Document:

Domestic Factoring Contract (with Recourse)

 

S/N: 37062020120000119

 

(This is a summary translation to be
used for reference only)

 

Party A:                       Trunkbow
Asia Pacific (Shandong) Co. Limited

Legal Representative: HOU Wanchun

 

Party B:                       Agricultural
Bank of China, Jinan Hi-Tech Development Zone Branch

Legal Representative: ZHANG Guiying

 

		Article 1	Definition

 

1.1         “Accounts Receivable”:
Party A’s right to demand the party to pay for the goods or services provided by Party A.

 

1.2         The “Buyer”: The
party that has purchased goods or services from Party A.

 

1.3         “Base Transaction Contracts”:
Contracts between Party A and the Buyer from which the accounts receivable are generated.

 

1.4         “Accounts Receivable Amount”:
The amount that the Buy must pay to Party A pursuant to the base transaction contracts.

 

1.5         “Accounts Receivable Due Date”:
The date when the last accounts receivable payment is due.

 

1.6         “Margin Loan”: The amount
Party B must pay to Party A as consideration for accepting the transfer of the accounts receivable.

 

1.7         “Margin Loan Delivery Date”:
The date when Party B releases the margin loan to Party A.

 

1.8         “Accounts Receivable Transferred”:
Accounts receivable accepted by Party B.

 

1.9         “Amount Receivable by the Bank”:
Amount that Party B has the right to receive from the accounts receivable transferred.

 

1.10        “Buy Back”: Party A’s
act of buying back the accounts receivable transferred upon the occurrence of certain events.

 

1.11        “Buy Back Amount”: The
price that Party A must pay to Party B to buy back the accounts receivable transferred.

 

    	 

    	 

    

 

1.12       “Factoring”: The service
whereby Party B accepts Party A’s accounts receivable and provides margin loan Party A.

 

1.13        “Resource”: Party B’s
right to demand Party A to buy back accounts receivable transferred.

 

1.14       “Open Factoring”: Factoring
service in which the transfer of accounts receivable by Party A is made known to the Buyer.

 

1.15       “Covert Factoring”:
Factoring service in which the transfer of accounts receivable by Party A is temporarily not made known to the Buyer.

 

1.16       “Period”: Period of
time defined by day, month and year.

 

1.17       “Laws and Regulations”:
Laws and regulations of the People’s Republic of China.

 

		Article 2	Party A’s Promises

 

2.1        Party A is a duly incorporated and
approved organization in good standing and is permitted to engage in factoring financing transaction.

 

2.2         Party A has obtained all necessary
approval in accordance with the law and the company’s charter for the execution and performance of this contract.

 

2.3         Party A will not use the margin loan
to engage in activities in violation of law and regulations, and will accept Party B’s supervision on its operation and financial
conditions and provide documents as requested.

 

2.4         The documents provided by Party A
are true, complete, accurate, valid and effective.

 

2.5         Without Party B’s consent,
Party A will not modify, terminate or dissolve the base transaction contracts.

 

2.6         Party A agrees that, if Party B accepts
the transfer of the accounts receivable and is pursued by the buyer or a third party, Party A will assume all responsibility and
compensate Party B for all resulting losses.

 

2.7         If Party B pursues the buyer (including
through litigation, arbitration and filing for enforcement), Party A must take all necessary measures to assist Party B in realizing
its recourse right.

 

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2.8        Party A will notify Party B in writing
immediately if Party A comes to any knowledge of (actual or potential) bankruptcy, dissolution, going out of business and other
corporate events that will materially affect Party B’s creditor rights.

 

		Article 3	Basic Provisions

 

3.1        Margin Loan

 

		3.1.1	Party A transfers the accounts receivable listed below to Party B; and Party B, based on the amount of each item of the transfer
below, provides margin loan to Party A as consideration for such transfer (all four invoices listed are billed to Guangdong Guangxin
Communications Services Co., Ltd. and all are due on Sept. 30, 2012):

		·	RMB 7,014,000          (for amount of RMB 6,310,000 in margin
loan)

		·	RMB 1,141,000          (for amount of RMB 1,010,000 in margin
loan)

		·	RMB 11,688,000        (for amount of RMB 10,500,000 in margin
loan)

		·	RMB 312,000             (for amount of RMB 170,000 in margin
loan)

Total amount of accounts
receivable:        RMB 20,155,000

Total amount of margin loan:                    RMB
18,000,000

		3.1.2	Margin Loan Interest

		3.1.2.1	Margin Loan Interest Calculation:

			Amount of margin loan X loan interest X term of the margin loan

		3.1.2.2	Margin Loan interest

			Fixed at the base rate of the same type of loan published by People’s Bank of China on the date of execution plus 25%

		3.1.3	Interest Accrual and Settlement

Interest settlement date is the
20th of each month.

		3.1.4	Past-due penalty

			If, upon the expiration of the term of the margin loan, Party B fails to receive the payments for the accounts receivable in
full and Party A fails to buy back the accounts receivable in accordance with the provisions herein, Party B shall charge the past-due
penalty at the penalty rate (amount of the accounts receivable times penalty rate) for each day past-due until Party A pays in
full to buy back the accounts receivable and pays all other related fees and interests. The penalty rate is the margin loan rate
specified herein plus 100%.

		3.1.5	Compound rate

Interest will be compounded if Party
A fails to pay interest on time.

		3.16	Domestic factoring service fee

[None specified]

		3.17	Factoring Model

Covert factoring.

 

3.2         Transfer of Accounts Receivable

		3.2.1	Qualified accounts receivable

 

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			The accounts receivable listed in Section 3.1.1 must meet the following criteria (otherwise, Party B shall have the right to
refuse to accept them):

		(1)	They are generated in bona fide business transactions between Party A and the buyer; base transaction contracts are authentic,
valid and effective; the transfer of the accounts receivable has not be forbidden or restricted; the creditor/debtor relationship
does not involved a third party.

		(2)	They are payable in RMB.

		(3)	Party A is the rightful owner of such accounts receivable and such accounts receivable have not been encumbered in any manner
or transferred; there are not disputes and objections nor any claims, demands or counter-claims regarding such accounts receivable.

		(4)	They are not generated by consignment, trial, brokering, distributor or other form of sales that might result in a refund upon
return of the goods.

		(5)	Party A has performed major obligations under the base transaction contracts.

		3.2.2	Delivery of documents regarding the accounts receivable

		3.2.2.1	After the contract has become effective, Party B shall have the right to ask Party A to deliver the documents and invoices
regarding the accounts receivable listed in Section 3.1.1, including but not limited to:

		(1)	Base transaction contract or documents evidencing the performance of sales/service contracts;

		(2)	Business invoices;

		(3)	Documents evidencing transportation of goods or delivery acceptance;

		(4)	“Accounts Receivable Performance Confirmation Letter”;

		(5)	Other documents that Party B reasonably requests.

		3.2.2.2	If copies of the above documents are provided, they must be verified against the original and confirmed by Party A’s
company seal.

		3.2.2.3	In additional, Party B may request Party A to provide other documents at any time.

		3.2.3	Transfer notice and account change notice

		3.2.3.1	[N/A]

		3.2.3.2	[N/A]

		3.2.3.3	If Party A fails to deliver notices in accordance with the provisions herein, Party B shall have the right to refuse to accept
the transfer of the accounts receivable.

		3.2.4	Accounts receivable payment account

		3.2.4.1	Party A and Party B agree to designate the following account as the accounts receivable repayments:

Account Title:Trunkbow Asia
Pacific (Shandong) Co. Limited

			Account Bank: Agricultural Bank of China,

  Jinan Hi-Tech Development Zone
Branch

 

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			Account No.: 15-155101040038498

		3.2.4.2	The accounts receivable payment account must be the dedicated account for factoring service management. Any withdrawal of funds
from this account must be approved by Party B and Party B shall have the right to place restrictions.

		3.2.5	Transfer Effectiveness

		3.2.5.1	[N/A]

3.2.5.2   Upon the delivery of margin loan funds, all the rights to the corresponding accounts receivable shall be transferred to Party
B and Party B is entitled to all rights available to Party A prior to such transfer, including but not limited to:

		(1)	Right to receive payment for such accounts receivable, including principal, interest, penalty and past-due interest and fines;

		(2)	Corresponding lien, right of stoppage, endorsement right and other rights available to Party A upon return of the goods and
services;

		(3)	Right to all measures provided by law to demand the buyer to repay such accounts receivable, including litigation, arbitration
and subrogation;

		(4)	Right to demand the buyer to provide guarantee should the buyer experiences operation and financial difficulties;

		(5)	Right to participate in the buyer’s bankruptcy or liquidation proceedings as creditor of the accounts receivable;

		(6)	Right to transfer and pledge the accounts receivable;

		(7)	Other rights available under the law.

		3.2.5.3	Party B’s acceptance of the accounts receivable shall not be construed to be Party B’s obligation to perform, on
Party A’s behalf, any of Party A’s obligations under the base transaction contracts.

		3.2.5.4	After the transfer of the accounts receivable, Party A shall not have any rights to the accounts receivable entitled to the
creditor, but has the obligation to assist Party B in asserting Party B’s creditor claims against the buyer.

		3.2.5.5	Party A agrees to be Party B’s agent for receiving the payment of the accounts receivable into the special accounts receivable
payment account set up with Party B.

3.2.6      Registration of the transfer

After the transfer of the accounts
receivable, the parties hereto must promptly proceed to process registration procedures for the transfer.

 

3.3         Receiving Accounts Receivable Payment

		3.3.1	Accounts receivable payment due date

 

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			On the due date for such accounts receivable, Party B has the right to deduct directly from the accounts receivable payment
account such amount equal to the amount due to the bank. Whether the payment for the accounts receivable is in full or whether
such payment is on time shall not affect the aforementioned right.

		3.3.2	Early payment of the accounts receivable

			If the buyer pay in full or in part the accounts receivable in advance any single amount of the accounts receivable, Party
B has the right to deduct directly from the accounts receivable payment account such amount equal to the amount due to the bank.

		3.3.3	Authorization for deduction

			Party A irrevocably authorizes Party B to deduct directly from the accounts receivable payment account such amount equal to
the amount due to the bank and the corresponding margin loan interest and other amount payable.

		3.3.4	After making deductions in accordance with Section 3.3.1 and Section 3.3.2, Party B has the right to deduct the remaining amount
in the accounts receivable payment account to offset other amount owed by Party A to Party B and outstanding interest and fees.

		3.3.5	Order of payment for the accounts receivable

			If the buyer has not specified which amount of the accounts receivable a payment is for, Party B shall have the right to make
determination.

 

3.4          Buy-back of the accounts receivable

		3.4.1	Buy-back on the due date

			When the accounts receivable are due, if for whatever reason the fund in the accounts receivable payment account is insufficient
to repay the amount owed to the bank and to pay interest and other amounts payable, Party A must provide enough fund to complete
the buy-back of the accounts receivable within the grace period.

		3.4.2	Advance buy-back

		3.4.2.1	Upon the occurrence of any of the following, Party B has the right to demand Party A to buy back all or part of the accounts
receivable:

		(1)	After accepting the transfer, Party B discovers unqualified item of the accounts receivable;

		(2)	The accounts receivable are seized or frozen, either in part or in whole, by judicial or administrative authorities;

		(3)	Party A fails to provide documents in accordance with the provisions herein;

		(4)	The buyer fails to make the accounts receivable payment into the accounts receivable payment account but instead into Party
A’s other accounts;

		(5)	Party A reduces the creditor claim regarding the accounts receivable without Party B’s authorization;

		(6)	Party A and the buyer modify the base transaction contracts without Party B’s authorization; or Party A or the buyer
announces its refusal to perform its major obligations thereunder;

 

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		(7)	Party A experiences material difficulty in its operations or financial conditions;

		(8)	Other situations specified herein.

		3.4.2.2	Upon the occurrence of any of the following on the part of one buyer, Party B has the right to demand Party A to buy back all
or part of such buyer’s accounts receivable:

		(1)	The buyer refuses to make payment or to make payment in full;

		(2)	The rate of bad accounts has increased for 2 consecutive months;

		(3)	The buyer experiences material difficulty in its operations or financial conditions;

		(4)	The buyer undertakes corporate activities such as merger, spin-off, reorganization, debt restructuring or the buyer’s
assets have been frozen or seized;

		(5)	Other situations that will materially affect the buyer’s ability to make payments;

		3.4.2.3	The parties hereto will choose the following method to calculate the interest on the margin loan that corresponds to the accounts
receivable that are to be bought back.

			[N/A]

		3.4.2.4	If Party B demands Party A to buy back the accounts receivable in accordance with the provisions herein, Party A irrevocably
authorizes Party B to make deductions from all of Party A’s accounts set up with Party B.

		3.4.3	After Party B accepts the transfer of the accounts receivable and releases the amount of margin loan to Party A, if the amount
that the buyer is obligated to pay is less than the amount of the accounts receivable listed in Section 3.1.1, thus triggering
the buy-back condition, Party A must buy back the accounts receivable with amount specified herein.

		3.4.4	Party A’s buy-back fund must be deposited into the accounts receivable payment account. If the accounts receivable payment
account is set up with Party B, Party A irrevocably authorizes Party B to make corresponding deductions from such account to complete
the buy-back.

		3.4.5	If Party A fails to complete such buy-back, Party B has the right to charge default penalty and compound interest and Party
A irrevocably authorizes Party B to make deductions from all of Party A’s accounts set up with Party B and Party B’s
affiliates.

		3.4.6	Party B will exercise its right to offset in accordance with the law or with the provisions herein; Party A has 7 days (starting
from the day when Party B notifies Party A either orally or in writing) to raise objections.

 

3.5         Payment Reminder

Under the covert factoring model, Party
A must send reminder for payment 15 prior to the due date of the accounts receivable.

 

3.6         Loan Certificate

 

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All the loan certificates constitute
the component part of this contract and the loan amount, interest and release date must be based on those recorded in such certificates.

 

3.7         Rights and Obligations

3.7.1      Party A’s rights and obligations

		(1)	Withdraw the margin loan in accordance with the provisions herein;

		(2)	Buy back the accounts receivable in accordance with the provisions herein;

		(3)	Use the margin loan for the purpose in accordance with the provisions herein or with the law;

		(4)	Accept Party B’s supervision on its production operations and financial conditions and provide assistance and provide
relevant documents at Party B’s request;

		(5)	If Party A undertakes the following activities, Party A must notify Party B in advance and obtain Party B’s approval:

		(a)	Merger, lease, consolidation, separation, joint venture, transfer of assets, shutting down, dissolution, issuance of securities
or debts, major financing or investment, filling for bankruptcy;

		(b)	Providing guarantee or pledging its major assets for a third party;

		(c)	Other activities that may adversely affect Party B’s creditor’s rights.

		(6)	Upon the occurrence of any of the following, Party A
must notify Party B in writing within 5 days:

		(a)	Involvement of Party A’s legal representative, major responsible person or control person in criminal activities;

		(b)	Ceasing operation, going out of business or having the license revoked;

		(c)	Deterioration of Party A’s production operations and financial conditions;

		(d)	Other events that may adversely affect Party B’s creditor’s rights.

		(7)	Upon the occurrence of any of the following, Party A must notify Party B in writing within 7 days:

		(a)	Change of affiliate relationship, major management change or major reorganization;

		(b)	Change in the name, address and scope of operation;

		(c)	Increase of registered capital or major amendment of the company’s charter;

		(d)	Other events that may adversely affect Party A’s ability to perform its obligations.

		(8)	Party A and its investor shall not evade its debt obligations by transfer funds or assets or equity without authorization and
shall not engage in other activities harmful to Party B’s interests;

		(9)	Other rights and obligations provided by law or by the parties hereto.

		3.7.2	Party B’s rights and obligations

		(1)	Release the margin loan in full and on time;

 

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		(2)	Has the right to monitor and inspect Party A’s operations, financial condition, inventory and use of the margin loan
funds and request Party A to provide relevant documents;

		(3)	Has the right to demand Party A to take remedial measures, make arrangements or provide additional guarantee, buy back the
accounts receivable and the right to suspend margin loan, upon the occurrence of events and activities that may affect the performance
by Party A of this contract;

		(4)	Other rights and obligations provided by law or by the parties hereto.

		3.7.3	Other obligations

		3.7.3.1	Both parties hereto must maintain confidentiality on the other party’s commercial secrets or other critical information
and must not disclose such information to any third party, except as required by law.

		3.7.3.2	Upon the termination of the contract, the parties hereto must perform the necessary notification and assistance obligation
in good faith.

 

		Article 4	Optional Provisions

 

The Section 4.1, Section 4.2 and Section
4.3 all apply to the services hereunder and are binding to both parties. Other sections in this Article 4 are not binding

 

		4.1	Purpose of use of the margin loan funds

		4.1.1	The margin loan funds can only be used for payments under the contracts between the Company and Guangdong Guangxin Communications
Service Co., Ltd.

		4.1.2	Party B has the right to monitor Party A’s use of the margin loan funds, and Party A must provide relevant documents
when using such funds.

		4.1.3	If Party A fails to use the margin loan funds in accordance with the provisions herein, Party B will charge default penalty
at the rate of the loan plus 100% until the principal and interest have been repaid.

		4.1.4	If Party A uses the margin loan fund in violation of the provisions herein or fails to pay interest on time, Party A must pay
past-due interest at the compounded rate in accordance with the provisions herein.

 

		4.2	Performance of the obligations under the base transaction
contracts

Party A warrants that Party A has already
performed the major obligations under the base transaction contracts and promises to continue to perform other obligations thereunder.

 

		4.3	The accounts receivable are not based on related-party
transactions

Party A warrants that the accounts receivable
listed in Section 3.1.1 are not based on related-party transactions.

 

		4.4	[N/A]

 

		4.5	[N/A]

 

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		Article 5	Legal Liabilities

 

5.1         The following acts by Party A constitute breach:

		(1)	Violation of the obligations hereunder;

		(2)	Failure to carry out the commits stated in Article 2;

		(3)	Refusal to perform obligations hereunder;

		(4)	Failure to perform or to completely perform the obligations under other contracts between Party A and Party B;

 

5.2         Upon the occurrence of any of the
following, Party B may dissolve this contract and other contracts between Party A and Party B:

		(1)	Party A’s breach;

		(2)	Party A breaches other contracts between Party A and Party B ;

		(3)	Party A’s ability to perform the obligations hereunder suffers material adverse change;

		(4)	State policy change that may have adverse effect on Party A’s ability to perform the obligations hereunder suffers material
adverse change ;

		(5)	Party A commits major breaches with other creditors;

		(6)	Other situations provided by law or by this contract that can result in the dissolution of this contract.

If Party B decides to dissolve this contract,
Party A has 7 days (starting from the day when Party B notifies Party A either orally or in writing) to raise objections.

 

5.3         Upon the occurrence of the situations
set forth in Section 5.1 and Section 5.2, Party B may take the following remedial steps:

		(1)	Demand Party A to remedy the acts of breach, make arrangement to ensure the repayment of debts or provide other valid guarantee;

		(2)	Charge default penalty and compound interest rate, until the principal and interest have been repaid;

		(3)	Suspend the release of the margin loan funds, demand Party A to buy back in advance the accounts receivable and declare
that other loans under other contracts between Party A and Party B immediately due;

		(4)	Exercise the right to offset and other rights;

		(5)	Demand Party A to assume responsibility for compensation and other legal liabilities;

		(6)	Take other measures to protect assets and other legal actions;

		(7)	Make public Party A’s acts of breach;

		(8)	Other remedies.

 

5.4         If Party A’s breaches force
Party B to resort to litigation or arbitration, Party B must be responsible for all the attorney fees, traveling expenses, enforcement
fees, appraisal fees and other fees incurred for realization of Party B’s creditor rights.

 

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5.5         Provided that Party A has performed
the obligations hereunder, if Party B fails to accept the transfer of the accounts receivable listed in Section 3.1.1, Party B
must compensate Party A for the actual resulting loss.

 

		Article 6	Other Matters

 

		6.1	Notification

All notices and other communication
hereunder will be sent to the addresses and fax numbers listed herein.

 

		6.2	Sharing of fees

All fees paid to a third party in the
performance of this contract will be assumed based on the agreement between the parties hereto. If no such agreement, such fees
will be assumed according to the law or the equitable principle.

 

		6.3	Dispute Resolution

		6.3.1	Any dispute arising from this contract must be resolved through consultation; if such consultation fails, the dispute may be
submitted to the local people’s court.

		6.3.2	During the period of the legal proceedings, the obligations hereunder not in dispute must continue to be carried out.

 

		6.4	Contract Effectiveness

		6.4.1	This contract becomes effective upon execution

		6.4.2	Place of execution:Jinan, Shandong Province

		6.4.3	Prior to the completion of the performance of this contract, if there is any change of law or regulation that renders some
or all of the provisions herein not in compliance with the law, Party B may carry out the affected matters in accordance with the
newly implemented law or regulations, unless otherwise stipulated between the two parties.

		6.4.4	Other matters not covered herein will be determined between the parties hereto separately.

		6.4.5	This contract is in duplicates, with one to each party.

 

Party A:                       /seal/
Trunkbow Asia Pacific (Shandong) Co. Limited

Legal Representative: /s/ HOU Wanchun

                      /s/ LI Qiang

April 26, 2012

 

Party B:                       Agricultural
Bank of China, Jinan Hi-Tech Development Zone Branch

Legal Representative: ZHANG Guiying

April 26, 2012

 

    	11Pledge Contract

 

S/N: 37100420120003495

 

(This is a summary translation to be
used for reference only)

 

		Pledgee:	Agricultural Bank of China, Jinan Hi-Tech Development Zone Branch

 

		Pledgor:	Trunkbow Asia Pacific (Shandong) Co. Limited

 

To ensure the performance of Domestic Factoring
Contract (with Recourse) between the Pledgee and the Pledgor (“Master Contract”), the Pledgee and the Pledgor have
entered into the following pledge contract as guarantee.

 

Article 1              Master
Debt under the Guarantee and Amount of the Principal

 

The type of master debt under the guarantee
is factoring financing with recourse, the principal amount of which is RMB 18,000,000.

 

Article 2              Scope
of the Pledge Guarantee

 

The scope of this pledge guarantee includes
the loan principal hereunder and interest, penalty interest, compound interest, default damages and other fees incurred by the
creditor to realize the creditor claims.

 

Article 3              Right
Pledged

 

The Pledgor agrees to pledge its creditor
right to its accounts receivable (see details in the attached “List of Accounts Receivable Transferred”).

 

Article 4              The
Pledgor’s Warranties

 

1.          The
Pledgor has obtained all authorization necessary for the pledge.

 

2.          The
Pledgor has full, uncontestable right to the item pledged.

 

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3.          The
creditor right pledged may be transferred in accordance with the law.

 

4.          There
is no application for cancellation of and annulling the creditor right, nor is there any dispute, seizure, freeze, litigation,
arbitration on such right.

 

5.          The
Pledgor has obtained consent from the joint owner regarding the pledge.

 

6.          The
Pledgor will continue to make payments for all the fees associated with the pledged right and perform other legal obligations to
ensure the effectiveness of such right during the period of the pledge.

 

7.          During
the period of the pledge, the Pledgor will notify the Pledgee in writing upon the occurrence of any of the following:

 

(1)         Application
for cancellation of and annulling the creditor right; any dispute, seizure, freeze, litigation, arbitration on such right;

 

(2)         The
Pledgor is dissolved, having its license cancelled or is ordered to shut down;

 

(3)         The
Pledgor files, or is forced to file, for bankruptcy, restructuring;

 

8.           There
exists no situation that will affect the realization of the creditor’s right.

 

Article 5              Effectiveness
of the Pledged Right

 

The effectiveness of the pledged right extends
to subordination, yield and other asset and rights provided by law.

 

Article 6              Delivery
and Safekeeping of the Certificates of the Pledged Right

 

1.          If
necessary, the Pledgor must deliver the certificates of the pledged right to the Pledgee for safekeeping.

 

2.          If
such certificates are in the form of bank draft, promissory note, check, warehouse receipts, bill of lading or loan certificates,
they should be marked “pledged” on the back.

 

3.          If
registration is required, the pledge must be registered.

 

4.          During
the effective period of the pledge, the Pledgor shall not gift, transfer or dispose of the pledged right in any other form without
the authorization of the Pledgee.

 

5.          During
the effective period of the pledge, if the value of the pledged right decreases, the Pledgor has the right to ask the Pledgor to
provide additional guarantee.

 

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Article 7              Transfer
of the Pledged Right

 

If the Pledgee transfers some of the claims
under the pledged right, the Pledgee has the right not to transfer the corresponding pledgee’s right.

 

Article 8              Realization
of the Pledgee’s Right

 

1.            Upon
the occurrence of any of the following, the Pledgee has the right to exercise its pledgee’s right, and has the right to decide
how to apply the proceeds from the disposition of the pledged item:

 

(1)         The
debt under the Master Contract is due and the Pledgee has not been fully repaid;

 

(2)         The
debtor’s, or the Pledgor’s, license is revoked, or the debtor or the Pledgor is ordered to shut down or dissolved;

 

(3)         The
debtor or the Pledgor is involved in a bankruptcy or settlement proceeding ordered by a court;

 

(4)         The
debtor or the Pledgor is dead or declared missing or dead;

 

(5)         The
pledged right is being cancelled or declared invalid, or is involved in any seizure, freeze, litigation, arbitration or other enforcement
action;

 

(6)         The
Pledgor fails to provide additional guarantee at the Pledgee’s request;

 

(7)         The
Pledgor violates its obligations hereunder;

 

(8)         Other
situations that will affect the realization of the creditor right.

 

2.            If
the pledged bank draft, promissory note, check, warehouse receipts or bill of lading become due prior to the due date of the debt
under the Master Contract, the Pledgee has the right to cash them out or take the delivery and use the proceeds to repay the debt
in advance (or deposit them in escrow).

 

3.            If
the claims under the guarantee are also guaranteed by using property as security, the Pledgee may use such property to realize
its claim and may also ask such guarantor to assume responsibility.

 

4.            If
the Pledgor is a party other than the debtor, the Pledgor agrees to continue to provide such guarantee as necessary.

 

    	3

    	 

    

 

5.            If
the proceeds from disposition of the pledged right and property is insufficient to repay all the debt due, the Pledgee has the
right to decide the order of applying such proceeds with regard to the debt.

 

Article 9              Return
of the Certificates of the Pledged Right

 

1.            Upon
the full repayment of the debt under the Master Contract, the Pledgee must promptly return to the Pledgor all the certificates
of the pledged right.

 

2.            If
the Pledgor refuses to accept the return of such certificates, the Pledgor has the right to deposit them in escrow at the Pledgor’s
cost.

 

Article 10             Liability
for Breach

 

1.            Upon
the occurrence of any of the following on the part of the Pledgor, the Pledgor must pay default damages and compensate the Pledgee
for any resulting loss:

 

(1)         Failure
to obtain valid authorization necessary for the pledge guarantee;

 

(2)         Withholding
of information regarding dispute, bankruptcy proceeding, seizure, freeze, litigation or arbitration involving the pledge right;

 

(3)         Failure
to provide certificates of the pledge right required;

 

(4)         Disposition
of the pledge right without the Pledgee’s authorization;

 

(5)         Failure
to provide additional guarantee at the Pledgee’s request;

 

(6)         Other
acts in violation of the provisions herein.

 

2.            Upon
the occurrence of any of the following on the part of the Pledgee, the Pledgee must compensate the Pledgor for any resulting loss:

 

(1)         Damage
to or disappearance of certificates of the pledge right due to the Pledgee’s negligence;

 

(2)         Upon
the expiration of the debt performance period, the Pledgor requests the Pledgee to exercise its pledgee right promptly but the
Pledgee delays such exercise.

 

    	4

    	 

    

 

 

Article 11          Sharing
of fees

 

All fees paid to a third party in the performance
of this contract will be assumed based on the agreement between the parties hereto. If no such agreement, such fees will be assumed
according to the law or the equitable principle.

 

The laws and regulations referenced herein
are those of the People’s Republic of China, including local statutes and regulations.

 

Article 12          Dispute
Resolution

 

Any dispute arising from this contract must
be resolved through consultation; if such consultation fails, the dispute may be submitted to the local people’s court.

 

During the period of the legal proceedings,
the obligations hereunder not in dispute must continue to be carried out.

 

Article 14          Other
Matters

 

The Pledgor has already received and read
the Master Contract under the guarantee.

 

Article 15          Contract
Effectiveness

 

This contract becomes effective upon execution.

 

Article 16          This
contract is in duplicates, with one to each party.

 

		Pledgee:	Agricultural Bank of China, Jinan Hi-Tech Development Zone Branch

Legal Representative:ZHANF Guiying

 

		Pledgor:	/seal/ Trunkbow Asia Pacific (Shandong) Co. Limited

Legal Representative:/s/ HOU Wanchun

 

April 26, 2012

 

    	5

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