Document:

Guarantee Contract

 

S/N: 37100120120053712

 

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

 

 

	Creditor:	Agricultural Bank of China, Jinan Hi-Tech Development Zone Branch
	 	 
	Guarantor:	LI Qiang

 

 

To ensure the performance of Domestic Factoring
Contract (with Recourse) (Contract No. 37062020120000222) (“Master Contract”) between the Creditor and Trunkbow Asia
Pacific (Shandong) Co. Limited (the “Debtor”), the Guarantor is willing to provide the following guarantee.

 

 

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

 

The type of master debt under the guarantee
is factoring with recourse, the principal amount of which is RMB 2,750,000.00 even

 

Article 2Scope of the 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 3Guarantee Method

 

The guarantee method hereunder is joint
and several liability guarantee. If there are more than one guarantors, each guarantor will bear joint and several liabilities
with respect to the Creditor.

 

Article 4Term of the Guarantee

1.The term of the guarantee provided by the Guarantor
is 2 years starting from the expiration of the performance period under the Master Contract.

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2.The term of the guarantee under acceptance of commercial
bills and issuance of relief margin and letter of credit is 2 years starting from the date on which the Creditor makes such advance
payment.

 

3.The term of the guarantee under discounted commercial
bills is 2 years starting from the due date of such bills.

 

4.If the Creditor and the Debtor extend the performance
period of the Master Contract and the Guarantor continues its guarantee, the term of the guarantee is 2 years starting from the
expiration of such extension.

 

5.If the debt under the Master Contract is declared
due in advance by the Creditor in accordance with the Master Contract, the term of the guarantee is 2 years starting from such
earlier due date.

 

Article 5The Guarantor’s Warranties

 

1.The Guarantor has obtained all authorization
necessary for the guarantee.

 

2.The Guarantor has provided true, complete
and effective financial statements, company charter or other relevant documents to the Creditor and will accept the Creditor’s
supervision in its operation and financial condition.

 

3.If the Debtor fails to perform its
debt obligations, the Guarantor will perform its guarantee responsibility.

 

4.If the Guarantor fails to perform
its guarantee responsibility, the Creditor has the right to make deductions of such amount directly from the Guarantor’s
account with the Creditor.

5.During the period of the guarantee,
the Guarantor will notify the Creditor immediately in writing upon the occurrence of any of the following:

		(1)	Change in the name, address, contact information and legal representative of the Guarantor;
	 	 	 

		(2)	Change in the affiliate relationship, senior management, company charter and organization of the Guarantor;
	 	 	 
	 	(3)	Experience of material difficulty
in the operations and financial condition;
	 	 	 

		(4)	The Guarantor files, or is forced to file, for bankruptcy, restructuring;
	 	 	 

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

		(6)	Other situations that will affect the realization of the creditor’s right;
	 	 	 

 

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6.Before undertaking any of the following,
the Guarantor must notify the Creditor in writing within 15 days and obtain the Creditor’s approval:

 

		(1)	The Guarantor changes its capital or business structure, including but not limited to contracting, lease, merger, spin-off,
reorganization, joint venture or joint capital, transfer of assets and filing for reorganization, settlement or bankruptcy;
	 	 	 

		(2)	The Guarantor provides guarantee to a third party or any other guarantee for its other debts.
	 	 	 

 

Article 6Assumption of the Responsibility for Guarantee

 

1.Upon the occurrence of any of the following, the Creditor
has the right to demand the Guarantor to assume its responsibility for guarantee:

 

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

		(2)	The Debtor or the Guarantor is involved in the bankruptcy or settlement proceedings ordered by a court;
	 	 	 

		(3)	The Debtor’s, or the Guarantor’s, license is revoked, or the Debtor or the Guarantor is ordered to shut down or
dissolved;
	 	 	 

		(4)	The Debtor or the Guarantor is dead or declared missing or dead;
	 	 	 

		(5)	The Guarantor violates its obligations hereunder;
	 	 	 

		(6)	Other situations that will adversely affect the realization of the Creditor’s right.
	 	 	 

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

 

3.If the Debtor has provided guarantee by using property
as security and the Creditor waives such guarantee, the Guarantor agrees to continue to bear joint and several liability for guarantee.

 

4.If the Guarantor has provided guarantee for multiple debts
(including the debt under the Master Contract) and the payment from the Guarantor is insufficient to repay all the debts due, the
Creditor has the right to decide the order of applying such payment with regard to the debts.

 

5.The Creditor has the right to decide the order when exercising
its right to offset or its right of subrogation

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Article 7Liability for Breach

 

1.If the Debtor fails to repay the Creditor, the Guarantor
must be responsible for all the resulting loss suffered by the Creditor.

 

2.Upon the occurrence of any of the following on the part
of the Guarantor, the Guarantor must pay default damages and compensate the Creditor for any resulting loss:

 

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

		(2)	Failure to provide true, complete and effective financial statements, company charter or other relevant information;
	 	 	 

		(3)	Failure to notify the Creditor of the situation set forth in Section 5.5 herein;
	 	 	 

		(4)	Engaging in activities in Section 5.6 herein without obtaining the Creditor’s prior approval;
	 	 	 

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

 

Article 8Offset Right and the Dissolution Right Objection
Period

 

If the Creditor exercises its offset right
or dissolution right in accordance with the law or with the provisions herein, the Guarantor has 7 days (starting from the day
when the Creditor notifies the Guarantor either orally or in writing) to raise objections.

 

 

Article 9Dispute 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 10Other Matters

 

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

 

 

Article 11Contract Effectiveness

 

This contract becomes effective upon execution.

 

 

Article 12This contract is in duplicates, with one to each
party.

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	Creditor:	/seal/ Agricultural Bank of China, Jinan Hi-Tech Development Zone
	Legal Representative:	ZHANF Guiying
	 	 
	Guarantor:	/s/ LI Qiang
	 	 
	 	 
	Date:	June 15, 2012

 

    	5Pledge Contract

 

S/N: 37100420120004783

 

(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 1Master 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 2,750,000.00 even.

 

Article 2Scope 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 3Right Pledged

 

1.The Pledgor agrees to pledge its creditor right to
its accounts receivable (see details in the attached “List of Accounts Receivable Transferred 37130201200020597”).

 

2.The pledged rights mentioned above were valued for
the time being for RMB 3,155,220.00 even.

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Article 4The 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.

 

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 5Effectiveness of the Pledged Right

 

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

 

 

Article 6Delivery 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.

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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.

 

 

Article 7Transfer 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 8Realization 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.

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

 

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 9Return 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 10Liability for Breach

 

1.Upon the occurrence of any of the following on the part
of the Pledgor, the Pledgor must pay default damages in the amount of 10% of the master loan principal under the guarantee 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.

 

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Article 11Sharing 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 12Dispute 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 14Other Matters

 

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

 

 

Article 15Contract Effectiveness

 

This contract becomes effective upon execution.

 

 

 

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

 

 

 

 

	Pledgee:	Agricultural Bank of China, Jinan Hi-Tech Development Zone Branch
	Legal Representative:	/s/ ZHANF Guiying
	 	 
	Pledgor:	/seal/ Trunkbow Asia Pacific (Shandong) Co. Limited
	Legal Representative:	/s/ HOU Wanchun
	 	 
	Date:	 

 

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