan collection and clearing , exercise
of security interests and issue of credit) or appropriate the loan hereunder to the care of other branches of Agricultural Bank
of China, which the borrower hereby acknowledges and undertakes to bear the legal consequences of such action arising hereunder.
The aforesaid acts of the lender may be made without further consent of the borrower.


 


6.4 The lender has the
right to provide the information related to this contract (including but not limited to loan form classification and information
of overdue loans) and other information related to the borrower to the financial credit information basic database according to
the applicable laws and regulations or the requirements of financial regulatory authorities for inquiry or use by suitably qualified
entities or individuals. Any adverse effect or loss caused to the borrower due to reliance upon or use of any of the information
by any suitably qualified third party shall not be the responsibility of the lender in any manner.


 


6.5 During the term
of this contract, if enactment of or modification to any laws, regulations or national policy or regulatory provisions renders
the lender unable to continue performing this contract in full or in part, the lender has the right to cancel the loan not yet
issued and take such other measures as the lender deems necessary according to the aforesaid applicable provisions.


 


6.6 Any failure to exercise,
partial exercise or delay in exercise of any of its rights hereunder by the lender shall not constitute waiver of or change to
such right or any other rights, nor shall it affect the further exercise of such right or any other related rights.


 


6.7 Tax and invoicing


 


6.7.1 The amounts collected
by the lender from the borrower hereunder subject to the tax according to the applicable national tax laws and regulations are
inclusive of VAT. The VAT rate shall be determined according to the provisions of the national laws and regulations. During
the term of this contract, in case of any adjustment to the national tax laws and regulations, the lender will adjust the tax rates
and other related aspects accordingly. 


 



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6.7.2 The lender will
issue VAT special invoice or VAT general invoice to the borrower according to the national laws and regulations. Where the borrower
requires the VAT special invoice to be issued, the conditions and procedure specified in the national tax laws and regulations
shall be complied with, otherwise the lender has the right to reject any request of the borrower seeking VAT special invoice hereunder.
Within 360 days of receipt of any taxable amount by the lender from the borrower, the borrower has the right to require the lender
to issue an invoice. The invoices shall be issued by the lender or the issuing entity designated by the lender. Where the borrower
fails to seek VAT invoice within the specified period, the lender has no obligation to provide VAT invoice.


 


6.7.3 If the lender
issues erroneously VAT special invoice or VAT general invoice to the borrower due to the fault of the borrower, the borrower shall
be solely responsible for the resulting consequences, and the lender has the right to require the borrower to be liable for the
losses or other adverse consequences so incurred to the lender. Where any VAT invoice needs to be revoked or any red-marked invoice
is issued due to erroneous issue of invoice, the borrower has the obligation to work with the lender to complete the matter of
related invoices.


 


6.8 Dispute resolution


 


6.8.1 Any dispute arising
hereunder shall be resolved by both parties through consultations, failing which the dispute shall be resolved in the following
manner (1):


 


(1) Sue to the people’s
court having competent jurisdiction over the place of the lender;


 


(2) Submit the dispute
to _______(full name of the arbitral authority) for arbitration according to its arbitration rules.


 


6.8.2 During the legal
action or arbitration, the terms of this contract not involved in dispute shall continue in full force and effect.


 


6.9 Execution


 


6.9.1 This contract
will take effect upon being signed or sealed by both parties hereto.


 


6.9.2 Place of signing:
Jiuquan City. 


 


6.9.3 Any matter not
specified herein shall be resolved by both parties through further consultations.


 


6.9.4 This contract
is made in three copies, one copy for the borrower, one copy for the lender, one copy for the guarantor,
and _--__copies for __--__, each copy bearing the same legal effect.


 


(The following is intentionally
left blank)


 



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(Signature page)



 


The borrower’s
statement: lender has called our attention of the related terms according to law (especially those terms in block letter) and explained
the concepts, contents and legal effect of related terms upon our request, and we are fully aware of and understood the aforesaid
terms. 


 


Date of signing: March 30, 2020


 








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