Document:

Exhibit 10.2

 

INDEMNIFICATION AGREEMENT

 

This
Indemnification Agreement (this “Agreement”) is entered into as of
                     
by and between Universe Pharmaceuticals INC, a Cayman Islands company (the “Company”), and the
undersigned, a director and/or an officer of the Company (“Indemnitee”), as applicable.

 

RECITALS

 

The Board
of Directors of the Company (the “Board of Directors”) has determined that the inability to attract and retain
highly competent persons to serve the Company is detrimental to the best interests of the Company and its shareholders and that
it is reasonable and necessary for the Company to provide adequate protection to such persons against risks of claims and actions
against them arising out of their services to the corporation.

 

AGREEMENT

 

In consideration
of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

 

A. DEFINITIONS

 

The following terms shall have the meanings defined
below:

 

Expenses
shall include, without limitation, damages, judgments, fines, penalties, settlements and costs, attorneys’ fees and disbursements
and costs of attachment or similar bond, investigations, and any other expenses paid or incurred in connection with investigating,
defending, being a witness in, participating in (including on appeal), or preparing for any of the foregoing in, any Proceeding.

 

Indemnifiable
Event means any event or occurrence that takes place either before or after the execution of this Agreement, related to
the fact that Indemnitee is or was a director or an officer of the Company, or is or was serving at the request of the Company
as a director or officer of another corporation, partnership, joint venture or other entity, or related to anything done or not
done by Indemnitee in any such capacity, including, but not limited to neglect, breach of duty, error, misstatement, misleading
statement or omission.

 

Participant means
a person who is a party to, or witness or participant (including on appeal) in, a Proceeding.

 

Proceeding
means any threatened, pending, or completed action, suit, arbitration or proceeding, or any inquiry, hearing or investigation,
whether civil, criminal, administrative, investigative or other, including appeal, in which Indemnitee may be or may have been
involved as a party or otherwise by reason of an Indemnifiable Event.

 

B. AGREEMENT TO INDEMNIFY

 

1. General
Agreement. In the event Indemnitee was, is, or becomes a Participant in, or is threatened to be made a Participant in, a Proceeding,
the Company shall indemnify the Indemnitee from and against any and all Expenses which Indemnitee incurs or becomes obligated to
incur in connection with such Proceeding, to the fullest extent permitted by applicable law.

 

2. Indemnification
of Expenses of Successful Party. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee has been
successful on the merits in defense of any Proceeding or in defense of any claim, issue or matter in such Proceeding, the Company
shall indemnify Indemnitee against all Expenses incurred in connection with such Proceeding or such claim, issue or matter, as
the case may be.

 

3. Partial
Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for a portion
of Expenses, but not for the total amount of Expenses, the Company shall indemnify the Indemnitee for the portion of such Expenses
to which Indemnitee is entitled.

 

4. No
Employment Rights. Nothing in this Agreement is intended to create in Indemnitee any right to continued employment with the
Company.

 

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5. Contribution.
If the indemnification provided in this Agreement is unavailable and may not be paid to Indemnitee for any reason other than those
set forth in Section B.4, then the Company shall contribute to the amount of Expenses paid in settlement actually and reasonably
incurred and paid or payable by Indemnitee in such proportion as is appropriate to reflect (i) the relative benefits received by
the Company on the one hand and by the Indemnitee on the other hand from the transaction or events from which such Proceeding arose,
and (ii) the relative fault of the Company on the one hand and of the Indemnitee on the other hand in connection with the events
which resulted in such Expenses, as well as any other relevant equitable considerations. The relative fault of the Company on the
one hand and of the Indemnitee on the other hand shall be determined by reference to, among other things, the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such Expenses, judgments,
fines or settlement amounts. The Company agrees that it would not be just and equitable if contribution pursuant to this Section
B.6 were determined by pro rata allocation or any other method of allocation which does not take account of the foregoing equitable
considerations.

 

C. INDEMNIFICATION PROCESS

 

1. Notice
and Cooperation by Indemnitee. Indemnitee shall, as a condition precedent to his/her right to be indemnified under this Agreement,
give the Company notice in writing as soon as practicable of any claim made against Indemnitee for which indemnification will or
could be sought under this Agreement, provided that the delay of Indemnitee to give notice hereunder shall not prejudice any of
Indemnitee’s rights hereunder, unless such delay results in the Company’s forfeiture of substantive rights or defenses.
Notice to the Company shall be given in accordance with Section F.7 below. If, at the time of receipt of such notice, the Company
has directors’ and officers’ liability insurance policies in effect, the Company shall give prompt notice to its insurers
of the Proceeding relating to the notice. The Company shall thereafter take all necessary and desirable action to cause such insurers
to pay, on behalf of Indemnitee, all Expenses payable as a result of such Proceeding. In addition, Indemnitee shall give the Company
such information and cooperation as the Company may reasonably request.

 

2. Indemnification Payment.

 

(a) Advancement
of Expenses. Indemnitee may submit a written request with reasonable particulars to the Company requesting that the Company
advance to Indemnitee all Expenses that may be reasonably incurred in advance by Indemnitee in connection with a Proceeding. The
Company shall, within 10 business days of receiving such a written request by Indemnitee, advance all requested Expenses to Indemnitee.
Any excess of the advanced Expenses over the actual Expenses will be repaid to the Company.

 

(b) Reimbursement
of Expenses. To the extent Indemnitee has not requested any advanced payment of Expenses from the Company, Indemnitee shall
be entitled to receive reimbursement for the Expenses incurred in connection with a Proceeding from the Company immediately after
Indemnitee makes a written request to the Company for reimbursement unless the Company refers the indemnification request to the
Reviewing Party in compliance with Section C.2(c) below.

 

(c) Determination
by the Reviewing Party. If the Company reasonably believes that it is not obligated under this Agreement to indemnify the Indemnitee,
the Company shall, within 10 days after the Indemnitee’s written request for an advancement or reimbursement of Expenses,
notify the Indemnitee that the request for advancement of Expenses or reimbursement of Expenses will be submitted to the Reviewing
Party (as hereinafter defined). The Reviewing Party shall make a determination on the request within 30 days after the Indemnitee’s
written request for an advancement or reimbursement of Expenses. Notwithstanding anything foregoing to the contrary, in the event
the Reviewing Party informs the Company that Indemnitee is not entitled to indemnification in connection with a Proceeding under
this Agreement or applicable law, the Company shall be entitled to be reimbursed by Indemnitee for all the Expenses previously
advanced or otherwise paid to Indemnitee in connection with such Proceeding; provided, however, that Indemnitee may
bring a suit to enforce his/her indemnification right in accordance with Section C.3 below.

 

3. Suit
to Enforce Rights. Regardless of any action by the Reviewing Party, if Indemnitee has not received full indemnification within
30 days after making a written demand in accordance with Section C.2 above or 50 days if the Company submits a request for advancement
or reimbursement to the Reviewing Party under Section C.2(c) above, Indemnitee shall have the right to enforce its indemnification
rights under this Agreement by commencing litigation in any court of competent jurisdiction seeking a determination by the court
or challenging any determination by the Reviewing Party or any aspect of this Agreement. Any determination by the Reviewing Party
not challenged by Indemnitee and any judgment entered by the court shall be binding on the Company and Indemnitee.

 

4. Assumption
of Defense. In the event the Company is obligated under this Agreement to advance or bear any Expenses for any Proceeding against
Indemnitee, the Company shall be entitled to assume the defense of such Proceeding, with counsel approved by Indemnitee, upon delivery
to Indemnitee of written notice of its election to do so. After delivery of such notice, approval of such counsel by Indemnitee
and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees
of counsel subsequently incurred by Indemnitee with respect to the same Proceeding, unless (i) the employment of counsel by Indemnitee
has been previously authorized by the Company, (ii) Indemnitee shall have reasonably concluded, based on written advice of counsel,
that there may be a conflict of interest of such counsel retained by the Company between the Company and Indemnitee in the conduct
of any such defense, or (iii) the Company ceases or terminates the employment of such counsel with respect to the defense of such
Proceeding, in any of which events the fees and expenses of Indemnitee’s counsel shall be at the expense of the Company.
At all times, Indemnitee shall have the right to employ counsel in any Proceeding at Indemnitee’s expense.

 

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5. Defense
to Indemnification, Burden of Proof and Presumptions. It shall be a defense to any action brought by Indemnitee against the
Company to enforce this Agreement that it is not permissible under this Agreement or applicable law for the Company to indemnify
the Indemnitee for the amount claimed. In connection with any such action or any determination by the Reviewing Party or otherwise
as to whether Indemnitee is entitled to be indemnified under this Agreement, the burden of proving such a defense or determination
shall be on the Company.

 

6. No
Settlement without Consent. Neither party to this Agreement shall settle any Proceeding in any manner that would impose any
damage, loss, penalty or limitation on Indemnitee without the other party’s written consent. Neither the Company nor Indemnitee
shall unreasonably withhold its consent to any proposed settlement.

 

7. Company
Participation. Subject to Section B.5, the Company shall not be liable to indemnify the Indemnitee under this Agreement with
regard to any judicial action if the Company was not given a reasonable and timely opportunity, at its expense, to participate
in the defense, conduct and/or settlement of such action.

 

8. Reviewing Party.

 

(a) For
purposes of this Agreement, the Reviewing Party with respect to each indemnification request of Indemnitee that is referred by
the Company pursuant to Section C.2(c) above shall be (A) the Board of Directors by a majority vote of a quorum consisting of Disinterested
Directors (as hereinafter defined), or (B) if a quorum of the Board of Directors consisting of Disinterested Directors is not obtainable
or, even if obtainable, said Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board of Directors,
a copy of which shall be delivered to Indemnitee. If the Reviewing Party determines that Indemnitee is entitled to indemnification,
payment to Indemnitee shall be made within 10 days after such determination. Indemnitee shall cooperate with the person, persons
or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such
person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise
protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any Independent
Counsel or member of the Board of Directors shall act reasonably and in good faith in making a determination under this Agreement
of the Indemnitee’s entitlement to indemnification. Any reasonable costs or expenses (including reasonable attorneys’
fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall
be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company
hereby indemnifies and agrees to hold Indemnitee harmless therefrom. “Disinterested Director” means a director
of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

 

(b) If
the determination of entitlement to indemnification is to be made by Independent Counsel, the Independent Counsel shall be selected
as provided in this Section C.8(b). The Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that
such selection be made by the Board of Directors, in which event the proceeding sentence shall apply), and Indemnitee shall give
written notice to the Company advising it of the identity of the Independent Counsel so selected. In either event, Indemnitee or
the Company, as the case may be, may, within 10 days after such written notice of selection shall have been given, deliver to the
Company or to Indemnitee, as the case may be, a written objection to such selection; provided, however, that such
objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent
Counsel” as defined in Section C.8(d) of this Agreement, and the objection shall set forth with particularity the factual
basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If a written
objection is made and substantiated, the Independent Counsel selected may not serve as Independent Counsel unless and until such
objection is withdrawn or a court has determined that such objection is without merit. If, within 20 days after submission by Indemnitee
of a written request for indemnification, no Independent Counsel shall have been selected and not objected to, either the Company
or Indemnitee may petition a court of competent jurisdiction for resolution of any objection which shall have been made by the
Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of
a person selected by the court or by such other person as the court shall designate, and the person with respect to whom all objections
are so resolved or the person so appointed shall act as Independent Counsel. The Company shall pay any and all reasonable fees
and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting under this Agreement, and the
Company shall pay all reasonable fees and expenses incident to the procedures of this Section C.8(b), regardless of the manner
in which such Independent Counsel was selected or appointed.

 

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(c) In
making a determination with respect to entitlement to indemnification hereunder, the Reviewing Party shall presume that Indemnitee
is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with
this Agreement, and the Company shall have the burden of proof to overcome that presumption in connection with the making by any
person, persons or entity of any determination contrary to that presumption. The termination of any Proceeding or of any claim,
issue or matter therein, by judgment, order, settlement (with or without court approval), conviction, or upon a plea of nolocontendere
or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of
Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he/she reasonably
believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee
had reasonable cause to believe that his/her conduct was unlawful. For purposes of any determination of good faith, Indemnitee
shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the Company
and any other corporation, partnership, joint venture or other entity of which Indemnitee is or was serving at the written request
of the Company as a director, officer, employee, agent or fiduciary, including financial statements, or on information supplied
to Indemnitee by the officers and directors of the Company or such other corporation, partnership, joint venture or other entity
in the course of their duties, or on the advice of legal counsel for the Company or such other corporation, partnership, joint
venture or other entity or on information or records given or reports made to the Company or such other corporation, partnership,
joint venture or other entity by an independent certified public accountant or by an appraiser or other expert selected with reasonable
care by the Company or such other corporation, partnership, joint venture or other entity. In addition, the knowledge and/or actions,
or failure to act, of any director, officer, agent or employee of the Company or such other corporation, partnership, joint venture
or other entity shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.
The provisions of this Section C.8(c) shall not be deemed to be exclusive or to limit in any way the other circumstances in which
the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.

 

(d) “Independent
Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently
is, nor in the past five years has been, retained to represent (i) the Company or Indemnitee in any matter material to either such
party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar
indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding
the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional
conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement. The Company agrees to pay the reasonable fees of the Independent Counsel referred
to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating
to this Agreement or its engagement pursuant hereto.

 

D. DIRECTOR AND OFFICER LIABILITY INSURANCE

 

1. Good
Faith Determination. The Company shall from time to time make the good faith determination whether or not it is practicable
for the Company to obtain and maintain a policy or policies of insurance with reputable insurance companies providing the officers
and directors of the Company with coverage for losses incurred in connection with their services to the Company or to ensure the
Company’s performance of its indemnification obligations under this Agreement.

 

2. Coverage
of Indemnitee. To the extent the Company maintains an insurance policy or policies providing directors’ and officers’
liability insurance, Indemnitee shall be covered by such policy or policies, in accordance with its or their terms, to the maximum
extent of the coverage available for any of the Company’s directors or officers.

 

3. No
Obligation. Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain any director and officer
insurance policy if the Company determines in good faith that such insurance is not reasonably available in the case that (i) premium
costs for such insurance are disproportionate to the amount of coverage provided, or (ii) the coverage provided by such insurance
is limited by exclusions so as to provide an insufficient benefit.

 

E. NON-EXCLUSIVITY; U.S. FEDERAL PREEMPTION; TERM

 

1. Non-Exclusivity.
The indemnification provided by this Agreement shall not be deemed exclusive of any rights to which Indemnitee may be entitled
under the Company’s current memorandum and articles of association, as may be amended from time to time, applicable law or
any written agreement between Indemnitee and the Company (including its subsidiaries and affiliates). The indemnification provided
under this Agreement shall continue to be available to Indemnitee for any action taken or not taken while serving in an indemnified
capacity even though he/she may have ceased to serve in any such capacity at the time of any Proceeding.

 

2. U.S.
Federal Preemption. Notwithstanding the foregoing, both the Company and Indemnitee acknowledge that in certain instances, U.S.
federal law or public policy may override applicable law and prohibit the Company from indemnifying its directors and officers
under this Agreement or otherwise. Such instances include, but are not limited to, the U.S. Securities and Exchange Commission
(the “SEC”)’s prohibition on indemnification for liabilities arising under certain U.S. federal securities
laws. Indemnitee understands and acknowledges that the Company has undertaken or may be required in the future to undertake with
the SEC to submit the question of indemnification to a court in certain circumstances for a determination of the Company’s
right under public policy to indemnify Indemnitee.

 

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3. Duration
of Agreement. All agreements and obligations of the Company contained herein shall continue during the period Indemnitee is
an officer and/or a director of the Company (or is or was serving at the request of the Company as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust or other enterprise) and shall continue thereafter so long as
Indemnitee shall be subject to any Proceeding by reason of his/her former or current capacity at the Company, whether or not he/she
is acting or serving in any such capacity at the time any Expense is incurred for which indemnification can be provided under this
Agreement. This Agreement shall continue in effect regardless of whether Indemnitee continues to serve as an officer and/or a director
of the Company or any other enterprise at the Company’s request.

 

F. MISCELLANEOUS

 

1. Amendment
of this Agreement. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing
by the parties hereto. No waiver of any of the provisions of this Agreement shall operate as a waiver of any other provisions (whether
or not similar), nor shall such waiver constitute a continuing waiver. Except as specifically provided in this Agreement, no failure
to exercise or any delay in exercising any right or remedy shall constitute a waiver.

 

2. Subrogation.
In the event of payment to Indemnitee by the Company under this Agreement, the Company shall be subrogated to the extent of such
payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may
be necessary to secure such rights, including the execution of such documents necessary to enable the Company to bring suit to
enforce such rights.

 

3. Assignment;
Binding Effect. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either party hereto
without the prior written consent of the other party; except that the Company may, without such consent, assign all such rights
and obligations to a successor in interest to the Company which assumes all obligations of the Company under this Agreement. Notwithstanding
the foregoing, this Agreement shall be binding upon and inure to the benefit of and be enforceable by and against the parties hereto
and the Company’s successors (including any direct or indirect successor by purchase, merger, consolidation, or otherwise
to all or substantially all of the business and/or assets of the Company) and assigns, as well as Indemnitee’s spouses, heirs,
and personal and legal representatives.

 

4. Severability
and Construction. Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do or
fail to do any act in violation of applicable law. The Company’s inability, pursuant to a court order, to perform its obligations
under this Agreement shall not constitute a breach of this Agreement. In addition, if any portion of this Agreement shall be held
by a court of competent jurisdiction to be invalid, void, or otherwise unenforceable, the remaining provisions shall remain enforceable
to the fullest extent permitted by applicable law. The parties hereto acknowledge that they each have opportunities to have their
respective counsels review this Agreement. Accordingly, this Agreement shall be deemed to be the product of both of the parties
hereto, and no ambiguity shall be construed in favor of or against either of the parties hereto.

 

5. Counterparts.
This Agreement may be executed in two counterparts, both of which taken together shall constitute one instrument.

 

6. Governing
Law. This agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall
be governed, construed and interpreted in accordance with the laws of the State of New York, without giving effect to conflicts
of law provisions thereof.

 

7. Notices.
All notices, demands, and other communications required or permitted under this Agreement shall be made in writing and shall be
deemed to have been duly given if delivered by hand, against receipt, or mailed via postage prepaid, certified or registered mail,
return receipt requested, and addressed to the Company at:

 

Universe Pharmaceuticals INC

 

Attention: Chief Executive Officer

 

and to Indemnitee at his/her address
last known to the Company.

 

8. Entire
Agreement. This Agreement constitutes the entire agreement and supersedes all prior agreements and understandings, both written
and oral, between the parties with respect to the subject matter hereof.

 

(Signature page follows)

 

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IN WITNESS WHEREOF, the parties hereto execute this
Agreement as of the date first written above.

 

	Universe Pharmaceuticals INC	 
	 	           	 
	By: 	 	 
	Name: 	 
	Title:	 

 

	Indemnitee	 
	 	 	 
	Signature:  	 	 
	Name:	 

 

[Signature Page to Indemnification Agreement]

 

 

6Exhibit 10.3

 

029

 

[2019] L.L.N.S.H.L.J.Z.
No. 172292019062610030001

 

Working Capital Loan Contract

 

	Borrower	Jiangxi Universe Pharmaceuticals Co., Ltd.
	 	 
	Credit Rating 	 
	 	 
	Lender	Jiangxi Luling Rural Commercial Bank Co., Ltd.

 

		Jiangxi Rural Commercial Bank

 

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Special Notice:
This Contract is entered into by and between the Borrower and the Lender through negotiation on the basis of equality and free
will. All the terms and conditions hereof represent the true intention of both parties. In order to protect the legitimate rights
and interests of Borrower, the Lender hereby requests the Borrower to give full attention to all provisions concerning the rights
and obligations of the parties, especially those shown in bold.

 

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030

Working Capital Loan Contract

 

[2019] L.L.N.S.H.L.J.Z.
No. 172292019062610030001

 

Borrower: Jiangxi Universe Pharmaceuticals
Co., Ltd.                                                                      

Business License No.: 913608217670218430                                                                                     

Legal Representative / Person in Charge:
LAI Gang                                                                           

Business Address: Jingjiu Avenue,
Jinggangshan Economic and Technological Development Zone

Mailing Address: The same as above                                                                                                   

Postal Code: 343100                                             Tel.:
13970661293                                                 

Electronic Contact Information:                                                                                                           

 

Lender: Jiangxi Luling Rural
Commercial Bank Co., Ltd.                                                                 

Legal Representative / Person in Charge:
PENG Yue                                                                         

Business Address: No. 205 Fuchuan
Road, Ji’an County                                                                  

Postal Code: 343100                                                                                                                            

Tel.: 8435534                                                             
Fax:                                                                  

 

Pursuant to the laws
and regulations of the People's Republic of China and other relevant regulations, the Borrower and the Lender, on the basis of
equality through negotiations, have reached an agreement with respect to the matter that the Lender grants a working capital loan
to the Borrower, and hereby execute this Contract.

 

Chapter 1 Execution Provisions

 

Article 1
Loan Amount

 

Loan Amount (in words):
CNY Ten Million                               .

(In Figures)
CNY 10,000,000.00                        .

 

The loan amount under
this Contract is: ☐ revolving borrowing limit ☑  non-revolving loan amount.

 

Article 2
Loan Term

 

The valid loan term
under this Contract shall be: 12 months from June 26, 2019 to June 25, 2020.

 

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☐ In the event
that the loan amount hereunder is a revolving borrowing limit, the term of borrowing limit shall be the same as the valid loan
term as agreed herein. The term of each loan shall be subject to the term recorded in the loan note.

 

☑  In the event
that the loan amount hereunder is a non-revolving borrowing limit, the loan term shall be the same as the valid loan term as agreed
herein. The specific loan term shall be subject to the term recorded in the loan note.

 

Article 3
Loan Purpose

 

The loan borrowed hereunder
shall be used for turnover of working capital                       .

 

Without the written
consent of the Lender, the Borrower may neither change the loan purpose nor use the loan for any other purposes. The Lender shall
have the right to supervise the Borrower's use of the loan.

 

Article 4 Loan
Interest Rate, Interest Calculation and Settlement

 

1. Loan Interest Rate

 

The method as described
in following Item (2) shall apply for the determination of loan interest rate:

 

(1) Fixed Interest Rate.
In other words, the annual interest rate shall be ____%. The interest rate shall remain unchanged during the term of this Contract.

 

(2) Floating Interest
Rate. The loan interest rate shall be determined by the benchmark interest rate plus the floating range. The benchmark interest
rate shall be the benchmark loan interest rate of the People's Bank of China on withdrawal date corresponding to the loan term
stipulated in Article 2. The floating range shall be 30% (☑
higher than / ☐ lower than / ☐
the same to) the benchmark loan interest rate (only select one), and the floating range shall remain unchanged during the term
of this Contract. In case of any adjustment to the benchmark loan interest rate and the loan interest rate determination method
made by the People's Bank of China, the manner as described in the following Item 2
shall apply and the Lender will not give a further notice to the Borrower:

 

1
From January 1 of the next year, the loan interest rate shall be adjusted, on the basis of the benchmark loan interest rate over
the new same period, in accordance with the floating ratio agreed herein;

 

2
From the effective date of the interest rate adjustment by the People's Bank of China, the loan interest rate shall be adjusted,
on the basis of the new benchmark loan interest rate, in accordance with the floating ratio agreed herein;

 

3
With respect to a disbursed loan, in case of any adjustment to the interest rate made by the state, the loan interest rate
shall not be adjusted.

 

(3) The loan interest
rate shall be determined by other methods:

___________________________________________________.

 

2. Interest Settlement
Method

 

The Borrower will settle
the interest in a method as described in following Item (2):

 

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031

 

(1) Quarterly Interest
Settlement. The 20th day of the last month of each quarter shall be the interest settlement date, and the 21st day shall be the
interest payment date.

 

(2) Monthly Interest
Settlement. The 20th day of each month shall be the interest settlement date, and the 21st day shall be the interest payment date.

 

(3) The interest shall
be settled by other methods: _______________________________.

 

In the event that the
repayment date of the last installment of loan principal is not the interest payment date, such repayment date of the last installment
of loan principal shall be the interest payment date on which the Borrower shall pay off all the interests payable.

 

3. Penalty Interest
Rate

 

(1) In the event that
the Borrower fails to repay the loan within the agreed time limit, interest shall be calculated and charged over the overdue part
at the penalty interest rate for overdue loan from the overdue day, until the principal and interest are paid off;

 

(2) In the event that
the Borrower uses the loan for any purposes other than those agreed herein, interest shall be calculated and charged over the misappropriated
part at the penalty interest rate for misappropriated loan from the misappropriation date, until the principal and interest are
paid off;

 

(3) In the event that
the loan is overdue and misappropriated, interest shall be calculated and charged at the penalty interest rate for misappropriated
loan;

 

(4) With respect to
the interest and penalty interest that the Borrower fails to pay as scheduled, compound interest shall be calculated and charged
at the penalty interest rate agreed in this paragraph in the interest settlement method as agreed in Paragraph 2 hereof;

 

(5) In case of any adjustment
to the loan interest rate agreed herein, the penalty interest and compound interest shall be calculated at the adjusted interest
rate from the adjustment date;

 

(6) Penalty Interest
Rate

 

The penalty interest
rate for overdue loan shall be 50% higher than the loan interest rate agreed in Paragraph 1 hereof; the penalty interest
rate for misappropriated loan shall be 100% higher than the loan interest rate agreed in Paragraph 1 hereof.

 

Article 5
Loan Amount Payment Method

 

Loan Disbursement and
Repayment Account: the Borrower shall open an account as follows with the Lender as the loan disbursement and repayment account,
which shall be used for loan disbursement, payment and repayment.

 

Account-holding Bank:
                                              

 

Account Name:                                            

 

Account Number:                                                                        

 

Article 6
Repayment

 

Unless otherwise agreed
by the parties, the Borrower shall repay the loan hereunder in accordance with the repayment schedule as set forth in Item 1
below:

 

1. Repay the loan hereunder
in full upon the expiration of the loan term.

 

2. Repay the loan hereunder
in accordance with the following repayment schedule:

 

    5

     

    

 

	Repayment Time	 	Repayment Amount
	1.	 	 
	2.	 	 
	3.	 	 
	4.	 	 
	5.	 	 
	6.	 	 
	7.	 	 
	8.	 	 
	9.	 	 
	Total	 	 

 

 

3. Other Repayment Schedule:
____________________________________.

 

4. Where the
Borrower makes repayment in advance, it shall obtain the consent from the Lender ____ banking days in advance; where the
Lender agrees that the Borrower makes repayment in advance, the Lender shall be entitled to charge liquidated damages
equivalent to ____ (☐ ____% of prepayment amount ☐ one month interest of remaining principal ☐ ____% of
remaining principal), in addition to the interest calculated and charged at the interest rate agreed herein for the actual
loan term.

 

Article 7
Guarantee

 

The loan hereunder
shall be a guaranteed (credit/guaranteed) loan. The guarantee type shall be guarantee (guarantee/mortgage/pledge),
and the guarantee contract shall be executed separately.

 

Article 8
Contract Agreements on the Borrower's Financial Indicators:

 

1. _____________________________________________________

 

2. _____________________________________________________

 

3. _____________________________________________________

 

Article 9
Applicable Law and Dispute Resolution

 

1. This Contract shall
be governed by the laws of the People's Republic of China.

 

2. After this Contract
takes effect, any dispute arising from the execution or performance hereof or in connection with this Contract shall be settled
by both parties through negotiation. If such negotiation fails, either party may file a lawsuit with the People's Court having
jurisdiction over the place of the Lender in accordance with the law.

 

3. During the dispute
resolution, in the event that the dispute does not affect the performance of the remaining provisions of this Contract, such remaining
provisions shall continue to be performed.

 

    6

     

    

 

032

 

4. After negotiation
between the parties, the parties may conduct notarization for the compulsory enforcement of this Contract. The Borrower agrees
that this Contract shall have the compulsory enforcement effect after it is notarized. In the event that the Borrower fails to
perform its obligations under this Contract, the Lender may apply to the People's Court having jurisdiction for compulsory enforcement
according to law.

 

Article 10
Effectiveness of the Contract

 

This Contract shall
take effect from the date when the legal representatives (persons in charge) or authorized agents of the Borrower and the Lender
respectively affix their signatures or seals and the corporate seals hereto.

 

This Contract is made
out in duplicate, with the Borrower and the Lender holding one counterpart
each. Each counterpart shall have the same legal effect.

 

Article 11
Other Agreements

 

________________________________________________________________________

 

________________________________________________________________________

 

________________________________________________________________________.

 

Chapter 2
Standard Provisions

 

Article 12
Interest Calculation

 

The interest shall be
calculated from the Borrower's actual withdrawal date and shall be calculated according to the actual withdrawal amount and use
days of loan.

 

Interest Formula: Interest
= Principal × Actual Days × Daily Interest Rate.

 

The daily interest rate
is calculated on a base of 360 days a year. Conversion Formula: Daily Interest Rate = Annual Interest Rate / 360.

 

Article 13
Withdrawal Conditions

 

1. The Borrower
must meet the following conditions for withdrawal, otherwise the Lender shall have no obligation to disburse any loan to the Borrower,
unless the Lender agrees to disburse the loan in advance:

 

(1) The Contract and
its appendixes have become effective;

 

(2) The Borrower has
reserved to the Lender the Borrower's documents, receipts, seals, lists of persons and specimen signatures in relation to the execution
and performance of this Contract and filled in the relevant vouchers;

 

(3) The Borrower has,
according to the Lender's requirements, opened an account necessary for the performance of this Contract;

 

(4) The Borrower, within
3 banking days prior to the withdrawal, has submitted to the Lender the written withdrawal notice and the relevant supporting documents
for loan purpose which is consistent with the purpose as agreed herein, and has completed the relevant withdrawal procedures;

 

(5) The Borrower has
submitted to the Lender the resolution and letter of authorization of the board of directors or other competent authorities, which
agree to the execution and performance of this Contract;

 

(6) In accordance with
relevant regulatory provisions and management requirements of the Lender, if the loan exceeds a certain amount or meets other conditions,
the Lender shall, according to the Borrower's withdrawal application and payment authorization, pay the loan to the payment object
conforming to the purpose agreed herein in a manner of authorized payment by the Lender;

 

    7

     

    

 

(7) In addition to the
credit loan, the Borrower has provided the corresponding guarantee as required by the Lender and has completed the relevant guarantee
procedures, and the guarantee is legal and valid;

 

(8) The Borrower has
not breached this Contract or any other contracts executed by and between the Borrower and the Lender;

 

2. In the event that
the Borrower fails to make any withdrawal for 3 consecutive months from the contract execution date, the Lender shall be entitled
to cancel the borrowing limit.

 

Article 14
Special Arrangements on Revolving Loan

 

1. During the term of
revolving borrowing limit, the sum of the loan principal balance of at any time shall not exceed the revolving borrowing limit;
the repayment date of any withdrawal shall not exceed the term of revolving borrowing limit.

 

2. The Lender shall
reasonably set the amount and term of each revolving loan according to the scale and cycle of the Borrower's production and operation.

 

Article 15
Loan Amount Payment

 

1. The authorized payment
by the Lender means that the Lender pays the loan fund to the Borrower's counterparty in a transaction conforming to the purpose
agreed herein according to the Borrower’s withdrawal notice and payment authorization.

 

Payment of the Borrower’s
loan fund for which the amount of a single payment under this Contract exceeds the specified amount shall be made in a manner of
authorized payment by the Lender.

 

In the event of the
authorized payment by the Lender, the Borrower shall make express payment authorization and provide other necessary payment information
(including name of counterparty who receives payment, account number of such counterparty, and amount of payment) in the withdrawal
notice, and submit to the Lender the supporting documents for loan purpose such as business contracts required for the examination.
In this case, the Lender shall pay the loan fund to the counterparty of the Borrower via the Borrower’s account upon examination
and approval. In the event of the Lender’s failure to perform its obligation to pay upon authorization resulting from untruthfulness,
incorrectness, and incompleteness of the information of payment authorization and relevant transactions furnished by the Borrower,
the Lender shall not be held liable for such failure whatsoever and the Borrower’s obligation to repay under the Contract
shall not be affected. The Lender will make payment to the account of the Borrower’s counterparty in accordance with the
Borrower's withdrawal notice and the payment certificate as required by the Lender.

 

In the event that the
Lender, upon examination, discovers that the supporting documents for loan purpose such as business contracts furnished by the
Borrower fail to comply with the Contract or there is any other defects, the Lender shall be entitled to request the Borrower to
supplement, replace, explain or re-furnish such documents, and the Lender may suspend granting or paying of such loans until the
Borrower has furnished the supporting documents such as business contracts to the satisfaction of the Lender.

 

    8

     

    

 

033

 

In the event that the
account-holding bank of the counterparty returns such payments, resulting in the Lender’s failure to transfer such loans
to the Borrower’s counterparty as authorized by the Borrower in a timely manner, the Lender shall not be liable for such
failure whatsoever and the Borrower’s obligation to repay under the Contract shall not be affected. With respect to the funds
returned by the account-holding bank of the counterparty, the Borrower shall re-furnish the payment authorization and the supporting
documents for loan purpose such as business contracts required for the examination, and the Lender shall pay the loan fund to the
counterparty of the Borrower via the Borrower’s account upon examination and approval.

 

All the expenses incurred
by the payment of loan to the counterparty designated by the Borrower in a manner of authorized payment under this Contract shall
be borne by the Borrower. The Borrower shall pay the above expenses to the Lender at the time of the authorized payment of each
loan.

 

The Borrower shall not
violate the above provisions to dodge the authorized payment by the Lender by way of breaking up a large amount into several small
amounts.

 

2. Except for the cases
where the authorized payment by the Lender must be adopted as stipulated in the preceding paragraph, unless otherwise agreed by
both parties, payment of other loans shall be made by the Borrower itself, namely, after the Lender disburses the loans to the
Borrower’s account pursuant to the withdrawal application submitted by the Borrower, the Borrower pay by itself to the its
counterparty that complies with the purpose as agreed in the Contract.

 

In the event that the
Borrower needs to change the aforesaid repayment schedule, it shall submit a written application to the Lender 10 banking
days prior to the maturity date of the loan, and the changed repayment schedule is subject to the written confirmation by the Parties.

 

3. In the event that
the Borrower needs to extend the loan term agreed herein, it shall submit a written application to the Lender 30 banking
days prior to the maturity date of the loan, and the parties shall enter into a renewal agreement after the Lender approves the
extension. In the event that the Borrower's application for extension is not approved by the Lender, the Borrower shall still repay
the loan in full according to the repayment term agreed herein.

 

4. Unless otherwise
agreed by the Parties, if both the principal and the interests are overdue by the Borrower, the Lender shall be entitled to decide
on the sequences for repaying the principal or the interests; under the condition of installment repayment, if several mature installments
and overdue installments exist under this Contract, the Lender shall be entitled to decide the sequences for repaying any installment;
if several outstanding loan contracts exist between the Parties, the Lender shall be entitled to decide the sequences for repaying
any contract.

 

    9

     

    

 

5. The Borrower shall
repay the loan principal, interests and other amounts payable in full and on time according to provisions stated herein. The Borrower
shall, prior to the repayment date and each interest settlement date, deposit in full the current interests, principal and other
amounts payable to the repayment account opened with the Lender, and the Lender shall be entitled to collect the funds on the repayment
date or the interest settlement date or to request the Borrower to cooperate in handling the relevant transfer procedures. In the
event that the amount in the repayment account is insufficient to pay the full amount due from the Borrower, the Lender shall be
entitled to decide the sequences for repayment.

 

6. The Lender shall
be entitled to collect the loan in advance on the basis of the capital withdrawal of the Borrower.

 

7. Loan Note: The loan
note shall be an integral part of this Contract. In the event that there is no record in this Contract, or the loan amount, withdrawal
amount, repayment amount, borrow date and maturity date of the loan, loan term, loan interest rate and loan purpose as recorded
in this Contract is inconsistent with those recorded in the loan note, the loan note shall prevail.

 

Article 16
Guarantee

 

In the event that any
event occurs to the Borrower or the guarantor, and causes the Lender to believe that it may affect the performing capability of
the Borrower or the guarantor; or the guarantee contracts are deemed as invalid, canceled or resolved; or the performing capability
of the Borrower or guarantor may be affected due to the deterioration in their financial condition or that the Borrower and the
guarantor are involved in substantial lawsuit or arbitration or other reasons; or the guarantor breaches the guarantee contracts
or other contracts with the Lender; or the collateral value decreases or gets lost due to the devaluation, damage, lost or sequestration
of the collateral; the Lender shall be entitled to require, and the Borrower shall have the obligation to provide new guarantee,
supplement or replace the guarantor to guarantee the liabilities under this Contract.

 

Article 17
Representations and Undertakings

 

1. The Borrower hereby
represents that:

 

(1) The Borrower is
a legal entity incorporated, registered and existing under the administration for industry and commerce or other competent authorities
and has full capacity of civil rights and conduct to conclude and perform the Contract.

 

(2) The Borrower executes
and performs this Contract out of true intension, has obtained all legal and valid authorizations required by the Borrower’s
Articles of Association and bylaws, and will not be in violation of any agreement, contract, or other legal documents with binding
force to the Borrower. The Borrower has obtained or will obtain all the required approval, consent, documentation or registration
for executing and performing this Contract.

 

(3) The Borrower is
in good faith and all the documents, financial statements, certifications and other information provided by the Borrower to the
Lender under this Contract are true, complete, accurate and valid, and free from false records, material omissions or misleading
statements. The financial and accounting reports provided to the Lender are prepared in accordance with Chinese accounting standards,
and truly, fairly and completely present the Borrower’s operating and liability condition.

 

    10

     

    

 

034

 

(4) The transaction
background that the Borrower represents to the Lender is real and legal, not for any illegal purposes such as money laundering.
The loan purpose and the source of repayment are clear and legal.

 

(5) The Borrower has
a good credit status, does not have material bad credit record, and does not conceal from the Lender any fact that may affect the
Borrower’s and the guarantor’s financial condition and performance capability. The Borrower does not conceal from the
Lender any litigation, arbitration or claim in which it is involved.

 

(6) The borrower has
repaid other debts payable as scheduled and has not maliciously defaulted on the payment of principal and interest of the bank
loan.

 

2. The Borrower hereby
undertakes that:

 

(1) The Borrower
shall withdraw and use the loan in accordance with the term and purpose agreed herein. The loan borrowed hereunder shall neither
be used for the investment in fixed asset and equity and other investments, nor flow into the securities market or the futures
market in any form, or be used for other purposes prohibited or restricted by relevant laws and regulations.

 

(2) The Borrower shall
deliver its financial statements (including but not limited to annual, quarterly and monthly reports) and other relevant documents
to the Lender on a regularly and timely basis in accordance with the requirements of the Lender; the Borrower shall ensure that
the financial indicators will comply with the Contract all the time. If the production and operation qualification/license is subject
to the annual audit, such qualification/license will pass the annual examination as scheduled.

 

(3) The Borrower shall
withdraw, repay and use the loan as stipulated herein.

 

(4) If the Borrower
has executed or will execute with the guarantor under this Contract a counter-guarantee agreement or similar agreement regarding
its guarantee obligations, this counter-guarantee agreement or similar agreement will not prejudice any Lender’s right under
this Contract.

 

(5) The Borrower shall
accept the credit inspection and supervision conducted by the Lender, and provide sufficient assistance and cooperation; from the
effective date of this Contract and prior to discharge of the principal and interests and related expenses hereunder, the Borrower
agrees and authorizes the Lender to monitor the account opened with the Lender, examine and analyze the Borrower’s production
and operation (including but not limited to the construction and operation of the Borrower’s projects), and make dynamic
monitoring on the income cash flow and overall fund flow of the Borrower; the Borrower shall accept and actively cooperate with
the examination and supervision made by the Lender on the usage of the loan funds including the loan purpose by account analysis,
proof inspection and site investigation, and make summary report in a periodic manner as required by the Lender.

 

(6) The Borrower’s
merger, division, decrease of capital, equity transfer, external investment, substantial increase of debt financing, transfer of
material assets and claims and other events which may have adverse effect on the solvency of the Borrower shall be subject to the
written consent of the Lender.

 

    11

     

    

 

The Borrower shall give
a notice to the Lender within 7 days after it becomes or should have become aware of any of the following circumstances:

 

A. Change of the Articles
of Association, business scope, registered capital, legal representative of the Borrower or the guarantor;

 

B. Change of management
mode such as joint management in any form, cooperation with foreign enterprises, cooperation, contracting management, reorganization,
reform and planned listing;

 

C. Involved in material
litigation or arbitration cases, sequestration, attachment or supervision of properties or collateral, or establishment of new
material liabilities on the collateral;

 

D. Winding up, dissolution,
liquidation, stopping business for rectification, cancellation, revocation of business license, (applied for) applying for bankruptcy;

 

E. Shareholders, directors
and current senior managers are suspected of being involved in material cases or economic disputes; or the legal representative/person
in charge and current senior executives are found to be in bad health or other material conditions that the they are unqualified
for their job;

 

F. Events of default
by the Borrower under other contracts;

 

G. Difficulty in business
operation and deterioration of financial position;

 

H. In the event that
the Borrower is closed, suspended, merged or changes the line of production due to change, restructuring and contracting or with
the approval of the competent departments, the Borrower undertakes to give a notice to the Lender in writing within one month prior
to the occurrence of the above events and to discharge all debts owed to the Lender immediately. Subject to the consent of the
Lender, the Borrower may transfer the debts to the receiving entity or the newly incorporated entity (The Borrower shall, in the
process of debt transfer, present and submit to the Lender the documents issued by its competent authority or the contract-issuing
party or relevant documents); however, the debt receiving entity must execute a new loan contract with Lender, and before the execution
of the new contract, the Lender shall have the right to recover the debts from the Borrower or its receiver at any time.

 

(7) Liquidation of the
debts owed by the Borrower to the Lender shall have priority to the loan extended by the shareholders of the Borrower, and precede
the debts of the same kind owed by the Borrower to other creditors. In addition, from the effectiveness of the Contract to the
time when all the principal, interests and relative fees under the Contract are paid off, the Borrower shall not return the loan
from its shareholders.

 

(8) In respect of the
loan hereunder, the loan conditions such as guarantee conditions, loan rate pricing, discharge sequence provided by the Borrower
for the Lender shall be no less than the current or future conditions provided for any other financial institution.

 

(9) The Borrower
shall bear the expenses incurred in connection with the execution and performance of this Contract and the expenses paid and payable
by the Lender for realization of its creditor's right hereunder, including but not limited to litigation or arbitration fees, property
preservation costs, attorney fees, enforcement fees, evaluation fees, auction fees, and announcement fees.

 

    12

     

    

 

035

 

(10) Account Management

 

A. The repayment account
opened by the Borrower with the Lender (the account stipulated in Article 5) is a special capital withdrawal account, which is
used to collect the corresponding sales revenue or the planned repayment fund. Where the corresponding sales revenue is settled
in a non-cash manner, the Borrower shall ensure that it will be promptly transferred into the capital withdrawal account upon receipt.

 

B. The Lender shall
have the right to supervise the capital withdrawal account, including but not limited to the understanding and supervision of the
fund income and expenditure of the account, and the Borrower shall provide relevant cooperation. At the request of the Lender,
the Borrower shall execute a special account supervision agreement with the Lender.

 

(11) The Borrower shall
dispose the assets in a manner that will not reduce its repayment capability. The Borrower undertakes that the total amount of
the Borrower’s external guarantee is equal to or less than _____ times of its net asset, and the total amount of external
guarantee as well as the amount of a single guarantee may not exceed the limit as stipulated in its Articles of Association; without
the consent of the Lender, the Borrower shall not provide guarantee to any third party or the loans borrowed by the Borrower from
any other financial institution with the assets formed by the loans under the Contract.

 

Article 18
Disclosure of the Related-party Transaction within the Borrower

 

☐
1. The Borrower is not identified by the Lender as the group client in accordance with the Guidelines on the Management of Risks
of Credits Granted by Commercial Banks to Group Clients (hereinafter referred to the “Guidelines”).

 

☐
2. If the Borrower is identified by the Lender as the group client in accordance with the Guidelines, it shall report to the Lender
any of the related-party transaction in a timely manner.

 

☐
3. The Borrower is subject to such events as major merger, acquisition or reorganization, which in the opinion of the Lender may
affect the safety of the loan.

 

Article 19
Breach of Contract and Settlement

 

1. The Borrower shall
be deemed to have breached the Contract under any of the following circumstances:

 

(1) The Borrower fails
to perform the obligations of payment and liquidation to the Lender according to the stipulations of the Contract;

 

(2) The Borrower fails
to use the loan in a way stipulated in this Contract or fails to use the loan borrowed hereunder for the purpose stipulated in
the Contract; or the Borrower fails to go through the withdrawal procedures as scheduled according to the withdrawal plan, or changes
the withdrawal plan without the Lender's consent; or the Borrower is in violation of this Contract and dodges the authorized payment
by the Lender by way of breaking up a large amount into several small amounts;

 

(3) The Borrower provides
an untrue representation or violates the undertaking it made in this Contract;

 

    13

     

    

 

(4) If any circumstance
under Subparagraph 2(6) of Article 17 arises, and the Lender believes that may affect the financial condition and performing capability
of the Borrower or guarantor, but the Borrower refuses to provide new guarantee or change a guarantor according to this Contract;

 

(5) The Borrower violates
any stipulation under any other contract between the Borrower and the Lender; the Borrower violates any stipulation under any Credit
Extension Contract between the Borrower and any other financial institution;

 

(6) The guarantor violates
the stipulations of the guarantee contract, or any default events arise under other contract between the guarantor and the Lender;

 

(7) The Borrower closes
down or is dissolved, withdraw or bankrupted;

 

(8) Where the Borrower
involves in or possibly involves in material economic disputes, litigation, arbitration, or its capital is sealed up, seized or
enforced for execution, or the administrative organs such as judicial organs or taxation authorities, and industrial and commercial
administration file for investigation or adopt punishment measures on the Borrower according to law which has influenced or may
influence the performance of the liabilities under this Contract;

 

(9) Where the main individual
investors and key managerial personnel of the Borrower are changed abnormally, disappear or are investigated or the personal freedom
thereof is limited by judicial organs according to law which has influenced or may influence the performance of the liabilities
under this Contract;

 

(10) Where the credit
circumstances of the Borrower lowers or finance indexes of the Borrower such as profitability, debt-paying ability, operating capacity
and cash flow seriously deteriorate and break through the index binding of this Contract or other financial agreements;

 

(11) The Borrower takes
advantage of the false contracts between the Borrower and the affiliated party to obtain funds or credit from the Lender through
transactions without true transaction background, and the affiliated party is subject to such events as major merger, acquisition
or reorganization which in the opinion of the Lender may affect the safety of the loan; or the Borrower intends to evade the creditor's
right of the Lender through related-party transactions;

 

(12) The Borrower causes
any liability accident due to its violation of food safety, production safety, environmental protection and other relevant laws
and regulations, regulatory provisions or industrial standards which has influenced or may influence the performance of the liabilities
under this Contract;

 

(13) In the event that
the loan under this Contract is granted on the basis of credit, the Borrower's credit rating, profitability, asset-liability ratio,
net cash flow from operating activities and other indicators do not meet the Lender's credit loan conditions; or the Borrower,
without the written consent of the Lender, establishes mortgage/pledge guarantee or provide guarantee to others with its valid
operating assets, which has influenced or may influence the performance of the liabilities under this Contract;

 

(14) Other circumstances
that may have adverse effect on the realization of the creditor's rights of the Lender under this Contract.

 

    14

     

    

 

036

 

2. When the aforesaid
breaches arise, as the case maybe, the Lender may take any or all measures as follows:

 

(1) Require the Borrower
and guarantor to rectify their breach within time limit.

 

(2) Decrease, suspend
or terminate all or part of the credit lines of the Borrower.

 

(3) Suspend or terminate
all or part of the business application (such as withdrawal) of the Borrower under this Contract or other contracts between the
Borrower and the Lender; partly or totally suspend or cancel to issue, pay and transact the unissued loans.

 

(4) Declare that all
or part of the outstanding principal and interest of the loan and other amounts payable of the Borrower under this Contract and
other contracts between the Borrower and the Lender shall become due immediately.

 

(5) Negotiate with the
Borrower to supplement the terms of loan issuance and payment; or the Lender shall have the right to change the loan disbursement
and payment conditions in accordance with the credit status of the Borrower such as lowering the minimum amount of authorized payment
of the Borrower; or the Lender shall have the right to transfer back the loan fund which the Borrower has paid for default.

 

(6) Terminate or dissolve
this Contract, partly or totally terminate or dissolve other contracts between the Borrower and the Lender.

 

(7) Require the Borrower
to compensate the Lender for the Lender’s loss caused by the Borrower’s default.

 

(8) Deduct from the
Borrower’s account which is opened in the Lender with notice before or after the deduction, so as to discharge all or part
of the Borrower's debts to the Lender hereunder. The undue deposit in the account shall be deemed to become due in advance.

 

(9) Exercise security
interest and require the guarantor to take guarantee responsibility.

 

(10) In the event
that the Borrower fails to repay the principal, interest (including penalty interest and compound interest) or other amounts payable
as scheduled, the Lender shall have the right to make an announcement for collection through the media or other forms.

 

(11) Have the right
to deduct and debit the deposits and dividends within any account opened by the Borrower with the Lender, and to dispose of the
Borrower's equities.

 

(12) Other measures
deemed necessary and possible by the Lender.

 

Article 20
Reservation of Rights

 

Any failure by a party
to exercise all or part of its rights hereunder or to require the other party to perform or assume all or part of obligations or
responsibilities shall not constitute a waiver of such rights or release of the obligations and responsibilities of such party.

 

Any tolerance, grace
or postponement for exercising the rights under this Contract of one Party shall not affect its rights stipulated by this Contract,
laws and regulations, and shall not be deemed as a waiver of such rights.

 

    15

     

    

 

Article 21
Confidentiality

 

Each party undertakes
to keep confidential the trade secrets, technical information, business information and other business secrets obtained from the
other party which are not available through public channels. Without the consent of the original provider of the trade secret,
neither party shall disclose all or part of the trade secret to any third party, unless otherwise stipulated by laws and regulations
or otherwise agreed by both parties.

 

In the event that either
party is in violation of the aforesaid confidentiality obligation, it shall assume the corresponding liability for breach of contract
and compensate for the losses caused thereby.

 

Article 22
Force Majeure

 

The term Force Majeure
as specified in this Contract refers to the objective events that cannot be foreseen, overcome, or avoided and have a significant
impact on one party, including but not limited to the natural disasters such as flood, earthquake, fire and storm, as well as the
social events such as war and turmoil.

 

In the event that the
Contract cannot be performed as a result of the occurrence of force majeure events, the party affected by the force majeure shall
immediately notify the other party of the event in writing, and within 7 days, provide written documents certifying the details
of such force majeure event and the reasons for non-performance or delay in performance hereof. Upon consensus through negotiation,
the parties may terminate or temporarily delay the performance of the Contract.

 

Article 23
Alteration, Amendment and Termination

 

This Contract can be
altered and amended in written form upon consensus through negotiation of the Parties, and any alternation and amendment shall
constitute an integral part of this Contract.

 

This Contract may not
be terminated until all the rights and obligations are fully preformed, unless otherwise stipulated in laws and regulations or
agreed by the both Parties.

 

The invalidity of any
provision of this Contract shall not affect the legal validity of other provisions, unless otherwise stipulated in laws and regulations
or agreed by the both Parties.

 

Article 24
Agreements on Service

 

1. The contact information
(including mailing address, telephone number, fax number, etc.) provided by the Borrower in this Contract shall be true and valid
and shall be the address for service of any notice of the Lender for the Borrower. In case of any change to the contact information,
the Borrower shall immediately send/mail the change information in writing to the mailing address provided by the Lender in this
Contract. Such information change shall become effective upon the Lender’s receipt of the change notice.

 

2. Unless otherwise
expressly provided for in this Contract, the Lender shall be entitled to give notice to the Borrower in any of the following methods.
The Lender shall be entitled to choose the notification method as it thinks fit and shall not be held liable for any error, omission
or delay in delivery by mail, fax, telephone, WeChat or any other communication system. Where the Lender simultaneously chooses
several notification methods, the one by which the notice is served to the Borrower earlier shall prevail.

 

    16

     

    

 

037

 

(1) By announcement.
The notice shall be deemed to be served on the date on which the Lender publishes the announcement on its website, online banking,
telephone banking or business outlets;

 

(2) By hand. The notice
shall be deemed to be served on the date on which the Borrower signs for the receipt, or if the Borrower refuses to sign for the
receipt, the date on which the server makes a record on the proof of service on the spot;

 

(3) By mail (including
express mail, surface mail or registered mail). The notice, when addressed to the Borrower’s mailing address last known to
the Lender, shall be deemed to be served on the date on which the Borrower signs for the receipt, or if the Borrower fails to sign
for the receipt, the date on which the mail is returned;

 

(4) By fax, mobile phone
SMS, WeChat or other electronic communication methods. The notice, when sent to the Borrower's fax number, the mobile phone number,
WeChat account number or email address designated by the Borrower which is last known to the Lender, shall be deemed to be served
on the date on which the notice is sent.

 

3. Borrower agrees that,
unless the Lender receives from the Borrower a written notice concerning the change of mailing address, the court may serve judicial
documents and other written documents on the Borrower through the mailing address provided by the Borrower in this Contract. During
the dispute settlement, if the court serves the judicial documents or other written documents by mail (including express mail,
surface mail or registered mail) to the Borrower mailing address last known to the Lender, such documents shall be deemed to be
served on the date on which the Borrower signs for receipt of the proof of service, or if Borrower fails to sign for receipt of
the proof of service, the date on which the mail is returned;

 

With the exception of
the judgments, verdicts and mediations, the court shall be entitled to give any notice to the Borrower by any methods of communication
agreed in this Paragraph 2. The court shall be entitled to choose the communication method as it thinks fit and shall not be held
liable for any error, omission or delay in delivery by mail, fax, telephone, telex or any other communication system. Where the
court simultaneously chooses several communication methods, the one by which the notice is served to the Borrower earlier shall
prevail.

 

Article 25
Appendix

 

The appendixes confirmed
by both parties shall constitute an integral part of this Contract and shall have the same legal effect as this Contract.

 

Article 26
Other Agreements

 

1. The Borrower shall
not transfer any rights and obligations under this Contract to the third party without written consent of the Lender.

 

2. This Contract shall
be legally binding upon both Parties and their successors and assignees without prejudice to other provisions of this Contract.

 

    17

     

    

 

3. All the transactions
under this Contract are carried out for each Party’s independent benefits. If, in accordance with relevant laws, regulations
and regulatory provisions, other parties to the transaction become the related parties or affiliated persons of the Lender, no
Party may seek to affect the fairness of the transaction out of this related-party relationship.

 

4. The headings and
business names in this Contract are used only for convenient reference, which shall not be used to interpret the provisions or
the rights and obligations of both Parties.

 

5. In accordance with
relevant laws, regulations and regulatory provisions, the Lender shall have the right to provide the information related to this
Contract and other relevant information of the Borrower to the credit reference system of the People’s Bank of China and
other credit information database established according to law for reference and use by the institutions or individuals with proper
qualification according to law. The Lender shall also have the right to refer the relevant information of the Borrower through
credit reference system of the People’s Bank of China and other credit information database established according to law
for the purpose of the execution and performance of this Contract.

 

The parties acknowledge
that the Borrower and the Lender have made a full negotiation in connection with all the terms of this Contract. The Lender has
requested the Borrower to give special attention to and make a comprehensive and accurate understanding of all provisions concerning
the rights and obligations of the parties, and has made explanations to the relevant provisions upon the Borrower's request. The
Borrower has carefully read and fully understood all the provisions of the Contract. Both the Borrower and the Lender have the
same understanding of the provisions of the Contract and have no objection to the contents of the Contract.

    18

     

    

 

038

 

(This page is for signatures and is intentionally left blank)

 

	Borrower (Official Seal): 		 

 

	Legal Representative or Authorized Agent (Signature & Seal):	 LAI Gang [signature]

 

June 26, 2019

 

	Lender (Official Seal):	

 

	Legal Representative or Authorized Agent (Signature & Seal):	LUO Julan [signature]

 

June 26, 2019

 

	Contract Execution Place:	Luling Rural Commercial Bank Business Department

 

 

19

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