Document:

Exhibit 10.23

 

Ref: 75012008283015(2011)

 

SPD BANK

 

Factoring Agreement

 

SHANGHAI PUDONG DEVELOPMENT BANK

 

    	 

    	 

    

 

Factoring Agreement is made by and between
Dalian Tongfa New Material Development Co., Ltd. (as "Client") and Shanghai Pudong Development Bank Dalian Branch (as
"Factoring Bank").

 

Whereas:

 

a. Client and Buyer (defined as follow)
have signed or will sign the Purchasing Contract and/or Service Contract (collectively as "Transaction Contract" ), according
to which (a) Client provides goods or services to Buyer and thus has incurred or will incur the receivables due from Buyer under
such Transaction Contract, (b) Client agrees to transfer the receivables thereunder to Factoring Bank as defined, and (c) Factoring
Bank agrees to receives the receivables as per the Factoring Agreement.

 

b. Client and Buyer confirm the Factoring
Agreement is the financing document subordinated to Credit Line Agreement, and referred as BC2011080200000526. Each and every term
specified herein are incorporated into and as part of the Credit Line Agreement , provided that the Factoring Agreement enters
into full force.

 

Two parties hereto agree on the receivable
transaction as follow:

 

Article I Definition

 

1. Unless otherwise specified, the terms
are defined and interpreted as below:

 

(1) Buyer means the buyer listed under
the Application of Rights to Receivable Transaction furnished by Client.

 

(2) Transaction Agreement means the Purchasing
Contract and/or Service Contract signed by and between Buyer and Client.

 

(3) Receivable(s) (or right to receivables)
means Client's claim on Buyer defined in Article II paragraph 2, in order to transfer the subject.

 

(4) Invoice means the invoices that Factoring
Bank redeems to accept as the confirmation to creditor's rights, including value-added invoice, business invoice and business tax
invoice.

 

(5) Date of Invoice means the issuing date
specified on the invoice.

 

(6) Due Date of Receivable means the maturity
date of receivables subject to the Transaction Agreement or invoices.

 

(7) Grace Period means the period beginning
from the due date of receivables, excepted to accelerated payment. The end of grace period is defined as the maturity date of credit.

 

(8) Date of Guaranteed Payment means the
date when Factoring Bank executes payment liabilities in the buy-all factoring activity.

 

    	 

    	 

    

 

(9) Buyer's Credit Risk means the risks
that Buyer goes into bankruptcy or refused to pay without reasonable reasons, excluding the risks of force majeure or business
disputes.

 

(10) Bankruptcy has the meaning in accordance
with China's laws and regulations when dealing with factoring activities within the territory of People's Republic of China (excluding
Hong Kong, Macaw, and Taiwan); and the meaning in accordance with agreed practices by Import Factors (if any) in which country
the Factoring Bank and Buyer are both located.

 

(11) Force Majeure means the unpredictable,
inevitable and unstoppable situations, including but not limited to natural disasters, earthquakes, tornado, flood, fire, wars,
riot, epidemic diseases, government manipulation, strike, stopoff, blackout, communication failure, internet system malfunction/breaking
down, system and equipment malfunction. The party with the knowledge of force majeure should inform the other party in a early
manner. Two parties shall work together to solve the problems, however the suffering party is not obligated under such occasion.

 

(12) Business Dispute means Buyer's any
disputes on its payment liabilities,including but not limited to disputes that Buyer has paid to Client yet Client has defect in
executing the agreement.

 

(13) Factoring means Factoring Bank assumes
Buyer's credit risks as agreed with Client.

 

(14) Factoring Line means the maximum capital
size Factoring Bank agree to accept related to Buyer's credit risks.

 

(15) Credit Line means the capital size
Factoring Bank agree to invest to Client subject to the size of receivables.

 

(16) Credit Ratio means the maximum ratio
of factored capitals to invoiced capitals in the factoring activity.

 

(17) Date: unless otherwise specified,
the "Date" hereunder merely means the actual dates, NOT banks' operating dates. Banks' operating dates means SPD Bank's
business date towards entities, excluding any Sundays, Saturday (except any operating day on Sunday or Saturday due to adjustment
to legal holidays) or legal holidays.

 

Article II Transaction of Receivables

 

1. Prior to the transaction of receivables
from Client to Factoring Bank, Client and Factoring Bank shall signed the Factoring Line Notices and Transaction Terms Notice,
clarifying the terms and provisions related to the Transaction of Buyer's receivables. Unless two parties otherwise agreed, Client
shall transfer to Factoring Bank all the receivables due from Buyer confirmed by the Factoring Line Notice and Transaction Terms
Notice. Under any circumstances, Factoring Bank shall have the right to (a) require Client signing any Transaction Notice related
to Buyer's receivables, and at the same time (b) retain the right of requiring Client or Factoring Bank per se to inform the Buyer
related to transaction of receivables. When requiring Client to give Buyer the said notice, Factoring Bank shall have the right
to request Client to furnish Buyer's confirmation letter about such transaction.

 

    	 

    	 

    

 

2. About transaction of receivables, Client
shall file the Transaction Application of Creditor's Receivables to the Factoring Bank. At the same time, Client shall furnish
relevant invoice (copy or original), cargo shipment confirmation and other documents deemed necessary by Factoring banks. The Transaction
Application of Creditor's Receivables provided by Client shall be deemed a transaction offer. And if Factoring Bank fails to refuse
within five days thereafter, Factoring Bank is deemed to have received the offer.

 

3. Factoring Bank simultaneously accepted
the following rights to relevant receivables when transferring the said receivables. Factoring Bank shall be entitled to:

 

(a) the creditor's right to request Buyer's
payment with any lawful measures;

 

(b) rights to compromise, extend the grace
period and reconcile with Buyer;

 

(c) transferring the receivables to any
other third party;

 

(d) endorsing the trading notes backed
by receivables;

 

(e) executing any rights to any insurance,
guarantee or effective contract related receivables. And

 

(f) according to laws or agreement, any
other rights and relief under the said receivables enjoyed by Client.

 

4. The "transaction "specified
herein is to transfer all the rights and interest under the Transaction Agreement. Any liabilities that are obligated to Client
under the Transaction Agreement shall not be transferred along with creditor's rights to receivables, which means Client shall
take any liabilities termed in Transaction Agreement.

 

Article III Representation, Guarantee and
Promises

 

1. Client represents that: (a) efficient
and complete authority/approval has been achieved regarding the Factoring Agreement herein and relevant documents, and (b) all
the documents and other files provided to the Factoring Bank are true, correct, complete and effective.

 

2. About the buy-all factoring activities,
Client represents that the transaction of receivables is:

 

(a) law-abiding, effective, and may be
coerced for Buyer to execute as per laws or agreed;

 

(b) off any limitations;

 

(c) Buyer or any other third party shall
not claim any rights to the receivables, including but not limited to creditor's rights, guarantee right or right of offset;

 

(d) free from any liabilities unless known
by Factoring Bank;

 

    	 

    	 

    

 

(e) not categorized as delayed account
or reorganized account;

 

(f) free from any priority related to receivable
transaction.

 

3. Client guarantees to receive unconditional
full disbursement at the due date of receivables.

 

4. Client promises the following.

 

(a) Opening Account. Factoring Bank will
open a special account for Client in order to receive Buyer's payments required under receivables. Client shall be sure to inform
Buyer the said account number.

 

(b) Files Required. Client promises to
furnish financial sheets (e.g. annual, periodical or monthly) with Factoring Bank from time to time at Factoring Bank's request.

 

(c) Authorization. Client shall process,
achieve, abide by and keep effective all the verifications, approvals, registrations or licenses required by laws and regulations,
so that Client is able to execute the liabilities hereunder as a lawful entity.

 

(d) Change in Transaction Contract. After
transferring the said receivables to Factoring Bank but before Factoring Bank assigning the said receivables to Client, without
obtaining Factoring Bank's prior written consent, Client shall not (i)reach any agreements that intend to change the Transaction
Agreement or any payment terms, or (ii) receive any discounts, kickbacks or similar arrangement.

 

(e) Re-factoring, Re-transaction or Other
Rights. Client shall neither sign any re-factoring or transaction agreement with any other third party, nor setting up any other
rights related to the said receivables.

 

5. Special Term for Group Client

 

If Client is group client, Client shall
promise that :

 

(a) Client shall timely report to the actual
fiduciary about related-party transactions accounting for 10% or above of its net assets, including (i) relationships among transaction
parties, (ii) transaction subject and nature, (iii) transaction price or relevant percentage, (iv) pricing policy (including transactions
without prices or with very low price).

 

(b) If the actual fiduciary (i) provides
fake documents or conceals material operating/financial facts, (ii) alters the use of credit without Factoring Bank's consent,
or use the credit to engage in illegal or rule-violated activities, (iii) uses fake contracts with related party that create non-existed
receivables, in order to swindle capitals/credit from banks by discounting or pledges, (iv) refuses to accept investigations by
financing banks over its credit use or related financial/operating activities, (v) incurs material occasions like merger, acquisition
or reorganization which Factoring Bank believes may affect the safety of extended credit, and (vi) intentionally exits from bank's
loan claims through related transactions.

 

    	 

    	 

    

 

Article IV Risk Assumption

 

1. Repurchasing Factoring Services. Factoring
Bank shall not assume any credit risks from Buyer and Client shall unconditionally bear the payment liability when due. For buy-all
factoring services, Factoring Bank shall take Buyer's credit risk as per the Factoring Agreement.

 

2. Buy-all Factoring Services. Unless otherwise
specified herein, Factoring shall reimburse Client at the price of transacting receivables within five days upon the bankruptcy
of Buyer. At the same time, Factoring Banks has the right to deduct any risk-free factoring amount, commission fee (if not paid
yet), loans extended yet unpaid and accompanying interest ( as per Article VI herein), and any other deductions or setoffs all
other factoring banks have the right to charge.

 

3. For buy-all factoring services subject
to risk-restrictions stated in the Factoring Agreement herein, Factoring Bank shall reimburse to Client at the price of transacting
receivables on the guaranteed date of payment, and shall have the right to deduct from the reimbursement any risk-free factoring
amount, commission fee (if not paid yet), loans extended yet unpaid and accompanying interest, and any other deductions or setoffs
all other factoring banks have the right to charge, provided that Buyer fails to pay part or whole of receivables Factoring Bank
bear risks with at or before the guaranteed date of payment. Date of incurring Buyer's credit risk (as "guaranteed date of
payment") is calculated as earlier of:

 

(i) 180 days after maturity date of receivables;
or

 

(ii) the date when Client provides evidence
of incurring Buyer's credit risk.

 

4. Before the maturity date of receivables,
Factoring Bank shall terminate its obligation of assuming receivable-related risks if:

 

(a) Client fails to abide by each and all
representations, guarantees or promises made hereunder;

 

(b) Client fails to execute its obligations
specified herein;

 

(c) Buyer directly makes receivable-related
payment to Client and Client fails to notice Factoring Bank or timely return the said payment to Factoring bank, before date of
maturity;

 

(d) Buyer offers discounts as per the Transaction
Agreement. For instances, within grace period Buyer offers discount to price and accepted by Client. Client's such behavior shall
obtain prior written approval by Factoring Bank, and Client shall intend to pay the discounted amount to Factoring Bank in the
first hand as early payment to interest and loan;

 

(e) Laws governing the Factoring Agreement
herein is changed, thus making the transaction contemplated hereunder become illegal; or any policies or regulations issued by
China's regulator or People's Bank of China lead to Factoring Bank's incapability of executing any rights or liabilities hereunder.

 

    	 

    	 

    

 

When the above-mentioned situation incurred,
Client shall immediately repay the loan and interest for any loan already provided.

 

5. For buy-all factoring services, when
Factoring Bank cancels the Factoring Line equivalent to the amount of receivables, Buyer's all the payments shall be deducted by
risk-related amount assumed by Factoring Bank at the first hand, and by repaying loans provided by Factoring Bank.

 

6. For any receivables that Client has
transferred to Factoring Bank yet Factoring Bank doesn't bear any risks related, Factoring Bank shall debit Client's account at
the transaction price within three days upon receipt of Buyer's payment.

 

7. If Buyer incurs any business dispute
on a specific flow of receivable, Factoring Bank shall freeze the relevant amount of factoring line until such dispute is solved,
and the factoring line will be adjusted according to such dispute solution. Also, in case of force majeure, Factoring Bank shall
freeze the relevant factoring line until the event is over.

 

8. Factoring Bank may transfer the said
receivables to any third party, in consideration of proper terms and conditions. Thirty parties include but not limited to Buyer's
factor or import factor. The said receivables undertaken or received by such third party shall not impact Factoring Bank's liabilities
towards Client hereunder. At the same time, any payments from Buyer to the above-mentioned third party shall not be deemed to be
received by Factoring Bank unless the payments has been deposited to Factoring Bank's account. Under such circumstance:

 

(a) Client shall abide by and execute any
additional requirements, obligations or process that required by the third party and Factoring Bank from time to time. E.g. Client
shall sign the notice or introductory letter that informs Buyer the change of fiduciary, and specify any transaction terms and
provisions on the face of invoices at Factoring Bank's requirement;

 

(b) For any deduction or setoff entitled
by the third party and regardless made towards Client, Buyer or Factoring Bank, Factoring Bank shall have the right to decide to
make equivalent deduction or setoff from part or whole of receivables agreed between Factoring Bank and Client.

 

Article V Factoring Line, Credit Line and
Currency Exchange

 

1. Factoring Line has two types - revolving
and non-revolving. For any receivables transacted by Factoring Banks and have little impact on the risks restrictions herein, Factoring
Bank shall factor the receivables within the restriction of factoring line (both in terms of percentage or amount). If Buyer pays
the receivables, the equivalent amount of un-factored receivables will be revolved and redeemed as factored. But Factoring Bank
may cancel or adjust the factoring line from time to time. For any receivables transacted after the date Factoring Bank informs
Client about such adjustment, Factoring Bank shall assumes Buyer's risk subject to the adjusted factoring line. However, for any
receivables contemplated before such adjustment, Factoring Bank shall continue to take Buyer risks subject to the original factoring
line.

 

    	 

    	 

    

 

2. Credit Line has two types - revolving
and non-revolving. For revolving loans, Client may use the credit line for one or several times. Loans already provided by Factoring
Bank shall be deemed as credit, after paying off which, the credit line will be recovered and reinstated as available .

 

3. Under any circumstances, Factoring Bank
shall have the right to base on the exchange rate provided by Factoring Bank per se, provided that currencies denoted on credit
line, factoring line, invoice or buyer's payment are different. If the loan made hereunder has exceeded the credit line or factoring
line due to currency translation, Factoring Bank shall have the right to require Client paying excessive amount immediately. In
case that currencies of Client's payment (including authorized payment) and credit line are different, Factoring Bank shall be
entitled to reimburse at the exchange rate determined by the Factoring Bank per se. So Client shall assume the currency risk.

 

Article VI Loan

 

1. Before the maturity date of relevant
receivables, Client may apply for loans in accordance with agreed factoring line, Notice of Transaction Conditions and Application
of Factoring Loans.

 

2. If loan percentage is restricted, loans
on a single invoice shall not exceed such percentage.

 

Article VII Buyer's Payment

 

1. Factoring Bank shall have independent
and exclusive right to execute Buyer's receivables transferred by Client. Unless Factoring Bank requires, Client shall not intervene
or attempt to collect the said receivables.

 

2. For any payment from Buyer to Client
regarding any transferred receivables, no matter in form of cash, check or other tradable notes, Client shall inform the bank immediately
and return such payment to Factoring Bank. Client shall not endorse or treat such payment with other manners, but endorsing it
to Factoring Bank or the person assigned by Factoring Bank is allowed. Before Client returned such payment to Factoring Bank, the
Client shall be only treated as fiduciary to hold such payment, and shall endorse the related notes as required by the Factoring
Bank.

 

3. Client and Factoring Bank particularly
agree here, Buyer shall pay subject to the following rule: Factoring Bank may use Buyer's payment regarding the receivables transferred.
if Buyer has no specific remarks, Factoring Bank shall be entitled to decide on its own if payment is used for covering receivables
(i) of early maturity or (ii) with risks. For all the payments from Buyer, Factoring Bank shall have the right to reimburse Client's
unpaid loans and interest before debiting Client account at the price of transaction.

 

    	 

    	 

    

 

Article VIII Debt Document

 

Factoring Bank shall abide by its practical
standards to set up a accounting ledger related to all the activities herein. According to the ledger, debt documents shall be
filed to confirm loans and interest and to record Buyer's payments. Unless there are obvious errors or opposite evidences, Client
shall agree that such records are the effective proof to Client's debt status.

 

Article IX Liabilities and Default

 

1. Client's payment liability. If any event
applies to Article IV Paragraph 4 herein, Client shall reimburse the proper amount in a quick manner. In case that Client fails
to pay loan and interest timely, the remaining factoring loan shall be matured in advance, and Client shall be punished for delayed
payment subject to the Factoring Line and Transaction Conditions Notice.

 

2. Revolving Creditor's Rights. When Client
performs all the payment liabilities (including early payment) as per the Agreement herein, Factoring Bank may revolve the rights
enjoyed by Buyer regarding receivables to Client, at Client's request. Such rights include notices to Buyer. And Factoring Bank
shall debit Client's account for any payments received from Buyer.

 

3. Client authorizes the Factoring Bank,
on behalf of Client, to reimburse any loan due to Factoring Bank from any of Client's accounts (whatsoever the currency types)
open in Factoring Bank, regardless of whether such loan contemplated under the Agreement. The authorization therein is irrevocable.
If any currency translation involved, the exchange rate provided by Factoring Bank shall be applied and currency risk shall be
borne by Client.

 

Article X Governing Laws and Jurisdiction

 

The Factoring Agreement herein is governed
and interpreted by laws of Peoples' Republic of China (excluding regions of Hong Kong, Macaw and Taiwan). Any disputes arising
herefrom shall be solved under the exclusive jurisdiction of the court where Factoring Bank is located.

 

Article XI Effectiveness and Others

 

1. The Agreement shall be attached with
seals by parties hereto, and signed by their legal representatives/agents. The Agreement comes into force at the date of signing,
and continues to maintain effective unless otherwise agreed. For the purpose of terminating the Agreement, either party may inform
the other in written form in advance of at least sixty days. In case of termination, the Agreement shall be binding on both parties
regarding each party's liabilities. And such termination shall not impact any rights or liabilities of each party prior to the
date of termination.

 

    	 

    	 

    

 

2. If any provision or provisions of the
Agreement shall be held to be invalid, the enforceability and validity of the remaining Agreement shall not be affected.

 

3. Factoring Bank's extending grace period
or delaying taking any measures against Client's default shall not (i) injure, impact or restrict Factoring Bank's any and all
rights and interests as a creditor, (ii) be construed as Factoring Bank's approval for Client's default, nor (iii) be deemed as
Factoring Bank relinquishes any rights to take any measures against Client's current or possible default in future.

 

4. All the Factoring Line Notice, Transaction
Condition Notice, applications and other documents confirmed in the format of Factoring Bank or signed by both Factoring Bank and
Client shall be deemed as unseparable part of the Agreement, and enter into full force as of the date of signing.

 

5. The Agreement is made in triplets, in
Chinese, two held by Factoring Bank and one by Client, each having equal legal force.

 

Article XII Miscellaneous

None

 

The blank is left intentionally.

 

    	 

    	 

    

 

The Factoring Agreement herein is signed
by parties hereunder on September 5th 2011. Client agrees that parties hereto have fully discussed each and every terms
herein and correctly understood meanings of their rights, liabilities and exemptions, when signing the Agreement.

 

	Client: (Seal)	Shanghai Pudong Development Bank (Seal)
	/s/ Chuan Tao Zheng	 /s/ Xin Hao Wang
	Legal Representative:	Legal Representative:Exhibit 10.24

LOAN CONTRACT

 

 

 

 

 

 

Shenzhen development bank

 

April 2010

 

    	 

    	 

    

 

LOAN CONTRACT

 

Contract No. Shenfa Yinlian
Daizhi 20110429217

 

Within agreed amount

Agreed amount loan contract
name: comprehensive agreed credit loan contract

Agreed amount loan contract
Shenfa Yinlian Daizi No.: 20110216001

 

Lender: Dalian  branch
of Shenzhen development bank

Address: 5 Youhao
Square, Zhongshan District, Dalian

Tel. No.: 0411-82580729   Fax:

Person in charge: Yuan Baigang   Position:  Branch
Manager

 

Borrower: Dalian TOFA New
Material Development Co.,LTD.

Address: Lingan industry
Park south, economic and tech development district, Dalian

Tel. No.: 82789758   Fax:

Legal representative: Zheng
Chuantao  Position:

 

According to relevant law
and after reaching agreement, borrower and lender sign this loan contract and both parties should abide all items in this contract.

 

Item one: Loan contract
content

 

	1.  	Loan amount: RMB seven and a half million yuan

	2.  	Loan term: 1-year

Calculation method
of loan term: the loan term of this contract should start when borrower actually obtain the principal. And loan granting date and
due date is basis on the receipt date.

	3.  	Loan interest:

	3.1	Loan interest is set, according to the rules as follows; and initial loan interest is the same with loan receipt record: When borrower obtains the loan and the interest rate should be one-year benchmark interest rate for loan on that date +10%.

	3.2  	Adjustments for this floating interest rate: this floating rate should be adjusted in every month, according to loan issuing date and if there is no loan issuing date, it should be adjusted at the end every month.

	3.3  	Day interest rate calculation: day interest rate=interest rate of the year/360.

	4.  	Loan usage: this loan is used for working capital.

 

Item two: Loan granting
and loan repayment

 

	1  	Borrower can request for loan upon the execution,
    registration and notarization of this Agreement.

2. Payments:

2.1 Full amount entrusted payment: Lender shall wire to the
designed party according to Borrower’s loan withdrawal application.

 

2.2 Payment Management:

2.2.1 Borrower has right to request Lender to wire the loan
proceeds if:

2.2.1.1 Borrower has submitted required business transaction
agreement loan withdrawal application with wiring party, wiring amount and other related information according to Lender’s
demand;

2.2.1.2 The loan withdrawal will be used in accordance with
the loan agreement; and

2.2.1.3 Borrower authorized Lender to make the payment to designed
wiring party.

 

Lender has the right to review if the information of wiring
party, payment amount, etc. is consistent with the business transaction agreement and the Lender shall have right to refuse any
loan withdrawal application that is not in compliance of this Agreement.

 

2.2.2 Not applicable.

 

2.2.3 Borrower cannot use the loan proceeds in investments of
fixed assets and equities, or any business and operation areas not permitted by the State.

 

2.3 Payment changes and conditions

Lender has right to adjust the total entrusted payment amount
if any of the following happens:

2.3.1 Not applicable

2.3.2 Borrower defaulted under this Agreement and avoided Lender’s
entrustment payment supervision;

2.3.3 Borrower’s credit reduced and the main business
operation became weaken; and

2.3.4 There was abnormal situation happened to the loan proceeds.

 

Item three: Account Management and Financial Standards:

 

1. The parties agree that Borrower shall open the following
bank account with Lender subject to Lender’s supervision:

1.1 Account Name: Dalian TOFA New Material Development Co.,
Ltd.; Account #: 11005811050001

1.2 The above account will be used as the loan withdrawal and
repayment purpose.

2. Not applicable.

 

Item four: Loan interest

 

	1.  	Borrower, according to actual loan granting
    date, should pay interest every moth and interest payment date is on every 20th of every month. Borrower should
    deposit interest payment in its account, before interest payment date or lender has right to ask for extra interest payment,
    according to compound interest calculation and unpaid interest.

 

    	 

    	 

    

 

Item five: Installment

None.

 

Item six: Adopted law
and dispute solution

 

This contract is set, according
to PRC laws, and it is applicable for PRC laws. If any dispute happens during contract period, both parties can negotiate and try
to reach agreement; if two parties can not reach agreement, litigation should take place in lender’s residential place.

 

Item seven: Enforceable
notary, this contract does not need enforceable notary.

 

Item
eight: Additional agreement - if Borrower makes a pre-repayment, the fee for such prerepayment is 1%. (fee = remaining
loan months x total pre-repayment x fee rate). This loan shall be used in raw material purchase; Borrower shall make a
monthly payment of 50% of total due amount in two month prior to the due date of installment payment.

 

None

Item nine: This contract
is in duplicate, both of parties hold one copy and both copies have the same legal force.

 

Item ten: Settlement of
floating interest rate

 

For the floating interest
rate, interest rate is adjusted after adjustment date and lender charges interest, according to the new floating interest rate;
however, for amortizing loan, no matter same amount amortizing loan or acceleration amortizing loan, even though interest rate
is adjusted during the period, lender still charges interest according to former interest rate. And lender will charge interest
with new floating interest rate in next period.

 

Item eleven: Loan repayment

 

	1.  	Borrower should repay all the principle and interest on time. If borrower can not repay all the principle and interest by the end of due day, borrower must send written application to lender one month advanced and discuss with lender regarding the loan detail further.

	2.  	If borrower decides to repay all the principle and interest early, borrower also need to send application to lender to reach agreement.

	3.  	Borrower can not cancel lender right which is lender can take out all due amount or advanced principle and interest from the Shenzhen development bank account.

 

Item twelve: Borrower’s
rights

 

    	 

    	 

    

 

	1.  	Borrower has right to take out and use full amount of loan as contracted;

	2.  	Borrower has right to refuse any additional item which is not include in the contract;

	3.  	After receiving written consent from lender, borrower has right to transfer this loan to third party.

 

Item thirteen: Borrower’s
obligations

	1.  	Borrower has obligation to supply true materials as required by lender, and all bank account number and bank account balance with lender; and borrower must coordinate with lender about investigation, auditing and inspection;

	2.  	Borrower has obligation to give monthly financial reports and registry situation timely to lender;

	3.  	Borrower has obligation to be supervised to lender about loan usage, relative operation and financial activities and to coordinate with lender about loan repayment management, after-loan management and relative inspection;

	4.  	Borrower has obligation to use bank loan as required in the contract;

	5.  	Borrower has obligation to repay the full amount of the loan principle and interest;

	6.  	If borrower wants to transfer loan to third party, no matter partly or wholly, borrower has obligation to acquire written consent from lender advanced;

	7.  	If borrower wants to process significant property right alternation, structure transforming, consolidation, segregation of the entity, equity transfer, significant asset transfer, substantively increasing debt financing, investment to other parties and any deed could effect lender’s rights and interests; borrower must acquire written consent from lender and ensure to repay the remaining principle, interest and relative fee;

	8.  	Borrower has obligation to notify lender timely, if any thing happens to effect borrower’s solvency ability.

 

Item fourteen: Granting
credits to group clients and special agreement of related parties trading

 

	1.  	Group clients must possess following features:

	1.1  	From the aspect of equity or operation, client control other entities or is controlled by other entities, no matter directly or indirectly;

	1.2  	Both of client and other entities are controlled by third party entity;

	1.3  	Group client is, directly or indirectly, together controlled by main investors and key managers or their close family members( including linear relatives within three generation and collateral relatives within two generation );

	1.4  	There is other affiliate relationship through which the assets profits are might be transferred beyond market price; the commercial bank considers that the enterprise or public institution with legal person status shall be deemed as a group client under credit management.

	2.  	If borrower becomes a group client, when the trading value with relative parties is over ten percents of net asset, borrower should send a written report to lender within ten days from day of trading with relative parties; and this written should include the relationships between trading parties, what the trading projects are, the nature of the trading, trading amount or relative proportion and pricing policy (including trading without trading price or with small trading price).

 

Item fifteen: Lender’s
rights

 

	1.  	Lender has right to ask borrower supply materials which is relative with application for bank loan;

	2.  	Lender has right to require borrower repay principle and interest timely;

 

    	 

    	 

    

 

	3.  	Lender has right to acknowledge borrower’s operation, financial activities, repayment plan and also has right to after-loan management and relative inspection;

	4.  	Lender has right to supervise the usage of loan as being contracted, and do loan repayment management; for borrower who apply auto-payment method, lender also has right to ask borrower to supply summary of loan payment regularly, and lender can judge whether the usage of loan is strictly followed the contract by analyzing accounts, checking receipts, on-site investigation and other methods;

	5.  	Lender has right to indirectly transfer loan principle and interest from borrower’s account;

	6.  	If borrower does not follow the items contracted, lender has right to ask borrower to repay loan earlier or stop granting loan which is not fully used by borrower;

	7.  	Lender has right to ask borrower repay bank loan earlier, according to the situation of withdrawing of funds from circulation;

	8.  	If borrower is processing significant property right alternation, structure transforming, consolidation, segregation of the entity, equity transfer, significant asset transfer, substantively increasing debt financing, investment to other parties and any deed could effect lender’s rights and interests, lender has right to ask borrower repay the loan principle, interest and all relative fees, or lender has right to ask borrower to transfer this loan to another party approved by lender, or lender has right to ask borrower to supply approved party with guarantee;

	9.  	Lender has right to transfer loan-related rights and obligations to third party, and borrower must agree with this deed;

	10.  	If borrower is involving significant financing, sales of important assets, consolidation, segregation, equity structure reforming, liquidation or any vital issue, lender has right to take part in the issues mentioned above to protect lender’s creditor’s right.

 

Item sixteen: Lender’s
obligations

 

	1.  	Lender has obligation to grant credit to borrower as contracted;

	2.  	Lender has obligation to make borrower’s financials, producing and operation confidential, only except being required by laws, rules or other supervisory institutes.

 

Item seventeen: Fee
items

 

	1.  	To sign this contact, some fees, which could be incurred, due to investigation on capital and credit of borrower, inspection, notary, witness, registration and so on, should be responsible by borrower;

	2.  	If borrower can not repay principle and interest on time, lender has to do loan on calls which could also incur some fees ,including post fee, service fee, identification fee, legal expenses, litigation fee, travel expenses, appraising fee, auction fee, property preservation fee, enforcement fee and so on, should be paid by borrower.

 

Item eighteen: Borrower
should set up accounts for settlement in our bank, and do operation activity settlement through this account.

 

Item nineteen: breaching
affairs and breaching responsibility

 

	1.  	Breaching affairs: any following affair happens; this affair is regarded as breaching affair.

 

    	 

    	 

    

 

	1.1  	Borrower breaches any obligation as contracted, or borrower clearly state that he will not follow this contract or his deed indicates his breaching;

	1.2  	Any related material, document, statement, warranty or commitment is unreal, inaccurate, incomplete, false record, misunderstanding statement or significant omitting;

	1.3  	Borrower covers true situation, does not cooperate with lender to do investigation, auditing or inspection;

	1.4  	Borrower change the usage of loan as contracted, misappropriation or taking part in illegal  or irregular trading;

	1.5  	Borrower breaches the agreement of repayments;

	1.6  	Borrower does not reach the requirement of financial ratios as contracted;

	1.7  	Borrower does not follow the rule issued by government to use the foreign currency loan;

	1.8  	Keeping or the value of collateral changes a lot;

	1.9  	Borrower does not follow contracts or similar contracts which is singed with lender or third party(including but not limiting granting credit contract, loan contract and guarantee contract), or issuing any security with bond nature, or any lawsuit or arbitration incurred from contracts or issuing securities mentioned above;

	1.10	Borrower’s warrantor breaches warranty contract(including but not limiting contract of guarantee, mortgage contract, pledge contract) or incurring breaching affair under warranty contract, or invalid warranty, ineffective warranty or canceled warranty happens;

	1.11	Borrower does not take enough care to manage or claim due debt rights, or borrower transfer wealth in unrecoverable, unreasonable or any other inappropriate way or any deed of escaping from debt right happens;

	1.12	Borrower deals with any third party(including but not limiting lender’s related party) to take use of untrue contract or arrangement, including but not limiting using not existing trading receivables to discount or pledge and to further acquire lender’s or other banks’ capital or granting credit;

	1.13	Borrower escapes from debt right of bank with intention, in the way of related party trading or other ways;

	1.14	Borrower encounters significant operation problem, huge worsening financial situation, vital financial losses, asset losses(including but not limiting losses causing by warranty for other parties) or financial crisis in other forms;

	1.15	Borrower is punished or in sanctions, due to illegal operation, or is being investigated by related department and is possible to be punished or in sanctions;

	1.16	Borrower is involving segregation, consolidation, merger and acquisition, disposal of significant assets, reducing capital, liquidation, restructuring, repealing, being announced to go bankruptcy, being disbanded or others;

	1.17	Borrower changes its majority stockholder or management controlling person, and lender deems this issue can possibly affect debt rights; or important issue happens to majority stockholder, management controlling person, legal representative person, high management level; this issue include but not limits punishment or sanction caused by illegal operation or persons mentioned above is possible to be punished, in sanctions, to incur lawsuit or arbitration, to worsen financial situation, to announce to be bankruptcy or disbanded or others;

	1.18	Industry of borrower changes, which may cause losses to borrower, lender deems this change has already hampered debt rights or it is possible to be negative to debt rights;

	1.19	Borrower does not do balancing or saving as contracted;

	1.20	Any situation, which is relevant to borrower, can make or may make debt rights unsecure;

	2.  	breaching responsibilities: if any breaching affairs mentioned above happens, lender has right to adopt any or together adopt several measures:

 

    	 

    	 

    

 

	2.1	Lender can state loan is due, and claim part or whole amount of principle, interests and related fees, including but not limiting, related investigation fee of capital and credit, inspection fee, notary fee and so on, legal expenses, litigation fee, travel expenses, post fee, service fee, enforceable fee and all other relevant fees which are used to help lender realize its debt rights;

	2.2	Ceasing or terminating residual loan;

	2.3	Having rights to deduct principle, interests and fees from borrower’s and guarantor’s accounts;

	2.4	Requiring borrower offer new warranty contract which can meet lender’s requirements;

	2.5	Taking use of warranty rights and requiring guarantor to fulfill its responsibilities or securing lender’s debt rights through disposal of collateral or pledge;

	2.6	Loan is due or due before schedule, and borrower does not repay principle and interests as contracted, lender has right to charge 50% additional punishment interest on principle, according to the dates after due and lender also uses compound interest calculation to obtain the punishment interest: if days after loan due day is no more than 90 days, the payment sequence of loan is :(1) interests (including punishment interest, compound interest); (2) principle. If days after loan due day is more than 90days, the payment sequence of loan is :(1) principle;(2) interests (including punishment interest, compound interest);

	2.7	Borrower who misappropriates loan, lender has right to charge borrower additional 100% punishment interest according to the misappropriation date, days and contracted loan’s interest. If borrower can not pay interest timely, lender will use compound interest to calculate punishment interest;

	2.8	According to laws, lender can use subrogation to claim loan from borrower’s debtor, borrower should, according to lender’s requirements, supply all necessary coordination and help; and all fees incurred from subrogation are afforded by borrower;

	2.9	Appealing to law court to cancel borrower’s due debt rights or any deed of transferring  ownership without payment or unreasonable low transferring price; borrower should, according to lender’s requirements, coordinate and help lender, and all related fees should be paid by borrower;

	2.10	Lender, according to laws and rules, has right to claim other recoverable measures;

 

Item twenty: Being amended
and being canceled of contract

 

After negotiation between
borrower and lender, this contract can be amended and canceled, and new agreement should be in the written form.

 

Item twenty-one: borrower’s
statement, guarantee and commitment

	1.  	Borrower is a perspective lasting company with good reputation; it was set up, following laws. It has all company rights and approval from government and it can engage in its current operation;

	2.  	Borrower has its legal rights, legal authority and it also has power to authorize to sign, pay and carry out this contract. This contract is effective to borrower and it can also restrict borrower. And according to this contract’s items, this contract can be executive to borrower;

	3.  	Borrower guarantee that all supplied materials are true, complete, legal and effective, and they are without fake record, misleading statements or significant omitting;

	4.  	Borrower made commitment with honor that it will fulfill all contract’s obligations with kindness, and without consent from lender, borrower will not do anything(including not fulfilling its obligations or doing something that it should not do) to destroy debt rights;

	5.  	Borrower made commitment with honor that if any change happens to borrower, such as changes of residential address, changes of contact address, changes of contact number, changes of operation scope and legal representative status and so on, borrower will send written report to lender within ten days after alteration. If borrower does not fulfill obligations mentioned above, lender can also send documents to original contact address, and this deed is regarded as successful service;

 

    	 

    	 

    

 

	6.  	Borrower confirms with honor that borrower has already read this contract with care, has already been acknowledge and fully understood this contract; and signing this contract is following its real and true will.

 

Item twenty-two: Others

 

	1.  	During the period of this contract, when borrower does breaching and delaying deed, lender has rights to reserve its rights to do any forgiveness, losing this contract or delaying execute this contract; and these deeds, as mentioned above, can not be regarded as lender’s approval, they are not regarded as waiving its rights to borrower;

	2.  	No matter what happens to make this contract fully or partly valid, borrower still has obligations to do its payment duties. If any party of this contract encounters situation as mentioned above, lender can immediately claim residual principle, interests and all other related fees;

	3.  	It is required that all borrower’s and lender’s contract-related notice, requirements should be in written form.

	4.  	If the contract date is public holiday or contract date is in the period of public holiday, the settlement day is the fist day after public holiday.

 

Item twenty-two: Conditions
can make loan contract valid and terminated.

 

	1.  	Conditions can make loan contract valid: this contract is valid after signed by both parties(it should have person’s signature or seal, who is legal and in charge, and it also need seal of both parties’);

	2.  	Conditions can make loan contract terminated: Borrower repaid all principle, interests and all related fees.

 

 

 

Lender’s seal:

 

Person-in-charge‘s
or authorized person’s signature: /s/ Yuan Baigang

 

April 29, 2011

 

 

Borrower’s seal:

 

Legal representative status’s
or authorized person’s signature: /s/ Zheng Chuantao

 

April 29, 2011

 

    	 

    	 

    

 

Appendix

 

Loan Withdrawal and Payment Application

 

Shenzhen Development Bank Dalian Branch:

 

Based on the Yilian Daizi No. 20110429217 Loan Contract, the
undersigned requests the payment of the loan withdrawal and please make an irreversible wiring of the following amount to the following
designed party:

 

	Wiring Party	 	Account #	 	Currency	 	Payment Amount
 (RMB)	 
	Dalian Huaxiu Industry and Commerce Co., Ltd.	 	11000609817901	 	rmb	 	7,500,000	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

 

The undersigned has submitted the required business transaction
contracts and related documents as the supporting proofs to this Application and guaranty the provided information is true legitimate
and valid.

 

Applicant: Chuantao Zheng

 

[Corporate Seal]

 

April 29, 2011

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