Document:

1992 Stock Incentive Plan, as amended

 Exhibit 10.1 

BIOJECT MEDICAL TECHNOLOGIES INC. 

RESTATED 1992 STOCK INCENTIVE PLAN* 

(AS AMENDED AS OF SEPTEMBER 13, 2001, MARCH 13, 2003 

APRIL 26, 2005, [AND] MARCH 8, 2007 AND MARCH 31, 2010) 

1. Purpose. The purpose of this Restated 1992 Stock Incentive Plan (the “Plan”) is to enable Bioject Medical
Technologies Inc., an Oregon corporation (the “Company”), to attract and retain the services of (a) selected employees, officers and directors of the Company or of any parent or subsidiary corporation of the Company, and
(b) selected nonemployee agents, consultants, advisers and independent contractors of the Company or any parent or subsidiary. 

2. Shares Subject to the Plan. Subject to adjustment as provided below and in paragraph 10, up to [3,900,000]
5,400,000 shares of Common Stock of the Company (the “Shares”) shall be offered and issued under the Plan. If an option or a stock appreciation right granted under the Plan expires, terminates or is cancelled, the unissued
Shares subject to such option or stock appreciation right shall again be available under the Plan. If Shares sold or awarded as a bonus under the Plan are forfeited to the Company or repurchased by the Company, the number of Shares forfeited or
repurchased shall again be available under the Plan. 
 3. Effective Date and Duration of Plan. 

(a) Effective Date. The Plan shall become effective when adopted by the Board of Directors of the Company (the “Board”).
However, no option granted under the Plan shall become exercisable until the Plan is approved by the affirmative vote of the holders of a majority of the Common Stock of the Company represented at a shareholder meeting at which a quorum is present,
and any such awards under the Plan prior to such approval shall be conditioned on and subject to such approval. Subject to this limitation, options and stock appreciation rights may be granted and Shares may be awarded as bonuses or sold under the
Plan at any time after the effective date and before termination of the Plan. 
 (b) Duration. No options or stock
appreciation rights may be granted under the Plan, no stock bonuses may be awarded under the Plan, and no Shares may be sold pursuant to paragraph 8 of the Plan on or after [June 30, 2010] June 9, 2020. However,
the Plan shall continue in effect until all Shares available for issuance under the Plan have been issued and all restrictions on such Shares have lapsed. The Board may suspend or terminate the Plan at any time, except with respect to options, stock
appreciation rights and Shares subject to restrictions then outstanding under the Plan. Termination shall not affect any outstanding options, stock appreciation rights, any right of the Company to repurchase Shares or the forfeitability of Shares
issued under the Plan. 
 4. Administration. 

(a) The Plan shall be administered by a committee appointed by the Board consisting of not less than two directors (the
“Committee”). The Committee shall determine and designate from time to time the individuals to whom awards shall be made, the amount of the awards, and the other terms and conditions of the awards; provided,
however, that only the Board may amend or terminate the Plan as provided in paragraphs 3 and 13. At any time when the officers and directors of the Company are subject to Section 16(b) of the Securities Exchange Act of 1934

  

	*	Text in brackets and italics is to be deleted; text in bold and underline is new. 

 

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(the “Exchange Act”), the Committee shall consist solely of “non-employee” directors as such term is defined from time to time in SEC Rule 16b-3(b)(3)(i) or successor rule.

 (b) Subject to the provisions of the Plan, the Committee may from time to time adopt and amend rules and regulations
relating to administration of the Plan, advance the lapse of any waiting period, accelerate any vesting or exercise date, waive or modify any restriction applicable to Shares (except those restrictions imposed by law) and make all other
determinations in the judgment of the Committee necessary or desirable for the administration of the Plan. The interpretation and construction of the provisions of the Plan and related agreements by the Committee shall be final and conclusive. The
Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any related agreement in the manner and to the extent it shall deem expedient to carry the Plan into effect, and it shall be the sole and final
judge of such expediency. 
 (c) Notwithstanding anything to the contrary contained in this paragraph 4, the Board of Directors
may delegate to the Chief Executive Officer of the Company, as a one-member committee of the Board of Directors, the authority to grant awards to any eligible employee who is not, at the time of such grant, subject to the reporting requirements and
liability provisions contained in Section 16 of the Securities Exchange Act of 1934 and the regulations thereunder. 

5. Types of Awards; Eligibility. The Committee may, from time to time, take the following actions under the Plan: (i) grant
Incentive Stock Options as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), as provided in paragraph 6(b); (ii) grant options other than Incentive Stock Options (“Nonstatutory Stock
Options”) as provided in paragraph 6(c); (iii) award stock bonuses as provided in paragraph 7; (iv) sell Shares as provided in paragraph 8; and (v) grant stock appreciation rights as provided in paragraph 9. Any
such awards may be made to employees (including employees who are officers or directors) of the Company or of any parent or subsidiary corporation of the Company, and to other individuals described in paragraph 1 who the Committee believes have
made or will make an important contribution to the Company or its parent or subsidiaries; provided, however, that only employees of the Company or a parent or subsidiary shall be eligible to receive Incentive Stock
Options under the Plan. The Committee shall select the individuals to whom awards shall be made and shall specify the action taken with respect to each individual to whom an award is made under the Plan. At the discretion of the Committee, an
individual may be given an election to surrender an award in exchange for the grant of a new award. No employee may be granted options or stock appreciation rights under the Plan for more than 200,000 shares of Common Stock in any calendar year.

 6. Option Grants. 

(a) Grant. Each option granted under the Plan shall be evidenced by a stock option agreement in such form as the Committee shall
prescribe from time to time in accordance with the Plan. With respect to each option grant, the Committee shall determine the number of Shares subject to the option, the option price, the period of the option, and the time or times at which the
option may be exercised and whether the option is an Incentive Stock Option or a Nonstatutory Stock Option. 
 (b) Incentive
Stock Options. Incentive Stock Options granted under the Plan shall be subject to the following terms and conditions: 

(i) No employee may be granted Incentive Stock Options under the Plan such that the aggregate fair market value, on the
date of grant, of the Shares with respect to which Incentive Stock Options are exercisable for the first time by that employee during any calendar year under the Plan and under any other incentive stock option plan (within the meaning of
Section 422 of the Code) of the 
  

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Company or of any parent or subsidiary corporation of the Company exceeds $100,000. 

(ii) An Incentive Stock Option may be granted under the Plan to an employee possessing more than 10 percent of the total
combined voting power of all classes of stock of the Company or of any parent or subsidiary corporation of the Company only if the option price is at least 110 percent of the fair market value, as described in paragraph 6(b)(iv), of the Shares
subject to the option on the date it is granted, and the option by its terms is not exercisable more than five years from the date of grant. 

(iii) Subject to paragraphs 6(b)(ii) and 6(d), Incentive Stock Options granted under the Plan shall continue in effect for
the period fixed by the Committee, except that no Incentive Stock Option shall be exercisable more than 10 years from the date of grant. 

(iv) The option price per Share shall be determined by the Committee at the time of grant. Subject to paragraph 6(b)(ii),
the option price shall not be less than 100 percent of the fair market value of the Shares covered by the Incentive Stock Option at the date the option is granted. The fair market value shall be deemed to be the average of the closing bid and asked
prices for the Common Stock of the Company as reported on the National Association of Securities Dealers, Inc. Automated Quotation System on the day preceding the day the option is granted, or if there has been no sale on that date, on the last
preceding date on which a sale occurred, or such other reported value of the Common Stock of the Company as shall be specified by the Committee. 

(v) The Committee may at any time without the consent of the optionee convert an Incentive Stock Option into a
Nonstatutory Stock Option. 
 (c) Nonstatutory Stock Options. Nonstatutory Stock Options shall be subject to the
following additional terms and conditions: 
 (i) The option price for Nonstatutory Stock Options shall be
determined by the Committee at the time of grant. The option price may not be less than 75 percent of the fair market value of the Shares covered by the Nonstatutory Stock Option on the date of grant. The fair market value of the Shares covered
by a Nonstatutory Stock Option shall be determined pursuant to paragraph 6(b)(iv). 
 (ii) Nonstatutory
Stock Options granted under the Plan shall continue in effect for the period fixed by the Committee. 
 (d) Exercise of
Options. Except as provided in paragraphs 6(e) and (f) or as determined by the Committee, no option granted under the Plan may be exercised unless at the time of such exercise the optionee is employed by or in the service of the Company or
any parent or subsidiary corporation of the Company and shall have been so employed or have provided such service continuously since the date such option was granted. Absence on leave or on account of illness or disability under rules established by
the Committee shall not, however, be deemed an interruption of employment for purposes of the Plan. Unless otherwise determined by the Committee, vesting of options shall not continue during an absence on leave (including an extended illness) or on
account of disability. Except as provided in paragraphs 6(f), 10 and 11, options granted under the Plan may vest and be exercised from time to time over the period stated in each option in such amounts and at such times as shall be prescribed by the
Committee, provided that options shall not be exercised for fractional shares. Unless otherwise determined by the Committee, if the optionee 
  

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does not exercise an option in any one year with respect to the full number of Shares to which the optionee is entitled in that year, the optionee’s rights shall be cumulative and the
optionee may purchase those Shares in any subsequent year during the term of the option. 
 (e) Restrictions on
Transfer. Each option granted under the Plan by its terms shall be nonassignable and nontransferable by the optionee, either voluntarily or by operation of law, except by will or by the laws of descent and distribution of the state or country of
the optionee’s domicile at the time of death, and each option by its terms shall be exercisable during the optionee’s lifetime only by the optionee; provided, however, that, with the consent of the Committee,
which consent may be withheld in its sole discretion or conditioned on such requirements as the Committee shall deem appropriate, an officer or director of the Company who is subject to Section 16(b) of the Exchange Act may assign or transfer
without consideration all or any portion of a Nonstatutory Stock Option granted under the Plan to such officer’s or director’s spouse (or former spouse) pursuant to a qualified domestic relations order. The holder of any Nonstatutory Stock
Option that has been transferred pursuant to this paragraph 6(e) may be subject to treatment under tax and securities laws with respect to the transferred option which differs from the treatment to which the applicable officer or director was
subject with respect to the option prior to the transfer. 
 (f) Termination of Employment or Service. 

(i) In the event the employment or service of the optionee by the Company or a parent or subsidiary corporation of the
Company terminates for any reason other than because of death or physical disability, the option may be exercised at any time prior to the expiration date of the option or the expiration of three months (one year in the case of officers and two
years in the case of directors) after the date of such termination, whichever is the shorter period, but only if and to the extent the optionee was entitled to exercise the option at the date of such termination. 

(ii) In the event of the termination of the optionee’s employment or service with the Company or a parent or
subsidiary corporation of the Company because the optionee becomes disabled (within the meaning of Section 22(e)(3) of the Code), the option may be exercised at any time prior to the expiration date of the option or the expiration of
one year after the date of such termination, whichever is the shorter period, but only if and to the extent the optionee was entitled to exercise the option at the date of such termination. 

(iii) In the event of the death of an optionee while employed by or providing service to the Company or a parent or
subsidiary corporation of the Company, the option may be exercised at any time prior to the expiration date of the option or the expiration of one year after the date of such death, whichever is the shorter period, but only if and to the extent
the optionee was entitled to exercise the option on the date of death, and only by the person or persons to whom such optionee’s rights under the option shall pass by the optionee’s will or by the laws of descent and distribution of the
state or country of domicile at the time of death. 
 (iv) The Committee, at the time of grant or at any time
thereafter, may extend the three-month and one-year expiration periods any length of time not later than the original expiration date of the option, and may increase the portion of an option that is exercisable, subject to such terms and conditions
as the Committee may determine. 
 (v) To the extent that the option of any deceased optionee or of any optionee
whose employment or service terminates is not exercised within the 
  

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applicable period, all further rights to purchase Shares pursuant to such option shall cease and terminate. 

(g) Purchase of Shares. Unless the Committee determines otherwise, Shares may be acquired pursuant to an option only upon receipt
by the Company of notice in writing from the optionee of the optionee’s intention to exercise, specifying the number of Shares as to which the optionee desires to exercise the option and the date on which the optionee desires to complete the
transaction, and, if required to comply with the Securities Act of 1933, as amended, or state securities laws, the notice shall include a representation that it is the optionee’s present intention to acquire the Shares for investment and not
with a view to distribution. The certificates representing the Shares shall bear any legends required by the Committee. Unless the Committee determines otherwise, on or before the date specified for completion of the purchase of Shares pursuant to
an option, the optionee must have paid the Company the full purchase price of such Shares in cash (including, with the consent of the Committee, cash that may be the proceeds of a loan from the Company), or, with the consent of the Committee, in
whole or in part, in Shares valued at fair market value, as determined pursuant to paragraph 6(b)(iv). Unless the Committee determines otherwise, all payments made to the Company in connection with the exercise of an option must be made by a
certified or cashier’s bank check or by the transfer of immediately available federal funds. No Shares shall be issued until full payment therefor has been made. With the consent of the Committee, an optionee may request the Company to apply
automatically the Shares to be received upon the exercise of a portion of a stock option (even though stock certificates have not yet been issued) to satisfy the purchase price for additional portions of the option. Each optionee who has exercised
an option shall immediately upon notification of the amount due, if any, pay to the Company in cash amounts necessary to satisfy any applicable federal, state and local tax withholding requirements. If additional withholding is or becomes required
beyond any amount deposited before delivery of the certificates, the optionee shall pay such amount to the Company on demand. If the optionee fails to pay the amount demanded, the Company or any parent or subsidiary corporation of the Company may
withhold that amount from other amounts payable to the optionee by the Company or the parent or subsidiary corporation, including salary, subject to applicable law. With the consent of the Committee, an optionee may deliver Shares to the Company to
satisfy the withholding obligation. 
 7. Stock Bonuses. The Committee may award Shares under the Plan as stock bonuses.
Shares awarded as a stock bonus shall be subject to such terms, conditions, and restrictions as shall be determined by the Committee, all of which shall be evidenced in a writing signed by the recipient prior to receiving the bonus Shares. The
Committee may not require the recipient to pay any monetary consideration other than amounts necessary to satisfy tax withholding requirements. The certificates representing the Shares awarded shall bear any legends required by the Committee. The
Company may require any recipient of a stock bonus to pay to the Company in cash upon demand amounts necessary to satisfy any applicable federal, state or local tax withholding requirements. If the recipient fails to pay the amount demanded, the
Company or any parent or subsidiary corporation of the Company may withhold that amount from other amounts payable to the recipient by the Company or the parent or subsidiary corporation, including salary, subject to applicable law. With the consent
of the Committee, a recipient may deliver Shares to the Company to satisfy the withholding obligation. 
 8. Stock Sales.
The Committee may issue Shares under the Plan for such consideration (including promissory notes and services) as determined by the Committee, provided that in no event shall the consideration be less than 75 percent of the fair market
value of the Shares at the time of issuance, determined pursuant to paragraph 6(b)(iv). Shares issued under this paragraph 8 shall be subject to the terms, conditions and restrictions determined by the Committee. The restrictions may
include restrictions concerning transferability, repurchase by the Company and forfeiture of the Shares issued, together with such other restrictions as may be determined by the Committee. The certificates representing the Shares shall bear any
legends required by the Committee. The Company may require any purchaser of stock issued under this paragraph 8 to pay 
  

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to the Company in cash upon demand amounts necessary to satisfy any applicable federal, state or local tax withholding requirements. If the purchaser fails to pay the amount demanded, the Company
or any parent or subsidiary corporation of the Company may withhold that amount from other amounts payable to the purchaser by the Company or any parent or subsidiary corporation, including salary, subject to applicable law. With the consent of the
Committee, a purchaser may deliver Shares to the Company to satisfy the withholding obligation. 
 9. Stock Appreciation
Rights. 
 (a) Grant. Stock appreciation rights may be granted under the Plan by the Committee, subject to such
rules, terms, and conditions as the Committee prescribes. 
 (b) Exercise. 

(i) A stock appreciation right shall be exercisable only at the time or times established by the Committee. If a stock
appreciation right is granted in connection with an option, the stock appreciation right shall be exercisable only to the extent and on the same conditions that the related option could be exercised. Upon exercise of a stock appreciation right, any
option or portion thereof to which the stock appreciation right relates terminates. If a stock appreciation right is granted in connection with an option, upon exercise of the option, the stock appreciation right or portion thereof to which the
option relates terminates. 
 (ii) The Committee may withdraw any stock appreciation right granted under the Plan
at any time and may impose any conditions upon the exercise of a stock appreciation right or adopt rules and regulations from time to time affecting the rights of holders of stock appreciation rights. Such rules and regulations may govern the right
to exercise stock appreciation rights granted before adoption or amendment of such rules and regulations as well as stock appreciation rights granted thereafter. 

(iii) Each stock appreciation right shall entitle the holder, upon exercise, to receive from the Company in exchange
therefor an amount equal in value to the excess of the fair market value on the date of exercise of one Share over its fair market value on the date of grant (or, in the case of a stock appreciation right granted in connection with an option, the
option price per Share under the option to which the stock appreciation right relates), multiplied by the number of Shares covered by the stock appreciation right or the option, or portion thereof, that is surrendered. No stock appreciation right
shall be exercisable at a time that the amount determined under this subparagraph is negative. Payment by the Company upon exercise of a stock appreciation right may be made in Shares valued at fair market value, in cash, or partly in Shares and
partly in cash, all as determined by the Committee. 
 (iv) For purposes of this paragraph 9, the fair
market value of the Shares shall be determined pursuant to paragraph 6(b)(iv), on the trading day preceding the date the stock appreciation right is exercised. 

(v) No fractional Shares shall be issued upon exercise of a stock appreciation right. In lieu thereof, cash may be paid in
an amount equal to the value of the fraction or, if the Committee shall determine, the number of Shares may be rounded downward to the next whole Share. 
  

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 (vi) Each participant who has exercised a stock appreciation right shall,
upon notification of the amount due, pay to the Company in cash amounts necessary to satisfy any applicable federal, state or local tax withholding requirements. If the participant fails to pay the amount demanded, the Company or any parent or
subsidiary corporation of the Company may withhold that amount from other amounts payable to the participant by the Company or any parent or subsidiary corporation, including salary, subject to applicable law. With the consent of the Committee, a
participant may satisfy this obligation, in whole or in part, by having the Company withhold from any Shares to be issued upon the exercise that number of Shares that would satisfy the withholding amount due or by delivering Shares to the Company to
satisfy the withholding amount. 
 (vii) Upon the exercise of a stock appreciation right for Shares, the number
of Shares reserved for issuance under the Plan shall be reduced by the number of Shares issued. Cash payments of stock appreciation rights shall not reduce the number of Shares reserved for issuance under the Plan. 

10. Changes in Capital Structure. If the outstanding shares of Common Stock of the Company are hereafter increased or decreased or
changed into or exchanged for a different number or kind of shares or other securities of the Company or of another corporation by reason of any recapitalization, reclassification, stock split, combination of shares or dividend payable in shares,
the Committee shall make appropriate adjustments (i) in the number and kind of shares available for awards under the Plan and in all other share amounts set forth in the Plan; and (ii) in the number and kind of shares as to which
outstanding options and stock appreciation rights, or portions thereof then unexercised, shall be exercisable, so that the participant’s proportionate interest before and after the occurrence of the event is maintained, provided
that this paragraph 10 shall not apply with respect to transactions referred to in paragraph 11. The Committee may also require that any securities issued in respect of or exchanged for Shares issued hereunder that are subject to
restrictions be subject to similar restrictions. Notwithstanding the foregoing, the Committee shall have no obligation to effect any adjustment that would or might result in the issuance of fractional shares, and any fractional shares resulting from
any adjustment may be disregarded or provided for in any manner determined by the Committee. Any such adjustment made by the Committee shall be conclusive. 

11. Effect of Reorganization or Liquidation. 

(a) Cash, Stock or Other Property for Stock. Except as provided in paragraph 11(b), upon a merger, consolidation,
reorganization, plan of exchange or liquidation involving the Company, as a result of which the shareholders of the Company receive cash, stock or other property in exchange for or in connection with their Common Stock (any such transaction to be
referred to in this paragraph 11 as an “Accelerating Event”), any option or stock appreciation right granted hereunder shall terminate, but the optionee shall have the right during a 30-day period immediately prior to any such
Accelerating Event to exercise his or her option or stock appreciation right, in whole or in part, without any limitation with respect to vesting or exercisability. 

(b) Stock for Stock. If the shareholders of the Company receive capital stock of another corporation (“Exchange Stock”)
in exchange for their Common Stock in any transaction involving a merger, consolidation, reorganization, or plan of exchange, all options granted hereunder shall be converted into options to purchase shares of Exchange Stock and all stock
appreciation rights granted hereunder shall be converted into stock appreciation rights measured by the Exchange Stock, unless the Committee, in its sole discretion, determines that any or all such options or stock appreciation rights granted
hereunder shall not be converted, but instead shall terminate in accordance with the provisions of paragraph 11(a). The amount and price of converted options and stock appreciation rights shall be determined by adjusting the amount and price of
the 
  

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options or stock appreciation rights granted hereunder to take into account the relative values of the Exchange Stock and the Common Stock in the transaction. 

(c) The rights set forth in this paragraph 11 shall be transferable only to the extent the related option or stock appreciation
right is transferable. 
 12. Corporate Mergers, Acquisitions, Etc. The Committee may also grant options, grant stock
appreciation rights, award stock bonuses and sell stock under the Plan having terms, conditions and provisions that vary from those specified in the Plan; provided that any such awards are granted in substitution for, or in connection
with the assumption of, existing options, stock appreciation rights, stock bonuses and stock sold or awarded by another corporation and assumed or otherwise agreed to be provided for by the Company pursuant to or by reason of a transaction involving
a corporate merger, consolidation, acquisition of property or stock, separation, reorganization or liquidation to which the Company or a parent or subsidiary corporation of the Company is a party. 

13. Amendment of Plan. The Board may at any time, and from time to time, modify or amend the Plan in such respects as it shall
deem advisable because of changes in the law while the Plan is in effect or for any other reason. Except as provided in paragraphs 6(b)(v), 10, 11 and 12, however, no change in an award already granted shall be made without the written consent of
the holder of such award. 
 14. Approvals. The obligations of the Company under the Plan are subject to the approval of
state and federal authorities or agencies with jurisdiction in the matter. The Company shall not be obligated to issue or deliver Shares under the Plan if such issuance or delivery would violate applicable state or federal securities laws, or if
compliance with such laws would, in the opinion of the Company, be unduly burdensome or require the disclosure of information which would not be in the Company’s best interests. 

15. Employment and Service Rights. Nothing in the Plan or any award pursuant to the Plan shall (i) confer upon any employee
any right to be continued in the employment of the Company or any parent or subsidiary corporation of the Company or shall interfere in any way with the right of the Company or any parent or subsidiary corporation of the Company by whom such
employee is employed to terminate such employee’s employment at any time, for any reason, with or without cause, or to increase or decrease such employee’s compensation or benefits; or (ii) confer upon any person engaged by the
Company or any parent or subsidiary corporation of the Company any right to be retained or employed by the Company or the parent or subsidiary or to the continuation, extension, renewal, or modification of any compensation, contract, or arrangement
with or by the Company or the parent or subsidiary. 
 16. Rights as a Shareholder. The recipient of any award under the
Plan shall have no rights as a shareholder with respect to any Shares until the date of issue to the recipient of a stock certificate for such Shares. Except as otherwise expressly provided in the Plan, no adjustment shall be made for dividends or
other rights for which the record date is prior to the date such stock certificate is issued. 
  

			
	Amended:	  	September 13, 2001
		  	March 13, 2003
		  	April 26, 2005
		  	March 8, 2007
		  	March 31, 2010

  

 8Fixed Asset Loan Contract  Dated June 30, 2010

 Exhibit 10.2 

No. 32101201000017807                   
  
  
 Fixed Asset Loan Contract 

Agricultural Bank of China 

 Dear Customer: In order to protect your rights, before signing this contract please
carefully read the provisions of this contract (particularly bold terms) which are about your rights and obligations in the contract. If there are any questions of this contract, please consult the lending bank.  

Table of Contents 
  

					
	 1.
	  	Definition	  	
			
	 2.
	  	Borrower’s commitment	  	
			
	 3.
	  	Basic provisions of Contract	  	
			
	 4.
	  	Supplementary Provisions	  	
			
	 5.
	  	Legal Responsibility	  	
			
	 6.
	  	Other Matters	  	

 Fixed Asset Loan contract 

 

			
	Borrower (full name): Memsic Transducer Systems Co., Ltd.      

					
		
	 Residence (address):
	 	 Xishan Economic Development Zone(East),

South Dachen Road, East Ansheng Road, Wuxi

					
		
	 Legal Representative / CEO:
	 	        Yang
Zhao                     

					
			
	 Zip:
	  	    214028                        
  	  	
			
	 Attn:
	  	    Jian Dong                     
	  	
			
	 Tel:
	  	    66616266                      
	  	
			
	 Fax:
	  	    66616669                      
	  	

			
	
	Lenders (in full): Agricultural Bank of China Wuxi Xishan Branch      

					
		
	 Residence (address):
	 	No. 4 Nanquheng Rd., Xishan District, Wuxi, Jiangsu

					
		
	 Legal Representative / CEO:
	 	        Xiaodong
Di                    

					
			
	 Zip:
	  	    214101                        
   	  	
			
	 Attn:
	  	    Hu
Jiang                        	  	
			
	 Tel:
	  	    88704845                       
	  	
			
	 Fax:
	  	    88220116                       
	  	

 Borrower needs to apply for fixed asset loans from the lender for Wireless Sensor Network
System and Inertial Navigation System Manufacturing project, both parties mutually agree to enter into this contract. 

 1. Definition 

Unless otherwise agreed, the following terms in this contract have the following meanings: 

1.1 Borrowing Period: including the period under the master loan agreement and the period of each installment. The borrowing period under the
master loan agreement refers to the period from date of the withdrawal of the first installment to the date of the payoff of the principal and interests of all the installment loans. The borrowing period of each installment is from date of the
withdrawal of the installment loan to the date of the payoff of the total principal and interest of this installment loan; 
 1.2
Withdrawal period: refers to the period in which the borrower can withdraw the loan based on the terms and conditions of the loan contract, including the mutually agreed extended period. 

1.3 Withdrawal Date: is the date that the bank transmits the loan amount to the borrower’s account 

1.4 Repayment Period: refers to period from the date that borrower makes first principal repayment to the date of the payoff the entire loan
principal and interest, including re-negotiated repayment period. 
 1.5 Project Construction Period: means the period from the start of
the project to the completion of the project. 
 1.6 Project operation Period: from the date of project completion to the end of project
operation. 
 1.7 Project Completion: means the project has been completed, inspected and accepted by the authorized construction
inspection agency (including project quality inspection and the required comprehensive inspection), and has been put into use. 
 1.8
Day: means business days; if due date or the last day of the borrowing period falls on a National Holiday, a statutory holiday or a weekend, it will be extended to the first business day after the holiday. 

1.9 LIBOR / HIBOR: London / Hong Kong inter-bank market lending rates of corresponding period announced by Reuters two business days before the
interest charging date. 
 1.10: Loan ratio: the ratio of the loan amount that provided by the lender under this agreement to the total
loan amount that the borrower obtains for the entire project. 

 1.11 Total investment: The total estimated investment for the project includes the capital investment
for fixed assets required by the project and the initial working capital requirements. 
 1.12 Laws and regulations: including the PRC
laws, administrative regulations, local laws, regulations, judicial interpretations and other regulations with legal effect. 
 2.
Borrower’s Warrants 
 The Borrower warrants the following: 

2.1 Construction and loan applications are in compliance with laws and regulations: Borrower shall be established by law and approved by the
authorized agency; borrower and the project are in compliance with the State’s qualification requirements and eligible for investment; borrower and its controlling shareholder (legal representative of new project) have good credit history, no
significant adverse record; usage of borrowing and repayment source are clear and legitimate; project conforms to national industrial, land, environmental protection policies; in line with capital investment requirements; has paid relevant dues and
charges required by laws and regulations; no violation of laws and regulations. 
 2.2 Signing of contract is flawless: Borrower’s
signing of this contract or its obligations under this contract has gone through the necessary approval based on laws, regulations or article; this contract is signed by or sealed with the chops of the borrower’s Legal representative or the
right agent; borrower will actively corporate with the lender to obtain approval, go through registration or filing procedures; there is no other situation due to the borrower that may lead to flaws in the effectiveness of the loan contract.

 2.3 Guarantee provided is valid: the guarantor has gone through necessary formalities based on laws and regulations or its article to
provide guarantees for the borrower to sign the contract or the performance of obligations under this contract; guarantor is entitled to set up the collateral security; the signatory on the collateral contract is by authorized signor; the guarantor
shall actively process and cooperate with the lender to obtain approval, registration, or filing and registering the collateral; the guarantee is flawless and there is no situation exist that may have material adverse effects on the effectiveness of
the collateral. 
 2.4 Fulfill contracts in good faith: the usage of the loan should follow the term, method and usage that defined in
the loan contract; loans shall not be used for illegal conduct; borrow shall actively cooperate with relevant State authorities and lenders in its supervision and inspection of the loan and the related guaranteem shall repay the loan in full and in
time in accordance with the contract and do not use any means to default on the loan; there is no other incident of breach of contractual obligations. 

 2.5 Documents provided by the borrower regarding the borrower, the guarantor, and shareholders, as
well as information of the project and company finance are true, complete, accurate, lawful and effective. 
 3. Basic Provisions of Article

 3.1 Borrowing 

3.1.1 Use of borrowing: Wireless Sensor Network System and Inertial Navigation System Manufacturing. 

3.1.2 Currency and the amount of borrowing (Upcase): US DOLLAR TWENTY MILLION. 

3.1.3 The borrowing term: FIVE (5) YEARS (Uppercase) (year / month). 

3.2 Interest Rate, Penalty and Compound Interest 

3.2.1 The borrowing rate 

3.2.1.1 RMB loan interest rates following the first n/a Ways to determine: 

 

	 	(1)	Fixed Rate: In accordance with n/a Drawing on each loan / contract date) n/a (Single payment term / total loan period) base rate for the same grade of
loan with corresponding period announced by the People’s Bank of China n/a (Up / down) float n/a% Until the loan’s due date; 

  

	 	(2)	Floating Rate: In accordance with n/a (Drawing on each loan payment/ contract date) n/a (Single payment term / total loan period) base rate based on the
same grade of loan with corresponding period announced by the People’s Bank of China n/a (Up / down) floating n/a%. Floating interest rate to be adjusted every n/a (Upper case) months. The interest rate will be adjusted
on corresponding lending date in the first month when the People’s Bank adjusts the RMB benchmark lending rate. The lender may not inform the borrower. If there is no corresponding lending date, the last day of the month will be considered
as the corresponding lending date; 

  

	 	(3)	Other methods: n/a. 

3.2.1.2 Foreign currency loan: the interest rate follows Sec. 3.2.1.1 (1) to determine: 

 

	 	(1)	SIX (Uppercase) months LIBOR (LIBOR / HIBOR) + 4.00% of spread and float every SIX (Uppercase) months; 

	 	(2)	Use the annual interest rate n/a% until the loan’s due date; 

  

	 	(3)	Other methods: n/a. 

 3.2.2 Method of
interest calculation and settlement  
 3.2.2.1 The interest on the loan is calculated quarterly
(Month / quarter) with the settlement date on the 20th of
the last month of each quarter (Month / quarter end month). 
 3.2.2.2 Fixed-rate interest is calculated according
to the agreed fixed rate. Floating-rate interest is calculated according to the determined rate in the floating period. If the interest rate is floated multiple times in one interest period, interest will be the cumulative amount of interests
calculated according to different rates during floating period. For other than the above mentioned arrangement of interest rates, the interest is calculated according to the agreed rates. 

3.2.2.3 If the maturity date of the loan falls on a statutory holiday or a weekend, the normal payment date will be extended to the first
business day after statutory holiday or weekend and the interest for the extended period will be calculated in accordance with the agreed method. 

3.2.3 Penalty Interest 

3.2.3.1 Borrower fails to repay the loan principal according to contracted date, the lender will charge a penalty interest of 50%
(Uppercase) of the agreed based rate on the overdue amount of the loan from the due date to the date when the principal and interest are paid off. 

3.2.3.2 Borrower fails to use the loan in the way regulated by contract, lender will charge penalty interest of 100% (Uppercase)
of the agreed based rate from the default date to the date when the principal and interest are paid off. 
 3.2.3.3 If the loan
is neither repaid on time nor used in the way that comply with contract, the higher penalty interest rate of above will apply. 
 3.2.4
Compounding Interest 
 If the borrower fails to pay interest on time, the lender will charge compounding interest rate from
the default date on monthly (Quarter / month) basis. If the Borrower fails to pay the interest due before the maturity date, the lender will charge monthly compounding interest at the contractual interest rate. After the maturity date, the
lender will charge interest on compounding basis at the contractual overdue penalty interest rate. If the borrower fails to use loan according to contractual requirements or the borrower fails to pay interest on time during the loan term, lender
will charge interest on compounding basis at an appropriate contractual penalty interest rate. 

 3.3 Withdrawals, Loan Payments 

3.3.1 Withdrawal Conditions 

The borrower shall also meet the following conditions in terms of withdrawing the loan: 

(1) Borrower is a qualified borrowing entity. Their decision-making department or authorized personnel have agreed to obtain the loan. The necessary
government agency’s approvals have been obtained. 
 (2) The borrower of the project loan has completed the legal administrative processes,
including but not limited to obtaining the approval of government authorities, approval or filing of documents, obtaining from relevant agencies legal documents of environmental protection, land administration and planning. The project required
revolving loan, if any, has met the conditions required by relevant government departments. 
 (3) Real estate development project loans have
obtained relevant “State-owned land use right certificates”, “Construction land planning license”, “Construction project planning license” and “Construction Permit”. If the project has begun marketing / pre-
sales, it must obtain “sales (pre-) sales permit” and pay the related land transfer fees. 
 (4) Sources of the project’s capital
funding are in compliance with laws and regulations, and have 100% (100% / with ratio) been received prior to the loan. If the actual investment of the project exceeds the original planned investment amount and the lender agrees to grant an
additional loan, the borrower’s proportionate additional capital investment shall be All (All / the same proportion) in place prior to the release of the loan. The actual progress of the project is matching the invested amount.

 (5) Borrower has completed the relevant guarantee procedure requested by the lender and the guarantee is legitimate and effective.

 (6) The use of loan complies with laws and regulations as well as the loan contract. 

(7) The warrant made by the borrower when entering into this contract remains true and effective each time the borrower makes a withdrawal with no
significant or material adverse change that has occurred that may affect the performance of the contract. 
 (8) Other conventions:
n/a                                        
        . 

 3.3.2 Withdrawal 

3.3.2.1 Loan withdrawal in the following (2) ways: 

(1) One-time withdrawal, following the n/a ways: 

(1) Withdrawal date      Years      Month     
Day; 
 (2) Withdrawal period from      Years      Month
     To      Years      Month      Day; 

(2) Fractional withdrawals, withdrawal period from 2010 (Years) 06 (Month) 29 (Day) To 2011 (Years)
06 (Month) 28 (Day). 
 Specific withdrawal plan is as follows:  

2010-6-30 withdraw USD17.93 million, Q3 of 2010 withdraw 2.07 million of which, the withdrawals from 2010 (Years)
06 (Month) 29 (Day) To 2010 (Years) 12 (Month) 31 (Day) shall not be less than USD1 million. 

If the borrower fails to withdraw according to contractual withdrawal date, withdrawal period or withdrawal schedule, and did not apply to defer the
withdrawals, the lender may require the borrower to conduct relevant application procedure within a specified period. If such application procedure is not done within the required period, the lender may cancel or partially cancel the un-withdrawn
loan, charge a compensation payment at n/a% of the canceled amount, and can re-determine the conditions for payment of loans and withdrawals. Borrower within an agreed period did not withdraw minimum amount of above loan, the lender may
require the borrower to withdraw loan within a specified period. If it is not handled within the required period, the lender can charge compensation payment at n/a% of above minimum withdrawal amount and can re-determine the conditions for
payment of loans and withdrawals. 
 3.3.2.2 Borrower should submit a written application for withdrawals 15 days prior
to the withdrawal date. If the borrower needs to adjust the withdrawal plan, an application should be submitted 10 days in advance. The adjustment is subject to lender’s approval. 

 3.3.3 Loan Payments 

3.3.3.1 Entrusted payment 

3.3.3.1.1 If any one of below happens, borrower shall entrust lender to make payment directly to borrower’s contractual
counterparties: 
 (1) A single withdrawal amount exceeds 50% of project total investment; 

(2) A single withdrawal amount exceeds 5 million Yuan (including foreign currency equivalent); 

(3) Other conditions agreed by both parties:
n/a                                        
    . 
 3.3.3.1.2 In case of an entrusted payment, the borrower shall submit to lender an withdrawal
application and “Entrust Payment Notice” 3 days in advance together with relevant information. Once the application has been inspected and confirmed by the lender, lender will make a direct loan payment to the borrower’s
counterparty through the borrower’s bank account. If borrower’s withdrawal application does not meet conditions of the contract, or payment application does not match the contract, or the transaction information is incomplete or
inaccurate, the lender will not release the corresponding loan. The lender is not liable for any losses resulted from the borrower’s default on its contract with its counterparty. 

3.3.3.1.3 For a project financing that use entrusted payment, when necessary, the lender may together with the borrower, select an
independent contractor or other intermediaries to conduct a joint inspection on the equipment and/or the project’s construction progress, and make loan payment in accordance with jointly confirmed documents. 

3.3.3.1.4 An application for a delay of withdrawal of loan or cancel an entrusted payment shall be submitted in writing to the lender
before the lender makes the payment. After the lender reviews and approves the application, the lender will suspend the entrusted payment and cancel the corresponding loan withdrawal. During this period, the corresponding loan interest will be
charged in accordance with the contract terms. After the suspension of the entrusted payment, if borrower applies to resume the payment, contract term 3.3.3.1.2 will apply. 

3.3.3.1.5 If the borrower’s credit has changed, can not make loan repayments, avoid the entrusted payment by splitting the payment
into smaller amounts, and the project progress has lagged behind the plan, the lender may negotiate with the borrower to add additional conditions to the loan release and withdrawal terms, or to stop the loan release or withdrawal. 

 3.3.3.1.6 There should be no conditions attached to the entrusted payment. If the
borrower adds conditions in the “entrusted payment notice”, the conditions for the loans do not create obligations to the lender. Unless otherwise agreed in writing, the lender has no obligation to inform payment receiver about the
entrusted payment, the suspension of payments, the withdrawal of payment, or the resume of payment.  
 3.3.3.2 Self-payment

 Unless regulated by clause 3.3.3.1.1 and 4.1.1 of this contract, once the loan is transferred to the borrower’s account,
the borrower can pay its contracts from its account independently. The borrower shall inform the lender of its payments out of the loan proceeds. The lender can conduct an account analysis, receipt audits, field surveys, etc. to verify whether the
loans are used in accordance to the agreed purposes. 
 3.4 Repayments 

3.4.1 The source of repayment 
 The
Borrower to repay their loan principal and interest under this contract with its own assets, including but not limited to: 
 (1) all cash
flow from borrower’s operation; 

(2) n/a                       
                             ; 

(3)
n/a                                        
            . 
 3.4.2 Repayment Plan 

Borrower shall pay accrued interest according to the interest payment term, and follow the following (2) plan to repay the loan principal:
(the first two repayment plans could be used together with the third repayment plan) 
 (1) One lump sum repayment of loan principal, the date
of payment n/a Years n/a Month n/a Day; 
 (2) Phased repayment of the loan principal: the specific repayment plans are as
follows: 
   USD0.5 million before
2012-06-30                                        
         
   USD1 million between 2012-07-01 and
2013-06-30                     

  USD2.5 million between 2013-07-01 and
2014-06-30                  

  USD16 million between 2014-07-01 and
2015-06-29                   . 

 (3) When n/a (Item rental revenue reach n/a Million / rental rate reach n/a% / Other),
the borrower needs to use n/a% of rental income to repay the loans; when n/a (Project revenue reach n/a Million / rental rate reach n/a% / Other), the borrower should repay all loan. 

3.4.3 Repayment method 

3.4.3.1 Borrower should transfer principal and interest payments amount into lender’s designated borrower’s bank account prior
to the contractual payment due date and irrevocably authorize the lender to transfer the amount out from the account. If the balance of designated account is insufficient, the lender can withdraw from borrower’s other accounts with lender.

 3.4.3.2 If the lender exercises the offset right based on the law or contract, the borrower’s objection period is 7
days from the date the lender notifies the borrower in writing, orally or any other form of its action.  
 3.4.4 Repayment Order 

 3.4.4.1 Unless otherwise agreed, repayment will be settled in the following order: 

(1) If the Borrower specifically clarify to which loan the repayment shall apply, the repayment will be applied to that loan; 

(2) If the repayment for certain loan is not explicitly specified by the borrower, and there are a number of maturing loans between
the borrower and the lender, and repayment is insufficient to satisfy all the debts due, the debt will be settled in order that is determined by the lender; 

(3) If the lender exercises its offset right against the borrower pursuant to the law or the contract, the debt to be offset and the
offset order will be determined by the lender. If the lender exercises its right of subrogation, the settlement of debt and the settlement order with the payment from the secondary debtor will be determined by the lender. 

3.4.4.2 If the borrower’s payment is insufficient to satisfy the full amount of the loan, the lender may choose to apply the payment
to satisfy in the order of the principal, interest, penalty interest, compound interest or the administration cost of the loan. 
 3.4.5
Prepayment 
 3.4.5.1 If the borrower intends to pre- pay the loan, it should submit written application to the lender 30
days in advance. Upon the lender’s approval, the borrower can prepay the loan. The settlement order of the pre-payment shall be in accordance with clause 3. 4.4 of the agreement. 

 3.4.5.2 When borrowers makes prepayments, the interest on the part of the pre-payment will
be calculated based on the following (2) method. The interest will be settled together with the principal: 
 (1)
Based on the actual n/a (Total / each) loan’s term and the agreed interest rate; 
 (2) Based on the actual
each (Total / each) loan’s term and agreed interest rate with floating interest rate of n/a (%). 
 (3) Other:
n/a                                    . 

3.4.5.3 If the borrower makes prepayment, the prepaid principal can not be lower than USD0.5 Million and should be multiples
of USD0.5 Million. 
 3.4.5.4 If the borrower makes prepayment, the lender can charge prepayment penalty calculated by
the (2) method: 
 (1) The remaining term of the loan (in months, less than a month as one month) × prepayment
amount × 1‰; 
 (2) Other:
n/a                                    . 

3.4.5.5 If the borrower makes prepayment, the interest on the remaining part of the loan will be calculated at interest rate of this
agreement. 
 3.4.6 Extension 

If the borrower can not repay the loan according to the repayment plan, the borrower can apply for an extension from the lender. Borrower
shall submit an extension application to lender 15 days prior to the due date of the loan. If the lender agrees, the lender will sign an extension agreement with the borrower. 

3.5 Loan Receipt 
 The loan receipt
is a part of the contract. If the loan amount, withdraw amount, repayment amount, repayment date, interest rate are different from loan receipt, record on the loan receipt will prevail. 

3.6 Guarantee 
 3.6.1 Guarantee
method of this contract are: collateral, guarantee 

 3.6.2 Guarantee contracts will be signed separated by the lender, the borrower and the guarantor.

 3.7 Rights and Obligations 

3.7.1 The rights and obligations of the Borrower 

(1) Withdrawal of loan in accordance with the contract; 

(2) Fully and timely repay the loan principal and interest; 

(3) The usage of the loan is in accordance with the laws and regulations or contracts; 

(4) Agree and actively cooperate with the lender and their agents on monitoring, inspecting of the construction of the project, financial
activities, usage of loan and other related matters; submit information timely to the lender as the lender requested regarding the projects, usage of the loan, finance and other. 

(5) When the borrower conducts below acts, the borrower shall notify the lender in writing in advance and get the approval from the
lender: 
 (1) Contracting, leasing, equity restructuring, affiliation, merger/acquisition, consolidation, division or
reduction of registered capital, joint venture, key assets transfer, significant investment, issuing bonds, applying for suspending business operation, applying for dissolution, bankruptcy, etc.; 

(2) Provide large amount guarantees for the debt of others or pledge their main property to a third party for mortgage which may affect
the solvency of the borrower; 
 (3) Before the borrower pays off the principal and interest of the loan, the project related
assets or income (including expected return) generated from the loan financing that have not been used as a collateral or pledge to the lender (including lender participated syndication), are used by the borrowers as a collateral or pledged to a
third party; 
 (4) During the project implementation process, the construction program or project budget is significantly
adjusted; 

 (5) Material adverse changes in the borrower’s economic and financial situation or
events related to the borrower that may significantly impact the lender’s collection of its debt. 
 (6) If the following
events of the borrower occurred, the borrower shall give written notice to the lender within 5 days of the occurrence: 
 (1) The
borrower, its legal representative, main responsible person or the operating manager is engaged in illegal activities; 
 (2) The
business operation is discontinued, out of business, terminated, or the business license is revoked, etc.; 
 (3) The
borrower’s financial situation seriously deteriorates, or its production and operation is in serious difficulty or it involves in major adverse dispute; 

(4) The borrower may have other matters which have adverse impact on the lender’s collection of its debt. 

(7) If the following events of the borrower occurred, borrower shall give written notice to the lender within 7 days of the occurrence:

 (1) Significant changes in the organization, senior personnel and the company structure; 

(2) Changes in the company name, domicile, scope of business and other matters of business registration or charted matters; 

(3) Increase in registered capital, substantive changes in the contents of the articles of corporation; 

(4) Changes of other important matters which may impact the fulfillment of the debt; 

(8) The borrower and investors will not try to escape from its debt obligation to lender by withdrawing and hide the loan proceeds,
transferring assets out or stock shares without authorization from the lender, and the borrower will not engage in any other acts which may damage the interests of the lender. 

 (9) The borrower is responsible for necessary expenses related to this contract, including
legal fees, insurance, transportation, evaluation, registration, storage, appraisal, notary etc. 
 (10) Other rights and
obligations that are regulated by the law and regulation or mutually agreed by the borrower and the lender. 
 3.7.2 The rights and
obligations of lender  
 (1) Release the full amount of the loan to the borrower on time. If the delay of the loan release
is due to the borrower’s own reason or other reason not caused by the lender, the lender should not be responsible. 
 (2)
The right to conduct on-site or off-site monitoring of the following items related to the project construction, such as business operation, financial status, material inventory and use of loan etc, and require borrowers to provide relevant
documents, data and information: 
 (1) Whether project related capital, self-sourced fund and other matching funds are in place
on schedule; whether significant changes in the project taken place; whether project progress matches accumulated project expenditures; 

(2) Monitor whether the borrower uses the loan according to the terms and conditions of the loan agreement, whether the loan is used out
of compliance with the equity investments and securities, futures, or engage in speculative business, etc.; 
 (3) Check tther
necessary items which lender consider as necessary. 
 (3) In situations which may influence the borrower to fulfill its debt or
influence the safety of loan, the lender has the right to require the borrower to correct timely, implement the debt protection measures, provide other effective guarantee, or to stop issuing loans, terminate this contract and other loan contract
and recall the loan in advance etc.; 
 (4) If the guarantor has suspended its business operation, is out of business, has
canceled its business registration, or revoked its business license, or declared bankruptcy, or it has incurred significant operating losses that may lead to partial or completely loss of its guarantee capabilities, or its assets used as collateral
for 

 
loans has devalued, damaged, destroyed, or other situation which threaten the fulfillment of the guarantee for the loan, the lender may require the borrower to provide other effective guarantee;

 (5) Other rights and obligations according to the law or agreed by two parties 

3.7.3 Other obligations 
 3.7.3.1
Two parties are obligatory to protect the business secret and other information related to two parties which are gained while signing and completing the contact. Unless otherwise provided by the law, neither party shall disclose or divulge to
any third party the above information without the consent of the other, 
 3.7.3.2 After the termination of the contracted rights and
obligations, all parties should perform the necessary notifications, assistance in good faith. 
 4. Supplementary provisions 

The following 4.1, 4.2, 4.3, 4.4 also applies to loans under this contract, binding upon both parties; the other provisions which are not chosen
are not binding for both parties: 
 4.1 Terms of loan use 

4.1.1 Before the following conditions are met, the borrower should get consent from the lender if the borrower wants to use the loan which was
transferred to the borrower’s account by the lender according to the provisions of the loan contract:
n/a                                    . 

4.1.2 During the period of the restricted use of loan, interest will be charged as agreed. 

4.1.3 Before the condition of using the loan is met, if the borrower is investigated by authorized department, its account is frozen, or a third
party makes a claim, the borrower should notify lender immediately. 
 4.2 The capital account regulation 

4.2.1 The borrower shall open a controlled account with the lender and deposit the following (1) (2) amount into the account: 

(1) The proportion of projects capital that corresponds to the amount of the lender’s loan. 

 (2) The portion of operational or rental income at The ratio corresponding to the
loan ratio (All / and The ratio correspond to the loan); 
 (3) Other:
n/a                                        
                                         
           . 
 4.2.2 Before the contract rights and obligations are fulfilled,
the borrower should get consent from the lender if the borrower changes or closes the account. 
 4.2.3 Other:
n/a                                        
                                         
           . 
 4.3 Insurance 

4.3.1 3 Days before the withdrawal of the loan, in order to be in compliance with the law, industry regulations and requirements of
lenders, the borrower should obtain insurance coverage for the construction and property related to the loan project from a insurance company that is accepted by the lender. The types of insurance include but not limited: 

(1) All risks insurance on construction in process, property insurance on workshop ; 

(2)
n/a                                        
                                         
                                       ;

 (3)
n/a                                        
                                         
                                       .

 4.3.2 The borrower’s insurance coverage should not be lower than this contracted loan amount (Total value / loan value);
insurance period should be 6 month longer than the contacted term (The date of project completion and acceptance to delivery /should be 6 month longer than the contact time), and the insurance will be renewed in accordance with relevant
regulations and the lender’s requirement, the borrower should not interrupt or withdraw the insurance before paying off the loan. 

4.3.3 The premium of the insurance will be borne by the borrower. The borrower must pay the premium on time. If the lender pays the premium on
behalf of the borrower; the lender can recover the premiums and other necessary expenses from the borrower. 
 4.3.4 During the period of
insurance, if an accident occurs under the insurance liability, the borrower shall immediately notify the insurance company and the lender. The insurance compensation should be applied to the repayment of the loan principal and interest first. If
the insurance compensation is not sufficient to repay the loan, the lender can recover or require the borrower to provide guarantee separately. If the lender agrees, the insurance compensation can also be used to restore the losses caused by such
incidents. 

 4.3.5 Other:
N/A                                        
                                         
                       . 

4.4 Financial Indicators Supervision 

If the following cases (3) occur, the borrower shall implement debt protection measures according to the requirements of the lender, otherwise,
the lender can exercise the contract rights agreed in Article 5.3: 
 (1) Actual project operating income below the project assessment by
N/A;  
 (2) Asset-liability ratio of the borrower reach N/A and above; 

(3) Borrower has adverse credit; 
 (4) The
borrower has contingent liability at ratio of more than N/A ; 
 (5) Other:
NA                                        
                                         
                       . 

4.5 Other conventions 
 Both sides
agreed to add the following:
NA                                    . 

5. Legal responsibility 
 5.1 The
following acts of the borrower shall constitute a breach of the contract: 
 (1) Breach of contractual obligations; 

(2) Fail to fulfill the commitments of clause 2 in the contract; 

(3) By oral expression or by action, the borrower indicates it does not want to pay back its matured or un-matured debts; 

(4) Fail to carry or have not fulfilled the obligations under the contract that the borrower and the lender signed. The lender announces that the
borrower defaults in the loan; 
 (5) Other circumstances in which the borrower fails to perform or not fully perform the contract. 

5.2 Under any of the following circumstances, the lender can terminate the contract and other contracts signed by both parties:  

(1) Default of the borrower or guarantor; 

 (2) Repayment ability of the borrower or the guarantor may have significant adverse changed; 

(3) Collateral and pledged property values may suffer significant loss or impairment; 

(4) National policy may have significant adverse adjustment on the loan safety; 

(5) Borrower’s major defaults on other creditors; 

(6) Other situation under the law or mutually agreed to terminate the contract. 

If the Lender terminates the contract, the borrower can object within 7 days from the notification date to the borrower in writing, orally or in other
forms. 
 5.3 If the borrower is in situations as stated in clause 5.1, article 5.2, the lender can take the following remedies:

 (1) Require the borrower or guarantor to correct the breach action or other conducts that have affected the security of the loan within a
specified time limit, to implement other debt protection measures or provide other effective security; 
 (2) When the borrower fails to use,
return the loan as agreed or fails to pay the agreed interest per the contract, the penalty interest and compound interest will be applied and collected until the principal and interest are paid off or discharged; 

(3) Stop issuing loans, recall early repayment of loans that are disbursed and declare that all other borrowings under other loan contracts between
the lender and the borrower become due;  
 (4) To exercise the right of foreclosure to the borrower per law or as agreed; 

(5) To require the borrower to be liable for damages and other liabilities; 

(6) To take the appropriate measures for preservation of assets and other legal measures; 

(7) To publicly disclose the borrower’s default behavior; 

(8) Other relief measures:
N/A                                        
                        . 

5.4 Due to the breach of the borrower, the lender has to collect its loans through ways such as litigation or arbitration. All legal fees, travel,
execution fees, assessment fees and other expenses necessary to collect the debt should be undertaken by the borrower. 

 5.5 If the borrower fulfills all the contract obligations but the lender fails to issue the loan on a timely
basis to the borrower, the borrower should be compensated for actual losses it suffered. 
 6. Other matters 

6.1 Notice  
 Notice and all kinds of
communications under this contract should be sent to the other party according to the recorded mailing address, fax number or other contact ways on the contract. Changes in the contact information of one party shall be promptly notified to the other
party. 
 6.2 Dispute Resolution  

6.2.1 When dispute occurred, the two parties should solve through consultation; when negotiation fails, it should be solved by the
(1) way: 
 (1) To bring a lawsuit where the lender located; 

(2) To the
N/A                                        
     for arbitration. 
 6.2.2 During lawsuit or arbitration, the terms of the contract are not involved in the
dispute should be performed continually. 
 6.3 The contract takes effect  

6.3.1 This contract shall be effective on the date of signing or sealing by the lender and the borrower. 

6.3.2 Signing Location:
Wuxi                                        
                             . 

6.3.3 The contract matters that are not determined in this contract will be decided by negotiation between the two parties. 

6.3.4 This contract has two copies: the borrower has one copy, the lender has one copy ,the guarantor NA copies which
have same effect. 
 Borrower declares: the lender has provided the relevant provisions (particularly bold terms) and has explained the
concepts, contents and the legal effect according to our request for the relevant provisions. We are aware and understand the above provisions. 

					
	 Borrower (Stamp)
	  	Lender (Stamp)	  	
			
	 SEAL

Legal representative / responsible
	  	 SEAL

Legal Representative / responsible
	  	
	 person or authorized agent:
	  	person or authorized agent:	  	
	
	  

			
		  	      Years      Month      Day

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