Document:

Exhibit 10.12

 

Fujian
Blue Hat Interactive Entertainment Technology Ltd.

Agreement
Number: Xia No.(BH/C/PDE/031/2017) Zi Document

Purchaser
(Party A) : Fujian Blue Hat Interactive Entertainment Technology Ltd.

 

Address:
Floor 7, Tower C, Fengrun Financial Holding Group Building, No.1010 Anling Road, Huli District, Xiamen

 

Telephone:
0592-2280081

 

Mailbox:
lcy@bluehatgroup.net

 

Principal:
Danqing GAO

 

Supplier
(Party B) : Dongguan Hou Jie Sheng Ping Toy Factory

 

Address:
Erheng Road, Houjie Xitou Industrial Area, Dongguan

 

Telephone:
0769-83098688

 

Fax:
0769-83090158

 

Mailbox:
wah@top-king.com.hk

 

Principal:
Jianhua ZHOU 13724503658

  

	Signing
    Date:	June
    8, 2017	Signing
    Place:	Xiamen
	Product
    Code	Product
    Name	Specification
    and Wrapping	Quantity-PCS	Unit
    Price (RMB)	Total
    Price (RMB)
	B010406B01	AR
    Racer - Lamborghini	mixed
    stowage, 80 PCS/unit	75000	¥
    12.00	¥
    900,000.00
	B010406B02	AR
    Racer - Land Rover	75000	¥
    12.00	¥
    900,000.00
	B010406B03	AR
    Racer - Lincoln	75000	¥
    12.00	¥
    900,000.00
	B010406B04	AR
    Racer -Buggati Veyron	75000	¥
    12.00	¥
    900,000.00
	 	 	Total
    Quantity:	300000	Total
    Amount (RMB)	3,600,000.00
	Amount
    in Total (RMB): Three Million and Six Hundred Thousand

 

    	 	1	 

     

    

 

1.Basic
        Requirement: five-layer corrugated cardboard, the same material as the Supplier sent to the subsidiaries of Blue Hat.
        Four sides full version printing with two-color.

        1)
        Customer Agreement Number: Xia No.(BH/C/PDE/031/2017) Zi Document

        2)
        The Unit Price includes 17% value-added tax and packaging labor cost, excluding Nano absorbing sheet, color box packing
        material or master carton cost. The color, size and material of products shall be subject to production sample confirmed
        and signed by the Purchaser, and the material of master carton shall be five-layer A-grade.

        3)
        Delivery Time: the specific delivery time shall be subject to the Purchaser’s shipping inform (S/I), the quantity
        of first batch order is 60000 PCS, and each type has 15000 PCS.

        4)
        Delivery Method: the specific time and quantity shall be subject to the Purchaser’s shipping inform (S/I).

        5)
        Shipment Schedule and Transportation Mode: shall be subject to shipping inform (S/I). Party B shall deliver by installment
        according to Party A’s practical requirement, and each batch of goods shall be delivered in one lot. The transportation
        cost of every batch is already included in the Unit Price. Damage, shortage or any other accidents occur during transportation
        shall be handled by Party B to negotiate and compensate, if there is any loss caused to Party A or breach of Party B,
        Party B shall take full responsibility to Party A.

        6)
        Product Requirement: including packaging and master carton, the color, size and material of products shall be subject
        to pre-production sample confirmed and signed by the Purchaser.

        7)
        Shipping Mark: shall be subject to shipping inform (S/I).

        8)
        Pre-production Sample: the Supplier shall provide 3 sets of pre-production sample for each type, the Purchaser shall reply
        1 set confirmation with signature, and the Supplier will produce according to the reply sample.

        9)
        Pre-shipment Sample: before shipment, the Supplier shall freely provide 1 set of production sample for each type and production
        picture of front mark, side mark, sticker and products to the Purchaser for confirmation.

        10)
        Examination Requirement: the Supplier shall submit inspection application to the Purchaser at least 7 days in advance,
        and the Purchaser will require for spot inspection. The products shall be 100% packaged while inspecting, and the Supplier
        shall freely provide 2 sets of QC production sample and send to the Purchaser’s company for each inspection. The
        Purchaser shall have the right to sample and test production the sample. If there is serious quality

 

    	 	2	 

     

    

 

problem and inconsistent
        with the sample, the Purchaser shall have the right to claim against the Supplier for all return of goods and full compensation
        for late delivery. The inspection personnel of Party A only conduct formal test, which cannot exempt Party B’s responsibility
        concerning product quality, safety and other guarantee liability under this Agreement and laws. The products shall conform
        with quality and safety technical standards agreed under this Agreement and stipulated by nation, local and trade, and
        shall be final inspected according to such standards. If there is any disqualification of quantity, specification, place
        of origin, quality grade, size, color, nameplate parameter, complete of packaging and identification, soundness and delivery
        detail, Party A shall have the right to reject, partly reject, return, partly return, terminate the Agreement and claim
        against Party B for compensation of loss including third party’s liquidated damage borne by Party A and rework of
        goods, etc.

        11)
        Payment Term: prepay 20% as down payment (20% of shipment payment in S/I), after shipment, the Purchaser shall pay 80%
        payment (80% of shipment payment in S/I) within 7 days after receiving original Agreement with the Supplier’s stamp
        confirming, original copy of S/I with signature and seal of both parties, original copy of QC Qualified Report with signature
        of both parties and valid value-added tax invoice.

        2.Basic
        Requirement of Goods:

        1)
        All product material shall be environmental and harmless, conform with product quality and safety requirement stipulated
        by nation, local and trade, execute Product Quality Law of the People's Republic of China and Law of the People's
        Republic of China on the Protection of Rights and Interests of Consumers, use safe and qualified raw material to ensure
        safety, and the products shall conform with CCC Quality Standard and European Toy Quality Standard.

        2)
        Product style and quality shall be subject to the sample confirmed by Party A. But if the sample provided by Party B disaccords
        with relevant national quality standard, even Party A confirm such sample and later provided by Party B with equal products
        which cause product quality problems, Party B cannot be exempted from liability and shall be responsible to the product
        quality.

        3)
        No shipment is allowed without being inspected by inspection personnel appointed by Party A and issuance of QC report
        allowing for shipping. Party B shall inform for inspection at least 7 days in advance.

        4)
        QC inspection shall be conducted according to AQL Standard, including inspection on product function, appearance, packaging,
        transportation, etc. Party B shall be full responsible for all consequences caused by the failure of inspection.

 

    	 	3	 

     

    

 

5)
        If there is any unconformity of quality between delivered product and the sample confirmed, including product variety,
        model, specification and color, Party A shall have the right to claim for free alter and change, or reject the goods.

        3.Other
        Requirements:

        1)
        Intellectual Property: All the property rights and intellectual property rights over technical information, design draft,
        product mold and sample provided by the Purchaser to the Supplier for the purpose of production shall belong to the Purchaser,
        and the Supplier shall not copy, re-provide or release any of such content to other parties in any form. If there is no
        renew after the termination of this Agreement, the Supplier shall have no right to continue using. The Supplier promises
        that without the authorization of the Purchaser, the Supplier shall not sell the products of the Purchaser. If the Purchaser,
        during sales process, find any suspected product which could be produced by the Supplier, both parties shall actively
        verify and investigate. Once verified that Party B has engaged in such behavior, Party A shall have the right to punished
        Party B for RMB 500,000 (Five Hundred Thousand) as penalty and claim for compensation of all economic loss. Meanwhile,
        Party A shall have the right to terminate this Agreement unilaterally and pursue all responsibilities of Party B. Both
        parties promise that unless being agreed upon in writing by both parties or for the purpose of signing and performing
        this Agreement, neither party shall disclose or reveal the content of this Agreement to any third party outside this Agreement,
        except for the normal management activity of regulatory agency. The confidentiality obligation under this Agreement shall
        survive the termination of this Agreement until above information is known to the public.

        2)
        All products under this Agreement shall provide sample pursuant to schedule required by the Purchaser, and complete production
        and shipment as required. Meanwhile, as part of after-sales service, Party B shall freely provide part of its products
        to Party A as compensation for damage happening in the transportation process, the compensation standard shall not exceed
        2% of the purchased products’ total quantity.

        3)
        If there is damage or loss of products caused by the Supplier’s packaging below the standard, the Supplier shall
        be responsible for compensation.

 

    	 	4	 

     

    

 

4)
        1 If Party B fails to deliver the goods to the place of delivery on the delivery
        date according to this Agreement, it will be regarded as delayed delivery. In this situation, Party B shall pay penalty
        to Party A at the rate of 0.5% of total contract amount for each day of delay, but the total penalty amount shall not
        exceed total contract amount. If Party B fails to deliver the products and evidentiary material according to this Agreement,
        Party A shall have the right to reject, and Party B shall pay penalty to Party B at the rate of 10% of total contract
        amount and compensate for all loss of Party A. If the amount of delivered product is less than that agreed in this Agreement,
        unless Party A affirmatively express it is unneeded, otherwise Party B shall resupply exactly the amount and the resupplying
        part will be regarded as delayed delivery; if Party B fails to resupply exactly the amount, besides returning corresponding
        price, it shall also pay penalty to Party A at the rate of 10% of total contract amount. If there is batching unqualified
        products from Party B during the inspection of Party A, Party B shall change such products into qualified products and
        the changing part will be regarded as delayed delivery. Party B shall freely resupply, change and/or repair defective
        products immediately after receiving Party A’s notice, and shall bear the transportation cost, risk and all other
        cost for such resupply, change and/or repair of defective products; if above reasons affect Party A’s supply to
        third party, Party A shall have the right to claim against Party B for compensation including anticipated profit loss,
        penalty of Party A to third party, etc. Party B’s actual commitment of liability for breach of contract due to delayed
        delivery or delayed performance of other contractual obligations shall not relieve or mitigate its continuing performance
        of other obligations under this Agreement, neither mitigate or exempt other liabilities for breach of contract of Party
        B under this Agreement. If there is bodily injury or property damage of Party A, Party A’s personnel or third party
        caused by quality problem of Party B’s product, Party B shall be responsible for all product quality tortious liability
        and liability for breach of contract, and shall pay penalty to Party A at the rate of 15% of total contract amount besides
        compensation for Party A’s other loss. 2 In case of any of the following
        circumstances occurs, Party A shall have the right to relieve this Agreement unilaterally and claim against Party B for
        return of all paid payment and penalty at the rate of 50% of total contract amount: 1.delivery time expired, Party B fails
        to deliver the product or device and still fails to deliver within 5 days after Party A’s prompt; 2.the quality,
        quantity, specification and corresponding certification material of products provided by Party B are not conform with
        that agreed in this Agreement, and still fail to complete rectification within 5 days after Party A’s prompt; 3.after
        being inspected and appraised by state

 

    	 	5	 

     

    

 

authority, the product or device provided by Party B is disqualified or fails to
        pass fire protection acceptance; 4.Party B’s delayed performance of contractual obligations or other nonperformance
        which make the contract purpose unrealized; 5.other circumstances in which this Agreement could be relieved according
        to Contract Law, other laws and regulations.

        5)
        If the inspection result is disqualified or the Purchaser is unable to inspect at the informed time due to delayed delivery,
        the Supplier shall bear the re-inspect fee for USD 150 each time.

        6)
        This Agreement requires for value-added tax special invoice (17% tax rate) according to the requirement, every new Supplier
        shall provide following documents: 1) the hard copies with seal of duplicate copies of Business License, Tax Registration
        Certificate (National and Local) and Organization Code Certificate; 2) the opening bank, account number and account names
        of the Supplier.

        7)
        Service Arrangement. Both parties affirm that the address specified in letterhead of this Agreement is effective for service.
        Notices and letters, which are sent by either party according that address, shall be deemed effectively serviced on the
        second day after the date on which they were mailed, regardless of being signed or rejected by who, and shall go into
        effect. Written notice shall be sent to the other party once there is change of above address, otherwise the changing
        party shall bear the unfavorable consequences. Both parties agree that the address specified in letterhead of this Agreement
        shall be the legal address for service of litigation document of people’s court or arbitration document of arbitral
        institution. Both parties accept the service effectiveness of any legal document sent to that address by people’s
        court or arbitral institution, and are willing to undertake resulted service consequence.

        8)
        Both parties shall perform this Agreement truly and fully. If one party requires to modify, suspend or terminate this
        Agreement for some reason, it shall be approved by the other party and sign another agreement. If this Agreement cannot
        be fulfilled due to default of one party, that party shall pay penalty to observant party at the rate of 30% of total
        contract amount and compensate the loss if caused.

        9)
        Any dispute arising out of this Agreement shall be settled through friendly consultation between both parties; in case
        no settlement can be reached after consolation, the dispute shall be submitted to the court where the Purchaser’s
        Xiamen representative office is located.

 

    	 	6	 

     

    

 

 

Signature
and Seal of Party A:

 

Legal
Representative or Authorized Representative (Signature and Seal):

 

/s/ Fujian Blue Hat Interactive Entertainment Technology
Ltd.

 

Date:

 

Signature
and Seal of Party B:

 

Legal
Representative or Authorized Representative (Signature and Seal):

 

/s/ Dongguan Hou Jie Sheng Ping Toy Factory

 

Date:Exhibit 10.13

 

 

	July
    2018 Version

 

 

Working
Capital Loan Contract

No.:
X.Y.X.D.Y.L.D.Z No. 2018308C

 

 

 

 

Lender:
Xiamen Sub-branch, Industrial Bank Co., Ltd.

Domicile:
Industrial Bank Building No. 78, North Hubin Road, Xiamen

Legal
representative/ person in charge: Hong Pipa 

 

 

Borrower:
Fujian Blue Hat Interactive Entertainment Technology Co., Ltd.

Domicile:
Room 402, 4F, Industry Design Center, Cross-Strait, Longshan Cultural & Creative Industrial Park, No. 84, South Longshan
Road, Siming District, Xiamen City

Legal
representative/ person in charge: Chen Xiaodong 

 

 

 

 

 

Contract
signing place: Siming District/ County, Xiamen City

    	1 

    	 

    

 

Important
Instruction for Contract Signing

To
safeguard your interests and rights, please carefully read, check and confirm the following issues before signing this contract:

		1.	You
                                         shall be entitled to sign this contract, and if the consent of others is needed, you
                                         have been duly authorized;

		2.	You
                                         have carefully read and fully understand clauses of the contract. You have paid special
                                         attention to contents concerning the bearing of responsibilities, the exemption or restriction
                                         of responsibilities of Industrial Bank and contents in bold;

		3.	Your
                                         company and you have sufficiently understand meaning of contract clauses and corresponding
                                         legal consequences, and are willing to accept the agreement of such clauses;

		4.	The
                                         contract text provided by Industrial Bank is the sample text only. Blank space is reserved
                                         after related clauses, and additionally, the “supplementary provisions” are
                                         also set up at the end of the contact for the parties to make any modification, supplementation
                                         or deletion to the contract;

		5.	If
                                         you have any question about the contract, please consult Industrial Bank at any time.

 

    	2 

    	 

    

 

Upon
the application of the borrower, the lender, upon examination, agrees to grant working capital loan to the borrower. This contract
is hereby entered into by and between the borrower and the lender for joint observation in accordance with related laws and regulations
of the People's Republic of China through equal consultation in order to specify rights and obligations of the two parties and
to keep premises.

The
borrower and the lender confirm that the loan under this contract belongs to the situation specified in item 2 below:

		1.	This
                                         contract is a sub-contract of the ____________ with the contract number of _____ signed
                                         by the borrower and the lender on ___________ (i.e., the master contract). The amount
                                         of loan under this contract will be counted in the credit quota under ________. The amount
                                         of loan granted in a foreign currency will be converted into RMB based on the middle
                                         price announced by the lender on the contract signing date before being counted into
                                         the credit quota. 

		2.	This
                                         contract is an independent legal text signed by the borrower and the lender. 

Article
1 Definitions and interpretations 

Unless
otherwise agreed in writing by the two parties, terms under this contract shall be defined and interpreted as below:

		1.	“Working
                                         capital loan” refers to the loan in local or foreign currency granted by the lender
                                         upon the application of the borrower which will be used as working capital to support
                                         routine production and operation of the borrower. 

		2.	“Creditor’s
                                         right”, or the main creditor’s right refers to the creditor’s right
                                         formed by the lender’s provision of financing services for the borrower upon the
                                         application of the borrower (the debtor) to the lender (creditor) and upon the examination
                                         and approval of the lender (including the principal, interest, penalty interest, compound
                                         interest, liquidated damage, damage compensation, costs for the creditor to realize the
                                         creditor’s rights, etc.). The creditor’s right possessed by the creditor
                                         against the debtor hereunder shall be consistent with the contents of debt owed by the
                                         debtor to the creditor hereunder. 

Costs
for the creditor to realize the creditor’s right” refer to the litigation (arbitration) fee, attorney fee, travel
expenses, execution fee, preservation fee and other costs for the realization of the creditor’s rights paid by the creditor
when it makes efforts to realize the creditor’s rights by means of litigation, arbitration, applying for the execution order
from the notary institution.

		3.	The
                                         terms below specified in Article 5 of the contract shall be defined and interpreted as
                                         below: 

“Fixed
interest rate” refers to the interest rate remained fixed in the term of the loan.

“Floating
interest rate” refers to the interest rate which may change in the term of the loan based on the cycle and range agreed
by the borrower and the lender.

    	3 

    	 

    

“Floating
cycle” refers to the frequency for the change of the loan interest rate agreed by the borrower and the lender. The loan
interest rate in a floating cycle will be calculated based on the benchmark interest rate and the pricing mode agreed in the contract;
the interest rate of the loan will be remained fixed in a floating cycle. When entering the next floating cycle after the expiry
of one floating cycle, the interest rate of the loan will be calculated based on the benchmark interest rate given for the new
floating cycle and the pricing mode agreed in the contract; the interest rate of the loan will be remained fixed in a floating
cycle.

“RMB
loan benchmark interest rate of the Central Bank” refers to the RMB loan benchmark interest rate of the current day published
by the People’s Bank of China.

“RMB
deposit benchmark interest rate of the Central Bank” refers to the RMB deposit benchmark interest rate of the current day
published by the People’s Bank of China.

“LPR”
refers to the current day benchmark interest rate of the loan calculated and published by the National Inter-Bank Funding Center
based on the prime rate quoted by the quoting bank independently.

“SHIBOR”
refers to the current day Shanghai Interbank Offered Rate calculated and published by the National Inter-Bank Funding Center.

“LIBOR”
refers to interbank offered rate at London market on day T-2; currencies include USD, EURO, YEN, etc.; where, “T”
refers to the actual loan offering date; “T-2” refers to two working days before the actual loan offering date, the
same below.

“HIBOR”
refers to interbank HKD offered rate at Hong Kong financial market on day T-2.

The
specific values of “LIBOR” and “HIBOR” shall be subject to the results of query in the core system of
Industrial Bank.

		4.	The
                                         “major transaction” specified in Article 13 of the contract refers to (including
                                         but not limited to) any transaction which may or is confirmed to seriously affect the
                                         basic structure of the borrower’s company, the change of shareholders of the company,
                                         contingent liability, cash flow, profitability, core business secrets of the company,
                                         core competitiveness of the company, important assets of the company, major creditor’s
                                         rights and debts of the company, ability to repay liabilities and ability to perform
                                         this contract, or other transaction which is believed by the lender and/or the borrower
                                         to constitute a major transaction. 

		5.	The
                                         “major event” specified in Article 13 of the contract refers to (including
                                         but not limited to) any event which may or is confirmed to seriously affect the work
                                         performance ability of the senior management in the company of the borrower, the employment
                                         and dismissal of employees engaged in core business of the company, core business secrets
                                         of the company, core competitiveness of the company, basic structure of the company,
                                         change of the company’s shareholders, contingent liability, the survival of the
                                         company, the legality of the company’s business, the stability and development
                                         of the company, profitability and liability repayment ability of the

    	4 

    	 

    

company,
the ability to perform this contract, and other event which is believed by the lender and/or the borrower to constitute a major
event.

		6.	For
                                         the purpose of this contract, the “working day” shall refer to the business
                                         day of the borrower’s bank. In the contract performance process, if a withdrawal
                                         date or a repayment date is a non-business day, it shall be postponed to the next business
                                         day. 

Article
2 Loan amount 

The
lender agrees to offer the loan amounting to (currency) RMB (amount in words) FOUR MILLION AND FIVE HUNDRED THOUSAND
yuan only to the borrower.

Article
3 Purpose of the loan

The
loan will be used to pay price for goods. Without the written consent of the lender, the borrower shall not use the loan
for other purpose.

Article
4 Term of the loan

		1.	The
                                         term of the loan is twelve months which will be from December 20, 2018 to December
                                         19, 2019. 

		2.	For
                                         one-time loan release, the loan release date shall be subject to the actual loan release
                                         date recorded in the loan note or loan certificate. If the actual loan release date is
                                         later than the loan release date recorded in the previous paragraph, the expiry date
                                         of the loan shall be postponed accordingly. 

		3.	Plan
                                         for the use of the loan in batches:

Date:
  / , amount: RMB   / yuan; Date:   / , amount: RMB   /  yuan;

Date:
  / , amount: RMB   /  yuan; Date:   / , amount: RMB   / yuan;

Date:
  / , amount: RMB   /  yuan; Date:   / , amount: RMB   / yuan;

Date:
  / , amount: RMB   / yuan; Date:   / , amount: RMB   /  yuan;

Date:
  / , amount: RMB   /  yuan; Date:   / , amount: RMB   /  yuan;

The
borrower shall apply to the lender to handle loan withdrawal formalities three working days before each loan withdrawal date or
the time otherwise required by the lender.

If
the borrower fails to withdraw the loan based on the term for the use of the loan in batches, the lender shall have the right
to ask the borrower to pay __ ‰ of the loan to be withdrawn in the current period as the liquidated damage.

		4.	Under
                                         the precondition agreed in Article 6 of the contract, the lender will pay the loan

    	5 

    	 

    

capital
according to Article 7 of the contract.

		5.	The
                                         lender may adjust the plan for the use of the loan in batches based on whether the loan
                                         complies with related laws, regulations and policies as well as preconditions specific
                                         in the contract, the loan capital payment conditions, the signing of the guarantee contract
                                         corresponding to the contract and the time to handling related guarantee formalities
                                         as well as other factors the lender believes necessary. 

		6.	If
                                         the loan is used in batches, the same expiry date will be applied. Namely, the expiry
                                         date recorded on the loan note or loan certificate issued for the first time loan release
                                         shall be used as the expiry date of loans released by various periods. 

		7.	If
                                         the lender required repayment of the loan in advance according to provisions of this
                                         contract, it shall be regarded that the loan expiry date is advanced accordingly. 

Article
5 Interest rate of the loan and the collection of interest

		1.	Interest
                                         rate of the loan 

		(1)	The
                                         benchmark interest rate for pricing shall be implemented according to item c below:

		a.	 
                                         / period grade of RMB loan benchmark interest rate published by the Central Bank.
                                         

		b.	 
                                         / period grade of RMB deposit benchmark interest rate published by the Central Bank.

		c.	LPR
                                         ONE YEAR grade. 

		d.	SHIBOR
                                           / period grade. 

		e.	LIBOR
                                           /  period grade.

		f.	HIBOR
                                           / period grade.

		(2)	The
                                         loan interest rate pricing formula shall be subject to item a below: 

		a.	Loan
                                         interest rate = pricing benchmark interest rate + 1.78%.

		b.	Loan
                                         interest rate = pricing benchmark interest rate * _____.

		(3)	The
                                         loan interest rate (the annual interest rate, the same below) shall be implemented according
                                         to item b below:

		a.	Fixed
                                         interest rate. The loan interest rate will be determined based on the pricing benchmark
                                         interest rate on the actual loan release date and the pricing formula, and will be maintained
                                         fixed during the term of the loan. 

		b.	Floating
                                         interest rate. The loan interest rate will be determined based on the pricing benchmark
                                         interest rate and the pricing formula on the actual loan release date and the interest
                                         rate adjustment date. The interest rate adjustment date will be implemented according
                                         to item (a) below: (a). The floating cycle is quarterly

    	6 

    	 

    

(monthly,
quarterly/ half-an-year/ annual/ other cycle); as of the actual loan release date, the corresponding date for the expiry of each
cycle shall be the contract interest rate adjustment date. If there is no such a day on the current month, the last day of the
month shall be regarded as the corresponding date; (b)   / .

During
the term of the loan, the borrow will not be otherwise informed if the benchmark interest rate is adjusted.

		c.	Other
                                         ways of interest rate:   / .

		(4)	The
                                         pricing benchmark interest rate for the loan used in batches under the contract shall
                                         be subject to the benchmark interest rate on each actual release date of the loan (or
                                         the interest rate adjustment date, if any). 

		(5)	For
                                         the loan released under the contract, if the country cancels the benchmark interest rate
                                         of if the benchmark interest rate is no longer published on the market, the lender shall
                                         have the right to determine the new interest rate of the loan based on the national interest
                                         rate policy in the current stage in principle of fairness and good faith with reference
                                         to industrial practice, interest rate situation and other related factors and inform
                                         the borrower. If the borrower has any objection, it shall negotiate with the lender.
                                         If the two parties cannot an agreement within five working days as of the date when the
                                         notice is sent by the lender, the lender shall have the right to withdraw the loan in
                                         advance, and the borrower shall immediately repay the residual principal and interest
                                         of the loan.

		2.	Way
                                         of repayment of the loan principal and interest

		(1)	The
                                         calculation of the loan interest: Interest shall be accrued for the principal of loan
                                         in local or foreign currency as of the date when the principal is transferred by the
                                         lender to the bank account of the borrower. The daily interest of the loan= balance of
                                         the loan on the current day* daily interest rate. The conversion between the daily interest
                                         rate and the annual interest rate shall be implemented according to provisions of the
                                         People’s Bank of China and the international practice. 

		(2)	The
                                         interest of the loan shall be repaid in the way as specified in item a below:
                                         

		a.	For
                                         the loan under this contract, it is agreed that the interest payment date shall be the
                                         21st day every month (month/ the last month of each quarter/
                                         the last month of each half a year/ the last month of each year/ other period); the borrower
                                         shall pay the loan interest of the current period to the lender on the interest payment
                                         date; the residual loan principal and interest will be settled completely upon the expiry
                                         of the lease term. 

		b.	As
                                         of the actual loan release date, the interest payment date for various periods shall
                                         be corresponding date at the expiry of each   /  (month/ quarter, half-a-year/
                                         year/ other period) (if the corresponding date does not exist on the current month, the
                                         last date of the month shall be the corresponding date). The borrower shall pay the loan
                                         interest of the current period to the lender on the interest payment

    	7 

    	 

    

date;
the residual loan principal and interest will be settled completely upon the expiry of the lease term.

		c.	The
                                         first time interest payment date is ; as of the first time interest payment date, the
                                         interest payment date for various periods shall be corresponding date at the expiry of
                                         each /  (month/ quarter, half-a-year/ year/ other period) (if the corresponding
                                         date does not exist on the current month, the last date of the month shall be the corresponding
                                         date). The borrower shall pay the loan interest of the current period to the lender on
                                         the interest payment date; the residual loan principal and interest will be settled completely
                                         upon the expiry of the lease term.

		d.	Other
                                         payment way: ___________________________________.

		3.	Penalty
                                         interest and compound interest

		(1)	If
                                         the borrower fails to use the loan based on the purpose agreed in the contract, since
                                         the date of embezzlement, the lender shall have the right to collect penalty interest
                                         for the loan being embezzled, and the penalty interest rate shall be 150% of the
                                         loan interest rate; if the borrower fails to repay the loan as scheduled and fails to
                                         reach an agreement with the lender on the loan renewal, namely, if the loan becomes overdue,
                                         since the date of overdue, the lender shall have the right to collect penalty interest
                                         for the overdue loan, and the penalty interest rate shall be 130% of the loan
                                         interest rate. For the interest not repaid as scheduled (including interest before and
                                         after the expiry of the loan, penalty interest for loan embezzlement and penalty interest
                                         for overdue loan), the lender shall have the right to collect compound interest based
                                         on the loan overdue penalty interest rate agreed herein. If the loan not only becomes
                                         overdue, but is also embezzled, the penalty interest will be collected in the way whichever
                                         is higher. 

		(2)	If
                                         the fixed loan interest rate is adopted, the penalty interest will also be fixed; if
                                         the loan interest rate is floating, the penalty interest will also be floating; the floating
                                         cycle will be consistent with the floating cycle of the loan interest rate.

		(3)	The
                                         way to collect the penalty interest and the compound interest shall be implemented based
                                         on the loan interest repayment way agreed herein. 

Article
6 Preconditions for loan withdrawal

		I.	The
                                         borrower shall meet various preconditions required by the lender for loan withdrawal
                                         before applying for a loan under the contract from the lender:

		(I)	The
                                         borrower has sent the following documents to the lender. Related situations specified
                                         in the documents are not changed and are continuously effective, or the bower has made
                                         interpretations and instructions to the satisfaction of the lender on the change; 

		1.	Loan
                                         application, mainly including but not limited to the name of the loan project, amount,
                                         purpose, term, repayment plan, repayment source, etc.;

		2.	The
                                         legal and valid business license of the borrower, articles of association of the

    	8 

    	 

    

company,
loan card and password/ credit code, the list of the legal representative and members of the board of directors, main persons
in charge and the financial director registered at the administrative authority for industry and commerce for recording, samples
of signatures, effective identity certificate documents of the legal representative or the authorized representative, and other
documents of the company believed necessary by the lender;

		3.	The
                                         resolution of the board meeting or the shareholders’ meeting convened by the borrower
                                         according to the legal procedure which is adopted by the quorum of directors or shareholders
                                         by voting; the resolution shall be true, legitimate and effective and shall be about
                                         the agreement on applying for the loan under the contract from the lender, specify the
                                         purpose of the loan and accept various loan conditions proposed by the lender; or other
                                         document believed necessary by the lender. 

		4.	The
                                         annual reports of the latest three years (attached with the auditor’s report and
                                         notes to the auditor’s report), financial statement of the latest period and the
                                         same period of the previous year; if the borrower has been established not more than
                                         three years, annual reports since the establishment shall be submitted. 

		5.	Information
                                         about affiliated enterprises; 

		6.	If
                                         temporary working capital loan is applied, the purchase contract, order contract, debt
                                         certificate and related contract, certificates or materials shall also be provided. 

		7.	If
                                         pledge/ mortgage is to be adopted for guarantee, the certificate materials on the ownership
                                         of the pledge/ mortgage and the value appraisal reports shall be submitted. Besides,
                                         pledge/ mortgage registration formalities that shall be handled according to requirements
                                         of related laws and regulations shall have been properly handled. The original of related
                                         ownership certificate documents, registration certificate documents and others have been
                                         sent to the lender for preservation; if third-party guarantee is to be adopted, related
                                         guarantee materials based on requirements specified in item (2)~ (4) shall be provide
                                         and the guarantee contract has already taken effect; the aforesaid guarantee shall be
                                         continuously effective. 

		8.	If
                                         the lender required to covering insurance for the pledge/ mortgage, insurance formalities
                                         with the lender as the primary beneficiary shall have been handled and the original of
                                         the insurance policy has been submitted to the lender for preservation; the insurance
                                         shall be continuously effective. If the pledge/ mortgage is provided by the borrower,
                                         the borrower herein transfers the insurance claim right upon the occurrence of insured
                                         event to the lender. 

		9.	Enterprises
                                         in special industries shall provide the production and operation license for the special
                                         industry or the enterprise qualification level certificate issued by the authoritative
                                         authority. 

		10.	If
                                         any party hereunder requires handle notary formalities, related notary formalities have
                                         been well handled. 

		11.	The
                                         borrower has opened an account at the lender’s bank as required by the lender,

    	9 

    	 

    

and
is willing to accept the lender’s credit supervision and payment and settlement supervision.

		12.	If
                                         the borrower applies for foreign exchange project loan, it must provide the effective
                                         foreign exchange loan purpose certificate and the approvals of related authorities, and
                                         shall comply with related foreign exchange management policies. 

		13.	VAT,
                                         business license and income tax payment and declaration form required by the lender.
                                         

		14.	Other
                                         documents, reports, certificate and other materials required by the lender. 

		(II)	The
                                         borrower is established according to the law; its production and operation complies with
                                         laws and regulations; it is cable for continuing operation and has legitimate source
                                         of repayment. 

		(III)	The
                                         purpose of the loan is specific and compliant.

		(IV)	The
                                         statement and undertaking made by the borrower in Article 11 are true and effective;
                                         no violating event or potential violating event has occurred on and before the applied
                                         loan release date;

		(V)	The
                                         borrower has properly complete all loan notes and certificates related to loan release.
                                         Such notes and certificates shall be a part of the contract and shall have equal legal
                                         effect as the contract. In case of any inconsistency between loan amount, loan term,
                                         loan interest hereunder and the contents of the loan note or certificate, the contents
                                         of the loan note or certificate shall prevail. 

		(VI)	The
                                         borrower has good credit situation and is free of major negative records; if the borrower
                                         is a newly established legal person, the controlling shareholder shall have good credit
                                         standing and shall be free of major negative records.

		(VII)	Other
                                         preconditions for loan withdrawal required by the lender.

		II.	The
                                         lender will perform its obligations under the contract under the premise that preconditions
                                         for loan withdrawal agreed herein are met. The lender shall have the right to unilaterally
                                         determine to degrade or give up part of preconditions for loan withdrawal, and the borrower
                                         shall not take such conditions as the cause to plead against the lender.

		III.	The
                                         lender shall have the right to appropriately adjust the release of the loan based on
                                         whether the financing project meets related laws, regulations and policies, preconditions
                                         required by the lender, the signing of the guarantee contract corresponding to this contract,
                                         the time to handle guarantee formalities and other factors.

		IV.	The
                                         borrower herein agrees that after the signing of this contract, if the borrower fails
                                         to meet preconditions for loan withdrawal or the loan capital payment conditions for
                                         any time of loan withdrawal, the lender shall have the right to stop release the loan,
                                         stop paying loan capital or terminate the loan contract. Responsibilities or losses caused

    	10 

    	 

    

thereby
shall be borne by the borrower. If the lender determines to terminate the contract, the lender shall inform the borrower and the
period for the borrower to propose objection, if any, shall be five working days as of the date when the contract termination
notice is delivered to the borrower in the way agreed herein. If the borrower does not propose any objection, the contract will
automatically terminate upon the expiry of the objection proposing period. If the borrower has objection but the two parties fail
to reach an agreement within five working days after the expiry of the objection proposing period, the lender shall have the right
to withdraw the loan ahead of schedule according to eth contract.

		V.	Upon
                                         the examination of the lender, the if borrower meets preconditions for loan withdrawal,
                                         the lender will pay the loan capital pursuant to Article 7 of the contract. 

Article
7 Account monitoring and loan capital payment 

		I.	Account
                                         monitoring

In
accordance with related laws and regulations and requirements of the regulatory system, the borrower warrants that it has meet
preconditions for loan withdrawal agreed herein before applying for loan release and agrees to accept supervision of the lender
on the use of the loan according to the purpose specified herein. The lender shall have the right to monitor the basic deposit
account, ordinary deposit account and special deposit account opened by the borrower, and to supervise and control the release
and payment of the loan capital and repayment capital in the way agreed in the contract.

The
borrower designates the following account as the special capital collection account, and will promptly provide the capital inflow
and outflow situation of this account:

Account
name: Fujian Blue Hat Interactive Entertainment Technology Co., Ltd.

Account
number: 129500100100268671                                                           

Bank
of account: Dongqu Sub-branch, Xiamen Branch, Industrial Bank            

The
lender may otherwise sign an account management agreement with the borrower based on the borrower’s credit situation and
financial situation, etc., specifying the management of capital inflow and outflow of the designated account. The lender shall
have the right to withdraw the loan ahead of schedule based on the borrower’s capital collection situation.

		II.	Payment
                                         of the loan capital

		(I)	The
                                         lender shall have the right to manage and control the payment of the loan capital by
                                         means of entrusted payment by the lender or independently payment by the borrower. 

		1.	The
                                         entrusted payment by the lender means that the borrower authorizes the lender to pay
                                         the loan capital to the trading counterparty of the borrower in line with the loan purpose
                                         agreed herein. 

If
entrusted payment by the lender is adopted, the borrower shall provide related

    	11 

    	 

    

trading
materials in line with the loan purposed agreed herein before loan capital release. Upon examination and approval by the lender,
the loan capital will be promptly paid to the trading counterparty of the borrower from the account of the borrower.

In
the mode of entrusted payment by the lender, after the loan capital is paid to the trading counterparty of the borrower, if the
basic trading contract is revoked, terminated or becomes invalid and the loan capital is returned, the lender shall have the right
to withdraw the loan ahead of schedule according to Article 12 of the contract.

		2.	Independent
                                         payment by the borrower means that after the lender pays the loan capital to the account
                                         of the borrower, the borrower independently makes payment to the trading counterparty
                                         of the borrower in line with the loan purpose agreed herein. 

In
the mode of independent payment by the borrower, the borrower shall regularly summarize and report the loan capital payment situation
to the lender. The lender shall have the right to check whether the use of the loan complies with the requirements of the contract
through account analysis, certificate verification, site survey and other means.

		(II)	Entrusted
                                         payment

Under
one of the following circumstances, the loan capital shall be paid in the mode of entrusted payment by the lender:

		1.	The
                                         credit business relationship between the borrower and the lender has been newly established,
                                         and the internal credit rating of the borrower in the bank of the lender is B3 or below.
                                         “New credit business relationship” means that it is the first time for the
                                         borrower and the lender to enter into the credit business relationship or it is the first
                                         time for the credit business relationship to have credit business relationship in 2 years;
                                         

		2.	Working
                                         capital loan for replacement;

		3.	The
                                         payment object is clear or the single time payment amount is more than RMB TEN MILLION
                                         yuan only (for the loan in foreign currency, convert based on the middle price published
                                         by the lender on the payment date); 

		4.	Others:
                                           / .

		(III)	During
                                         loan release and payment, if the borrower falls into one of the following situations,
                                         the borrower shall make up loan release and payment conditions according to requirements
                                         of the lender; the lender shall have the right to propose stricter loan release and payment
                                         conditions, and shall have the right to stop the loan release and payment. The lender
                                         may take appropriate measures according to clause II of Article 14:

		1.	Degradation
                                         of the credit situation; 

    	12 

    	 

    

		2.	Poor
                                         profitability of the main business; 

		3.	Abnormality
                                         for the use of the loan; 

		4.	Other
                                         situation believed by the lender. 

Article
8 Repayment of the principal and interest of the loan 

		I.	The
                                         principal of the loan under this contract shall be repaid according to item 2
                                         specified below:

		1.	The
                                         loan principal will be repaid by installments; the principal repayment amount and date
                                         are as below: 

Repay
RMB __________ on _________; Repay RMB __________ on _________;

Repay
RMB __________ on _________; Repay RMB __________ on _________;

Repay
RMB __________ on _________; Repay RMB __________ on _________;

Repay
RMB __________ on _________; Repay RMB __________ on _________;

________________________________________________________________

If
the lender adjusts the plan for the use of the loan in batches, the loan repayment date and amount agreed herein will not be changed,
and the borrower shall repay loan principal as scheduled.

		2.	The
                                         loan principal will be repaid by one time upon the expiry of the term of loan. 

		3.	Other
                                         way to repay loan principal: __________________________________

______________________________________________________________.

		II.	The
                                         borrower shall repay the loan principal and interest hereunder to the lender on the loan
                                         repayment date and interest payment date agreed herein. 

		III.	If
                                         the repayment date is not a business day of the lender, it will be postponed to the next
                                         business day of the lender for repayment, and this non-business day will be calculated
                                         into the total loan occupation period. When repaying the last period of loan principal,
                                         the borrower shall pay off the interest together with the principal, which will not be
                                         restricted by the interest payment date specified in Article 5 hereof. 

		IV.	If
                                         the borrower fails to repay the loan under the contract as scheduled and needs to delay
                                         the repayment of the loan, it shall submit a written loan extending application to the
                                         lender ten working days prior to the expiry date of this period of loan. If the
                                         extension is agreed by the lender upon examination, the two parties will otherwise sign
                                         a Loan Extending Contract which will be used as a supplementary agreement of this
                                         contract. 

    	13 

    	 

    

		V.	Advanced
                                         repayment

The
borrower shall repay the principal and interest of the loan as scheduled in the contract.

If
the borrower requires to repay the loan principal and interest ahead of schedule in full or in part, it shall inform the lender
in writing ten working days in advance and obtain the lender’s written consent. Upon the consent of the lender, the
borrower shall discuss with the lender and determine the repayment after advance repayment of part of loan principal and interest.
Interest for the part of loan repaid in advance will be calculated based on the actual use period and the interest agreed herein.
Loan interest already collected prior to advanced repayment will not be adjusted.

If
the borrower requires advanced repayment, the lender shall have the right to ask the borrower to pay liquidated damage amounting
to 0.05% of the amount for advanced repayment.

		VI.	If
                                         the borrower fails to perform its obligations according to the contract, the borrower
                                         herein irrevocably authorizes the lender to directly collect related payment from any
                                         account of the borrower opened at the bank of the lender or any other branch or subsidiary
                                         of Industrial Bank without going through any judicial procedure, including but not limited
                                         to the principal and interest of the loan (including the principal, interest, penalty
                                         interest and compound interest), liquidated damage, damage compensation, expenses for
                                         the lender to realize its creditor’s rights, etc. The borrower agrees that the
                                         lender shall have the right to determine specific payment collection procedure. If the
                                         currency of the capital in the account is different from the loan currency, the lender
                                         shall have the right to convert related amount into the loan currency based on the middle
                                         price published by the lender on the day of payment collection. If any account agreed
                                         hereunder involved financial management products or structural deposit or other related
                                         products, the borrower herein irrevocably authorizes the lender to directly initiate
                                         the redemption application or take other necessary measures for such related products
                                         in order to ensure smooth collection of such payment, and the borrower promises to provide
                                         all necessary cooperation. 

Article
9 Guarantee

		I.	The
                                         guarantee contracts of this contract include without limitation the followings: 

		(I)	The
                                         Guarantee Contract (contract name) with the number of X.Y.X.D.Y.B.Z
                                         No. 2018308; mode of guarantee: warranty, guarantor: Xiamen Siming Technology
                                         Financing Guarantee Co., Ltd.; 

		(II)	The
                                         Maximum Amount Guarantee Contract (contract name) with the number of X.Y.X.D.Y.E.B.Z
                                         No. 2018308A; mode of guarantee: warranty, guarantor: Chen Xiaodong;
                                         

		(III)	The
                                         Maximum Amount Guarantee Contract (contract name) with the number of X.Y.X.D.Y.E.B.Z
                                         No. 2018308B; mode of guarantee: warranty, guarantor: Cai Juanjuan;
                                         

    	14 

    	 

    

		(IV)	The
                                         Maximum Amount Guarantee Contract (contract name) with the number of X.Y.X.D.Y.E.B.Z
                                         No. 2018308E; mode of guarantee: warranty, guarantor: Chen Yong;

		(V)	The
                                           /  (contract name) with the number of   / ; mode of
                                         guarantee:   / , guarantor:   / ;

		(VI)	The
                                           /  (contract name) with the number of   / ; mode of
                                         guarantee:   / , guarantor:   / ;

		II.	In
                                         addition to aforesaid guarantee contracts which have been signed, in case of exchange
                                         rate fluctuation or any other event which as believed by the lender may affect the contract
                                         performance ability of the borrower or the guarantor, the lender shall have the right
                                         to ask the borrower to submit the cash deposit or provide new guarantee, and sign related
                                         guarantee contract. the borrower shall cooperate to meet the lender’s requirements.
                                         

		III.	The
                                         lender shall have the right to not perform its obligations hereunder, including loan
                                         release, before the completion of signing of guarantee contracts hereunder and the completion
                                         of guarantee formalities. 

Article
10 Rights and obligations of the parties

		I.	Rights
                                         and obligations of the lender

		(I)	Rights
                                         of the lender: 

		1.	Be
                                         entitled to ask the borrower to repay the principal and interest of the loan as scheduled;
                                         

		2.	Be
                                         entitled to ask the borrower to provide all materials related to the loan; 

		3.	Be
                                         entitled to get to know the borrower’s production, operation and financial situation;
                                         

		4.	Be
                                         entitled to supervise the borrower to use the loan for the purpose agreed herein; 

		5.	Be
                                         entitled to supervise the loan use situation and propose requirements; 

		6.	Be
                                         entitled to directly collect related payment from any account of the borrower opened
                                         at the bank of the lender or any other branch or subsidiary of Industrial Bank without
                                         going through any judicial procedure, including but not limited to the principal and
                                         interest of the loan (including the principal, interest, penalty interest and compound
                                         interest), liquidated damage, damage compensation, expenses for the lender to realize
                                         its creditor’s rights, etc. The borrower agrees that the lender shall have the
                                         right to determine specific payment collection procedure. If the currency of the capital
                                         in the account is different from the loan currency, the lender shall have the right to
                                         convert related amount into the loan currency based on the middle price published by
                                         the lender on the day of payment collection. If any account agreed hereunder involved
                                         financial management products or structural deposit or other related products, the borrower
                                         herein irrevocably authorizes the lender to directly initiate the redemption application
                                         or take other necessary measures for such related

    	15 

    	 

    

products
in order to ensure smooth collection of such payment;

		7.	The
                                         lender shall have the right to transfer creditor’s rights and guarantee interest
                                         hereunder to a third party in full or in part at any time and it’s unnecessary
                                         to obtain the borrower’s consent. If the lender transfers the loan and guarantee
                                         interest hereunder, the borrower shall still undertake all of its obligations under this
                                         contract; 

		8.	If
                                         the borrower fails to repay the loan principal and interest according to the contract
                                         or fails to implement loan principal and interest repayment affairs, the lender shall
                                         have the right to disclose in the credit reporting center of the credit investigation
                                         system established or approved by the People’s Bank of China, banking supervision
                                         institution or other governmental departments or the news media, and take legal measures,
                                         including collection, litigation, arbitration or applying for the execution order from
                                         a notary institution; 

		9.	The
                                         lender shall have the right to unilaterally determine to withdraw the loan ahead of schedule
                                         based on the capital return situation of the borrower; 

		10.	In
                                         case of exchange rate fluctuation or other situation the creditor believes that it may
                                         affect the safety of the creditor’s right, the debtor shall be obliged to submit
                                         cash deposit and other pledge guarantee according to the creditor’s requirements,
                                         or take risk migrating measures approved by the creditor; 

		11.	The
                                         lender shall have the right to enjoy other rights stipulated by laws, regulations and
                                         rules or other rights agreed in this contract. 

		(II)	Obligations
                                         of the lender:

		1.	Release
                                         and pay the loan capital as agreed in this contract; 

		2.	Keep
                                         confidential the borrower’s debt, finance production and operation situation except
                                         for the following situations:

		(1)	Provisions
                                         of the laws and regulations; 

		(2)	Provisions
                                         or requirements of the regulators; 

		(3)	Disclosure
                                         to the lender’s partners, etc.

		II.	Rights
                                         and obligations of the borrower:

		(I)	The
                                         borrower shall enjoy the following rights: 

		1.	Be
                                         entitled to withdraw and use all the loan according to the contract; 

		2.	Be
                                         entitled to ask the lender to keep confidential materials provided by the borrower pursuant
                                         to this contract. 

		(II)	Obligations
                                         of the borrower:

		1.	The
                                         borrower shall provide document materials required by the lender according to the truth,
                                         and the information about all banks of accounts, account numbers and balance of deposit
                                         and loan, and cooperate with the lender’s investigation, review and

    	16 

    	 

    

inspection;

		2.	The
                                         borrower shall accept the lender’s supervision or inspection over its use of the
                                         loan and related production, operation and financial activities, and promptly take reasonable
                                         measures with regard to the lender’s suggestions or requirements; 

		3.	The
                                         borrower shall use the loan according to the purpose agreed herein and shall not embezzle
                                         the loan. The borrower shall warrant that the loan will not be used for investment in
                                         fixed assets, the production and operation prohibited by the state, equity investment,
                                         trading of negotiable securities, futures, real estate, etc., and that the loan will
                                         not be used to mutual loan activities among enterprises and other illegal activities
                                         prohibited by the state; the borrower shall warrant that the loan will not be occupied
                                         or embezzled in any other way; 

		4.	The
                                         borrower shall accept the lender’s monitoring of the borrower’s account and
                                         the management of the payment of the loan capital according to Article 7 of this contract;
                                         

		5.	The
                                         borrower shall repay the principal and interest of the loan in full as scheduled in the
                                         contract;

		6.	Without
                                         the written consent of the lender, the borrower shall not transfer the debt hereunder
                                         to any third person in full or in part; 

		7.	The
                                         borrower shall not reduce the registered capital in any form; without the lender’s
                                         written consent, the borrower shall not extend the registered capital subscription period;
                                         

		8.	In
                                         case of merger, division, equity transfer, foreign investment, substantial increase of
                                         debt financing or other major events, the borrower shall inform the lender at least thirty
                                         working days in advance and obtain the lender’s written consent. The borrower shall
                                         actively take measures to guarantee full repayment of the loan principal and interest
                                         as scheduled. Aforesaid major events shall include without limitation:

		(1)	Apply
                                         for loan or liabilities from a third party, including the bank, or provide loan to a
                                         third party, provide guarantee for the liabilities of a third party or other substantial
                                         increase of liability financing, which will affect or is likely to affect the repayment
                                         of the loan principal and interest; 

		(2)	Major
                                         equity change and business adjustment (including but not limited to sign a joint venture
                                         or cooperation contract with a foreign investor or an investor from Hong Kong, Macao
                                         or Taiwan; company revoking, closure, production stop, production transfer; splitting
                                         merger, acquisition or being acquired; restructuring, establishing or restructuring into
                                         a corporate enterprise; foreign investment; invest in a corporate company or investment
                                         company with real estate, machinery equipment, or other fixed assets or trademark, patents,
                                         proprietary technology, land use right and other intangible assets; trading on property
                                         rights or business rights by means of leasing, contracting, joint operation, trusteeship,
                                         etc.); 

		(3)	Change
                                         of the equity up to / % (including but not limited to equity transfer,

    	17 

    	 

    

trusteeship,
agent custody, pledge, etc.).

		9.	The
                                         borrower shall inform the lender in writing within 7 working days as of the date when
                                         the following situation occurs or likely to occur, and actively take measures to guarantee
                                         the take measures to guarantee full repayment of the loan principal and interest as scheduled
                                         according to the lender’s requirements:

		(1)	Major
                                         financial loss, asset loss or other financial crisis; 

		(2)	Business
                                         stop, the business license being revoked or de-registered; applying for or being applied
                                         for bankruptcy, dissolution, or other situation; 

		(3)	The
                                         controlling shareholder and other affiliated company have major crisis for operation
                                         or finance, which has affected its normal operation; 

		(4)	Personnel
                                         change of the borrower’s legal representative, directors or senior management,
                                         which has affected its normal operation;

		(5)	Equity
                                         change of the guarantor up to /% (including but not limited to equity transfer,
                                         trusteeship, agent custody, pledge, etc.).

		(6)	Major
                                         connected transaction between the borrower and its controlling shareholder or other affiliated
                                         company, which has affected its normal operation; 

		(7)	Any
                                         litigation, arbitration or criminal or administrative penalty with major negative impact
                                         on its operation and financial situation; 

		(8)	Any
                                         other major event likely to affect its debt repayment ability. 

		10.	Upon
                                         the request of the lender (the lender shall inform the borrower in a reasonable way in
                                         advance except that advanced notice cannot be made due to the occurrence of breach of
                                         contract or potential breach of contract or the reason of the special environment), the
                                         borrower shall allow the representative of the lender to perform the following activities
                                         during normal working hours: 

		(1)	Visit
                                         the site of the borrower for business activities; 

		(2)	Check
                                         the site, facilities, plant and equipment of the borrower; 

		(3)	Check
                                         the account records and all other records of the borrower; 

		(4)	Inquire
                                         the borrower’s employees, agents, contractors and subcontractors familiar with
                                         or likely to be familiar with information required by the lender. 

		11.	The
                                         borrower shall warrant to maintain the current assets, net asset value, asset-debt proportion,
                                         asset liquidity proportion and other financial situation in the following range required
                                         by the lender within the term of the loan: ________________. 

		12.	The
                                         borrower must sign for receiving of the payment collection letter or payment collection
                                         document sent or delivered by other means by the lender and send the receipt to the lender.
                                         

Article
11 Statement and undertaking of the borrower

    	18 

    	 

    

The
bidder voluntarily makes the following statement and undertaking, and is willing to bear legal liability for the authenticity
of such contents:

		I.	The
                                         borrower is a legal organization established and surviving according to the laws of the
                                         People's Republic of China and has complete civil behavior ability. The borrower warrants
                                         that it will provide related certificates, license, evidences and other documents required
                                         by the lender. 

		II.	The
                                         borrower has adequate ability to perform all of its obligations and responsibilities
                                         under the contract, and will not mitigate or exempt its repayment responsibilities due
                                         to any directive, change of financial situation or any agreement signed with any organization.
                                         

		III.	The
                                         borrower has adequate authorization and legal right to sign this contract, and has obtained
                                         and implemented all internal approvals and authorizations or other related formalities
                                         required for the signing and performance of the contract, and has obtained and implemented
                                         all approval, registration, authorization, permission, license or other related formalities
                                         from any governmental departments or other competent authority required for the signing
                                         and performance of the contract. Moreover, all approvals, registrations, consent, permission
                                         and authorization as well as other formalities necessary for the signing of the contract
                                         are adequately legitimate and effective. 

		IV.	The
                                         borrower’s signing of this contract is completely in line with the borrower’s
                                         related articles of association, internal decisions and resolutions of the board meetings
                                         and shareholder’s meetings. The borrower warrants that such internal decisions
                                         and the resolutions of the board meetings and shareholder’s meetings completely
                                         comply with provisions of state laws, regulations and the company’s articles of
                                         association, and none of them are invalid fault or revocable. This contract does not
                                         conflict with the borrowers’ articles of association, internal decisions, resolutions
                                         of the board meetings and shareholder’s meetings or the borrower’s policies.
                                         

		V.	The
                                         signing and performance of this contract is based on the borrower’s real intent.
                                         The debt financing meets requirements of laws and regulations. The signing and performance
                                         of this contract does not violate any law, regulation, rules or the agreement of the
                                         contract binding to the borrower. The contract is legal, effective and enforceable. If
                                         the contract becomes invalid due to defects of the rights of the borrower upon contract
                                         signing and performance, the borrower will immediately and unconditionally compensate
                                         all losses of the lender. 

		VI.	All
                                         documents, financial statements and other materials submitted by the borrower to the
                                         lender hereunder are true, complete, accurate and effective, and all financial indexes
                                         required by the lender will be continuously maintained. 

		VII.	The
                                         borrower agrees that the loan business hereunder shall be restricted by the lender’s
                                         provisions, practices and the actual situation. The lender may withdraw the loan ahead
                                         of schedule based on the capital return situation of the borrower. 

    	19 

    	 

    

		VIII.	If
                                         the bidder fails to perform its obligations according to the contract, the borrower herein
                                         authorizes the lender to directly collect related payment from any account of the borrower
                                         opened at the bank of the lender or any other branch or subsidiary of Industrial Bank
                                         without going through any judicial procedure, including but not limited to the principal
                                         and interest of the loan (including the principal, interest, penalty interest and compound
                                         interest), liquidated damage, damage compensation, expenses for the lender to realize
                                         its creditor’s rights, etc. The borrower agrees that the lender shall have the
                                         right to determine specific payment collection procedure. If the currency of the capital
                                         in the account is different from the loan currency, the lender shall have the right to
                                         convert related amount into the loan currency based on the middle price published by
                                         the lender on the day of payment collection. If any account agreed hereunder involved
                                         financial management products or structural deposit or other related products, the borrower
                                         herein irrevocably authorizes the lender to directly initiate the redemption application
                                         or take other necessary measures for such related products in order to ensure smooth
                                         collection of such payment; the borrower shall provide all necessary cooperation.

		IX.	If
                                         the borrower submits specific transaction documents to the lender for review no matter
                                         before or after the signing of the contract, the borrower shall warrant the authenticity
                                         of all documents. The lender will only make decision on the surficial authenticity of
                                         the transaction documents. The lender does not participate in and is not aware of specific
                                         substantial transaction of the borrower and will not assume any responsibilities.

		X.	The
                                         borrower confirms that, except for situations already disclosed to the lender in writing,
                                         the borrower has not hidden any of the following events that has occurred or is to be
                                         occur which may cause the lender to disagree with the release of the loan hereunder:
                                         

		(I)	Debts
                                         and contingent debts borne by the borrower, including but not limited to any pledge,
                                         mortgage, lien or other debt burden set on the borrower’s assets or earning that
                                         has no be disclosed to the lender; 

		(II)	Major
                                         discipline violation, law violation or claim for compensation events involving the borrower
                                         or major management staff of the borrower; 

		(III)	Breach
                                         of contract by the borrower under any credit-debt contract concluded between the borrower
                                         and any other creditor; 

		(IV)	The
                                         borrower is not subject to, or to the knowledge of the borrower, there is no litigation,
                                         arbitration or administrative penalty against the borrower or its property which is still
                                         pending or likely to occur. There are no procedures proposed for liquidation, business
                                         stop or others against the borrower no matter actively proposed or proposed by a third
                                         party. 

		(V)	Any
                                         other situation likely to affect the borrower’s financial situation or repayment
                                         ability. 

    	20 

    	 

    

		XI.	The
                                         borrower promises to use the loan according to the purpose specified in the contract
                                         and that the loan will not be embezzled or used for other purpose violating the agreement
                                         herein. The borrower will accept and cooperate with the borrower for loan payment management,
                                         post-loan management and related inspection at any time, and will cooperate with the
                                         lender on the supervision, inspection, counting and all other necessary or appropriate
                                         actions on the use of the loan by the borrower, the borrower’s production, operation
                                         and financial activities, inventory of materials, assets and liabilities, bank deposit,
                                         cash and others. 

		XII.	The
                                         borrower shall provide the adequate and effective guarantee accepted by the lender or
                                         other guarantee believed suitable and acceptable by the lender. In case of real estate
                                         pledge involved hereunder, the borrower shall promptly perform the notification obligation
                                         to the lender when the borrower gets to know that the real estate is to be demolished.
                                         If the real estate for pledge is demolished, if property transfer compensation is adopted,
                                         the lender shall have the right to ask the borrower to repay debt ahead of schedule,
                                         or set up new pledge and sign a new pledge agreement. After the loss of the original
                                         pledged real estate and before the handling of new pledge registration, the borrower
                                         shall ask the pledger to continue provide guarantee or the main creditor’s rights
                                         with the real estate demolishing compensation through opening a special account for deposit
                                         or the deposit note. 

		XIII.	The
                                         borrower shall not reduce registered capital in any form. Without the prior written consent
                                         of the lender, the borrower shall not transfer the debts hereunder to any third party
                                         in full or in part. Before full repayment of debts hereunder, the bidder shall not repay
                                         the borrower’s debt to another creditor ahead of schedule without the prior written
                                         consent of the lender (except for other branches of Industrial Bank).

		XIV.	In
                                         case of any major event negative to the borrower’s repayment ability, the borrower
                                         shall inform the lender in time. In case of company merge, division, equity transfer,
                                         foreign investment, substantial of debt financing or other major events, the written
                                         consent of the lender shall be obtained.

		XV.	In
                                         case of any dispute between the lender and the borrower or any third party related to
                                         the borrower due to the performance of the lender’s obligations hereunder, due
                                         to which the lender is involved in any dispute between the borrower and a third party,
                                         the borrower shall bear all the litigation or arbitration fee, attorney fee and other
                                         expenses incurred to the lender therefore. 

		XVI.	All
                                         settlement business under this contract shall be handled by the borrower through an account
                                         opened in the lender’s bank. The borrower shall accept the lender’s closed
                                         regulation on operation property income and expenditures.

		XVII.	The
                                         borrower warrants that information published in the national enterprise credit information
                                         publicity system is true, complete, legal and effective. The borrower warrants that it
                                         continuously agrees that the lender may query information of the company in the system
                                         no matter such information is public or not. If capital verification is required by the
                                         lender, the borrower agrees to perform capital

    	21 

    	 

    

verification
according to the lender’s requirements and provide the capital verification report issued by a professional organization.

		XVIII.	The
                                         borrower herein declares and authorizes that the lender shall have the right to make
                                         necessary investigation of the borrower’s credit situation in accordance with the
                                         Credit Management Regulations and other related laws and regulations of the state,
                                         and that the lender may disclose and report information about this contract and other
                                         related information to the financial credit information basic database according to requirements
                                         of the governmental departments, bank regulators and the People’s Bank of China
                                         on the development of enterprise and individual credit work, as well as to the credit
                                         investigation system established or approved by the aforesaid organizations and institutions.
                                         The borrower herein allows that the related information can be legally queried. 

		XIX.	If
                                         the borrower violates this article of this contract, or falls into any situation likely
                                         to endanger the lender’s realization of the creditor’s rights, the lender
                                         shall have the right to ask the borrower’s shareholders to speed up their subscription
                                         and contribution obligation. The borrower warrants that its shareholders will promptly
                                         subscribe related capital according to the lender’s requirements. The lender shall
                                         have the right to require no dividend allocation to the borrower and its shareholders.

		XX.	The
                                         borrower warrants that the transaction background of this loan business is real and legitimate
                                         and is not used or any illegal purpose, such money laundering

		XXI.	Other
                                         statement and undertaking of the borrower: __________________________.

Article
12 Loan withdrawal ahead of schedule 

		I.	During
                                         the lease term, if the borrower or the guarantor (including guarantor, pledger or mortgager,
                                         the same below) falls in one of the following circumstances, the lender shall have the
                                         right to unilaterally determine to terminate paying the loan not used by the borrower
                                         yet and withdraw the loan principal and interest in full in part, and the loan for repayment
                                         by batches. If the lender withdraws the loan for any period ahead of schedule according
                                         to this contract, other undue debts will be deemed to become due ahead of schedule:

		(I)	Provide
                                         false materials or hide important operation and financial facts; any certificates or
                                         documents submitted to the lender and any item in the borrower’s statements and
                                         undertaking made in Article 11 are proven untrue, inaccurate, incomplete or deliberately
                                         leading misunderstanding; 

		(II)	Privately
                                         change the loan purpose without the consent of the lender; embezzle the loan or use the
                                         loan for illegal or violating transaction; 

		(III)	Make
                                         discount or pledge to the lender based on false contract with the affiliated party or
                                         any creditor’s rights such as receivable notes or receivables without actual trading
                                         background for the purpose of getting the lender’s capital or credit granting;
                                         

		(IV)	Refuse
                                         accepting the lender’s supervision and inspection on its credit loan use

    	22 

    	 

    

situation
and related operation and financial activities;

		(V)	Have
                                         major events which are believed by the lender likely to affect the loan safety, such
                                         as merger, division, acquisition, restructuring, equity transfer, foreign investment,
                                         substantial increase of debt financing, etc.; 

		(VI)	Purposely
                                         escaping or invalidating the lender’s creditor’s rights through affiliated
                                         transaction; 

		(VII)	Deterioration
                                         of the credit situation, obviously weakening of the repayment ability (including contingent
                                         liability);

		(VIII)	The
                                         borrower or the borrower’s affiliated company and guarantor or the guarantor’s
                                         affiliated company has cross violation of the contract as specified in Article 15 of
                                         the contract; 

		(IX)	The
                                         borrower fails to repay loan principal and interest under the contract. 

		(X)	The
                                         borrower stops its repayment or cannot or expresses its incapability to repay the debt
                                         due; 

		(XI)	Business
                                         stop, closedown, being declared bankruptcy, dissolution, business license being revoked,
                                         the company being cancelled, financial status deterioration, etc.

		(XII)	The
                                         borrower fails to perform its obligations under Article 10 and Article 13 and other of
                                         its obligations agreed in the contract, or the guarantor fails to perform its obligations
                                         under the guarantee contract;

		(XIII)	The
                                         value of the mortgage or pledge for guarantee has reduced obviously, or the right of
                                         pledge must be realized before the expiry of the loan; 

		(XIV)	Abnormal
                                         change, loss or being investigated or having personal freedom being restricted by juridical
                                         organ of the legal representative, main investors, directors, supervisors and senior
                                         management of the borrower or the guarantor, which has affected or may affect the performance
                                         of the borrower’s obligations hereunder; 

		(XV)The	borrower/
                                         guarantor or the controlling shareholders, actual controllers or affiliated personnel
                                         of the borrower/ guarantor is involved in major litigation, arbitration or other dispute,
                                         of their major assets being sealed, frozen, detained, disposed by mandatory execution,
                                         being taken with other measures with similar effect, which is likely to damage the lender’s
                                         equity.

		(XVI)	Any
                                         event otherwise agreed in the contract, any situation based on the borrower’s capital
                                         return situation, or other events affecting or damaging or likely to affect, damage the
                                         interest of the lender. 

		II.	If
                                         the aforesaid situation for loan withdrawal ahead of schedule occurs, the lender may
                                         determine whether to offer certain grace period to the borrower based on the borrower’s
                                         production, operation and financial situation and capital return situation. If the grace
                                         period is offered and the borrower still fails to take remedial measures within the grace
                                         period or if the remedial measures taken fail to meet the lender’s

    	23 

    	 

    

requirements,
the lender shall have the right to unilaterally determine to withdraw the loan ahead of schedule. The lender may also not offer
the grace period and directly determine to withdraw the loan ahead of schedule.

		III.	In
                                         case of loan withdrawal ahead of schedule, the lender shall have the right to take appropriate
                                         measures according to item II of Article 14. 

Article
13 Obligation of the borrower to disclose major transactions and major events 

		I.	The
                                         borrower shall promptly report major transactions and major events of the borrower to
                                         the lender in writing. 

		II.	If
                                         the borrower is a group company, the borrower shall promptly report connected transaction
                                         amounting to more than 10% of the borrower’s net assets to the lender according
                                         to related provisions, including but not limited to:

		(I)	Affiliations
                                         among various transaction parties; 

		(II)	Transaction
                                         projects and nature; 

		(III)	Transaction
                                         amount or corresponding proportions; 

		(IV)	Pricing
                                         policy (including transactions without price or only with symbolic amount).

Article
14 Liability for breach of contract 

		I.	After
                                         the contract takes effect, both the borrower and the lender shall perform their obligations
                                         under the contract. Any party failing to perform or completely perform its obligations
                                         under the contract shall bear corresponding liability for breach of contract. 

		II.	If
                                         the borrower fails to use the loan for the purpose agreed in the contract, and fails
                                         to make payment of the loan capital in the way agreed herein, fails to observe its statements
                                         and undertaking, if the loan application documents are untrue, if the borrower fails
                                         to realize agreed financial indexes, if there is major cross contract breaking or if
                                         the borrower fails to perform any agreement in the contract, the lender shall have the
                                         right to take one or more of the following measures: 

		(I)	Require
                                         correction of default within a given time period; 

		(II)	Stop
                                         release the loan not released yet under the contract, and stop paying loan capital not
                                         paid yet under the contract; 

		(III)	Ask
                                         the borrower to meet conditions for loan release or payment in line with the lender’s
                                         requirements, or cancel the qualification for the borrower to use the loan in independent
                                         payment way; 

		(IV)	Unilaterally
                                         determine the advanced maturity of the loan in full or in part; 

		(V)	Unilaterally
                                         terminate or release the contract and ask the borrower to repay loan principal and interest
                                         no matter they are due or not, and pay or compensate for related losses; 

    	24 

    	 

    

		(VI)	In
                                         case of overdue loan, ask the borrower to pay overdue loan penalty interest; if the borrower
                                         embezzle the loan, ask the borrower to pay the penalty interest for loan embezzlement;
                                         ask the borrower to pay compound interest of pending interest (including interest before
                                         and after the expiry of the loan, penalty interest for loan embezzlement and overdue
                                         loan penalty interest); 

		(VII)	Ask
                                         the borrower to add or replace the guarantor, mortgage, pledge/ pledge right;

		(VIII)	Implement
                                         or realize any right under the loan guarantee; 

		(IX)	The
                                         lender may directly collect related payment from any account of the borrower opened at
                                         the bank of the lender or any other branch or subsidiary of Industrial Bank without going
                                         through any judicial procedure, including but not limited to the principal and interest
                                         of the loan (including the principal, interest, penalty interest and compound interest),
                                         liquidated damage, damage compensation, expenses for the lender to realize its creditor’s
                                         rights, etc. The borrower agrees that the lender shall have the right to determine specific
                                         payment collection procedure. If the currency of the capital in the account is different
                                         from the loan currency, the lender shall have the right to convert related amount into
                                         the loan currency based on the middle price published by the lender on the day of payment
                                         collection. If any account agreed hereunder involved financial management products or
                                         structural deposit or other related products, the borrower herein irrevocably authorizes
                                         the lender to directly initiate the redemption application or take other necessary measures
                                         for such related products in order to ensure smooth collection of such payment. 

		(X)	File
                                         a lawsuit, arbitration or apply for an execution order from a notary organ; ask the borrower
                                         to repay loan principal and interest; expenses for the creditor to realize the creditor’s
                                         right shall be borne by the borrower; 

		(XI)	The
                                         lender shall have the right to detain, hold or taken other appropriate measures against
                                         any movable or real estate properties, tangible property or intangible property controlled
                                         or occupied by the borrower. 

		(XII)	Any
                                         other measure stipulated by laws and regulations, agreed in this contract, or believed
                                         appropriate by the lender.

		III.	Under
                                         the premise of meeting preconditions for loan release and for loan capital payment agreed
                                         in the contract, if the lender fails to provide the loan according to the date and amount
                                         agreed herein, which results in the loss of the borrower, the lender shall compensate
                                         the borrower for direct economic losses caused therefore. Nevertheless, the lender will
                                         not compensate for any foreseeable or unforeseeable indirect losses suffered by the borrower
                                         therefore. 

		IV.	During
                                         the performance of the contract, in case of wrong commissioned payment, untimely payment
                                         caused by untrue, inaccurate, incomplete or other defective materials provided by the
                                         borrower, independent payment by the borrower in violation of the contract or any other
                                         losses formed thereby, the lender will not assume any liability.

    	25 

    	 

    

		V.	If
                                         the loan receiving account or the account of the payment object is frozen under the contract
                                         or in case of loan release and payment dispute or other losses caused by other reason,
                                         the lender will not assume any liability. 

		VI.	If
                                         the guarantor (i.e., the guarantor, pledger or the mortgager) under the contract falls
                                         into one of the following circumstances, the lender shall have the right to take measures
                                         according to item II of this article: 

		(I)	The
                                         guarantor fails to perform agreement of the guarantee contract, the credit situation
                                         deteriorates, or the guarantee ability weakens; 

		(II)	The
                                         mortgager fails to perform agreement of the mortgage contract, deliberately damage the
                                         mortgage, or the value of the mortgage may decrease or have already decreased; or other
                                         events with prejudice to the lender’s mortgage rights occur; 

		(III)	The
                                         pledger fails to perform agreement of the pledge contract, deliberately damage the pledge,
                                         or the value of the pledge may decrease or have already decreased; or other events with
                                         prejudice to the lender’s pledge rights occur;

Article
15 Cross contract breaking 

When
the borrower or the borrower’s affiliated enterprise or guarantor, or the guarantor’s affiliated enterprises fall
into any of the following situations, it shall be deemed that the borrower has broken this contract. The lender shall have the
right to withdraw the loan ahead of schedule according to Article 12 of the contract, and ask the borrower to bear liability for
breach of the contract according to Article 14 hereof:

		(I)	Any
                                         loan, financing or debt has or may have breach of contract, or is declared mature ahead
                                         of schedule; 

		(II)	Any
                                         guarantee or similar obligation is not performed, or may not be performed; 

		(III)	Fail
                                         to perform or violate legal documents or contract on liability guarantee and other similar
                                         obligations, or there is possibility of performance failure or violation; 

		(IV)	Incapability
                                         to repay debt due or loan/ financing due appears or likely to appear; 

		(V)	Be
                                         declared or to be declared bankruptcy by legal procedure; 

		(VI)	The
                                         assets or properties are transferred to other creditors; 

		(VII)	Other
                                         situation endangering the safety of loan principal and interest under this contract.

Article
16 Continuity of obligations

All
of the borrower’s obligations under the contract shall be continuous and shall have complete and equal binding force over
its successor, agent, receiver, assignee, and the entity after its merger, restructuring or name changing.

Article
17 Accelerated maturity of loan principal and interest

The
borrower agrees that once the borrower fails to perform its statements and

    	26 

    	 

    

undertaking
in Article 11 hereunder, or the borrower fails to perform any of its obligations hereunder, the lender shall have the right to
determine that any other obligation of the borrower to the lender, including the mature or immature principal and interest (including
penalty interest and compound interest) of the loan hereunder, may become mature immediately.

Article
18 Priority of Subrogation

 

The
Borrower hereby represents that where the Borrower violates the Contract or fails to pay off the due debts (including the principal,
interest and expense) and the Borrower itself doesn’t has sufficient property to repay the debt, the Lender shall have the
priority to exercise the subrogation right for any creditor’s rights, account receivables and other property rights and
interests possessed by the Borrower against any third party.

 

Article
19 Governing Law and Settlement of Dispute

 

		I.	The
                                         conclusion, effectiveness, performance, cancellation, interpretation of the Contract
                                         and the settlement of dispute shall be governed by the laws of the People’s Republic
                                         of China (for the purpose of the Contract, the laws of Hong Kong Special Administrative
                                         Region, Macao Special Administrative Region and Taiwan Region are excluded).

		II.	All
                                         disputes arising from or in connection with the performance hereof shall be settled by
                                         the Lender and the Borrower through friendly consultation; where no agreement can be
                                         reached, both parties agree to settle the dispute based on following method (2):

		(1)	File
                                         a lawsuit in the people’s court in the place of the Lender.

		(2)	Apply
                                         to Xiamen Arbitration Committee for arbitration and settle the dispute according
                                         to the then valid arbitration rules at the time of arbitration by the Arbitration Committee.
                                         To the extent permitted by the arbitration rules, both parties agree to apply the summary
                                         procedure to complete the adjudication of case. The arbitration award is final and binding
                                         upon both parties. The place of court session of the arbitral tribunal is in Xiamen.

		(3)	Other
                                         methods: .

		III.	During
                                         the dispute period, the terms hereof that are not in dispute shall be performed continuously.

 

Article
20 Correspondence, Communication and Notification

 

		I.	The
                                         Borrower agrees and acknowledges that the following address is the address for service
                                         of the notification matters specified hereunder and legal instruments for relevant litigation
                                         (arbitration) and notarization at the time of dispute (including but not limited to the
                                         notifications and documents of the contracting parties; pleadings (or application for
                                         arbitration) and evidence, court summons, notice of respondence to action, notice of
                                         proof, notice of court session, payment command, written judgment (award), written verdict,
                                         mediation document, enforcement notice, notice of performance within time limit and other
                                         legal instruments for litigation or arbitration hearing, realization of security interest
                                         procedure and execution stage; various notifications and legal instructions served by
                                         the notary authority) served by the court or the arbitral tribunal:

		(I)	Address
                                         of the Borrower:

		1.	Name
                                         of the Borrower: Fujian Blue Hat Interactive Entertainment Technology Co., Ltd.

Address
of the Borrower: Room 402, 4F, Industrial Design Center, Longshan Cultural and Creative Industrial Park across the Strait,
No. 84, Longshan South Road, Siming District, Xiamen;

    	27 

    	 

    

Zip
code: 361000; Contact number: 13826231872;

Contact
person: He Caifan.

		2.	Name
                                         of designated recipient (if any): ;

Address
of recipient: ;

Zip
code: ; Contact number: .

		(II)	The
                                         Borrower agrees and confirms that the following electronic mailing address is the valid
                                         address of service:

		1.	Fax
                                         number: ;

		2.	Email
                                         address: plutus@bluehatgroup.net;

		3.	SMS
                                         number: 13925123166;

		4.	Wechat
                                         number: ;

		5.	QQ
                                         number: .

		II.	The
                                         application period for the address of service agreed in paragraph 1 of this article includes
                                         all stages such as non-judicial stage, first instance, second instance, retrial, execution
                                         and procedure of realization of security rights, supervisory proceedings and enforcement
                                         of notarization after judicial proceedings. In case of any change in the above address
                                         of service, the Borrower shall inform the Lender in writing in advance (during the litigation
                                         or arbitration period, a prior written notice shall be sent to the arbitral tribunal
                                         or court; where the enforcement of notarization has been handled, a written notice shall
                                         be sent to the original notary authority) to re-confirm the address of service and obtain
                                         the receipt. Where it fails to send a prior notice, such change shall be deemed to be
                                         invalid and corresponding legal consequence shall be borne by the Borrower. The address
                                         of service specified in first paragraph of this article shall remain unchanged as the
                                         valid address of service.

		III.	All
                                         documents, communications, notifications and legal instruments shall be deemed to have
                                         been served on the following date when they are sent to any of the address specified
                                         in first paragraph of this article (where the documents are delivered to the designated
                                         recipient, it shall be deemed to have been served to the concerned party):

		(I)	If
                                         delivered by mail (including the express mail service, ordinary mail and registered mail),
                                         it shall be deemed to have been served on the fifth working day after mailing date;

		(II)	If
                                         delivered by fax, email, SMS, Wechat, QQ or other electronic communication mode, it shall
                                         be deemed to have been served on the sending date;

		(III)	If
                                         delivered by personal service, it shall be deemed to have been served on the signing
                                         and receiving date of the recipient. Where the recipient refuses to receive the document,
                                         the server can record the process by taking photos and videos and keep the instrument
                                         properly. Upon completion of above procedure, it shall be deemed to have been served.

		IV.	The
                                         Borrower shall bear corresponding legal consequences if the service address provided
                                         or confirmed by the Borrower is inaccurate or untrue or the service address after change
                                         cannot be informed to the counterparty and the arbitration authority, people’s
                                         court and notary authority in time which results in failure in service and shall be deemed
                                         to have been validly served;

		(I)	If
                                         delivered by mail, the return date of the instrument shall be deemed to be the date of
                                         service;

		(II)	If
                                         delivered by personal service, the date on which the server indicates the specific

    	28 

    	 

    

condition
on the receipt on site shall be deemed to be the date of service;

		(III)	If
                                         delivered by electronic way, the sending date shall be deemed to be the date of service.

		V.	The
                                         Lender treats the domicile listed in the Contract as the address of service. Where the
                                         Lender sends the notification by sending an announcement in the website, E-bank, telephone
                                         bank or sales network, the release date of the announcement shall be deemed to be the
                                         date of service. The Lender shall not bear any liability for the error, omission or delay
                                         in the transmission incurred by the mailing, fax, telephone or other communication system
                                         in any circumstance.

		VI.	The
                                         parties agree that the unit seal of the parties, office seal, special seal for finance,
                                         special seal for contractual use, receiving and sending seal and the special seal for
                                         the Lender’s credit business shall be the effective seals for the notifications
                                         or contacts, service of legal instruments and correspondence of the parties. All staff
                                         of the Lender shall be the authorized recipient for the correspondence, communication
                                         and notification.

		VII.	This
                                         provision shall be the independent provision in the Contract and shall not be affected
                                         by the validity of the Contract and other provisions hereof.

 

Article
21 Validity of Contract and Miscellaneous 

 

		I.	The
                                         Contract shall come into force after being signed or sealed by the contracting parties.

		II.	Within
                                         the term of the Contract, any tolerance, grace or delay in exercise of the rights or
                                         benefits specified hereunder granted by the Lender to the Borrower and the Guarantor
                                         shall not damage, affect or restrict the Lender’s rights and benefits under the
                                         laws and regulations and the Contract and shall neither be deemed to be a waiver of the
                                         Lender for its rights and benefits under the Contract nor affect any obligation of the
                                         Borrower under the Contract.

		III.	In
                                         case of any change in the national laws, regulations or supervisory policies, which results
                                         in the nonconformance of the Lender’s performance of loan-making obligation specified
                                         hereunder with the laws and regulations or supervisory requirements, the Lender is entitled
                                         to arbitrarily terminate the Contract and declares the acceleration of maturity of all
                                         issued loans and the Borrower shall immediately repay the loans upon request of the Lender.
                                         Where the Lender fails to perform the Contract due to such reason, the Lender shall not
                                         bear any legal responsibility.

		IV.	Where
                                         the loans cannot be made or paid on time due to force majeure, communication or network
                                         failure and the Lender’s system failure, the Lender shall not bear any liability
                                         and shall inform the Borrower in time.

		V.	The
                                         Lender is entitled to authorize or entrust other branches of Industrial Bank to perform
                                         the rights and obligations under the Contract based on the operation and management demands
                                         (including but not limited to authorizing or entrusting other branches of Industrial
                                         Bank to enter into relevant contracts), or assign the loans under the Contract to other
                                         branches of Industrial Bank for management. The Borrower hereby acknowledges above provision
                                         and the above behaviors of the Lender require no separate consent of the Borrower.

		VI.	The
                                         Borrower agrees that the Lender is entitled to adjust, reduce or cancel the loan amount
                                         unused under the Contract based on the Borrower’s production and operation condition,
                                         repayment condition and the credit of other financial institutions. Where the Lender
                                         decides to adjust, reduce or cancel the loan amount, it shall send a notice to the

    	29 

    	 

    

Borrower
five working days in advance, without the separate consent of the Borrower.

		VII.	Where
                                         any provision of the Contract is or becomes invalid or unenforceable at any time, the
                                         validity, effectiveness or enforceability of other provisions under the Contract shall
                                         not be affected or impaired.

		VIII.	The
                                         subheadings of the Contract are for convenience only and shall not be used in construing
                                         or interpreting the Contract or for other purposes.

		IX.	The
                                         appendixes to the Contract shall constitute an integral part of the Contract and shall
                                         have the same legal effect with the text of the Contract.

		X.	The
                                         Contract is made in triplicate, with the Lender holding two , the Borrower
                                         holding one and holding respectively. All copies shall have the same legal effect.

 

Article
22 Notarization and Voluntary Acceptance of Enforcement

 

		I.	Where
                                         either party of the Contract puts forward the notarization request, the other party agrees
                                         to carry out notarization in the notary authority specified by the country upon request
                                         of the other party.

		II.	The
                                         contract with enforcement of notarization shall have compulsory execution effect. Where
                                         the Borrower fails to perform or improperly performs the obligations or the Lender’s
                                         realization of the creditor’s rights under the laws, regulations and the Contract
                                         occurs, the Borrower agrees that the Lender is entitled to apply to the notary authority
                                         to issue the execution certificate with compulsory execution effect and the Borrower
                                         is willing to accept the compulsory execution measures directly applied by the Lender
                                         with the certificate to the competent people’s court and knows the corresponding
                                         legal consequences and the Borrower undertakes that it will not raise any objection or
                                         make any defense.

		III.	All
                                         parties hereto agree that: before the notary authority issues the certificate of execution,
                                         it shall be entitled to verify the relevant facts of breach by the Borrower such as objection
                                         to satisfy or improper satisfaction of the debts in any one or several ways such as mail,
                                         telephone, fax, E-mail, short message, We-chat, QQ, personal delivery and interview based
                                         on the clause of “Document Correspondence, Communication and Notice” as agreed
                                         herein. If the verification is made through telephone or interview, the documents will
                                         be deemed as already served upon the end of the interview or call; if the verification
                                         is made through mail, fax, E-mail, short massage, We-chat, QQ and personal delivery,
                                         then the documents shall be deemed as served as agreed in the clause of “Document
                                         Correspondence, Communication and Notice”.

		IV.	If
                                         the Borrower has any objection towards the above verified fact of breach, it shall, within
                                         five working days after the date of service, provide written proof and adequate evidences
                                         to the notary authority. If the proof has not been provided on time or if the notary
                                         authority believes that the evidences are not adequate to support the claim, then it
                                         will be deemed that the Borrower has confirmed relevant facts of breach such as objection
                                         to satisfy or improper satisfaction of the debts and has agreed that the notary authority
                                         may issue the certificate of execution based on the application submitted by the Lender.
                                         If the notary authority has otherwise stipulate the way of verification and the period
                                         for providing the proof, such stipulations shall prevail.

 

Article
23 Supplementary Clauses:

 

    	30 

    	 

    

 

This
is the signing page of the Working Capital Borrowing Contract (X.Y.X.D.Y.L.D.Z No. 2018308C).

 

	The
        Lender (corporate seal): Person in charge or authorized person (signature):

         

        /s/
        Xiamen Branch of Industrial Bank Co., Ltd.

        Specific
        Seal for Credit Contract for Xiamen Branch of Industrial Bank Co., Ltd. (seal)

        Hong
        Pipa (signature)

        December
        20, 2018

	The
        Borrower (corporate seal): Person in charge or authorized person (signature):

         

        /s/
        Fujian Blue Hat Interactive Entertainment Technology Co., Ltd.

        Fujian
        Blue Hat Interactive Entertainment Technology Co., Ltd. (seal)

         

        December
        20, 2018

 

 

Verified
by:

 

 

    	31

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