Document:

October 21, 2019 8-K Exhibit 10.1

Exhibit 10.1

AMENDMENT NO. 3 TO ASSET PURCHASE AGREEMENT

This Amendment No. 3 (this "Amendment") to the Asset Purchase Agreement, dated as of March 6, 2018, by and between Phoenixus AG f/k/a Vyera
Pharmaceuticals AG and Turing Pharmaceuticals AG, a stock corporation organized under the laws of Switzerland ("Seller"), and Seelos Corporation f/k/a Seelos Therapeutics, Inc., a
Delaware corporation ("Buyer"), as amended by that certain Amendment to Asset Purchase Agreement, dated as of May 18, 2018, by and between Buyer and Seller and that certain
Amendment No. 2 to Asset Purchase Agreement, dated as of December 31, 2018, by and between Buyer and Seller (as amended, the "Purchase Agreement"), is made as of October 15,
2019, by and between Buyer and Seller. Capitalized terms used but not otherwise defined herein shall have the meanings attributed to such terms in the Purchase Agreement.

RECITALS

WHEREAS, Section 10.10 of the Purchase Agreement provides that any amendment, modification or waiver of the Purchase Agreement shall only be valid if made in writing and
signed by each of the Parties; and

WHEREAS, the Parties desire to enter into this Amendment and amend the Purchase Agreement as set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and with reference to the above recitals, the parties hereby agree as follows:

ARTICLE 1

AMENDMENTS

1.1    AMENDMENT TO SECTION 1.1.  Section 1.1 of the Purchase Agreement shall be amended by adding the following definitions:

""30-Day VWAP" means the volume weighted average price per share of the Parent Stock on the Principal Trading Market (as reported by Bloomberg L.P. (or
its successor) or, if not available, by another authoritative source mutually agreed by Seller and Buyer) from 9:30 a.m. (New York City time) on November 19, 2019 to 4:00 p.m. (New York City time)
on January 2, 2020."

""Issuance Date" means the earliest date following January 2, 2020 on which the Parent Stock can be issued by Buyer to Seller pursuant to Section 3.2(a)(i)
taking into account any actions that are required to be taken by Buyer's transfer agent, American Stock Transfer & Trust Company, LLC, in connection with such issuance (it being acknowledged and
agreed by the Parties that the Issuance Date shall occur on or before January 7, 2020)."

""Parent" means Seelos Therapeutics, Inc., a Nevada corporation."

""Parent Stock" means the common stock, par value $0.001, of Parent."

""Principal Trading Market" means the trading market on which the Parent Stock is primarily listed on and quoted for trading, which is currently The NASDAQ Capital Market."

""Trading Day" means a day on which the Principal Trading Market is open for trading."

1.2    AMENDMENT TO SECTION 3.2(a)(i). Section 3.2(a)(i) of the Purchase Agreement shall be deleted and replaced to read in its entirety as follows:

"(i)(A) by October 17, 2019, a payment of $750,000 in cash; (B) on or before January 7, 2020, an additional payment of $750,000 in cash; (C) on or before April 3, 2020, an
additional payment of $1,000,000 in cash; (D) on or before July 10, 2020, an additional payment of $1,000,000 in cash; and (E) on the Issuance Date, $2,250,000 payable in Parent Stock, calculated by dividing
$2,250,000 by the 30-Day VWAP; provided that Buyer may elect, in its sole discretion, to pay Seller cash (in whole or in part) in lieu of any Parent Stock contemplated under clause (E) above;
provided further that, as a condition to receiving any shares of Parent Stock pursuant to clause (E) above, Seller shall execute and deliver to Parent a stock purchase agreement in the form attached
hereto as Exhibit I; provided further that, if (1) Parent Stock is suspended or is otherwise not being traded on the Principal Trading Market for any reason, in either case at the time Parent Stock
is required to be issued pursuant to this Section 3.2(a)(i), (2) Buyer is unable to deliver shares of Parent Stock to Seller in accordance with this Section 3.2(a)(i), or (3) Buyer elects not to deliver Parent Stock
pursuant to the first proviso in clause (E) above, Buyer shall pay Seller cash in the above amount in lieu of issuing such Parent Stock."

1.3    AMENDMENT TO SECTION 8.2. Section 8.2 of the Purchase Agreement shall be deleted and replaced to read in its entirety as follows:

"8.2Commercialization. From and after the Closing, Buyer shall use Commercially Reasonable Efforts to seek U.S. Regulatory Approval and commercialize the
Product. In the event of a material breach by Buyer of Section 3.2(a)(i) (it being acknowledged by Buyer that the failure to make any payment of cash or Parent Stock required by Section 3.2(a)(i) in full on or
prior to the applicable due dates shall constitute a material breach of such Section) that is not cured by Buyer within fifteen (15) days of the date of such material breach, Seller may, as its sole and exclusive
remedy for such material breach of Section 3.2(a)(i), elect (by written notice to Buyer delivered to Buyer within thirty (30) days of the date of such material breach) to require Buyer to return all Assets and any
related regulatory approvals, Confidential Information, data, studies, drug product, intellectual property including, without limitation, patents and patent applications (the "Reverted Assets"),
and Assumed Liabilities to Seller for no consideration other than Buyer's acceptance of the Assumed Liabilities. In the event Seller makes such election (a) Buyer shall, unless prohibited by law, rule or
regulation, use Commercially Reasonable Efforts to take all action necessary or advisable (including obtaining consents and approvals as reasonably requested) as

soon as practicable to transfer the Reverted
Assets and the Assumed Liabilities to Seller, (b) Seller shall, unless prohibited by law, rule or regulation, use Commercially Reasonable Efforts to take all action necessary or advisable (including obtaining
consents and approvals as reasonably requested) as soon as practicable to accept the Reverted Assets and the Assumed Liabilities from Buyer and (c) immediately upon such election, this Agreement shall
terminate, except with respect to (i) this Section 8.2 (Commercialization), (ii) Section 8.6 (Confidentiality), and (iii) Article 10 (Miscellaneous). In the event Seller requires Buyer to
return the Reverted Assets and the Assumed Liabilities to Seller in accordance with this Section 8.2, and Buyer returns the Reverted Assets and the Assumed Liabilities to Seller in accordance with this Section
8.2, neither Party shall have any further obligations or liabilities owing to the other Party under this Agreement."

1.4    AMENDMENT TO EXHIBITS. The Purchase Agreement shall be amended to add Exhibit A attached hereto as Exhibit I to the Purchase Agreement.

ARTICLE 2

GENERAL PROVISIONS

2.1    REPRESENTATIONS, WARRANTIES AND COVENANTS.  In connection with the amendments contemplated herein, Buyer: (a) represents and warrants to Seller that the difference
between (i) the aggregate market value of Parent Stock that may be sold by Buyer on Form S-3 pursuant to General Instruction I.B.6 thereof and (ii) the aggregate market value of Parent Stock sold by Buyer
pursuant thereto during the twelve (12) calendar months immediately prior to the date of this Amendment is at least $2,250,000; and (b) agrees that, until the Parent Stock (as defined in the Purchase
Agreement) is issued to Seller in accordance with Section 3.2(a)(i) of the Purchase Agreement, it will not issue any Parent Stock registered under its registration statement on Form S-3 (File No. 333-221285) if
such issuance would result in the difference between (i) the aggregate market value of Parent Stock that may be sold by Buyer on Form S-3 pursuant to General Instruction I.B.6 thereof and (ii) the aggregate
market value of Parent Stock sold by Buyer pursuant thereto during the twelve (12) calendar months immediately prior to such issuance to be less than $2,250,000; provided, however, that the
restriction set forth in the immediately preceding clause (b) shall not apply (I) in the event Buyer irrevocably elects (by prior written notice to Seller) to pay Seller cash in lieu of issuing Parent Stock in accordance
with Section 3.2(a)(i) of the Purchase Agreement, or (II) in the event the aggregate market value of Parent Stock that may be sold by Buyer on Form S-3 is not limited pursuant to General Instruction I.B.6
thereof.

2.2    FULL FORCE AND EFFECT.  Except as expressly set forth herein, the Purchase Agreement remains unchanged and in full force and effect. This Amendment shall be deemed an
amendment to the Purchase Agreement and shall become effective when executed and delivered by the parties hereto. Upon the effectiveness of this Amendment, all references in the Purchase Agreement to
"the Agreement" or "this Agreement," as applicable, shall refer to the Purchase Agreement, as modified by this Amendment.

2.3     COUNTERPARTS. This Amendment may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute a single document. Counterparts may be
delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart
so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

2.4    GOVERNING LAW; FORUM. This Amendment and the relationship of the Parties shall be governed by and construed and interpreted in accordance with the laws of the State of New York
irrespective of the choice of laws principles of the State of New York. Any disputes relating to the transactions contemplated by this Amendment shall be heard in the State and Federal courts located in the
County of New York in the State of New York.

2.5    AMENDMENT. Any amendment, modification or waiver of this Amendment shall only be valid if made in writing and signed by each of the Parties.

 [SIGNATURE PAGE FOLLOWS]

   

   

   

   

   

IN WITNESS WHEREOF, the Parties, intending to be bound hereby, have executed this Amendment as of the date first written above.

SELLER:

PHOENIXUS AG

By: /s/ Averill Powers

        Name: Averill Powers

        Title:Chief Executive Officer

BUYER:

SEELOS CORPORATION

By: /s/ Raj Mehra

        Name:Raj Mehra 

        Title:Chief Executive Officer

   

   

   

   

   

EXHIBIT A

 

FORM OF STOCK PURCHASE AGREEMENT

   

   

   

   

   

   

   

   

   

   

SEELOS THERAPEUTICS, INC.

STOCK PURCHASE AGREEMENT

THIS STOCK PURCHASE AGREEMENT (this "Agreement") is made and entered into as of January 2, 2020, by and between SEELOS THERAPEUTICS, INC.,
a Nevada corporation (the "Company"), and Phoenixus AG, a stock corporation organized under the laws of Switzerland (the "Purchaser").

RECITALS

WHEREAS, Seelos Corporation, a wholly-owned subsidiary of the Company, and the Purchaser are parties to that certain Asset Purchase Agreement, dated March 6, 2018, as
amended by that certain Amendment to Asset Purchase Agreement, dated as of May 18, 2018, that certain Amendment No. 2 to Asset Purchase Agreement, dated as of December 31, 2018 and that certain
Amendment No. 3 to Asset Purchase Agreement, dated as of October 15, 2019 (as amended, the "Asset Purchase Agreement"); and

WHEREAS, in accordance with Section 3.2(a)(i)(E) of the Asset Purchase Agreement, the Purchaser desires to purchase from the Company, and the Company desires to sell to
the Purchaser, an aggregate of [●] shares (the "Shares") of Common Stock of the Company ("Common Stock"), which number of shares is equal to
$2,250,000 divided by the 30-Day VWAP (as defined in the Asset Purchase Agreement) as of January 2, 2020, on the terms and conditions set forth herein.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises, representations, warranties and covenants hereinafter set forth and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.       SALE AND PURCHASE.

Subject to the terms and conditions hereof, the Company hereby issues and sells to the Purchaser, and the Purchaser hereby purchases from the
Company, the Shares, in full satisfaction of the Company's obligation to issue any shares of Common Stock to the Purchaser as provided under Section 3.2(a)(i)(E) of the Asset Purchase Agreement.

2.       REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

The Company hereby represents and warrants to the Purchaser that:

2.1   Organization. The Company is a business entity duly organized, validly existing and in good standing under the laws of the State of Nevada. The Company has the requisite
corporate power and authority to own, lease and operate the properties now owned, leased and operated by it and to carry on its business as currently conducted. The Company is duly qualified

to do business
as a foreign entity in each jurisdiction in which the nature of its business or the character of its properties makes such qualification necessary, except where the failure to do so would not have a material adverse
effect on the Company.

2.2   Authorization. The Company has the requisite power and authority to enter into this Agreement and to perform its obligations hereunder. The Company has taken all
necessary action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder. This Agreement has been duly and validly executed and delivered by the
Company and is the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with its terms. The Shares are validly issued, fully paid and nonassessable, free of any
liens or encumbrances and issued in compliance with all applicable federal and state securities laws.

2.3   Registration Statement. The Company has prepared and filed with the Securities and Exchange Commission (the "SEC") in accordance with the
provisions of the Securities Act of 1933, as amended (the "Securities Act"), a registration statement on Form S-3 (File No. 333-221285) (the "Registration
Statement"). The Registration Statement was declared effective by order of the SEC on December 7, 2017. The Registration Statement is effective pursuant to the Securities Act and available for
the issuance of the Shares thereunder, and the Company has not received any written notice that the SEC has issued or intends to issue a stop order or other similar order with respect to the Registration
Statement or that the SEC otherwise has suspended or withdrawn the effectiveness of the Registration Statement. The "Plan of Distribution" section of the Registration Statement permits the
issuance of the Shares under the terms of this Agreement.

3.       REPRESENTATIONS AND WARRANTIES OF THE PURCHASER.

The Purchaser hereby represents and warrants to the Company that:

3.1   Organization. The Purchaser is a business entity duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is formed or incorporated.
The Purchaser has the requisite power and authority to own, lease and operate the properties now owned, leased and operated by it and to carry on its business as currently conducted. The Purchaser is duly
qualified to do business as a foreign entity in each jurisdiction in which the nature of its business or the character of its properties makes such qualification necessary, except where the failure to do so would not
have a material adverse effect on the Purchaser.

3.2   Authorization. The Purchaser has the requisite power and authority to enter into this Agreement and to perform its obligations hereunder. The Purchaser has taken all
necessary action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder. This Agreement has been duly and validly executed and delivered by the
Purchaser and is the legal, valid and binding obligations of the Purchaser, enforceable against the Purchaser in accordance with its terms.

3.3   Investment Representations. 

(a)    The Purchaser has substantial experience in evaluating and investing in private placement transactions of securities of companies in a similar stage of development as the Company
so that it is capable of evaluating the merits and risks of its investment in the Company and has the capacity to protect its own interests. The Purchaser can bear the economic risk of this investment indefinitely.

(b)    The Purchaser represents that by reason of its, or of its management's, business or financial experience, the Purchaser has the capacity to protect its own interests in connection
with the transactions contemplated in this Agreement. 

(c)    The Purchaser represents that it is an accredited investor within the meaning of Regulation D under the Securities Act.

(d)    The Purchaser has received all the information it considers necessary or appropriate for deciding whether to purchase the Shares. The Purchaser has had an opportunity to discuss
the Company's business, management and financial affairs with directors, officers and management of the Company and has had the opportunity to review the Company's operations and facilities and the
Company's public filings with the SEC. The Purchaser has also had the opportunity to ask questions of, receive answers from and obtain additional information from (to the extent the Company possessed such
information or could acquire it without unreasonable effort or expense) the Company and its management regarding the terms and conditions of this investment. The Purchaser acknowledges and agrees that
the Company neither makes nor has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 2.

(e)    The residency of the Purchaser (or in the case of a partnership or corporation, such entity's principal place of business) is correctly set forth on the signature pages hereto. If the
Purchaser is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), the Purchaser hereby represents that it has satisfied itself as to the full
observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Shares or any use of this Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the
Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of
the Shares. The Company's offer and sale and the Purchaser's subscription and payment for and continued beneficial ownership of the Shares will not violate any applicable securities or other laws of the
Purchaser's jurisdiction.

(f)    The Purchaser understands that no U.S. federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of
the Shares or the fairness or suitability of an investment in the Shares nor have such authorities passed upon or endorsed the merits of the offering of the Shares.

(g)    At no time prior to the date of this Agreement has the Purchaser or any of its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or
indirectly, any (i) "short sale" (as such term is defined in Rule 200 of Regulation SHO of the Securities Exchange Act of 1934, as amended) of the Common Stock or (ii) hedging transaction, which
establishes a net short position with respect to the Common Stock.

4.       COVENANTS

4.1   Prospectus Supplement.  The Company agrees that it shall, within the time required under Rule 424(b) under the Securities Act, file with the SEC a prospectus
supplement of the Company relating to the Shares (the "Prospectus Supplement") pursuant to Rule 424(b)(5) under the Securities Act. The Purchaser shall furnish to the Company
such information regarding itself, the shares of Common Stock beneficially owned by it and the intended method of distribution thereof, including any arrangement between the Purchaser and any other person
relating to the sale or distribution of the Shares, as shall be reasonably requested by the Company in connection with the preparation and filing of the Prospectus Supplement, and shall otherwise cooperate with
the Company as reasonably requested by the Company in connection with the preparation and filing of the Prospectus Supplement with the SEC.

5.       MISCELLANEOUS

5.1   Survival. The representations, warranties and covenants of the Company and the Purchaser contained in or made pursuant to this Agreement shall survive the
execution and delivery of this Agreement and the closing of the transactions contemplated hereby, and shall in no way be affected by any investigation of the subject matter thereof made by or on behalf of the
Purchaser or the Company, as the case may be.

5.2   Notices. All notices required or permitted hereunder shall be in writing and be given by personal delivery, by an internationally recognized overnight carrier, by registered or
certified mail, postage prepaid with return receipt requested or by electronic mail at the respective addresses set forth on the signature pages to this Agreement or at such other addresses as the Company or
the Purchaser, as applicable, may designate by ten days' advance written notice to the other party hereto. Notices delivered personally shall be deemed communicated as of actual receipt; notices sent via
overnight courier shall be deemed received three (3) Business Days following sending; and notices mailed shall be deemed communicated as of seven (7) Business Days after mailing. For purposes of this
Agreement, "Business Day" means any day other than a Saturday, Sunday or a day on which banking institutions in the State of New York are authorized or obligated by law or
executive order to close.

5.3   Assignability; No Third Party Beneficiaries. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns. Neither party hereto may assign its respective rights or delegate its respective obligations under this Agreement without the express prior written consent of the
other party hereto.  Nothing in this Agreement shall be deemed to create any third party beneficiary rights in or on behalf of any other person.

5.4   Governing Law; Forum. This Agreement and the relationship of the parties hereto shall be governed by and construed and interpreted in accordance with the laws of the
State of New York irrespective of the choice of laws principles of the State of New York. Any disputes relating to the transactions contemplated by this Agreement shall be heard in the State and Federal courts
located in the County of New York in the State of New York.

5.5   Expenses. Each party hereto shall pay all of its own fees and expenses (including all legal, accounting and other advisory fees) incurred in connection with the negotiation
and execution of this Agreement and the arrangements contemplated hereby.

5.6   Amendments. Any amendment, modification or waiver of this Agreement shall only be valid if made in writing and signed by each of the
parties hereto.

5.7   Severability. If any provision of this Agreement shall be held invalid, illegal or unenforceable, the validity, legality or enforceability of the other provisions of this Agreement
shall not be affected thereby, and there shall be deemed substituted for the provision at issue a valid, legal and enforceable provision as similar as possible to the provision at issue.

5.8   Entire Agreement. This Agreement and the Asset Purchase Agreement contain the entire agreement between the parties hereto with respect to the subject matter hereof
and supersede all previous agreements, negotiations, discussions, writings, understandings, commitments and conversations with respect to such subject matter.

5.9   Headings. The headings in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

5.10   Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute a single document. Counterparts
may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any
counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

5.11   Representation by Counsel; Interpretation. The Purchaser and the Company each acknowledge that it has been represented by its own legal counsel in connection with this
Agreement and the transactions contemplated by this Agreement. Accordingly, any rule of law, or any legal decision that would require interpretation of any claimed ambiguities in this Agreement against the
party that drafted it, has no application and is expressly waived. The provisions of this Agreement shall be interpreted in a reasonable manner to effect the intent of the Purchaser and the Company.

[Signature Page Follows]

   

IN WITNESS WHEREOF, the parties have executed this STOCK PURCHASE AGREEMENT as of the date first set forth above.
THE COMPANY:

SEELOS THERAPEUTICS, INC.

 

By: ___________________________________

   Name: Raj Mehra, Ph.D.

Title: President and Chief Executive Officer

   Address: 300 Park Avenue, 12th Floor

                 New York, NY 10022

   Email: raj.mehra@seelostx.com

 

 

THE PURCHASER:

PHOENIXUS AG

By: ___________________________________

   Name: Averill L. Powers

   Title: Chief Executive Officer

Address: 600 Third Avenue, 10th Floor

                 New York, NY 10016

Email: apowers@vyera.comExhibit 10.13

 

 

 

 

 

 

 

 

China
Merchants Bank Co., Ltd.

 

Shanghai
Branch

 

 

 

 

 

 

Credit
Granting Agreement

 

 

 

 

     

     

    

 

Credit Granting Agreement

 

Credit grantor: China Merchants Bank Co.,
Ltd., Shanghai Century Avenue Branch (hereinafter referred to as “Party A”)

 

Person-in-charge: Chen Siqing

 

Credit applicant: CLPS
Incorporation (hereinafter referred to as “Party B”)

 

Legal representative/person-in-charge:
Yang Xiaofeng

 

Upon application by Party B, Party A agrees
to provide a line of credit (LOC) to Party B. Upon fully consultation, Party A and Party B have reached a consensus in respect
of the following terms and conditions in accordance with the relevant laws and regulations, and hereby enter into this agreement.

 

1.
Line of Credit

 

1.1 Party A shall
grant Party B a LOC of RMB Ten Million yuan (or equivalent amount of other currencies, which shall be translated with the
exchange rate published by Party A on the date when the specific business occurs, the same below), including revolving LOC
and/or one-time LOC.

 

The varieties of credit
granting under the LOC includes but is not limited to credit for loan/order-related loan, trade financing, bill discounting, commercial
bill acceptance, guaranteed discount for commercial acceptance bills, international/domestic letter of guarantee, customs duties
and dues payment guarantee, corporate account overdraft, derivative transaction and gold leasing or the combination thereof.

 

The revolving LOC refers
to the maximum amount of total principal balance of the credit for one or more business varieties mentioned in the preceding paragraph
granted by Party A to Party B occurred during the credit period, which can be repeatedly used in a revolving manner.

 

The one-time LOC means
that the cumulative amount of credit for the business varieties mentioned in the preceding paragraph granted by Party A to Party
B occurred during the credit period shall not exceed the one-time LOC approved by Party A. Party B shall not use the one-time LOC
in a revolving manner, and the amount of each credit granting applied by Party B under the LOC shall offset the amount of one-time
LOC until the amount of LOC is fully offset by the accumulated amount of all the credit granting.

 

“Trade financing”
includes but is not limited to international/domestic letters of credit, import bill advance, delivery against bank guarantee,
import bill advance under collection, packaged loans, export bill advance, export negotiation, export bill advance under collection,
remittance financing for import/export, and credit insurance financing, factoring, bill avalization and other business varieties.

 

1.2 If Party A
conducts import factoring or domestic buyer factoring with Party B as the debtor, the account receivable owed by Party B
transferred to Party A in such business shall offset the above-mentioned LOC; if Party B applies for domestic seller
factoring or export factoring to Party A, the basic acquisition price (basic acquisition funds) provided by Party A to Party
B using its own funds or other legal funds shall offset the above-mentioned LOC.

 

     

     

    

 

1.3 Where Party A, according
to the needs of its internal processes, entrusts other branches of China Merchants Bank to issue a subsidiary letter of credit
to the beneficiary after issuing the master letter of credit, the bill advance and delivery against bank guarantee that occurs
under such letter of credit shall offset the above-mentioned LOC;

 

When the import letter
of credit is used, if the import bill advance is actually incurred later under the same letter of credit, the import letter of
credit and import bill advance shall offset the same amount at different stages. That is, when the import bill advance occurs,
the amount recovered after the letter of credit is paid, if re-used for import bill advance, shall be deemed to offset the same
amount under the original import license.

 

1.4 The LOC
exclude the amount of credit corresponding to the security deposit or pledge of deposit provided by Party B or a third party
for a single specific transaction under this Agreement, the same below.

 

1.5 The unsettled
balance for business conducted under the (insert the name and No. of agreement) previously entered by Party A (or Party
A’s subsidiary) and Party B are automatically incorporated in this Agreement and shall offset the LOC under this
Agreement.

 

2. Credit Period 

 

The credit period shall
be 12 months, from July 11, 2018 to July 10, 2019.Party B shall submit application for using the credit line to Party A during
the credit period, and Party A does not accept the application for using the credit line submitted by Party B after the expiration
of the credit period, except as otherwise provided in this Agreement.

 

3. Types and Scope of Credit Line

 

The types of LOC under
this Agreement (revolving LOC or one-time LOC), the applicable types of credit granting, the amount of LOC under each type of credit
granting, the transferability of different types of credit granting, and the specific conditions for use, etc. are subject to the
approval of Party A. If Party A makes adjustments to its original approval opinions according to the application of Party B during
the credit period, the subsequent approval opinions issued by Party A constitute supplements and changes to the original approval
opinions, and so on.

 

4. Use of LOC

 

4.1 The specific business
agreement (whether a single agreement/application or a framework agreement) signed by Party A and Party B for each specific business
under the LOC constitutes an integral part of the Credit Granting Agreement and they jointly specify the rights and obligations,
etc. related to the specific business.

 

Party B must apply for
using the LOC on a case-by-case basis and submit the materials requested by Party A. Party A shall examine and approve the application
one by one. Party A has the right to comprehensively consider whether to approve based on its internal management requirements
and Party B’s operation, and has the right to refuse Party B’s application unilaterally, without bearing any form of legal responsibility
for Party B. In the event of any inconsistency between this paragraph and other terms, the agreement in this paragraph shall prevail.

 

    	 	2	 

     

    

 

The business elements
such as the specific amount, interest rate, term, purpose, and expenses of each loan or other credit granting shall be determined
by the specific business agreement, the business certificate confirmed by Party A, and the business record of Party A’s system.

 

4.2 The using
period of each loan or other credit granting under the LOC shall be determined according to Party B’s business needs and
Party A’s business management rules. The expiration date of specific business may be later than the expiration date of credit
period (unless otherwise requested by Party A).

 

4.3
During the credit period, Party A shall have the right to assess Party B’s operation and financial status on a regular basis
every year, and adjust the LOC available for Party B to use based on the assessment (if this provision is applicable, please
place a √ in the ☐).

 

5. Guarantee Provisions

 

5.1 All the debts owed
by Party B to Party A under this Agreement shall be jointly and severally guaranteed by Lin Minghui, Deng Zhaohui, Yang Xiaofeng
and Pan Yan, and they shall issue a separate letter of guarantee to Party A.

 

At
the same time, the working capital loan limit of RMB Three Million yuan under this Agreement is jointly and severally guaranteed
by the Shanghai Small and Medium-sized Enterprises Policy Financing Guarantee Fund Management Center. The guarantee amount is not
less than 70% of the principal amount of the single loan to Party B, with the specific proportion being subject to the Guarantee
Contract signed by Party A and the Shanghai Small and Medium-sized Enterprises Policy Financing Guarantee Fund Management Center
when Party B use the working capital loan limit.

 

5.2 All debts owed by
Party B to Party A under this Agreement shall be pledged by the property it owns or has the right to dispose of according to law,
and the two parties shall sign a guarantee contract separately.

 

If the guarantor fails
to sign the guarantee contract and complete the guarantee procedures in accordance with the provisions of this clause (including
the debtor of account receivable raises a defense before the receivable is pledged), Party A has the right to refuse to provide
credit to Party B.

 

5.3 Under the circumstances
that the guarantor provides the guarantee for any debt owed by Party B to Party A under this Agreement using real estate, Party
B shall immediately notify Party A if it knows that the collateral has been or may be included in the government demolition and
land expropriation plan, and press the guarantor to continue to provide guarantees for Party B’s debts in accordance with the guarantee
contract using the compensation provided by the expropriator and complete the corresponding guarantee procedures in a timely manner,
or provide other guarantee measures required and approved by Party A.

 

Under the circumstances
stated in the preceding paragraph, if the guarantee needs to be reset or other guarantee measures are taken, the relevant expenses
incurred shall be borne by the guarantor, with Party B being jointly and severally liable for the expenses. Party A has the right
to deduct these fees directly from Party B’s account.

 

    	 	3	 

     

    

 

6. Rights and Obligations of Party B

 

6.1 Party B shall have
right to:

 

6.1.1 Request Party
A to provide loans or other credits within the LOC in accordance with the conditions specified in this Agreement;

 

6.1.2 Use the LOC as
stipulated in this Agreement;

 

6.1.3 Request Party
A to keep confidential the production, operation, property, account and other information provided by Party B, unless otherwise
required by laws and regulations or otherwise required by the regulatory authority; and

 

6.1.4 Transfer the debt
to a third party after obtaining the consent of Party A.

 

6.2 Party B shall bear
the following obligations:

 

6.2.1 It shall truthfully
provide documents and information required by Party A (including but not limited to providing its true financial books/statements
and annual financial reports in the period required by Party A, major decisions and changes in production, operation and management,
withdrawal/use of funds, information related to guarantee, etc.), and all the bank accounts, account numbers and balance of deposits
and loans, as well as cooperate with Party A’s investigation, review and inspection.

 

6.2.2 It shall accept
the supervision of Party A on its use of credit funds and related production operations and financial activities.

 

6.2.3 It shall use loans
and/or other credits in accordance with the provision of this Agreement and the specific contract and/or promised purposes.

 

6.2.4 It shall repay
the principal, interest and expenses of loans, advances and other debt under credit granting in full and on time in accordance
with the provisions of this Agreement and each specific contract.

 

6.2.5 It shall obtain
Party A’s written consent if transferring all or part of the debts under this Agreement to a third party.

 

6.2.6 Under the following
circumstances, it shall immediately notify Party A and actively cooperate with Party A to implement the guarantee measures for
the safe repayment of principal, interest and expenses of loans, advances and other debt under credit granting:

 

6.2.6.1 Occurrence of
major financial losses, asset losses or other financial crisis;

 

6.2.6.2 Providing a
loan or guarantee for a third party, or providing a collateral (pledge) guarantee with its own property (right);

 

6.2.6.3 Suspension of
business, revocation or cancellation of business license, filing or being filed for bankruptcy, dissolution, etc;

 

    	 	4	 

     

    

 

6.2.6.4 The controlling
shareholder and other related companies fall into a major operational or financial crisis, which affects their normal operation;

 

6.2.6.5 The amount of
the related transaction with the controlling shareholder and other related companies exceeds 10% of the net assets of Party B;

 

6.2.6.6 Occurrence of
any litigation, arbitration or criminal or administrative penalty that has a material adverse effect on its business or property
status; and

 

6.2.6.7 Occurrence of
other significant events that may affect its ability to pay its debts.

 

6.2.7 It shall not neglect
to manage and exercise their mature creditor’s right, or dispose of existing primary property improperly or without consideration.

 

6.2.8 It shall obtain
the written consent of Party A before carrying out major events such as merger (M&A), division, restructuring, joint
venture (cooperation), transfer of property (share) rights, joint-stock reform, foreign investment, and increase of debt financing.

 

6.2.9
In accordance with Party A’s request, it shall: (place a “√” in ☐)

 

●     Effect
insurance for its core assets and designate Party A as the first-order beneficiary;

 

●     Not
sell or use as collateral the /       assets designated by Party A before the settlement of the
debt under the credit granting;

 

●     Impose
the following restrictions on the dividends paid to its shareholders as required by Party A before the settlement of the debt
under the credit granting: /      ;

 

●     Others:
/      .

 

6.2.10
In the event of dynamic pledge of accounts receivable, it shall guarantee that the LOC balance at any point during the credit
period is lower than /       % of the balance of pledged accounts receivable, otherwise must provide
new accounts receivable recognized by Party A for pledge or pay a security deposit until the balance of the accounts receivable
pledged ×/     % + valid security
deposit > LOC balance.

 

6.2.11 In the event
that Party B provides a security deposit for pledge, it shall be obliged to add the corresponding amount of security deposit or
provide other guarantee in accordance with Party A’s request if the balance of the security deposit falls short of _/_%
of the specific business amount due to exchange rate fluctuations.

 

6.2.12 It shall ensure
that the payment for goods under the import transaction are collected through the account designated by Party A; in the event of
export negotiation, transfer the notes and/or documents under the letter of credit to Party A.

 

7. Rights and Obligations of Party A

 

7.1 Party A shall have:

 

7.1.1 Right to request
Party B to repay the principal, interest and expenses of the loan, advance and other debt under the credit granting under this
Agreement and the specific contract in full and on time;

 

    	 	5	 

     

    

 

7.1.2 Right to request
Party B to provide information related to the use of the LOC;

 

7.1.3 Right to know
the production and operation and financial activities of Party B;

 

7.1.4 Right to supervise
Party B’s use of loans and/or other credits for the purposes specified in this Agreement and each specific contract; directly suspend
or limit the corporate online banking function of Party B’s account when the business needs it (including but not limited to closing
the online banking, presetting the list of payment targets/single payment limit/phased payment limit, etc.), restrict the sale
of settlement documents, or restrict telephone banking, mobile banking and other non-counter payment and universal cash withdrawing
functions of Party B’s account;

 

7.1.5 Right to entrust
other agencies of China Merchants Bank located at the place where the beneficiary is located to issue subsidiary letter of credit
to the beneficiary, according to the needs of its internal processes, after accepting Party B’s application for the opening of
letter of credit;

 

7.1.6 Right to deduct
directly from the account opened by Party B at any branch of China Merchants Bank to repay the debts owed by Party B under this
Agreement and each specific contract (when the debt under the credit granting is not in RMB, it has the right to deduct directly
from the RMB account of Party B and purchase foreign exchange at the exchange rate published by Party A to repay the principal,
interest and expenses under the credit granting);

 

7.1.7 Right to transfer
its creditor’s rights owed by Party B and notify Party B of the transfer and collect the debt in such manner as it deems appropriate,
including but not limited to by fax, posts, personal delivery, and announcement in public media;

 

7.1.8 Right to supervise
the account of Party B and entrust other agencies of China Merchants Bank other than Party A to supervise Party B’s account, and
control the payment of loan funds according to the loan purpose and payment scope agreed by both parties; and

 

7.1.9 Other rights set
out in this Agreement.

 

7.2 Party A shall bear
the following obligations:

 

7.2.1 It shall grant
loans or other credits to Party B within the LOC in accordance with the conditions stipulated in this Agreement and each specific
contract; and

 

7.2.2 It shall keep
confidential the information of assets, finance, production and operation of Party B, except as otherwise provided by laws and
regulations or otherwise required by the regulatory authority.

 

8. Party B specifically undertakes:

 

8.1 That it is a legal
person duly incorporated and validly existing under the laws of PRC and have full civil capacity to sign and perform this Agreement,
and its registration and annual report publicity procedures are true, legal and valid;

 

    	 	6	 

     

    

 

8.2 That it has been
fully authorized by the Board of Directors or any other authorized body to sign and fulfill this Agreement;

 

8.3 That the documents,
information, and vouchers provided by it regarding Party B, the guarantor, the mortgagor (pledgor), and the collateral (pledged
property) are true, accurate, complete, and valid, without any significant errors that are inconsistent with the facts or omissions
of any significant facts;

 

8.4 To strictly abide
by covenants set out in the specific business agreements and various letters and related documents issued to Party A;

 

8.5 That at the time
of signing this Agreement, there was no litigation, arbitration or criminal or administrative punishment that may have significant
adverse consequences for Party B or Party B’s major property, and such litigation, arbitration or criminal or administrative penalties
will not occur during the execution of this Agreement; in the event of occurrence, Party B shall immediately notify Party A;

 

8.6 To strictly abide
by the national laws and regulations in business activities, carry out various business in strict accordance with the business
scope stipulated by the business license of Party B or approved according to law, and go through the formalities for registration,
annual inspection, and the extension of term of business operation, etc. on time;

 

8.7 To maintain or enhance
the management level, ensure the value preservation and appreciation of existing assets, and not to waive any mature claims or
dispose of existing major assets improperly or without consideration;

 

8.8
That without the permission of Party A, it shall not pay off other long-term debts in advance,               ,
and               ;

 

8.9 That at the signing
and during the performance of this Agreement, no other significant events occur to Party B that affect the performance of its
obligations under this Agreement;

 

8.10 That, during the
validity period of this Agreement, if Party B’s annual main business revenue falls short of RMB 300 million yuan, the funds withdrawn
under this Agreement shall not exceed RMB 8 million yuan;

 

8.11 That, during the
validity period of this Agreement, it shall notify Party A in writing in advance of the profit distribution, and its undistributed
profit shall not be less than 2 times of the balance of LOC under this Agreement (excluding the conversion of profit into registered
capital).

 

8.12
/                       .

 

9. Other expenses

 

In the event that this
agreement needs to be notarized (excluding mandatory notarization) or other services provided by a third party, the relevant expenses
shall be borne by the party as the client in the commission. If the two parties jointly act as the client, they shall each bear
50%.

 

    	 	7	 

     

    

 

In the event that Party
B cannot repay the debts owed to Party A under this Agreement, Party B shall bear attorney fees, legal fees, travel expenses, announcement
fees, delivery fees and all other expenses incurred by Party A to realize the creditor’s rights. Party B authorizes Party A to
directly deduct such expenses from Party B’s bank account in Party A. If there are any shortfalls, Party B undertakes to repay
the amount after receiving the notice from Party A, and Party A does not need to provide any proof.

 

10. Event of Default and the Settlement

 

10.1 It shall be deemed
an event of default if:

 

10.1.1 Party B fails
to perform or breaches the obligations set out in this Agreement;

 

10.1.2 The information
in the representations or undertakings made by Party B under this Agreement is untrue or incomplete, or Party B breaches the requirement
and does not make correction as required by Party A;

 

10.1.3 Party B commits
a significant breach of a legally valid contract signed with other creditors and fails to satisfactorily resolve it within three
months from the date of breach;

 

The aforesaid significant
breach of contract means that due to Party B’s breach, its
creditors have the right to claim compensation of more than RMB/              from Party B;

 

10.1.4 Party B encounters
significant obstacles in listing its shares on the New Third Board or suspends its listing application; Party B is subject to warning
letter, ordered corrections, restrictions on securities account trading and other self-regulatory measures for more than three
times or subject to disciplinary punishment, termination of listing, etc; or

 

10.1.5 Other events
occurs that, in the opinion of Party A, damage its legitimate rights and interests.

 

10.2 If one of the following
circumstances occurs to the guarantor, Party A believes that it may affect the guarantor’s guarantee capacity, and requires the
guarantor to eliminate the adverse effects caused by it, or requires Party B to increase or replace the guarantee, but the guarantor
and Party B fail to cooperate, it shall be deemed an event of default:

 

10.2.1 A circumstance
similar to those described in Clause 6.2.6 of this Agreement occurs, or the consent of Party A is not obtained when the circumstances
described in Clause 6.2.8 occur;

 

10.2.2 When the irrevocable
letter of guarantee is issued, the actual guarantee capacity is concealed, or the authorization of relevant authority is not obtained;

 

10.2.3 Failure to go
through formalities for the annual inspection registration and the extension of term of business operation; or

 

10.2.4 Neglect to manage
and exercise their mature creditor’s right, or disposal of existing primary property improperly or without consideration.

 

    	 	8	 

     

    

 

10.3 If one of the following
circumstances occurs to the mortgagor (or pledgor), Party A believes that it may result in the invalidity of the mortgage (or pledge)
or the shortfall in the value of collateral (pledged property), and requires the mortgagor (or pledgor) to eliminate the adverse
effects caused by it, or requires Party B to increase or replace the mortgage (or pledge), but the mortgagor (or pledgor) and Party
B fail to cooperate, it shall be deemed an event of default:

 

10.3.1 The mortgagor
(or pledgor) does not own or has no right to dispose of the collateral (or pledged property), or there is dispute over the ownership;

 

10.3.2 The collateral
(or pledged property) has been rented, seized, detained, supervised, or is subject to legal right of priority (including but not
limited to priority of construction project), and / or such circumstances are concealed;

 

10.3.3 The mortgagor
transfers, leases, re-collateralizes the collateral or dispose of it in any other improper manner without the written consent of
Party A, or although the disposal of the collateral is consented to by Party A, the proceeds from the disposal are not used to
repay the debt owed by Party B to Party A as required by Party A;

 

10.3.4 The mortgagor
does not properly keep, maintain and repair the collateral, and thus the value of the collateral is obviously impaired; or the
mortgagor’s acts directly jeopardize the collateral, resulting
in a decrease in the value of the collateral; or the mortgagor does not effect insurance for the collateral during the mortgage
period according to Party A’s requirements;

 

10.3.5 The collateral
has been or may be included in the scope of government demolition and expropriation, and the mortgagor fails to immediately inform
Party A and fulfill the relevant obligations as stipulated in the mortgage contract; or

 

10.3.6 Where the mortgagor
uses its real estate mortgaged to China Merchants Bank to provide the residual value mortgage for the business under this Agreement,
the mortgagor settles the personal mortgage loan in advance without the consent of Party A before Party B pays off the debt under
this Agreement.

 

10.4 When the guarantee
under this Agreement includes the pledge of accounts receivable, if the debtor of the accounts receivable obviously deteriorates
in operation, transfers property/withdraws funds to avoid debts, colludes with the pledgor to change path for the payment of receivables,
causing that the collected funds are not transferred to the account designated for receivable collection, loses business reputation,
loses or may lose the ability to perform contract, or other significant events affecting the debtor’s solvency occurs, Party A
has the right to request Party B to provide corresponding guarantee or provide new valid receivables for pledge; if Party B fails
to provide, it shall be deemed an event of default.

 

10.5 In the event of
any of the above default, Party A shall have the right to adopt the following measures, separately or simultaneously:

 

10.5.1 Reducing the
LOC under this agreement, or stop the use of remaining LOC balance;

 

    	 	9	 

     

    

 

10.5.2 Recovering in
advance the principal, interest and related expenses of loans issued within the LOC;

 

10.5.3 For bills that
have been accepted by Party A during the credit period, or letter of credit (including subsidiary letter of credit issued by branches
entrusted by Party A), letter of guarantee, and letter of delivery against bank guarantee, etc. that have been issued by Party
A , Party A may request Party B to increase the amount of the security deposit (regardless of whether Party A has made advance
payment), or transfer the funds in other accounts opened by Party B at Party A into its security deposit account as a security
deposit for the settlement of Party A’s advances under this Agreement, or hand over the corresponding funds to a third party as
a security deposit for Party A’s advance payment for Party B;

 

10.5.4 For the unpaid
accounts receivable transferred from Party B to Party A under factoring, Party A has the right to request Party B to immediately
fulfill repurchase obligations and take other recovery measures in accordance with the specific business agreements; for the accounts
receivable transferred from Party B to Party A under factoring, Party A has the right to seek recourse from Party B.

 

10.5.5 Party A may directly
request Party B to provide other property accepted by Party A as a new guarantee, and if Party B fails to provide new guarantee
as required, a penalty shall be levied against it at a rate of /            % of the LOC amount under this Agreement.

 

10.5.6 Directly freezing/deducting
deposits from any settlement account and/or other accounts opened by Party B at China Merchants Bank; and

 

10.5.7 Seeking recourse
in accordance with this Agreement.

 

10.6 For the funds obtained
by Party A through seeking recourse, the repayment sequence shall be from the earliest to latest according to the actual maturity
date of each credit. For each credit, the repayment sequence shall be from expenses, penalty, compounded interest, penalty interest,
interest, to the principal of credit, until all the principal, interests and related expenses are paid off.

 

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

 

11. Change and Rescission of Contract

 

This Agreement may be
changed and rescinded upon negotiation and conclusion of a written agreement by the Parties hereto. This Agreement shall still
be valid before the conclusion of the written agreement. Any Party shall not change, amend or rescind this Agreement unilaterally.

 

12. Miscellaneous 

 

12.1 During
the term of this Agreement, any tolerance, grace period granted by Party A for Party B’s breach of contract or delay
of performance, or any delay of Party A in performing any rights or interests under this Contract shall not damage, affect,
or limit any rights and interests of Party A as a creditor vested by relevant laws and this Agreement, and shall neither
be deemed as Party A’s consent or approval to
any breach of this Agreement by Party B, nor be deemed as Party A’s
waiver of right to take action against any existing or future default.

 

    	 	10	 

     

    

 

12.2 In the event
that this Agreement or any part thereof becomes null and void for any reason, Party B shall still be liable for repaying all
the debt owed to Party A under this Agreement. Under the above-mentioned circumstances, Party A shall have the right to
terminate this Agreement and promptly claim for the repayment of all the debt owed by Party B under this Agreement. In the
event that any change in the applicable laws and policy requirements causes the increase of costs for Party A to perform the
obligations under the Agreement, Party B shall compensate Party A for the new costs as required by Party A.

 

12.3
Notices, requests or other documents related to this Agreement between Party A and Party B shall be sent in writing (including
but not limited to by letters, faxes, e-mails, Party A’s online banking, SMS or WeChat).

 

12.3.1 For the delivery
by hand (including but not limited to delivery by lawyer/notary, express, etc.), the instrument shall be deemed to have been served
when the addressee signs the receipt (in the event of rejection by the addressee, it shall be deemed to have been served on the
date of rejection/return or the 7th day after mailing ( whichever is earlier)); for the delivery by mail, the instrument shall
be deemed to have been served at the 7th day after mailing; for the delivery by fax, email, Party A’s online banking notice, SMS,
WeChat or other electronic means, the instrument shall be deemed to have been served at the date when the sender’s corresponding
system displays that the transmission is successful.

 

For the notice to Party B regarding the transfer of the creditor’s
right or dunning published by Party A on mass media, it shall be deemed to have been served on the date of publishing.

 

Any Party that changes
the contact address, email address, fax number, mobile number or WeChat account number shall notify the other party of the change
within five working days from the date of the change, otherwise the other party shall have the right to deliver the instrument
according to the original contact address or information If the instrument is not successfully delivered due to the change of contact
address, the date of return or the 7th day after delivery (whichever is earlier) shall be deemed to be the date of service. The
party making the change is responsible for the losses that may arise therefrom, and the legal effect of delivery shall not be affected.

 

12.3.2 The above-mentioned
contact address, email address, fax number, mobile number, and WeChat account number are also used as their respective address
for service of notary instruments and judicial instruments (including but not limited to bill of complaint/arbitration applications,
evidence, subpoenas, notice of responding to action, notice to produce evidence, notice of court session, notice of hearing, judgment/arbitration
award, verdict, conciliation statement, notice for performance within a time limit and other instruments in the hearing and execution
stages). The instruments shall be deemed to be served effectively if the court or notary office accepting the case delivers them
in writing to such address in accordance with this Agreement (the specific criteria for service shall be implemented by reference
to the provisions of paragraphs 12.3.1).

 

    	 	11	 

     

    

 

12.4 The parties hereto
agree that for each business application under the trade financing, Party B shall affix the seal according to the Letter of Authorization
for Reserved Specimen Seal provided by Party B to Party A, and both parties shall recognize the validity of such seal.

 

12.5 When Party B submits
various applications under the credit granting through Party A’s online banking system, Party B’s digital signature generated in
the form of digital certificate is a valid signature for the application. Party A has the right to fill out relevant business documents
according to the application information sent online, and the authenticity, accuracy and legitimacy of the information shall be
confirmed by Party B.

 

12.6 The supplementary
written agreements entered into, upon negotiation, by the parties hereto for the matters that are not covered in this Agreement
or are subject to change, and the specific contracts under this Agreement shall be regarded as annexes to this Agreement and constitute
an integral part thereof.

 

12.7 In order to facilitate
business processing, the letters or documents related to Party A’s operations involving transactions under this Agreement
(including but not limited to acceptance of applications, data review, lending, transaction confirmation, withholding of funds,
inquiry, receipt printing, dunning, payment deduction, etc. and various notifications) may be generated or issued at any business
outlet of Party A. The operations of and letters or documents issued by Party A’s business outlets shall be deemed to be
the acts of Party A and binding upon Party B.

 

12.8 The annexes to
this Agreement shall constitute an integral part of this Agreement and are automatically applicable to the specific business that
actually occurs between the parties hereto.

 

12.9
/             .

 

13. Governing Laws and Settlement of
Dispute

 

13.1 The
conclusion, interpretation, and dispute settlement of this Agreement shall all be governed by the laws of the PRC (excluding
Hong Kong, Macao and Taiwan laws), which protect the rights of both parties.

 

13.2 Any dispute
arising from the performance of this Agreement shall be settled through friendly negotiation by the parties hereto. If the
negotiation fails, any party may (please place a √
in ☐ for selection

 

●    13.2.1
file a suit at the people’s court in the place where this Agreement is signed

 

●    13.2.2 file
a suit at the people’s court in the place where Party A is located

 

●    13.2.3
refer the dispute to /        (insert the name of specific arbitrator) for arbitration,
with the arbitration venue being at/            .

 

13.3 If the
parties hereto have this Agreement and related contracts notarized for legal enforcement, then Party A may directly apply to
the people’s court with jurisdiction for enforcement to collect the debt that Party B owes under this Agreement and related
contracts.

 

14. Effectiveness of Agreement

 

This Agreement shall
become effective after being signed (or sealed) by the legal representatives/person in charge or the authorized signatories of
both parties and being affixed with the company seal/special seal for contract of both parties, and shall automatically terminate
upon expiration of the credit period or full repayment of the debt and other related fees under this Agreement owed by Party B
to Party A (whichever comes later). 

 

15. Supplementary Provisions

 

This Agreement shall
be made in          copies, with Party A, Party B, and          each holding one copy, which have the same legal effect.

 

    	 	12	 

     

    

 

Annex I Special Provisions regarding Online
Customs Clearance (Customs Duties and Dues Payment Guarantee)

 

Annex II: Special Provisions regarding
Buyer / Import Factoring

 

Annex III: Special Provisions regarding
Order-related Loan

 

Annex IV: Special Provisions regarding
Guaranteed Discount for Commercial Acceptance Bills

 

Annex V: Special Provisions regarding Derivative
Transactions

 

Annex VI: Special Provisions regarding
Gold Leasing

 

Annex VII: Special Provisions regarding
Cross-border linkage Trade financing

 

    	 	13	 

     

    

 

Annex I Special Provisions regarding
Online Customs Clearance (Customs Duties and Dues Payment Guarantee)

 

		1.	If Party B applies to Party A for customs duties and dues
payment guarantee within the LOC, Party B shall login to electronic port system / www.easipay.net to send Party A the online payment
bank guarantee order; Party A provides guarantee to Party B, within the LOC, for its payment of tax payable to the customs in
the form of electronic payment guarantee letter through electronic port system / www.easipay.net (guaranteeing that the tax payable
by Party B will be paid to the state treasury when the tax payable is due, and the guarantee will be reflected in the system by
the information of “Payment is Successful”
sent by Party A to electronic port system / www.easipay.net), realizing that the formalities for goods customs clearance
are gone through at first, and the relevant import and export duties and dues are paid later within the time limit stipulated
by the customs.

 

		 	Party A’s advance payment (regardless of whether made during
the credit period) under the payment guarantee and related interest and expenses shall directly constitute debts owed by Party
B to Party A and be included in the scope of the LOC.

 

		2.	Party B shall deposit a certain amount of funds in Party
A as the security deposit according to the requirements of Party A (the account number shall be subject to the account automatically
generated or entered when the funds are deposited), and provide counter-guarantee for Party A’s tax payment guarantee.

 

		3.	Party A issues an electronic payment guarantee instrument
to the customs in its capacity as the guarantor; Party B is aware and confirms that the electronic payment guarantee has the nature
of independent guarantee, and the guarantee liability assumed by A to the customs is an independent demand guarantee.

 

		4.	Party B shall send a withholding order to Party A through
electronic port system / www.easipay.net, and Party A shall issue a payment guarantee to the customs according to the withholding
order sent by Party B; Party B shall grant Party A the right to deduct the principal and interest of the guarantee amount from
its security deposit accounts concerned and the right to fill out relevant business documents according to the withholding order
issued online.

 

The specific time, amount,
etc. of each payment guarantee provided by Party A within the LOC shall be subject to Party B’s online payment bank guarantee order
(payment guarantee withholding order) received by Party A and stored in the online system. Party B must send the payment guarantee
withholding order to Party A within the credit period, and Party A will not accept such order sent beyond the credit period.

 

Party A shall determine the
expiration date of the single payment guarantee according to the “time
limit for payment” (i.e. “date
when tax payable is due”) specified by the actual deduction
order sent to Party A by electronic port system / www.easipay.net.

 

    	 	14	 

     

    

 

		5.	If Party B does not
                                         use the LOC for the customs duties and dues payment guarantee for         consecutive
                                         months, Party A has the right to refuse to conduct such business for Party B.

 

		6.	Party B authorizes Party A to directly deduct funds from
Party B’s account (including security deposit account) to pay tax to customs when the tax payable by Party B is due, without notifying
Party B or obtaining Party B’s consent If the account amount is insufficient to pay, Party B guarantees that all the shortfall
amount will be transferred into the account designated for tax payment within 3 days before the date when the tax payable is due,
making preparation for the payment due. If Party B fails to make up the shortfall in time, Party A shall have the right to seek
recourse from Party B after making advance payment to state treasury due to the obligation under the payment guarantee, and shall
have the right to levy a penalty against Party B at an annual rate of % of the advance amount according to the actual days counted
from the date when the advance payment is made.

 

		7.	Party A shall charge a guarantee fee quarterly at an annual
rate of % of the actual transaction amount under the online payment bank guarantee.

 

		8.	If Party B fails to fulfill its obligations under the Credit
Granting Agreement or this Annex, or if any statement, undertakings or guarantee made by it is untrue, Party A shall have the
right to take any remedy measures set out in the Credit Granting Agreement, and to require a security deposit from Party B equal
to 100% of the total amount of the payment guarantee provided by Party A under which no claim has occurred.

 

    	 	15	 

     

    

 

Annex II: Special Provisions regarding
Buyer / Import Factoring

 

		1.	Definition

 

		1.1	The buyer/import factoring means that Party A, as the buyer/import
factor, provides approved payment, accounts receivable dunning and management and other comprehensive factoring services for seller/export
factor after the seller/export factor transfers to it the accounts receivable (under a business contract) of which Party B is
the debtor.

 

Under the buyer/import factoring,
if the buyer’s credit risk occurs, Party A shall be liable to seller/export factor for approved payment; if a dispute arises during
the performance of the business contract, Party A shall have the right to re-transfer to the seller/export factor the accounts
receivable transferred to it.

 

		1.2	The seller/export factor is the party that signs a factoring
agreement with the supplier/service provider (creditor of an account receivable) under the business contract and to which the
account receivable held by the creditor thereof is transferred. Party A may act both as a buyer/import factor and as a seller/export
factor.

 

		1.3	The dispute refers to the defense, counter claim, offset
or other similar acts filed by Party B in respect of the accounts receivable transferred to Party A due to any dispute related
to the goods, services, invoices or any other commercial contracts related matters between the creditor of the accounts receivable
and Party B, and the acts of a third-party to make a claim on or apply for the freezing of the accounts receivable under this
Agreement. If the accounts receivable transferred to Party A cannot be recovered in full or in part due to non-buyer’s credit
risk, it shall be deemed to be a dispute.

 

		1.4	Business contract: refers to the transaction contract signed
between Party B and the creditors of the accounts receivable for the purpose of commodity trading and/or service trading, with
sale on credit as the settlement method.

 

		1.5	Approved payment / guaranteed payment means that after
the occurrence of buyer’s credit risk, Party A shall pay the corresponding amount of the account receivable to the seller/export
factor within a certain period after the account receivable is mature.

 

		2.	Upon application by Party B, Party A agrees to conduct
buyer/import factoring for it within the LOC. the funds and related expenses paid by Party A as the buyer/import factor for performing
the obligations of the approved payment shall be deemed as the credit granted by Party A to Party B under the Credit Granting
Agreement.

 

As long as an account receivable
is transferred to Party A during the credit period, Party A shall have the right to seek recourse from Party B in accordance with
the provisions of the Credit Granting Agreement and the business contracts, even if it performs the obligations of the approved
payment beyond the credit period.

 

		3.	Commission fees of buyer/import factoring

 

Commission fees of factoring:
mean the business management fee that should be charged by Party A for the buyer/import factoring services, which shall be charged
by Party A from Party B according to a certain percentage of the amount of accounts receivable at the time of transfer, with the
specific rate being reasonably determined by Party A in accordance with its business rules.

 

		4.	Party B shall waive the right to raise an objection based
on disputes arising during the performance of the business contract. In view of this, regardless of whether there are other agreements,
if Party B fails to make payment in accordance with the provision of the business contract, it shall be deemed as the occurrence
of the buyer’s credit risk; Party A will make the approved payment, and Party B will raise no objection.

 

    	 	16	 

     

    

 

Annex III: Special Provisions regarding
Order-related Loan

 

		1.	The order-related loan means the loan lent by Party A to
Party B based on the business contract (or engineering contract) signed between Party B and its downstream customers, used for
the performance of the business contract (or the engineering contract) for the business unit, with the proceeds from the business
contract (or engineering contract) being the first source for the repayment of the loan.

 

		2.	Party B shall open a special account at Party A for the
collection of proceeds under the business contract (or engineering contract). All sales under the business contract (or engineering
contract) based on which the order-related loan is applied must be directly paid to the special account; without the approval
of Party A, the funds may not be used and the special account may not be changed. Party B shall notify the payer that the account
is the only account for the payment of sales proceeds. Party A has the right to deduct the funds from the special account for
the repayment of the principal and interest, penalty interest and other related expenses of the order-related loan.

 

		3.	Under any of the following circumstances, Party A may immediately
stop the use of remaining LOC balance under the Credit Granting Agreement, and take remedy measures in accordance with the Credit
Granting Agreement:

 

		3.1	The downstream customers of Party B have delayed in payment
for three consecutive periods, and Party A has reasonably judged that their financial status has deteriorated, which is not conducive
to protecting Party A’s creditor’s
rights; and

 

		3.2	Party B’s supplier qualification is canceled by its downstream
customers, Party B’s supply to the downstream customers is not timely, the product quality is unstable, Party B fails to make
progress in construction as scheduled in the engineering contract, which is not recognized by the downstream customers, the industry
practice qualification of Party B has been lowered, which results in its failure to meet the requirements of downstream customers,
Party A has reasonably judged that Party B is difficult to operate and its financial status deteriorates, the funds collected
from downstream customers is less than the monthly total repayment amount of financing contracts under the credit granting for
three consecutive months, or the downstream customers fail to pay the installments as agreed in the engineering contract for two
consecutive period.

 

    	 	17	 

     

    

 

Annex IV: Special Provisions regarding
Guaranteed Discount for Commercial Acceptance Bills

 

		1.	The guaranteed discount for commercial acceptance bills is a service that Party A undertakes to
discount the commercial acceptance bills accepted by Party B or allows the bill holder to apply for discount to any branch of China
Merchants Bank (hereinafter referred to as “other discount
acceptance banks”). The holder (hereinafter referred to as
the “discount applicant”)
may apply to Party A or other discount acceptance banks for discounting such commercial acceptance bills. Such discount services
shall offset the LOC under this Agreement.

 

In view that the guaranteed
discount for commercial acceptance bills provided by Party A for Party B is the prerequisite for other discount acceptance banks
to accept the bill holder’s application for discounting, other discount acceptance banks have the right to transfer the discounted
bills to Party A after the discounting, and Party A is obliged to accept the transfer. For the commercial acceptance bills transferred
from other discount acceptance banks to Party A, Party B undertakes to pay the bills unconditionally on the maturity date, and
the parties hereto have no objection.

 

		2.	The commercial acceptance bills mentioned in this clause include both paper commercial acceptance
bills and electronic commercial acceptance bills (hereinafter referred to as “electronic
bills”); both commercial acceptance bills with discount interest
being paid by discount applicant and commercial acceptance bills with discount interest being paid by buyer.

 

The discount of commercial
acceptance bills with discount interest being paid by buyer means bill discount that the discount interest is paid by Party B when
the commercial acceptance bills issued and accepted by it are discounted.

 

		3.	During the credit period, Party B shall open a commercial acceptance bill security deposit account
in Party A (the account number shall be subject to the account automatically generated or entered when the security deposit are
deposited), and deposit a certain amount of funds in the security deposit account according to the requirements of Party A before
the discount guarantee is issued for each commercial bill, which shall be used as the security deposit for the payment of commercial
acceptance bill accepted by Party B that Party A undertakes to discount.

 

Party B shall deposit the full
amount of the bill payable in the security deposit account opened at Party A before the maturity of each commercial acceptance
bill, making preparation for the payment of bills due.

 

		4.	During the credit period,
the discount applicant may apply directly to Party A for discounting the commercial acceptance bill accepted by Party B, or apply
to other discount acceptance banks for discounting. Party A or other discount acceptance banks have the right to examine the qualification
of discount applicants, and have the right to request Party B to confirm upon review, and determine on its own whether to conduct
the discount.

 

After conducting discount,
the other discount acceptance banks shall have the right to transfer the discounted commercial acceptance bills to Party A in accordance
with the relevant rules of China Merchants Bank. When Party A require Party B to pay a commercial acceptance bill after discounting
the commercial acceptance bill or receiving the commercial acceptance bill discounted by other discount acceptance banks, Party
B shall unconditionally, fully and timely pay Party A the amount of bill payable.

 

		5.	The issuing and discounting of each electronic bill shall
be subject to the business information stored in the PBOC electronic bill system, or the business records such as customer statements
filled or printed according to it. The business records of Party A shall constitute an integral part of this Agreement and have
the same legal effect as this Agreement: Party B acknowledges the accuracy, authenticity and legality of such records.

 

		6.	If any dispute arises from the underlying contract of the
commercial acceptance bill that Party A undertakes to discount within the LOC, Party B shall settle the dispute with the relevant
parties themselves; before the maturity of each bill, Party B shall still be obliged to fully and timely deposit the security
deposit and the bill amount according to the foregoing agreement.

 

		7.	Where Party A has discounted the commercial acceptance bill accepted by Party B or has
                                                                             received the commercial acceptance bill accepted by Party B from other discount acceptance banks, Party A shall have the
                                                                             right to deduct funds from any account opened by Party B at Party A for the payment of bill amount if Party B fails to
                                                                             provide full amount of the bill payable before the maturity date of the commercial acceptance bill. For the advance payment
                                                                             made by Party A due to the insufficiency of amount provided by Party B and the insufficient balance of its account, Party A
                                                                             shall have the right to levy a penalty against Party B at a rate of
                                                                             ‱ of the amount of advance payment in accordance with the relevant provisions of the Measures for Payment and
                                                                             Settlement.

 

    	 	18	 

     

    

 

Annex V: Special Provisions regarding
Derivative Transactions

 

		1.	A derivative transaction for which Party A accepts the
application of Party B may offset the LOC according to a certain percentage of the nominal principal/transaction amount of the
transaction, or when floating loss occurs to the derivative transaction, Party A may offset additional amount of LOC granted to
Party B according to the specific agreement between the parties (the additional amount being offset shall be determined by Party
A according to the type, duration and risk of the derivative, as well as the risk coefficient of the business corresponding to
the offset LOC at the occurrence of each specific trading). The amount of LOC being actually offset shall be subject to the notice
of amount of LOC being offset issued by Party A and/or trading confirmation letter/certificate and other trading documents.

 

		2.	Where there is a derivative
transaction with a balance or loss during the credit period, it shall offset the LOC in accordance with the provisions of the
preceding clauses, regardless of whether the transaction occurs within the credit period.

 

    	 	19	 

     

    

 

Annex VI: Special Provisions regarding
Gold Leasing

 

		1.	The gold leasing service means that Party A leases the
physical gold to Party B, and Party B will return the same amount of gold with the same quality after the expiration of the lease,
and pay a lease fee to Party A by installment.

 

		2.	Party A may provide gold leasing service during the credit
period and within the LOC according to the application of Party B. The physical gold leased out by Party A shall offset the LOC
according to the value agreed in the gold lease agreement signed by both parties, and constitute debts owed by Party B to Party
A.

 

    	 	20	 

     

    

 

Annex VII: Special Provisions regarding
Cross-border linkage Trade financing

 

		1.	Cross-border linkage trade financing service refers to
the cross-border trade financing service jointly provided by Party B and the foreign branches of China Merchants Bank (hereinafter
referred to as “linkage platform”)
upon application of Party B based on the real cross-border trading between Party B and foreign companies.

 

		2.	The specific varieties of cross-border linkage trade financing
include, but are not limited to, back-to-back letter of credit, issuance of letter of credit by mandate, offshore financing by
mandate, bill avalization, overseas credit granting by letter of guarantee and cross-border trade financing through train. The
specific meanings and business rules, etc. of various services are set out by specific business agreements.

 

		3.	Under the back-to-back letter of credit, the master letter
of credit of which Party B applies to Party A for the issuance shall directly offset the LOC under this Agreement, and the bill
advance or advance payment made by Party A for fulfilling the obligations of issuing bank under the master letter of credit (regardless
of whether made within the credit period) and related interest and expenses shall constitute the financing debts owed by Party
B to Party A and be included in the scope of LOC.

 

Under the issuance of letter
of credit by mandate/offshore financing by mandate, the letter of credit issued by and trade financing provided by the linkage
platform to an overseas company (upon accepting the application by the overseas company) according to entrust by Party A based
on the application of Party B shall offset LOC under this Agreement. If Party A grants the funds of import bill advance under collection
or advance payment to Party B for overseas payment under the import collection, the funds of bill advance or advance payment (regardless
of whether occurs within the credit period) and related interest and expenses shall directly constitute the financing debts owed
by Party B to Party A and be included in the scope of LOC.

 

Under the bill avalization,
the bill accepted by Party B avalized by Party A according to Party B’s application shall directly offset the LOC under this Agreement.
If Party B fails to pay the full amount of the bill on time, Party A has the right to make advances directly for the avalized bill.
Such advances (regardless of whether occur during the credit period) and related interest and expenses are included in the scope
of LOC.

 

Under the overseas credit granting
by letter of guarantee, the letter of guarantee/standby letter of credit issued by Party A according to the application of Party
B shall directly offset the LOC under this Agreement. After the overseas company transfers the collection right (non-claim right)
under the letter of guarantee to the linkage platform, if the linkage platform claims to Party A according to the letter of guarantee/standby
letter of credit, the advances made by Party A (regardless of whether made during the credit period), and related interest and
expenses shall directly constitute the financing debts owed by Party B to Party A and be included in the scope of LOC.

 

Under the cross-border trade
financing through train, after Party A approves Party B’s trade financing according to its application, the trade financing provided
directly by linkage platform to Party B shall offset the LOC under this Agreement. If Party B fails to timely repay the amount
of trade financing to the linkage platform in full, Party A has the right to repay it by way of bill advance or advance payment.
The bill advance or advance payment (regardless of whether made during the credit period) and related interest and expenses shall
directly constitute the financing debts owed by Party B to Party A and be included in the scope of LOC.

 

    	 	21	 

     

    

 

Special Notes:

 

All terms & conditions
of this Agreement (including annexes) are fully negotiated by the parties hereto. The Bank has brought to the attention of other
parties hereto the terms of exemption or restriction of bank liability, unilateral possession of certain rights by bank, addition
of liability of other parties hereto or restriction on the rights of other parties hereto, as well as having a comprehensive and
accurate understanding of them. The Bank has provided corresponding explanation on the above terms & conditions at the request
of other parties hereto. The parties hereto have a unanimous understanding of the terms & conditions of this Agreement.

 

(The content hereinafter contains no main
text)

 

     

     

    

  

	(This page is the signature page for the (Credit Granting Agreement) numbered (5202180601))	 	 
	 	 
	Party A: 	(seal)
	 	 
	Person in charge or authorized signatory:	 
	 	 
	(signature/seal): 	 
	 	 
	(China Merchants Bank Co., Ltd., Shanghai Century Avenue Branch)	 
	 	 	 
	 	 	 
	 	 	 
	Party B: 	(seal)	 
	 	 
	Legal representative/person in charge or the authorized signatory	 
	 	 
	(signature/seal): 	 
	 	 
	CLPS Incorporation	 

 

Signed on: June 22, 2018

 

Signed in: Pudong New Area, Shanghai

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