Document:

Document Number:CMBC-HT-363 (Company 2011)

 

 

 

Small Medium Enterprise
("SME") Financial

Service Contract

No.:22882011294204

 

 

 

 

 

 

China Minsheng Bank
Corp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Two Parties of This Contract

 

 

Party A: Kunming Shenghuo Medicine
Co., Ltd.

 

Address: :No. 2 Jing You
Road, Kunming National Economy and Technology Developing District, Yunnan, China

 

Zip Code: 650217

 

Legal representative: Feng Lan

 

Telephone: 7282678

 

Fax: 7282620

 

 

Party B: China Minsheng Bank Corp,
Kunming Branch

 

Address: No. 331, South Ring
Road

 

Zip Code: 650051

 

Legal representative: Wangang Tan

 

Telephone: 8153786

 

Fax: 8153785

 

 

 

    	2

    	 

    

 

 Document Number:CMBC-HT-363 (Company
2011)

 

 

Terms of Loan Contract on Working Capital

 

The Loan Contract on Working Capital (therein
after referred to as "this Contract") comprises as a part of the "Small Medium Enterprise ("SME ")
Financial Service Contract".

 

Chapter I Purpose of Loan

 

Article I

The Loan under this Contract shall be for
purpose of drug purchasing. Party A shall not change the purpose of the loan specified in this Contract without Party B's written
consent.

 

Chapter II Amount of Loan and Loan Term

 

Article II

The amount of the loan under this Contract
shall be (in words): RMB Five million. The amount is limited to the amount of revolving loan under the comprehensive credit lines,
and its valid period shall be in consistence with that of maximum amount of credit line as specified in provisions of comprehensive
credit lines. The term of each loan shall be subject to its certificate of indebtedness.

 

Article III

Shall the amount of loan be limited to
the credit line of revolving loan under the comprehensive credit lines or not under the comprehensive credit lines, under the approval
of Party B, Party A could apply again for the use of already liquidated credit limit, only within the valid period of credit limit
and limited credit line; shall Party A breach the Contract, Party B is entitled to cancel all of the credit limit unused by Party
A at it will; the unused credit limit shall be canceled automatically upon its expiration. The started to use date of each credit
limit shall be no later than the deadline of its valid period. Shall there be any adjustment in the valid period, the deadline
is defined as date that has been adjusted. When applying for the use of credit limit, Party A is required to submit the application
of drawing/payment of loan to Party B one banking day early. Upon the receipt of application, Party B shall decide weather
to issue the loan or not and notice Party A.

 

Chapter III Calculation of Interest

 

Article IV Calculation of Interest Rate

1. The interest rate of the loan hereunder
shall be 9.84% (that is floating 50% upward from the loan interest rate for the same period published by the people's Bank of China
on the date of signing this Contract).

 

Where the above prescribed interest rate
be not in consistence with the actual interest rate, the interest rate shall be subject to the rate recorded in the certificated
of indebtedness.

 

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2. The interest shall
be accrued and calculated from the date when the loan is issued to the account opened by Party A in the bank of Party B as prescribed
by articles VII, VIII, IX hereunder. Party A shall, on each interest settlement date, pay Party B the interest accrued from the
date of drawing or the following day of the last interest settlement date to the current interest settlement date and the principal
mature on the current interest settlement date.

 

3. The cycle of interest
accrual and settlement is referred as below:

The interest shall be accrued on daily
basis and be settled by monthly basis, the interest settlement date refers to the 20th day of each month, however, the
last interest settlement date is determined to be the date of loan expiration.

 

4. In case Party A shall
fail to pay any principal of the loan as scheduled, Party B shall calculate and charge an overdue interest on the overdue principal
at the rate 50% up-floated above the contractual loan interest rate starting from the date on which such principal shall
become due; in case Party A shall fail to pay the interest and overdue interest on overdue principal, Party B shall calculate and
charge an annual compound interest at the rate of penalty interest at the interest settlement date or its corresponding date. The
compound interest shall be calculated by the actual days of overdue and accrued from month to month.

 

5. In case Party A shall
fail to use the loan hereunder according to its stipulate purpose, Party B shall calculate and charge a penalty interest at the
rate 100% up-floated above the contractual loan interest starting from the date of breach of contract; in case Party A shall
fail to pay the penalty interest as scheduled, Party B shall calculate and charge an annual compound interest at the rate of penalty
interest at the interest settlement date or its corresponding date. The compound interest shall be calculated by the actual days
of misappropriation and accrued from month to month. Party B may attach other responsibilities for breach of contract and shall
have the right to declare the entire or part of the undue loan to be due immediately at any time.

 

6. In case People's Bank
of China shall adjust its benchmark interest rate after the issue of this loan, the interest rate of this loan may not be adjusted
accordingly.

 

Chapter IV Issuing of Loan and Its Payment

 

Article V After this Contract become effect,
Party A shall adopt the method as below to draw the loan:Draw the entire loan under this Contract once and for all.

 

Article VI For any withdrawal of loan,
Party A shall meet the following requirements and submit the application for loan withdrawal at least 3 business days earlier according
to the request of Party B; Otherwise, Party B shall have the right to refuse Party A's application of loan withdrawal. However,
Party B's issuing of loan on the condition that Party A have not met the entire requirements as following shall not constitute
a performance defect:

 

1. Party A have provided,
including but not limited to, the following documents upon Party B's request:

1) Annually eligible
Business License, Organization Code Certificate and Tax Registration Certificate, currently effective Articles of Association,
Identity Certificate of Legal Representative and its copy.

2) Name list of his
directors and senior management related to the loan borrowing and the signature sample of each person.

 

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3) The board resolution/shareholder
meeting resolution with respect to this loan borrowing and the authorization of allowing related personals signing this Contract
and corresponding documents.

4) The application
on loan withdrawal signed by Party A

5) For the loan adopting
the independent payment method, after the first loan is issued, Party A shall provide a statement on its usage for prior loan adopted
the independent payment method ahead of each withdrawal of new loan.

 

2. Party A has finished
the procedures of obtaining administrative permit, approval relating to this loan, and its registration and other legal procedures.

 

3. The document related
to the guaranty of this loan has come into force, the right to mortgage or pledge has been set up.

 

4. No appearance of any
default event, or even though a default event appears, its way of resolution is acceptable to Party B or the default event is forgiven
by Party B.

 

5. Any presentation and
warranty made by Party A are authentic, accurate and effect.

 

6. As to the time of
loan withdrawal, no significant adverse change in Party A's financial situation has happened.

 

Article VII The Issuing of Loan

For each loan withdrawn by Party A, Party
B shall approve the withdrawal and issue the loan the Party A's account for loan issuing and the interest shall be calculated from
the date of withdrawal. The account for this loan issuing refers to:

The regulatory account
for loan issuing. For this account, Party B shall neither sell out the important blank vouchers nor conduct the activity of universal
cash saving and withdrawing; furthermore, unless otherwise approved by Party B, no corporate online bank shall be opened.

Bank Name: China Minsheng
Bank Corp., Beijing Road Sub-Branch

Account No.: 220401C910000059

 

Article VIII Management Solution for Loan
Payment

1. The payment of this
loan will adopt the plan as below:

Entire entrusted payment.

 

2. In the above prescribed
management solution for loan payment:

The entrusted payment
refers that, if adopting the entrusted payment, Party A shall submit an application for withdrawal and related business contract
to Party B pursuant to the requirement of attachment 3 as enclosed in the provisions on current capital loan. Upon confirmation,
Party B shall issue the loan which is in compliance with proposed usage directly to Party A's trading partners through the account
for loan issuing.

 

3. During the course
of loan payment, Party B shall have the right to reduce the amounts standard applicable to entrusted payment or suspend the issue
and payment of such loan in case such conditions as below shall happen to Party A: decline in credit status, weaken ability in
obtaining profitability from major business or extraordinary in loan usage. In such event, Party B shall notice Party A in time
to negotiate adding supplementary provisions on loan issuing and payment.

 

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Article IX Loan Payment

All amounts within in the account for loan
issuing shall adopt entrusted payment or independent payment as per specified management solution for loan payment. Party A shall
submit an application and related documents for withdrawal of loan; upon confirmation, Party B shall issue such loan as applied
by Party A. In case Party B shall consider the application unqualified, he shall have the right to require Party A amending the
application or refuse Party A's application. Any following responsibility or result, such as delay in loan payment shall be born
solely by Party A, and Party B shall bear no liability.

 

Chapter V Repayment of Loan

 

Article X Repayment of Loan

1. Party A shall adopt
the method as below to repay the loan:

Repay the entire principal
on the date of maturity

Repay the principal
by installments in accordance with the date and amount as specified in attachment 2 as enclosed in the provisions on current capital
loan

 

2. Party A designated
the account as below as the account for funds withdrawal: bank:name: Minsheng Bank, Beijing Road Branch; bank account: 2204014210000583.
As the account for repayment of loan, Party A shall provide fund flows situation statement when Party B requires. If Party B requires,
Party A shall engage in an agreement on account management with Party B. Party B shall have the right to collect back the loan
ahead of schedule according to Party A's situation in funds withdrawal.

 

3. Where prescribed date
of withdrawal be not in consistence with the actual date of withdrawal, the date shall be subject to the recorded date in the certificate
if indebtedness. Where the date for the first time of withdrawal be not in consistence with the actual date for the first time
of withdrawal, the maturity date of the loan shall be determined by methods as bellow:

1) Where loan repayment
be the method of repaying entire principal once for all, the maturity date of the loan shall be changed automatically with prescribed
date of borrowing and the actual date of withdrawal.

2) Where loan repayment
be the method of repaying the principal by installments, the maturity date of the loan shall change automatically with prescribed
date of borrowing and the actual date for the first time of withdrawal; rest dates of repaying the principal by installments shall
not change with the actual date for the first time of withdrawal. The loan shall be paid off by the dates of repaying the principal
by installments and the amounts as specified by attachment 2 as enclosed in the provisions on current capital loan.

 

4. In case the date of
repaying the principal shall be legal holidays, the date of repayment shall be postponed to the first business day followed by
the legal holiday and the corresponding interest shall be calculated till the delayed date of repaying the principal. In case the
interest settlement date shall be legal holidays, then corresponding interest shall still be calculated by the date of interest
settlement, however, the date of interest payment shall be postponed to the first business day followed by the legal holiday.

 

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5. In case the amount
in Party A's account for loan repayment shall be insufficient to pay off the principal and interest of the loan, Party B shall
have the right to deduct the amount from Party A's other accounts opened in any business institution affiliated to China Minsheng
Bank, the deducted amount shall be used to pay off the principal, interest, penalty interest, compound interest, liquidated damages
of the loan as prescribed in this Contract and to pay off other accounts payable. In such event, Party B shall not be liable for
any damage in interest or other damages.

 

6. Party A's intention
of repaying the loan ahead of schedule shall only be allowed in condition that the loan shall not be overdue and Party A shall
submit a written application for this purpose 10 business days before. For Party A's application:

Party B shall agree
with the repayment of loan ahead of schedule and not charge liquidated damages from Party A.

 

Chapter VI Special Liability and Responsibility
for Breach of Contract

 

Article XI Party A shall be deemed as breach
of contract in case any of following events incur:

 

1. Party A shall fail
to perform procedures of loan withdrawal within prescribed time period under this Contract and the overdue time shall exceed prescribed
date of withdrawal by 30 calendar days or more than 30 calendar days, Party B shall have the right to calculate and charge liquidated
damages at the rate of overdue interest according to the breach amount and actual days of overdue, and also shall have the right
to terminated this Contract.

 

2. Party A shall fail
to repay the amounts on due with prescribed time period.

 

3. Party A shall fail
to use the loan for prescribed purpose or fail to withdraw and pay the loan as scheduled.

 

4. Party A shall escape
the requirement of adopting entrusted payment when withdrawing by breaking down the entire loan into small entities or by other
methods.

 

5. Shall Party A's accounts
for loan issuing and for loan repayment be frozen or deducted by certain authorities; or Party A shall involve in lawsuit, arbitration,
administrative punishment and other legislative or administrative procedures which may have adverse effect on Party A's performance
of this Contract.

 

6. Shall the condition
of significant change in Party A's financial status happen, or financial index as prescribed in this Contract be broken.

 

7. Shall Party A experience
other significant adverse changes and fail to exercise remedies within in time period as required by Party B.

 

Shall Party A experience the above mentioned
events of default, Party B shall have the right to exercise correspondent rights as prescribed. Besides that, he shall also have
the right to announce immediately the maturity of the entire or part of the loan, to collect back the loan that have already been
issued and to stop issuing the loan that remains.

 

Article XII Enclosures to the provisions
on current capital loan are as below:

Attachment 1: Table for the time and amount
of the loan which is withdrew by installments by Party A

Attachment 2: Table for the time and amount
of the loan which is repaid by installments by Party A

 

 

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Attachment 3: Application for withdrawal/payment
of the loan

Attachment 4: Prescribed financial index

 

     

     

    

Document Number:CMBC-HT-363 (Company 2011)

 

Supplementary Articles

 

Such Supplementary Articles comprises a
part of the Contract.

 

Chapter I Guarantee

 

Article I Besides the guarantee types,
such as deposit pledge, separately prescribed in each business provisions of this Contract, there is additional guarantee as below
for the creditor's right formed under this Contract:

The Contract of Guaranty at Maximum Amount,
No.22882011295119

 

Chapter II Commitments and Warranties

 

Article II Commitments and Warranties by
Party A

1. He is legally registered
and existed, possessing entirely proper qualification and ability of signing and performing the Contract and any other documents
related to the Contract; he is legally and officially authorized to sign, submit, accept and perform the above mentioned documents.

 

2. All documents, materials
and vouchers provided to Party B, for purpose of signing and performing the Contract and any other documents related to the Contract,
are authentic, complete, precise and valid.All financial statements and other documents reflecting the state of operation provided
to Party B have properly reflected Party A's real financial situation and state of operation as of the date of the presentation
of the financial statement; and there is no significant adverse change in financial situation and state of operation as of the
date of presentation of such financial statement or document. Neither Party A's activity of signing this Contract nor performing
his obligations under this Contract would be contradict with current articles of association or internal articles of association,
or any contract, agreement and other document binding to Party A.

 

3. All information concerning
each bank service application under this Contract are true, legal and valid. Party A has not concealed or missed any facts of great
importance.

 

4. When signing the Contract,
no lawsuit, arbitration, administrative procedure, enforcement of judicial or administrative authority, or other potential major
dispute which is filed against Party A and would have significant adverse influence on Party A's performance of Contract has ever
exist.

 

Before all debt due to the bank under this
Contract being paid off, should any of such conditions as below happen to Party A:1) a major lawsuit or legal procedure is filed
against Party A; 2) existing of an event which would have significant adverse influence on Party A's ability of performing his
obligations under this Contract or 3) existing of an event of default under this Contract, Party A shall inform Party B in written
within 5 business days starting from the date when he recognizes the happening or potential happening of the above mentioned events.
In that case, Party A shall take any possible and legally allowable remedies into practice as per Party B's requirement or put
arrangements in place that will guarantee the benefit of Party B.

 

5. Party A has not any
major debt or contingent liability which has not been disclosed to Party B. When signing the Contract, neither default events as
set forth in Article V of this Supplementary Articles happens or keeps happening nor violation of any law, regulation, rule, judgment,
adjudication applicable to this Contrast and its assets appears; furthermore, the activity of signing this Contract or any document
under this Contract, or the activity of performing the obligations under the above mentioned agreement and document would not cause
activity of default to other agreement or document.

 

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6. Party A is required
to completely and properly perform his commitments, warranties, obligations and responsibilities under this Contract and shall
keep confidential for the information concerning Party B in fields of finance, technology and operation. Such information includes
but not limited to this Contract and other trade secrets, however, such information otherwise stipulated by laws and regulations
or provided or disclosed at the request of administrative or judicial authorities are excluded.

 

7. Party A guarantees
that he has obtained all the necessary approvals, authorizations, permissions and consents from concerning governments and/or other
departments and that such approval, authorization, permission and consent keep legal and valid.

 

8. Party A shall accept
Party B's investigation and supervision over the situation of how the loan is used under this Contract.

 

9. Party A shall work
actively with Party B and accept his supervision over Party A's state of operation and financial status; Party A shall also submit
financial statements, fact sheet on the performance of commercial contracts as well as concerning certificates as the request of
Party B.

 

10. If any event that
would constitute a danger to Party A's ordinary operation or a threat for Party A to perform his obligation of repaying the loan
under this Contract shall happen, including but not limited to the events set forth in section 4 of this article, Party A shall
inform Party B in written about the happening of such event.

 

11. Party A shall inform
Party B before taking any of following activities and shall obtain a written consent from Party B, otherwise, any performance of
activities set below shall not be allowed: foreign investment, substantial increase in debt financing, merger, separation, stock
right transferring, contracting, leasing, asset transferring, joint operation, application for business suspension, application
for dismiss, application for reconciliation/reforming/bankruptcy, and other activities that could change the relationship between
claim and debt under this Contract or affect the benefit of Party B.

 

12. In case Party A shall
provide guaranty for other party's debt, he shall inform Party B of such event in advance and obtain a written consent from Party
B.

 

13. Party A promises
that he would not deal with any significant asset by means of selling, transferring or any other methods through single trade,
or several trades or series of trades, except for those being approved by Party B.

 

14. Within the valid
period of this Contract, Party A shall inform Party B in written within 7 days of changes in such matters as below, starting from
the date when those changes happened: changes in Party A's place of residence, name, legal representative, person-in-charge and
change in senior management.

 

15. Party A shall obtain
a written consent from Party B for intention of transferring his debt under this Contract to the third party.

 

16. Party A shall inform
Party B immediately for other significant adverse events which could affect his ability of repaying the debt.

 

17. Party A shall promise
that the usage of the loan be in consistent with provisions in this Contract and specified laws and regulations.

 

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Chapter III Other Rights and Obligations

 

Article III Other Rights and Obligations

1. Party A's performance
of obligation shall be in consistent with rules of law and provisions of detailed agreement and Party B shall have the right to
check his situation in loan payment management under this Contract, management of loan after it was extended and the situation
of specific business; for that purpose, Party B may request Party A providing statement on the performance of business contract
and related vouchers. Party A shall cooperate with Party B with respect to the above mentioned management and examination.

 

2. During the period
of Contract performance, Party A shall send the authentic financial statements and statement on the accounts opened in the bank
and balance of the loan to Part B upon his request.

 

3. Under the situation
that a guarantee is provided, if the guarantor violates any of his obligations or commitments as prescribed in the guaranty contract
or lose his ability of providing guarantee, or if the collateral is damaged or its value is significantly reduced, Party A promises
to provide immediately a new guarantee acceptable to Party B upon his request or pay off the debt to Party B ahead of schedule.

 

4. Before Party A or
the guarantor 1) engage in the guaranty contract and have it become effect; 2) finish necessary procedures for the guaranty contract
and 3) set up the right to mortgage or pledge at the request of Party B, Party B shall not obliged to perform his obligations under
this Contract.

 

5. Unless otherwise prescribed
by both parties, Party A shall be liable for expenses related to this Contract and the guarantee under this Contract, which includes
but not limited to expenses on litigation, arbitration, law affair, valuation, registration, storage, appraisal, notarization,
business trip as well as other expenses on realization of creditor's right and secured right.

 

Chapter IV Adjustment of credit line
and the acceleration of maturity of creditor's right

 

Article IV During the period of performing
this Contract, shall any of following events happen, Party B shall have the right to adjust the credit line of the loan, stop paying
the balance of the loan or require Party A paying off the entire or party of the creditor's right ahead of schedule:

 

1. Party A faces deterioration
in operation of business or has major operational difficulties.

 

2. Major changes happen
to market that has relation with Party A's business operation.

 

3. Major adjustment is
made to related state policies.

 

4. Party A violates the
contract or agreement engaged with the other party or violates the commitments he unilaterally made, resulting in a default activity
to other debt or the announcement of accelerated and/or possible accelerated maturity of other debt by other creditor.

 

Chapter V Liability for Breach of Contract

 

Article V Party A shall be deemed as default
should any one of following events happen:

 

1. Party A shall fail
to perform any of his promises, commitments, obligations or responsibilities properly and completely.

 

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2. The guarantor shall
fail to perform any of his promises, commitments, obligations or responsibilities properly and completely; or any other guarantor
who provides guaranty for Party A

shall fail to perform any of his promises, commitments, obligations or responsibilities under
other documents of guaranty properly and completely.

 

3. Any of Party A's other
loan, guaranty, indemnity, promises or other responsibility of paying debt shall be unable to be performed upon maturity, or even
be involved in litigation, arbitration or procedure of enforcement, making Party B believe that Party A's ability of performing
the contract has or may have been adversely affected.

 

4. Changes that shall
undermine the creditor's right of Party B happen to the guaranty under this Contract, which includes but not limited to the inactive,
invalid and announcement of concealing of the guaranty contract or other method of guarantee, or the guarantor loses his entire
or part of the ability of providing guaranty, or the guarantor claims that he will not perform his obligation, or when the mortgaged
or pledged assets are damaged or lost or their value is reduced, Party A fails to provide a new guaranty acceptable to Party B
upon his request.

 

5. During the period
of performing the contract, Party A or the guarantor shall claim or claim by activity that he will not perform his obligations
as prescribed.

 

6. Party A shall provide
false or major fact omitted balance sheets income statement or other important material to Party B, or shall he relucted to accept
Party B's supervision over his situation on the use of credit line and activities in production, operation and finance.

 

7. Party A shall transfer
the asset, surreptitiously withdraw the fund or avoid the debt and conduct other activities that shall damage the benefit of Party
B.

 

8. Party A shall violate
other obligations as prescribed.

 

Article VI Should Party A breach the contract,
Party B shall have the right to determine unilaterally to make adjustment to the balance of credit line or stop paying the balance
of the loan, or require Party paying off the entire or part of the creditor's right ahead of schedule; besides that, Party B shall
further have the right to require Party A be liable for the penalty interest, compound interest, overdue interest, liquidated damages,
paying the compensation and compensating for the loss and bear other responsibilities as prescribed in this Contract.

 

Article VII For any obligation or responsibility
shall be performed by Party A or the guarantor upon maturity, Party B shall have the right to directly deduct the amount from account
opened by Party A in any institution set up by China Minsheng Bank Corp. to pay off the debt and he shall also have the right to
dispose the asset or equity whose rights of possessing, disposing or yielding belong to Party A and is occupied or in custody in
any institution set up by China Minsheng Bank Corp. The proceedings from disposal shall be used to pay off the debt and Party B
shall not be liable for any damage resulted from realization, sell off or disposal of Party A's asset or equity.

 

Article VIII Unless otherwise prescribed
by specified provisions under this Contract, any proceeding from Party B's exercise of right shall be used to pay off the creditor's
right of Party B according to the following order: 1) expenses on the realization of creditor's right and secured right; 2) damages
and compensation; 3) liquidated damages; 4) compound interest and penalty interest; 5) overdue interest; 6) interest; 7) principal;
8) other accounts payable.

 

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Party B shall have the right to change
the order set forth unilaterally.

 

Chapter VI Delivery of Notice

 

Article IX Unless otherwise prescribed
by both parties, all notices shall be deemed as formally delivered on following date: 1) in case of hand delivery, the delivery
date shall be subject to the date when any staff member or recipient representative of notified party receive the notice; 2) in
case of registered mail, express delivery or EMS in the same city, the delivery date shall be subject to the following date starting
from the date when the mail is sent; 3) in case of registered mail, express delivery or EMS in the other regions, the delivery
date shall be subject to the third business day starting from the date when the mail is sent. However, in case the above prescribed
delivery date is inconsistent with the date when notified party actually receive the notice or sign for mail, the delivery date
shall be subject to the earliest date of receipt.

 

Article X Where Party A fails to perform
his obligation of noticing with respect to information change, when Party B sent any notice or document according to the information
recorded in this Contract, the notice or document shall be deemed as delivered since the date it was sent according to the provision,
without consideration of whether notified party acknowledges it or not.

 

Chapter VII Resolution of Dispute

 

Article XI All disputes raised from this
Contract could be solved through negotiation; if fails, could choose to lodge a lawsuit with a people's court in the residential
place of Party B.

 

Chapter VIII Coming into Force of the
Contract

 

Article XII This Contract shall become
effect after signing and sealing by authorized persons of both parties.

 

Article XIII "all parties of this
Contract", "specified business provisions" and "supplementary articles" together constitute the entire
provisions of this Contract.

 

The specified business provisions shall
at least include one of the following provisions: "comprehensive provisions on line of credit", "provisions on current
capital loan", "provisions on bank acceptance", "provisions on bank draft discount", "provisions
on bank guarantee", "provisions on corporation overdraft", "provisions on credit line of financing through
factoring" and each attachment. In case the context of this Contract be inconsistent with attached provisions on specified
business, the context shall be subject to the attachment.

 

Chapter IX Other Provisions

 

Article XIV Those information need to be
filled in or for choosing in this Contract will be included in the Elements Table for SME Financial Service Contract, therefore,
both parties may choose not to fill in the blank or check the box in this Contract. The format of Element Table shall be acceptable
to Party B. Where an Element Table is chosen for purpose of using, the Element Table shall constitute a part of this Contract.

Article XV The name of Contract and titles
of each provision are set only for the convenience of reading and shall have constitute no limit or influence on the context or
explanation on the provisions.

 

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Article XVI When entering into this
Contract, Party B have provided detailed description and explanation on the entire provisions of this Contract to Party B. Neither
party has disagreement on the entire provisions of this Contract and and each party have had accurate understanding to the legal
meaning of limitation to related rights and obligations or exclusion terms. 

 

Article XVII Party A agrees that:
Party B, at the request of Chinese law and financial regulator, shall have the right to input related information and other information
provided by Party A into the credit information date base established by People's Bank of China or other legally formed inquiry
agencies for purpose of searching and using by qualified units or individuals; in the condition that Party A breaches any provision
under this Contract, Party B shall have the right to publicize Party A's information in default according to the actual situation
and provide related information to debt-collection agencies for purpose of collecting the unpaid bills. 

 

Article XVIII Should there be other credit
business granted by Party B besides those specified credit business as prescribed in this Contract, both parties shall engage in
separate agreement in this regard. Any context in this agreement be inconsistent with this Contract shall be subject to this agreement.

 

Article XIX Other Matters Agreed by Both
Parties.

No.

 

Article XX This Contract is in duplicate
with both parities herein holding one copy each. Each copay shall have the same legal force.

 

Article XXI Attachment: List of Companies
Agreed by Accredited Party (Party A) to Use His Comprehensive Credit Lines

 

(This page refers to the signature page
of SME Financial Service Contract)

 

 

 

Party A (seal): Kunming Shenghuo
Medicine Co., Ltd.

Authorized Person (signature or seal):
Feng Lan

Date: September 29, 2011

 

Party B (seal): China Minsheng Bank
Corp., Kunming Branch

Authorized Person (signature or seal):
Shouzhong Chen

Date: September 29, 2011

 

    	13AMENDMENT TO LETTER AGREEMENT REGARDING
OPENFILM

 

This letter agreement is deemed entered into
as of September 28, 2010. When and if Enerfund, LLC and/or Mike Zoi and Dmitry Kozko trade any portion of their interest in Openfilm,
LLC for shares of a public company, Enerfund, LLC shall include James Caan ("Caan") in the trade of interest in Openfilm,
LLC to be included in the same ratio as Enerfund's Openfilm interest, at no cost or tax liability to Caan (the "Exchange").
Any expense or liability resulting directly or indirectly from such exchange shall be borne by (and reimbursed promptly upon submission
of costs) by Enerfund, LLC to Caan. Enerfund agrees it shall not enter into an agreement to buy or sell the assets or stock of
the public company, Openfilm or the music entity, once formed, without notifying Caan of the transaction and including Caan, on
a pro rata basis, in all equity sales, pro rata, on the same terms as Enerfund. The stock to be issued to Caan in the Exchange
will be unrestricted (subject to Reg. 144 restrictions if Caan acts as a Director of the public company), of the same class, with
the same voting rights, as that issued to Enerfund and Caan will have piggy-back registration rights should the public company
file a registration statement before any such restriction lapses (other than restrictions related to dribble out), at no expense
to Caan.

 

Caan's agreement to such exchange of his Openfilm
interest is premised upon Mike and Dmitry's representation to Caan that they are exchanging all of their membership interest in
Openfilm, LLC for shares in the public company and for no other consideration.

 

Caan shall be assured a place on the Board
of Directors of the public company by virtue of Mike and Dmitry agreeing to vote their shares in favor of Caan as Director, if
he wants to serve as a Director of the company. This agreement shall be binding for three years from the time of the Exchange,
if it occurs prior to October 12, 2011. By their signatures below, the parties agree to this commitment to Caan.

 

    	 

    	 

    

 

Enerfund, Mike and Dmitry represent to Caan
that (1) they will not directly own any interest in the music company and that the music company will operate as a subsidiary of
the public company and (2) they will not receive payment on any loan to such entity unless at the time of repayment, Enerfund and
Mike pay Caan 5% of the amount they will receive above and beyond the return of principal. If Enerfund or Dmitry exchange their
interest in the public company for any direct interest in the music entity, whether a membership interest, stock or equity, Enerfund,
Mike and Dmitry agree to and shall assign to Caan five percent (5%) of all proceeds they receive at any time from their interest
in the music entity ("Assignment"), which shall be paid to Caan when they receive it or have the right to receive such
proceeds, unless Caan elects to defer receipt of payment until actually received by Enerfund, Mike or Dmitry. Further, Enerfund
and Dmitry represent and warrant to Caan they will pay him or cause to be paid to him, if and when received by them, in the aggregate,
five percent (5%) of all dividends (other than dividends to all public company shareholders pro rata), payments, distributions,
compensation, assets or proceeds of any kind ("Extraordinary Revenue") from such entity other than reasonable salary
or bonuses paid for services rendered to the music entity (and in the case of Mike, approved by the Board of Directors). (The consideration
that may be paid to Enerfund, Mike or Dmitry for their actual services, beyond those of a Director, to the music entity, without
triggering payment pursuant to the Assignment is referred to in this agreement as "Reasonable Salary.") The Assignment
shall be irrevocable, shall be deemed to be coupled with an interest, and shall survive the term of Caan's consultancy with Openfilm,
but shall only be operative so long as Caan retains any interest in the public company or continues to serve as a Director of the
public company described above.

 

Enerfund, Mike and Dmitry represent to Caan
that they will not accept, receive or take any Extraordinary Revenue from the music company unless Caan is paid by Enerfund and/or
Mike and Dmitry, at the same time, five percent (5%) of the gross Extraordinary Revenue received by Enerfund, Mike and Dmitry from
such transaction, pro rata between them.

 

Enerfund, Mike and Dmitry represent to Caan
so long as he is a consultant with Openfilm or the music entity, they will appoint him to the Board of Director or Advisory Board
of such companies, unless he elects not to be appointed. Caan's consideration, if any, for acting as a director of the public company
will be equal to but not less than the consideration paid to any other non-officer Director. If he acts as a consultant to the
music company, Caan will be compensated commensurate with the services he provides.

 

    	-2-

    	 

    

 

Subject to the executory promises set forth
above with respect to the public company and its expected relationship with a new music company which Enerfund plans to form, once
signed, this letter agreement will be deemed an amendment to the Letter Agreement regarding Openfilm dated October 12, 2009, addressed
to Caan, (collectively "Letter Agreement"), and Caan agrees that he is waiving his right to receive any anti-dilution
protection after the Exchange. In the event of any conflict between the October 12, 2009 letter and this letter agreement, this
letter agreement shall prevail.

 

Other than reasonable compensation which may
be payable to Mike or Dmitry for their services to the public company, subject to prior full disclosure of the terms of such salary,
neither Enerfund, Mike nor Dmitry shall be paid compensation or receive Extraordinary Revenue from the public company unless Caan
is paid commensurately. If Caan is asked to perform services above and beyond the services for Openfilm in his consulting agreement
or as a Director of the public company, nothing contained in this letter agreement shall be deemed to preclude Caan's opportunity
to obtain reasonable compensation for such services.

 

This letter agreement may be executed in any
number of counterparts, each of which when so executed and delivered shall be deemed an original, and such counterparts together
shall constitute only one instrument. Electronic or facsimile signatures shall be binding and effective as an original. This letter
agreement shall be effective as of the date specified on the first page hereof, notwithstanding the actual date of execution of
any of the counterparts hereof. Any one of such counterparts, or any true, complete and correct copy thereof, shall be sufficient
for the purpose of proving the existence and terms of this letter agreement, and no party shall be required to produce an original
or all of such counterparts in making such proof. Notices may also be delivered by electronic communication provided all material
notices affecting significant obligations or issues may be relied upon only if confirmation of receipt is delivered by the recipient
or the sender also mails by United States mail a duplicate of the electronic transmission within a day or two after the initial
electronic communication.

 

By signature below, each party, by signing
below, represents to the others that the party signing has authority to bind and commit to this agreement and the representations
herein without the requirement of any further signatory or action.

 

    	-3-

    	 

    

 

	ENERFUND	 	DMITRY KOZKO
	 	 	 
	By:	 	 	 
	Name: Mike Zoi	 	 
	Title:   President	 	 
	 	 	 
	JAMES CAAN	 	MIKE ZOI
	 	 	 
	 	 	 

  

    	-4-

    	 

    

 

October 12, 2009

 

 

Mr. James Caan

c/o Bob Philpott, CPA

Philpott Bills Stoll & Meeks, LLP

16030 Ventura Boulevard

Suite 380

Encino, CA 91436

 

Subject:        
Letter Agreement Regarding Openfilm

 

Dear Jimmy:

 

Congratulations on becoming a part of Openfilm,
LLC. With your active participation, I look forward to our developing www.openfilm.com into the premier online site for independent
filmmakers.

 

This letter confirms that during the term
of the Consulting Agreement and continuing for and through 2 years after the termination of your consulting relationship that begins
as of the date of this letter, if Openfilm, EnerFund, or I, using any affiliate or company, or if I invest, personally, and have
a controlling interest in any business using technology or contacts deriving from the business of Openfilm as a separate business
from Openfilm, I will provide you 5% of 100% of my interest in such other business with no additional investment on your part and
your interest will have the same rights and benefits as my interest.

 

Again, I look forward to the success of
Openfilm.com and the relationship between us as owners.

 

	 	Sincerely,
	 	 
	 	/s/ Mike Zoi
	 	Mike Zoi

   

    	 

    	 

    

 

CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT (this
"Agreement") is made by Openfilm, LLC, a Florida limited liability company (the "Openfilm"), and James Caan
(the "Consultant"), and is effective as of October 12, 2009 (the "Effective Date").

 

RECITALS

 

WHEREAS, Openfilm has developed
and continues to operate a video serving website (www.openfilm.com, the "Website") for high-quality, independent film
makers; and

 

WHEREAS, Mike Zoi, the Manager and
principal investor/member of Openfilm, has committed to funding Openfilm, and guiding it to greater recognition and prominence
through hiring appropriate consultants, employees and advisors, and by securing or guaranteeing capital to enable Openfilm's Website
to offer prize money to winners of its online film festivals through the Term of this Agreement (defined below); and

 

WHEREAS, Consultant's name and likeness,
by virtue of Consultant's reputation and acting achievement, has acquired a stature important to establishing his credibility in
the entertainment sector and media; and

 

WHEREAS, Openfilm is desirous to
enter into an agreement with Consultant to leverage his expertise and relationships, as well as to acquire a non-exclusive license
for the Term to utilize Consultant's name in connection with the marketing and promotion of the Website and Consultant is willing
to grant a non-exclusive license on the terms and conditions set forth below; and

 

WHEREAS, Consultant's commitment
to this Agreement shall be, at all times, conditioned upon the obligations of Openfilm set forth below.

 

AGREEMENT

 

NOW, THEREFORE, in consideration
of the mutual covenants set forth herein and for other good and valuable consideration, it is agreed as follows:

 

Section 1.     Engagement
of Services.

 

The recitals are incorporated herein as
restated covenants. Openfilm has requested Consultant and Consultant has agreed to consult with Openfilm on a non-exclusive basis.
Consultant shall use reasonable efforts to attend meetings as requested from time-to-time by Openfilm's CEO and to render advice
on issues discussed at such meetings.

 

The manager of Openfilm, who is signing
this Agreement on behalf of Openfilm, shall appoint Consultant as Chairman of Openfilm immediately upon execution of this Agreement
and for as long as Consultant is consulting with Openfilm. 

  

    	 

    	 

    

  

Consultant will serve as one of Openfilm's
mentors to Openfilm's community of filmmakers while scouting the next generation of award winning independent films. Subject to
Consultant's ability to attend without conflicting with his professional obligations, Consultant will participate with Openfilm
in the following ways (collectively, the "Services"):

 

		Ÿ	Strategize on the launch of a revamped
Website, including media tour, appearances/presentations, etc. at times and on dates approved by Consultant.

 

		Ÿ	Consultant will serve as the "face
of Openfilm," granting use of his name and his approved likeness to the Company on the Website to promote the Company, in
the media through media interviews and special appearances, including festivals, awards shows and at film schools, subject to Consultant's
prior written approval in each instance (any such approval not to be unreasonably withheld or delayed).

 

		Ÿ	Assemble a Board of Advisors (each member,
an "Advisor") to serve as mentors to Openfilm's filmmaking community by judging contests, answering filmmakers' questions
online and interacting online with audiences at specific times, several times a year. Consultant will be the leader for the Board
of Advisors. Openfilm shall grant 2,000,000 Openfilm membership units (the "Advisor Units") for the recruitment of the
Advisors at the direction of Consultant in amounts designated by Consultant amongst the various initial Advisors. The Advisor Units
shall be registrable at the request of the owner of the Units, if and when Openfilm registers other units with the SEC (piggy back
registration rights), and the Units will be subject to tag along rights and be treated the same as Consultant's Units with respect
to any sale of Openfilm or public registration of Openfilm. During Board of Advisors gatherings, Consultant and the Advisors will
socialize and discuss Openfilm, as well as the direction of filmmaking in general. Openfilm will ensure that the Advisor Units
are issued and registered, as necessary, to comply with applicable corporate securities and tax laws; provided, however, that Consultant
and the Advisors will be advised that initially the Advisor Units will not be registered for resale or distribution, until such
time as Openfilm files, in its sole discretion, its initial registration with the U.S. Securities and Exchange Commission. Openfilm
is planning to develop its programs, inventory and assets to attract investment interest, either as a public offering or a private
placement, and will work with Consultant and other advisors to try to accomplish this objective.

 

		Ÿ	Openfilm may also screen films for Consultant
and the Advisors, including the best and/or most popular films on Openfilm as voted on by the Website's community members, and
Consultant and Advisors will discuss the films in a round-table type setting. These meetings may be filmed by Openfilm and shown
on the Openfilm Website.

 

    	-2-

    	 

    

 

		Ÿ	Consultant will brainstorm creative ideas,
including contests, promotions and tie-ins to industry events and major film festivals that advance the awareness of Openfilm.
Consultant may choose to appear in one or more video blogs on Openfilm. Openfilm will provide marketing consultants or employees
to assist Consultant with any writing requests from the media or bloggers responding to Openfilm notices, contests or promotions.
Consultant will endeavor in good faith to make media appearances related to Openfilm activities.

 

		Ÿ	Assist with the recruitment of film schools
and film festivals to join Openfilm and to endeavor to grow the number of films and filmmakers who participate on the Website.

 

		Ÿ	Consultant may participate as his professional
schedule permits, in the Website, including without limitation contests, blogs, video blogs, commentary, Internet film festivals,
etc.

 

		Ÿ	Consultant will be the Chairman of the
Board of Directors of Openfilm during the Term of this Agreement.

 

		Ÿ	During the Term, Openfilm shall provide
experienced marketing and technical support to maintain a top Website.

  

Section 2.    Grant
of Right to Use Likeness.

 

During the Term of this Agreement, and
provided Openfilm is in material compliance with this Agreement, Consultant grants to Openfilm the right to use his name, nickname,
initials, autograph, facsimile signature, photograph, likeness, and/or endorsement (each a "Likeness") in promotion of
Openfilm, the Website, and Openfilm's events (the "License") specifically as Consultant approves, which approval shall
not be unreasonably withheld. Consultant shall approve all images of Consultant for Openfilm's use and shall have the right to
approve all press releases, biographies or other personal information used by Openfilm which approval shall not be unreasonably
withheld. Subject in each instance to Consultant's approval, such grant will terminate upon the termination of Consultant's services
for Openfilm, upon the termination of this Agreement, upon an uncured material breach by Openfilm of this Agreement or any other
agreement with or for the benefit of Consultant, or if there is any negative publicity associated with any principals involved
with the Website, or with any film competition hosted by the Website, in Consultant's sole and absolute discretion. Any publication
of Consultant's name, likeness, etc. by Openfilm without his specific consent as provided herein shall be a material violation
of this Agreement. Openfilm shall submit all requests for approval of use of a Likeness to Consultant with sufficient specificity
for Consultant to understand the requested use. Consultant shall use his best efforts to respond to such requests within 72 hours;
provided, however, that Openfilm acknowledges that Consultant's schedule may make this difficult and endeavors to work with Consultant
as necessary to coordinate such requests.

 

    	-3-

    	 

    

 

Section 3.   Term
and Termination.

 

The Term of this Agreement shall be two
years commencing on the Effective Date (the "Initial Term"). Either Party may terminate this Agreement with or without
cause by providing the other Party thirty (30) days prior, written notice. If either party terminates this Agreement, the Initial
Retainer (as defined in Section 4 herein) will be treated as follows: (i) if termination occurs by Openfilm without Cause, Consultant
shall be entitled to retain the Initial Retainer and the retained interest shall have the same rights and benefits as if Consultant
continued to be working with Openfilm; (ii) if termination occurs by Consultant without Good Reason, Consultant shall forfeit a
portion of the Initial Retainer, proportionate with the number of months of the Term remaining subtracted from twenty-four 24 months.
For example, if Consultant terminates the consultancy after 16 months, he will forfeit (24-16=8) divided by (24), or one-third
of the Initial Retainer. For purposes of this Section 3, "Good Reason" shall mean the failure of Openfilm members to
fund or staff adequately the operations of Openfilm or Openfilm's or its members' involvement in activities that could reasonably
be deemed to cause material damage to Consultant's reputation or career, or material breach by Openfilm of any condition or covenant
of this Agreement. For purposes of this Section 3, "Cause" shall mean Consultant's material failure to provide the Services
set forth in Section 1 above or Consultant's involvement in activities that could reasonably be deemed to cause material damage
to Openfilm's business reputation or Consultant's involvement in the business and/or operations of a direct, online competitor
of Openfilm.

 

Section 4.   Compensation.

 

In consideration of the Services and the
grant of the License, Openfilm will pay Consultant a one-time retainer in the form of membership units of Openfilm as specified
on Schedule I to this Agreement (the "Initial Retainer") for the Initial Term and additional consideration, either in
the form of additional membership units or cash or a combination of the two as set forth on Schedule I hereto per year for each
Subsequent Term ("Subsequent Retainer"). In addition, Openfilm will pay, in advance, for Consultant's reasonable travel
expenses incurred, including first class travel arrangements when Consultant travels for Openfilm. Openfilm will reimburse Consultant,
in addition, for all reasonable expenses he incurs in rendering the Services. The Initial Retainer shall be delivered to Consultant
concurrently with the execution and delivery of this Agreement. All approved costs of Consultant shall be paid by Openfilm directly,
or reimbursed to Consultant, if time does not permit advances by Openfilm.

 

Openfilm shall hire upon the effective
date of this Agreement, an assistant, selected by and who is to work primarily for Consultant (the "Assistant"). Openfilm
will pay the Assistant a gross salary of $1,000 per week on its normal payroll schedule. Openfilm shall include the Assistant on
its workers' compensation insurance and shall indemnify and hold Consultant harmless from liability, obligations, costs and expenses
related to the Assistant's employment unless due solely to his misconduct.

 

    	-4-

    	 

    

 

Section 5.   Confidentiality.

 

5.1         Confidential
Information. As used in this Agreement, "Confidential Information" means ail nonpublic information disclosed by or
relating to Openfilm or Consultant that is designated as confidential or that, given the nature of the information or the circumstances
surrounding its disclosure, reasonably should be considered as confidential. Confidential Information includes, without limitation,
(i) all nonpublic information relating to Openfilm's technology, customers, business plans, finances and other business affairs,
(ii) all third-party information that Openfilm specifically identifies to Consultant as being confidential, and (iii) with respect
to Consultant, all information about his private life, family, financial and professional details not publicly available. Confidential
Information may be contained in tangible materials, such as drawings, data, specifications, reports and computer programs.

 

5.2         Exclusions.
"Confidential Information" does not include any information that (i) is or becomes publicly available without breach
of this Agreement, (ii) can be shown by documentation to have been known to Consultant at the time of its receipt from Openfilm
or Consultant, respectively, (iii) is received from a third party who did not acquire or disclose such information by a wrongful
or tortious act, or (iv) can be shown by documentation to have been independently developed by Consultant without reference to
any Confidential Information.

 

5.3         Use
of Confidential Information.

 

(a)          Consultant
may use Confidential Information only pursuant to his relationship with Openfilm. Openfilm cannot use confidential information
about Consultant at all. Except as expressly provided in this Agreement, Consultant will not disclose Confidential Information
to anyone without Openfilm's prior written consent. Consultant will take all reasonable measures to avoid disclosure, dissemination
or unauthorized use of Confidential Information, including, at a minimum, those measures it takes to protect his own confidential
information of a similar nature.

 

(b)          Openfilm
may use Confidential Information only in pursuance of its relationship with Consultant. Except as expressly provided in this Agreement,
Openfilm will not disclose Confidential Information to anyone without Consultant's prior written consent. Openfilm will take all
reasonable measures to avoid disclosure, dissemination or unauthorized use of Confidential Information, including, at a minimum,
those measures it takes to protect its own confidential information of a similar nature. Openfilm will segregate Confidential Information
from the confidential materials of third parties to prevent commingling.

 

    	-5-

    	 

    

  

Section 6.    Non-Competition.

 

While Openfilm understands that Consultant
is involved in many different aspects of the filmmaking and entertainment industry and that his services for Openfilm are not exclusive,
Consultant agrees to advise Openfilm of any role he undertakes during the Term with a private online video/film delivery portal
that competes with Openfilm in any fashion, except as may be required by Consultant in connection with a film or television project.
In Openfilm's discretion, Openfilm may terminate Consultant's participation in the Advisory Board if it deems that Consultant's
participation creates an unacceptable conflict of interest.

 

Section 7.    Intellectual
Property.

 

During the Term of this Agreement, all
discoveries and works, including without limitation, ideas, recommendations, additions, suggestions, rewrites, or other contributions,
made or conceived for Openfilm by Consultant as part of his Services shall be the sole and exclusive property of Openfilm or shall
be deemed work made for hire and all right, title and interest in such Work shall inure to the benefit of Openfilm. Consultant
shall assist Openfilm in obtaining or maintaining for itself at Openfilm's expense United States and foreign copyrights protection
or other protection of any and all such Works, and promptly execute, whether during the Term of this Agreement or thereafter, all
applications or other endorsements necessary or appropriate to maintain patents and other rights for Openfilm and to protect its
title thereto.

 

Section 8.    Indemnification
and Insurance.

 

If Consultant is made a party or threatened
to be made a party to any action, suit or proceeding (an "Action"), by reason of the fact that Consultant is involved
with Openfilm, Consultant shall be defended, indemnified and held harmless by Openfilm to the fullest extent permitted by law,
as the same exists or may hereafter be amended, against all liability, damages, losses, judgments, liabilities, fines, settlements,
and costs, attorneys' fees and any expenses of defending himself with counsel of his choice or establishing a right to indemnification
under this Agreement ("Expenses") incurred by Consultant in connection therewith, and such indemnification shall continue
after Consultant has ceased to be Consultant to Openfilm, and shall inure to the benefit of his heirs, executors and administrators;
provided, however, that Consultant shall not be so indemnified for any Action which is finally adjudicated to have arisen out of
his willful misconduct, bad faith, gross negligence or reckless disregard of duty. Consultant's services and obligations under
this Agreement are subject to and conditioned upon Openfilm procuring and maintaining throughout the Term of this Agreement, at
Openfilm's expense, endorser's and directors' and officers' insurance coverage for Consultant in an amount no less than Ten Million
Dollars ($10,000,000.00).

 

Section 9.    Independent
Contractor.

  

Consultant is an independent contractor
in the performance of the Services. This Agreement shall not be interpreted as creating an association, joint venture, or partnership
relationship between the parties or as imposing any employment, or partnership obligation, or liability on any party. Consultant
shall not be entitled to, and shall not attempt to, create or assume any obligation, express or implied, on behalf of Openfilm.
Openfilm shall have no obligation to withhold or pay income tax, workers' compensation, pension, deferred compensation, welfare,
insurance, and other employee taxes on behalf of Consultant.

 

    	-6-

    	 

    

 

Section 10.General
Provisions.

 

10.1      Governing
Law. The laws of the State of California, without regards to choice of law provisions, shall govern this Agreement.

 

10.2      Entire
Agreement. This Agreement sets forth the entire understanding and agreement of the parties as to the subject matter of this
Agreement. It may be changed only by written amendment signed by the parties.

 

10.3      Prevailing
Party. In the event either of the parties to this Agreement commences any action or proceeding arising out of, or relating
in any way to, this Agreement, the prevailing party shall be entitled to recover, in addition to any other relief awarded to such
party, his, her or its costs, expenses and reasonable attorneys' fees.

 

10.4      Assignability.
Neither party may assign this Agreement or the rights and obligations thereunder to any third party without the prior express written
approval of the other party which shall not be unreasonably withheld.

 

10.5      Agreement
Binding On Successors. The provisions of the Agreement shall be binding upon and shall inure to the benefit of the Parties
hereto, their heirs, administrators, successors and assigns.

 

    	-7-

    	 

    

 

IN WITNESS WHEREOF, the parties hereto
have executed this Consulting Agreement effective as of the day and year first above written.

  

	OPENFILM, LLC	 	CONSULTANT
	 	 	 	 
	By:	/s/ Mike Zoi	 	 /s/ James Caan
	Name: Mike Zoi	 	Name: James Caan
	Title:   Managing Member	 	 

  

    	-8-

    	 

    

 

Schedule I

 

Initial Retainer

 

The initial retainer for Services, to
be issued to Consultant upon and as a condition to the effectiveness of this Agreement, shall be all right, title and interest
to membership units of Openfilm, LLC constituting five (5%) percent of all classes of membership interests in Openfilm. Consultant's
interest in Openfilm will not be subject to dilution; provided, however, third party investments in Openfilm and other forms of
financings by individuals unrelated, unaffiliated and independent of any past or current members of Openfilm, without limitation
a public offering may dilute Consultant's Units at the same rate as other parties. The Units shall be granted upon execution of
this Agreement and shall be free and clear of any encumbrance or lien except those contained in Openfilm's Operating Agreement.
Consultant's Units shall include tag along rights and all other rights conferred upon the membership units held as of the date
of this Agreement or thereafter by Mr. Zoi except as to any preference upon liquidation.

 

Subsequent Retainer

   

The Subsequent retainer will be negotiated
between the parties prior to the end of the Initial Term; provided, however, that it is understood that Consultant's ongoing ownership
interest will be the major consideration for his ongoing participation with Openfilm beyond the Initial Term.

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