Document:

Exhibit 10.12

Supply Contract

 

The following agreement has been concluded by
and between SUNG JIN TECH CO., LTD. 8-1, Jookgok-ri, Jinyoung, Gimhae,Korea, 621-801 (hereinafter together referred to as “SUNG
JIN TECH” ).

 

and

 

Shandong Hongli Special
Section Tube, company registration no. 370725228001660, with its registered office in No.3, Changle economic techonomic development zone,
Shandong, China and its global subsidiaries and affiliates (hereinafter referred to as the “SUPPLIER”).

 

SUNG JIN TECH and the SUPPLIER
are hereinafter jointly referred to as the “Parties” and individually as a “Party”.

 

This Agreement has been
entered into between SUNG JIN TECH and SUPPLIER and shall for the Parties constitute a part of the “Framework Agreement for Deliveries
to SUNG 」 IN TECH”, including all the appendices thereto (together constituting the Purchase Agreement) entered into between
AB SUNG JIN TECH and the SUPPLIER on 2014-07-23.

 

This Agreement establishes
the agreed price structure and the quality and delivery performance expectations for all the Parts which SUPPLIER may supply to SUNG JIN
TEC H and SUNG JIN TECH buys from SUPPLIER.

 

Objectives

 

SUNG JIN TECH and the SUPPLIER
agree to cooperate in order to achieve a continuous improvement of quality, delivery and cost with the goal of zero defect, 100% delivery
precision and year on year cost improvements.

 

Definition

 

For the purposes of this agreement,

 

“Cost(s)” means
landed costs including but not limited to raw materials, labor costs, process costs , factory overheads, costs of poor quality, complete
shipping costs, customs duties, tariffs, taxes, insurance, currency conversion, amortization.

 

“Delivery Schedule”
(which contains Orders and forecast) has the same meaning as Delivery Plan as defined in SUNG JIN TECH’s General Purchasing Conditions,
June 2011 (“SUNG JIN TECH’s General Purchasing Conditions”).

 

“Firm Time” is
the period of time of the Delivery Schedules which is firm and binding for SUNG JIN TECH and includes the firm requests for delivery mentioned
in Section 8.1 of SUNG 」 IN TECH’s General Purchasing Conditions.

 

“Warranty Routines
Agreement” shall mean the SUNG JIN TECH Construction Equipment warranty routines agreement in its template form or as specifically
agreed with the SUPP LIER.

 

If not stated differently in this Agreement any
term used shall have the meaning as stipulated in SUNG」IN TECH’ s General Purchasing Conditions.

 

    

     

    

 

	1.	Costs

 

	1.1	Cost Breakdown

 

SUPPLIER will supply a complete
Cost breakdown (including but not limited to labor, material, and amortization) .

 

	1.2	Productivity and Cost rationalisation

 

SUNG JIN TECH and the SUPPLIER
will actively work together to reduce Costs to the benefit of both Parties.

 

To achieve this, SUNG JIN
TECH agrees to share the necessary technical knowledge and documentation, and consult the SUPPLIER, where appropriate in the early stages
of Product development. The SUPPLIER will make proposals to improve the Part s’ design and Cost. The SUPPLIER shall develop eff
iciency programs to remove waste resulting in continuous Cost improvements.

 

	1.3	Price Development

 

The Parties have agreed
to the following price development to be implemented at specific times as stipulated in the table below.

 

	Validity period (valid from)	 	2018/09/01	 	 	2019/09/01	 	 	2020/ 09/ 01	 
	Purchase Price of the previous year	 	 	-2	%	 	 	2	%	 	 	-2	%

 

Any other changes of the
price than those stated in the table above shall not be valid unless agreed between the parties in writing. After the last change in line
with the table above has been made the price will be unchanged until otherwise agreed in writing.

 

	1.4	Price Validity

 

The prices are valid under the following conditions:

 

	●	The Parts shall be packed in standard SUNG
                                      JIN TECH packaging material (VEMB), unless otherwise agreed between SUNG 」IN TECH and SUPPLIER.

 

	●	Delivery terms are those stated in SUNG
                                       JIN TECH ’ s General Purchasing Conditions.

 

	1.5	Component part Price

 

The aggregate price of all
basic components of any Part shall not exceed the price of the Part it together constitutes, excluding additional packaging costs. When
the unit price of the bigger Part changes, the price of each basic component shall change accordingly.

 

	1.6	Aftermarket Price

 

Purchasing price will be
the same for Parts independent of if they are delivered to serial production or delivered as spare parts, for the time period the Part
is running in serial production. When the Part is phased out from serial production, price may be subject to mutual review. Agreement
on commercially reasonable prices on such one occasion will reflect the new circumstance. After such one-time revision, the price for
such Part will continue to follow the terms of the Purchase Agreement.

 

    2

     

    

 

	1.7	Raw Materials Clause

 

When raw materials represent more than 50% of
the price of the component, any significant Cost changes that SUPPLIER incurs due to changes in raw material prices will be reflected
in the Part price in accordance with Appendix 2.

 

For the purposes of this clause,
raw materials include steel/rubber used for the manufacture of the Part but not any Costs associated with processing, such as energy,
labor costs, taxes and other fees, general inflation etc.

 

	1.8	Payment Terms

 

Unless otherwise is prescribed
in mandatory legislation in relevant jurisdiction, payment shall be made three (3) months after the end of the month in which the invoice
was received by SUNG JIN TECH or the Parts were delivered, whichever is later.

 

	2.	Quality

 

	2.1	Quality Cooperation

 

SUNG JIN TECH and the SUPPLIER
will actively work together to eliminate the causes of Defective Parts. To achieve this, where SUNG JIN TECH has design responsibility,
SUNG JIN TECH will provide necessary drawings and technical specifications, and where appropriate involve the SUPPLIER in the early stages
of Product development. However, Supplier shall in any case ensure it has obtained all relevant information which it needs and which is
affecting the Part (including but not limited to considering the intended use of the Part). For all Parts in serial production, SUNG JIN
TECH will provide quality performance data to support the SUPPLIER’s root cause analysis. The SUPPLIER shall continue to develop
its quality assurance process to improve process capability and remove waste, resulting in continuous quality improvements.

 

The SUPPLIER agrees that
its quality assurance system, including change management process will remain certified with ISO 9000 and that its shop floor based quality
management will continuously comply and/or exceed all such requirements, and utilize this to drive zero defect and continuous improvement.

 

The SUPPLIER agrees to establish
appropriate quality Key Performance Indicators (“ KPI ” ) specifically relating to the Parts and commits to continuously make
proposals and take actions to improve the quality defect levels set out below.

 

The Parties have agreed the
following maximum quality defect level at specific times as stipulated in the table below.

 

	Validity period (valid from)	 	2017/09/01	 	 	2018/09/ 01	 	 	2019/09/01	 	 	2020/09/01	 
	Zero Hours PPM (rolling 3 months}	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 
	Field issues (rolling 6 months)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

    3

     

    

 

		2.2	Warranty

 

SUPPLIER warrants the Parts
for a period of two (2) years from the date the Parts are delivered to the end-user in accordance with SUNG JIN TECH’s General Purchasing
Conditions and the Warranty Routines Agreement.

 

		2.3	Defect Management

 

In case SUPPLIER has delivered a Defective Part
SUNG JIN TECH shall be entitled to demand immediate rectification or immediate delivery of replacement Parts in accordance with SUNG
JIN TECH’ s General Purchasing Conditions and the Warranty Routines Agreement. When such a situation occurs, SUPPLIER shall perform a root
cause analysis and implement relevant corrective actions.

 

If due to a delivery of a Defective Part SUNG
JIN TECH considers it necessary to inspect all Parts of the same kind delivered by the SUPPLIER, SUNG JIN TECH shall be entitled
to give the SUPPLIER notice thereof to and make such inspection at the SUPPLIER’s expense and without awaiting the SUPPLIER’s approval.

 

		2.4	Consequences of quality improvement failures

 

In case the Parts Per Million
(PPM) result is a higher number than the maximum quality defect level, SUPPLIER will escalate the issue to its site management, and will
without delay provide documentation including root cause analysis and propose relevant corrective actions to increase the quality performance
in line with the levels set out in 2.1 above and implement such corrective actions .

 

The
progress of the corrective actions must be reviewed and approved by SUPPLIER’s senior management. SUNG JIN TECH may
request the SUPPLIER to share and/ or present the results of such review.

 

If SUPPLIER is not successful in bringing the
delivered quality in line with the agreed maximum quality defect level then, at the completion of the calendar year, measured Jan-Dec,
SUNG JIN TECH shall be entitled to request the SUPPLIER to pay a penalty of an amount equal to 2 % of the SUPPLIER’s turnover during the
preceding calendar year for the calendar month that show a PPM result that is a higher number than the agreed maximum quality defect level
for the preceding calendar year.

 

		3.	Delivery

 

		3.1	Delivery Cooperation

 

SUNG JIN
TECH and the SUPPLIER will actively work together to increase the delivery precision of Parts. To achieve this SUNG JIN TECH will
provide Delivery Schedules containing firm Orders and forecasts. SUNG JIN TECH will provide delivery information through EDI.

 

SUPPLIER
will install a flexible manufacturing system in line with SUNG JIN TECH’s forecast and Order quantities. This includes a
comprehensive capacity management system and delivery KPls specifically relating to the delivery and supply performance of the Parts
supplied to SUNG JIN TECH.

 

SUPPLIER will deploy action
plans to achieve the minimum delivery performance requirements set out below and commits to continuously make proposals and take action
to shorten the production and supply lead times of the Parts production and supply chain.

 

    4

     

    

 

The Parties agree to the
following minimum delivery performance requirements at specific times as stipulated in the tables below.

 

	Validity period (valid from)	 	2017	 	 	2018	 	 	2019	 	 	2020	 
	Delivery Precision	 	 	95	%	 	 	96	%	 	 	97	%	 	 	98	%

 

	Validity period (valid from)	 	2017/09/01	 	 	2018/09/01	 	 	2019/ 09/01	 	 	2020/09/01	 
	Trade-Off Period (calendar days}	 	 	14	 	 	 	14	 	 	 	14	 	 	 	14	 
	Firm Time (working days)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

		3.2	Trade-Off Period

 

The “Trade-Off Period”
is the time period during which the SUPPLIER has SUNG」IN TECH’s approval to purchase the raw materials necessary for producing
the forecast and firm Orders of Parts to be supplied to SUNG JIN TECH.

 

In the event
that SUNG JIN TECH cancels the forecasted quantity with in the specified Trade -Off Period, SUNG JIN TECH will compensate SUPPLIER for
all reasonable material costs only. In calculating such costs the SUPPLIER shall not receive compensation to the extent that the Part
- or components semi-manufactured items or raw materials intended for it - can be used for other deliveries to SUNG JIN TECH or another
party, or for another purpose. SUNG JIN TECH’s obligation to compensate for cancellations is conditional upon the SUPPLIER submitting
specified claims for compensation in writing not later than six (6) weeks after the cancelation.

 

In line with the above and
to avoid any misunderstanding, SUNG JIN TECH will not in case of a cancellation as referred to above compensate the SUPPLIER for any cost
for processing or pre manufacturing of raw material performed unless expressly agreed in writing between SUNG JIN TECH and the SUPPLIER.

 

		3.3	Procurement Principles

 

Procurement principles will
be decided by SUNG JIN TECH after evaluation of the supply chain capability and consultation with the SUPPLIER. The procurement principles
will be chosen from a standard set of SUNG JIN TECH methods. The methods are based on replenishment pull (Kanban & Re-order
point), sequenced pull (sequence set/kit or single item), push (MRP) and two enabling procurement methods (VMI - Vendor Managed Inventory
and LDS - Long Distance Supply). Detailed information is found in the Delivery Manual at SUNG JIN TECH’s Supplier Portal.

 

		3.4	Delivery Schedules

 

The Delivery Schedule is
to be seen as valid upon receipt by SUPPLIER and surpasses any previously received Delivery Schedule. SUPPLIER shall immediately inform
SUNG JIN TECH if there is a risk of non-compliance with the most recent Delivery Schedule issued by SUNG JIN TECH. For the avoidance of
doubt, such action must be taken maximum 24 hours after receipt of the Delivery Schedule.

 

If agreed by SUNG JIN
TECH, requests for deliveries on days when the SUPPLIER facilities are closed due to, for example, National holidays, vacations etc. may
be delivered on the previous pick up day.

 

		3.5	Delivery management

 

SUPPLIER shall deliver on
time the correct quantity and identification in accordance with agreed delivery terms/special supply instructions. On-time deliveries
are those that are dispatched or delivered on the date specified by SUNG JIN TEC H. SUPPLIER shall comply with SUNG JIN TECH transport
instructions.

 

In case of non-conforming
deliveries SUNG JIN TECH shall be entitled to demand immediate rectification and the SUPPLIER shall compensate SUNG JIN TECH for all Costs.
For the avoidance of doubt, SUNG JIN TECH will have the right to request the implementation of corrective actions and organize
additional transportation for replacement Parts. All expenses connected with non conforming deliveries shall be borne by the SUPPLIER.

 

When implementing corrective
actions, SUPPLIER shall provide replacement Parts, root cause analysis and countermeasure documentation.

 

    5

     

    

 

		3.6	Consequences of delivery improvement failures

 

In case the delivery precision
is a lower number than the minimum delivery performance requirements, SUPPLIER will escalate the issue to its site management, and will
without delay provide documentation including root cause analysis and propose relevant corrective actions to increase the delivery precision
of the Parts to a level that is in line with the agreed levels set out in

 

		3.1	above and implement such corrective actions.

 

The
progress of the corrective actions must be reviewed and approved by SUPPLIER’ s senior management. SUNG JIN TECH may request the SUPPLIER
to share and/or present the results of such review.

 

If SUPPLIER is not successful
in bringing the delivery performance in line with the agreed minimum delivery performance requirements then, at the completion of the
calendar year, measured 」 an-Dec, SUNG JIN TECH shall be entitled to request the SUPPLIER to pay a penalty of an amount equal to
2 % of the SUPPLIER’s turnover for the preceding calendar year for the calendar month that show a delivery precision performance result
that is a smaller number than the agreed minimum delivery performance requirement for the preceding calendar year.

 

		3.7	Inventory
Management

 

As
a combined indicator for SUPPLIER’s lead time and delivery precision, SUNG JIN TECH will measure the inventory held in its premises.
This measurement is known as ITO (Inventory Turn-over) and calculates the number of times SUPPLIER’s inventory on SUNG JIN TECH premises
can be used to cover the yearly demand. ITO must be as high as possible with a minimum of 20 times per year.

 

		3.8	Transport
and Packaging

 

SUNG JIN TECH shall have
the right to decide transport frequency and package material to meet the requirements defined by the SUNG JIN TECH assembly lines.

 

For Free Carrier (FCA) supplier
premises shipments and or extended versions of FCA, SUPPLIER must book the transport through SUNG JIN TECH Group Logistics Services using
the system specified by SUNG」IN TECH .

 

SUPPLIER must comply with
the specific packaging and labelling instructions issued by SUNG JIN TEC H. General standard packaging ordering and labelling instruction
ns are found in the ‘Delivery Manual in the SUNG JIN TECH Supplier Portal’.

 

		4.	SUNG JIN TECH charge back routine

 

The SUPPLIER shall compensate SUNG JIN TECH for
all Costs arising out of or relating to its non-compliance with quality specifications or delivery instructions; including but not limited
to: additional handling, transportation, rejection, inspection and rework costs incurred by SUNG JIN TECH or an appointed third party
;and loss of production an ‘factory overhead’ costs .

 

The above list is not exhaustive
and provides only examples of categories of costs that may be claimed by SUNG JIN TECH.

 

    6

     

    

 

		5.	Forecast and Capacity management

 

		5.1	Forecast

 

SUNG JIN
TECH will provide SUPPLIER with forecasts of an agreed forecast length, in general 12 months rolling, by EDI or other agreed means
of integrated business communication. SUPPLIER is responsible for sharing the latest updated information with all of its suppliers
and subcontractors.

 

		5.2.	Supply and capacity flexibility

 

Any quantity included in
the Delivery Schedule that exceeds what is a firm request for delivery of Parts shall be considered a forecast only and shall not be binding
on SUNG JIN TECH. However, the SUPPLIER is obliged to maintain such production and delivery capacity so that deliveries can be
made in accordance with the forecast quantity in the Delivery Schedule.

 

SUPPLIER shall establish and
maintain a manufacturing and supply process enabling SUPPLIER to manage volume increases in both the short and long term. The intent is
that the Parties will establish SUPPLIER’s minimum obligation as regards supply and capacity flexibility for volume increases in accordance
with past (weekly, monthly or quarterly basis) market fluctuations.

 

If SUNG」IN TECH’s Delivery
Schedule goes beyond the agreed SUPPLIER’ s minimum supply flexibility mentioned above and SUPPLIER identifies any risk of non-conformity
with supplying what the Delivery Schedule states, SUPPLIER shall communicate without delay, within a maximum of 24 hours of receiving
the Delivery Schedule. The Parties shall then enter into discussion on how the situation should be solved and SUPPLIER shall without delay
implement relevant mitigation actions. If the Supplier is unable to meet SUNG JIN TECH’s need for the Parts, the Supplier shall find alternative
supplies for SUNG JIN TECH in consultation with SUNG JIN TECH. Actual procurement from the alternative supplier is subject to SUNG JIN
TECH’s final written approval.

 

		6.	Communication

 

If either Party suspects
that their effective communication is at risk, they must inform the other immediately within a maximum of 24 hours.

 

		7.	General additional contractual obligations

 

This Agreement shall not
restrict or relieve the Parties of their obligations stipulated in other parts of the Purchase Agreement or relieve the Parties from any
consequences of poor performance and/or other liabilities stipulated in other parts of the Purchase Agreement.

 

This agreement has been executed in 2 originals
of which the parties have taken one each.

 

	Date: July 23, 2014	 	Date: July 23, 2014
	 	 	 
	Purchasing & Supplier Management	 	General Manager
	SUNG JIN TECH CO.,LTD.	 	 
	 	 	 
	/s/ Dongyeek Park	 	/s/ Jie Liu
	Dongyeek Park	 	Jie Liu

 

    7

     

    

 

PURCHASE ORDER

 

Order No.: Hongli-C-_____

Date:___________

 

	Goods receiving address	Supplier address
	
    SUNG JIN TECH CO., LTD

    8-1, Jookgok-ri, Jinyoung, Gimhae

    Korea, 621-801
	
    Shandong Hongli Special Section Tube CO., Ltd

    Changle County, Weifang China

	Invoice Address	Currency	USD
	Same as above	Terms of Delivery	FOB
	Terms of Payment	90 days after B/L date
	No.	Part Number	Part Name	Type	Quantity (pcs)	Unit Price	Net Amount
	1	 	 	 	 	 	 
	2	 	 	 	 	 	 
	3	 	 	 	 	 	 
	4	 	 	 	 	 	 
	5	 	 	 	 	 	 
	6	 	 	 	 	 	 
	7	 	 	 	 	 	 
	8	 	 	 	 	 	 
	9	 	 	 	 	 	 
	10	 	 	 	 	 	 
	11	 	 	 	 	 	 
	12	 	 	 	 	 	 
	13	 	 	 	 	 	 
	14	 	 	 	 	 	 
	15	 	 	 	 	 	 
	16	 	 	 	 	 	 
	17	 	 	 	 	 	 
	18	 	 	 	 	 	 
	19	 	 	 	 	 	 
	20	 	 	 	 	 	 
	21	 	 	 	 	 	 
	Grand Total   
	
    Remark 1

    Shipping method: Ocean

    Nomination vendor:
	
    Remark 2

    Our part no. & purchase no. must be clearly indicated on the delivery
    note and the invoice.

    We require the order confirmation by return E-mail. Request dispatch
    date: [date]

	
    Issued by

    [Name and Signature of SUNG JIN TECH CO., LTD]
	
    Confirmed by

    [Signature of Shandong Hongli Special Section Tube Co., Ltd.]

 

 

8Exhibit 10.13

 

		Contract No

 

Sale
and Purchase Agreement

 

Seller:
Shandong Hongli Special Section Tube Co., Ltd

 

Buyer:
Shandong Lingong Construction Machinery Co., Ltd 

 

After
friendly negotiation, the buyer expresses his wish to purchase products from the seller, and the seller also expresses his willingness
to supply products to the buyer. In order to achieve mutual benefit and win-win situation, the buyer and the seller reach the following
agreement:

 

1.
Product specification and price

 

1.1
The buyer and the seller agree to execute the transaction according to the specifications and prices in the table below.

 

The
price is the price that arrives at the buyer’s factory and includes freight, excluding VAT. Currency: RMB. Monetary unit: yuan.

 

	Serial
    number	Material
    name and model	Company	Estimated
    amount	remarks
	1	 	 	 	 
	2	 	 	 	 

 

explain:

 

(1)
When there are many kinds of products, it is shown in the form of attached table. The price schedule confirmed by both parties shall
have the same legal effect as this agreement.

 

(2)
The list of tools and accessories attached with the product is as follows (if both parties have signed a technical agreement, the technical
agreement shall prevail)

 

	Serial
    number	Product
    name	Specification
    and model	Attached
    quantity	remarks
	1	 	 	 	 
	2	 	 	 	 

 

1.2
During the performance of the contract, if there are external factors (such as inflation, exchange rate changes, energy crisis and raw
material price changes, etc.) leading to the continued performance of the original contract, it will cause a significant unfair result
to one party, and both parties can adjust the product price through negotiation.

 

1.3
The annual price reduction agreement (in order to adapt to the impact of the increase of supply quantity on the price, both parties agree
to adjust the price according to the annual change)

 

     

     

    

 

	Price
    effective time	2018
    year	2019
    year	2020
    year	2021
    year	2022
    year
	Year
    on year price reduction ratio	 	 	 	 	 
	Note: the price of the nth year = (n-1) December 30 price * (1-price reduction ratio), and the implementation date of the new price is January 1 of each year; The price adjustment proportion of subsequent years shall be determined by both parties through negotiation.

 

1.4
The price determined by both parties through the information system (SAP / Viva / ERP / e-mail) is valid (that is, if both parties implement
the actual transaction through the buyer’s information system, it is deemed that both parties have reached an agreement on the
price), which has the same legal effect as this agreement.

 

1.5
The estimated annual supply amount is  yuan. The actual supply quantity and amount are subject to the actual order.

 

2.
Product delivery

 

2.1
Product order: the buyer shall provide the seller with the forecast demand plan, which is not the final order purchased by the buyer
from the seller, but only for the reference of the seller in production preparation. The order placed by the buyer through written order
/ e-mail / ERP / SAP / Viva is the formal execution order, and the seller shall deliver the goods according to the order.

 

2.2
Packing method: Tooling rack. Packaging expenses (including product packaging, transportation shelf and on-site distribution station
equipment) shall be borne by the seller.

 

2.3
Place of delivery: buyer’s factory.

 

Delivery
method: Storage. if the goods are delivered through the third-party logistics company, the seller shall entrust or be responsible
for delivering the goods to the buyer’s production site. The distribution cost shall be borne by the seller and the third-party
logistics company through negotiation. The seller shall still be responsible for the delivery delay, product damage and related losses
to the buyer caused by the third-party logistics company.

 

2.4
Delivery cycle:

 

Inherent
delivery period: the inherent delivery period refers to the number of days from the buyer’s purchase order to the product delivery
to the buyer’s factory when the seller does not receive the buyer’s forecast demand plan in advance. This agreement stipulates
that the seller’s inherent delivery period is 20 days.

 

Actual
delivery period: the buyer shall provide the seller with the forecast demand plan in advance of the inherent delivery period. In this
case, the actual delivery period shall be 7 days.

 

2.5
Product acceptance: after the seller’s products arrive at the buyer, the buyer shall carry out acceptance in accordance with the
provisions of this contract, other agreements signed by both parties, relevant standards or technical data requirements.

 

2.6
If the seller fails to deliver the goods according to the time, quantity and quality required by the buyer, thus affecting the production
of the buyer, the buyer shall, according to the number of complete machines affecting the production, make a claim for delivery at the
rate of 200 yuan / 10min / set to the seller. The claim amount is directly deducted from the payment due to the seller. Quality claim
according to Chapter 4, 3.1, 3.3 implementation.

 

2.7
If the seller fails to supply the goods according to the buyer’s order time for more than three times in a quarter, the seller
agrees to reduce the supply price by 2% in the next quarter. For more than 5 times, the decrease was 5%; At the same time, for non-exclusive
suppliers, in addition to the implementation of price reduction measures, we should also reduce the proportion of supply. If the seller’s
delivery performance cannot be improved after price and proportion adjustment or other measures, the buyer has the right to directly
cancel the seller’s supply qualification.

 

    2

     

    

 

2.8
If the buyer needs to cancel the formal order issued to the seller, it shall notify in advance of the inherent delivery cycle. If the
seller has put the product into production in this period, the buyer shall negotiate with the seller to determine the inventory consumption
measures of the products that have been put into production. If necessary, the buyer shall bear the corresponding losses, which shall
be negotiated by both parties.

 

3.
Payment for goods

 

3.1
Payment period: 60 days after the buyer receives the qualified invoice issued by the seller and accounts in the buyer’s system.

 

(Note:
A. if the buyer receives the goods and the goods pass the inspection, the seller shall issue a qualified invoice, and the payment amount
shall be subject to the buyer’s financial book; The buyer shall pay for the goods in a centralized way from the 15th to the end
of each month; The payment amount is the total amount due and payable up to the end of the month.

 

3.2
Payment method: Acceptance.

 

3.3
After the buyer and the seller terminate the cooperation, the buyer shall reserve part of the quality deposit according to the seller’s
supply amount and product failure rate.2.5 years after the seller’s last invoice (referring to the assembly supplied by the seller
for the buyer to assemble the whole machine, not the accessories) is entered into the account. If the products supplied by the seller
do not have quality claims within the warranty period, and the seller can still guarantee the supply of accessories or sign the warranty
agreement for the supply of accessories, the deposit shall be settled by the buyer to the seller within 45 days after negotiation.

 

4.
Quality assurance

 

The
seller shall supply the goods according to the technical agreement, drawings, technical standards, other quality requirements and other
documents confirmed in advance, and implement the following quality assurance terms:

 

4.1
Guarantee

 

4.1.1
The seller guarantees the quality of the products (including parts as service accessories) supplied to the buyer. If the following circumstances
occur, the quality shall be considered as unqualified:

 

(1)
Failing to meet the relevant quality standards or technical requirements of the product;

 

(2)
Inconsistent with the sample, model provided by the seller or the promised quality, function, appearance, etc ;

 

(3)
Other circumstances that do not meet the buyer’s reasonable expectations.

 

4.1.2
The warranty period of the products and parts supplied by the seller is 24 months (if the end user needs to agree on a special warranty
period, Party A and Party B shall negotiate another warranty period; If the quality target agreement is signed for key parts, it shall
be implemented according to the quality target agreement, and the starting time shall be calculated from the time when the buyer delivers
the complete machine (including accessories) to the end user.

 

    3

     

    

 

4.2
Quality responsibility

 

4.2.1
According to the agreement in Clause 1.1 above, if the product has quality problems, the buyer has the right to require the seller to
immediately correct or immediately deliver the substitute product.

 

4.2.2
If the product with quality problems has the risk of affecting the production or delivery of the buyer, the buyer has the right to carry
out necessary repair or replacement without the consent of the seller.

 

4.2.3
The seller shall compensate the buyer for the direct and indirect losses arising from the delivery of products with quality problems,
including but not limited to the expenses for assembly and disassembly, testing and analysis, destruction and transportation.

 

4.2.4
If the buyer decides to recall or correct the sold complete machine due to the serious quality problems of the seller’s products,
the Seller shall compensate the buyer for the expenses related to the recall or batch rectification.

 

4.3
Agreement on the processing flow of faulty products

 

4.3.1
Pre-sale failure (refers to the failure occurred before the seller’s product has been delivered to the buyer, but the buyer has
not yet sold it to the market)

 

4.3.1.1
For the products with pre-sale fault, if the buyer thinks that they cannot be used or handled in the buyer’s factory, he shall
notify the seller to return them within 5 days, and the seller shall respond within 5 days after receiving the notice to confirm how
to return or handle the fault products. Otherwise, the seller shall be deemed to have given up the ownership of the faulty product, and
the buyer may handle it by himself.

 

4.3.1.2
In case of pre-sale failure, the quality control personnel of the buyer’s quality assurance department shall inform the seller
of the failure through SAP system or email within 3 days. The seller shall complete the emergency treatment measures for the fault within
2 days after receiving the notice, and complete the formulation of follow-up improvement and preventive measures within 20 days. The
seller shall appoint a special person to check the email information or Viva / LDP system authorized by the buyer every day, and exchange
information with the buyer’s quality control personnel in a timely manner.

 

4.3.1.3
The buyer shall claim against the seller for the expenses incurred in handling the pre-sale fault according to the following standards:

 

4.3.1.3.1
If the assembled complete machine needs to be disassembled and replaced again, it shall be claimed according to the actual expenses incurred
by the buyer.

 

4.3.1.3.2
For those requiring re inspection and testing, the claim shall be made at RMB 200 per material;

 

4.3.1.3.3
If the buyer’s production line is shut down due to unqualified products, the number of affected complete machines shall be 500
per 10 minutes.

 

4.3.1.3.4
If other property losses or personal injuries occur to the buyer due to unqualified products, the buyer shall claim for compensation
according to the actual losses.

 

4.3.2
Handling of after-sales fault (refers to the fault occurred after the seller’s product is sold to the market by the buyer) (refers
to the product within the warranty period)

 

4.3.2.1
The seller entrusts the buyer to repair or replace the products with after-sales failure.

 

4.3.2.2
After the after-sales failure occurs, the buyer will input the failure information into the LDP system or send it to the seller by e-mail
after analysis and judgment. The seller shall assign a special person to check the LDP system or email information every day, and complete
the emergency treatment measures for the failure within 5 days after seeing the information, and complete the formulation of follow-up
improvement and preventive measures within 20 days. And timely exchange information with the supplier management personnel of the buyer’s
purchasing department.

 

    4

     

    

 

4.3.2.4
After the buyer publishes fault information in LDP system or email, it will claim for the loss caused by the seller. If the seller has
any objection to the fault reason or claim information, it shall immediately communicate with the buyer’s purchasing department
and submit a written appeal to the buyer’s purchasing department within 20 days after the information is released. Otherwise, it
is deemed that the seller recognizes the decision made by the buyer and the refund is prohibited.

 

4.3.2.5
When the buyer determines that the fault liability lies with the seller, the buyer shall compensate the customer first, and then transmit
the claim information to the seller and make a claim. If other parts are damaged due to the quality of the seller’s products or
property or personal damage is caused to the customers using the seller’s products, the cost of the fault related parts shall also
be borne by the seller.

 

4.3.2.6
The following criteria shall be applied for claims:

 

Claim
amount = material cost + man hour cost + transportation cost + hoisting cost. Among them,

 

Material
cost = purchase price (to factory price, including tariff, freight, etc.).

 

The
standard of man hour fee is 50 yuan / man hour for road machinery and loaders, and 70 yuan / man hour for excavators. The quota standard
refers to the quota standard of the buyer’s compensation service provider;

 

The
transportation fee is fixed, 400 yuan for each order of road machinery and loader, and 500 yuan for each order of excavator; If there
is any change, it shall be implemented according to the buyer’s latest quality claim service fee standard.

 

4.3.2.7
In case of any other property loss or personal injury to the buyer caused by unqualified products, the buyer shall claim for compensation
according to the actual loss.

 

4.3.2.8
Handling of after-sale products with fault: Retreat. both parties agree that the seller of after-sale products with fault in China
will not return the products with fault outside China, nor discount the residual value. If the return is agreed, the Seller shall, after
receiving the buyer’s notice, deliver the invalid parts from the buyer within 15 days, or entrust the buyer to arrange the shipment
on behalf of the seller, and the freight incurred shall be borne by the seller. If the invalid parts are not returned or are not returned
within the time limit, the buyer can handle them by himself.

 

4.4
Other agreements

 

4.4.1
In case of any design change of the products provided by the seller which causes or may cause the change of product performance or interchangeability
of maintenance, the buyer shall be informed in time.

 

4.4.2
In case of major 5m (personnel, equipment plant location, raw and auxiliary materials for production, production process and management)
changes in the seller’s factory, the buyer’s consent shall be obtained in advance. After the change occurs, the written materials
and samples required for quality approval shall be submitted according to the regulations, the records and marks shall be made, and the
batch supply can be carried out only after the buyer’s confirmation and approval.

 

4.4.3
The seller promises to provide products that meet the requirements of reach and other standards in the EU market, and meet the buyer’s
needs of exporting complete machines or accessories to the EU region according to the buyer’s order requirements

 

4.4.4
In order to ensure the traceability of the products provided by the seller, the seller shall mark the permanent traceability mark on
the products.

 

4.4.5
The seller shall operate in accordance with the law and ensure the trade safety with the buyer.

 

    5

     

    

 

4.4.6
The products and raw materials, production process and service provided by the seller shall meet the national, local and industrial laws,
regulations and standards on environmental protection and occupational health and safety. On the premise of ensuring quality, the seller
shall ensure that the production process meets the environmental and occupational health and safety performance and reduce the use of
packaging materials, bear the economic losses of the buyer caused by the production stop or production limit due to the production process
or products not conforming to the current environmental protection and occupational health and safety standards.

 

4.4.7
If the seller needs special qualification certification of the state / industry / organization in production, transportation and other
links according to relevant laws and regulations, it shall show the relevant certification certificate to the buyer to ensure the validity
of the certificate during the performance of this agreement.

 

4.4.8
If the seller fails to fulfill the above quality agreement and fails to improve the product quality for a long time, the buyer has the
right to directly cancel the seller’s supply qualification.

 

5.
Services and accessories

 

5.1
Agreement: the seller shall fully entrust the buyer to carry out fault handling and user service for the products supplied by the seller
after being accepted by the buyer until the end user uses them. Unless the buyer has special requirements or written permission, the
seller shall not provide production site or market service without permission

 

5.2
The seller guarantees that the after-sales service parts meet the quality requirements, and the warranty period of the parts provided
by the seller to the buyer is the same as that of the assembly parts, except for the wearing parts such as seals.

 

5.3
The seller shall provide the buyer with the list of accessories of the products provided before supplying the buyer in bulk. The seller
promises to provide the products with sufficient spare parts supply within the service life of the whole machine (not less than 10 years)
and to provide services for the buyer’s customers when necessary.

 

The
seller shall reserve spare parts in advance according to the vulnerable condition of spare parts. If the seller fails to provide the
parts list or cannot provide the parts, the buyer can replace the assembly during the warranty period, and the seller shall bear the
cost.

 

5.4
For the products or accessories supplied by the seller to the buyer, without the written consent of the buyer, the seller shall not carry
out accessories business outside Shandong Lingong accessories company. In case of the above-mentioned breach of contract, the seller
shall pay the buyer liquidated damages (the specific amount shall refer to the proportion of 500% of the sales in breach of contract,
with a minimum of 3000 yuan), and the buyer has the right to adjust the supply proportion until the supply qualification is cancelled

 

5.5
If the products supplied by the seller have secondary (or below) accessories, the total price of secondary (or below) accessories belonging
to the same assembly shall not exceed the assembly price.

 

5.6
Packaging, delivery, transportation, inspection, settlement, claim and liability for breach of contract related to the supply of accessories
shall refer to the relevant provisions of this agreement on product assembly.

 

5.7
If both parties sign the “spare parts agreement” separately, it shall be implemented according to the “spare parts
agreement”.

 

    6

     

    

 

6.
Confidentiality agreement

 

In
order to ensure the cooperation between the buyer and the seller, both parties decide to exchange certain information and materials.
Both parties must keep these materials confidential and shall not spread, transfer or disclose the other party confidential materials
to the outside world. Otherwise, the observant party has the right to investigate the corresponding legal liabilities of the breaching
party” “Confidential information” refers to all information disclosed by one party to the other party for the purpose
mentioned in the above background, including but not limited to technical, commercial, financial, legal and institutional information
provided in any way, including but not limited to oral information, written information, electronic. Electronic data provided on disk
or in the form of all components / Models / equipment of this agreement. The Seller shall not use the technical data, drawings and other
documents provided by the buyer to produce the products, the products jointly designed by both parties and the products designed and
produced by the client to provide to any other third party or sell them in the form of spare parts; Otherwise, the buyer will cancel
the seller’s supply qualification and terminate the sales contract at any time. At the same time, the seller shall compensate the
buyer for more than five times of the buyer’s loss. If the circumstances are serious, the case will be investigated for legal responsibility
by judicial organs.

 

7.
Supervision

 

In
the process of both parties; performance of the agreement, the buyer will take serious actions against the buyer’s internal departments
or personnel who violate the laws, rules and regulations and have acts detrimental to the interests of both parties; At the same time,
sellers and any third party are welcome to report and complain in time.

 

The
report telephone number of the buyer is 0539-8785615 / 8785675; At the same time, a report mailbox is set up, and the report mailbox
is specially encrypted. It can only be opened by three company leaders of the buyer entering the password at the same time on a regular
basis. The email address is: jubao@sdlg.com.cn。Suggestions & Complaints Box; Supervision Office of Shandong Lingong Construction
Machinery Co., Ltd., Linyi Economic and Technological Development Zone, Shandong Province.

 

8.
Prohibition of illegal acts

 

8.1
Based on the signing of this agreement and the supervision provisions of this agreement, the buyer and the seller clearly know that (the
buyer) forbids the staff of the buyer to seek private interests before, during and after the performance of the contract

 

8.2
During the performance period of this agreement, if the buyer has evidence to show or think that the seller and its staff have obtained
direct or indirect economic benefits from the buyer or caused direct or indirect economic losses to the buyer through bribery, kickback
and other acts, the seller and its staff have the obligation to explain to the buyer and cooperate with the buyer in the investigation.
The seller shall compensate the buyer for the loss caused by this, and the buyer has the right to deduct it directly from the corresponding
payment obligation to the seller.

 

9.
Supplementary Provisions

 

9.1
This agreement is made in quadruplicate and shall come into force after being signed and sealed by both parties. This Master Agreement
shall be valid for a long time if there is no change. This agreement shall be terminated in case of the following circumstances during
the performance period:

 

9.1.1
Either party proposes to terminate this agreement in writing or by e-mail three months in advance

 

9.1.2
A new sale and purchase agreement was signed.

 

    7

     

    

 

9.2
Any dispute arising from the performance of this agreement shall be settled by both parties through negotiation. If the negotiation fails,
it shall be decided by the people court of the place where the buyer is located.

 

9.3
Any change to the relevant provisions of this agreement shall be confirmed by both parties with their signatures or seals at the modification
place.

 

9.4
During the performance of this agreement, if some terms need to be changed, they shall be confirmed by both parties in writing or by
e-mail after consultation, which shall be regarded as a supplement to this agreement and have the same legal effect as this agreement.

 

	Seller
(seal): SEAL

    Shandong
Hongli Special Section Tube Co., Ltd
	 	Buyer
(seal): SEAL

    Shandong
Lingong Construction Machinery Co., Ltd

	 	 	 
	Agent (signature): 	 /s/ Peng Han	 	Agent (signature):	  /s/ 
	 	 	 
	Date:
    May 9, 2020	 	Date:
    May 17, 2020

 

    8

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