Document:

Exhibit 10.35

Loan Agreement for Small Business Entity

(2009 edition)

Ref: 2011 Xin Jie06007400-173

 

Special tips:

The Agreement is entered on basis of good
faith and equality of parties hereto, reflecting their truthful willingness. For the purpose of safeguarding Client's legitimate
rights and interest, Factoring Bank reminds Client to give full care to each and every term and provision regarding rights and
obligations hereto, particularly content in bold letters.

 

Lender: Dalian Ganjingzi Branch of ICBC

Representative: Li Bingrong Contact: Gong
Chengjie

Address: 17 Ganjingzi Rd, Ganjingzi district,
Dalian; Postcode:

Tel.: 86796618 Fax: Email:

 

Borrower: Dalian Tongda Equipment Co.,Ltd

Legal representative: Wang Yukai contact
person:

Address: Youjia village, Xinzaizi Rd, Ganjingzi
District, Dalian Postcode:

Tel.: 66881719 Fax: Email:

 

After fair negotiation between borrower
and lender, both parties reached agreement of borrowing and loaning, and made this contract.

 

Part one: Borrowing Conditions

 

Section one: Use of loan

Use of the loan is purchasing raw materials,
without written permission from lender, borrower can not appropriate and lender has rights of supervising the use of loan.

 

Section two: Amount of the loan and time
limit

2.1 The currency of the loan is RMB, and
amount is 180000 RMB.

2.2 Time limit: half year. It is counted
down from the date that borrower obtain the money (if borrower take the loan by several times, the date is assumed the first time
of taking out the loan). And the actual withdraw date is based on the receipt.

 

Section three: interest rate, interest
and fees

3.1 approach of setting the interest rate:

(1) Fixed interest rate: annual rate is
7.93%, and in the term, this rate shall remain unchanged.

 

3.2 Not Applicable

3.3 The interest is charged from the actual
withdraw date, and the bear interest is based on months. When loan comes to the due day, borrower should pay the principle and
interest at the mean time and the day rate is equal annual rate/360.

 

    	 

    	 

    

 

3.4 Punishment for delayed payment equals
to interest rate plus 30% of it; and Punishment for appropriation of loans for other use equals interest rate plus 50%.

 

Section four: loan withdraw

Borrower should, according to real capital
needs, withdraw money. And the first withdraw date must be before November 10th 2011; or lender has right to cancel
part or the entire loan.

 

Section five: loan repayment

Borrower should do the loan repayment on
the due day and pay the entire amount, including principle and interests.

 

Section six: guaranty

This contract requires the loan is secured
loan, and the secured way is pledge.

 

Section eight: dispute resolution

Under this contract, disputes shall be
brought to the local court which is located in the same place with the lender.

 

Section nine: others

9.1 This contract has a duplicate copy.
And borrower and lender hold each copy and both copies have equal legal effect.

9.2 Attachments as follows and other attachments
which are common confirmation are indivisible parts of this contract and they have the equal legal effect with this contract.

Attachment one: Advice of drawing (standardized)

Attachment two: Commission payment protocol

 

Part two: loan terms for small business
entities

 

Section one: interest and interest rate

1.1 Transaction of foreign currency loan,
LIBOR is the same with financial telecommunication terminal of REUTRES’ LIBO which supplies interbank offered rate of RMB.
And the date is the withdraw day or two banking operating days before adjustment day. HIBOR is the same with financial telecommunication
terminal of REUTRES’ HIBO which supplies interbank offered rate of Hong Kong dollars, and the date is the withdraw day or
two banking operating days before adjustment day.

1.2 under this contract, loan interest
is floating interest rate and when the loan is over due; interest rate is adjusted according to the original mode.

1.3 monthly loan repayment days are the
every 20th of every month; quarterly loan repayment days are the ending month’s 20th of every quarter;
half-year loan repayment days are 20th June and 20th December.

1.4 the first loan repayment period is
from the actual withdrawing day to the next repayment day; the last loan repayment period is from the day after the one before
last loan repayment day to the last repayment day; other repayment periods are just between the repayment days.

1.5 if encountering loan interest adjustment
by People’s Bank, lender will not notify borrowers and follows the adjustment measure.

 

    	 

    	 

    

 

Section two Loan disbursement and payment

2.1 borrowers must meet all the prerequisites
as follows, or lender has no obligations to lend money to borrowers, only except the agreed advance loans:

(1) Except fiduciary loan, borrowers have
already supplied pledge required by lender; relevant pledge procedures have been completed and no negative change happened to lender.

(2) When one withdraws happens, borrower
should ensure all the statements and guarantees under this contract are accurate, completed and no negative changes happened to
both this contract and other agreement between borrower and lender.

(3) The certified document of use of loan
should follow the agreements.

2.2 borrowers, using the loan to do fixed
asset investment, should meet both 2.1 requirements and other requirements as follows:

(1) Loan program has already been approved,
examined or filed by country authorities(if required);

(2) The capital
of loan program has already been employed, according to the timing and proportion.

(3) No cost
overrun happened or the overrun part has been solved by self-financing;

(4) Borrower
has already completed project’s progress, according to the plan, and the actual project progress has matched the loan amount.

2.3when borrower
want to withdraw money, it should notify lender five banking operating days prior by written documents. Once the written documents
have been handed to lender, borrower can not cancel the documents without lender’s written agreement.

2.4 when borrower
meet withdrawing prerequisites or lender approved advanced loan, and lender has transferred the money to the account appointed
by borrower; this is regards as lender has issued the loan to borrower.

2.5 According
to regulations and lender’s management requirements, this contract should employ lender-entrusted payment method to withdraw
and use the loan; lender, according to borrower’s loan application and entrusted payment, lender will lend the loan to the
subject who meets the requirements under this contract. Therefore, lender and borrower should sign the agreement of entrusted payment
and regard this agreement as one attachment of this contract and borrower should open or appoint another account to deal with entrusted
payment with lender.

 

Section three:
repayment

 

3.1 borrowers should, according to the contract, repay full
amount of the principle, interests and other account payable. On repayment day and the banking working day before every interest
repayment day, borrower should deposit adequate amount in the appointed account and lender has right to transfer the money on repayment
day the interest repayment day, or require borrower to do some transfer progress for lender. If the deposit is not enough for the
due account payable, lender has right to decide the Liquidation sequence.

 

    	 

    	 

    

 

3.2 when borrower applies to repay all or part of the loan in
before due day, borrower should send written application to lender to acquire lender’s permit in advance of 10 banking working
days, and according to contract’s agreed standard to pay the compensation.

 

3.3 If lender agrees to accept early repayment, borrower should
according to this contract, pay all agreed principle, interests and other payables on early repayment day and borrower should repay
the part of loan which is unpaid before early repayment day.

 

3.4 lenders has right to, according to borrower’s actual
cash flows, claim back loan in advance.

 

3.5 if early repayment happens or lender, according to contract’s
agreement claim back loan in advance, which will shorten loan period, there will be no adjustment of the interest rate and it will
still follow ordinary loan interest rate.

 

Section four guaranty

 

4.1 Except credit loan, borrower should take the obligation,
under this contract, to supply legal and effective loan guaranty. And guaranty contract should be signed additionally.

 

4.2 If the pledge encounters damage, depreciation, property
disputes, sealed up or seized, being processed without agreement, negative changes of financial situation happened to guarantor
or other negative changes happened to loan debtor; borrower should notify lender timely and supply other approved pledge instead.

 

4.3 when approved by lender, account receivables, which is regarded
as pledge for this contract, encounter any situation, as follows, during the loan period; lender has right to announce that the
loan is over and require borrower to repay part of all of the principle and interests immediately or ask borrower to supply other
approved, legal, effective, and abundant pledge.

 

(1) The account receivables’ bad debt ratio increases
in two sequence month;

 

(2) Unclaimed account receivables took up the due account receivables
more than 5%;

 

(3) If warrantor has trading or debt disputes with payable parties
or other third parties (including but not limiting disputes of quality, technology, services), there may be possibilities of delaying
repayment of account receivables.

 

Section five account management

 

5.1 under this contract, an approved account, which is used
to collect sales or planned repayment, should meet the actual operating cash flow requirement. For the sales which is not settled
by cash, borrower should ensure transfer money timely to approved account when borrower collect the being owed money.

 

    	 

    	 

    

 

5.2 lender has right to supervise approved account, and its
right includes but not limits the supervision and acknowledge of cash-ins and cash-outs. Borrower should cooperate with lender
and borrower should sign supervision agreement with lender when it is necessary.

 

Section six statements and guarantees

 

Borrower made statements and guarantees, as follows, to lender,
and ensure, during the contract period, all the statements and guarantees are effective:

 

6.1 According to the law, the borrower is qualified and has
abilities of signing and carrying out the contract and following the contract’s requirements.

 

6.2 it is authorized and approved to sign this contract and
it does not break corporation rules, shareholders’ contribution agreement, pool agreement, partnership agreement or any other
relevant laws and regulations. And there is no conflict with other contracts’ obligations.

 

6.3 other debt payable had been repaid on time and no malicious
default behavior regarding to repayment of principle and interest.

 

6.4 In the most recent year, there was no significant breaching-rule
behavior during operation, and current advanced management stuffs have no significant bad record.

 

6.5 All materials and documents supplied by borrowers are accurate,
true, completed and effective and there is no false record, no omit or misstatement.

 

6.6 There is no hidden lawsuit, arbitration or claiming for
compensation.

 

6.7 If borrower employs loan to do fixed asset investments,
it must be legal to do the relevant investment.

 

Section seven borrower’s commitment

 

7.1 Borrower should, according to the contract, withdraw money
and apply the loan; and the loan can not be used in the share market, future market or be used for any other forbidden or restricted
applications.

 

7.2 According to the contract’s agreement, borrower should
repay principle, interest and other account payables.

 

7.3 Borrower accepts and positively cooperates with lender in
the fields of account analysis, checking receipts, on-site investigation and other approaches, including application of the loan
do the inspection and supervision. Borrower will also summarize application of loan and send report to lender on a regular time
schedule.

 

    	 

    	 

    

 

7.4 Borrower accepts credit inspection from lender, and borrower
will, in accordance with lender’s requirements, supply true, accurate, completed financial materials and other materials
which can reflect borrower’s solvency abilities, including bank account, account number, balance of the account etc. Borrower
will positively help and cooperate with lender do the investigation, acknowledge and supervision regarding borrower’s operation
and financial situations.

 

7.5 Before repayment of the full amount of the principle, interests
and other account payables, it is not allowed to distribute dividends in any form.

 

7.6 Borrower should obtain written confirmation from lender
in advance when processing consolidation, separation, reduction of capital, changes of owners’ equity, joining in the company,
leaving the company, significant transferring of assets and debt rights, significant investment on others, materially increasing
debt financing and other behavior which can cause negative changes to lender’s interests and rights.

 

7.7 If any issues, as follows, happen, borrower should notify
lender timely:

 

(1) Changing name, official stamp, corporation rules, address,
legal representative or person-in-charge, postal address and so on;

 

(2) Going out of business, dismissing, conducting liquidation,
conducting rectification, revoking business license, being revoked or filed for bankruptcy;

 

(3) Involving or supposed to be involved significant economic
disputes, lawsuit, arbitration or assets are being sealed, detained or compulsory execution, or being published or fielded to be
inspected and to pay penalties by the judiciary, industrial and commercial bureau or taxation office.

 

(4) Shareholders, directors and current management stuffs or
capital contributors is or are suspected to involving significant case or economic dispute.

 

7.8 Borrower will timely, completely and accurately disclose
the relationship with related parties and related trading to lender.

 

7.9 Borrower will timely sign the notification, which is send
by lender or in any other ways, from lender.

 

7.10 Borrower can not dispose its own assets to decrease its
solvency abilities, and when borrower becomes third parties’ warrantor, borrower should avoid destroy lender’s rights
and interests.

 

7.11 Borrower should pay the fees which is caused by signing
this contract and carrying out this contract; and also pays the fees which is caused by realizing debt rights’ paid and unpaid,
including but not limiting lawsuit or arbitration, property preservation costs, counsel fee, execution fee, appraisal fee, auction
fee, advertisement fee etc.

 

7.12 Under this contract, lender, at least, has the same liquidation
sequence with other debt holders; it is more priority than shareholders, legal representative or person-in-charge, partners, main
capital contributor or debts from key management stuffs.

 

    	 

    	 

    

 

Section eight Lender’s commitment

 

8.1 In accordance with this contract, lender will lend money
to borrower.

 

8.2 Lender will keep, all relevant financial and operational
unpublished materials supplied by borrower, confidential; only except the part which should be disclosed, according to the regulations
and laws and required part by this contract.

 

Section nine: breaching

 

9.1 Any thing happened, as follows, will be regarded as breaching
the contract:

 

(1) Borrower does not repay the principle and interests as required
by the contract, or does not fulfill the obligations required by the contract, or breaching the contract’s statements, guarantee
or commitments;

 

(2) The pledge, under this contract, encounters negative changes
to lender and borrower does not offer another confirmed pledge.

 

(3) When any debt is due (including being announced early due)
and borrower does not repay the debt, or borrower does not implement its obligation or breach its obligation under other terms,
borrower has already or may negatively influence implement obligations under this contract.

 

(4) Borrower’s profit ability, solvency ability, operating
and managing ability and cash flow ratios and other financial ratios become below required standards, or become deteriorated, which
have already or may negatively influenced implementing obligations.

 

(5) Significantly negative changes, related to operation and
management, investment in others and so on, happened to borrower, which have already or may negatively influenced implementing
obligations.

 

(6) Borrower or shareholders, legal representative or person-in-charge,
partners, main capital contributor or key management stuffs involved or may involve significant economic disputes, lawsuit, arbitration,
or assets are sealed up, detained or compulsory executed, or is under inspection and being punished by the judiciary and administrative
organizations, or breaching related civil laws or disclosed its negative behavior by the press, which have already or may negatively
influenced implementing obligations.

 

(7) Borrower encounters equity restructuring or changes of controlling
relationship, partnership, joint venture relationship; partners, main capital contributors, key management stuffs change abnormally,
disappear or are investigated or limited its freedom by the judiciary, which have already or may negatively influenced implementing
obligations.

 

(8) Borrower takes use of fake contracts and non-exist trading
with related parties to obtain lender’s loan or credit, or by the way of related trading, subjectively avoid lender’s
rights and interests.

 

    	 

    	 

    

 

(9) Borrower has already or may involve closing-down, dismissing,
liquidation, rectification, revoking business license, being revoked or filed for bankruptcy;

 

(10) Borrower breached the laws or industry standards, which
will cause liability accident, related with food security, operation security, protecting of environment, which have already or
may negatively influenced implementing obligations.

 

(11) Borrower or shareholders, legal representative or person-in-charge,
partners, main capital contributor or key management stuffs involved Mafia-style organization activities, drugging, gambling, smuggling
and other illegal activities.

 

(12) Borrower delayed the payment of taxes, fees or wages.

 

(13) Any other situation that will cause negative change which
will damage lender’s rights and interests.

 

9.2 If borrower breaches agreement, lender has rights to adopt
one or more measures, as follows:

 

(1) Asking borrower correct improper activity during limit time.

 

(2) Stopping issuing loans or other financing amount which is
related with this contract and other contracts, partly or full-amount cancelling the money which is not withdrawn by borrower or
other financing amount.

 

(3) Immediately claiming unpaid part, when announcement of which
the unpaid loan and other financing loan, between lender and borrower, is due.

 

(4) Requiring borrower to pay the damage which is caused by
borrower’s breaches

 

(5) Other necessary measures which are deemed by laws, regulations
and agreements under this contract.

 

9.3 When the loan is due (including being announced to be due),
and borrower does not do the repayment as required by agreements, lender has rights to credit the punishment interest which will
start from the following day of due day. And the unpaid interests, which are caused by over due, will be charged, according to
compound interest rate.

 

9.4 If borrower does not employ the loan as required by agreement,
lender has rights to charge punishment interests, since the day of appropriating. And the punishment interests will be compounded.

 

9.5 If borrower breaches 9.3 and 9.4 in the mean time, the higher
punishment interests will be chosen and not the both.

 

9.6 If borrower does not repay principle, interests (including
punishment interests and compounded interests) or other account payable, lender has rights to take use of the press to collect
the money.

 

    	 

    	 

    

 

9.7 If the controlling and being controlled relationships between
borrower and related parties have been changed, or borrower’s related parties encounter the situations which is mentioned
in 9.1 without (1) and (2), which have already or may negatively influenced implementing obligations, lender has rights to adopt
any measures which is agreed under this contract.

 

Section ten deductions

 

10.1 Borrower does not, in accordance with this contract, repay
the due amount (including being announced due), lender has rights to employ money from any borrower’s account which is opened
under any ICBC’s branches, and no matter it is local currency account or foreign currency account. And this measure will
last till the outstanding balance comes to zero.

 

10.2 When the deduction’s currency is not the same with
this contract’s currency, the exchange rate is decided by the day which is on the deduction day. From the deduction day to
repayment day (lender, according to the national foreign exchange management policies, deducts money and exchanges it into the
contract’s currency to repay the owe money. And this process will take some time, and the actual repayment day is regarded
as the repayment day.), the fees and interests which are caused during this period, due to the changes of exchange rate, should
be taken by the borrower.

 

10.3 When the deduction amount is not enough to cover the owe
amount, lender has rights to decide the liquidation sequence.

 

Section eleven rights and obligations transferring

 

11.1 Lender has rights to transfer or partly transfer the rights,
under this contract, to a third party, and the transferring behavior does not need borrower’s permit. And without written
permit from lender, borrower can not transfer the rights and obligations, under this contract, to a third party.

 

11.2 Lender or ICBC can, according to operation and management
requirements, authorize or entrust other ICBC branches to fulfill the agreed rights and obligations, or transfer the debt rights
to another ICBC branch to do the following management, borrower must accept this issue and lender’s behaviors, mentioned
as above, are not necessary to obtain borrower’s permit. And the ICBC branch, which does following management, has the same
rights as before; and it has rights to make lawsuit, arbitration or compulsory execution, in the name of itself.

 

Section twelve: effectiveness, changes and relieving

 

12.1 This contract is effective since it is signed by both parties,
and it is terminated when borrower fulfills all the obligations.

 

12.2 For any change of this contract, it needs both party negotiation
and it should be in the form of written documents. And the changing agreement or terms should become one part of this contract,
and it has the same legal force with this contract. Excluding the changing part, other parts of this contract are still effective,
and before the changing part become effective, ordinary terms are still effective.

 

    	 

    	 

    

 

12.3 The changing and relieving of this contracts, do not affect
both parties’ rights which is about compensation. When this contract is relieved, it should not affect the enforcement of
dispute terms.

 

Section thirteen Law and dispute resolution

 

To conclude this contract, efficiencies of this contract, explanation,
fulfilling and dispute resolution are all follow the laws of PRC. Any dispute, which is caused by this contract or is related with
this contract, should be tried by both parties to negotiate; if both parties can not process negotiation or can not reach agreement,
the dispute will be resolved by the ways which are termed.

 

Section fourteen: completed contract

 

The completed contract is consisted of the first part of this
contract is “borrowing conditions” and the second part is “loan contract for small business entity”. And
the loan, under this contract, is restricted by both parts, mentioned above.

 

Section fifteen: notification

 

15.1 Under this contract, all notification should be in the
written form. Except additional agreement, both parties appointed the residential address, in the contract, as postal address.
Any changes of postal address or of other contacting method happens, any party should notify the other party in the written form.

 

15.2 Under this contract, any party refuses to sign and accept
documents or can not deliver the documents, notifying party can take the form of notarization or announcement and it is also regarded
as successfully delivery.

 

Section sixteen: others

 

16.1 If lender does not fulfill or partly not fulfill or delayed
fulfill its any obligation under this contract, this deed is not regarded as abandoning or changing its rights or other rights,
and it also does not affect its further step to employ its rights and other rights.

 

16.2 If any term of this contract is not effective or can not
be fulfilled, this issue can not affect other terms’ effectiveness and fulfillment and it is not affect the whole contract’s
effectiveness either.

 

16.3 Lender has rights, according to relevant laws and regulations
or financial custodian institutions’ requirements, to disclose relevant information and borrower’s other information
to the people's Bank of China credit information system and other legal credit information data base, and the information is only
for the qualified persons and institutions inquiring or employing. Lender also has rights, with the purpose of concluding and fulfilling
this contract, to obtain borrower’s relevant information via the people's Bank of China credit information system and other
legal credit information data base.

 

    	 

    	 

    

 

16.4 The terms, in this contract, such as, related parties,
related party relationship, related party transaction, main investment person, key management stuff etc. have the same meaning
with the terms appeared in “accounting standards 36th –disclosure of related parties” and thereafter revising
edition, which is issued by the Ministry of finance.

 

16.5 The receipts which is made and maintained by lender, according
to its transaction rules, can be regarded as effective evidence to prove the relationships between lender and borrower, and they
have restricting power to borrower.

 

16.6 Under this contract, (1) any referred this contract includes
this contract’s revise and complementary part ;( 2) term titles are only for reference, they are not the explanation of this
contract, and they can not limit the following content; (3) when fulfilling this contract, if one withdraw day or one repayment
day is not banking operating day, then they should be regarded as the following banking operating day.

 

Confirmation by both parties: all the terms in this contract
have been fully discussed and negotiated by lending party and borrowing party. Lender has already specially notified borrower all
the terms which are related to both parties’ rights and obligations, and borrower has obtained comprehensive and accurate
understanding of the terms and at borrower’s request, lender has explained relevant terms. Borrower has already carefully
read and understood all contract terms (including first part “borrowing conditions” and the second part “loan
for small business entity”), the understanding of contract terms of borrowing party is conformity with lending party, and
there is no disagreement with the contact content.

 

Lender (seal):

 

Representative/ authorized agent: /s/ Gong Chengjie

 

Borrower (seal):

 

Legal representative/ authorize agent: /s/ Yu-Kai Wang

 

Date: 16th November, 2011Exhibit 10.36

 

Agreement for Domestic Factoring Services

[Recourse/Non-Recourse]

Ref: 2011-022

 

Special Tips: 

The Agreement is entered on basis of good
faith and equality of parties hereto, reflecting their truthful willingness. For the purpose of safeguarding Client's legitimate
rights and interest, Factoring Bank reminds Client to give full care to each and every term and provision regarding rights and
obligations hereto, particularly content in bold letters.

 

Factoring Bank: Industrial and Commercial
Bank of China Dlian Ganjingzi Branch

Address: #17 Ganjingzi Rd., Ganjingzi District,
Dalian

Representative: Sun Yi

 

Client : Dalian Tongda Equipment Technology
Development Co., Ltd.

Address: Youjiacun, St. Xinzhaizi, Ganjingzi
District, Dalian

Legal Representative: Wang Yukai

 

Whereas Client incurs accounts receivables
as trading goods with purchaser, thus applying to Factoring Bank to provide domestic factoring services with recourse. For the
purpose of setting out obligations hereto and on basis of fair faith, Factoring Bank and Client agree to enter the Agreement pursuant
to Contract Law of People's Republic of China and relevant laws and regulations.

 

1. Definition

Unless otherwise specified, terminologies
hereunder shall have definition as follow:

1.1. Factoring service with recourse means
that in consideration of transferring the account receivables generated from sales of services or goods to purchasers or other
sources from Client to Factoring Bank, Factoring Bank extends loans and related financial services to Client, and has right to
recourse any outstanding amount as per the Agreement towards Client provided that purchaser fails to pay full amount of the foresaid
receivables within agreed term.

 

1.2 Factoring service without recourse has
the meaning that under the circumstances described above, Factoring Bank shall have no right to recourse any amount payable given
that purchaser is unable to repay receivables within agreed term due to financial or credit depression.

 

1.3 Purchase or service contract means any
contracts signed by Client and purchaser and generating the receivables hereunder.

 

1.4 Account receivable (as "receivable")
is the exclusive, definite, ad hoc, undisputed, legal and sole creditor's right generated from factual and legal transaction between
purchaser and Client, as debtor and creditor respectively, and such creditor's right is transferred by Client to Factoring Bank.

 

    	 

    	 

    

 

1.5 Outstanding amount of invoiced account
receivable means the difference between invoiced account receivables and the amount Client has collected.

 

1.6 Factored loan is the amount of loan provided
by Factoring Bank to Client regarding receivables hereunder.

 

1.7 Day of settlement is (a) the date when
Factoring Bank extends loan, provide that interest is calculated and collected at a lump sum; (b) the 20th date of each
month, if interest is paid monthly; and (b) the 20th date of the end of month of each quarter if paid quarterly.

 

1.8 Factoring balance means the remaining
amount of accounts receivable actually collected by Factoring Bank minus the sum of loaned principal, interest, penalty interest
and related expenses

 

1.9 Factoring account is the account opened
by Client in Factoring Bank for the purpose of collecting receivables, from which to deduct loaned principal and interests and
pay factoring balance to Client. Factoring account is the sole legal account for collecting receivables hereunder.

 

1.10 Commission is charged by Factoring Bank
to Client in consideration of credit or other services provided as per the Agreement.

 

2. Client's Representations and Guarantees

2.1 Client shall be the legal person registered
in accordance with laws, or affiliated bodies authorized by such legal person, holding effective business license and lawfully
possessing its assets and developing its business.

 

2.2 Client shall have the capability of performing
the rights and obligations hereunder.

 

2.3 Singing or execution of the Agreement
herein shall not be in violation of laws, regulations and administrative rules that Client must abide by. Execution of the Agreement
shall not lead to any violation of any other contracts, documents or article of cooperations established by Client.

 

2.4 All the materials, documents, files and
information provided by Client to Factoring Bank shall be true, accurate and completed, free from any omission or material or contingent
liabilities undisclosed to Factoring Bank.

 

2.5 Purchasing/service contract or creditor/debtor
relationship thereof that generates accounts receivable transferred from Client to Factoring Bank shall be true, legal, effective
and free from any disputes.

 

2.6 Purchasing/service contracts entered between
Client and purchaser shall contain no restrictions against transferring accounts receivable.

 

2.7 Ownership of accounts receivable contemplated
hereunder shall be clearly established and free from any flaws, which Client shall not transfer to any third party or incur any
senior debts or pledges towards any third party.

 

    	 

    	 

    

 

2.8 Client is not involved into any legal
proceedings, arbitrations or anticipatory significant disputes, in the middle of process or pending, that may have material adverse
impact to Client.

 

2.9 Latest financial statements furnished
to Factoring Bank are prepared in accordance with applicable laws and regulations of People's Republic of China and accounting
rules of China, which truthfully, completely and fairly states Client's financial position and performance as of the end of accounting
period. Client's business operation or financial position has no any material adverse change upon the date of financial statements.

 

2.10 Factoring account numbered 3400201129300127450
opened by Client in Factoring Bank (as "factoring account") is used for collecting the receivable herein and deducting
any related principal and interest. Without obtaining Factoring Bank's written consent, Client shall neither withdraw any amount
from the factoring account, nor rendering any orders of paying from such account. The factoring account shall be denied to access
online banking service.

 

2.11 Client shall authorize Factoring Bank
to conduct daily supervision on the factoring account, including but not limited to having any records or acknowledgment of inflow
and outflow of such account. Client must coordinate with Factoring Bank to review each incoming cash flow.

 

2.12 Factoring Bank shall have right to directly
deduct the sum of factoring principal and interest and related expenses from the factoring account, provided that:

(a) Client fails to fully pay outstanding
principal and interest at the day of settlement as agreed herein;

(b) Client fails to fully pay the sum of principal
and interest at the maturity date or at the date of accelerated maturity announced by Factoring Bank;

(c) the receivables contemplated herein are
received in advance.

 

2.13 Factoring Bank shall have right to deduct
any amount that falls short in Client's factoring account to fully reimburse factored principal and interest, from any banking
accounts Client opened in Factoring Bank or any branch banks of ICBC, in order to fully settle the factored principal, interest
and other expenses payable. However factoring service without recourse is not applied to this provision, unless Factoring Bank
notifies Client to repurchase the receivable pursuant to S6.3 hereunder.

 

2.14 The loan contemplated hereunder shall
be used for purchasing raw materials. Without Factoring Bank's written consent, Client shall not alter the use of such loan.

 

3. Line of Credit and Term

3.1 When Client transfers the ownership of
accounts receivable and relevant rights to and validated by Factoring Bank, Factoring Bank shall extend factored loans subject
to each invoice on each account receivable, the sum of which shall not exceed line of credit granted by Factoring Bank, ¥3,000,000
RMB (Say Three Million RMB).

 

    	 

    	 

    

 

3.2 Term for each factored loan on basis of
invoice on each account receivable shall start as of the date of loan extension, till the date of repayment as agreed in List of
Accounts Receivable.

 

3.3 Records on receipts shall prevail to confirm
the actual date of loan extension and date of prepayment. The foresaid receipts shall be an inseparable part of the Agreement,
holding equal law-binding force. In case of any discrepancies between receipts and List of Accounts Receivable regarding term and
credit line of factored loans, receipts shall prevail.

 

4. Interest Rate, Interest and Expenses

4.1 Interest rate charged on factored loans
hereunder is referred to List of Accounts Receivable.

 

4.2 Interest rate shall be floating rate as
benchmark rate at the date of loan extension plus a spread, wherein benchmark rate is determined as RMB loan rate of the similar
term and nature specified under S3.2 of the Agreement and announced by People's Bank of China, spread is positive 8.528%.

 

4.3 Not Applicable

 

4.4 Any amount of outstanding factored loans
at the due date shall be charged the above-said interest rate.

 

4.5 If People's Bank of China adjusts loan
interest rate as a definite policy, the relevant regulations of People's Bank of China shall apply.

 

4.6 Interest charged to the factored loan
hereunder shall be calculated on daily basis (daily rate= annual rate/360) and settled monthly. At maturity of loan, principal
shall be paid off with interests outstanding, referring List of Accounts Receivable for detail. Interest settlement date shall
be the twentieth day of each month.

 

4.7 Client shall deposit interests payable
into the factoring account in order for Factoring Bank to directly withdraw the amount from the said account. As loans contemplated
under the Agreement reach maturity, unsettled interests shall be paid off along with principal unpaid.

 

5. Recovery of Accounts Receivable

5.1 Client shall urge purchaser to pay any
accounts receivable hereunder to deposit into the factoring account in a timely manner. Please refer List of Accounts Receivable
for detail.

 

5.2 Factoring Bank shall check each factored
loan with account receivable in match after receiving purchaser's full payment. The reviewed account receivable shall be written
off from List of Accounts Receivable once confirmed to be accurate. In case of any factoring balance, Factoring Bank shall promptly
return the balance to Client.

 

6. Conditions and Procedures of Repurchasing
Accounts Receivable

6.1 Client shall repurchase accounts receivable
as notified by Factoring Bank given that Client's misrepresentation has caused adverse impact to repayment of accounts receivable
hereunder.

 

    	 

    	 

    

 

6.2 In addition to S6.1, Client shall conduct
such repo if factoring services with recourse is involved, provided that:

(a) purchaser has disputes on the receivable
hereunder and thus refuses to pay or pays less because of damage or loss of purchased goods or other reasons.

(b) at the maturity date of factored loan,
Factoring Bank fails to receives payment from purchaser, or the amount paid by purchaser falls short of total sum of loaned principal,
interest, penalty and related expenses.

(c) Factoring Bank announces early maturity
of the accounts receivable due to Client's default as per S9 under the Agreement.

 

6.3 In addition to S6.1, Client shall conduct
such repo if factoring services without recourse is involved, provided that:

(a) purchaser has disputes on the receivable
hereunder and thus refuses to pay or pays less because of damage or loss of purchased goods or reasons other than financial or
credit issue.

(b) within the term of purchase/service contract,
Factoring Bank fails to receives payment from purchaser, because of disputes arising from transaction (in term of quality, technology,
services or others), debts or recourse between Client and purchaser, or between Client and other debtor.

(c) Factoring Bank finds upon entering the
Agreement, the accounts receivable hereunder fail to meet terms as required herein.

 

6.4 Client shall, upon receiving the written
notice on such repurchase issued by Factoring Bank, repurchase any outstanding accounts receivable as required within three days.
For full amount repurchase, Client and Factoring Bank shall sign to confirm any legal instruments regarding such repo, and the
Agreement herein shall terminate at the time when the amount has been credit to Factoring Bank's account.

 

7. Client's Rights and Obligations

7.1 Client shall perform its rights and obligations
as below:

(a) Client shall have right to ask Factoring
Bank to extend loans as agreed herein;

(b) Client shall pay commission, interest,
penalty and relevant expenses as specified under the Agreement, and perform its repo obligations as agreed.

(c) Client shall agree with purchaser that
the payment to account receivable shall be directly remitted to the factoring account, or shall timely deposit the received cash
to the factoring account if purchasing must be settled with notes or bills.

(d) Client shall give positive support to
Factoring Bank for reviewing and having knowledge of Client's business operations or financial performance, and shall promptly
provide financial statements as required.

(e) Client shall provide necessary assistance
to Factoring Bank in case of claiming against purchaser in the middle of receivable recovery or legal proceedings.

(f) Client shall abide by Factoring Bank's
requirements to provide satisfied collaterals.

(g) Client shall give notice to Factoring
Bank and provide relevant documents within five days of incurrence of following events:

 

ø
any violations of the Agreement;

 

    	 

    	 

    

 

ø
contingent default or any possible events that may injure Factoring Bank's rights and interests hereunder

 

ø
any legal proceeding, arbitration or claim in any form in which Client is claimed for reimbursement.

 

ø
change to company's name, address, registered capital, scope of operation , form of corporation, article of corporation, or
change to an incorporated company, entering into contract, lease, merger or acquisition, shake-off, joint venture, affiliated
interest, material change from financial aspect, change of equity structure or other material event.

(h) Client shall transfer to Factoring Bank
the collaterals of any nature provided by purchaser or any other third party to secure Client's accounts receivable, if the collaterals
are transferrable; or shall aid Factoring Bank to recourse the related debt whenever in need, if collaterals are untransferrable.

(i) Client shall continue to execute its obligations
under the purchase/service contract, notwithstanding that the accounts receivable and relevant rights and interests have been transferred
to Factoring Bank.

(j) Client shall neither enter any other agreements
or arrangements, nor engage in any activities that may injure Factoring Bank's interests and rights hereunder.

 

7.2 In addition to S7.1 hereunder, Client
shall be the endorser to assume paying liability arising from factoring service with recourse. For whatever the reasons leading
to short payment or delayed payment of accounts receivable, excising right of recourse by Factoring Bank towards Client shall not
be affected.

 

8. Factoring Bank's Rights and Obligations

8.1 Factoring Bank shall perform its rights
and obligations as below:

(a) Factoring Bank shall be entitled to all
the rights to the accounts receivable as transferred thereto, as of the date of effectiveness;

(b) If Client is obligated to repurchase but
failed to do so, Factoring Bank shall have right to excise its rights of setoff and recourse, which means to directly deduct the
repo amount from any banking account opened by Client in Factoring Bank or any other ICBC branch, or to recourse the outstanding
loans.

(c) Factoring Bank shall have right to be
trusted with original receivable invoices owned by Client, and shall timely return such original copies to Client till Factoring
Bank obtains the full recovery of loaned amount.

(d) Factoring Bank shall extend loans and
provide other services to Client as agreed herein.

(e) Factoring Bank shall keep confidential
regarding Client's debt, financial performance/position, production or operation, unless otherwise specified herein or required
by laws.

 

8.2 In addition to S8.2 herein, Factoring
Bank shall have the following rights on recourse factored services:

(a) If Client fails to reimburse any loans
and expenses owed to Factoring Bank prior to full recovery of factored principal and interest, Factoring Bank shall have right
to directly collect the principal and interest from the factoring account, plus any commission, interest, penalty and related expenses.

 

    	 

    	 

    

 

(b) Factoring Bank shall be entitled to any
knowledge, review or inspection over Client's operational execution and financial position.

(c) Factoring Bank shall have right to decide
at discretion whether to recourse the purchaser, provided that account paid at the maturity date of factored loan falls short of
total sum of principal, interest, penalty and other expenses. If yes, Client's repo liability shall not be affected, or the repo
amount shall be lowered accordingly given that Factoring Bank recovers part or whole of amount payable from the purchaser. In case
of any factored balance, Factoring Bank shall timely return the balance to Client.

 

8.3 In addition to S8.1 hereunder, Factoring
Bank shall have the rights for non-recourse factoring services as below:

(a) Factoring Bank shall have right to cease
the factoring service contemplated under the Agreement provided that purchaser delays payment consecutively for two times or above.

 

9. Default and Defaulting Obligations

9.1 General rule shall be that either party
hereto who violates the Agreement shall be deemed as default and consequently bear relevant obligations pursuant to laws and the
Agreement.

 

9.2 Client shall be deemed default provided
that

(a) Client fails to execute the liabilities
or violates any representations, guarantees or commitment stated under the Agreement;

(b) Cross default means any of the following
circumstances:

 

øClient
fails to pay other debt liabilities at the due date;

 

øClient's
capability of performing liabilities hereunder has been severely harmed, provided that other creditors possess the proprietorship
of Client's assets or operations, in part or whole.

(c) Events of anticipatory repudiation include:

Client ceases or may cease
its business operation or any vital part of its business operation, or disposes its business or assets in any important part or
whole, thus casting significant adverse impact to Client's capability of performing the Agreement;

 

øThere is material adverse
change to Client's business operation and financial position, or to Client's execution capability hereunder.

 

øAny accident incurs liable
to Client due to violations in laws, regulations, industrial practices or policies issued by competent authorities regarding food
safety, production safety, environment protection and others.

 

øClient
is involved or may be involved in significant economic disputes, or suffers from asset confiscation, detainment or enforcement,
thus imposing material adverse impact to Client's capability of executing the Agreement;

 

    	 

    	 

    

 

øThere
is change to collaterals hereunder unfavorable to Factoring Bank, however Client fails to add other collaterals as required.

 

øClient or its affiliate
may be investigated, convicted or punished by competent authorities of justice, taxation, industry and commerce or administration
in pursuant to laws and regulations; or there is change to controlling relationships between Client and its affiliates; or Client's
affiliate is involved or may be involved into significant economic disputes, proceedings or arbitration; or Client's majority
shareholder or key officer has abnormal replacement or is under investigation or restriction of liberty for criminal affairs by
justice department; or Client's affiliate incurs any other events that may have adverse impact to Client.

 

øClient applies for factoring
services by furnishing note receivable or account receivable arising from fake contract entered with affiliate, intending to cheat
for loans or credit line. Or Client intentionally runs away from Factoring Bank's right as creditor through related transaction.

(d) In addition to S9.2(3), anticipatory repudiation
regarding factoring services with recourse shall include the following circumstances:

 

øClient
or purchaser acts unfavorably on the credit/loan services provided by Factoring Bank, including delayed payment, interest unpaid
or reluctant advance from bank owing to Client's incapability of repayment.

 

øProvision for bad debt
due from purchaser has been arising for consecutively two months.

 

øOther
events that may or already harm Client's liabilities hereunder.

 

9.3 If any of above-mentioned default incurs,
Factoring Bank shall have right to excise one or more measures as below:

(a) requiring Client to correct its default
within a deadline;

(b) ceasing any factoring services with Client;

(c) announcing early maturity of granted factoring
loan and requiring an immediate repo of unrecovered accounts receivable;

(d) deducting the amount equivalent to clearing
off whole of principal, interest and other expenses payable, from Client's any banking account opened in Factoring Bank and other
ICBC branch;

(e) requiring Client to add effective, full-valued
and legitimate collaterals that are recognized by Factoring Bank;

(f) directly make recourse to purchaser at
or after the due date of account receivable;

(g) other measures ruled by laws, agreed by
the Agreement, or deemed necessary by Factoring Bank.

 

9.4 For recourse factoring services, Factoring
Bank shall have right to add 30% penalty rate to the factoring interest rate set above and compound any delayed interest with penalty
rate as agreed herein, as of the date of delayed payment, provided that Client fails to repay the factored principal and interest
hereunder (including the case of accelerated maturity).

 

9.5 If Client fails to use the loans in the
way as agreed, Factoring Bank shall have right to add 50% penalty rate above the factoring interest rate set above, and on basis
of the foresaid penalty rate, to compound any delayed interest payable as of the date of appropriation.

 

    	 

    	 

    

 

9.6 For the purpose of recognizing the creditor's
rights hereunder, Factoring Bank shall have right to deduct an amount equivalent to clearing off the debts, from Client's any banking
account of any currency nature opened in Factoring Bank or any ICBC branches. In case of different currencies denominated between
Client's banking account and factored loans, exchange rate specified by Factoring Bank at the date of deduction shall be applied.
Client shall bear risk of exchange rate volatility and all the interests and expenses arising from period as of date of deduction
to date of settlement, the date when Factoring Bank actually pays off Client's debt with the translated and deducted amount subject
to China's foreign currency policies.

 

10. Miscellaneous

10.1 Factoring Bank will record Client's each
principal, interest and expense payable hereunder, other payable and purchaser's payment onto an accounting ledger for internal
use. The foresaid ledger and document and invoices generated from factored services shall constitute as effective evidences for
executing the Agreement by parties hereto.

 

10.2 Without obtaining Factoring Bank's written
consent, Client shall not transfer any rights or obligations stated herein to any other third party.

 

10.3 Factoring Bank may transfer the rights
herein, in part or whole, to any other third party.

 

10.4 Factoring Bank's failure or delay to
excise creditor's rights or right of decision hereunder shall not be construed as Factoring Bank gies up the said creditor's rights
or right of decision. Excising the foresaid rights, in part or whole, shall not impede Factoring Bank from executing such rights
further. Any rights and relieves agreed hereunder shall be accumulative, including the possibilities of any other rights and relieves
enforced by laws.

 

10.5 Factoring Bank shall, pursuant to laws,
regulations or orders from finance supervising authority, have right to disclose the information in connection with the Agreement
and Client to the credit system of People's Bank of China and any other credit database lawfully registered, for inquiry by eligible
institutions or individuals. In addition, for the purpose of entering and executing the Agreement, Factoring Bank shall have right
to inquire any of Client-related information to the credit system of People's Bank of China and any other lawfully registered database.

 

10.6 Factoring Bank may directly deliver the
notice of transferring receivable ownership to the purchaser in written form, without obtaining Client's approval.

 

11. Solution to Disputes

11.1 Laws of People's Republic of China shall
govern the signing of Agreement, effectiveness, interpretations, executions and solution to any disputes thereof. In the term,
each and every disputes in connection with or arising the Agreement shall be solved on a friendly basis by parties hereto, or initiate
law suite to the local court under which jurisdiction Factoring Bank is located.

 

    	 

    	 

    

 

12. Effectiveness, Change, Retract and Termination

12.1 The Agreement shall enter into full force
as of the date of signing Agrement, till the date Client fulfilled all the obligations hereunder.

 

12.2 Unless otherwise agreed here, neither
party shall change or retract the Agreement at discretion. Any amendment or change to the Agreement shall be approved and unanimously
agreed by parties hereto, and defined in written form.

 

12.3 Where the provisions herein, in part
or whole, conflict with state laws, regulations or policies due to changes thereof, Factoring Bank and Client shall timely negotiate
and amend the said provision.

 

12.4 If any provision or provisions of the
Agreement shall be held to be invalid or nonexecutive, the validity, enforceability and effectiveness of the remaining shall be
unaffected.

 

12.5 Any change or retraction to the Agreement
shall not injure rights of parties hereto to claim for damages. Retracting the Agreement shall not impact the effectiveness of
the provision regarding solution to disputes.

 

13. Supplementary Term

13.1 Unless otherwise specified under the
context herein, the "Agreement" is referred as the Agreement, exhibits, and any change, amendment or supplement to the
Agreement; the "provision" or "section" or "exhibit" as provision, section or exhibits to the Agreement;
and clause headings within the Agreement are for convenience only and have no effect in interpreting or limiting the language of
provisions.

 

13.2 Any exhibits, supplementary, amendment
or change to the Agreement shall be deemed as unseparable part of the Agreement, holding equal law-binding force.

 

13.3 Expressions such as "related party",
"related party relationship", "related party transaction", "majority shareholder", "key officer"
and others have the same definition as specified in Enterprises' Accounting Principals No.36 - Disclosures from Related Party and
subsequent amendments issued by China's Ministry of Finance.

 

13.4 Exhibit to the Agreement include List
of Account Receivable.

 

13.5 For any unsettled matters, parties hereto
shall negotiate or execute subject to laws and regulations of People's Republic of China.

 

13.5 The Agreement is made in duplicate, one
for each, holding equivalent legal force.

 

Factoring Bank (Seal):

Representative (Authorized Agent): /s/ Sun
Yi (Signature or Seal)

 

Client (Seal):

 

Representative (Authorized Agent): /s/ Wang
Yukai (Signature or Seal)

 

Date of Signing: September 27th
2011

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