Document:

Exhibit 10.03

      

       

      

      
        Facilities Agreement

         

        (Applicable to working capital loans not subject to a separate loan contract)

         

        

        
          	No.: 121XY2020018744	

                

        

         

          

        Facilities Grantor: China Merchants Bank Co., Ltd. Shanghai Branch (hereinafter referred to as Party A)

         

        Facilities Applicant: ACM Research (Shanghai), Inc. (hereinafter referred to as Party B)

         

        At the request of Party B, Party A agrees to grant a loan facility to Party B for its use. Party A and Party B hereby reach a consensus on the following provisions and hereby enter into this
          Agreement upon sufficient negotiation in accordance with relevant laws.

         

        1. Line of credit

         

        1.1 Under this Agreement, Party A provides Party B with the line of credit (including revolving line of credit and/or one-off line of credit) of RMB 80 million (including other currencies
          of equivalent value, the exchange rate being subject to the exchange quotation published by Party A upon the actual occurrence of a specific transaction, same as below).

         

        The outstanding balance for a specific transaction under  /  (fill in the name of the agreement) No.  /  between Party A (or Party A’s subordinate affiliate) and Party B shall
          be automatically included under this Agreement and be directly deemed as utilized facilities hereunder.

         

        1.2 The credit term is 12 months, i.e. from August 03, 2020 to August 02, 2021. Party B shall apply with Party A within the term for utilization of the
          facility for a specific credit business, and Party A will not accept facility utilization requests from Party B beyond the expiration date of the credit term, unless otherwise provided herein.

         

        1.3 Credit businesses under the facility shall include, without limitation, one or more of the following businesses: loans/order loans, trade financing, bills discounting, acceptance of
          commercial bills of exchange, confirmation/discounting for accepted commercial bills of exchange, foreign/domestic letters of guarantee, guarantee for payment of customs duty, legal-person account overdraft, derivative businesses, gold leasing,
          etc.

         

        “Trade financing” includes, without limitation, foreign/domestic letters of credit, import bill advance, delivery guarantee, import collection bill advance, package lending, export bill advance,
          export negotiation, export collection bill advance, import/export remittance financing, credit insurance financing, factoring, guarantee of bills and other business types.

         

        1.4 The revolving credit line refers to the maximum sum of the balance of the principal under one or more credit businesses described in the preceding paragraph, which is granted by Party A to
          Party B for its continuous and revolving use during the credit term.

         

        The one-off line of credit refers to the maximum sum of the aggregate incurred amount of all credit businesses described in the preceding paragraph, which is approved and granted by Party A to
          Party B during the credit term. Party B is not allowed to revolve one-time line of credit. Each credit business applied for by Party B will occupy the corresponding amount in the one-off line of credit, until such credit line is fully occupied.

         

        
          
            

        

        2. Utilization arrangement for the line of credit

         

        2.1 The specific credit business that has been applied for by Party B and approved by Party A during the credit period shall be automatically included in this Agreement and shall use the line of
          credit hereunder.

         

        2.2 If Party A conducts factoring business in which Party B is the payer (debtor of accounts receivable), Party A’s claim in the accounts receivable due from Party B as transferred by a third
          party under such business shall be deemed as utilized facilities. If Party B applies with Party A for factoring business in which Party B is the payee (creditor of accounts receivable), purchase funds (for the acquired accounts receivable) paid
          by Party A to Party B under such business with its own funds or other funds of lawful sources for purchase of Party B’s claim in the accounts receivable shall be deemed as utilized facilities.

         

        2.3 If, as required by its internal procedures, Party A entrusts any other branch of China Merchants Bank to re-issue the letter of credit to the beneficiary after the issuance of a letter of
          credit, such letter of credit and the bill negotiation and shipping guarantee business thereunder shall be deemed as utilized facilities.

         

        When conducting the import letter of credit business, if subsequently, there is an import bill advance under the same letter of credit, the import letter of credit and the import bill advance
          shall be deemed as the same utilized facility at different stages. In other words, in the case of the import bill advance business, the facilities reinstated after payment with letter of credit will be used in import bill advance and shall be
          deemed as the same utilized facility under the original import letter of credit.

         

        3. Approval and utilization of facilities

         

        3.1 The type of facilities (revolving line of credit or one-off line of credit) under this Agreement, the applicable types of credit business, the amount of facilities corresponding to each type
          of credit business, whether the facilities under different types of credit business may be shared, and the specific conditions of use, shall be subject to the approval of Party A. If Party A adjusts its original approval for an application
          submitted by Party B during the credit term, the subsequent approval issued by Party A shall constitute a supplementation and amendment to the original approval, and so on.

         

        3.2 Party B’s use of the credit line must be applied for on a case-by-case basis, and Party B shall submit the materials required by Party A for Party A’s approval on a case-by-case basis. Party
          A may decide whether to approve the application by taking into account its internal management requirements and Party B’s business conditions, and may unilaterally reject Party B’s application without any legal liability to Party B. If there is
          any discrepancy between this clause and other relevant provisions of this Agreement, this clause shall prevail.

         

        3.3 Upon Party A’s approval of a specific credit business, the specific business documents signed by the Party A and Party B for such business (including but not limited to individual
          agreements/applications, framework agreements or specific business contracts) shall constitute an integral part of this Facilities Agreement. The specific amount, interest rate, term, purpose, costs and other elements of each loan or other credit
          business shall be subject to the specific business documents, business vouchers confirmed by Party A (including but not limited to loan notes, etc.) and records in Party A’s system.

         

        
          
            

        

        Where Party B requests a working capital loan within the credit line, there is no need for the Parties to sign a separate loan contract. Party B shall submit a withdrawal application on a
          case-by-case basis, and Party A shall approve such application on a case-by-case basis.

         

        3.4 Party A has the right to adjust the base interest rates or interest rate pricing methods for loans/other credits under this Agreement on a regular or
            irregular basis in consideration of changes in relevant State policies, domestic and overseas market conditions, or its own credit policies. Such adjustment shall become effective upon Party A’s notice to Party B (by publishing an announcement
            at Party A’s outlets or China Merchants Bank’s official website, or sending a notice to the mailing address/contact details provided by Party B herein). If Party B does not accept the adjustment, it may make repayments in advance; otherwise,
            the adjustment shall be deemed to have been accepted by Party B and apply according to the above notice. If a relevant financing business hereunder involves periodic repricing, and the market base
            interest rate at the time of repricing is 0, Party A will make the pricing with 0 as the base interest rate.

         

        If there is any discrepancy between this clause and other relevant provisions of this Agreement, this clause shall prevail.

         

        3.5 The term for using each loan or other credit within the credit line shall be determined based on Party B’s operation needs and Party A’s business management rules. The maturity date of a
          specific business may be later than the expiration date of the credit term (unless otherwise required by Party A).

         

        3.6 During the credit term, Party A has the right to conduct regular annual reviews of Party B’s operations, financial conditions, etc., and adjust the credit line granted to Party B based on the
          review results.

         

        4. Interest rate for working capital loans

         

        4.1 The interest rate for each loan under this Agreement shall be specified by Party B in the corresponding withdrawal application for Party A’s approval. If there is any discrepancy between the
          withdrawal application and the loan note or the record in Party A’s system, the loan note or the record in Party A’s system shall prevail.

         

        4.2 If Party B fails to use a loan for purposes agreed in this Agreement, for the part not used for the agreed purposes, a penalty interest shall accrue at the original interest rate plus 100%
          from the date of change of the purposes. The original interest rate refers to the interest rate applicable before the purposes of the loan are changed.

         

        If Party B fails to repay a loan on time, for the unpaid portion of the loan, an overdue interest (penalty interest) shall accrue at the original interest rate plus 50% (overdue interest
          rate) from the overdue date. The original interest rate refers to the interest rate applicable before the loan maturity date (including early maturity date) (or the interest rate applicable in the last floating period before the loan maturity
          date (including early maturity date), if floating interest rate is used).

         

        If a loan is both overdue and not used for the agreed purposes, the higher of the above interest rate shall apply.

         

        4.3 During the loan term, if the People’s Bank of China adjusts the rules for loan interest rates, the relevant rules of the People’s Bank of China shall apply.

         

        
          
            

        

        4.4 If a loan maturity date falls on a holiday, the loan shall be automatically extended to the first working day immediately following the holiday, and interest shall accrue for the actual
          number of days utilized by the loan funds.

         

        4.5 Party B shall pay interest on each interest payment date. Party A may directly deduct interests payable from any account of Party B opened with China Merchants Bank. If the repayment date of the last installment of the loan principal is not an interest payment date, the repayment date of the last installment of the loan principal shall be taken as the interest payment date, and the borrower
            shall pay all interests accrued on the loan principal on that date. If Party B fails to pay interests on time, a compound interest shall accrue on the overdue interests (including penalty interests) at the overdue interest rate provided
          in this article.

         

        5. Guarantee

         

        5.1 For all debts owed by Party B to Party A under this Agreement, Party B or a third party recognized by Party A shall provide guarantee by mortgaging certain property or provide joint security.
          Party B or such third-party guarantor shall issue or sign a separate guarantee document at Party A’s request.

         

        5.2 If the guarantor fails to sign the guarantee document or complete the guarantee procedures in accordance with this article (including where the debtor of accounts receivable raises a
          challenge against such accounts before they are pledged), Party A has the right not to provide the relevant facilities to Party B.

         

        5.3 Where a mortgagor mortgages a real estate as guarantee for all debts owed by Party B to Party A under this Agreement, if Party B becomes aware that the collateral is or may be included in the
          government’s demolition or expropriation plan, it shall notify Party A thereof immediately and urge the mortgagor to use the compensation items received from the demolishing party as ongoing guarantee for Party B’s debts in accordance with the
          mortgage contract, and promptly complete the relevant guarantee procedures, or, at Party A’s request, provide other security measures approved by Party A.

         

        If, due to the occurrence of an event described in the preceding paragraph to the collateral, it is necessary to re-establish the guarantee or provide other security measures, the relevant costs
          incurred shall be borne by the mortgagor, and Party B shall bear joint and several liability for such costs. Party A has the right to directly deduct such costs from Party B’s account.

         

        6. Party B’s rights and obligations

         

        6.1 Party B has the following rights:

         

        6.1.1 To request Party A to provide loans or other credits within the credit line in accordance with the conditions set forth in this Agreement;

         

        6.1.2 To use the credit line in accordance with this Agreement;

         

        6.1.3 To request Party A to keep confidential any information provided by Party B about its production, operations, property, accounts, etc., unless otherwise provided in this Agreement;

         

        6.1.4 To transfer debts to a third party with the written consent of Party A.

         

        
          
            

        

        6.2 Party B bears the following obligations:

         

        6.2.1 To truthfully provide documents and materials required by Party A (including but not limited to providing authentic financial books/statements and annual financial reports at the frequency
          required by Party A, material decisions on and changes in the production, operations and management, fund withdrawal/use materials, collateral materials, etc.), as well as information of its account opening bank, account number, deposit and loan
          balance, and cooperate with Party A in investigations, reviews and inspections;

         

        6.2.2 To be subject to Party A’s supervision over the use of credit funds and the relevant production, operation and financial activities;

         

        6.2.3 To use loans and/or other credits in accordance with the provisions of and/or for purposes committed under this Agreement or specific business documents;

         

        6.2.4 To repay the principal, interests and costs of all loans, advances and other credit debts in full and on time in accordance with this Agreement and specific business documents;

         

        6.2.5 To obtain the written consent of Party A before transferring all or part of its debts under this Agreement to any third party;

         

        6.2.6 Upon the occurrence of any of the following events, Party B shall notify Party A immediately and cooperate actively with Party A to provide security measures for the safe repayment of the
          principal, interests and costs of the loans, advances and other credit debts under this Agreement:

         

        6.2.6.1 Party B experiences a material financial loss, assets loss or other financial crisis;

         

        6.2.6.2 Party B offers a loan or provides a guarantee or security in favor of a third party or in protection of a third party against loss, or provides its own property (rights) as mortgage
          (pledge) collateral;

         

        6.2.6.3 Party B suspends business operations, has its business license revoked or cancelled, applies or is applied for bankruptcy or dissolution, or changes its key company information, e.g.,
          company name, registered address, place of business, beneficial owner, etc.;

         

        6.2.6.4 Party B’s controlling shareholder, affiliated company or de facto controller sustains a material operating or financial crisis, which affects its
          normal business operations, or Party B’s legal representative/principal, director or key senior management personnel are replaced or are punished/restricted of freedom by a competent Chinese authority
          for breach of law, misconduct or for other reasons, or are missing for 7 days, which may affect its normal business operations;

         

        6.2.6.5 Party B makes a related-party transaction with its controlling shareholder, affiliated company or de facto controller in an amount equal to 10%
          of Party B’s net assets (Party B’s notice shall at least include the affiliation relationship between the transaction parties, transaction items and nature, transaction amount or ratio, pricing policy (including transactions for no price or a
          nominal price only), etc.);

         

        6.2.6.6 Party B faces any litigation, arbitration or criminal or administrative penalty which has significant adverse impact on its operations or property conditions;

         

        
          
            

        

        6.2.6.7 Party B or its de facto controller is engaged
            in a significant amount of private usury, or has bad records at other financial institutions for borrowing new loans to repay old ones, overdue loans, overdue interests, etc.; or the internal capital chain of Party B’s affiliate is broken and a
            debt crisis occurs; or Party B’s project is terminated or suspended or Party B makes a material investment error;

         

        6.2.6.8 Other major events which may affect Party B’s solvency.

         

        6.2.7 Party B shall not be negligent to manage or recover its claims falling due, or dispose of its existing major property without a compensation or by other inappropriate means.

         

        6.2.8 Party B must obtain the prior written consent of Party A for materials matters such as merger (acquisition), division, restructuring, joint venture (partnership), assets (equity interests)
          transfer, shareholding reform, foreign investment, increasing debt financing, etc.

         

        6.2.9 Where accounts receivable are pledged, Party B shall ensure that the credit balance at any point during the credit term will remain below 80% of the balance of the pledged accounts
          receivable; otherwise, Party B must provide new accounts receivable approved by Party A as pledge or lodge a deposit (the deposit account shall be the one automatically created or recorded in Party A’s system when the deposit is lodged, the same
          below), until the balance of the pledged accounts receivable × 80% + valid deposit > credit balance.

         

        6.2.10 Where Party B lodges a deposit, if the balance in the deposit account falls under 95% of the amount of the specific business due to exchange rate fluctuations, Party B shall
          supplement a corresponding amount of deposit or provide other guarantees at Party A’s request.

         

        6.2.11 Party B shall ensure that all import sales revenues are retrieved into Party A’s designated account, and for export negotiations, all bills and/or documents under letters of credit are
          transferred to Party A.

         

        6.2.12 Party B shall ensure that settlements, payments and other revenue earning and expending activities are mainly made via its settlement bank account opened with Party A. During the credit
          term, the proportion of settlement transactions made via such designated account shall be at least not lower than the proportion of Party B’s financing amount with Party A in its total financing amount with all banks.

         

        7. Party A’s rights and obligations

         

        7.1 Party A has the following rights:

         

        7.1.1 To request Party B to repay the principal, interests and costs of loans, advances and other credit debts under this Agreement or specific contracts in full and on time;

         

        7.1.2 To request Party B to provide materials for the utilization of its credit line;

         

        7.1.3 To learn about Party B’s production, operations and financial activities;

         

        7.1.4 To supervise over Party B’s use of loans and/or other credits for purposes stipulated in this Agreement and specific business documents; and to
            unilaterally and directly suspend or limit, for business needs, the corporate online banking/corporate App/other online functions of Party B’s account (including but not limited to closing corporate online banking/corporate App/other
          online functions, presetting a payee list/single payment cap amount/phased payment cap amount and other limits) and other electronic payment channels, limiting the sale of settlement vouchers, or limiting over-the-counter payments and fund
          transfers via Party B’s account as well as the payment and exchange functions in non-counter channels such as telephone banking and mobile banking;

         

        
          
            

        

        7.1.5 To, after issuing a letter of credit upon Party B’s application, delegate another branch of China Merchants Bank at the place where the beneficiary is domiciled to re-issue the letter of
          credit to the beneficiary as required by its internal processes;

         

        7.1.6 To deduct directly from any account opened by Party B with any institution of China Merchants Bank for the repayment of Party B’s debts under this Agreement and specific business documents
          (if a credit debt is not in RMB, to directly use funds in Party B’s RMB account, converted at the exchange rate announced by Party A at the time of deduction, to repay the principal, interests and costs of such credit debt);

         

        7.1.7 To transfer its claims against Party B and take actions as it deems fit to notify Party B of such transfer and seek collection from Party B, including but not limited to by fax, mail,
          personal delivery, announcement in public media, etc.;

         

        7.1.8 To supervise over and entrust other institutions of China Merchants Bank to supervise over Party B’s accounts, and control the payment of loan funds for such loan purposes within such
          payment scope as agreed by the Parties;

         

        7.1.9 If Party A finds that Party B falls under any of the circumstances specified in Article 6.2.6 of this Agreement, Party A has the right to request Party B to provide security measures for
          the safe repayment of the principal, interests and all relevant costs of the credit debts under this Agreement at Party A’s request, and also to directly take one or more breach remedies stipulated in the “Breach Events and Handling” clause of
          this Agreement;

         

        7.1.10 Other rights specified in this Agreement.

         

        7.2 Party A bears the following obligations:

         

        7.2.1 To release loans or provide other credits within the credit line to Party B in accordance with the conditions set forth in this Agreement and specific contracts;

         

        7.2.2 To keep confidential the assets, finance, production and operations of Party B, unless otherwise provided in laws and regulations, or otherwise required by regulatory authorities, or unless the recipient is Party A’s superior or subordinate entities or external auditors, accountants, lawyers or other professionals bound by the same confidentiality obligations.

         

        8. Special warranties of Party B

         

        8.1 Party B is a legal-person entity duly established and legally existing under Chinese laws, has completed true, legal and valid registration, annual reporting and disclosure procedures, and
          has full civil capacity to sign and perform this Agreement;

         

        8.2 Party B has full authorization from its board of directors or any other competent body to sign and perform this Agreement;

         

        8.3 All documents, materials, vouchers, etc. provided by Party B concerning itself and the guarantors, mortgagors (pledgors), mortgage (pledge) collateral, etc. are true, accurate, complete,
          valid and free from any material misstatement of facts or omission of any material fact;

         

        
          
            

        

        8.4 Party B shall strictly abide by the specific business documents and the relevant correspondences and documents issued to Party A;

         

        8.5 There are no and will be no lawsuits, arbitrations or criminal or administrative penalties which may have significant adverse impact on Party B or Party B’s main property on the signing date
          or during the performance of this Agreement. Upon the occurrence of any such event, Party B shall notify Party A immediately;

         

        8.6 Party B shall strictly abide by all Chinese laws and regulations in its business activities, strictly carry out business within the scope stated in its business license or as legally
          approved, and undergo enterprise (legal-person) registration, annual reporting, business term renewal/extension and other procedures on time;

         

        8.7 Party B shall maintain or improve its existing operation and management levels and ensure the preservation and appreciation of its existing assets. It shall not waive any claims falling due
          or dispose of its existing major property without a compensation or by other inappropriate means;

         

        8.8 Without the permission of Party A, Party B shall not repay any other long-term debts in advance;

         

        8.9 All loans applied for under the credit shall meet the requirements of laws and regulations. Party B shall not use the loans for investment in fixed assets, equity interests, etc., or for
          speculation in marketable securities, futures or real estate, or for mutual borrowing to seek illegal gains, or in areas and for purposes banned by the State for its production and operation, or for purposes other than those specified in this
          Agreement and specific business documents;

         

        Where loan funds are to be paid by the borrower itself, Party B shall report to Party A on a regular basis (at least on a monthly basis) the payment of such loan funds, and Party A has the right
          to verify whether the loan funds are paid for the agreed purposes via account analysis, voucher inspection, on-site investigation, etc.

         

        8.10 There are no other major events concerning Party B which will affect Party B’s performance of its obligations under this Agreement on the signing date and during the performance of this
          Agreement.

         

        9. Special provisions on working capital loans

         

        9.1 Withdrawal and use of funds

         

        Party B may use the working capital loans under this Agreement by way of self payment or entrusted payment.

         

        9.1.1 Self payment

         

        Self payment means that Party A releases the loan funds into Party B’s account upon Party B’s withdrawal application, while Party B makes payment to a counterparty for purposes stipulated in the
          relevant agreement.

         

        9.1.2 Entrusted payment

         

        Entrusted payment means that, upon Party B’s withdrawal application and entrustment, Party A pays the loan funds to a counterparty for purposes stipulated in the relevant agreement via Party B’s
          account. For loan funds under entrusted payment, Party B authorizes Party A to pay the same to the counterparty through Party B’s account on the loan release date (or on the first working day immediately following the loan release date).

         

        
          
            

        

        9.1.3 Under any of the following circumstances, Party B shall unconditionally and fully make entrusted payment:

         

        9.1.3.1 The amount of a single withdrawal exceeds RMB 10 million (including, or equivalent in, foreign currency);

         

        9.1.3.2 Party A requires Party B to make entrusted payment based on regulatory requirements or risk management needs.

         

        9.1.4 For an entrusted payment, Party B’s outward payment of the loan funds after disbursement of the loan must be approved by Party A. Party B shall not evade Party A’s supervision by online
          banking, check inversing, or breaking up a large payment into several small ones, etc.

         

        9.2 When Party B withdraws a fund, it shall submit a withdrawal application (affixed with Party B’s official seal or its specimen seal/signature recorded at Party A) and a loan note as required
          by Party A, as well as materials required by Party A for self payment or entrusted payment, as the case may be; otherwise, Party A has the right to refuse Party B’s withdrawal application. If any payment is delayed or fails due to inaccurate or
          incomplete payment information provided by Party B, Party A shall not be held liable for Party B’s breach towards its counterparty or other losses caused thereby.

         

        9.3 Loan extension

         

        If Party B is unable to repay a loan under this Agreement on time and needs an extension, it shall submit a written application to Party A one month before the expiration of the loan. If Party A
          agrees to grant the extension after examination, the Parties shall sign a separate loan extension agreement. If Party A does not agree to grant the extension, the loan amount already utilized by Party B and the interests accrued thereon shall be
          repaid in accordance with this Agreement, the relevant loan note or the record in Party A’s system.

         

        10. Breach events and handling

         

        10.1 If Party B falls under any of the following circumstances, a breach event shall be deemed to have occurred:

         

        10.1.1 Party B fails to perform or violates its obligations under this Agreement;

         

        10.1.2 Party B’s special warranties under this Agreement are untrue or incomplete, or Party B violates any such special warranty and fails to make corrections as required by Party A;

         

        10.1.3 Party B fails to withdraw or use loans in accordance with this Agreement, or fails to repay any loan principal, interest or costs in full and on time in accordance with this Agreement, or
          fails to use the funds in the fund retrieval account as required by Party A, or fails to subject itself to Party A’s supervision and make prompt corrections as required by Party A;

         

        10.1.4 Party B commits a material breach under a legally valid contract with other creditors, which is not satisfactorily resolved within three months upon occurrence.

         

        A material breach mentioned above refers to a breach by Party B which entitles the creditor to claim an amount of over RMB 1 million against Party B.

         

        
          
            

        

        10.1.5 Where Party B is a company listed on the National Equities Exchange and Quotations (NEEQ) or intends to apply for NEEQ listing, its NEEQ listing encounters material obstacles or its
          application for listing is suspended; Party B is issued a warning letter by the NEEQ market, is ordered to make corrections, has transactions via its securities account restricted, or is subject to other self-regulatory measures for 3 times or
          more, or is imposed disciplinary actions, a termination of listing, etc.;

         

        10.1.6 Where Party B is a supplier of a government procurement unit, the government procurement unit delays payment for three consecutive or cumulative times or presents other risks not conducive
          to the repayment of Party B’s credit debts to Party A, or Party B is disqualified as a supplier (is entered into the government’s procurement blacklist), or makes untimely delivery of goods, or supplies products of unstable quality, or
          experiences operation difficulties or significant deterioration in its financial conditions (insolvency), or discontinues its projects, etc.;

         

        10.1.7 Party B’s financial indicators fail to continuously meet the requirements of this Agreement/specific business documents; or the preconditions (if any) for Party A’s grant of
          credit/financing to Party B under this Agreement/specific business documents are not continuously satisfied;

         

        10.1.8 Party B uses any loan by “breaking up a large payment into several small ones” to avoid the requirements of this Agreement under which Party B should have entrusted Party A to make outward
          payments with the loan funds;

         

        10.1.9 Party B’s business activities may cause compliance risks of anti-money laundering or sanction to Party A.

         

        10.1.10 Other circumstances which Party A believes will impair its legitimate rights and interests.

         

        10.2 Where a guarantor falls under any of the following circumstances, which Party A believes may affect the guarantor’s ability of guarantee and thus requests the guarantor to eliminate the
          adverse impact caused thereby or requests Party B to increase or replace the guarantee conditions, if the guarantor or Party B fails to cooperate, a breach event shall be deemed to have occurred:

         

        10.2.1 Any event similar to those described in Article 6.2.6 occurs or any event described in Article 6.2.8 occurs without the consent of Party A;

         

        10.2.2 The guarantor, at the time of issuing an irrevocable letter of guarantee, conceals its actual ability to assume the liability of guarantee, or fails to obtain the authorization from the
          competent authority;

         

        10.2.3 The guarantor fails to complete the relevant registration, annual reporting and/or business term renewal/extension or other procedures on time;

         

        10.2.4 The guarantor is negligent to manage or recover its claims falling due, or disposes of its existing major property without a compensation or by other inappropriate means.

         

        10.3 Where a mortgagor (or pledgor) falls under any of the following circumstances, and Party A believes that the mortgage (or pledge) cannot be established or the mortgage (or pledge) collateral
          becomes insufficient and thus requests the mortgagor (or pledgor) to eliminate the adverse impact caused thereby or requests Party B to increase or replace the guarantee conditions, if the mortgagor (or pledgor) or Party B fails to cooperate, a
          breach event shall be deemed to have occurred:

         

        
          
            

        

        10.3.1 The mortgagor (or pledgor) has no title to or right of disposition in the mortgage (pledge) collateral, or there are disputes over such title or right;

         

        10.3.2 The mortgage (or pledge) collateral has not undergone mortgage/pledge registration procedures, or has been leased, seized, attached, put into custody, or is subject to a joint/statutory
          right of priority (including but not limited to the right of priority over construction project funds), etc., and/or such situation is concealed;

         

        10.3.3 The mortgagor transfers, leases, re-mortgages or disposes of the collateral in any other inappropriate manner without the written consent of Party A, or the mortgagor does so with the
          written consent of Party A but fails to use the proceeds from such disposal at Party A’s request to repay the debts owed by Party B to Party A;

         

        10.3.4 The mortgagor fails to properly preserve, maintain or repair the collateral, resulting in a significant reduction in the value of the collateral; or the mortgagor acts in such a manner as
          to directly endanger the collateral, resulting in a reduction in the value of the collateral; or the mortgagor fails to procure/renew insurance for the collateral as required by Party A during the mortgage term;

         

        10.3.5 The collateral is or may be included in the government’s demolition or expropriation plan, but the mortgagor fails to promptly notify Party A thereof or perform the relevant obligations
          under the mortgage contract;

         

        10.3.6 The mortgagor uses the residual value of a property mortgaged to China Merchants Bank as collateral to provide guarantee for a business under this Agreement, and before Party B has repaid
          the credits hereunder, the mortgagor settles his/her individual mortgage loan in advance without the consent of Party A;

         

        10.3.7 Where the pledgor uses a financial product as collateral, the source of the fund used to subscribe for the financing product is illegal/incompliant with regulations;

         

        10.3.8 The mortgage (pledge) collateral is or may be involved in other events which will affect the value of the collateral or Party A’s right of mortgage (pledge) in the collateral.

         

        10.4 Where the guarantee under this Agreement includes the pledge of accounts receivable, if the debtor of the accounts receivable experiences significant deterioration in its business
          operations, or transfers property/withdraws funds to evade debts, or colludes with the pledgor of the accounts receivable to change the repayment path, resulting in the accounts receivable not repaid into the special repayment account, or loses
          business reputation, or loses or may lose the ability to perform the relevant contract, or falls under other major circumstances which will affect its ability to repay debts, Party A has the right to request Party B to provide corresponding
          guarantee or pledge other valid accounts receivable. If Party B fails to do so, a breach event shall be deemed to have occurred.

         

        10.5 If a breach event described above occurs, Party A has the right to take the following measures separately or simultaneously:

         

        10.5.1 Reduce the credit line under this Agreement, or stop the use of the remaining credit line;

         

        
          
            

        

        10.5.2 Early recover the principal, interests and relevant costs of loans already disbursed within the credit line;

         

        10.5.3 For bills of exchange already accepted by Party A or letters of credit, letters of guarantee, delivery letters of guarantee, etc. already issued by Party A (including those re-issued under
          a delegation arrangement) during the credit term, regardless of whether Party A has made any advances, Party A may request Party B to lodge additional deposits or transfer the deposit balance in Party B’s other accounts opened with Party A into
          the deposit account as deposit for any future advances made by Party A for Party B under this Agreement, or escrow the corresponding amount to a third party as deposit for future advances by Party A for Party B;

         

        10.5.4 For claims in unpaid accounts receivable transferred from Party B under a factoring business, Party A has the right to request Party B to immediately perform the obligations of repurchase
          and take other recovery measures under the relevant specific business documents. For claims in accounts receivable against Party B which are transferred from Party B under a factoring business, Party A has the right to recover them from Party B
          immediately.

         

        10.5.5 Party A may also, based on the actual situation, directly request Party B to provide other property acceptable to Party A as new guarantee. If Party B fails to provide the new guarantee as
          required, it shall pay liquidated damages at 30% of the credit line under this Agreement.

         

        10.5.6 Directly freeze/deduct the deposit balance in any settlement account and/or other accounts opened by Party B with China Merchants Bank, stop opening new settlement accounts for Party B,
          and stop issuing new credit cards to Party B’s legal representative;

         

        10.5.7 Report information of Party B’s breaches and dishonesty to credit reporting agencies and banking associations, and share such information among banking institutions or even make it public
          by appropriate means;

         

        10.5.8 Dispose of the mortgage (pledge) collateral and/or recover against the guarantor in accordance with the guarantee documents;

         

        10.5.9 Change the conditions for entrusted payment of funds of working capital loans under the credit line, or cancel the option of “self payment” of loan funds by Party B;

         

        10.5.10 Make recoveries in accordance with this Agreement.

         

        10.6 Funds recovered by Party A shall be used to repay credits in a “from the last to the first” order based on their actual maturity dates. For each specific credit, the repayment order shall
          be: costs, liquidated damages, compound interest, penalty interest, interest, and principal, until the principal, interests and all relevant costs are fully repaid.

         

        Party A has the right to unilaterally adjust the above repayment order, unless otherwise provided by laws and regulations.

         

        11. Amendment and supplementation to the Agreement

         

        This Agreement may be amended by the Parties through mutual consultation with a written agreement. This Agreement shall remain valid until such written amendment is signed. Neither Party may make
          unilateral amendment to this Agreement without authorization.

         

        
          
            

        

        Written supplementary agreements signed by the Parties for matters not covered herein or amendments hereto, together with the specific business documents hereunder, shall constitute an integral
          part of this Agreement.

         

        12. Miscellaneous

         

        12.1 During the term of this Agreement, any tolerance or grace period granted by Party A for any breach or default by Party B or any delay by Party A in enforcing its rights or interests
          hereunder shall not impair, affect or restrict Party A’s rights and interests as a creditor under applicable laws and this Agreement, or constitute Party A’s permission or endorsement of any breach hereof, or be taken as Party A’s waiver of its
          right to take actions against any existing or future breaches.

         

        12.2 If, for any reason, this Agreement or any provision hereof becomes invalid at law, Party B shall remain obliged to repay all debts owed to Party A under this Agreement. In such event, Party
          A has the right to terminate the performance of this Agreement and immediately recover all debts owed by Party B under this Agreement.

         

        If, due to any change in applicable laws and policies, Party A incurs additional costs in performing its obligations under this Agreement, Party B shall indemnify Party A for such additional
          costs at Party A’s request.

         

        12.3 Notices, demands or other documents relating to this Agreement between the Parties shall be sent in writing (including but not limited to by mail, fax, email, corporate online
          banking/corporate APP or other electronic platforms, mobile phone text message, WeChat, etc.).

         

        12.3.1 A notice shall be deemed duly served, if delivered by person (including but not limited to by lawyer/notary public, courier, etc.), on the date of acknowledgement of receipt by the
          recipient (if the recipient rejects, on the day of rejection/return or seven days after the delivery date (whichever is earlier));if sent by mail, seven days after the sending date; if sent by fax, email, notification on Party A’s electronic
          platform, mobile phone text message, WeChat or other electronic means, on the date when the sender’s relevant system displays a transmission success message.

         

        Where Party A makes an announcement in public media to notify Party B of a transfer of creditor’s rights or seek collection from Party B, the notice shall be deemed duly served on the date of
          such announcement.

         

        Where a Party changes its mailing address, email address, fax number, mobile number or WeChat account, it shall notify the other Party of such change within five working days from the date of the
          change; otherwise, the other Party has the right to serve notices to the original mailing address or other contact details. If a notice is not successfully served due to a change in the recipient’s mailing address or other contact details, it
          shall be deemed duly served on the date of return or seven days after the date of delivery (whichever is earlier). The Party making the change shall bear all potential losses caused thereby, without prejudice to the legal effect of the service.

         

        12.3.2 The mailing address, email address, fax number, mobile number and WeChat account stated in this Agreement shall be the Parties’ respective addresses for service of notary and judicial
          instruments (including but not limited to statements of complaint/arbitration applications, evidence, subpoena, notices of response, notices of production of evidence, notices of court session, hearing notices, judgments/arbitral awards, rulings,
          mediation letters, notices of performance within subscribed time limit, etc. and other legal instruments at the case hearing and enforcement stages). Service by the court handling the case or a notary public to the above address in writing by
          means stipulated in this Agreement shall be deemed as effective service (the specific standards for effective service are set forth in the preceding paragraph).

         

        
          
            

        

        12.4 The Parties agree that, for trade financing business applications, Party B only needs to affix its specimen seal/signature recorded at Party A, the effect of which is recognized by both
          Parties.

         

        12.5 The Parties agree that, for credit business applications or business vouchers submitted by Party B via Party A’s electronic platforms (including but not limited to
          corporate banking/corporate App), electronic signature generated from the digital certificate shall be deemed as Party B’s valid signature, representing Party B’s true intent. Party A has the right to prepare the relevant business vouchers based
          on the application information submitted online, and Party B recognizes the authenticity, accuracy and legitimacy thereof and shall be bound thereby.

         

        12.6 To facilitate business handling, Party A’s operations involving any transaction (including but not limited to the acceptance of applications, review of materials, loan disbursement,
          transaction confirmation, fund deduction, inquiry, receipt printing, collection, crediting and debiting of funds, and notifications) may be handled by any of its outlets within its jurisdiction, and such outlet may generate, make or issue the
          relevant correspondences accordingly. All business operations and correspondences made by Party A’s outlets within Party A’s jurisdiction shall be deemed as Party A’s actions and be binding on Party B.

         

        12.7 Appendixes hereto shall constitute an integral part of this Agreement and automatically apply to the relevant specific businesses which actually occur between the Parties.

         

        12.8 Costs for notarization (excluding mandatory notarization) or for other services provided by a third party shall be borne by the entrusting Party. If the Parties jointly act as the entrusting
          party, each Party shall bear 50%.

         

        If Party B fails to repay a debt to Party A under this Agreement on time, it shall bear all attorney’s fees, litigation costs, travel expenses, announcement fees, delivery fees and other costs
          incurred by Party A to enforce its creditor’s rights. Party B authorizes Party A to deduct such costs directly from its bank accounts opened with Party A. If there is a shortage, Party B warrants to make up for it in full upon receipt of Party
          A’s notice without the need for Party A to provide any proof.

         

        12.9 At Party A’s request, Party B shall (tick “√” in the “☐”):

         

        ☐ Procure insurance for its core assets and name Party A as a beneficiary with top priority;

         

        ☐ Not sell or mortgage the  /  assets designated by Party A until all credit debts are settled;

         

        ☐ Impose the following restrictions on dividends to its shareholders as required by Party A until all credit debts are settled: /

         

        12.10 Party B shall ensure that all its financial indicators will not go below the following criteria during the credit term:  /

         

        12.11 Party B also recognizes the provisions of the Cooperation Agreement on Group Facility Business
            No.  /  between China Merchants Bank  /  Branch and Party B’s parent company/ headquarters/ controlling company  /  (fill in the enterprise name) (including the adjustment and supplementation made by the parties thereto from time to time), agrees to be bound by such agreement, and agrees to, as a subordinate unit under such agreement, bear
            the obligations imposed in such agreement on the subordinate units of the group. In the event of a violation of such agreement, it shall be
            deemed as a violation of this Agreement, and Party A has the right to take various remedy measures for violation provided in this Agreement.

         

        
          
            

        

        12.12 Other matters agreed:

         

        12.12.1 (1) Party B shall not use false contracts with affiliates, or bills, accounts receivable or other claims without a trade background to handle bills discounting, factoring, pledge,
            letters of credit, forfeiting or other businesses with Party A. If Party B uses a related-party transaction to damage or evade the claims of Party A or other branches of China Merchants Bank, a breach event shall be deemed to have
            occurred under this Agreement, which will entitle Party A to take the corresponding actions against the breach in accordance with this Agreement. (2) If an affiliate of Party B commits a breach against China Merchants Bank, a breach
            event shall be deemed to have occurred under the group’s credit, which will entitle Party A to, based on the extent of impact of the breach event, decide whether to take actions against the breach in accordance with this Agreement, regardless
            of whether Party B has committed a breach under this Agreement. (3) A related-party transaction refers to a transfer of resources or obligations between related parties, regardless of whether a price is charged. A party is a
            related party of the other party if it is able to directly or indirectly control or jointly control the other party or exert significant influence on the other party’s corporate finance and operation decisions. If two or more parties are
            controlled by the same party, they are also related parties. The Parties agree that the specific definition of related party shall be subject to Party A’s determination. (4) A group refers to a group of legal persons in which one
            party directly or indirectly holds (controls) or is held (controlled) by the others, or a group of legal persons who are substantially or materially affiliated to each other in terms of risk (e.g., they are controlled by the same third party or
            have other affiliation relationships, which may result in a transfer of assets and profits not at a fair price). Controlling refers to a relationship in which Party B has actual control or significant influence over the other party’s
            business decision-making, capital operations, and the appointment of its senior management personnel. The Parties agree that whether a party is a member of a group shall be subject to Party A’s determination.

         

        12.12.2 Party B is not performing any contract for domestic loans with foreign guarantee. If such a situation occurs, Party B shall report to Party A immediately, and Party A shall have the
            right to suspend the execution of new contracts for domestic loans with foreign guarantee or the handling of new withdrawals. Party B warrants that if there is any guaranteed performance under this Agreement, the sum of the balance of
            outstanding principal plus the balance of existing external liabilities will not exceed the balance of its cross-border financing risk weight. If the sum exceeds the balance of its cross-border financing risk weight, Party B shall bear all
            liability arising therefrom.

         

        13. Account information

         

        ☐ 13.1 Special loan account (tick “√” in the “☐”, if applicable)

         

        The release and payment of all loan funds under this Agreement must be made through the following account:

         

        
          
            

        

        Account name: ACM Research (Shanghai), Inc.

         

        Account number: [***]

         

        Opening bank: Business Department of China Merchants Bank Co., Ltd. Shanghai Branch

         

        13.2 Fund retrieval account

         

        13.2.1 The Parties agree to designate the following account as Party B’s fund retrieval account:

         

        Account name: ACM Research (Shanghai), Inc.

         

        Account number: [***]

         

        Opening bank: China Merchants Bank Co., Ltd. Shanghai Branch

         

        13.2.2 The account above is subject to the following supervision requirements:   / 

         

        Party A has the right to collect loans early based on Party B’s fund retrieval results. That is, whenever a fund is retrieved into the account above, loans equivalent to the
          amount of such retrieved fund may be deemed to have matured early, and Party A may deduct the same amount directly from the account to repay the loans.

         

        13.3 Party B shall provide a fund flow statement of the account above on a quarterly basis, and cooperate with Party A’s supervision over the relevant accounts and retrieved funds.

         

        14. Governing law and dispute resolution

         

        14.1 The conclusion, interpretation and dispute resolution of/under this Agreement shall be governed by and the Parties’ rights and interests shall be protected under the laws of the People’s
          Republic of China (excluding the laws of Hong Kong, Macao and Taiwan).

         

        14.2 Disputes between the Parties in the performance of this Agreement shall be resolved through consultation. If the consultation fails, either Party may (choose one of the options below by
          ticking “√” in the corresponding “☐”):

         

        ☑ 14.2.1 Bring a lawsuit to the people’s court having jurisdiction at the domicile of Party A;

         

        ☐14.2.2 Bring a lawsuit to the people’s court having jurisdiction at the place where this Agreement is signed, i.e.,   /  ;

         

        ☐ 14.2.3 Apply for arbitration with (insert name of the specific arbitration institution), with the venue of arbitration being   / .

         

        14.3 Once this Agreement and the specific business documents become enforceable after the Parties have them notarized, Party A may directly apply for enforcement hereof and thereof with a
          people’s court having jurisdiction to recover the debts owed by Party B hereunder and thereunder.

         

        15. Effectiveness

         

        This Agreement shall take effect after the Parties affix official seals/contract seals on it, and shall be automatically terminated on the expiration date of the credit term or the date when all
          debts and other relevant costs owed by Party B to Party A under this Agreement are settled (whichever is later).

         

        
          
            

        

        16. Supplementary provisions

         

        This Agreement is made in three originals, with Party A, Party B, Shanghai Branch Release Center, and   /  each holding one original. All originals shall have the same
          legal effect.

         

        Appendixes:

         

        1. Special Provisions on Cross-border Trade Financing Business

         

        2. Special Provisions on Buyer/Import Factoring Business

         

        3. Special Provisions on Order Loan Business

         

        4. Special Provisions on Accepted Commercial Bills Discounting Business

         

        5. Special Provisions on Derivative Trading Business

         

        6. Special Provisions on Gold Leasing Business

         

        
          
            

        

        Appendix 1

         

        Special Provisions on Cross-border Trade Financing Business

         

        1. Cross-border Linkage Trade Financing Business refers to the cross-border trade financing business that Party B applies with Party A based on Party B’s true cross-border transactions with
          overseas companies, which is cooperatively provided by Party A and the overseas institution of China Merchants Bank (hereinafter referred to as the “Linkage Platform”).

         

        2. Cross-border linkage trade financing business covers the specific varieties of back-to-back L/C, entrusted issuance, entrusted overseas financing, certified bill payment, overseas credit
          granting with L/G, and cross-border trade financing shortcut. The specific meanings and business rules of various business varieties are stipulated in specific business agreements.

         

        3. Under the back-to-back L/C business, the overriding credit that Party B applies to Party A shall directly utilize the credit line hereunder. Under the overriding credit, the bills of exchange
          or advance payments (whether they occur within the credit period) that Party A handles to fulfill the issuing bank obligation and the pertinent interests and expenses shall constitute Party B’s financing debts owed to Party A, and shall be
          included in the scope of credit guarantee.

         

        Under the entrusted issuance/entrusted overseas financing business, the L/C or trade financing that Party A entrusts the linkage platform to issue or provide to the overseas company according to
          Party B’s application shall utilize the credit line hereunder. If Party A issues fund for inward bills purchased under collection or provides advance payment to Party B for external payments, such fund or advance payment (whether it occurs within
          the credit period) and the pertinent interests and expenses shall directly constitute Party B’s financing debts owed to Party A, and shall be included in the scope of credit guarantee.

         

        Under the certified bill payment business, Party A shall directly utilize the credit line hereunder and certify the payment of Party B’s acceptance bills based on Party B’s application. If Party
          B fails to pay the full amount of bills on time, Party A has the right to directly prepay on the certified bills. The prepayment (whether it occurs during the credit period) and the pertinent interests and expenses shall be included in the scope
          of credit guarantee.

         

        Under the overseas credit granting with L/G business, Party A shall directly utilize the credit line hereunder in accordance with the L/G or standby L/C that Party B applies for issuance. After
          the overseas company transfers the right of payment collection (rather than the right of claim) under the L/G to the Linkage Platform and the Linkage Platform claims payment from Party A according to the L/G or standby L/C, Party A’s prepayment
          (whether it occurs during the credit period) and the pertinent interests and expenses shall directly constitute Party B’s financing debts owed to Party A and shall be included in the scope of credit guarantee.

         

        Under the cross-border trade financing shortcut business, after Party A approves Party B’s application for trade financing, the trade financing that the linkage platform directly provides to
          Party B shall utilize the credit line hereunder. If Party B fails to repay the linkage platform’s trade financing in full, Party A is entitled to repay it by means of a bill of exchange or advance payment. The relevant bill of exchange or advance
          payment (whether it occurs during the credit period) and the pertinent interests and expenses shall directly constitute Party B’s financing debts owed to Party A and shall be included in the scope of credit guarantee.

         

        
          
            

        

        Appendix 2

         

         Special Provisions on Buyer/Import Factoring Business

         

         1. Definitions

         

        1.1 The buyer/import factoring business refers to that Party A, as the buyer/import factor, acquires the accounts receivable (of which Party B is the debtor) from the seller/export factor under
          the commercial contract, and provides the seller/export factor with comprehensive factoring services including certified payment, accounts receivable collection, and management.

         

        Under the buyer/import factoring business, if Party B faces any buyer’s credit risks, Party A shall assume the certified payment obligation to the seller/export factor. If a dispute arises during
          the performance of the commercial contract, Party A has the right to re-transfer the acquired accounts receivable to the seller/export factor.

         

        1.2 The seller/export factor refers to the party who signs the factoring business agreement with the supplier/service provider (the accounts receivable creditor) under the commercial contract,
          and acquires the accounts receivable held by the accounts receivable creditor. Party A can act as the buyer/import factor and the seller/export factor at the same time.

         

        1.3 Disputes refer to the defenses, counter-claims, offsets, or similar acts that Party B has against the accounts receivable acquired by Party A because of disputes between the accounts
          receivable creditor and Party B over the goods, services, invoices, or any other commercial contract issues, and third parties’ claims for the accounts receivable hereunder or applications for inquiry, suspension, or deduction. A dispute is
          deemed to have occurred when any accounts receivable that Party A acquires cannot be realized in full or in part for reasons other than the buyer’s credit risks.

         

        1.4 A commercial Contract refers to the business contract signed between Party B and the accounts receivable creditor for the purpose of commodity trading and/or service trading, which takes sale
          on credit as the settlement method.

         

        1.5 Certified Payment/Payment under Guarantee refers to that when Party B faces any buyer’s credit risks, Party A shall pay the corresponding accounts receivable amount to the seller/export
          factor within a certain period after the due date of the accounts receivable.

         

        2. At the request of Party B, Party A agrees to handle the buyer/import factoring business within the credit line for Party B, and Party B’s accounts receivable acquired from the seller/export
          factor shall be deducted from/shall utilize the credit line hereunder based on the specific amount.

         

        When Party A, as the buyer/import factor, fulfills its certified payment/payment guarantee obligations to make payments and pay the pertinent expenses, it shall be deemed as Party A’s granting
          credit to Party B under the Facilities Agreement (the financing interest rate shall be  /  within 30 days from the release date, and be  /  beyond the previous period), and the payments and pertinent expenses shall be included in the scope of
          Party B’s facility guarantee. Party A has the right to take measures stipulated under this Agreement to claim the certified payment/guaranteed payment from Party B. As long as the seller/export factor (whether it is Party A or not) has acquired
          the accounts receivable during the credit period, Party A has the right to claim payment from Party B in accordance with the Facilities Agreement and the commercial contract even if such claims are made beyond the credit period.

         

        
          
            

        

        3. Buyer/import factoring fees

         

        The factoring fees shall be the business management fees that Party A collects for providing the buyer/import factoring service. Party A shall collect the factoring fees from Party B at a certain
          ratio of the accounts receivable amount at the time of acquisition. The specific rate shall be reasonably determined by Party A according to its business rules.

         

        4. For disputes arising out of the performance of the commercial contract, Party B shall waive its right to raise an objection. In view of this, regardless of whether there are other agreements,
          provided that Party B fails to make payment in accordance with the provisions of the commercial contract, it shall be deemed that Party B has a buyer’s credit risk, Party A will proceed the certified payment, and Party B has no objection to this.

         

        
          
            

        

        Appendix 3

         

        Special Provisions on Order Loan Business

         

        1. The order loan business refers to the loan business that Party A, based on the commercial contracts (or engineering contracts) signed between Party B and its downstream customers (the payer),
          issues to Party B for the daily production and operation regarding the performance of its commercial contracts (or the performance of its engineering contracts) and uses the sales contract cash inflow (or project cash inflow) as the primary
          source of repayment.

         

        2. Party B shall open a special account for the cash inflow of its sales orders under the commercial contracts (or engineering contracts) with Party A. The cash inflow of all sales orders under
          the commercial contracts (or engineering contracts) must be directly paid to the special account. The special account shall not be used or changed without the approval of Party A. Party B shall notify the payer that the special account is the
          only account for the cash inflow of its sales orders. Party A has the right to deduct funds from the special account for repayment of the principal, interest, default interest, and other related expenses of the order loan financing.

         

        3. Upon the occurrence of any of the following circumstances, Party A may immediately stop Party B’s utilization of the credit line under the Facilities Agreement and take default management
          measures accordingly:

         

        3.1 Party B’s downstream customers have delayed in making payment for three consecutive periods, and Party A, based on its reasonable judgment, believes that their financial position has
          deteriorated, which is not conducive to protecting Party A’s rights as the creditor.

         

        3.2 Party B is disqualified from being the supplier by its downstream customers because of Party B’s delayed supply of goods, unstable product quality, construction without downstream customers’
          approval or failing to follow the engineering contract, lowered qualifications that fail to meet downstream customers’ requirements, or operation difficulties and deteriorated financial position based on Party A’s reasonable judgment, or because
          Party B’s cash inflow from downstream customers is less than the total monthly due amount of financing contracts under this credit line for three consecutive months, or the downstream customers fail to make payment in installments in accordance
          with the engineering contract for two consecutive periods.

         

        
          
            

        

        Appendix 4

         

        Special Provisions on Accepted Commercial Bills Discounting Business

         

        1. The discounting of commercial acceptance bills refers to the discounting business that Party A offers to commercial acceptance bills accepted, endorsed or
            guaranteed by Party B, or that Party A allows the holder to process at any branches of China Merchants Bank (hereinafter referred to as “Other Discounting Acceptance Banks”). The holder (hereinafter referred to as the “Discounting Applicant”)
            may apply to Party A or other discounting acceptance banks for discounting of commercial acceptance bills. The discounting business shall all utilize the credit line under this Agreement.

         

          Considering that Party A’s provision of the discounting service for commercial acceptance bill to Party B is the
            precondition for other discounting acceptance banks’ acceptance of bill holders’ discounting applications, other discounting acceptance banks are entitled to transfer the discounted bills to Party A
            after the discounting business is completed, and Party A is obliged to accept the transfer, for which Party B raises no objection.

         

        2. The commercial acceptance bills mentioned in this clause include both paper commercial acceptance bills and electronic commercial acceptance bills
            (hereinafter referred to as “Electronic Bills”). Interests may be paid by the buyer, the seller, another party, or as provided in an agreement.

         

        3. Party B shall open a commercial acceptance bill margin account with Party A (the account number shall be the one generated or recorded by Party A’s system when the margin is deposited) and
          before each bill is accepted, deposit a certain amount of funds to the margin account according to Party A’s requirements. The funds will be used as Party B’s payment bond for the acceptance of commercial
            acceptance bills that Party A or other discounting acceptance banks offer a discounting.

         

        If Party B is the acceptor of a commercial acceptance bill, Party B shall deposit the full amount of payables to its margin account opened with Party A before the due date of
          each commercial acceptance bill, for the bills to be paid on time.

         

        4. During the credit period, the discounting applicant may use commercial acceptance bills accepted, endorsed or guaranteed by Party B, to apply for discounting to Party A
          directly, or apply for discounting to other discounting acceptance banks. Party A or other discounting acceptance banks have the right to conduct qualification examinations on discounting applicants, request Party B to conduct audit
          verifications, and decide whether the corresponding discounting would be accepted.

         

        After the other discounting acceptance banks have completed the discounting, they are entitled to endorse and transfer the discounted commercial acceptance bills to Party A
          in accordance with the relevant provisions of China Merchants Bank. After Party A has processed the discounting or accepted commercial acceptance bills from other discounting acceptance banks, Party B shall pay Party A the payables in full
          unconditionally and in a timely manner when required.

         

        5. The issuance, acceptance, guarantee, endorsement, discounting, etc. of each Electronic Bill shall be subject to the business information stored in China bill exchange system or electronic
          commercial bill system, or the business records such as customer statements filled in or printed accordingly. The information stored in China bill exchange system or electronic commercial bill system, and the business records generated on the
          basis thereof, shall be an integral part of and have the same legal effect as this appendix. Party B acknowledges the accuracy, authenticity, and legitimacy of the foregoing.

         

        
          
            

        

        6. If a dispute arises out of the underlying contract for commercial acceptance bills accepted by Party A, Party B and the parties concerned shall coordinate and resolve it,
          and Party B shall not be released from the obligations to pay for the margin and the bills in full and in a timely manner in accordance with Article 3.

         

        7. If Party A has discounted a commercial bill accepted, endorsed, or guaranteed by Party B, or has accepted such a commercial bill from other discounting acceptance banks,
          Party A has the right to take collection measures directly against Party B, including deducting money from any of Party B’s deposit accounts at China Merchants Bank for payment if the payer or Party B fails to pay the full amount before the due
          date of the commercial acceptance bill. If Party B fails to pay the full amount or Party A offers an advance payment because of insufficient balance in Party B’s account, Party A shall collect a default interest at 0.05% of the advance
          payment per day in accordance with relevant provisions of the Payment and Settlement Measures.

         

        
          
            

        

        Appendix 5

         

        Special Provisions on Derivative Trading Business

         

        1. For derivatives transactions that Party A conducts upon acceptance of Party B’s application, they may utilize the credit line at a certain ratio of the principal/transaction amount. When a
          derivative transaction has floating losses, Party A may increase the utilized credit line of Party B according to the specific agreement between the parties (when each transaction actually occurs, Party A shall determine the amount of the
          utilized credit line based on the type, deadline, and risk degree of the transaction, and/or the risk degree coefficient of the business corresponding to the deducted credit line, etc.). The amount of the credit line actually utilized shall be
          subject to records in transaction documents such as the credit line utilization notice and/or transaction confirmation/certificate issued by Party A.

         

        2. Derivative transactions that have balances or losses during the credit period shall utilize the credit line in accordance with the provisions of the preceding article regardless of whether the
          date of the transaction falls within the credit period.

         

        
          
            

        

        Appendix 6

         

        Special Provisions on Gold Leasing Business

         

        1. “Gold leasing” refers to the business in which Party A leases physical gold to Party B, and upon expiration, Party B will return the same amount of gold of the same property and pay the lease
          fee in RMB to Party A on time.

         

        2. Party A may handle the gold leasing business for Party B within the credit period and the credit line based on Party B’s application. The physical gold leased by Party A shall utilize the
          credit line with the value prescribed in the gold lease agreement between both parties, and it shall constitute Party B’s debt owed to Party A.

         

         Special Notes:

         

        Both parties have fully negotiated all terms of this Agreement (including appendixes hereto). Party A hereby reminds Party B of paying special attention to the terms regarding
          the exemption or restriction of Party A’s liability, Party A’s unilateral rights, the increase of Party B’s liability, or restriction of Party B’s rights, and requests Party B to fully and accurately understand these terms. Party A has made
          corresponding explanations on the above terms at the request of Party B. The parties to the agreement have a consistent understanding of the provisions of this Agreement.

         

        (The remainder of this page is intentionally left blank)

         

        
          
            

        

        

        

         

        (Signature page for the Facilities Agreement (Applicable to working capital loans not subject to a separate loan contract) No. 121XY2020018744)

         

        

         

        Party A: China Merchants Bank Co., Ltd. Shanghai Branch [Stamp]

         

        Contact address: 1088 Lujiazui Ring Road, Pudong New District, Shanghai

         

        Unit email: /

         

        Unit fax: /

         

        Contact mobile number: [***]

         

        Unit WeChat: /

         

         

        

        Party B: ACM Research (Shanghai), Inc. [Stamp]

         

        Contact address: Building 4, 1690 Cailun Road, Zhangjiang Hi-Tech Park, Pudong New District, Shanghai

         

        Unit email: /

         

        Unit fax: /

         

        Contact mobile number: [***]

         

        Unit WeChat: / 

          

         

        Signing date:  August 3, 2020

         

        [Barcode and stamp]

         

        (Only for the verification of official stamp)logc-ex101_27.htm

Exhibit 10.1

FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT

THIS FIRST AMENDMENT to Loan and Security Agreement (this “Amendment”) is entered into as of April 23, 2020 (the “Amendment Date”), by and among OXFORD FINANCE LLC, a Delaware limited liability company with an office located at 133 North Fairfax Street, Alexandria, Virginia 22314 (“Oxford”), as collateral agent (in such capacity, “Collateral Agent”), the Lenders listed on Schedule 1.1 to the Loan Agreement (as defined below) or otherwise a party thereto from time to time including Oxford in its capacity as a Lender and HORIZON CREDIT II LLC, a Delaware limited liability company with an office located at 312 Farmington Avenue, Farmington, Connecticut 06032, as assignee of HORIZON TECHNOLOGY FINANCE CORPORATION, a Delaware corporation (“Horizon”) (each a “Lender” and collectively, the “Lenders”), and LOGICBIO THERAPEUTICS, INC., a Delaware corporation with offices located at 99 Erie Street, Cambridge, Massachusetts 02139 (“Parent”) and LOGICBIO AUSTRALIA PTY LIMITED (ACN 625 479 610), an Australian proprietary limited company with an address at 99 Erie Street, Cambridge, Massachusetts 02139 and a wholly owned Subsidiary of Parent (“Australian Sub”) (Parent and Australian Sub, individually and collectively, jointly and severally, “Borrower”).

WHEREAS, Collateral Agent, Borrower and Lenders have entered into that certain Loan and Security Agreement, dated as of July 2, 2019 (as amended, supplemented or otherwise modified from time to time, the “Loan Agreement”) pursuant to which Lenders have provided to Borrower certain loans in accordance with the terms and conditions thereof; and

WHEREAS, Borrower desires to incur Indebtedness pursuant to, and enter into, the SBA PPP Loan (as defined herein) and in connection therewith has requested Collateral Agent and Lenders to amend certain provisions of the Loan Agreement to allow Borrower to incur such Indebtedness, and Collateral Agent and Lenders have agreed to such request; and

WHEREAS, Borrower, Lenders and Collateral Agent desire to amend certain provisions of the Loan Agreement as provided herein and subject to the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the promises, covenants and agreements contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Borrower, Lenders and Collateral Agent hereby agree as follows:

	
 
	
1.
	
Capitalized terms used herein but not otherwise defined shall have the respective meanings given to them in the Loan Agreement.

 

	
 
	
2.
	
The following Section 6.2(d) is hereby added to the Loan Agreement:

 

(d)

 

(i) Borrower shall promptly (but no later than within two Business Days) notify Collateral Agent of execution, consummation, filing, delivery or receipt, of any agreement, instrument, application, document, amendment, modification, waiver, supplement, consent or notice with respect to the SBA PPP Loan (including, without limitation, forgiveness thereof), and with such notification provide to Collateral Agent a copy thereof.

 

(ii) Along with the monthly Compliance Certificate to be delivered pursuant to Section 6.2(b) of this Agreement, Borrower shall deliver to each Lender and Collateral Agent a written summary stating (A) the amount of the SBA PPP Loan outstanding as of the end of the immediately preceding month, (B) the amount of the SBA PPP Loan used in the immediately preceding month by Borrower and (C) the purposes for which the SBA PPP Loan was used in the immediately preceding month.

 

 

 

	
 
	
3.
	
The following Section 6.15 is hereby added to the Loan Agreement:

 

6.15SBA PPP Loan.  Borrower shall: 

 

(a)comply in all material respects with all terms and conditions of the SBA PPP Loan and all requirements of the SBA and Small Business Act related thereto and use the proceeds of the SBA PPP Loan solely for CARES Allowable Uses; 

 

(b)ensure that the SBA PPP Loan (i) has a maturity date not less than two (2) years after the date of incurrence of the SBA PPP Loan, (ii) bears interest at a rate not greater than one percent (1%) per annum, and (iii) otherwise has terms customary for loans made pursuant to the CARES Act;

 

(c)keep proper records in which full, true, timely and correct entries are made of all dealings and transactions related to the SBA PPP Loan and, upon Collateral Agent’s request, provide such records to Collateral Agent; 

 

(d)promptly inform the Collateral Agent of the receipt of the funds from the SBA PPP Loan;

 

(e)promptly following the SBA PPP Loan Date (but in any event no later than 45 days after the eight-week period immediately following the SBA PPP Loan Date (the “Forgiveness Application Period”)), apply for forgiveness of the maximum amount of SBA PPP Loan possible in accordance with Section 1106 of the CARES Act and provide notice of the status of any and all documentation related to such application for forgiveness to Collateral Agent and, upon Collateral Agent’s request, deliver a certificate of an authorized officer of the Borrower certifying as to the amount of the SBA PPP Loan that will be forgiven pursuant to the provisions of the CARES Act; 

 

(f)cause not less than $541,084 of the SBA PPP Loan to be forgiven by the SBA PPP Loan lender on or before October 1, 2020, (or such other amount and/or by such other time as consented to by the Required Lenders in writing); and

 

(g)not amend any provision in any document relating to the SBA PPP Loan in a manner adverse to the Lenders or make any prepayment under the SBA PPP Loan; provided that, during the Forgiveness Application Period, the Borrower shall be permitted, on a single occasion, to make a prepayment of the SBA PPP Loan for such amount as Borrower reasonably determines is not eligible for forgiveness in accordance with Section 1106 of the CARES Act.

 

	
 
	
4.
	
Section 8.2(a) of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

(a)Borrower or any of its Subsidiaries fails or neglects to perform any obligation in Sections 6.2 (Financial Statements, Reports, Certificates), 6.4 (Taxes), 6.5 (Insurance), 6.6 (Operating Accounts), 6.7 (Protection of Intellectual Property Rights), 6.9 (Notice of Litigation and Default), 6.10 (Financial Covenant), 6.11 (Landlord Waivers; Bailee Waivers), 6.12 (Creation/Acquisition of Subsidiaries), 6.13 (Further Assurances), 6.14 (Israeli Subsidiary Dissolution) or 6.15 (SBA PPP Loan) or Borrower violates any covenant in Section 7; or

 

	
 
	
5.
	
Section 8.6 of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

8.6Other Agreements.  There is a default in any agreement to which Borrower or any of its Subsidiaries is a party with a third party or parties resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of One Hundred Thousand Dollars ($100,000.00) or that could reasonably be expected to have a Material Adverse Change; or the SBA PPP Loan or any event or condition occurs that results in the SBA PPP Loan becoming due prior to its scheduled maturity or that enables or permits the holder or holders thereof to declare the SBA PPP Loan to be due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity or the SBA withdraws or terminates its guarantee of Borrower’s payment of the SBA PPP Loan or there is any other default in any agreement related to the SBA PPP Loan;

2

 

 

	
 
	
6.
	
Section 13.1 of the Loan Agreement is hereby amended by amending and restating the following definition therein as follows:

 

“Permitted Indebtedness” is:

 

(a)Borrower’s Indebtedness to the Lenders and Collateral Agent under this Agreement and the other Loan Documents;

 

(b)Indebtedness existing on the Effective Date and disclosed on the Perfection Certificate(s);

 

(c)Subordinated Debt;

 

(d)unsecured Indebtedness to trade creditors incurred in the ordinary course of business;

 

(e)Indebtedness consisting of capitalized lease obligations and purchase money Indebtedness, in each case incurred by Borrower or any of its Subsidiaries to finance the acquisition, repair, improvement or construction of fixed or capital assets of such person, provided that (i) the aggregate outstanding principal amount of all such Indebtedness does not exceed One Hundred Thousand Dollars ($100,000.00) at any time and (ii) the principal amount of such Indebtedness does not exceed the lower of the cost or fair market value of the property so acquired or built or of such repairs or improvements financed with such Indebtedness (each measured at the time of such acquisition, repair, improvement or construction is made);

 

(f)Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of Borrower’s business;

 

(g)extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through (e) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose materially more burdensome terms upon Borrower, or its Subsidiary, as the case may be; and

 

(h)Indebtedness under the SBA PPP Loan (subject to Section 6.15 of this Agreement).

 

	
 
	
7.
	
Section 13.1 of the Loan Agreement is hereby amended by adding the following definitions thereto in alphabetical order:

 

“CARES Act” means the Coronavirus Aid, Relief, and Economic Security Act, and applicable rules and regulations.

 

“CARES Allowable Uses” means use of proceeds of the SBA PPP Loan for: (i) payroll costs, (ii) costs related to the continuation of group health care benefits during periods of paid sick, medical or family leave, and insurance premiums, (iii) mortgage interest payments (but not mortgage prepayments or principal payments), (iv) rent payments, (v) utility payments, and/or (vi) interest payments on any other debt obligations that were incurred before Feb. 15, 2020, in each case as the use is described as an “allowable use” in Section 1102 of the CARES Act.

 

“SBA” means the U.S. Small Business Administration.

 

“SBA PPP Loan” means the unsecured loan incurred by the Parent from Silicon Valley Bank under 15 U.S.C. 636(a)(36) (as added to the Small Business Loan Act by Section 1102 of the CARES Act) in the aggregate amount of Seven Hundred Forty One Thousand and Eighty Four Dollars ($741,084), on the SBA PPP Loan Date.

 

“SBA PPP Loan Date” is the date on which the Borrower receives the funds from the SBA PPP Loan.

 

3

 

“Small Business Loan Act” means the Small Business Act (15 U.S. Code Chapter 14A – Aid to Small Business).

 

	
 
	
8.
	
Exhibit C (Compliance Certificate) to the Loan Agreement is hereby amended and restated in its entirety as set forth on Exhibit A hereto.

 

	
 
	
9.
	
Limitation of Amendment.

 

	
 
	
a.
	
The amendments set forth above are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right, remedy or obligation which Lenders or Borrower may now have or may have in the future under or in connection with any Loan Document, as amended hereby.

 

	
 
	
b.
	
This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, are hereby ratified and confirmed and shall remain in full force and effect.

 

	
 
	
10.
	
To induce Collateral Agent and Lenders to enter into this Amendment, Borrower hereby represents and warrants to Collateral Agent and Lenders as follows: 

 

	
 
	
a.
	
Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing; 

 

	
 
	
b.
	
Borrower has the power and due authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 

 

	
 
	
c.
	
The organizational documents of Borrower delivered to Collateral Agent on the Effective Date, and updated pursuant to subsequent deliveries by or on behalf of the Borrower to the Collateral Agent, remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;  

 

	
 
	
d.
	
The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not contravene (i) any material law or regulation binding on or affecting Borrower, (ii) any material contractual restriction with a Person binding on Borrower, (iii) any material order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (iv) the organizational documents of Borrower;

 

	
 
	
e.
	
The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; 

 

	
 
	
f.
	
The documents (including, without limitation, Borrower’s application for the SBA PPP Loan) evidencing the SBA PPP Loan delivered by Borrower to Collateral Agent prior to the date hereof are true, accurate and complete, were duly authorized by Borrower, and the loan evidenced thereby has been approved by the SBA and is a loan made under 15 U.S.C. 636(a)(36) (as added to the Small Business Act by Section 1102 of the CARES Act).  Borrower is fully compliant with the provisions of the SBA PPP Loan, Borrower has not made any misrepresentations (or omissions) in its application for the SBA PPP Loan or in any document submitted by Borrower in connection with its application for the SBA PPP Loan, and Borrower fulfills the eligibility requirements for the SBA PPP Loan;

4

 

 

	
 
	
g.
	
Borrower has not relied on Collateral Agent or any Lender or any statement of Collateral Agent or any Lender in its decision to apply for the SBA PPP Loan;

 

	
 
	
h.
	
The SBA PPP Loan and all documents and agreements entered into in connection therewith do not and will not violate any other agreement of Borrower; and 

 

	
 
	
i.
	
This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights. 

 

	
 
	
11.
	
Except as expressly set forth herein, the Loan Agreement shall continue in full force and effect without alteration or amendment.

 

	
 
	
12.
	
The Borrower hereby remises, releases, acquits, satisfies and forever discharges the Lenders and Collateral Agent, their agents, employees, officers, directors, predecessors, attorneys and all others acting or purporting to act on behalf of or at the direction of the Lenders and Collateral Agent (“Releasees”), of and from any and all manner of actions, causes of action, suit, debts, accounts, covenants, contracts, controversies, agreements, variances, damages, judgments, claims and demands whatsoever, in law or in equity, which any of such parties ever had, now has or, to the extent arising from or in connection with any act, omission or state of facts taken or existing on or prior to the date hereof, may have after the date hereof against the Releasees, for, upon or by reason of any matter, cause or thing whatsoever relating to or arising out of the Loan Agreement or the other Loan Documents on or prior to the date hereof and through the date hereof.  Without limiting the generality of the foregoing, the Borrower waives and affirmatively agrees not to allege or otherwise pursue any defenses, affirmative defenses, counterclaims, claims, causes of action, setoffs or other rights they do, shall or may have as of the date hereof, including the rights to contest: (a) the right of Collateral Agent and each Lender to exercise its rights and remedies described in the Loan Documents; (b) any provision of this Amendment or the Loan Documents; or (c) any conduct of the Lenders or other Releasees relating to or arising out of the Loan Agreement or the other Loan Documents on or prior to the date hereof.

 

	
 
	
13.
	
This Amendment shall be deemed effective as of the Amendment Date upon (a) the due execution and delivery to Collateral Agent of this Amendment by each party hereto, and (b) Borrower’s payment of all Lenders’ Expenses incurred through the date hereof, which may be debited (or ACH’d) from the Designated Deposit Account in accordance with Section 2.3(d) of the Loan Agreement. 

 

	
 
	
14.
	
This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, and all of which, taken together, shall constitute one and the same instrument.

 

	
 
	
15.
	
This Amendment and the rights and obligations of the parties hereto shall be governed by and construed in accordance with the laws of the State of New York.

 

 

[Balance of Page Intentionally Left Blank]

 

5

 

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to the Loan Agreement to be executed as of the date first set forth above.

	
BORROWER:
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
LOGICBIO THERAPEUTICS, INC.
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By
	
/s/ Matthias Jaffe
	
 
	
 
	
 

	
Name:
	
Matthias Jaffe
	
 
	
 
	
 

	
Title:
	
CFO
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
LOGICBIO AUSTRALIA PTY LIMITED
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By
	
/s/ Matthias Jaffe
	
 
	
By
	
/s/ Frederic Chereau

	
Name:
	
Matthias Jaffe
	
 
	
Name:
	
Frederic Chereau

	
Title:
	
Director / Company Secretary
	
 
	
Title:
	
Director 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
COLLATERAL AGENT AND LENDER:
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
OXFORD FINANCE LLC
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By
	
/s/ Colette H. Featherly
	
 
	
 
	
 

	
Name:
	
Colette H. Featherly
	
 
	
 
	
 

	
Title:
	
Senior Vice President
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
LENDER:
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
HORIZON CREDIT II LLC
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By
	
/s/ Robert D. Pomeroy, Jr.
	
 
	
 
	
 

	
Name:
	
Robert D. Pomeroy, Jr.
	
 
	
 
	
 

	
Title:
	
CEO
	
 
	
 
	
 

 

 

 

 

EXHIBIT A

EXHIBIT C

Compliance Certificate

		
	
TO:
	
OXFORD FINANCE LLC, as Collateral Agent and Lender
HORIZON TECHNOLOGY FINANCE CORPORATION, as Lender

	
FROM:
	
LOGICBIO THERAPEUTICS, INC.

The undersigned authorized officer (“Officer”) of LOGICBIO THERAPEUTICS, INC. (“Parent”), hereby certifies on behalf of itself and the other Borrower that in accordance with the terms and conditions of the Loan and Security Agreement by and among Parent, LOGICBIO AUSTRALIA PTY LIMITED, Collateral Agent, and the Lenders from time to time party thereto (the “Loan Agreement;” capitalized terms used but not otherwise defined herein shall have the meanings given them in the Loan Agreement),

(a)Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below;

(b)There are no Events of Default, except as noted below;

(c)Except as noted below, all representations and warranties of Borrower stated in the Loan Documents are true and correct in all material respects on this date and for the period described in (a), above; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date.

(d)Borrower, and each of Borrower’s Subsidiaries, has timely filed all required tax returns and reports, Borrower, and each of Borrower’s Subsidiaries, has timely paid all foreign, federal, state, and local taxes, assessments, deposits and contributions owed by Borrower, or Subsidiary, except as otherwise permitted pursuant to the terms of Section 5.8 of the Loan Agreement;

(e)No Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Collateral Agent and the Lenders.

Attached are the required documents, if any, supporting our certification(s).  The Officer, on behalf of Borrower, further certifies that the attached financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied from one period to the next except as explained in an accompanying letter or footnotes and except, in the case of unaudited financial statements, for the absence of footnotes and subject to year‐end audit adjustments as to the interim financial statements.  

 

 

Please indicate compliance status since the last Compliance Certificate by circling Yes, No, or N/A under “Complies” column.

 

	
 
	
Reporting Covenant
	
Requirement
	
Actual
	
Complies

	
1)
	
Financial statements
	
Monthly within 30 days
	
 
	
Yes
	
No
	
N/A

	
2)
	
Annual (CPA Audited) statements
	
Within 120 days after FYE
	
 
	
Yes
	
No
	
N/A

	
3)
	
Annual Financial Projections/Budget (prepared on a monthly basis)
	
Annually (within 30 days of FYE), and when revised
	
 
	
Yes
	
No
	
N/A

	
4)
	
A/R & A/P agings
	
If applicable
	
 
	
Yes
	
No
	
N/A

	
5)
	
8‐K, 10‐K and 10‐Q Filings
	
If applicable, within 5 days of filing
	
 
	
Yes
	
No
	
N/A

	
6)
	
Compliance Certificate
	
Monthly within 30 days
	
 
	
Yes
	
No
	
N/A

	
7)
	
IP Report
	
When required
	
 
	
Yes
	
No
	
N/A

	
8)
	
Total amount of Borrower’s cash and cash equivalents at the last day of the measurement period
	
 
	
$________
	
Yes
	
No
	
N/A

	
9)
	
Total amount of Borrower’s Subsidiaries’ cash and cash equivalents at the last day of the measurement period
	
 
	
$________
	
Yes
	
No
	
N/A

	
10)
	
Total amount of SBA PPP Loan proceeds received by Borrower
	
 
	
$________
	
 
	
 
	
 

	
11)
	
Total amount of SBA PPP Loan proceeds used by Borrower in the last month
	
 
	
$________
	
 
	
 
	
 

	
12)
	
Total amount of SBA PPP Loan proceeds remaining
	
 
	
$________
	
 
	
 
	
 

 

Deposit and Securities Accounts

(Please list all accounts; attach separate sheet if additional space needed)

 

	
 
	
Institution Name
	
Account Number
	
New Account?
	
Account Control Agreement in place?
	
Excluded Account
	
 

	
1)
	
 
	
 
	
Yes
	
No
	
Yes
	
No
	
Yes
	
No

	
2)
	
 
	
 
	
Yes
	
No
	
Yes
	
No
	
Yes
	
No

	
3)
	
 
	
 
	
Yes
	
No
	
Yes
	
No
	
Yes
	
No

	
4)
	
 
	
 
	
Yes
	
No
	
Yes
	
No
	
Yes
	
No

 

 

 

Financial Covenants (please attached a separate sheet showing detailed calculations)

 

	
 
	
Covenant
	
Requirement
	
Actual
	
Compliance

	
1)
	
Account Balance (subject to ACAs)
	
Note less than the lesser of (i) One Hundred Five percent (105.00%) of the aggregate principal amount of outstanding Term Loans and (ii) the amount of Borrower’s and all of its Subsidiaries’ aggregate consolidated cash and Cash Equivalent assets (i.e., $[____])
	
 [$________]
	
Yes
	
No

 

Other Matters

 

	
1)
	
Have there been any changes in management since the last Compliance Certificate?
	
Yes
	
No

	
 
	
 
	
 
	
 

	
2)
	
Have there been any transfers/sales/disposals/retirement of Collateral or IP prohibited by the Loan Agreement?
	
Yes
	
No

	
 
	
 
	
 
	
 

	
3)
	
Have there been any new or pending claims or causes of action against Borrower that involve more than One Hundred Thousand Dollars ($100,000.00)?
	
Yes
	
No

	
 
	
 
	
 
	
 

	
4)
	
Have there been any amendments of or other changes to the capitalization table of Borrower and to the Operating Documents of Borrower or any of its Subsidiaries?  If yes, provide copies of any such amendments or changes with this Compliance Certificate.
	
Yes
	
No

	
5)
	
Since the last Compliance Certificate, do you anticipate any impending product shortages or supply chain disruptions?  If yes, please explain.
	
Yes
	
No

	
6)
	
 

Are there major components from suppliers that are single sourced?  If yes, please explain.

 
	
Yes
	
No

	
7)
	
Does the Borrower’s Business Continuity Plan address potential business interruptions and provide a plan to resume business operations?

 
	
Yes
	
No

	
8)
	
Have there been any changes to insurance policies providing coverage for business interruption since the last Compliance Certificate? If yes, please explain.
	
Yes
	
No

 

 

 

 

 

Exceptions

 

Please explain any exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions.”  Attach separate sheet if additional space needed.)

 

 

	
LOGIBIO THERAPEUTICS, INC., on behalf of itself and the other Borrower

	
 
	
 
	
 

	
By  
	
 
	
 

	
Name:
	
 
	
 

	
Title:
	
 
	
 

	
 
	
 
	
 

	
Date:
	
 
	
 

 

				
	
LENDER USE ONLY

	
 
	
 
	
 
	
 

	
Received by: 
	
 
	
Date:
	
 

	
 
	
 
	
 
	
 

	
Verified by:  
	
 
	
Date:
	
 

	
 
	
 
	
 
	
 

	
Compliance Status:
	
Yes 
	
No

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