Document:

Exhibit
10.2

 

	 ZAOZHUANG BANK	Contract No.: 2014 Zao Yin Shou Zi 10020602 No. 00005

 

Credit Agreement

 

Creditor: Zaozhuang Bank Junshan Road
Sub-branch

 

Applicant: Synthesis Energy Systems
(Zaozhuang) New Gas Co., Ltd.

 

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Creditor: Zaozhuang Bank Co., Ltd. Junshan Road Sub-branch
(hereinafter referred to as “Party A”)

Legal representative (principal): Zhou Changtao

Applicant: Synthesis Energy Systems (Zaozhuang) New Gas
Co., Ltd. (hereinafter referred to as “Party B”)

Legal representative (principal): John Winter

 

Party B made a credit application to Party A, which agrees.
By related regulations and mutual communication, below articles were reached.

 

Article 1 Credit Amount

Party A shall provide RMB (total) _30,000,000_Yuan as
the credit amount.

 

The amount is the maximum that Party A could supplies to Party
B including loan, trade financing (packed release, import & export documentary bill), discount and commercial acceptance bill
and guarantee letter, etc.

 

The above mentioned amount excludes the related guarantee or
that of deposit mortgage, so does below covered.

 

The business type and scope is listed in Article 3.

 

Article 2 Terms of Crediting

The duration is for one year, from October 2, 2014 to
September 23, 2015.

 

Party B should submit the application with the period or Party
A shall reject the request.

 

Article 3 Usage of Credit Amount

3.1 Amount type and scope

The above credit is (Comprehensive or single).

3.1.1 The comprehensive credit amount is to be assigned as:

3.1.1.1 Working Capital loan: RMB__2000_ Wan Yuan (+0,000);

3.1.1.2 Bank Acceptance bill discount: RMB__1000_ Wan
Yuan (+0,000);

3.1.1.3 Commercial Acceptance bill discount: RMB_________ Wan
Yuan (+0,000);

3.1.1.4 Commercial bill Acceptance: RMB________________ Wan
Yuan (+0,000);

3.1.1.5 Open letter of guarantee: RMB___________________ Wan
Yuan (+0,000);

When Party A agreed, Party B can adjust above amount on different
type usage.

3.1.2 _____________________ single credit amount.

3.2 during the valid period, Party B can circulate the credit
amount application one by one. Party A shall review and approve each application. A separate business contract is to be signed
between the two parties.

3.3 Each separate loan application should be based on party
B’s business request and Party A’s regulated term. So the separate term can be later than credit date.

 

Article 4 Interest and Expenditure

All the loan, financing rate, acceptance, credit letter opening
and cost for guarantee letter should be referred to each separate regulated contract.

 

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Article 5 Guarantee Clauses

5.1 All the debts under this agreement from Party B shall be
joint liability guarantee by Shandong Weijiao Group Xuecheng Energy Co., Ltd., which shall provide Party A with irrevocable maximum
guarantee letter and guarantee contract.

5.2 All the debts under this agreement from Party B are subject
to its guarantor and its real estate, land as mortgage. The two parties are to sign the guarantee contract (see attached mortgage
list).

 

Article 6 Party B’s Rights and Obligations

6.1 Party B has below rights

6.1.1 It has the rights to ask Party A providing the credit
or other credit within the amount and under the regulations;

6.1.2 It can use the credit amount under the rules regulated
in this agreement;

6.1.3 Party A should keep confidential to the information provided
by party B related to its production, operation, Property and Accounting except the legal part.

6.1.4 After the written consent from Party A, Party B is able
to assign its debt to a third party.

6.2 Party B has below obligations:

6.2.1 Party B shall provide the required documentation in real
situation, including the open account, number and balance for the deposit and loan, cooperating party A’s review and check;

6.2.2 Agree with Party A’s surveillance on Party B’s
credit usage and production and financial activities;

6.2.3 Use the loan or credit under each separate contract regulations;

6.2.4 Pay back the loan or principal of the advanced money according
to the regulations under this agreement and each separate contract;

6.2.5 When Party B plans to transfer all or part of the debt
to a third party, written consent by Party A should be obtained;

6.2.6 should any below item happened, Party B should notice
Party A immediately and actively cooperate Party A on assured actions for the loan and other credit principal and interest and
all the related expenditure payment:

6.2.6.1 Big financial or property loss or other crisis;

6.2.6.2 Provide loan or guarantee for third party in order to
prevent from interest loss or use its own property for mortgage guarantee;

6.2.6.3 Changes happened including merger, separation, reconstruction,
joint venture, shares transfer and stock reforming;

6.2.6.4 Stopping, revocation, license withdrawing, bankruptcy
or dissolution;

6.2.6.5 Its major shareholder or related company has financial
crisis and influenced its normal operation;

6.2.6.6 Have big transaction with major shareholder and its
related company and influenced its normal operation;

6.2.6.7 Any lawsuit, arbitration, criminal or administrative
punishment which bring bad influence to its business or financial status;

6.2.6.8 Any big event that may affect its loan payment.

Article 7 Party A’s Rights and Obligations

 

7.1 Party A has below rights:

7.1.1 Party A can request Party B to pay back the loan and principal
of advanced money on time;

7.1.2 Party A has right to ask Party B to provide related document
supporting the credit amount;

 

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7.1.3 Party A can make command of Party B’s production
and financial activity;

7.1.4 Party A can have surveillance on Party B’s usage
of the loan or other credit;

7.1.5 Party A is able to remit from any of Party B’s accounts
the related loan or principal and interest of advanced money;

7.1.6 If Party B failed to follow any obligation, Party A is
able to stop the balanced loan or credit amount and ask Party B to pay back the released loan and interest;

7.1.7 If any circumstance happened to Party B as described under
Article 6.2.6, Party A has the right to stop the balanced loan quota or credit and ask Party B to pay immediately the loan or principal
of the advanced money and related expenditure. It is acceptable that when Party A agrees, all the debts can be transferred to an
assignee or to add new guarantee which Party agrees.

7.2 Party A has below obligations:

7.2.1 Based on this agreement and each separate contract, Party
A arrange to Party B the regulated loan or credit;

7.2.2 Party A should keep confidential on Party B’s information
including property, finance, production and operation except for those legal parts.

 

Article 8 Special items which Party B should promise

8.1 Party B was legally established according to PRC laws. It
is qualified as a legal person and has civil action to sign and fulfill the agreement;

8.2 Party B has got full authorization from related Board Directors
or organizations to sign and fulfill the agreement;

8.3 Party B should provide true, accurate, complete and valid
documentation covering guarantor and mortgage with no violated error or missing;

8.4 Party B should have no lawsuit, arbitration, criminal or
administrative punishment which may cause bad result to its property when signing the agreement or during the valid term of the
agreement. If any, Party B should notice Party A immediately;

8.5 Party B should follow the national laws and operates within
the regulated business scope, doing the annual inspection on legal person registration;

8.6 Keep and improve the current management to assure the value
and elevating the property. Do not give up any due debt and manage the major property for free or with improper manner;

8.7 When signing this agreement, Party B has no big happening
that may affect its fulfilling of those described obligations.

 

Article 9         Other expenses 

Any expenses occurred by credit information, inspection, notarization,
etc., and under the condition that party B can’t repay all debts owed to party A under this contract on time, all expenses
party A paid such as lawyer fee, lawsuit fee, and travel expenses in order to realize the creditor’s right should be borne
by party B. Here party B authorizes party A to deduct the expenses from its bank account opened under party A or any other financing
institutions. For any deficiency, party B assures the payback of the exact amount upon party A’s notice, without any evidence
from party A.

 

Article 10        Default and conduct

10.1   If one of the following issues happened
to party B, it is regarded as event of default:

10.1.1   Violation of obligations stipulated
in term 6.2.1, providing fake information to party A or hide important situation, failing to co-operate in party A’s investigation,
audit and check, party A asked for correction by party B within reasonable period but party B failed to make correction within
given period, damaged the interests of party A;

 

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10.1.2    Violation of obligations stipulated
in term 6.2.2, refuses to accept or avoid party A’s supervision on party B’s use of loan funds, operation and financial
activities, damages the interests of party A;

10.1.3   Violation of obligations stipulated
in term 6.2.3, fails to use load funds and/or other credit along with this contract and other related contracts, damages the interests
of party A;

10.1.4   Violation of obligations stipulated
in term 6.2.4, fails to repay the loan and/or advances principal and interest on time;

10.1.5   Violation of obligations stipulated
in term 6.2.5, transfers debt under this contract to third party unilaterally, damages the interests of party A;

10.1.6   Violation of obligations stipulated
in term 6.2.6, when the conditions occurred as stipulated in this term, fails to notice party A timely, or after party A is informed
of such condition and asks party B to increase guarantee measures for loan payback but party B fails to co-operate, or party A
thinks the loan and/or advances principal and interest’s safe return is affected;

10.1.7   Violation of term 8.1, 8.2 and 8.4,
damages the interests of party A, or violation of term 8.3, 8.5, 8.6 and 8.7, fails to make correction as required by party A,
damages the interests of party A;

10.1.8   Any other situations which party A thinks
damages the interests of party A.

10.2   If any of the following circumstances
occurred to the guarantor, party A will think the guarantee capability is affected and ask guarantor remove adverse impact, or
ask party B to increase or replace guarantee conditions, if the guarantor and party B fail to co-operate, it will be regarded as
event of default.

10.2.1   Any circumstances occurred as stipulated
in term 6.2.6;

10.2.2   Hide its capability of guarantee liability
when drawing irrevocable letter of guarantee, or fails to get relevant authorization;

10.2.3   Fails to conduct yearly audit registration

10.2.4   Failure to manage and claim due debts,
or disposes current main assets for free or with any other improper way.

10.3   If any of the following circumstances
occurred to the pledger, party A will think it will cause the mortgage failure or lead the value of the guaranties or pledged assets
to decrease, and asks pledger to remove such adverse impact, or asks party B to increase or replace guarantee conditions, the pledger
and party B fail to co-operate:

10.3.1   Lacks of the ownership or disposition
right of the guaranties or pledged assets, or dissension concerning the ownership of guaranties;

10.3.2   Leasing, sealed up, sequestrated or
controlled are occurred to the guaranties or pledged assets, and/or party B hide such occurrence;

10.3.3   Without the written consent of party
A, the pledger disposes the guaranties by transferring, leasing, remortgages or any other improper ways, or though with the written
consent of party A, fails to payback debts which party B owed to party A as party A requested with the earnings from disposed guaranties;

10.3.4   The pledger fails to keep, maintenance
and repair the guaranties to lead the decrease of the value of guaranties, or the pledger’s behavior causes the decrease
of the value of guaranties; or the pledger fails to insure the guaranties during mortgage period as requested by party A.

10.4   Once any violation of obligations stipulated
in term 10.1, 10.2, 10.3 occurred, party A is entitled to take any actions as follows, and party B has no objection to them:

10.4.1   Stop to issue to party B unused loan
within credit limit, stop to provide party B unused credit limit on acceptance bill, LC opening, letter of guarantee opening;

 

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10.4.2   Take back issued loan’s principal
and interests within credit limit and related expenses;

10.4.3   For the draft accepted by party A or
opened LC, letter of guarantee during credit period, despite if party A has paid advance in cash or not, party A can ask party
B to increase guarantee money amount, or transfer party B deposit or clearing account deposit to guarantee money account as a guarantee
money to pay off future party A’s advance in cash, or give to the third party for drawing as future party A’s advance
cash.

10.4.4   Deduct directly from party B’s
clearing account and/or deposits on other accounts to pay off all debts under this contract and any other detail contracts;

10.4.5   Exercises recourse based on article
13.

 

Article 11       Alteration and termination of
contract 

Any alteration and termination to this
contract shall be made in a writing based on an agreement reached by both parties through consultation. This contract should remain
effective before any written agreement reached. Any party are not allowed to make alternation or termination in advance without
authorization.

 

Article 12       Others

12.1   During effective period of this contract,
any tolerance, grace period or delay to exercise party A’s rights and interests under this contract by party A based on party
B’s violation of this contract or any delay should not damage, affect or restrict party A’s all rights and interests
according to related laws and this contract, neither party A’s permission or recognition to violation of this contract, neither
regarded as party A’s waiver of the right to take any action to current or future violation of this contract.

12.2   If all or part terms becomes ineffective
legally for any reasons, party B still needs to take the responsibility to pay off all debts owed to party A under this contract.
If the above-mentioned happens, party A is entitled to terminate this contract and ask for paying off all debts by party B immediately.

12.3   All notices and requests related to this
contract shall be sent in a written form. Any telex, telegraph from party A once sent out, mails delivered to post office will
be regarded as to be reached party B.

12.4   Any written supplemental agreement after
both parties’ consultation for unaccomplished matter or modification to this contract, and other detailed contracts under
this contract are all attachment of this contract, shall constitute an integral part of this contract.

 

Article 13     Governing laws and settlement
of dispute

13.1   The conclusion, execution, and dispute
settlement of this contract shall be subject to the laws of the People’s Republic of China. Both parties’ rights and
interests are protected by the laws of the People’s Republic of China.

13.2   For all disputes arising out of this contract,
both Party A and Party B shall try to settle them through consultation. Shall such consultation failed, they shall be settled in
the method stipulated herein.

13.2.1   Lodge a lawsuit with the people’s
court where party A is located

13.2.2   Apply for arbitration to                     
 arbitration committee.

13.2.3   After both parties’ conduction
of notarization on enforcement of this contract and detailed contracts, in order to recourse the due debt of party B under this
contract and detailed contracts, party A is entitled to apply for enforcement to people’s court of jurisdiction.

 

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Article 14       Effectiveness of this contract

This contract becomes effective after both parties’ signatures
or stamps by authorized people and stamped of official seals, as well as the guarantee procedure under article 5 of this contract
is conducted. This contract will be automatically ineffective at the day when party B pays off all debts and other related expenses
to party A.

 

Article 15      This contract is made in
three counterparts of the equal legal effect, with the party A, party B and  registration authority holding
one copy respectively.

 

	Party A: (corporate seal):	 	Party B: (corporate seal):
	 	 	 
	
        Zaozhuang Bank 

Co., Ltd. 

Junshan Road 

Sub-branch

        [seal]
	 	
        Synthesis 

Energy 

Systems 

(Zaozhuang) 

New
        Gas Co., 

Ltd.

        [seal]

	 	 	 
	
        Legal representative (principal)

        (signature or seal):
	 	
        Legal representative (principal)

        (signature or seal):

	 	 	 
	
        Zhou 

Changtao

        [seal]
	 	
        John Winter

        [seal]

	 	 	 
	Entrusted agent: (signature):	 	Entrusted agent: (signature):
	 	 	 
	October 2, 2014	 	October 2, 2014

 

    	7Exhibit
10.3

 

	 ZAOZHUANG BANK	Contract No.: 2014 Zao Yin Jie Zi 10020602 No. 00005

 

Working Capital Loan Contract

 

Lender: Zaozhuang Bank Co., Ltd. Junshan
Road Sub-branch

 

Borrower: Synthesis Energy Systems
(Zaozhuang) New Gas Co., Ltd.

 

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Special notes: This Contract is entered into by and between
the Lender and the Borrower through consultation based on equality and free will, and all terms and conditions hereof are genuine
intentions of both the Lender and the Borrower. In order to protect the legitimate rights and interests of the Borrower, the Lender
hereby asks the Borrower to give full attention to the contents of all terms regarding the rights and obligations of both parties.

 

	Borrower (Party A):	Synthesis Energy Systems (Zaozhuang) New Gas Co., Ltd.

	Domicile:	No. 2 Hengshan Road, Xuecheng District

	Legal representative:	John Winter

	Account-opening financial institution and account No.:	 

	Tel or fax:	0632-4161799 

	Postal code:	277000

	Lender (Party B):	Zaozhuang Bank Co., Ltd. Junshan Road Sub-branch

	Domicile:	No. 67 North Zhenxing Road

	Legal representative:	Zhou Changtao

	Tel or fax:	3398035

	Postal code:	277100

 

Upon the equal consultation of both parties,
the Lender and the Borrower, in order to specify the rights and obligations of both parties, hereby sign and enter into this Contract
after reaching an agreement in respect of the Lender’s granting of loans to the Borrower in accordance with relevant national
laws and regulations.

 

Article 1       Definitions
and interpretation 

 

1.1   Unless otherwise provided
in this Contract, the following terms herein shall have the following meanings:

 

1.1.1   Loan amount: the
total amount of loans provided by the Lender to the Borrower pursuant to this Contract.

 

1.1.2   Loan term: the period
of time extending from the granting date of the first loan to the day when the Borrower pay off all the loan principal and interest
as provided herein.

 

1.1.3   Available period:
the period of time that the Borrower withdraws loans as agreed herein, including the period of time that both parties agree to
postpone the withdrawal through consultation.

 

1.1.4   Eligible withdrawal
period: the period of time extending from the effective date of this Contract to the day when the Borrower specified in this Contract
makes the first withdrawal.

 

1.1.5   Date of withdrawal:
the day when each loan hereunder is transferred to the account of the Borrower.

 

1.1.6   Repayment period:
the period of time extending from the time when the Borrower specified in this Contract repays the loan principal and interest
the first time to the time when the Borrower pays off all the loan principal and interest, including the period of repayment decided
anew by both parties through consultation.

 

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1.1.7   Grace period: the
period of time extending from the first loan granting date agreed in this Contract to the day when the Borrower repays the loan
principal the first time.

 

1.1.8   Shareholder: investor
of the Borrower holding the equity of the Borrower, including the successor and assignee of equity.

 

1.1.9   Workday: working
days of the Lender excluding the legal festivals/holidays and public holidays set by the state.

 

1.1.10   Guarantee-related
document: legal documents and relevant materials signed for the purpose of assuring the performance of this Contract, including
letter of guarantee/standby letter of credit, contract of guarantee, mortgage contract, pledge contract, and letter of commitment,
etc.

 

1.2   Unless otherwise provided
herein, this Contract shall be interpreted in accordance with the following rules:

 

1.2.1   Loan ratio of the
Lender: the proportion of loans provided by the Lender herein to all of its loans.

 

1.2.2   “Maturity”
includes the circumstances where the Lender announces the early maturity of debts in accordance with the provisions of this Contract
or national laws and regulations.

 

1.2.3   “Substantially
unfavorable circumstances” include but not limited to the following ones: the Borrower has fully or partly loses its repayment
capacity; the guarantor’s guaranteeing capacity decreases significantly due to its deteriorated financial situation or other
causes; the decrease in the value, destruction, loss, or expropriation of the guaranties or dispute over their ownership is enough
to have an impact over the Lender’s exercise of hypothec; the decrease in the value of the pledge is enough to have impact
over the Lender’s exercise of the right of pledge.

 

1.2.4   The term “include”
does not contain restrictive meaning under this Contract.

 

1.2.5   “Laws and
regulations” include laws, administrative regulations, local regulations, rules, judicial interpretation and any provisions
of legal effect of the People’s Republic of China.

 

Article 2        Loan purpose

 

The loans hereunder may be used for the
following purpose, and without the written consents of the Lender, the Borrower shall not use them for any other purposes. The
Lender has the right to supervise the use of the funds concerned.

 

Loan purpose: purchase of raw materials.

 

Article 3       Loan amount,
term and type 

 

3.1   The loan currency
hereunder is RMB, and the amount is RMB 20,000,000            (in
words: Renminbi Erqianwan Yuan             ) (should
there be any inconsistency between the amounts represented in numbers and words, the latter shall prevail).

 

3.2   The loan term hereunder
extends from October 2, 2014 to September 23, 2015, starting from the actual date of withdrawal (starting from the
date of first withdrawal if withdrawal is made in installments), and the actual date of withdrawal is subject to the IOU.

 

3.3   The loan type hereunder
is short-term loan.

 

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Article 4       Guarantee

 

Except the credit loan, the Borrower shall
provide legitimate and valid guarantee recognized by the Lender for the performance of its obligations hereunder. The contract
of guarantee shall be signed separately.

 

4.1   Where the loan hereunder
is guarantee-based, the guarantee shall be a joint and several liability guarantee.

 

4.2   Where the loan guarantee
hereunder is provided in the mode of ceiling amount guarantee, the corresponding contract of ceiling amount guarantee shall be
made as below:

 

No. of the contract of ceiling amount guarantee:
2014 Zao Yin Bao Zi 1002602 No.00005

 

Guarantor: Shandong Weijiao Group Xuecheng
Energy Co., Ltd.

 

4.3   Where the loan hereunder
is mortgage or pledge based, the corresponding mortgage or pledge contract shall be made as follows:

 

No. of mortgage or pledge contract: 2014
Zao Yin Di Zi 10020602 No. 00005

 

Mortgager or pledger: Synthesis Energy
Systems (Zaozhuang) New Gas Co., Ltd. 

 

4.3.1   Should the guaranties
hereunder are damaged, depreciated, involved in any ownership dispute, impounded or sealed up, or the mortgager disposes the guaranties
without authorization, or the guarantor providing the assurance guarantee encounters unfavorable changes in its financial situation
or other changes harmful to the creditor’s right of the Lender, the Borrower shall lose no time to notify the Lender and
otherwise provide other guarantee recognized by the Lender.

 

4.3.2   Where the loan hereunder
is guaranteed by pledging the accounts receivable, within the effective period of this Contract, the Lender is entitled to announce
the early maturity of the loans in question and ask the Borrower to repay the loan principal and interest immediately in part or
in whole, or to add legitimate, valid and sufficient guarantee recognized by the Lender, under any of the following circumstances:

 

(1) The bad debt rate of the accounts receivable
payable to the payee of accounts receivable (the pledger) by the payer keeps rising continuously for 2 months;

 

(2) The amount of accounts receivable from
the payer which are mature but not collected by the payee of accounts receivable (the pledger) accounts for more than 5% of the
remaining amount of accounts receivable from the payer;

 

(3) The payee of accounts receivable (the
pledger) has any trade dispute (including, without limitation, disputes over quality, technology and service) or debt dispute with
the payer or any other third party, resulting in that the accounts receivable cannot be paid as scheduled upon maturity.

 

Article 5       Interest
rate and the interest accruing and settling methods 

 

5.1   Loan interest rate

 

5.1.1   The first
of the following methods shall be adopted to determine the interest rate of the loan in RMB:

 

(1) Fixed interest rate: The loan rate
floats (up√/down) _50_% based on the benchmark interest rate of the same level in the same period published
by the People’s Bank of China that corresponds to the date of withdrawal of each loan October 2, 2014 (the
term of the loan/the loan term specified in Article 3.2 hereof), till the date of loan maturity. The specified interest rate adopted
shall be subject to the corresponding loan certificate.

 

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(2) Floating interest rate: The loan rate
floats (up/down) __/__% based on the benchmark interest rate of the same level in the same period published by the People’s
Bank of China that corresponds to the date of withdrawal of each loan _____/______ (the term of the loan/the loan term specified
in Article 3.2 hereof). The specified interest rate shall be subject to the corresponding loan certificate in line with the interest
rate floating rules as agreed in this Contract.

 

The interest rate shall be adjusted every_____/____
(in words) month(s). During the repayment period, in the event that the People’s Bank of China adjusts the benchmark interest
rate of loan, from the loan corresponding date in the first month of the next period after the adjustment of benchmark interest
rate, the Lender may determine the new loan interest rate according to the benchmark interest rate of the same level for the corresponding
period after adjustment and the floating extent agreed in this Contract without a separate notice to the Borrower. In the event
the adjustment date of benchmark interest rate falls on the loan granting date or the loan corresponding date in the first month
of such adjustment period, the new loan interest rate shall be determined since the adjustment date of benchmark interest rate.
Where there is no such loan corresponding date, the last day in the first month of the period shall be deemed as the loan corresponding
date.

 

5.1.2   The       /       of
the following methods shall be adopted to determine the interest rate of loan in a foreign currency:

 

(1) The interest rate formed by   /   (in
words)-month    /   (LIBOR/HIBOR) + /   % of spread shall
be adjusted every    /    (in words) month(s). LIBOR/HIBOR here refers to the London
Interbank Offer Rate / Hong Kong Interbank Offer Rate for the corresponding term two workdays immediately prior to the value date
announced by Reuters.

 

(2) The adopted monthly interest rate is   /   ‰,
valid till the loan maturity date.

 

(3) Other methods _________________/____________________________.

 

5.2   Punitive interest
rate

 

5.2.1   In the event that
the Borrower fails to use the loan for the purposes as stipulated herein, the Lender shall, from the default date, collect the
punitive interest for the default part at the rate of 80% of the adopted loan interest rate agreed herein to the
extent that all principal and interest have been paid off. During the default period, in the event that the benchmark interest
rate for RMB loan of the same period is raised by the People’s Bank of China, the rate for such punitive interest shall be
raised from the adjustment date of the benchmark interest rate accordingly.

 

5.2.2   In the event that
the Borrower fails to repay the loan principal in accordance with the term stipulated herein, the Lender shall, from the overdue
date, collect the punitive interest for the overdue part at the rate of 40% of the adopted loan interest rate stipulated
herein to the extent that all principal and interest have been satisfied. During the overdue period, in the event that the benchmark
interest rate for RMB loan of the same period is raised by the People’s Bank of China, the rate for such punitive interest
shall be raised from the adjustment date of the benchmark interest rate accordingly.

 

5.3   Compound interest

 

For the interest that the Borrower does
not pay as scheduled, the Lender shall collect the compound interest from the day when the interest is not paid as scheduled on
a  / (quarterly/monthly) basis. For the interest not paid as scheduled within the loan term, compound interest will be collected
at the loan interest rate as agreed in this Contract, but starting from the loan maturity date, compound interest will be collected
at the overdue punitive interest rate as agreed herein. For the interest not paid as scheduled in the period of overdue or default
use of loan, compound interest will be collected at the punitive interest rate as agreed herein.

 

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5.4   Interest accruing
and settling methods

 

5.4.1   The interest of
loan hereunder shall be settled on a   monthly    (monthly/quarterly) basis,
and the settlement date shall be the 20th day of every    month   (month/last
month of every quarter).

 

5.4.2   The loan interest
hereunder shall, on the basis of 360 days a year, be collected according to the actual loan balance and the number of days used
from the day when the Borrower withdraws the loan.

 

5.4.3   The Borrower shall,
prior to the settlement date, transfer the payable interest into the account stipulated in Article 10.1 of this Contract, and irrevocably
entrust the Lender to deduct such interest from the account directly. If the last repayment date of the loan principle does not
fall on the interest settlement date, the unpaid interest shall be paid off with the principal.

 

5.4.4   For the loan to
which a fixed interest rate is applied, the interest shall be calculated at the agreed interest rate upon the settlement of interest.
For the loan to which a floating interest rate is applied, the interest rate shall be calculated at the interest rate determined
in each floating period. Where the interest rate floats more than once within a single interest settlement period, the interest
in each floating period shall be calculated first, and then the interest within the interest settlement period shall be calculated
by summing the interest in all floating periods on the date of interest settlement.

 

Article 6        Revolving
loan

 

6.1   Where the loan hereunder
may be used in a revolving manner, within the use term of revolving loan line, the loan balance of the Borrower at any time may
not exceed the revolving loan line; the loan term for each withdrawal of the Borrower shall extend from the actual withdrawal date
to the agreed repayment date, subject to what is written on the IOU, and the repayment date of each withdrawal may not exceed the
use term of revolving loan line.

 

6.2   Where the loan hereunder
may be used in a revolving manner, the Lender is entitled to cancel the revolving loan line if the Borrower fails to make any withdrawal
for three consecutive months starting from the execution of this Agreement.

 

Article 7        Special
provisions on revolving loan (optional clause, this article is □ applicable □ not applicable) 

 

7.1   Where the loan hereunder
may be used in a revolving manner, the loan amount and loan term set out in Article 3 above shall be the revolving loan line and
use term of revolving loan line. Specifically, the use term of revolving loan line shall start from the effective date of this
Contract.

 

7.2   For the RMB revolving
loan to which a floating interest rate is applied, the benchmark interest rate shall be determined according to the benchmark interest
rate of the People’s Bank of China for the level corresponding to each loan term.

 

7.3   In addition to interest,
the Borrower shall also pay commitment charges to the Lender. The commitment charges shall be paid in the __/__ of the following
methods:

 

(1) to be paid to the Lender in a lump
sum upon the effective date of this Contract at __/_% of the revolving loan line.

 

    	6

    	 

    

 

(2) after this Contract comes into effect,
to be paid to the Lender in installments on the 20th day of each __/__(month/quarter/half year) according to the difference
between the revolving loan line and the amount withdrawn by the Borrower (daily mean balance within the charging period) and the
annual fee rate of __/__%, until the day when the use term of the revolving loan line expires.

 

(3)___________________/___________________________

 

Article 8       Terms of
withdrawal

 

8.1   Prior to the first
withdrawal, the Borrower has provided the documents, including articles of incorporation, duplicate of business license, identity
certificate of the legal representative, as required by the Lender. If copies are provided, the corresponding originals shall be
ensured to be true, complete and valid.

 

8.2   Prior to the first
and each withdrawal, the Lender shall meet the following requirements:

 

8.2.1   An account has been
opened as provided in Article 10.1 of this Contract.

 

8.2.2   The Borrower presents
to the Lender the “application of withdrawal” conforming with the provisions of this Agreement, indicating the information
including the reason, purpose and amount of withdrawal, method of payment, and name and account number of the counterparty, provides
duplicates of relevant transaction certificates and other materials, and go through relevant withdrawal formalities in accordance
with relevant provisions and requirements of the Lender.

 

8.2.3   Where the loan hereunder
is borrowed in a foreign currency, the Borrower has properly completed the formalities of approval, registration, delivery and
other statutory formalities related to the said loan hereunder in accordance with the provisions of relevant laws and regulations.

 

8.2.4   Where the loan hereunder
involves mortgage or pledge, relevant formalities for guarantee and insurance needed before the withdrawal as may be required by
the Lender have been duly completed, and such guarantee and insurance shall continuously remain effective. In the event that the
loan hereunder involves an assurance guarantee, the contract of guarantee shall have been executed and come into force.

 

8.2.5   No event of default
specified herein has happened, nor has any other event which may constitute a default occurred.

 

8.2.6   Not any substantially
unfavorable circumstance as defined herein has occurred.

 

8.2.7   Any and all representations
and warranties made by the Borrower upon the execution of this Contract shall still keep effective upon the date of withdrawal,
and no any substantially unfavorable change has occurred thereto.

 

8.2.8   If the Borrower
borrows money from any shareholder, the shareholder shall have made a written promise that the principal, interest and payable
fees of the borrowed money will not be collected from the Borrower in part or in whole until the Borrower has paid all the loan
principal, interest and payable fees hereunder.

 

8.2.9   Other requirements
for withdrawal agreed by both parties:

 

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Article 9       Withdrawal

 

9.1   The Borrower of the
loan hereunder shall withdraw loan according its actual needs. The withdrawal period shall extend from October 2, 2014
to October 4, 2014. Specifically, the first withdrawal must be made prior to October 2, 2014, and the
last withdrawal prior to October 4, 2014. Otherwise, the Lender is entitled to cancel the loans in part or in whole.
(This article is not applicable to revolving loan)

 

9.2   Procedure of withdrawal

 

9.2.1   The Borrower shall
open a special account for working capital loan with the Lender, which shall be specially used for loan granting and payment, as
well as capital recovery (see Article 10.1 for details).

 

9.2.2   The Borrower shall
make withdrawal according to its capital turnover needs for day-to-day production and operation. Upon withdrawal, the Borrower
shall submit an “Application of Withdrawal” (in duplicate) to the business department of our bank and provide corresponding
transaction certification. The written documents provided shall be original; if any original cannot be provided, a copy with the
corporate seal of the Borrower may be provided with the consent of the Lender.

 

9.2.3   The Lender may decide
whether to grant the loan or not after examining the materials provided by the Borrower in line with its internal procedure.

 

9.3   If the Borrower fails
to go through the formalities for withdrawal within the withdrawal period as agreed, nor applies for postponing the withdrawal,
the Lender may notify the Borrower, requesting it to go through relevant formalities within five workdays. Should the Borrower
still fail to completing such formalities, the Lender is entitled to cancel or partly cancel the loan not withdrawn, and collect
compensations at the rate of 1% of cancelled amount.

 

Article 10     Account
supervision 

 

10.1   The Borrower shall,
prior to withdrawal, open a general settlement account with the Lender and keep such account until the accounts payable
hereunder are all paid off and all obligations and responsibilities of the Borrower hereunder are completely performed.

 

10.2   The Borrower shall
deposit the amounts, including but not limited to the following money, into the account agreed in Article 10.1 of this Contract:

 

(1) Loan under this Contract;

 

(2) The Borrower’s corresponding
sales income or money planned for repayment. If the corresponding sales income is settled in a non-cash manner, the Borrower shall
ensure that the money can be transferred into the said account in a timely manner.

 

(3) Income of the Borrower obtained during
the process of production and operation;

 

(4) Other money related to operating income
required by the Lender.

 

10.3   In order to the ensure
the exercise of the rights hereunder and the performance of the obligations hereunder, the Lender has the right to supervise the
account opened by the Borrower in accordance with Article 10.1 of this Contract within the effective term hereof in accordance
with relevant provisions on the administration of bank settlement accounts and stipulations hereof.

 

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10.4   The account supervision
includes, without limitation:

 

10.4.1   The withdrawal
of loan and supervision over the use of loan

 

(1) When using the funds borrowed, the
Borrower must provide materials including the application of withdrawal as required by the Lender, and the fund will be granted
to the account with the consent of the Lender after examination and paid externally in the method of payment as stipulated herein;

 

(2) Where the Borrower’s application
for the use of loan fails to conform to the fund use plan or purpose, the Lender is entitled to refuse the granting of the loan,
but it shall give written notice to the Borrower, indicating the reason for refusal.

 

10.4.2   The Borrower shall
cooperate with the inquiry and supervision over the incomes and expenses of the account. Upon the request of the Lender, the Borrower
shall sign a special account supervision agreement with the Lender.

 

10.4.3   Supervision over
production and operating incomes

 

(1) The incomes made by the Borrower during
its day-to-day production and operation, shall be deposited into the account stipulated in Article 10.1 of this Contract __/__
(fully/at the amount not less than the loan ratio of the Lender).

 

(2) Supervision over the repayment of loan
with incomes. Except some necessary expenses, the Borrower shall use the operating income first for repaying the loan hereunder.

 

10.5   The Borrower undertakes
that all the money withdrawn and transferred out of the account stipulated in Article 10.1 of this Contract shall only be used
for the following payments:

 

(1) The loan principal, interest, penalty,
compensation, payable expenses and other money hereunder;

 

(2) Other necessary expenses that the Borrower
shall pay for its business operation.

 

10.6   The Lender will not
assume any legal liabilities for such measures as refusal of granting loan and restriction over expenditure taken for the purpose
of implementing account supervision as agreed in this Contract.

 

Article 11     Loan granting
and payment 

 

11.1   To withdraw the loan
hereunder, the Borrower must satisfy the following preconditions, otherwise the Lender is not obligated to grant any funds to the
Borrower, excluding those funds that the Lender agrees to grant in advance:

 

(1) Except the credit-based loan, the Borrower
has, as required by the Lender, provided corresponding guarantee and gone through relevant formalities for guarantee;

 

(2) No event of default under the Contract
or other contracts signed by the Borrower and the Lender has happened;

 

(3) The certification for the loan purpose
provided conforms to the agreed purpose.

 

11.2   If the Borrower meets
the preconditions for withdrawal, or with the consent of the Lender to grant loan in advance, the Lender transfers the loan into
the designated account of the Borrower, it shall be deemed that the Borrower has granted the loan to the Borrower as provided herein.

 

11.3   The Borrower shall
pay the loan externally by way of “payment by the Lender upon entrustment” or “payment by the Borrower itself”.
In accordance with relevant regulatory provisions and management requirements of the Lender, the loan exceeding certain amount
or meeting other conditions shall be paid in the manner of “payment by the Lender upon entrustment”, and the Lender
will, according to the Borrower’s application of withdrawal and payment entrustment, pay the loan to the payee conforming
to the purpose agreed herein. For this reason, the Borrower shall sign a separate agreement on entrustment-based payment with the
Lender as an annex hereto, and open or designate a special account with the Lender to handle the matters concerning the entrustment-based
payment.

 

    	9

    	 

    

 

11.4   Payment by the Lender
upon entrustment: It means that the Lender pays the loan funds to the counterparty of the Borrower conforming to the purpose as
stipulated herein according to the Borrower’s application of withdrawal and payment entrustment.

 

11.4.1   In the case of
“payment by the Lender upon entrustment”, the Lender shall submit a “letter of payment entrustment” (in
duplicate) to the Lender while submitting the “application of withdrawal”, expressing its intention to entrust the
Lender to make external payment.

 

11.4.2   The Lender may
decide whether to make external payment as entrusted after examining the contents of entrusted payment in line with its own internal
procedure. If accepting the entrustment, the Lender shall lose no time to pay the money concerned externally in line with the “letter
of payment entrustment” after the funds are granted to the special account of the Borrower.

 

11.5   Payment by the Borrower
itself: It means that the Borrower, on its own, pays the loan funds to the counterparty thereof meeting the purpose as agreed herein
after the said funds are granted by the Lender to the Borrower’s account upon its application for withdrawal.

 

11.5.1   In the case of
“payment by the Borrower itself”, the Borrower shall, after the loan funds are granted to the special account of the
Borrower, lose no time to pay the said money to counterparty thereof determined for the payment concerned, and the Lender has the
right to supervise the payment act of the Borrower. If it is required to withdraw cash, the Borrower shall lose no time to transfer
the funds from the special account into the basic account.

 

Article 12     Repayment

 

12.1   Source of repayment

 

12.1.1   The financial source
of the Borrower for repaying the loan principal and interest hereunder include, without limitation:

 

(1) Operating incomes                                                                 ;

 

(2)________________________________________________;

 

(3)________________________________________________.

 

12.2   Sequence of repayment

 

12.2.1   Any repayment of
the Borrower hereunder shall be made in the sequence to the repay the previous loans first and then the current loans. That is
to say, the sequence of repayment is based on date of maturity: first the loans which become mature earlier, and then those which
become mature later.

 

12.2.2   In case that the
amount repaid by the Borrower is not sufficient to discharge the payables hereunder, the Lender may elect to use such amount to
repay the principal, interest, punitive interest, compound interest or relevant fees.

 

12.3   Repayment schedule

 

12.3.1   The grace period
hereunder is ___/____(in words, year/month), starting from the day the first loan is granted. During the grace period, the Borrower
is not required to repay the loan principal.

 

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12.3.2   The Borrower shall
fully pay the interest as provided herein, and repay the loan principal as agreed in the first of the following methods:
(optional)

 

(1) Repayment of loan principal in a lump
sum on September 23, 2015.

 

(2) Repayment of loan principal in installments
in a period extending from __/__(date) to __/__(date). The specific repayment schedule is shown as follows:

 

	Time of repayment 	 	Amount of repayment 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

(Notes: 1 The time of repayment in
the table may be based on time point and time range. 2 A sheet added due to the limited space of the table shall constitute
a part hereto, and shall have articles linking hereto.)

 

12.4   Method of repayment

 

The Borrower shall fully repay the loan
principal, interest, and other payables on schedule as agreed herein. The payables in the current period shall, at a banking workday
prior to the repayment date and each interest settlement date, be deposited into the account as agreed in Article 10.1 hereof,
and the Lender is entitled to deduct such money on its own on the repayment date or interest settlement date, or require the Borrower
to provide cooperation in going through relevant formalities for such funds transfer so that it may perform its repayment obligations
in full. If the money in the repayment account is not enough to pay all the Borrower’s mature payables, the Lender is entitled
to decide the sequence of repayment.

 

12.5   Early repayment

 

12.5.1   In the event of
early repayment, the Borrower shall submit a written application to the Lender 10 workdays in advance, and make the early repayment
after reaching an agreement with Lender upon consultation.

 

12.5.2   Upon the early
repayment of the Borrower, the interest for the early-repaid part shall be collected in the __/_ of the following methods, with
interest being paid off with the principal.

 

(1) to collect the interest according to
the actual loan term and the interest rate agreed herein;

 

(2) to collect the interest according to
the loan term and interest rate agreed herein;

 

(3) to collect the interest in accordance
with actual loan term at the interest rate stipulated herein plus__/___(in words) percent (but the actual amount of interest collected
may not exceed the amount of interest accrued according to the loan term and interest rate stipulated herein.

 

(4) other method

 

    	11

    	 

    

 

12.5.3   Where the Borrower
makes early repayment, the principal repaid may not be less than RMB ____/___ and shall also be integral multiple of RMB 100,000.

 

12.5.4   If the Lender agrees
with the early repayment, the Borrower shall, upon the early repayment date, also pay off the payable loan principal, interest
and other money accrued until the early repayment date as stipulated herein.

 

12.5.5   Where the actual
loan term is shortened because the Borrower makes early repayment or the Lender takes back loans as provided herein, the corresponding
level of interest rate will not be adjusted and the original loan interest rate shall still be adopted.

 

12.6   Extension

 

Where the Borrower cannot repay loans in
line with the repayment schedule as agreed herein, it may apply to the Lender for extension. The Borrower shall submit the application
for extension to the Lender at least 15 workdays prior to the loan maturity date, and after the Lender’s examination and
approval, the Lender may enter into a loan extension agreement with the Borrower.

 

12.7   The Lender has the
right to take back loans according to the capital recovery situation of the Borrower.

 

Article 13     Inspection
over the use of loan funds 

 

13.1   After granting loans,
the Lender is entitled to inspect the use of loan funds hereunder either in an on-site or off-site manner. The Borrower shall,
as required by the Lender, submit the report on use of loan funds, corresponding certificates for payment of funds, and performance
of trading contract, etc. in a timely manner. The Lender’s inspection and supervision shall cover the following areas, including
without limitation:

 

(1) Whether the Borrower has used the loans
for the purposes stipulated herein, and whether the loans have been used for engaging in speculation in the areas, including equity
capital investment, marketable securities, and futures, which are prohibited by the state explicitly;

 

(2) Other circumstances over which the
Lender deems it necessary to carry out inspection.

 

13.2   Where the Lender,
during its inspection, discovers that the production and operation of the Borrower is affected by the improper use of funds, it
may request the Borrower to make corrections with a given period. If the Borrower fails to make corrections within the given period,
the Lender may require the Borrower to assume the liability for breach of contract as provided in Article 17 hereof.

 

13.3   The Lender may visit
the Borrower on a regular or irregular basis, to learn relevant information in the following ways:

 

(1) listening to the report of the Borrower
on its business scope, core businesses, production and operation, business plan and major investment plans within the loan term,
etc.;

 

(2) introduction about the Borrower’
industry made by the Borrower;

 

(3) the Borrower’s total need of
working capital and current financing liabilities;

 

(4) real financial situation of the Borrower
in respect of accounts receivable, accounts payable, and stock-in-trade, etc.

 

(5) Information on the related parties
and related transactions of the Borrower;

 

(6) Information on the specific loan purposes
and capital usage of the counterparty related to the loan purposes;

 

    	12

    	 

    

 

(7) Information on the source of repayment,
including the cash flow, consolidated incomes and other legitimate incomes generated from production and operation;

 

(8) Checking the financial and accounting
data of the Borrower such as financial statement, accounting documents, and account books, as well as other relevant information,
and checking the financial and capital situation of the Borrower.

 

Article 14     Representations
and warranties of the Borrower 

 

The Borrower makes the following representations
and warranties to the Lender and keeps them valid throughout the effective term of this Contract:

 

14.1   It lawfully has the
right as principal of a Borrower, and is qualified and able to sign and perform this Contract.

 

14.2   It has obtained all
necessary authorizations or approvals to sign this Contract, and the execution and performance hereof will not go against the provisions
of its articles of incorporation and relevant laws and regulations, nor be in conflict with the obligations that it shall assume
under other contracts.

 

14.3   Other payable debts
have been paid off on schedule and it does not have any malicious act to default on the loan principal and interest of any bank.

 

14.4   It has well-established
organizational structure and financial management rules. In the latest year, no substantial breaching behavior has occurred during
its production and operation, and none of the current senior executives has any substantially bad record.

 

14.5   All the documents
and data provided to the Lender are true, accurate, complete and valid, free of any falsified record, material omissions or misleading
information.

 

14.6   The financial accounting
reports provided to the Lender are compiled in accordance with the Chinese Accounting Standards, reflecting the operation conditions
and liabilities of the Borrower truthfully, fairly and completely, and no substantially unfavorable changes have occurred to the
financial situation of the Borrower since the closing date for the latest financial accounting report.

 

14.7   It has not concealed
any litigation, arbitration or claim for compensation that it has got involved in.

 

Article 15     Undertakings
of the Borrower

 

15.1   It shall withdraw
and use the loans in line with the term and purposes agreed herein, and the funds borrowed will not be used for investment in fixed
assets and equity, nor flow into the securities market and futures market in any ways, nor be used for other purposes that are
prohibited or restricted by relevant laws and regulations in any ways.

 

15.2   It shall pay off
the loan principal, interest and other payables as stipulated in this Contract.

 

15.3   It will accept and
actively cooperate with the inspection and supervision of the Lender over the use of loan funds (including the purpose) by way
of account analysis, inspection of certificates, and on-site investigation, and report the use of loan funds as required by the
Lender on a regular basis.

 

    	13

    	 

    

 

15.4   It will accept the
credit investigation of the Lender, provide financial and accounting data including balance sheet and income statement and other
materials which may reflect the solvency of the Borrower as required by the Lender, and actively provide assistance and cooperation
to the Lender to investigate, understand and supervise its production, operation, and financial situation.

 

15.5   It will not distribute
any dividends and bonus in any form before paying off the loan principal and interest and other payables hereunder.

 

15.6   When launching any
action that may cause unfavorable impact to the rights and interests of the Lender, such as merger, split-off, capital reduction,
changes in equity, substantial transfer of assets and creditor’s rights, substantial foreign investment, substantial increase
in debt financing, the Borrower shall first get the written consent of the Lender or make arrangement regarding the realization
of creditor’s rights of the Lender that is satisfactory to the Lender.

 

15.7   Under any of the
following circumstances, the Borrower shall send a timely notice to the Lender:

 

(1) Change in articles of incorporation,
business scope, registered capital, and legal representative;

 

(2) Shutdown, dissolution, liquidation,
business suspension for rectification, and revocation of business license, cancellation, or application (being applied) for bankruptcy;

 

(3) Involvement or possible involvement
in substantial economic dispute, litigation, arbitration, or sealing-up, sequestration or control of assets under law;

 

(4) Involvement of any shareholder, director
or current senior executive in any major cases or economic disputes.

 

15.8   It shall disclose
the relations with any related parties and the related transactions to the Lender in a timely, comprehensive and accurate manner.

 

15.9   It shall sign and
receive the relevant notices sent or served in other ways by the Lender in a timely manner.

 

15.10   It may not dispose
its own assets by reducing its solvency, nor provide any guarantee for any third party that will impair the rights and interests
of the Lender.

 

15.11   Where the loans
hereunder are granted in a credit-based manner, it shall regularly report the external guarantee information to the Lender fully,
truthfully, and accurately, and sign an account supervision agreement as required by the Lender. Where the external guarantee may
affect its performance of obligations hereunder, it shall obtain the written consent of the Lender.

 

15.12   It shall bear all
the costs for the execution and performance of this Contract and the expenses that have been paid or are payable by the Lender
with a view to realizing the creditor’s right hereunder, including, without limitation, litigation or arbitration fees, property
preservation fees, lawyer’s fees, execution cost, assessment charges, auction fees, and announcement expenses.

 

15.13   The debts hereunder
shall be paid off in an order taking priority over those debts owed to shareholders, and remain at least at an equal level compared
with other similar debts of the Borrower to other creditors.

 

Article 16     Undertakings
of the Lender 

 

16.1   It shall grant the
loans to the Borrower as agreed herein.

 

16.2   It shall keep all
the non-public information and data provided by the Borrower confidential, except for those as otherwise provided in relevant laws
and regulations and in this Contract.

 

    	14

    	 

    

 

Article 17     Liability
for breach of Contract

 

17.1   Any of the following
circumstances shall constitute the default of the Borrower:

 

(1) The Borrower fails to repay the loan
principal and interest as well as other payables hereunder as agreed herein, or fails to perform any other obligations hereunder,
or breaches any representation, warranty or undertaking hereunder;

 

(2) In the event of any change in the guarantee
hereunder which is unfavorable to the creditor’s rights of the Lender, the Borrower fails to otherwise provide other guarantee
acceptable to the Lender;

 

(3) The Borrower fails to pay off any other
mature debts (including those about which an early maturity are announced), or fails to perform or goes against the obligations
under other agreements, which has affected or may affect its performance of the obligations hereunder;

 

(4) The financial indicators of the Borrower
such as profit-making capacity, solvency, operating capacity and cash flow break the stipulated criteria, or become deteriorated,
which has impaired or may impair its performance of obligations hereunder;

 

(5) A substantially unfavorable change
happens to the shareholding structure, production and operation, and foreign investment of the Borrower, which has impaired or
may impair its performance of obligations hereunder;

 

(6) The Borrower gets involved or is likely
to get involved in any substantial economic dispute, litigation, arbitration, or has its assets sealed up, sequestrated or under
any specific performance, or it is investigated in a case placed on file or imposed punitive measures by any judicial authority
or administrative authority under law, or it is exposed by media as a result of violating relevant national provisions or policies,
which has impaired or may impair its performance of obligations hereunder;

 

(7) The main individual investors and key
executives of the Borrower undergo abnormal change, get lost, or are investigated or have their freedom restricted by any judicial
authority pursuant to laws, which has impaired or may impair its performance of obligations hereunder;

 

(8) The Borrower fraudulently obtains the
funds or credit from the Lender by making use of false contracts with the related parties and transactions without real trading
background, or intentionally evades the creditor’s rights of the Lender relying on related transactions;

 

(9) The Borrower has got or may get involved
in shutdown, dissolution, liquidation, business suspension for rectification, and revocation of business license, cancellation,
or application (being applied) for bankruptcy;

 

(10) The Borrower has caused any negligent
accident due to its violation of relevant laws and regulations, regulatory provisions or industrial standards on food safety, production
safety and environmental protection, which has impaired or may impair its performance of obligations hereunder;

 

(11) Where the loans hereunder are granted
in a credit-based manner, the indicators of the Borrower, including credit rating, profitability, asset-liability ratio, and net
cash flow from business activities, fail to meet the credit-based loan requirements of the Lender; or without the written consent
of the Lender, the Borrower sets its effective business assets as mortgage/pledge guarantee for others, or provides external guarantee,
which has impaired or may impair its performance of obligations hereunder;

 

    	15

    	 

    

 

(12) Other circumstances that may result
in unfavorable impact to the Lender in realizing its creditor’s right hereunder.

 

17.2   Upon the default
of the Borrower, the Lender is entitled to take one or more of the following measures:

 

(1) Requiring the Borrower to correct its
breaching behavior within a time limit;

 

(2) Stopping extending to the Borrower
loans or other financing funds under this Contract or other contracts reached by and between the Lender and the Borrower, and canceling
in part or in whole the loans and other financing funds that the Borrower has not withdrawn;

 

(3) Announcing that the unpaid loans under
this Contract or other contracts reached by and between the Lender and the Borrower become mature immediately and take back the
unpaid money immediately;

 

(4) Requiring the Borrower to compensate
all losses suffered by the Lender owing to the former’s breach of contract;

 

(5) Other measures provided in relevant
laws and regulation, stipulated in this Contract, or deemed to be necessary by the Lender.

 

17.3   Where the Borrower
fails to make repayment as agreed upon the loan maturity (including the early maturity announced), the Lender is entitled to collect
any punitive interest at the overdue punitive interest rate stipulated in this Contract since the overdue date. For the interest
not paid by the Borrower on schedule, compound interest will be collected at the overdue punitive interest rate.

 

17.4   Where the Borrower
fails to use the loans for the purposes stipulated herein, the Lender is entitled to collect punitive interest for the misappropriated
part at the punitive interest rate for misappropriation of loans as stipulated herein since the date when the loan is misappropriated,
and for the interest not paid on schedule within the period of misappropriation, compound interest will be collected at the punitive
interest rate for misappropriation of loans.

 

17.5   Where the Borrower
gets involved in the circumstances as mentioned both in Articles 17.3 and 17.4 above, the higher punitive interest rate rather
than the superposed rate will be adopted.

 

17.6   Where the Borrower
fails to repay the loan principal, interest (including punitive interest and compound interest) or other payables, the Lender is
entitled to expedite the collection via announcement on media.

 

17.7   Where there is any
change in relations of controlling and being controlled between the related parties of the Borrower and the Borrower, or the related
parties of the Borrower get involved in circumstances other than those mentioned in Items (1) and (2) of Article 17.1 above, which
has or may have affected the performance of the obligations hereunder by the Borrower, the Lender is entitled to take various measures
as stipulated herein.

 

Article 18     Deduction

 

18.1   Where the Borrower
fails to repay the mature debts hereunder (including those which are announced to be mature immediately) as agreed in this Contract,
the Lender is entitled to deduct the corresponding funds from all the accounts both in home and foreign currencies opened by the
Borrower with other sub-braches of our bank for repayment till all the debts of the Borrower hereunder are paid off completely.

 

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18.2   When the deducted
funds are not of the same currency as that provided herein, the said money will be converted at the applicable exchange rate of
the Lender upon the date of deduction. The interest and other fees accruing during the period from the date of deduction to the
date of clearance (the day when the Lender converts the deducted funds into the currency hereunder in accordance with national
policies on administration of foreign exchange and has the debts hereunder cleared actually), as well as the difference arising
from the fluctuation in foreign exchange rate during this period shall all be borne by the Borrower.

 

18.3   Where the funds deducted
by the Lender are not enough to clear all debts of the Borrower, the Lender is entitled to decide the sequence of clearance.

 

Article 19     Rights and
obligations of the Borrower 

 

19.1   It may withdraw and
use the loans in line with the terms agreed herein.

 

19.2   It shall repay the
loan principal and interest in full on schedule.

 

19.3   It shall deal with
the settlement of account current and deposits related to the loans hereunder through the account stipulated in Article 10 hereof.

 

19.4   Where the loan hereunder
is borrowed in a foreign currency, it shall duly go through the formalities of approval and registration as well as other statutory
formalities related to the said loan in accordance with relevant provisions; for the loan in foreign currency, the Borrower cannot
use it for foreign exchange settlement.

 

19.5   The Borrower shall
accept and actively cooperate with the inspection and supervision carried out by the Lender and the entities or individuals entrusted
thereby over its financial activities and the use of loan funds hereunder.

 

19.6   Where the Borrower
has any of the following acts within the effective term of this Contract, it shall send a prior written notice to the Lender, and
with the consent of the Lender, implement the measures for paying off debts or pay off debts in advance:

 

(1) acts enough to result in change in
the relation between creditor’s rights and liabilities hereunder or affect the realization of creditor’s rights by
the Lender, including contracting, lease, joint-stock transformation, joint operation, consolidation, merger, split-off, reduction
in registered capital, joint venture, transfer of assets, foreign investment, application for business suspension for rectification,
application for dissolution, application for bankruptcy;

 

(2) acts that may affect its solvency hereunder,
such as providing guarantee for debts of others, or mortgaging and pledging its primary assets for a third person;

 

(3) acts to mortgage and pledge the project
assets formed with the loan hereunder for any third party.

 

19.8   Where the Borrower
gets involved in any of the following events, it shall, within five workdays after the occurrence of such events, notify the Lender
in writing and implement the measures for preserving the creditor’s rights acceptable to the Lender:

 

(1) Its legal representative or chief executive
involving in any illegal activities;

 

(2) Production halt, shutdown, cancellation
of registration, revocation of business license, being cancelled, or being applied for bankruptcy;

 

(3) Deterioration of financial situation
or serious difficulty in production and operation, or involvement in substantial litigation or arbitration event;

 

    	17

    	 

    

 

(4) Other events that are of substantially
unfavorable impact to the realization of creditor’s rights by the Lender.

 

19.9   Upon any of the following
events, the Borrower shall, within five workdays after the occurrence of such event, notify the Lender in writing:

 

(1) Change in subordination relation and
top management members, as well as adjustment in organizational structure;

 

(2) Alteration to matters regarding industrial
and commercial registration such as its name, domicile, legal representative, and business scope;

 

(3) Increase in registered capital and
modification to articles of incorporation;

 

(4) Change in other major matters of the
Borrower.

 

19.10   The Borrower and
its investors shall not draw out their capital illegally, transfer their assets or assign their shares without permission to evade
the Borrower’s debts owed to the Lender.

 

19.11   The Borrower may
not sign any agreement or document that is enough to impair the interests of the Lender, or engage in any matter that is enough
to damage the interests of the Lender.

 

19.12   The Borrower shall
timely report to the Lender any breaching behavior specified herein that has happened or will happen.

 

19.13   Where the guarantor
for the loans hereunder gets involved in the circumstances including production halt, shutdown, cancellation of registration, revocation
of business license, bankruptcy or being cancelled and business losses, which makes the guarantor lose its guaranteeing capacity
related to the loans hereunder in part or in whole, or the value of the guaranties or pledged assets as a security for the loans
hereunder is reduced, damaged or lost accidentally, the Borrower shall forthwith provide other guarantee acceptable to the Lender.

 

19.14   The Borrower shall
bear all the charges and expenses for legal service, insurance, transport, assessment, registration, safe-keeping, authentication,
and notarization, etc. related to this Contract and the guarantee hereunder.

 

Article 20     Rights and
obligations of the Lender 

 

20.1   It is entitled to
inspect and supervise the Borrower’s financial situation, inventory and use of loan funds, and demand the Borrower to provide
the documents, materials and information such as financial statement periodically.

 

20.2   Where the Borrower
has any unfavorable acts or gets involved in any unfavorable situation which is enough to endanger the safety of the loans hereunder,
including but not limited to those specified in Article 18 hereof, the Lender may stop granting loans and take back the part granted
in advance.

 

20.3   When taking back
or taking back in advance the loan principal, interest, punitive interest, compound interest and other payables from the Borrower
in accordance with the terms hereunder, the Lender may make direct deduction from any account of the Borrower.

 

20.4   The Lender shall
grant loans to the Borrower in full and on schedule in accordance with the terms stipulated herein, but excluding the postponement
owing to the fault of the Borrower or other persons rather than the Lender.

 

    	18

    	 

    

 

20.5   The Lender shall
give a reply to the application of the Borrower within the time limit as agreed in this Contract. In the event that it fails to
do so, it shall be deemed that the Lender reject the application of the Borrower unless otherwise provided herein.

 

20.6   For any substantial
breaching behavior of the Borrower such as escaping the supervision of the Lender, and default on the loan principal and interest,
the Lender is entitled to impose credit sanction, report to relevant authorities or entities, and disclose the said behavior to
the public.

 

20.7   The Lender has the
right to transfer its rights hereunder in part or in whole to any third party, and such transfer does not need the consent of the
Borrower. Without the written consent of the Lender, the Borrower may not transfer any of its rights and obligations hereunder.

 

Article 21     Confidentiality

 

21.1   Either party is obligated
to keep confidential the business secrets or other interest-related information of the other party known in the execution and performance
of this Contract. Unless otherwise provided in laws and administrative regulations, without the permission of the other party,
none of the aforesaid information may be disclosed or divulged to a third party.

 

21.2   Unless otherwise
provided herein, without the consent of the other party, either party may not disclose any information of this Contract and non-public
information related hereto to any third party.

 

To extent permitted by relevant laws and
regulations, the Lender may disclose data or information related hereto to the regulatory authorities, its superior bank, branches,
and assignee of the creditor’s right.

 

Article 22     Effectiveness,
alteration, and rescinding of Contract 

 

22.1   This Contract shall
come into effect as from the date of execution and keep effective till the day when the Borrower performs all obligations hereunder.

 

22.2   Any alteration to
this Contract shall be made in a writing based on an agreement reached by both parties through consultation. The altered clauses
or agreements shall constitute a part hereto and be of the same legal effect as that of this Contract. Except the altered part,
the remaining part of this Contract shall remain effective, and the original clauses remain effective before the altered part comes
into effect.

 

22.3   The alteration and
rescinding of this Contract shall have no impact on the rights of either party to claim compensations for losses. The rescinding
of this Contract will not affect the effect of the clauses on dispute settlement.

 

22.4   This Contract is
made in Three counterparts of the equal legal effect, with the Borrower, the Lender and  recording department
 holding one copy respectively.

 

Article 23     Governing
laws and settlement of dispute 

 

The execution, effect, interpretation,
performance and dispute settlement of this Contract shall be subject to the laws of the People’s Republic of China. For all
disputes and dissensions arising out of this Contract or related hereto, both Party A and Party B shall try to settle them through
consultation. Shall such consultation fail, they shall be settled in the method stipulated herein.

 

    	19

    	 

    

 

Article 24     Notification

 

24.1   All notices hereunder
shall be sent in a written form. Unless otherwise provided, the domiciles specified herein by both parties shall be the addresses
for communication and correspondence. Where either party’s address for communication or other contact method changes, it
shall write to notify the other party in a timely manner.

 

24.2   Where either party
hereto refuses to sign a notice or there is any notice failing to be served, the notifying party may have the notice in question
served by way of notarization or announcement.

 

Article 25     Miscellaneous

 

25.1   If the Lender fails
to exercise, or exercise in part, or delay its exercise of any right hereunder, it shall not constitute its waiver or change of
the right concerned or other rights, nor shall it affect its further exercise of such right or other rights.

 

25.2   The ineffectiveness
or unenforceability of any clause hereof may not affect the effectiveness and enforceability of other clauses hereof, nor the effect
of this Contract as a whole.

 

25.3   The Lender is, in
accordance with the provisions of relevant laws and regulations and the requirements of financial regulatory authorities, entitled
to provide information related hereto and other relevant information of the Borrower to the credit reference system established
by the People’s Bank of China and other credit information databases established under law for inquiry and use by entities
and individuals with appropriate qualifications. The Lender also has the right to inquire relevant information of the Borrower
through the credit reference system established by the People’s Bank of China and other credit information databases established
under law for purposes of executing and performing this Contract.

 

25.4   The terms mentioned
herein, including “related party”, “relation with related party”, “related transaction”, “main
individual investor”, and “key executive”, are of the same meanings as the identical terms defined in the Accounting
Standards for Business Enterprises No. 36 – Disclosure of Related Parties (Cai Kuai [2006] No. 3) promulgated by the
Ministry of Finance of the PRC and the revised versions thereof.

 

25.5   The documents and
certificates of loans hereunder prepared and kept by the Lender according to its business rules shall constitute effective evidences
for proving the relation of creditor’s rights and liabilities between the Lender and Borrower, and have a binding force to
the Borrower.

 

25.6   In this contract,
(1) the references to this Contract shall also cover the alteration or supplementation hereto; (2) the titles of articles are only
for reference, not constituting any interpretation to this Contract, nor restricting the contents under such titles or the scope
thereof; (3) if the withdrawal date or repayment date is not a banking workday, it shall be postponed to the next banking workday
accordingly.

 

Article 26     Settlement
of dispute 

 

26.1   In the event of any
dispute arising during the performance of this Contract, the parties shall try to settle it through consultation. Shall such consultation
fail, either party is entitled to lodge a lawsuit with the people’s court where the Lender is located for settlement through
litigation.

 

26.2   During any litigation,
other clauses herein unrelated to the dispute shall be performed as normal.

 

    	20

    	 

    

 

Article 27     Other matters
as agreed upon by both parties 

 

Article 28     Notes 

 

The Lender has asked the Borrower to understand
the clauses specified herein completely and accurately, and has made explanations on certain clauses as requested by the Borrower.
Both parties hereto have reached agreement on the meaning of this Contract.

 

In addition, the Borrower hereby represents
that it has given special attention to its obligations and those clauses unfavorable to itself and confirmed to accept the same.

 

	Party A: (corporate seal):	 	Party B: (corporate seal):
	 	 	 
	
        Synthesis Energy

Systems

(Zaozhuang)

New
        Gas Co.,

Ltd.

        [seal]
	 	
        Zaozhuang Bank

Co., Ltd.

Junshan Road

Sub-branch

        [seal]

	 	 	 
	Legal representative (signature or seal):	 	Legal representative (signature or seal):
	 	 	 
	
        John Winter

        [seal]
	 	
        Zhou Changtao

        [seal]

	 	 	 
	Entrusted agent: (signature)	 	Entrusted agent: (signature)
	 	 	 
	October 2, 2014	 	October 2, 2014

 

    	21

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