Document:

Exhibit 10.38

    

     

    MASTER LEASE AGREEMENT

     

    This Master Lease Agreement (“Agreement”) is dated as of October 12, 2020 by and between TD EQUIPMENT FINANCE, INC. (“Lessor”), having
      an office at 2059 Springdale Road, Cherry Hill, New Jersey 08003, and PHOTRONICS, INC. (“Lessee”). If more than one person or entity executes the Agreement as “Lessee,” then the term “Lessee” shall mean each
      person or entity executing the Agreement both individually and Jointly, and each such person or entity shall have joint and several liability under the Agreement.

     

    

    In consideration of the mutual agreements set forth below and the payment of rent as provided for herein, and intending to be legally bound, the parties agree as follows:

     

    
      1.          LEASE. This Agreement establishes
        the general terms and conditions under which lessor may from time to time lease equipment and other property to Lessee. The terms of this Agreement shall be deemed to form a part of each Master Lease Schedule (each a “Schedule”) executed by Lessee
        and Lessor which references this Agreement. “Equipment’’ shall mean all items of equipment and other property described on any Schedule. Each Schedule shall constitute a separate lease agreement (“Lease”) incorporating all of the terms and
        conditions of this Agreement. In the event of a conflict between the provisions of any Lease and the provisions of this Agreement, the provisions of the Lease shall prevail.

    

     

    2.          TERMS AND LEASE PAYMENTS. This Agreement shall become effective when it is signed and accepted by Lessor and shall
      remain in effect until the last Lease term under any Schedule has expired. Individual Leases go into effect and the term of a Lease begins when it is signed and accepted by Lessor (“Commencement Date”). Lessee hereby authorizes Lessor to insert the
      Commencement Date on each Lease. Lessee shall pay to Lessor rent (“Lease Payments”) for each item of Equipment in the amount and at the times specified in the Schedule for such Equipment. Unless otherwise provided by the Lease, the first Lease
      Payment is due on the date Lessor accepts the Lease or any later date designated by Lessor, and interim rent shall be due from the date Lessee accepts the Equipment. Subsequent Lease Payments will be due as invoiced by Lessor for successive months
      until the balance of the Lease Payments and any additional Lease Payment or expenses chargeable to Lessee under a Lease are paid in full. LESSEE’S OBLIGATION TO PAY THE LEASE PAYMENTS AND OTHER LEASE OBLIGATIONS IS
        ABSOLUTE AND UNCONDITIONAL AND IS NOT SUBJECT TO CANCELLATION, DEFENSE, DEDUCTION, RECOUPMENT, REDUCTION, SETOFF, CLAIM OR COUNTERCLAIM. THIS AGREEMENT AND ALL LEASES ARE NON-CANCELLABLE. All Payments will be made to Lessor as set forth on
      the Lease or any other place Lessor indicates in writing.

     

    The amounts of each Lease Payment is based on the supplier’s best estimate of the Equipment cost including (if applicable), any installation, other related costs and estimated sales or use tax. The Lease Payments will
      be adjusted proportionately upward or downward if the actual total cost of the Equipment or taxes is more or less than the estimate.  In that event, Lessee authorizes Lessor to adjust the Lease Payments by up to ten percent (10%).

     

    3.          DELIVERY AND ACCEPTANCE. Lessee is responsible, at Lessee’s own cost and expense, to arrange for the delivery and
      installation of the Equipment (unless such costs are included in the cost of the Equipment to Lessor). Lessee agrees that the signing of the Delivery and Acceptance Certificate supplied by Lessor constitutes full acceptance of the Equipment and
      commencement of the Lease.

     

    
      4.         DISCLAIMER OF WARRANTIES. Lessee acknowledges that Lessor is not the manufacturer of the Equipment, nor the
        manufacturer’s or vendor’s agent. Nor is the vendor an agent of Lessor. Lessee has selected the Equipment based upon Lessee’s own judgment. Lessee disclaims any reliance upon any statements or representations made by Lessor and acknowledges that
        representations made by Vendor, unless specifically contained in this Agreement, shall not be binding upon Lessor. LESSOR HAS NOT MADE AND DOES NOT MAKE ANY REPRESENTATION OR WARRANTY OF ANY KIND, WHETHER DIRECT OR INDIRECT, EXPRESS OR IMPLIED,
        WITH RESPECT TO THE SUITABILITY, MATERIALS, DURABILITY, DESIGN, WORKMANSHIP, OPERATION OR CONDITION OF THE EQUIPMENT OR ANY PART THEREOF, ITS MERCHANTABILITY, FITNESS FOR USE FOR THE PARTICULAR PURPOSES AND USES OF LESSEE. Lessor shall not be
        liable to lessee for any loss, damage or expense of any kind or nature caused directly or indirectly by the Equipment or for any damages based on strict or absolute tort liability or lessor’s or vendor’s negligence, or due to the repair, service or
        adjustment of the Equipment, or by any delay or failure to provide any maintenance, repair, service or adjustment, or by any interruption of service, or for any loss of business however caused. NO DEFECT OR UNFITNESS OF THE EQUIPMENT OR THE FACT
        THAT THE EQUIPMENT SHALL NOT OPERATE OR THAT IT SHALL OPERATE IMPROPERLY SHALL RELIEVE LESSEE OF ANY OBLIGATION UNDER THE LEASE.

    

     

    5.           TITLE. PERSONAL PROPERTY, LOCATION AND INSPECTION. Lessor owns the Equipment and Lessee has the right to use the
      Equipment for the full Lease term provided Lessee complies with the terms and conditions of this Agreement and the Lease. Lessee will keep and use the Equipment only at the Equipment Location shown on the applicable Schedule. Although the Equipment
      may become attached to real estate, it remains personal property and Lessee agrees not to permit a lien to be placed upon the Equipment or to remove the Equipment from the Equipment Location without Lessor’s prior written consent. The Equipment is
      removable from and is not essential to the premises at which the Equipment is located.  If Lessor feels it is necessary, Lessee agrees to provide Lessor with waivers of interest or liens, from anyone claiming any interest in the real estate on which
      any item of Equipment is located. Lessor also  has the right, at reasonable times, to inspect the Equipment.  If the Lessee elects in writing  to return the Equipment at the end of term, the Lessor may enter the premises where the Equipment us
      located during normal business hours for  the purpose of showing and demonstrating the Equipment to prospective purchasers or for an appraisal of the Equipment. The Lessee shall provide adequate electrical, power, lighting, heat, water and personnel
      sufficient to allow for normal demonstrations of the Equipment to potential buyers.

     

    

    
      

      
        

      

    

    
      6.           MAINTENANCE. Lessee shall use the Equipment in a careful and lawful manner; comply with and conform to all laws
        Ordinances and regulations  related to the possession, use and maintenance of the Equipment. and maintain the Equipment so that it is certified for use by all regulatory agencies where  applicable. Lessee shall use the Equipment exclusively for
        agricultural, business or commercial purposes. Lessee is required, at Lessee’s own cost and expense, to keep the Equipment in good repair, condition and working order, except for ordinary wear and tear, and Lessee will supply all parts and
        servicing required.  All replacement parts, attachments, accessories, upgrades and modifications; used or installed and repairs made to the Equipment will become Lessor’s property. Lessee may, with Lessor’s prior written consent, make modifications
        to the Equipment; so long as such modifications do not reduce the value or usefulness of the Equipment or result in the loss of any warranty or any certification necessary for the maintenance of the Equipment.  Lessee shall enter into and maintain
        in  force, for the term of the lease, a maintenance contract with the manufacturer of the equipment or with an approved service provider satisfactory to Lessor and take an actions necessary to cause the equipment to remain eligible for the
        manufacturer’s maintenance program. This includes all replacements, upgrades, enhancements and software related to the Equipment that are required by the manufacturer for such eligibility. Lessee shall provide Lessor with a copy of the maintenance
        contract and maintenance log upon request. Subject to Lessor’s prior approval, and as long as Lessee demonstrates the capabilities that it has the adequate skills and expertise Lessee may elect to maintain certain types of equipment with its own
        personnel. LESSEE ACKNOWLEDGES THAT LESSOR IS NOT RESPONSIBLE FOR PROVIDING ANY REQUIRED MAINTENANCE AND/OR SERVICE FOR THE EQUIPMENT. LESSEE WILL MAKE ALL CLAIMS FOR .SERVICE AND/OR MAINTENANCE SOLELY TO THE SUPPLIER AND/OR MANUFACTURER AND SUCH
        CLA.IMS WILL NOT AFFECT LESSEE’S OBLIGATION TO MAKE ALL REQUIRED LEASE PAYMENTS.

    

     

    7.        ASSIGNMENT. LESSEE AGREES NOT TO TRANSFER, SELL, SUBLEASE, ASSIGN, PLEDGE OR
      ENCUMBER EITHER THE EQUIPMENT OR ANY OF LESSEE’S RIGHTS UNDER THIS AGREEMENT OR ANY LEASE OR OTHERWISE PERMIT THE EQUIPMENT TO BE OPERATED OR USED BY, OR COME INTO OR REMAIN IN THE POSSESSION OF ANYONE BUT LESSEE; WITHOUT LESSOR’S PRIOR WRITTEN
      CONSENT. No sale, assignment, transfer or sublease, whether authorized herein or  in violation of the terms hereof, shall relieve Lessee of its obligations, and
      Lessee shall remain primarily liable, hereunder and under each Lease. Lessee agrees that Lessor may sell, assign or transfer all or any part of any Lease and if Lessor does, the new owner will have the same rights and benefits that lessor now has and
      will not have to perform any of Lessor’s obligations and that the rights of the new owner will not be subject to any claims, defenses, or setoffs that Lessee may have against Lessor. Any such assignment, sale or transfer of a Lease or the Equipment
      will not relieve Lessor of Lessor’s obligations to Lessee under the Lease. Subject to the foregoing, this Agreement inures to the benefit of and is binding upon the successors and assigns of the parties hereto and thereto, as the case may be (and,
      without limiting the foregoing, shall bind all persons who become a “new debtor” to this Agreement and any Lease, as defined in Section 9-203(e) of Revised Article 9 of the UCC).

     

    8.          PURCHASE. RETURN AND RENEWAL OF EQUIPMENT. So long as no default or event of default shall have occurred and be
      continuing and the Lessee shall have given Lessor written notice to Lessor at least one hundred eighty (180) days, but not more than two hundred seventy (270) days prior to the expiration of the initial term or any renewal of any Lease, Lessee shall
      advise Lessor of Lessee’s intention to (i) purchase all but not less than all of the Equipment for the then fair market value in use, in place plus applicable taxes; (ii) renew the lease on a month to month basis at the same rent payable in monthly
      installments in the same amount and due on the same date as during the initial term; or (iii) return the Equipment to Lessor at the end of the initial term or any renewal of such Lease. If Lessee falls to so notify lessor, or having notified Lessor,
      Lessee fails to return the Equipment as provided herein, the Lease shall renew for an additional term of four (4) months, and Lessee agrees to continue to make lease payments at the same monthly lease payment as set forth in this Lease, subject to
      the right of either party to terminate any renewal upon one hundred twenty (120) days written notice, in which case Lessee will immediately deliver the Equipment to Lessor as stated in this paragraph. Provided Lessee has given such timely notice to
      return the equipment, Lessee shall return all, but not less than all, of the Equipment. to any location within the continental United States as designated by Lessor. The Lessee must prepare the Equipment for shipping according to the manufacturer’s
      instructions using approved packaging material and shall bear all risk of damage or loss until the Equipment is returned to us at the designated location. All costs and expenses associated with the packaging, shipping, delivery and inspection of the
      returned Equipment shall be paid by Lessee, including any cost Lessor incurs for deinstallation of alterations to the Equipment. Lessee shall be liable for all damage to the Equipment in excess of reasonable wear and tear.

     

    
      9.          LOSS OR DAMAGE. Lessee assumes and shall bear the entire risk of loss or destruction of, or damage to  the Equipment from any cause whatsoever, whether or not insured. No such loss or damage relieves Lessee from any obligation under a Lease. Lessee agrees to promptly notify
        Lessor in writing of any loss or destruction or damage to the Equipment and Lessee will. at Lessor’s option, (a) repair the Equipment to good condition and working order, (b) replace the Equipment with like Equipment in good repair, condition and
        working order, acceptable to  Lessor and transfer clear title to such replacement  Equipment to Lessor, such Equipment shall be subject to the Lease and be deemed the Equipment. or (c) pay to Lessor the present value of the total of all unpaid
        Lease Payments for the full Lease term plus the greater of either (i) the estimated fair market value of the Equipment at the end of the originally scheduled Lease term or (ii) Lessor’s residual position (as determined by Lessor in  its sole 
        discretion), all  discounted  at a rate equal to, unless set forth in a separate Schedule, one percent (1.0%) per annum whereupon the Lease shall terminate. All proceeds of insurance received by Lessor as a result of such loss or damage will be 
        applied, where applicable, toward the replacement  or repair of the Equipment or the payment of Lessee’s obligations.

    

     

    10.        INDEMNITY. lessee assumes liability for and agrees to indemnify, defend (if requested by Lessor) and hold harmless
      Lessor and its employees and agents from and against any and all liabilities, losses, damages, penalties, claims, suits and repossession or return of the Equipment, actions, costs and expenses, including court costs and Lessor’s attorneys fees, of
      whatever kind imposed or incurred by or asserted against Lessor (collectively, “Claims”), whether based on a theory of strict liability or otherwise, caused by or related to (a) the manufacture, selection, purchase, installation, ownership, use
      lease, possession, delivery, operation, storage, repair, disposition or return of tile Equipment, and if due to the action or inaction of Lessee or (b) any defects in the Equipment.  Lessee agrees to reimburse Lessor for and to defend Lessor against
      any Claims. This indemnity will continue even after the termination or expiration of a Lease and repossession or return of the Equipment.

     

    
      

      
        

      

    

    11.         TAXES.   Lessee agrees to pay all license and registration fees, sale and use
      taxes, personal property taxes and all other taxes and charges, relating to the ownership, leasing, rental, sale, purchase, possession or use of the Equipment as part of the Lease Payment or as billed by Lessor. Lessee agrees that if Lessor pays any
      taxes or charges on Lessee’s behalf, Lessee will reimburse Lessor for all such payments and will pay Lessor interest and a late charge (as calculated in Section 14) on such payments with the next lease Payment, plus reasonable costs incurred in
      collecting and administering any taxes, assessments or fees and remitting them to the appropriate authorities. Lessor shall not be obligated to contest any valuation of a tax imposed oil the Equipment or on this Agreement or any Lease.

    

    

    12.        INSURANCE.   During the term of a Lease, Lessee will keep the Equipment insured, at its sole cost and expense, against
      all risks of a loss or damage  in  an amount  not less than the replacement cost of the Equipment without co-insurance other than by way of customary an  reasonable  deductibles.   The  insurance company shall be acceptable to Lessor in all respects
      in Lessor’s sole discretion. Lessee well also obtain and maintain for the term of a Lease, comprehensive public liability insurance and such policy shall provide Lessor With thirty (30) days prior written notice of cancellation of termination of such
      policy covering both personal injury and property damage m an amount acceptable to Lessor. Lessor will be named the lender loss payee on the property insurance under a separate lender’s loss payable clause and named as an additional insured on the
      public liability insurance, as its interests may appear. Lessee will pay all premiums for such insurance and Lessee shall deliver proof of insurance coverage to Lessor satisfactory to Lessor. If Lessee does not provide such insurance, Lessee agrees
      that Lessor has the right, but not the obligation, to obtain such insurance and charge Lessee for all costs. lessee irrevocably appoints Lessor as Lessee’s attorney-in-fact to make claims for, receive payment of, and execute and endorse all
      documents, checks or drafts in payment for loss or damage under any said insurance policies.

     

    
      13.       DEFAULT. An “Event of Default” shall be deemed to exist if any of the following occurs: (a) Lessee fails to pay any
        Lease Payment or other sum due hereunder within fifteen (15) days of when due; (b) Lessee or any guarantor or surety of Lessee’s obligations, if any, fails to observe or perform any other term, covenant or condition of this Agreement, any Lease,
        any Surety Agreement or any other agreement with Lessor and such failure continues for thirty (30) days after notice thereof of Lessor; (c) Lessee or any guarantor  or surety of Lessee’s obligations, if any, dies, or becomes insolvent or unable to
        pay its debts when due; stops doing business as a  going concern; terminates its organizational existence, merges, consolidates, transfers, sells or otherwise disposes of a majority of its assets or a majority of its liquid assets, provided that
        (i) Lessee may merge with any other entity so long as Lessee is the surviving  entity, (ii) any guarantor  or  surety  of Lessee’s obligations may merge with any  other entity so long as such guarantor or surety  is the surviving entity, and any
        such guarantor of surety may merge with and into a Qualified Subsidiary (as defined below), and (iii) Lessee may transfer, sell or otherwise dispose of its assets to a Qualified Subsidiary; (d) a writ of attachment or execution is levied upon the
        Equipment unless released,  satisfied or stayed within thirty (30) days of such levy; (e) the filing by or against Lessee or any guarantor  or surety of lessee’s obligations, if any, of a petition under the Bankruptcy Code or under any insolvency
        law provided for relief of debtors unless with respect to a petition filed against Lessee, it is dismissed within forty-five (45) days; (f) the voluntary or involuntary making of an assignment  for  the  benefit of creditors, the appointment  of a
        receiver or trustee for Lessee or any guarantor or surety of Lessee’s obligations, if any, or for their respective assets, or the commencement of any formal or informal proceeding for dissolution, liquidation, settlement  of claims against or
        winding up of the affairs of Lessee or any guarantor or surety of Lessee’s obligations, if any; (g) there is a change in the ownership or control of Lessee or any guarantor or surety of Lessee’s obligations, if any, or a Change of Control (as
        defined below); (h) any representation, warranty or signature herein or made by Lessee or any guarantor or surety of Lessee’s obligations, if any, in any document delivered to Lessor in connection with this Agreement or any Lease shall be false or
        misleading in any material respect when made; (i) Lessee or any guarantor or surety of Lessee’s obligations, if any, is in default under any other agreement with Lessor or any affiliate of Lessor (including without limitation TD Bank, N.A. and its
        related affiliates of The Toronto-Dominion Bank) or any other person; O) Lessee or any guarantor or surety of Lessee’s obligations, if any, engages in any criminal conduct that subjects the Equipment to seizure and/or confiscation by governmental 
        authorities; (k) Lessee uses or permits use of the Equipment in a fashion not covered by the required insurance policies; (I) without the prior written consent of Lessor, Lessee attempts to remove, sell, transfer, encumber, part with possession, or
        sublet any item of Equipment; (m) Lessee or any guarantor or surety of Lessee’s obligations, if any, suffers a material adverse change in its financial condition, business, operations or assets and,   as a result, Lessor deems itself or any of its
        Equipment to be insecure;; or (n) any default under any guaranty agreement or surety agreement executed in connection with this Agreement or any Lease, if any. As used therein: (i) “Change of Control” means (y) the acquisition  of ownership,
        directly or indirectly,  beneficially or of record, by any person or group (within the  meaning  of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on the date hereof), of equity interests representing more than
        40% of the aggregate ordinary voting power represented by the issued and outstanding equity interests of Lessee, or (z) the acquisition of direct or indirect control by any person or group of the power to direct or cause the direction of the
        management or policies of Lessee, whether through the ability to exercise voting power, by contract or otherwise; and (ii) “Qualified Subsidiary” means a wholly-owned domestic subsidiary of Lessee that (y) satisfies Lessor’s “know your customer”
        and other regulatory requirements, and (z) executes a Surety Agreement in form and substance satisfactory to Lessor to guarantee payment and performance of all of Lessee’s obligations

    

     

    
      

      
        

      

    

    
      
        14.        REMEDIES. Lessor has the following remedies if an Event of
          Default should occur: (a) Lessor may cancel or terminate the Leases; (b) with notice to Lessee, declare the entire balance of the unpaid Lease Payments for the full term of all Leases plus the additional amount (as defined below) immediately due
          and payable, sue for and receive all Lease Payments and any other payments then accrued or accelerated under all Leases or any other agreement plus the greater of either (i) the estimated fair market value of the Equipment at the end of the
          originally scheduled term of all Leases or (ii) Lessor’s residual position (as determined by Lessor in its sole discretion), and all accelerated Lease Payments and the estimated fair market value of the Equipment or the Lessor’s residual position
          will be discounted to the date of the default at one percent (1.0%) per year, but only to the extent permitted by law, (c) charge Lessee interest on all monies due Lessor at the rate of twelve percent (12%) per annum from the date of default
          until paid, but in no event more than the maximum rate permitted by law; (d) charge lessee a return-check or non-sufficient funds charge (“NSF Charge”) to reimburse lessor for the time and expense incurred with respect to a check that is returned
          for any reason including non-sufficient or uncollected funds such NSF Charge is stipulated and liquidated Twenty Five Dollars ($25.00); (e) require that Lessee return the Equipment to Lessor and in the event Lessee fails to return the Equipment, peaceably enter upon the premises after reasonable notice with or without legal process where the Equipment Is located and repossess the Equipment; (f) apply any
          security deposit to any amounts owing from Lessee to lessor; and/or (g) setoff against any account maintained with Lessor or any affiliate of Lessor (including without limitation any direct or indirect subsidiary of TD Bank US Holding Company)
          any and all amounts owing from Lessee to Lessor hereunder or under any lease. Such return or repossession of the Equipment will not constitute a termination of the applicable Lease unless Lessor expressly notifies lessee in writing. In the event
          the Equipment is returned or repossessed by Lessor and unless Lessor has terminated the applicable lease, Lessor will sell or re-lease the Equipment to any
          persons with any terms Lessor determines, at one or more public or private sales, with or without notice to Lessee, and apply the net proceeds deducting the costs and expenses of such sales or re-lease, to Lessee’s obligations with Lessee
          remaining liable for any deficiency on the Leases and with any excess being retained by lessor. The credit for any sums to be received by Lessor from the Leases during the remaining portion of the lease Terms shall be discounted to the
          commencement date of such Leases at an annual rate equal to the implicit rate of interest with respect to such Lease. Lessee agrees that if notice of sale is required by law to be given, seven (7) days notice shall constitute reasonable notice.

      

    

     

    If an Event of Default should occur, lessee shall indemnify Lessor on demand against any loss, premium, penalty or expense incurred, directly or indirectly, in repaying funds raised to finance any part or all of the
      Equipment or in unwinding any swap, forward interest rate agreement, or other financial instrument relating in whole or in part to Lessor’s financing of the Equipment (including any interest, fees, penalties, breakage costs or other sums whatsoever
      paid or payable in connection therewith).

    

    

    Lessee is also required to pay (i) all costs and expenses incurred by Lessor in connection with the enforcement of any remedies, including all expenses incurred in connection with the return, or other recovery of any
      Equipment or other collateral, sale, re-lease or other disposition (including without limitation costs of transportation, possession, storage, refurbishing, advertising and broker’s fees), and all other pre-judgment and post-judgment enforcement
      related to  actions taken by Lessor, and/or any actions taken by Lessor in any bankruptcy case involving Lessee, this Equipment or other collateral, and (ii)
      reasonable attorneys’ fees (including consultation, drafting documents, sending notices or instituting, prosecuting or defending litigation or arbitration).

     

    Whenever any lease Payment is not made within ten (10) days of when due, Lessee agrees to pay lessor, within one month of the original due date, a late charge of three percent (3.0%) for each delayed payment, as
      compensation for Lessor’s internal operating expenses arising as a result of each delayed payment, but only to the extent permitted by law. This amount is payable in addition to all amounts payable by Lessee as a result of the exercise of any other
      remedies.

     

    Lessee agrees that any delay or failure to enforce Lessor’s rights under this Agreement or any Lease does not prevent Lessor from enforcing any- rights at a later time. No right or remedy referred to herein is intended
      to be exclusive, but each shall be cumulative and shall be in addition to any other remedy referred to above or otherwise available at law or in equity, and may be exercised concurrently or separately from time.to time. With respect to any exercise by Lessor of its right to recover and/or dispose of any Equipment or other collateral securing Lessee’s  obligations  under any  Lease, Lessee acknowledges
      and agrees that: (i)  Lessor shall have no obligation, subject to the requirements of commercial reasonableness, to clean up or otherwise prepare the Equipment or any other collateral for disposition; and (ii) Lessor may comply with any applicable
      state or federal law required in connection With the disposition of the Equipment  or  other collateral,  and  any actions  taken in  connection therewith  shall not be deemed to
      have adversely effected the commercial reasonableness of any disposition of such Equipment and/or other collateral.

     

    15.        SECURITY DEPOSIT/ADDITIONAL COLLATERAL. Lessor will retain any required security deposit to insure Lessee’s performance
      of Lessee’s obligations. Any security deposit is non-interest bearing. Lessor may apply any security deposit to cure any default by Lessee, in which event Lessee will
      promptly restore any amount so applied. If Lessee is not in default, any security deposit will be returned to Lessee at the termination  of a Lease.  In the event that lessee grants to any  affiliate of lessor  (including any direct or indirect
      subsidiary of TD Bank US Holding Company) a lien or security interest in any real or personal property. of lessee other than the Equipment, Lessee agrees that such lien or security interest shall, without further action, by Lessee also secure the
      Lease Payments and the Performance by Lessee of its obligations under the Lease and that such affiliate shall be deemed Lessor’s agent for the purpose of perfecting such lien or security interest in such additional collateral.

     

    

    16.       COSTS AND EXPENSES. Lessee shall reimburse Lessor, upon demand, for all reasonable costs and expenses incurred in
      connection with this Agreement or any Lease, including without limitation attorneys’ fees, processing fees, filing fees, overnight delivery costs, long distance. telephone charges, copying costs arid the cost of obtaining credit reports, certified
      articles of organization, good standing certificates, lien searches and UCC-1 title insurance.

     

    17.        REPRESENTATIONS AND WARRANTIES.   Lessee warrants and represents to Lessor that (a) the Equipment will be used for
      business purposes, and not for  personal, family or household purposes, (b) Lessee is an entity duly organized, validly existing and in good standing with the laws of the jurisdiction specified below Lessee’s signature, and the organizational number
      assigned to lessee in such jurisdiction, if any, is as specified below Lessee’s signature and Lessee (and each of its predecessors) as not, in the past five (5) years, changed its jurisdiction of formation, organizational structure or type, or any
      organizational number assigned by its jurisdiction of formation, (c) Lessee’s full and accurate legal name is as first provided above,  (d) Lessee has the power and capacity to enter into this Agreement, all documents related to the purchase of the
      Equipment and any other documents required to be delivered in connection herewith (collectively, the “Documents”), and (e) the Documents have been duly authorized, executed and delivered by Lessee and constitute valid, legal and binding agreements,
      enforceable in accordance with their terms, except to the extent that the enforcement of remedies herein or therein provided may be limited under applicable bankruptcy and insolvency laws.

     

    
      

      
        

      

    

    18.       FINANCIAL INFORMATION. (a) For so long as TD Equipment Finance, Inc. is Lessor under any Lease entered into pursuant to
      this Agreement, Lessee shall comply with all of the affirmative and negative covenants of the borrower, debtor or any guarantor or surety of Lessee’s obligations
      (including, without limitation, those regarding financial reporting and compliance with financial criteria) contained in any credit, loan, security, or other agreement for or relating to the financing of Lessee or any guarantor or surety of Lessee’s
      obligations (as such agreement may have been or is amended from time to time) which it has made or hereafter makes with TD Bank, N.A. or any other direct or indirect subsidiary of TD Bank US Holding Company other than TD Equipment Finance, Inc. as
      lender or creditor (or, if there is more than one such agreement, then that of the most recent date), with Lessee’s obligation hereunder to comply with all of such covenants continuing in full force and effect in favor of Lessor for the duration of
      the initial and any renewal term of any such Lease, notwithstanding, inter alia, (X) the termination or satisfaction of such agreement or the payment or satisfaction of the obligations owed under or secured
      by such agreement, (y) any term in such agreement which serves to relieve. the borrower, debtor or any guarantor or surety of Lessee’s obligations from its obligation to comply with such covenants upon such full or partial payment, termination or
      satisfaction, or (z) any term or provision of such agreement to similar effect or which would serve to reduce or eliminate the borrower’s, debtor’s or any guarantor or surety of Lessee’s obligation to comply with such covenants. Upon such Lessor’s
      request, Lessee promptly shall deliver to Lessor all financial statements, certificates of compliance and other documents specified in such covenants not previously
      delivered, or thereafter becoming due to be delivered, to the lender or creditor under such agreement.

     

    (b) In the event that there is no agreement of the kind described in Section 18(a) hereof then in existence or such agreement contains no affirmative and negative covenants regarding financial reporting and compliance
      with financial criteria, then at Lessor’s request, Lessee shall provide Lessor with (i) audited or reviewed (as required by Lessor) annual consolidated and
      consolidating financial statements, prepared in accordance with generally accepted accounting principles applied on a basis consistent with the most recent audited or reviewed, as applicable, financial statements provided to Lessor by Lessee,
      including balance sheets. income and cash flow statements, accompanied by the unqualified report thereon of an independent certified public accountant acceptable to Lessor; as soon as available, and in any event within

        120 days after the end of each of Lessee’s fiscal year; (ii) by April 15 of each calendar year, each guarantor’s, if any, annual financial statement for the immediately preceding calendar year and copies of such guarantor’s state and
      federal tax returns for the immediately preceding calendar year; (iii) such other reports and financial information as may be requested by Lessor and (iv) Lessee represents and warrants that any financial statements previously delivered to Lessor by
      Lessee or any guarantor and any financial statements delivered to Lessor pursuant preceding clauses (i) and (ii) are and will be complete and correct and fairly present the financial condition of the Lessee’s and guarantors as of the dates of such
      financial statements and the results of Lessee’s and guarantors’ operations and cash flows for the periods referred to therein in accordance with generally accepted accounting principles, consistently applied.

     

    
      (c) Lessee represents and warrants to Lessor that since the most recent submission of financial statements by Lessee and the guarantors to Lessor there has been no material adverse change in the financial condition or business of the Lessee or
        any guarantor.

    

     

    19.        UCC FILINGS. Lessee authorizes Lessor to file a financing statement with respect to the Equipment with or without
      Lessee’s signature where permitted by the UCC and grant Lessor the right to sign such financing statement on Lessee’s behalf. The filing of a financing statement is not to be construed as evidence that any security interest was intended to be
      created, but only to give public notice of Lessor’s ownership of the Equipment. If a Lease is deemed at any time to be one intended as security then (x) Lessee grants Lessor a first priority security interest in the Equipment together with all
      related software (embedded therein or otherwise) and general intangibles, and all additions, accessories, attachments and accessions thereto whether furnished by the supplier of the Equipment, all subleases, chattel paper, accounts and security
      deposits relating thereto, and any and all substitutions, replacements or exchanges for such item of Equipment, in each such case in which Lessee shall from time to time acquire an interest, and any and all proceeds (including insurance proceeds) of
      the Equipment and other collateral in and against which a security interest is granted hereunder and (y) notwithstanding any other provision hereof, the Lease is subject to the express condition that at no time shall lessee be obligated or be
      required to pay interest at a rate which could subject Lessor either to civil or to criminal penalty as a result of being in excess of the maximum rate which Lessee is permitted by law to contract or agree to pay. If by the terms of the Lease, Lessee at any time is required or obligated to pay interest at a rate in excess of such maximum allowable rate, the rate of interest under the Lease shall be
      deemed to be immediately reduced to such maximum allowable rate and the interest payable here under shall be computed at such maximum allowable rate, and the portion of all prior interest payments made in excess of such maximum allowable rate shall be applied and shall be deemed to be payment made in reduction of the amounts due under the Lease. Lessee will  promptly execute, or otherwise authenticate,
      and deliver to Lessor such further documents, instruments, assurances and other records, and take such further action as lessor from time to time may reasonably request in order to carry out the intent and purpose of this Agreement and to establish
      and protect the rights and remedies created or intended to be created in favor of lessor under the Documents (including without limitation (i) lien searches. and (ii) such UCC financing statements, fixture filings and waivers as reasonably may be
      required by Lessor in connection with any change in circumstances relating to Lessee, the Equipment or otherwise); provided, however, Lessee hereby authorizes Lessor to file any and all of the same without Lessee’s authentication, to the extent
      permitted by applicable law. Lessee shall provide written notice to Lessor not less than thirty (30) days prior to any contemplated change in the name, the jurisdiction of organization, or address of the chief executive office, of Lessee. 

     

    
      20.        NOTICE. Written notices will be deemed to have been given when delivered in person or if sent by certified mail,
        postage pre-paid return receipt requested, or by reliable nationally recognized overnight courier, addressed to the recipient at its address above or at any other address subsequently provided in writing.

    

     

    
      21.        UCC-ARTICLE 2A PROVISIONS. Lessee agrees that this Lease is a “finance lease” as that term is defined in Article 2A
        of the Uniform Commercial Code (“UCC”). Lessee acknowledges that Lessor has given Lessee the name of the Supplier of the Equipment for each Lease. Lessor hereby notifies Lessee that Lessee may have rights under the contract with the Supplier and
        Lessee may contact the Supplier for a description of any rights or warranties that Lessee may have under this supply contact. LESSEE ALSO WAIVES ANY AND ALL RIGHTS AND REMEDIES GRANTED LESSEE UNDER SECTIONS 2A-508 THROUGH 2A-522 OF THE UCC. 

    

     

    
      

      
        

      

    

    
      22.        CHOICE OF LAW. This Agreement and all Leases were made in the state of New Jersey; and they are to be performed in
        the state of New Jersey by reason of the Lease Payments Lessee is required to pay Lessor in state of New Jersey. This Agreement and all Leases shall in all respects be interpreted and all transactions subject to this Agreement and all rights and
        liabilities of the parties under this Agreement and all leases shall be determined and governed as to their validity, interpretation, enforcement and effect by the laws of the state of New Jersey except for local filing requirements. Lessee
        consents to and agrees personal jurisdiction over Lessee and subject matter jurisdiction over the Equipment shall reside with any state or federal court in the state of New Jersey solely at Lessor’s option with respect to any provision of this
        Agreement or any Lease.  Lessee also  waives Lessee’s  right to a trial by jury.

      

    

     

    23.        ENTIRE AGREEMENT: SEYERABILITY; WAIVERS. This Agreement and all Leases contain
      the entire agreement and understanding of the parties hereto. No agreements or understandings are binding on the parties unless set forth in writing and signed by the
      parties. Any provision of this Agreement or any Lease which for any reason may be held unenforceable in any jurisdiction shall, as to such jurisdiction. be ineffective without invalidating the remaining provisions of this Agreement and the Leases.

     

    
      24.         Patriot Act. (i) Lessee hereby represents, warrants and covenants to Lessor that (A) each Lessee Party is as of the
        Acceptance Date of each Lease Schedule, and will at all times thereafter remain, in compliance with the following (collectively, Anti Terrorism Law”): (1) the Trading with the Enemy Act, as amended, and each of the foreign assets control
        regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V. as amended) and any other enabling legislation or executive order relating thereto, (2) the USA Patriot Act (Title III of Pub. L. 107 56 (signed into law October
        26, 2001)); (3) Executive Order No. 13,224 of September 24, 2001, Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support Terrorism, 66 U.S. Fed. Reg. 49,079 (2001), as amended (“Executive Order No.
        13,224”), and (4) any statute, treaty, law (including common law), ordinance, regulation, rule, order, opinion, release, injunction, writ, decree or award of any governmental authority relating to terrorism or money laundering; (8) No Lessee Party
        nor any Affiliate of any Lessee Party, or to Lessee’s knowledge, any of its respective agents acting or benefiting in any capacity in connection with any transactions hereunder, is any of the following (each a “Blocked Person”): (i) a person that
        is listed in the annex to, or is otherwise subject to the provisions of, the Executive Order No. 13224: (ii) a person owned or controlled by, or acting for or on behalf of, any person that is listed in the annex to, or is otherwise subject to the
        provisions of. the Executive Order No. 13224; (iii) a person with which TD Bank, N.A. is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law; (iv) a person that commits, threatens or conspires to commit or
        supports “terrorism” as defined in the Executive Order No. 13224; (v) a person that is named as a “specially designated national” on the most current list published by the U.S. Treasury Department Office of Foreign Asset Control at its official
        website or any replacement website or other replacement official publication of such list; or (vi) a person who is affiliated with a person listed above and (C) no Lessee Party shall, directly or indirectly, make any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity,
        in order to obtain, retain or direct business or obtain any improper advantage,  in violation of  the United States Foreign Corrupt Practices Act  of 1977, as amended.   (ii)  If  and to the extent Lessor is subject to the requirements of the
        Patriot Act, Lessor hereby notifies the Lessee Parties that pursuant to the requirements of the Patriot Act, Lessor is required to obtain, verify and record information that identifies the Lessee Parties, which information includes the names and
        addresses of the Lessee Parties and other information that will allow Lessor to identify the Lessee Parties in accordance with the Patriot Act. 

    

     

    THIS AGREEMENT IS NOT BINDING UNTIL ACCEPTED BY LESSOR

    

    IN WITNESS WHEREOF, the undersigned parties have executed this Agreement as of the date first set forth above.

             

    
      	
              LESSEE:

            	PHOTRONICS, INC.	
               

            	
              LESSOR:

            	
              TD EQUIPMENT FINANCE, INC.

            
	
               

            	
               

            	
               

            	 	 
	By:

            	/s/ John P. Jordan

            	
               

            	By:	/s/
                Alison L. Sauter
	
               

            	
               

            	
               

            	 	 
	Name:

            	
              John P. Jordan

            	
               

            	Name:	Alison
                L. Sauter
	 	 	 	 	 
	Title:

            	
              Executive Vice President and 

              

            	 	Title:	Senior
                Manager
	 	Chief Financial Officer	 	 

    

    

    

    

    
      Jurisdiction of Organization: Connecticut

      
        	Organizational Number:	
                0036597

              
	Chief Executive Office:

              	
                15 Secor Road, Brookfield, CT

              

      

      
        06804Exhibit 10.39

    

     

    

    
      Fixed Asset Loan Contract

       

      

      Contract No.: J.H.S. FCGZGDHT2020001

       

      

      Borrower (Party A): Hefei Photronics Co., Ltd.

        

      

      Domicile: R1606, Building F3, Innovative Industrial Park Phase II, No.2800, Chuangxin Avenue, High- tech Development District, Hefei

       

      

      Postal code: 230000

       

      

      Legal representative (person in charge): Peter Scott Kirlin

       

      

      	
              Fax:

            	
              Tel: 0551-65126615

            

       

      

      Lender (Party B): China Construction Bank Corporation Hefei Shushan Branch

       

      

      Domicile: Liyuan Building E, No.398, Huanhu Road East, Shushan District, Hefei City

       

      

      Postal code: 230011

       

      

      Person in charge: Shi Tao

       

      

      	
              Fax:

            	
              Tel: 0551-65816387

            	
              [seal; text cut off]

            

      

      

      [seal; text cut off]

       

      

      
        
          

      

      Whereas, Party A applies for a loan to Party B for the construction of “Hefei Photronics Co., Ltd., 10.5 generation plant new project,” Party B agrees to issue the loan to Party A. In accordance
        with the relevant regulations and rules, Party A and Party B consent to execute and abide by the following contract through negotiation and consultation.

       

      Article 1. Amount of borrowing

       

      The amount that Party A borrows from Party B is RMB (in words) two hundred million.

       

      Article 2. Purpose of the loan and source of repayment

       

      Party A shall use the loan for fixed asset investment; without the written consent of Party B, Party A may not alter the purpose of the loan.

       

      

      See attachment 1, “Basic information about the project and loan,” for information about the real estate invested with the loan hereunder (hereinafter referred to as “project) and specific purpose
        of the loan, and source of repayment.

       

      Article 3 Period of loan

       

      The period of loan agreed herein is six years, from October 1, 2020, to September 30, 2026.

       

      In case of any inconsistency between the starting date of the loan period hereunder and the loan transfer voucher (receipt of borrowing, same hereunder), the actual date of loaning indicated on the
        loan transfer voucher for the first-time issuance shall prevail, and the expiry date of the loan agreed in paragraph 1 hereof shall be adjusted accordingly.

       

      

      The loan transfer voucher is a part of the contract hereof, and has equal legal effects to this contract.

       

      Article 4. Loan interest rate, penalty interest rate and interest calculation and settlement

       

      	 	1.	
              Loan interest rate

            

       

      The loan interest rate hereunder is an annual interest rate, subject to type (4):

       

      
        (1) Fixed interest rate, namely blank %, which remains unchanged during the period of loan;

         

        

      

      (2) Fixed interest rate, namely LPR interest rate blank (select “plus” or “minus”) base point (1 base point= 0.01%, accurate to 0.01 base point), which remains unchanged during the period of loan;

       

      

      (3) Fixed interest rate, namely value date benchmark interest rate blank (select “up” or “down”) by blank %, which remains unchanged during the period of loan;

       

      

      (4) Floating interest rate, namely LPR minus (select “plus” or “minus”) 45 base points (1 base point= 0.01%, accurate to 0.01 base point); the LPR for the current working day and
        the above plus/minus base points shall be adjusted based on the interest rate once every twelve months from the value date to the day of full repayment of the principal and interest hereunder. The day for interest adjustment is the
        corresponding day of the value date in the current month of adjustment; if there is no corresponding day of the value date, the last day of the current month shall be deemed as the day for interest adjustment.

       

      

      
        
          

      

      (5) Floating interest rate, namely value date benchmark interest rate blank (select “up” or “down”) by blank %; the benchmark interest rate of the current working day and the above increase/decrease
        percentage shall be adjusted based on the interest rate once every blank months from the value date to the day of full repayment of the principal and interest hereunder. The day for interest adjustment is the corresponding day of the value
        date in the current month of adjustment; if there is no corresponding day of the value date, the last day of the current month shall be deemed as the day for interest adjustment.

       

      

      
        (6) Blank

      

       

      	

            	2.	
              Penalty interest rate

            

       

      (1) If Party A fails to use the loan in line with the purpose stated herein, the penalty interest rate equals to loan interest rate plus 100%; if the loan interest rate is adjusted in
        accordance with the paragraph 1 (4) or (5) of the article hereof, the penalty interest rate shall be adjusted accordingly in light of the adjusted loan interest rate and said degree of increase hereunder.

       

      

      (2) The penalty interest rate for loan delinquency hereunder is the loan interest rate plus 50%; if the loan interest rate is adjusted in accordance with the paragraph 1 (4) or (5) of the
        article hereof, the penalty interest rate shall be adjusted accordingly in light of the adjusted loan interest rate and said degree of increase hereunder.

       

      

      (3) The penalty interest and compound interest shall be calculated according to the severer circumstance of the loan delinquency or misappropriation if they have occurred at the same time.

       

      

      3.    The value date hereof refers to the date when the loan issued for the first time hereunder is transferred to the loan account designated in Article 6 of this contract (hereinafter referred to
        as “loan account”). The LPR hereunder is determined in line with item (4):

       

      

      (1)  For the initial issuance of loan under this contract, the LPR refers to the one-year lending market- quoted interest rate (1Y LPR) of the national inter-bank borrowing center on the previous
        working date prior to the effective date of this contract; if the loan interest rate is adjusted according the aforementioned provisions, LPR interest rate is the one-year lending market-quoted interest rate (1Y LPR) of the national inter-bank
        borrowing center on the previous working day of the day of adjustment.

       

      

      (2)  For the initial issuance of loan under this contract, the LPR refers to the one-year lending market- quoted interest rate (1Y LPR) of the national inter-bank borrowing center on the previous
        working day prior to the value date; if the loan interest rate is adjusted according the aforementioned provisions, LPR interest rate is the one-year lending market-quoted interest rate (1Y LPR) of the national inter-bank borrowing center on the
        previous working day of the day of adjustment.

       

      

      (3)  For the initial issuance of loan under this contract, the LPR refers to the market-quoted interest rate for five-year or above loans (5Y LPR) of the national inter-bank borrowing center on the
        previous working day prior to the effective date of this contract; if the loan interest rate is adjusted according the aforementioned provisions, LPR interest rate is the market-quoted interest rate for five-year or above loans (5Y LPR) of the
        national inter-bank borrowing center on the previous working day of the day of adjustment.

       

      

      
        
          

      

      (4)  For the initial issuance of loan under this contract, the LPR refers to the market-quoted interest rate for five-year or above loans (5Y LPR) of the national inter-bank borrowing center on the
        previous working day prior to the value date; if the loan interest rate is adjusted according the aforementioned provisions, LPR interest rate is the market-quoted interest rate for five-year or above loans (5Y LPR) of the national inter-bank
        borrowing center on the previous working day of the day of adjustment.

       

      

      Upon the first issuance of loan hereunder, the benchmark interest rate refers to the loan interest rate announced by the People’s Bank of China for the current period and for the same grade;
        thereafter, if the loan interest rate is adjusted as agreed above, the benchmark interest rate refers to the loan interest rate announced by the People’s Bank of China for the current period and for the same grade on the day of adjustment; if the
        People’s Bank of China no longer announces the interest rate for the current period and for the same grade, the benchmark interest rate denotes the loan interest rate for the current period and for the same grade recognized by the interbank or
        accepted generally on the day of adjustment, or the alternative interest rate designated by the People’s Bank of China, unless otherwise stipulated by both parties.

       

      

      4.    The loan interest shall accrue from the day when the loan is transferred to the loan account. The loan interest hereunder is calculated on a daily basis, with the daily interest rate equal to
        the annual interest rate/360. If Party A fails to pay the interest in line with the day of interest settlement agreed in the contract, compound interests would be charged from the next day.

       

      

      	

            	5.	
              Interest settlement

            

       

      (1) For loan subject to the fixed interest rate, the interest shall be calculated in line with the agreed interest rate at the time of interest settlement. Regarding the loan subject to the
        floating interest rate, the interest shall be calculated in line with the interest rate determined for each floating period; In case of multiple interest rate floats during the single interest settlement period, the interest for each floating
        period shall be calculated first, and the interest for each float period shall be added up on the day of interest settlement to work out the interest for the current interest settlement period.

       

      

      
        (2) The interest of the loan hereunder shall be settled in line with method 2:

      

       

      	

            	1.	
              Monthly settlement, on the 20th day of each month;

            

       

      	

            	2.	
              Quarterly settlement, on the 20th day of the last month of each quarter;

            

       

      	

            	3.	
              Blank

            

      

      

      Article 5. Issuance and payment of the loan

       

      1.    Preconditions for issuance of the loan

       

      Unless waived by Party B in whole or in part, only when the following conditions are satisfied continuously is Party B liable to issue the loan:

       

      

      1.    Party A has properly completed the approval, registration, delivery, insurance and other statutory procedures related to the loan hereunder;

       

      

      2.    If a guarantee is created for this contract, the guarantee in conformity with the requirements of Party B has become and would remain effective;

       

      

      3.    Party A has opened an account for withdrawal and repayment in line with the requirements of Party B.

       

      

      
        
          

      

      4.    Party A does not have any of the default matters agreed in this contract, or any circumstance that may endanger the safety of Party B’s creditor rights as agreed herein;

       

      

      5.    Laws, regulations or competent departments do not prohibit or restrict Party B from issuing the loan hereunder;

       

      

      6.    The capital of the same proportion to the loan to be issued has been in place in full, and the actual progress of the project corresponds to the amount already invested;

       

      

      7.    The major financial indicators of Party A continuously satisfy the requirements of Attachment 2, “Restrictive terms on financial indicators”;

       

      

      8.    If the payment (disbursement) of a single installment satisfies any of following circumstances, Party A shall provide relevant materials to Party B prior to the issuance of the loan:

       

      

      (1)  The amount of a single installment paid (disbursed) exceeds 5% of the total investment of the project;

       

      

      
        (2)  The amount of a single installment paid (disbursed) exceeds RMB 5 million;

      

       

      
        (3)  Blank;

      

       

      
        (4)  Blank.

      

       

      Under any of the above circumstances, Party A shall provide the following materials to Party B:

       

      
        (1)  Loan transfer voucher sealed by Party A and payment settlement voucher sealed by Party A;

         

          

      

      (2)  Proof that the capital has been in place and about the circumstances of use (such as certificate about registered capital, statement of the capital account, invoice for use of the capital,
          payment voucher);

       

        

      (3)  Transaction materials related to said payment (including but not limited to commodity/labor contract or invoice, and other transaction materials that may prove the actual existence of the
        event related to the payment);

       

      

      
        (4)  Other materials required to be provided by Party B.

      

       

      9.    If the amount of a single payment (disbursement) does not conform to any of the circumstances listed in subparagraph 8 of this article, Party A shall provide Party B with the plan of use
        corresponding to the loan to be issued and other materials requested by Party B.

       

      

      
        10.  The materials provided by Party A to Party B shall comply with following requirements:

      

       

      	

            	(1)	
              legal, authentic, complete, accurate, valid;

            

       

      	

            	(2)	
              blank;

            

       

      	

            	(3)	
              blank;

            

       

      	

            	(4)	
              Other requirements put forward by Party B.

            

       

      
        11.  Miscellaneous conditions:

         

        

        

        Blank

      

       

      

      	

            	2.	
              Plan for fund use

            

       

      

      
        
          

      

      The plan for fund use is determined in line with the following method (3):

       

      
        	
                (1)

              	
                Plan for fund use as follows:

              	

              	

              
	

              	

              	

              
	

              	
                1. Mm/dd/yy,

              	
                amount________;

              
	

              	

              	

              	

              	

              
	

              	
                2. Mm/dd/yy,

              	
                amount________;

              	

              	
                [stamp:] This column is left blank

              
	

              	

              	

              	

              	

              
	

              	
                3. Mm/dd/yy,

              	
                amount________;

              	

              	

              
	

              	

              	

              	

              	

              
	

              	
                4. Mm/dd/yy,

              	
                amount________;

              	

              	

              
	

              	

              	

              	

              	

              
	

              	
                5. Mm/dd/yy,

              	
                amount________;

              	

              	
                [stamp:] This column is left blank

              
	

              	

              	

              	

              	

              
	

              	
                6. Mm/dd/yy,

              	
                amount________;

              	

              	

              
	

              	

              	

              	

              	

              
	
                (2)

              	
                Plan for fund use as follows:

              	

              	

              
	

              	

              	

              	

              
	

              	
                1. Mm/dd/yy,

              	
                amount________;

              	

              	

              
	

              	

              	

              	

              	

              
	

              	
                2. Mm/dd/yy,

              	
                amount________;

              	

              	
                [stamp:] This column is left blank

              
	

              	

              	

              	

              	

              
	

              	
                3. Mm/dd/yy,

              	
                amount________;

              	

              	

              
	

              	

              	

              	

              	

              
	

              	
                4. Mm/dd/yy,

              	
                amount________;

              	

              	

              
	

              	

              	

              	

              	

              
	

              	
                5. Mm/dd/yy,

              	
                amount________;

              	

              	
                [stamp:] This column is left blank

              
	

              	

              	

              	

              	

              
	

              	
                6. Mm/dd/yy,

              	
                amount________;

              	

              	

              

      

       

      (3)  Apply for use of the funds at any time in light of the actual requirement of the project.

       

      3.    Party A shall use the funds in line with the plan for fund use agreed in paragraph 2; unless agreed by Party B in writing, Party A may not advance, delay, split or cancel the fund use.

       

      

      Party A shall pay the loan commitment fee to Party B in line with the following provision:

       

      

      Blank

       

        

      The calculation formula for the loan commitment fee:

       

      

      Blank

       

      The loan commitment fee shall be paid by Blank [either of the following two items: (1) month (2) quarter]; Party A shall at latest pay the loan commitment fee for the previous Blank
        [either of the following two items: (1) month (2) quarter] within Blank working days at the start of each Blank [either of the following two items: (1) month (2) quarter].

       

      

      (2)  If Party A uses the fund by installments, the expiry date of the loan period shall still be determined in line with the provision of Article 3 hereof.

       

      

      
        (3)  Entrusted payment by Party B

      

       

      1.    As long as the single payment conforms to any of the circumstances listed in paragraph 1 subparagraph 8 of this article, Party A shall entrust Party B to pay the loan to the transaction counterparty of Party A.
        Party A may not pay directly the above loan to the transaction counterparty.

       

      

      
        
          

      

      2.    Under the mode of entrusted payment by Party B, Party B transfers the loan to the loan account, and then pays the loan directly from the loan account to the account of Party A’s transaction
        counterparty. Party A may not dispose of the loan by any means (including but not limited to transfer or disbursement).

       

      

      3.    Party A shall conduct a formal examination on the payment amount, time, object, method and the handling account in line with the materials provided by Party A. If Party B considers the above
        payment elements meet its requirements after the formal examination, Party B may pay the loan to Party A’s transaction counterparty.

       

      

      4.    The formal examination of the above payment elements by Party B does not mean that Party B confirms the authenticity and legality as well as compliance of the transaction, nor that Party B
        intervenes in the dispute between Part A and its transaction counterparty or the third party, or needs to assume the responsibilities and obligations of Party A. For all losses suffered by Party B due the act of the entrusted payment, Party A shall
        pay compensations.

       

      

      5.    Under the mode of entrusted payment by Party B, if the loan fund is unable to be paid successfully to the account of Party A’s transaction counterparty as a result of the wrong information
        provided by Party A or other causes, it shall be handled in line with following provisions:

       

      

      For all consequences incurred, including but not limited to all losses arising from unsuccessful payment of the loan fund or failure to pay timely to the account of Party A’s transaction
          counterparty, Party A shall pay compensations;

       

        

      Party A may not dispose of the above part of the loan fund in any way (including but not limited to transfer, withdrawal);

       

        

      Party A is liable to refurnish materials or modify the materials as required by Party B within two working days.

       

        

      6.    Any risk, responsibility or loss related to freezing or deduction or transfer of the loan fund by the competent authority after entry into the loan account shall be assumed by Party A. Party
        A shall compensate the losses of Party B as a result.

       

      

      (6) Any risk, responsibility or loss related to freezing or deduction or transfer of the loan fund by the competent authority after entry into the loan account shall be assumed by Party A. Party A
        shall compensate the losses of Party B as a result.

       

      

      Article 6. Use and supervision of the account

       

      	

            	1.	
              Loan account

            

       

      The loan account hereunder shall be determined in line with the following method (2):

       

      (1)  Within blank working days following the effective date of this contract and before the first issuance of the loan, Party A shall open a special loan account at Party B, which is used
        solely for the issuance and payment of all borrowings under this contract.

       

      

      
        (2)  Other account opened by Party A at Party B (account No.: 34050148880800001935

         

          

      

      
        
          

      

      	

            	2.	
              Repayment reserve account

            

       

      Within one working day following the effective date of this contract, Party A shall open a repayment reserve account at Party B, or use the existing account opened at Party B (account No.:
        34050148880800001935) as the repayment reserve account. The repayment reserve account shall satisfy following requirements:

       

      

      (1)  The income cash flow of the project or Party A (including but not limited to project income, other operating incomes of Part A, additional investments by Party A’s shareholders) shall be
        transferred to this account in line with the following proportion: 50%.

       

      

      
        (2) The average capital stock in the account shall meet following requirements:

        

        Blank;

         

          

         _____;

         

        

      

      _____.

       

      (3)  Party A shall ensure that the account balance is not lower than the amount payable for the current period on the previous working day of each principal repayment day/ or interest payment day;

       

      

      (4)  Without the consent of Party B, Party A may not dispose of the fund in the repayment reserve account by any means (including but not limited to transfer, disbursement).

       

      

      
        3. Party A has rights to supervise the following account opened by Party A at Party B:

         

        

        (1) Account No.: 34050148880800001935;

      

       

      

      (2) Account No.: 34050148880800001936;

       

      The supervision measures taken by Party B include but are not limited to:

       

      (1)  Party B has rights to take various measures to track the capital flows of the account, and Party A shall cooperate unconditionally and provide conveniences (including but not limited to
          capital statement of the account opened at other financial institutions as required by Party B);

       

      

      Without the consent of Party B, Party A may not dispose of the fund in any of the above accounts by any means (including but not limited to transfer, disbursement).

       

      Article 7. Repayment

       

      	

            	1.	
              Principle of repayment

            

       

      The repayment by Party A under this contract shall be made in line with following principles:

       

      

      Party B has rights to use the repayment of Party A firstly to pay various fees that should be assumed by Party A but have been paid upfront by Party B as greed herein, and to pay the costs for
        Party B to realize the creditor’s right; the remaining amount will be repaid in line with the principle of first repayment of the interest and then principal, and repayment of the principal and interest in one lump sum on the expiry date. However,
        for the loan where the principal is overdue for 90 days and still unpaid, loan where the interests are overdue for 90 days and still unpaid or loans provided for otherwise by regulations or rules, Party A shall make repayments in line with the
        principle of first repayment of the interest and then principal after having paid back the above fees.

       

      

      
        
          

      

      	

            	2.	
              Payment of interests

            

       

      Party A shall pay Party B the due interests on the day of interest settlement. The first payment of interests falls on the first interest settlement day after the issuance of the loan. The
        principal and the interest shall be paid all in one lump sum upon repayment for the last time.

       

      

      	

            	3.	
              Schedule for repayment of principal

            

       

      The schedule for repayment of principal is determined according to the following method (1):

       

      	

            	(1)	
              Schedule for repayment of principal as follows:

            

       

      	

            	1.	
              March 5, 2022, amount RMB 15 million;

            

       

      	

            	2.	
              September 5, 2022, amount RMB 15 million;

            

       

      	

            	3.	
              March 5, 2023, amount RMB 15 million;

            

       

      	

            	4.	
              September 5, 2023, amount RMB 15 million;

            

       

      	

            	5.	
              March 5, 2024, amount RMB 15 million;

            

       

      	

            	6.	
              September 5, 2024, amount RMB 25 million;

            

       

      	

            	7.	
              March 5, 2025, amount RMB 25 million;

            

       

      	

            	8.	
              September 5, 2025, amount RMB 25 million;

            

       

      	

            	9.	
              March 5, 2026, amount RMB 25 million;

            

       

      	

            	10.	
              September 30, 2026, amount RMB 25 million;

            

      

      

      	

            	(2)	
              This column is left blank

            

       

      	

            	4.	
              Method of repayment

            

       

      Party A shall prepare a sufficient amount that is payable for the current period in the repayment reserve account or other account opened by Party B prior to the date of repayment agreed in this
        contract, and transfer the fund voluntarily to repay the loan (Party B also has rights to deduct the fund from the account to repay the loan), or transfer funds from other accounts to repay the loan on the repayment date agreed herein.

       

      

      	

            	5.	
              Advanced repayment

            

       

      For advanced repayment of the principal, Party A shall submit a written application to Party B twelve working days in advance, and may repay the principal in whole or in part at an earlier time.

       

      

      For advanced repayment of the principal by Party A, the interest shall be calculated based on the actual number of days of fund use and the loan interest rate agreed herein.

       

      

      If Party B agrees Party A to repay the principal in advance, Party B has rights to collect compensation from Party A, the amount of which shall be determined in line with the following standard (2):

       

      

      
        
          

      

      1.    Amount of compensation = amount of principal repaid in advance x number of months advanced x 0.1%; the period less than one month shall be counted as one month;

      

      
        2.    This column is left blank.

      

       

      If Party A makes repayments by installments, and repays partial principal at an earlier time, the repayment will follow an inverse order of the plan of repayment. After the advanced repayment, the
        amount that has not been made shall be subject to a loan interest rate as agreed in this contract.

       

      Article 8. Rights and obligations of Party A

       

      	

            	1.	
              Rights of Party A

            

       

      
        (1)  Having rights to request Party B to issue the loan as stipulated in the contract;

      

       

      
        (2)  Having rights to use the loan in line with the purpose of use agreed in this contract;

      

       

      (3)  If in compliance with the conditions specified by Party B, having rights to apply for extension of the loan to Party B.

       

      

      (4)  Having rights to request Party B to keep confidential the relevant financial materials provided by Party A and commercial secrets about the production and operation, unless otherwise
        stipulated by laws and rules, required by the competent authority or agreed by both parties;

       

      

      
        (5)  Having rights to reject the collection of bribes by Party B and its staff, and regarding the above acts or Party B’s acts in violation of national laws and regulations about credit loan interest rate and service
          charges, having rights to report to the relevant department.

         

        

      

      	

            	2.	
              Obligations of Party A

            

       

      (1)  Party A shall withdraw the fund and repay in full the principal and interests of the loan in accordance with the provisions of this contract, and assume various fees agreed herein;

       

      

      (2)  Party A shall, as requested by Party B, provide relevant financial and accounting materials, production and operation materials and other materials, including but not limited to providing
        Party B with the balance sheet of the end of the quarter, profit and loss statement as of the end of the quarter (income and expenditure statement for public institutions) within thirty-five working days at the end of each quarter, and
        provide in a timely manner the current-year cash-flow statement at the end of the year, and ensure that the materials provided are legal, authentic, complete, accurate and valid, and that no false materials are provided nor major operation or
        financial facts concealed;

       

      

      (3)  If Party A has any major adverse event that affects its debt-paying capability or other circumstances endangering the creditor’s right of Party B, or changes the industrial and commercial
        registration items such as name, legal representative (person in charge), domicile, scope of business, registered capital or company (enterprise) articles of association, Party A shall notify Party B in writing within three days, and attach
        relevant materials after change.

       

      

      (4)  Party A shall use the loan for the purposes agreed in this contract, and may not squeeze, misappropriate or use the bank loan for transactions in violation of laws or regulations; shall
        cooperate and receive the inspection and supervision by Party B on its product and operation, financial activities, and use of the loan under this contract; may not illegally withdraw the funds, transfer the capital or use connected transactions to
        evade the debt of Party B; may not use the false contract with the connected party to discount or pledge the notes receivable without the actual transaction background or the accounts receivable or other creditor’s rights so as to elicit capital or
        credit authorization from the bank.

       

      

      
        
          

      

      (5)  If Party A uses the loan under this contract for production, manufacturing and engineering construction, Party A shall comply with the national provisions about environmental protection.

       

      

      (6)  Prior to full repayment of the loan principal and interest of Party B, Party A may not provide guarantee for a third person with the asset formed with the loan hereunder without the consent of
        Party B.

       

      

      (7)  Party A, if as group client, shall inform Party B in time of the connected transaction of the above 10% of Party A’s net asset, including, (1) connected relationship of various transaction
        parties; (2) transaction item and nature; (3) amount or corresponding percentage of the transaction; (4) pricing policy (including the transaction having no amount or only having a symbolic amount);

       

      

      (8)  Party A shall ensure that the proposed project is approved by the relevant governmental authority and does not have any circumstance in violation of laws or regulations, and that the capital
        or other raised funds are in place in full in line with the time and percentage specified; Party A shall ensure that the project capital proportional to the loan is in place in full and used in combination with the loan, and that the project is
        completed in line with the schedule.

       

      

      (9)  Prior to merger, split, stock transfer, outward investment, substantial increase of debt and financing and other major events, Party A shall obtain the written consent of Party B. However, the
        written consent of Party B does not affect Party B’s right to take remedial measures agreed in this contract when Party B considers that the above act may jeopardize the security of its creditor’s rights.

       

      

      (10) Party A shall, by a period of quarter [select either of the following: (1) month (2) quarter], report to Party B in summary the payment of loan on a regular basis. Party A may not at latest report to Party
        B in summary the payment of loan for the previous quarter [select either of the following: (1) month (2) quarter] within ten working days at the start of each quarter [select either of the following: (1) month (2) quarter].

       

      (11) Party A shall coordinate and cooperate with Party B’s inspection and supervision of the production, operation and financial activities of the
        project sponsor and the project construction and operation conditions, and request the project sponsor to cooperate with the above inspection and supervision by Party B.

       

      Article 9. Rights and obligations of Party B

       

      1.    Party B may request Party A to repay the loan principal, interest and fees as scheduled, manage and control the payment of the loan fund, monitor dynamically the income cash flow of the
        project and the overall cash flow of Party A, and exercise other rights agreed in this contract, as well as request Party A to fulfill its other obligations under this contract;

       

      

      
        2.    Party B shall issue the loan as specified in this contract, except the delay due to the cause of Party A or other causes that cannot be attributed to Party B;

      

      
        
          

      

      3.    Party B shall keep confidential the relevant financial materials and business secrets about the production and operation provided by Party A, unless otherwise stipulated by laws, regulations
        and rules, or otherwise required by the competent authority or otherwise agreed by both parties;

       

      

      
        4.    Party B may not provide bribes to Party A and its staff, or collect and receive bribes;

      

       

      
        5.    Party B may not have any dishonest act or act detrimental to the legal interests of Party A.

      

       

      Article 10. Default responsibilities and remedial measures in case of circumstances endangering Party B’s creditor’s right

       

      

      	

            	1.	
              Default circumstances and default responsibilities of Party B

            

       

      

      (1)  If Party B fails to issue the loan as stipulated in this contract without a reasonable cause, Party A may require Party B to continue issuing the loan in line with the stipulations hereof;

       

      

      (2)  If Party B charges any unjustified interest or fee from Party B in violation of the prohibitory provisions of national laws and regulations, Party A may require Party B to issue a refund.

       

      

      	

            	2.	
              Default circumstances of Party B

            

       

      
        (1)  Party A violates any provision of this contract or any statutory obligation;

      

       

      (2)  Party A indicates expressly or indicates by its act that it would not fulfill any obligation under this contract.

       

      

      	

            	3.	
              Circumstances that may endanger the creditor right of Party B

            

      

      

      (1)  Any of the following circumstances that Party B deems may jeopardize the security of the creditor’s right under this contract: Party A has contracting, trusteeship (takeover), leasing, reform
        through shareholding system, decrease of registered capital, investment, joint operation, combination, merger, acquisition and reconstruction, split, joint venture, equity transfer, financing by substantial increase of debt, (subject to)
        application for suspension of business for rectification, application for dissolution, subject to revocation, (subject to) application for bankruptcy, change of the controlling shareholder/actual controller, or major asset transfer, suspension of
        production, out of business, high penalty imposed by the competent authority, canceled registration, business license revoked, involvement in major legal dispute, production and operation with severe difficulty or deteriorated financial conditions,
        decline of credit status, or legal representative or main person-in charge unable to fulfill the duties normally;

       

      

      (2)  Any of the following circumstances that Party B deems may jeopardize the security of the creditor’s right under this contract: Party A fails to fulfill other due debts (including the due debts
        to institutions at various branches of China Construction Bank or other third party), transfers the property at a low price or gratis, reduces the debt of the third party, fails to exercise the creditor’s right or other rights, or provides
        guarantee for the third party; the financial indicators of Party A fail to continuously satisfy the requirements of attachment 2, “Restrictive terms on financial indicators”; Party A fails to pay the loan fund as agreed in this contract, or evades
        the entrusted payment of Party B by breaking the whole into parts; the progress of the project lags behind the schedule of fund use; the capital in any account of Party A (including but not limited to the repayment reserve account and other
        accounts supervised by Party B) has any abnormal fluctuation.

       

      

      
        
          

      

      (3)  The shareholder of Party A abuses the independent status of the company legal person or the limited responsibility of a shareholder to evade debts, which Party B considers may endanger the
        security of the creditor’s right under this contract;

       

      

      
        (4)  Any precondition for issuance of the loan specified herein is not satisfied continuously;

      

       

      (5)  The guarantor has any of the following circumstances that Party B deems may endanger the security of the creditor’s right under this contract:

       

      

      1.    The guarantor violates any provision of the guarantee contract, or the matter stated and guaranteed has any false, wrong or omitted information;

       

      

      2.   Occurrence of contracting, trusteeship (takeover), leasing, reform through shareholding system, decrease of registered capital, investment, joint operation, combination, merger, acquisition
        and reconstruction, split, joint venture, equity transfer, financing by substantial increase of debt, (subject to) application for suspension of business for rectification, application for dissolution, subject to revocation, (subject to)
        application for bankruptcy, change of the controlling shareholder/actual controller, or major asset transfer, suspension of production, out of business, high penalty imposed by the competent authority, canceled registration, business license
        revoked, involvement in major legal dispute, production and operation with severe difficulty or deteriorated financial conditions, decline of credit status, or legal representative or main person in charge unable to fulfill the duties normally,
        which may affect the capability of the guarantor to perform the guarantee;

       

      

      
        3.    Other circumstances resulting in loss or possible loss of the guarantee capability:

      

       

      (6)  Any of following circumstances about the mortgage or pledge that Party B deems may jeopardize the security of the creditor’s right under this contract:

       

      

      1.    Damage, loss or depreciation of the mortgaged or pledged property due to the act of a third person, national collection, confiscation, requisition, retrieval for free, demolition and relocation, change of market
        conditions, or any other cause;

       

      

      2.    Sealing up, detention, freezing, deduction, lien, auction, supervision by administrative authority, or dispute about ownership with respect to the mortgaged or pledged property;

       

      

      3.    The mortgagor or pledger violates any provision of the mortgage contract or pledge contract, and the matters guaranteed have any false, wrong or omitted information;

       

      

      
        4.    Other circumstances that may jeopardize the realization of the mortgage right or pledge right Party B;

      

       

      (7)  The guarantee is not established, not effective, invalid, canceled or dissolved, the guarantor breaches the agreement or indicates explicitly or indicates by its behavior that it is no longer fulfilling the
        guarantee responsibility, or the guarantor loses the guarantee capability in part or in whole, or there are other circumstances that the value of the collateral decreases, which in the opinion of Party B may endanger the security of the creditor’s
        right under this contract; or

       

      

      (8)  Other circumstances that Party B deems may endanger the security of the creditor’s right under this contract.

       

      

      
        4.    Remedial measures of Party B

      

       

      In the event of any circumstance specified in paragraph 2 or paragraph 3 of this article, Party B has rights to exercise any following right or rights:

       

      

      
        
          

      

      
        (1)  To stop issuing the loan;

         

        

      

      (2)  Declaring that the loan expires immediately, and requiring Party A to repay the principal, interest and fees for the debts already expired or not expired under this contract right away;

       

      

      (3)  If Party A fails to disburse the loan as specified in the contract, Party B may demand that Party A pay liquidated damages equivalent to blank % of the amount that has not been disbursed as stipulated, and
        prevent Party A from drawing on the remaining amount under this contract;

       

      

      (4)  If Party A fails to use the loan for the purpose agreed in this contract, regarding the part misappropriated by Party B, interests and compound interests would be charged at the penalty interest rate by the method
        of interest settlement agreed herein for the period from the day of failure to use the loan for the purpose stipulated herein to the day of full repayment of the principal and interest;

       

      

      (5)  In the event of overdue borrowing, for the principal borrowed and interest that Party A fails to pay back on time (including the principal borrowed and interest declared by Party B having expired at an earlier
        time in whole or in part), interests and compound interests would be charged at the penalty interest rate by the method of interest settlement agreed herein for the period from the expiry date to the day of full repayment of the principal and
        interest.

       

      

      In the event of overdue loan, compound interests would be charged at the interest rate by the method of interest settlement agreed herein for the interest Party A fails to pay on time.

       

      

      
        (6)  Other remedial measures, including but not limited to:

      

       

      1.    to deduct the corresponding amount in RMB or other currencies from the account opened by Party A in the system of China Construction Bank, without giving notice in advance;

       

      

      
        2.    to exercise the right of guarantee;

      

       

      3.    to require Party A to provide new guarantees consistent with the requirements of Party B for all debts under this contract;

       

      

      
        4.    to dissolve this contract.

      

       

      Article 11. Miscellaneous terms

       

      	

            	1.	
              Assumption of costs

            

       

      (1)  Costs incurred due to Party A’s violation of any provision herein (including but not limited to the actual litigation fee, arbitration fee, property preservation fee, travel fee, execution
        fee, evaluation fee, auction fee, notarization fee, service fee, announcement fee, attorney fee and other costs incurred due to Party A’s violation of the agreement) shall be borne by Party A;

       

      

      
        (2)  For other fees, Party A and Party B agree as follows:

         

        

        

        This column is left blank

         

          

      

      
        
          

      

      
        
          	

                
	

                
	

                

        

         

        

        2.    Use of Party A’s information

      

       

      Party A agrees that Party B may inquire about the credit status of Party B from the People’s Bank of China, and the credit database approved by the competent credit investigation department, or
        relevant unit and department, and agrees that Party B provides the information of Party A to the People’s Bank of China, and the credit database approved by the competent credit investigation department. Party A agrees that Party B may also use
        properly and disclose Party A’s information out of the need of the business.

       

      

      
        3.    Collection by announcement

      

       

      For the delayed repayment of the principal borrowed and interest or other default circumstances by Party A, Party B may report to the relevant department or unit, and may urge repayment by
        announcement on the news media.

       

      

      
        4.    Evidentiary effect of Party B

      

       

      Unless there is reliable and proven evidence to the contrary, the internal financial records of Party B about the principal, interest and repayment records, the documents and vouchers generated
        during the business processes of withdrawal, repayment and payment of interests by Party B which have been prepared or saved by Party B, and the records and vouchers about collection of repayment of the loan by Party B shall constitute proven
        evidences that may effectively demonstrate the debtor-creditor relationship between Party A and Party B. Party A may not raise an objection solely on the ground that the above records, documentations, documents or vouchers are unilaterally prepared
        or saved by Party B.

       

      

      
        5.    Reservation of right

      

       

      The rights of Party B hereunder do not affect or exclude any right that Party B is entitled to in line with the laws, regulations and other contracts. Any tolerance, grace, preference or delayed
        exercise of any right hereunder to the default or procrastination act shall not be deemed as a waiver of the rights and interests hereunder, nor as permission or recognition of any act in violation of this contract, and also shall not restrict,
        prohibit or hinder the continuous execution of such rights, or execution of its any other rights, and shall not cause Party B to assume obligations or responsibilities to Party A as a result.

       

      

      6.    Except the debt hereunder, if Party A still has other matured debts to Party B, Party B may deduct the fund in RMB or other currency in the account opened in China Construction Bank system to
        firstly pay off any matured debt, and Party A agrees without any objection.

       

      

      7.    In case of any change of the correspondence address or contact method of Party A, a written notice shall be given to Party B immediately, and any loss incurred due to failed timely
        notification shall be assumed by Party A.

       

      

      
        8.    Deduction of the amount receivable

         

        

      

      
        
          

      

      For all amounts payable by Party A under this contract, Party B may deduct the corresponding amount in RMB or other currencies from the account opened by Party A in the China Construction Bank
        system, and does not need to notify Party A in advance. If there is a need to go through the procedures for the settlement and sale of exchange or transaction of foreign exchanges, Party A is liable to assist Party B, with the exchange rate risks
        borne by Party A.

       

      

      
        9.    Method for settlement of dispute

      

       

      Any dispute arising from the implementation of this contract may be solved through negotiation; if no consensus is reached through negotiation, the dispute may be solved in line with method (1):

       

      

      
        (1)   to file a lawsuit to the people’s court at the place where the domicile of Party B is located.

      

       

      (2)  to submit the dispute to blank arbitration committee (place of arbitration: blank) for arbitration in line with the current effective arbitration rules at the time of
        application for arbitration. The ruling of the arbitration is final and binding on both parties.

       

      

      During the period of lawsuit or arbitration, the terms not in dispute in this contract shall continue to be implemented.

       

      

      
        10.  Conditions for the contract to take effect

      

       

      This effect enters into effect after signature and affixation with the official seal by Party A’s legal representative (person in charge) or authorized agent, and signature and affixation with the
        official seal by Party B’s person-in-charge or authorized agent.

       

      

      
        11.  This contract is executed in triplicate.

      

       

      
        12.  Other matters agreed

      

       

      (1)  Party A and Party B agree with the following provisions regarding the address for service of the various notices, agreements and documents about this contract, and legal consequences:

       

      

      
        1.    Address of service

      

       

      
        (1)  The service address confirmed effective by Party A:

      

       

      R1606, Building F3, Innovative Industrial Park Phase II, No.2800, Chuangxin Avenue, High- tech Development District, Hefei

       

        

      
        (2) The service address confirmed effective by Party B:

      

       

      Liyuan Building E, No.398, Huanhu Road East, Shushan District, Hefei City

       

      
        2.    Scope of application of the service address

      

       

      The above service address applies to the service of various notices, agreements and documents related to this contract, including but not limited to the service of various notices, agreements and
        other documents during the period of performance of the contract, and service of relevant files and legal instruments upon occurrence of disputes about the contract, as well as service of relevant files during the first instance, second instance,
        retrial and execution proceedings and other proceedings after the dispute enters the arbitration or civil litigation procedure.

       

      

      
        3.    Change of the service address

         

        

      

      
        
          

      

      (1)  If Party A needs to change the service address, Party A shall notify Party B in writing ten working days in advance, and the written notice shall be delivered the service address of
        Party B;

       

      

      
        (2)  If Party B needs to change the service address, Party B shall notify Party A by mail.

      

       

      (3)  If either party changes the address in the arbitration or civil lawsuit, the party shall also notify in writing the arbitration institution and the court.

       

      

      (4)  If either party fulfills the obligation of notification about the change of address in line with the above provision, the changed service address shall be deemed effective, otherwise the
        service address having been confirmed previously shall remain valid.

      

       

      

      
        4.    Legal consequences

      

       

      (1)  If either party provides or confirms an inaccurate service address, or fails to fulfill the notification obligation in a timely manner in line with the aforementioned method after alteration
        of the service address, and the party or its designated receiver refuses to sign to acknowledge the receipt, causing the notice, agreement, legal instrument and various documents to be unable to be received actually by that party or served by mail,
        the day of return of the document shall be deemed as the date of service; for direct service, the day when the server indicates the circumstance on the return receipt of service on site shall be deemed as the date of service.

       

      

      (2)  The arbitration institute and court may deliver the document by direct mail to the above service address and arbitration institute; even if the party concerned fails to receive the document
        mailed by the arbitration institute or court, it shall also be deemed having been served due to the above provision.

       

      

      2.    (1)  The prices and fees excluded in price under this contract refer to prices including the value added tax, unless otherwise stipulated by parties concerned.

       

      

      
        (2)  Invoice

      

       

      
        2.1  Party B will issue the invoice in line with the following provision (1):

      

       

      (1)  If Party A puts forward the requirement for issuance of the invoice, Party B shall issue the value added tax invoice for the current payment amount in line with laws after receiving the amount
        paid by Party A.

       

      

      
        (2)  Other provisions: this column is left blank

      

       

      
        2.2  Invoice information provided by Party A

      

       

      Company name (full name): Hefei Photronics Co., Ltd.

       

      

      Taxpayer identification No.: 91340100MA2PEQYY5T

       

      

      Bank account: 1302049809201778828

       

      

      Opening bank: China Industrial and Commercial Bank Corporation Hefei Keji branch

       

      Address: R1606, Building F3, Innovative Industrial Park Phase II, No.2800, Chuangxin Avenue,

       

      

      High-tech Development District, Hefei

       

      

      Tel: 0551-65126615

       

      

      
        
          

      

      2.3  If the invoice needs to be canceled or a red-letter invoice is issued, Party A shall provide timely assistance in line with the requirements of Party B. If an invoice cannot be canceled or a
        red-letter invoice cannot be issued due to the cause of Party A, Party A shall compensate all losses of Party B, including but not limited to the tax, surcharge, penalty or overdue fine.

       

      (3)  If Party A is an institute outside the territory of the People’s Republic of China, and the price and fees excluded in the price under this contract are entitled to tax preferences and need to
        go through tax filing in line with the laws, regulations, rules or relevant provisions of the related department; Party A shall provide adequate, accurate value-added tax preference filing materials to Party B in line with the requirement of Party
        B to assist Party B completing the taxation filing.”

       

      

      3.    Due to the deterioration of the credit status of Party A, including but not limited to occurrence of default situations by Party A as agreed herein, and occurrence of circumstances that may
        endanger the creditor’s right of Party B, Party A may, without giving an advanced notice, unilaterally adjust or revoke the relevant credit ceiling, and may unilaterally adjust the amount issued or refuse to issue the loan. Party A promises not to
        raise any objection regarding the above arrangement.

       

      

      Article 12. Recital clauses

       

      
        1.    Party A is fully aware of the business scope and authorization and privilege of Party B.

      

       

      2.    Party A has read all terms of this contract. On the request of Party A, Party B has explained the corresponding terms of this contract. Party A has completely understood and fully
        comprehended the contents of the terms herein and the corresponding legal consequences.

       

      

      3.   The signing by Party A and fulfillment of the obligations hereunder conform to the provisions of laws, administrative regulations, rules and Party A’s articles of association or internal
        organization documents, and Party A has obtained the approval of the internal competent institution of the company and/or the national competent authority.

       

      

      4.    Party A complies with the national requirements on the eligibility of the investment entity of the project and business qualification;

       

      

      5.    The project conforms to the relevant national policies about the industry, land, environmental protection and investment management, and Party A has gone through the legal management
        procedure of the project as required;

       

      

      6.    The investment project of Party A conforms to the national provisions related to the investment project capital system;

       

      

      
        7.    Party A and its controlling shareholder have good credit status, without major adverse records.

      

       

      8.    Party A states that at the time of execution of this contract, Party A and its major connected party in China do not have any act or circumstance in violation of the environmental and social
        risk management laws, regulations and rules, and promise to strengthen the environmental and social risk management of its own and its major connected party in China after the execution of this contract, strictly abide aby laws, regulations and
        rules about environmental and social risk management, and put an end to any hazard and relevant risks to the environment and society in the construction, production and operation activities (including but not limited to energy consumption,
        pollution, land, health, safety, resettlement of immigrants, ecological protection, energy conservation and emission reduction, climate change and other environmental and social problems). Party A acknowledge that Party B has rights to supervise
        the environmental and social risk management situation of Party A, and may require Party A to submit the environmental and social risks report. If Party A makes false statements or fails to fulfill the above promises, or Party A may cause
        environmental or social risks, Party B has rights to suspend granting the credit to Party A (including but not limited to refuse issuing the loan, providing financing, issuing the letter of guarantee or letter of credit or bank acceptance bill), or
        declare that the principal and interest of the creditor’s right (including but not limited to loan, financing, advanced payment that has or may be effected) expire at an earlier time, or take other remedial measures agreed herein or permitted by
        laws.

       

      [seal]

       

      

      
        
          

      

      
        	Party A (official seal):	

              
	

              	 
	[seal of Hefei Photronics Co., Ltd.]	

              

         

        

      

      
        	Legal representative (person in charge) or authorized agent (signature):	

              	

              
	

              	
                October 1, 2020

              

         

        

      

      
        	Party B (official seal):
	[seal of China Construction Bank Corporation Hefei Shushan Branch]

      

      

        

      
        	Person-in-charge or authorized agent (signature): [signature:] Xu Jun	

              	

              
	

              	
                October 1, 2020

              

      

      

      

      
        
          

      

      Attachment 1:

       

      

      Basic information about the project and loan

       

      	

            	1.	
              Project name: Hefei Photronics Co., Ltd., 10.5 generation plant new project

            

      

      

      	

            	2.	
              Total investment of the project:

            

      

      

      USD (amount in words) one hundred fifty-five million; unless an explicit written evidentiary document is provided by Party A and acknowledged by Party B, Party A may not claim an increase
        of the total investment amount of the project.

       

      

      	

            	3.	
              Location of the project: Hefei

            

      

      

      	

            	4.	
              Construction and operation period of the project:

            

      

      

      Construction period of one year, and operation for a long term.

       

      

      	

            	5.	
              Specific purpose of use of the loan under this contract:

            

      

      

      For Hefei Photronics Co., Ltd., 10.5 generation plant new project

       

      

      	

            	6.	
              Sources of repayment of the loan under this contract:

            

       

      (1)  The sources of repayment of the loan under this contract: operating income of the project, and other incomes and raised funds of Party A;

       

      

      (2)  Party A shall use the above sources of repayment to repay the loan under this contract in line with the following provision (time, frequency, method etc.):

       

      

      Make repayments in line with the plan agreed herein.

       

      

      Party A shall ensure the sources of repayment are true and that the cash flow for repayment is stable and sufficient.

       

      

      	

            	7.	
              Miscellaneous:

            

       

      

      
        
          

      

      Attachment 2:

      

      

      Restrictive terms on financial indicators

       

      The financial indicators of Party A shall continuously satisfy the following restrictions:

       

      

      1. Asset-liability ratio (total liability/total asset) no higher than 85%;

       

        

      2. Flow ratio (current asset/current liability) no lower than 0.5;

       

        

      3. No additional contingent liability.

       

        

      After notifying Party A blank working days in advance, Party B may revise the above restrictions.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00319-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00319-of-00352.parquet"}]]