Document:

Exhibit 10.2

 

INDEMNIFICATION AGREEMENT

 

     This Indemnification Agreement
(this “Agreement”) is entered into as of                               
by and between Qilian International Holding Group Limited, a Cayman Islands company (the “Company”), and the
undersigned, a director and/or an officer of the Company (“Indemnitee”), as applicable.

 

RECITALS

 

     The Board of Directors of
the Company (the “Board of Directors”) has determined that the ability to attract and retain highly competent
persons to serve the Company is essential to the best interests of the Company and its shareholders and that it is reasonable and
necessary for the Company to provide adequate protection to such persons against risks of claims and actions against them arising
out of their services to the corporation.

 

AGREEMENT

 

     In consideration of the premises
and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

 

A.    DEFINITIONS

 

The following defined terms shall have the respective
meanings below:

 

     Expenses include,
without limitation, damages, judgments, fines, penalties, settlements and costs, attorneys’ fees and disbursements and costs
of attachment or similar bond, investigations, and any other expenses paid or incurred in connection with investigating, defending,
being a witness in, participating in (including on appeal), or preparing for any of the foregoing in, any Proceeding.

 

     Indemnifiable Event
means any event or occurrence that takes place either before or after the execution of this Agreement, related to the fact that
Indemnitee is or was a director or an officer of the Company, or is or was serving at the request of the Company as a director
or officer of another corporation, partnership, joint venture or other entity, or related to anything done or not done by Indemnitee
in any such capacity, including, but not limited to neglect, breach of duty, error, misstatement, misleading statement or omission.

 

        Participant means a person who is a
party to, or witness or participant (including on appeal) in, a Proceeding.

 

     Proceeding means
any threatened, pending, or completed action, suit, arbitration or proceeding, or any inquiry, hearing or investigation, whether
civil, criminal, administrative, investigative or other, including appeal, in which Indemnitee may be or may have been involved
as a party or otherwise by reason of an Indemnifiable Event.

 

B.    AGREEMENT TO INDEMNIFY

 

1. General Agreement.
In the event Indemnitee was, is, or becomes a Participant in, or is threatened to be made a Participant in, a Proceeding, the Company
shall indemnify the Indemnitee from and against any and all Expenses which Indemnitee incurs or becomes obligated to incur in connection
with such Proceeding, to the fullest extent permitted by applicable law.

 

2. Indemnification of
Expenses of Successful Party. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee has been
successful on the merits in defense of any Proceeding or in defense of any claim, issue or matter in such Proceeding, the Company
shall indemnify Indemnitee against all Expenses incurred in connection with such Proceeding or such claim, issue or matter, as
the case may be.

 

3.
Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company
for a portion of Expenses, but not for the total amount of Expenses, the Company shall indemnify the Indemnitee for the portion
of such Expenses to which Indemnitee is entitled.

 

 

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4. No Employment Rights.
Nothing in this Agreement is intended to create in Indemnitee any right to continued employment with the Company.

 

5. Contribution. If
the indemnification provided in this Agreement is unavailable and may not be paid to Indemnitee for any reason, then the Company
shall contribute to the amount of Expenses paid in settlement actually and reasonably incurred and paid or payable by Indemnitee
in such proportion as is appropriate to reflect (i) the relative benefits received by the Company on the one hand and by the Indemnitee
on the other hand from the transaction or events from which such Proceeding arose, and (ii) the relative fault of the Company on
the one hand and of the Indemnitee on the other hand in connection with the events which resulted in such Expenses, as well as
any other relevant equitable considerations. The relative fault of the Company on the one hand and of the Indemnitee on the other
hand shall be determined by reference to, among other things, the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent the circumstances resulting in such Expenses, judgments, fines or settlement amounts. The
Company agrees that it would not be just and equitable if contribution pursuant to this Section B.5 were determined by pro rata
allocation or any other method of allocation which does not take account of the foregoing equitable considerations.

 

C.    INDEMNIFICATION PROCESS

 

1. Notice and Cooperation
by Indemnitee. Indemnitee shall, as a condition precedent to his/her right to be indemnified under this Agreement, give the
Company notice in writing as soon as practicable of any claim made against Indemnitee for which indemnification will or could be
sought under this Agreement, provided that the delay of Indemnitee to give notice hereunder shall not prejudice any of Indemnitee’s
rights hereunder, unless such delay results in the Company’s forfeiture of substantive rights or defenses. Notice to the
Company shall be given in accordance with Section F.7 below. If, at the time of receipt of such notice, the Company has directors’
and officers’ liability insurance policies in effect, the Company shall give prompt notice to its insurers of the Proceeding
relating to the notice. The Company shall thereafter take all necessary and desirable action to cause such insurers to pay, on
behalf of Indemnitee, all Expenses payable as a result of such Proceeding. In addition, Indemnitee shall give the Company such
information and cooperation as the Company may reasonably request.

 

2. Indemnification
Payment.

 

(a) Advancement of
Expenses. Indemnitee may submit a written request with reasonable particulars to the Company requesting that the Company advance
to Indemnitee all Expenses that may be reasonably incurred in advance by Indemnitee in connection with a Proceeding. The Company
shall, within 10 business days of receiving such a written request by Indemnitee, advance all requested Expenses to Indemnitee.
Any excess of the advanced Expenses over the actual Expenses will be repaid to the Company.

 

(b) Reimbursement
of Expenses. To the extent Indemnitee has not requested any advanced payment of Expenses from the Company, Indemnitee shall
be entitled to receive reimbursement for the Expenses incurred in connection with a Proceeding from the Company immediately after
Indemnitee makes a written request to the Company for reimbursement unless the Company refers the indemnification request to the
Reviewing Party in compliance with Section C.2(c) below.

 

(c) Determination
by the Reviewing Party. If the Company reasonably believes that it is not obligated under this Agreement to indemnify the Indemnitee,
the Company shall, within 10 days after the Indemnitee’s written request for an advancement or reimbursement of Expenses,
notify the Indemnitee that the request for advancement of Expenses or reimbursement of Expenses will be submitted to the Reviewing
Party (as hereinafter defined). The Reviewing Party shall make a determination on the request within 30 days after the Indemnitee’s
written request for an advancement or reimbursement of Expenses. Notwithstanding anything foregoing to the contrary, in the event
the Reviewing Party informs the Company that Indemnitee is not entitled to indemnification in connection with a Proceeding under
this Agreement or applicable law, the Company shall be entitled to be reimbursed by Indemnitee for all the Expenses previously
advanced or otherwise paid to Indemnitee in connection with such Proceeding; provided, however, that Indemnitee may
bring a suit to enforce his/her indemnification right in accordance with Section C.3 below.

 

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3. Suit to Enforce Rights.
Regardless of any action by the Reviewing Party, if Indemnitee has not received full indemnification within 30 days after making
a written demand in accordance with Section C.2 above or 50 days if the Company submits a request for advancement or reimbursement
to the Reviewing Party under Section C.2(c) above, Indemnitee shall have the right to enforce its indemnification rights under
this Agreement by commencing litigation in any court of competent jurisdiction seeking a determination by the court or challenging
any determination by the Reviewing Party or any aspect of this Agreement. Any determination by the Reviewing Party not challenged
by Indemnitee and any judgment entered by the court shall be binding on the Company and Indemnitee.

 

4. Assumption of Defense.
In the event the Company is obligated under this Agreement to advance or bear any Expenses for any Proceeding against Indemnitee,
the Company shall be entitled to assume the defense of such Proceeding, with counsel approved by Indemnitee, upon delivery to
Indemnitee of written notice of its election to do so. After delivery of such notice, approval of such counsel by Indemnitee and
the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees of
counsel subsequently incurred by Indemnitee with respect to the same Proceeding, unless (i) the employment of counsel by Indemnitee
has been previously authorized by the Company, (ii) Indemnitee shall have reasonably concluded, based on written advice of counsel,
that there may be a conflict of interest of such counsel retained by the Company between the Company and Indemnitee in the conduct
of any such defense, or (iii) the Company ceases or terminates the employment of such counsel with respect to the defense of such
Proceeding, in any of which events the fees and expenses of Indemnitee’s counsel shall be at the expense of the Company.
At all times, Indemnitee shall have the right to employ counsel in any Proceeding at Indemnitee’s expense.

 

5. Defense to Indemnification,
Burden of Proof and Presumptions. It shall be a defense to any action brought by Indemnitee against the Company to enforce
this Agreement that it is not permissible under this Agreement or applicable law for the Company to indemnify the Indemnitee for
the amount claimed. In connection with any such action or any determination by the Reviewing Party or otherwise as to whether Indemnitee
is entitled to be indemnified under this Agreement, the burden of proving such a defense or determination shall be on the Company.

 

6. No
Settlement Without Consent. Neither party to this Agreement shall settle any Proceeding in any manner that would impose any
damage, loss, penalty or limitation on Indemnitee without the other party’s written consent. Neither the Company nor Indemnitee
shall unreasonably withhold its consent to any proposed settlement.

 

7. Company Participation.
Subject to Section B.5, the Company shall not be liable to indemnify the Indemnitee under this Agreement with regard to any judicial
action if the Company was not given a reasonable and timely opportunity, at its expense, to participate in the defense, conduct
and/or settlement of such action.

 

8. Reviewing Party.

 

(a) For purposes of
this Agreement, the Reviewing Party with respect to each indemnification request of Indemnitee that is referred by the
Company pursuant to Section C.2(c) above shall be (A) the Board of Directors by a majority vote of a quorum consisting of
Disinterested Directors (as hereinafter defined), or (B) if a quorum of the Board of Directors consisting of Disinterested
Directors is not obtainable or, even if obtainable, said Disinterested Directors so direct, by Independent Counsel in a
written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee. If the Reviewing Party
determines that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within 10 days after such
determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to
Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable
advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is
reasonably available to Indemnitee and reasonably necessary to such determination. Any Independent Counsel or member of the
Board of Directors shall act reasonably and in good faith in making a determination under this Agreement of the
Indemnitee’s entitlement to indemnification. Any reasonable costs or expenses (including reasonable
attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making
such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to
indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.
 “Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding
in respect of which indemnification is sought by Indemnitee.

 

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(b) If the
determination of entitlement to indemnification is to be made by Independent Counsel, the Independent Counsel shall be
selected as provided in this Section C.8(b). The Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall
request that such selection be made by the Board of Directors, in which event the proceeding sentence shall apply), and
Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected. In
either event, Indemnitee or the Company, as the case may be, may, within 10 days after such written notice of selection shall
have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided, however,
that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the
requirements of “Independent Counsel” as defined in Section C.8(d) of this Agreement, and the objection
shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so
selected shall act as Independent Counsel. If a written objection is made and substantiated, the Independent Counsel selected
may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such
objection is without merit. If, within 20 days after submission by Indemnitee of a written request for indemnification, no
Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition a court of
competent jurisdiction for resolution of any objection which shall have been made by the Company or Indemnitee to the
other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the
court or by such other person as the court shall designate, and the person with respect to whom all objections are so
resolved or the person so appointed shall act as Independent Counsel. The Company shall pay any and all reasonable fees and
expenses of Independent Counsel incurred by such Independent Counsel in connection with acting under this Agreement, and the
Company shall pay all reasonable fees and expenses incident to the procedures of this Section C.8(b), regardless of the
manner in which such Independent Counsel was selected or appointed.

 

(c) In making a
determination with respect to entitlement to indemnification hereunder, the Reviewing Party shall presume that Indemnitee is
entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with
this Agreement, and the Company shall have the burden of proof to overcome that presumption in connection with the making by
any person, persons or entity of any determination contrary to that presumption. The termination of any Proceeding or of any
claim, issue or matter therein, by judgment, order, settlement (with or without court approval), conviction, or upon a plea
of nolocontendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself
adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith
and in a manner which he/she reasonably believed to be in or not opposed to the best interests of the Company or, with
respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his/her conduct was unlawful. For
purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s
action is based on the records or books of account of the Company and any other corporation, partnership, joint venture or
other entity of which Indemnitee is or was serving at the written request of the Company as a director, officer, employee,
agent or fiduciary, including financial statements, or on information supplied to Indemnitee by the officers and directors of
the Company or such other corporation, partnership, joint venture or other entity in the course of their duties, or on the
advice of legal counsel for the Company or such other corporation, partnership, joint venture or other entity or
on information or records given or reports made to the Company or such other corporation, partnership, joint venture or other
entity by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the
Company or such other corporation, partnership, joint venture or other entity. In addition, the knowledge and/or actions, or
failure to act, of any director, officer, agent or employee of the Company or such other corporation, partnership, joint
venture or other entity shall not be imputed to Indemnitee for purposes of determining the right to indemnification under
this Agreement. The provisions of this Section C.8(c) shall not be deemed to be exclusive or to limit in any way the other
circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this
Agreement.

 

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(d) “Independent Counsel” means a
law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past
five years has been, retained to represent (i) the Company or Indemnitee in any matter material to either such party (other than
with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification
agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the
foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional
conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement. The Company agrees to pay the reasonable fees of the Independent Counsel referred
to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating
to this Agreement or its engagement pursuant hereto.

 

D.    DIRECTOR AND OFFICER LIABILITY INSURANCE

 

1. Good Faith Determination.
The Company shall from time to time make the good faith determination whether or not it is practicable for the Company to obtain
and maintain a policy or policies of insurance with reputable insurance companies providing the officers and directors of the Company
with coverage for losses incurred in connection with their services to the Company or to ensure the Company’s performance
of its indemnification obligations under this Agreement.

 

2. Coverage of Indemnitee.
To the extent the Company maintains an insurance policy or policies providing directors’ and officers’ liability insurance,
Indemnitee shall be covered by such policy or policies, in accordance with its or their terms, to the maximum extent of the coverage
available for any of the Company’s directors or officers.

 

3. No
Obligation. Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain any director and
officer insurance policy if the Company determines in good faith that such insurance is not reasonably available in the case
that (i) premium costs for such insurance are disproportionate to the amount of coverage provided, or (ii) the coverage
provided by such insurance is limited by exclusions so as to provide an insufficient benefit.

 

E.    NON-EXCLUSIVITY; U.S. FEDERAL PREEMPTION; TERM

 

1. Non-Exclusivity.
The indemnification provided by this Agreement shall not be deemed exclusive of any rights to which Indemnitee may be entitled
under the Company’s current memorandum and articles of association, as may be amended from time to time, applicable law or
any written agreement between Indemnitee and the Company (including its subsidiaries and affiliates). The indemnification provided
under this Agreement shall continue to be available to Indemnitee for any action taken or not taken while serving in an indemnified
capacity even though he/she may have ceased to serve in any such capacity at the time of any Proceeding. In the event of any inconsistencies
between the terms as set out in this Agreement and the provisions in the Company’s memorandum and articles of association
(as may be amended from time to time), the provisions in the Company’s memorandum and articles of association (as may be
amended from time to time) shall prevail.

 

2. U.S. Federal Preemption.
Notwithstanding the foregoing, both the Company and Indemnitee acknowledge that in certain instances, U.S. federal law or public
policy may override applicable law and prohibit the Company from indemnifying its directors and officers under this Agreement or
otherwise. Such instances include, but are not limited to, the U.S. Securities and Exchange Commission (the “SEC”)’s
prohibition on indemnification for liabilities arising under certain U.S. federal securities laws. Indemnitee understands and acknowledges
that the Company has undertaken or may be required in the future to undertake with the SEC to submit the question of indemnification
to a court in certain circumstances for a determination of the Company’s right under public policy to indemnify Indemnitee.

 

3. Duration of Agreement.
All agreements and obligations of the Company contained herein shall continue during the period Indemnitee is an officer and/or
a director of the Company (or is or was serving at the request of the Company as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise) and shall continue thereafter so long as Indemnitee shall be
subject to any Proceeding by reason of his/her former or current capacity at the Company, whether or not he/she is acting or serving
in any such capacity at the time any Expense is incurred for which indemnification can be provided under this Agreement. This Agreement
shall continue in effect regardless of whether Indemnitee continues to serve as an officer and/or a director of the Company or
any other enterprise at the Company’s request.

 

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F.    MISCELLANEOUS

 

1. Amendment of this
Agreement. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing by the parties
hereto. No waiver of any of the provisions of this Agreement shall operate as a waiver of any other provisions (whether or not
similar), nor shall such waiver constitute a continuing waiver. Except as specifically provided in this Agreement, no failure to
exercise or any delay in exercising any right or remedy shall constitute a waiver.

 

2. Subrogation. In
the event of payment to Indemnitee by the Company under this Agreement, the Company shall be subrogated to the extent of such payment
to all of the rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary
to secure such rights, including the execution of such documents necessary to enable the Company to bring suit to enforce such
rights.

 

3. Assignment;
Binding Effect. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either party
hereto without the prior written consent of the other party; except that the Company may, without such consent, assign all
such rights and obligations to a successor in interest to the Company which assumes all obligations of the Company under this
Agreement. Notwithstanding the foregoing, this Agreement shall be binding upon and inure to the benefit of and be enforceable
by and against the parties hereto and the Company’s successors (including any direct or indirect successor by purchase,
merger, consolidation, or otherwise to all or substantially all of the business and/or assets of the Company) and assigns, as
well as Indemnitee’s spouses, heirs, and personal and legal representatives.

 

4. Severability and Construction.
Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do or fail to do any act in
violation of applicable law. The Company’s inability, pursuant to a court order, to perform its obligations under this Agreement
shall not constitute a breach of this Agreement. In addition, if any portion of this Agreement shall be held by a court of competent
jurisdiction to be invalid, void, or otherwise unenforceable, the remaining provisions shall remain enforceable to the fullest
extent permitted by applicable law. The parties hereto acknowledge that they each have opportunities to have their respective counsels
review this Agreement. Accordingly, this Agreement shall be deemed to be the product of both of the parties hereto, and no ambiguity
shall be construed in favor of or against either of the parties hereto.

 

5. Counterparts.
This Agreement may be executed in two counterparts, both of which taken together shall constitute one instrument.

 

6.
Governing Law. This agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties
hereto shall be governed, construed and interpreted in accordance with the laws of the State of New York, without giving effect
to conflicts of law provisions thereof.

 

7.
Notices. All notices, demands, and other communications required or permitted under this Agreement shall be made in writing
and shall be deemed to have been duly given if delivered by hand, against receipt, or mailed via postage prepaid, certified or
registered mail, return receipt requested, and addressed to the Company at:

 

Qilian International Holding Group Limited

 

Attention: [Officer]

 

and to Indemnitee at his/her
address last known to the Company.

 

8. Entire Agreement.
This Agreement constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral,
between the parties with respect to the subject matter hereof.

 

(Signature page follows)

 

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IN WITNESS WHEREOF, the parties hereto execute this
Agreement as of the date first written above.

 

Qilian International Holding Group Limited

 

	By:	 	 
	Name:	 
	Title:	 

 

	Indemnitee	 
	 	 
	Signature:	 	 
	Name:	 

 

[Signature Page to Indemnification Agreement]

 

    7/7Exhibit 10.3

 

 

 

 

 

 

 

 

 

 

 

 

THE AMENDED EXCLUSIVE SERVICE AGREEMENT

 

AMONG

 

CHENGDU QILIAN TRADING CO., LTD

 

AND

 

GANSU QILIANSHAN PHARMECEUTICAL CO., LTD.

 

 

 

 

 

 

 

 

August 27, 2019

 

     

     

    

 

THE AMENDED EXCLUSIVE SERVICE AGREEMENT

 

This AMENDED EXCLUSIVE SERVICE AGREEMENT (this “AGREEMENT”)
is entered into as of August 27, 2019(“SIGNING DATE”) in Jiuquan City, the People’s Republic of China (“CHINA”
or “PRC”) by and among the following Parties:

 

(1) CHENGDU QILIAN TRADING Co., Ltd.
(“CHENGDU QILIASN TRADING”), a limited liability company legally established under the laws of PRC, REGISTERED ADDRESS:
3rd Floor, Building F-19, Qingyang Industrial Headquarters Base, No. 189 Tengfei Avenue, Qingyang District, Chengdu
City, Sichuan Province.

 

(2) GANSU QILIANSHAN PHARMACEUTICAL
Co.,Ltd. (“GANSU QLS”), a limited liability
company legally established under the laws of PRC, REGISTERED ADDRESS: Jiuquan Economic and Technological Development
Zone,Jiuquan City, Gansu Province, People’s Republic of China.

 

(In this Agreement, Chengdu Qilian Trading and Gansu QLS shall
hereinafter be referred to as a “PARTY” individually, and collectively “PARTIES”.)

 

WHEREAS:

 

1. Chengdu Qilian Trading is a wholly foreign
owned enterprise legally established and validly existing in China, mainly engaged in enterprise management service and intechnical
advisory service;

 

2. Gansu QLS is a limited
liability company legally established and validly existing in China, mainly engaged in the production and sale of API (oxytetracycline,
tetracycline), extracts, extractum liquidum, tablets, hard capsules; operating the company's own products and various raw materials,
intermediates, traditional Chinese medicine materials, chemical products (Domestic and foreign trade of veterinary APIs and technologies;
hazardous waste treatment and utilization.

 

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3. As agreed by the Parties, Gansu QLS expects
that Chengdu Qilian Trading provides Gansu QLS with technical advisory services, as well as other services in relation to business
operation of enterprise. 

 

The Parties sign this agreement to confirm the provisions and
conditions. Whereas, Chengdu Qilian Trading would provide Gansu QLS with consulting and other relevant services:

 

ARTICLE 1 - DEFINATION AND INTERPRETATION

 

1.1 Unless to be otherwise interpreted by
the terms or in the context herein, the following terms in this Agreement shall be interpreted to have the following meanings:

 

“CHENGDU QILIAN TRADING” means Chengdu Qilian Trading
Co., Ltd.

 

“GANSU QLS” means Gansu Qilianshan Pharmaceutical
Co., Ltd.

 

“GANSU QLS BUSINESS” means all the business actions
legally performed by Gansu QLS, currently or at any time during term of validity of this Agreement;

 

“SERVICE” means the services in relation and exclusively
provided to Gansu QLS within the approved business scope of Chengdu Qilian Trading, as stipulated by Article 2.4 of this Agreement;

 

“SERVICE FEES” means the services in relation and
exclusively provided to Gansu QLS within the approved business scope of Chengdu Qilian Trading, as stipulated by Article 2.4 of
this Agreement;

 

“CHINA” means People’s Republic of China (excluding
Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Region);

 

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1.2 References in this Agreement to any laws
and regulations (the “LAWS”) shall include reference :

 

		(1)	at the same time to the amendments, changes, supplements
and reformulations of such Laws, whether or not the effectiveness of the same is prior to or after the execution of this Agreement;
and

 

		(2)	at the same time to other decisions, notices and rules
formulated or becoming effective according to such Laws.

 

1.3Unless otherwise specified in the context of this Agreement,
the Article, sub-article, section or paragraph mentioned herein shall refer to the corresponding content in this Agreement accordingly.

 

ARTICLE 2 - SERVICES

 

2.1 During the term of validity of this Agreement, Gansu QLS
exclusively entrusts management and consulting services to Chengdu Qilian Trading, agrees to irrevocably entrust the right of management
and operations of Gansu QLS to Chengdu Qilian Trading. Chengdu Qilian Trading shall provide the aforesaid services diligently,
in accordance with the business requirements and specific requests at any time from Gansu QLS.

 

2.2 The purpose of the entrusted operation is that Chengdu Qilian
Trading shall be in charge of the normal business operations of Gansu QLS, and provide full managements to Gansu QLS’s operations.

 

2.3 The contents of the entrusted operation shall include but
not be limited to the following:

 

		(1)	Chengdu Qilian Trading shall be in charge of all aspects
of Gansu QLS’s operations; nominate and replace the members of Gansu QLS’s board of directors, and engage Gansu QLS’s
management staff and decide their compensation;

 

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		(2)	Chengdu Qilian Trading shall control and manage all the
matters of Gansu QLS, including but not limited to internal financial management, day-to-day operation, external contract execution
and performance, tax filing and payment, change of rights and personnel;

 

		(3)	Chengdu Qilian Trading shall manage and control all the
funds of Gansu QLS, including but not limited to current working capital, recovered account receivables, and the payment of all
account payables and operation expenses, employee salaries and asset purchases. The accounts of Gansu QLS shall be managed solely
by Chengdu Qilian Trading;

 

		(4)	Chengdu Qilian Trading shall enjoy all the other responsibilities
and rights enjoyed by Gansu QLS’s investors in accordance with the applicable law and the articles of association of Gansu
QLS, including but not limited to the following:

 

		a)	Deciding Gansu QLS’s operation principles and investment plan;

		b)	Nominating the members of the board of directors;

		c)	Discussing and approving the report of the executive officers;

		d)	Discussing and approving the annual financial budget and settlement plan;

		e)	Discussing and approving the profit distribution plan and the loss compensation plan;

		f)	Resolving on the increase or decrease of the registered capital;

		g)	Resolving on the issuance of the corporate bond;

		h)	Resolving on the matters including merger, division, change of corporate form, dissolution and liquidation of the company;

		i)	Amending the articles of association;

		j)	Other responsibilities and rights provided by Gansu QLS’s articles of association.

 

(5) Chengdu Qilian Trading Shenyang
enjoys all the other responsibilities and rights enjoyed by Gansu QLS’s board of directors and executive officers in accordance
with the applicable law and the articles of association of Gansu QLS, including but not limited to the following:

		a)	Executing the resolution of the investors;

		b)	Deciding the company’s operation plan and investment scheme;

		c)	Composing the annual financial budget and settlement plan;

 

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		d)	Formulating the profit distribution plan and the loss compensation plan;

		e)	Formulating the plans regarding to the increase or decrease of the registered capital and the issuance of the corporate bond;

		f)	Formulating the plans regarding to the matters including merger, division, change of corporate form and dissolution of the
company;

		g)	Deciding on the establishment of the internal management structure of the company;

		h)	Formulating the basic rules and regulations of the company;

		i)	Representing the company to sign relative documents;

		j)	Other responsibilities and rights provided by Gansu QLS’s articles of association.

 

2.4 As the Parties understand, the scope of services that Chengdu
Qilian Trading provides shall subject to the approved business scope of Chengdu Qilian Trading; as Gansu QLS requires services
out of the approved business scope of Chengdu Qilian Trading, Chengdu Qilian Trading would apply to enlarge its business scope
to the maximum extent permitted by law, and provide the required services after being approved.

 

2.5 The said entrustment is irrevocable and shall not be withdrawn,
unless the Agreement is terminated pursuant to written agreement of both parties.

 

ARTICLE 3 - SERVICE FEES

 

3.1 As consideration of the management and consulting
services that Chengdu Qilian Trading provides, Gansu QLS shall pay service fees to Chengdu Qilian Trading. The amount of of
service fees shall be 98.297% of net profits of Gansu QLS, with the percentage being the proportion of shares of Gansu QLS
which are held by shareholders having signed the VIE Agreements, among the total shares of Gansu QLS.

 

3.2 The amount of Service Fees agreed above shall be shared
among Gansu QLS following the proportion on a monthly basis according to their actual incomes from main business in the current
month, and paid to Chengdu Qilian Trading.

 

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3.3 All the bank charges due to the occurrence of payment shall
be borne by Gansu QLS. All the amount of payment shall be transferred to the bank account designated by Chengdu Qilian Trading,
by remittance or other means agreed by the Parties. The Parties agree that Chengdu Qilian Trading could also notify Gansu QLS to
change such payment order at any time.

 

3.4Upon written agreement between Chengdu Qilian Trading
and Gansu QLS, the fees agreed in Article 3.1 or their calculation percentage may be adjusted according to the circumstances in
the actual performance, with particulars thereof to be stipulated in separate supplementary agreements to be entered into between
the Parties as an appendix hereto.

 

3.5 Each party shall respectively pay the tax related to their
execution and performance of this Agreement. As Chengdu Qilian Trading requires, in relation to all or part of the service fee
incomes, Gansu QLS shall try its best to assist Chengdu Qilian Trading enjoying the tax exemption or reduction treatment hereunder.

 

ARTICLE 4 – EXCLUSIVITY

 

4.1 The service provided
by Chengdu Qilian Trading in this Agreement shall be exclusive. During the term of validity of this Agreement, unless with consent
of Chengdu Qilian Trading, Gansu QLS shall not sign any contract with any third party, or accept services same as or similar with
those provided by Chengdu Qilian Trading, from any third party in any form. Without prior written consent of Chengdu Qilian Trading,
Gansu QLS shall not accept management and consulting services from any third party.

 

ARTICLE 5 - UNDERTAKINGS AND GUARANTEES

 

5.1 For execution of this Agreement, the Parties hereby undertake
and guarantee for each of its own that:

 

		(1)	it is a company of limited liabilities duly registered and legally existing under the PRC laws with independent legal person
status, and with full and independent status and legal capacity to execute, deliver and perform this Agreement, and may act independently
as a subject of actions;

 

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		(2)	it has full internal power and authority within its company to execute, deliver and perform this Agreement and all the other
documents to be entered into by it in relation to the transaction referred to herein. This Agreement shall be executed and delivered
by it legally and properly, and constitutes the legal and binding obligations on it and is enforceable on it in accordance with
its terms and conditions;

 

		(3)	it would not violate the binding or influential laws or contracts on it as executing and performing this Agreement;

 

		(4)	for the purpose of performing and achieving the goal of this Agreement, it guarantees for its own to other parties that, it
would execute all necessary and reasonable documents and take all necessary and reasonable actions, including but not limited to
issuing necessary authorization documents;

 

		(5)	it shall inform promptly the other Parties of any litigation it is involved in and other disadvantageous circumstances that
may affect the performance hereof, and shall endeavor at its best efforts to prevent the deterioration of losses caused by such
litigation or other disadvantageous circumstances.

 

5.2 Gansu QLS further guarantees to Chengdu Qilian Trading that:

 

		(1)	it will pay service fees in full to Chengdu Qilian Trading promptly, in accordance with the provisions in this Agreement;

 

		(2)	it will maintain the validity of all licenses and qualifications in relation to Gansu QLS’s business, and it will corporate
actively with Chengdu Qilian Trading to provide services.

 

5.3 During the term of validity of this Agreement, Gansu QLS
agrees to corporate with Chengdu Qilian Trading and the parent company of Chengdu Qilian Trading(directly or indirectly) to conduct
audits on relevant party transactions and other kinds of audits, provide Chengdu Qilian Trading or its entrusted auditors with
information and data in relation to Gansu QLS’s operation, business, clients, finance, staff, etc. Gansu QLS also agrees
that the parent company of Chengdu Qilian Trading could disclose such information and data, in order to meet the supervision requirement
at its securities’ listing spot.

 

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ARTICLE 6 - INTELLECTUAL PROPERTY

 

6.1The rights of intellectual property concerning the work
product created during the process of services provision by Chengdu Qilian Trading hereunder shall belong to Chengdu Qilian Trading.

 

6.2If business is based on the intellectual property owned
by Gansu QLS, Gansu QLS shall ensure there is no defect on the intellectual property. Gansu QLS shall be liable for all damages
and losses of Chengdu Qilian Trading incurred by defects of intellectual property rights. Chengdu Qilian Trading is entitled to
compensation from Gansu QLS concerning all of its losses.

 

6.3 Notwithstanding any other provisions herein, the validity
of this Article shall not be affected by the suspension or termination of this Agreement.

 

ARTICLE 7 – CONFIDENTIALITY

 

7.1No matter if this Agreement is terminated or not, the
Parties shall be obliged to keep in strict confidence the commercial secret, proprietary information and customer information in
relation to other Parties and any other non-open information of other Parties which they may become aware of as the result of their
performance hereof (collectively, “CONFIDENTIAL INFORMATION”).

 

7.2 Unless with prior consent of such other Parties in writing
or required to disclose to parties other than Parties hereof according to relevant laws, regulations or listing rules, no Party
shall disclose the Confidential Information or any part thereof to any parties other than Parties hereof; unless for the purpose
of performance hereof, no Party shall use directly or indirectly the Confidential Information or any part thereof for any other
purposes, or it shall bear the default liability and indemnify the losses.

 

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7.3 Upon termination
of this Agreement, the Parties shall, upon demand by other Parties, provide the Confidential Information, return, destroy or otherwise
dispose of all the documents, materials or software containing the Confidential Information and suspend using such Confidential
Information.

 

7.4 Notwithstanding
any other provisions herein, the validity of this Article shall not be affected by the suspension or termination of this Agreement.

 

ARTICLE 8 - AGREEMENT TERM

 

8.1 The Parties hereby
confirm that, once this Agreement is formally executed by the Parties, this Agreement shall be retrospectively effective as far
as the execution date.

 

8.2 Unless terminated earlier by the Parties in writing, this
Agreement shall be valid for a term of ten (10) years, and renew automatically by ten (10) years after expiration, with no limit
on times of renewal.

 

8.3 Notwithstanding the provisions in the preceding sentence,
Chengdu Qilian Trading has the right to terminate this Agreement at any time on its sole discretion, provided that it has notified
Party B in written form thirty (30) days in advance.

 

ARTICLE 9 – NOTICE

 

9.1 Any notice, request,
demand and other correspondences made as required by or in accordance with this Agreement shall be made in writing and delivered
to the relevant Party.

 

9.2 The abovementioned
notice or other correspondences shall be deemed to have been delivered when it is transmitted if transmitted by facsimile or telex;
it shall be deemed to have been delivered when it is delivered if delivered in person; it shall be deemed to have been delivered
five (5) days after posting the same if posted by mail.

 

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ARTICLE 10 - DEFAULT LIABILITY

 

10.1 The Parties agree and confirm that, if any Party (the “DEFAULTING
PARTY”) breaches substantially any of the agreements made under this Agreement, or fails substantially to perform any of
the obligations under this Agreement, such a breach shall constitute a default under this Agreement (a “DEFAULT”),
then the non-defaulting Party whose interest is damaged thereby shall have the right to require the Defaulting Party to rectify
such Default or take remedial measures within a reasonable period. If the Defaulting Party fails to rectify such Default or take
remedial measures within such reasonable period or within ten (10) days of the non-defaulting Party notifying the Defaulting Party
in writing and requiring it to rectify the Default, then the non-defaulting Party shall have the right, at its own discretion,
to:

 

		(1)	terminate this Agreement and require the Defaulting Party to indemnify it fully for the damage; or

 

		(2)	demand the enforcement of the Defaulting Party’s obligations hereunder and require the Defaulting Party to indemnify
it fully for the damage.

 

10.2 Notwithstanding any other provisions herein, the validity
of this Article 10 shall not be affected by the suspension or termination of this Agreement.

 

ARTICLE 11 - GOVERNING LAW AND DISPUTE
RESOLUTION

 

11.1 The formation, validity, execution,
amendment, interpretation and termination of this Agreement shall be subject to the PRC Laws.

 

11.2 Any dispute arising hereunder and
in connection herewith shall be settled through consultations among the Parties, and if the Parties cannot reach an agreement regarding
such disputes within thirty (30) days of their occurrence, such disputes shall be submitted to China International Economic and
Trade Arbitration Commission in Beijing for arbitration in accordance with the arbitration rules of such Commission, and the arbitration
award shall be final and binding on the Parties involved in such dispute.

 

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11.3 Unless otherwise awarded by the arbitration
court, the losing party should bear all the arbitration or prepaid expenses(including but not limited to arbitration expense, arbitrator
and lawyer’s fee, travelling expense, etc.).

 

ARTICLE 12 - FORCE MAJEURE

 

In the event of earthquake, typhoon, flood, fire, war, computer
virus, loophole in the design of tooling software, internet system encountering hacker’s invasion, change of policies or
laws, and other unforeseeable or unpreventable or unavoidable event of force majeure, which directly prevents a Party from performing
this Agreement or performing the same on the agreed condition, the Party encountering such a force majeure event shall forthwith
issue a notice by a facsimile and, within thirty (30) days, present the documents proving the details of such force majeure event
and the reasons for which this Agreement is unable to be performed or is required to be postponed in its performance, and such
proving documents shall be issued by the notaries office of the area where such force majeure event takes place. The Parties shall
consult each other and decide whether this Agreement shall be waived in part or postponed in its performance with regard to the
extent of impact of such force majeure event on the performance of this Agreement. No Party shall be liable to compensate for the
economic losses brought to the other Parties by the force majeure event.

 

ARTICLE 13 – TRANSFER

 

13.1 No Party shall assign any of its rights and/or obligations
hereunder to any parties other than the Parties hereof without the prior written consent from the other Parties.

 

13.2 As for transfer with the consent, this Agreement shall
be binding on the legal successors of the Parties.

 

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ARTICLE 14 - SEVERABILITY

 

Each provision contained herein shall be severable and independent
from each of other provisions, and if at any time any one or more articles herein become invalid, illegal or unenforceable, the
validity, legality or enforceability of the remaining provisions herein shall not be affected as a result thereof.

 

ARTICLE 15 - AMENDMENT AND SUPPLEMENT

 

Any amendment or supplement to this Agreement shall be made
in writing and take effect as part of this Agreement when properly signed by the Parties, which shall have the same legal effect
as this Agreement.

 

ARTICLE 16 - TEXT

 

This Agreement shall be prepared in the Chinese language in
three (3) original copies, with each involved Party holding one (1) copy hereof. Each original copy has the same legal effect.

 

ARTICLE 17 - MISCELLANEOUS

 

17.1 The rights and obligations of each of Gansu QLS Subsidiaries
hereunder are independent and severable from each other, and the performance by any of Gansu QLS Subsidiaries of its obligations
hereunder shall not affect the performance by any other of Gansu QLS Subsidiaries of their obligations hereunder.

 

17.2 Any failure or delay by a Party in exercising any of its
rights, powers and remedies hereunder or in accordance with laws (the “PARTY’S RIGHTS”) shall not lead to a waiver
of such rights, and the waiver of any single or partial exercise of the Party’s Rights shall not preclude such Party from
exercising such rights in any other way and exercising the remaining part of the Party’s Rights.

 

17.3 The titles of the Articles contained herein shall be for
reference only, and in no circumstances shall such titles be used in or affect the interpretation of the provisions hereof.

 

[THE REMAINDER IS THE SIGNATURE PAGE]

 

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