Document:

Exhibit 10.5

 

Working Capital Loan Agreement

 

No: 22008LN1J649637

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Working Capital Loan Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

Working Capital Loan Agreement

 

 

 

 

Bank of Communications Co., Ltd.

 

No: 22008LN1J649637

 

Important
Notice

 

Borrowers
please read carefully the full texts of this agreement, especially the terms marked with ▲▲.
Should you have questions, please consult with the lender for timely explanations.

 

 

Working Capital
Loan Agreement

 

    2

     

    

 

Working Capital
Loan Agreement

 

Whereas
the Borrower applies for a working capital line of credit from the Lender, for the purpose of clearly setting forth the rights
and obligations of both parties, the Borrower and the Lender agree as follows:

 

Article
1 Definitions

 

“Line
of credit” refers to the maximum amount of loan balance (revolving line of credit) or loan sum (one-time limit) the Lender
can make available to the Borrower pursuant to the terms of this Agreement. The line of credit can be either a revolving limit
or a one-time limit (for one-time or multiple use).

 

“Revolving
limit” means that the Borrower can apply for multiple use of the line of credit for obtaining a loan, but the cumulative
withdrawal sum of the loan shall not exceed the agreed line of credit.

 

“Loan
balance” means the principal sum the Lender has withdrawn and has not paid off under this Agreement.

 

“Remaining
line of credit” means the available line of credit after the loan balance (revolving line of credit) or loan sum (one-time
limit) is deducted from the total line of credit.

 

    3

     

    

 

Working Capital
Loan Agreement

 

“Term
of line of credit” means the period when the Lender can grant loans to the Borrower upon the Borrower’s application
and pursuant to the terms of this Agreement. Term of line of credit is the period during which a loan can be issued, rather than
the loan term.

 

“Loan
term” refers to the term of each loan prescribed by both parties in the respective “Bank of Communications Line of
Credit Withdrawal Application” (hereby abbreviated as “Line of Credit Withdrawal Application”).

 

“Loan
Prime Rate (LPR)” means the loan prime rate published by the National Interbank Lending Center on the 20th of each month
(in the case of a holiday, on the next business day after the 20th).

 

“Bank
business day” or “business day” means the days the Bank at the location of the Lender conduct its business toward
the public, which does not include the legal holidays and weekends (except for the adjusted working holidays and weekend days).
If the performing date of an obligation (i.e., loan issuance date, loan pay date, interest pay date, due date) falls on a non-business
day of the bank, it shall be postponed to the next business day of the bank.

 

    4

     

    

 

Working Capital Loan Agreement

 

Terms such
as related parties, related-party transactions and major investors have the same meanings as they have in the “Accounting
Standards for Enterprises No.36-Disclosure of Related Parties” (Cai Kuai [2006]3) and its amendments thereafter.

 

Article
2 Withdrawal under the Line of Credit

 

2.
1 When the Borrower needs to make a withdrawal under the line of credit, the Borrower has to submit an application to the Lender
at least five bank business days prior to the intended date of withdrawal. The Borrower shall fill in the Line of Credit Withdrawal
Application and submit it to the Lender for review prior to making the withdrawal.

 

▲▲ 2 .2
Each withdrawal under the line of credit shall be made upon the satisfaction of the following conditions:

 

		(1)	Loan balance (revolving
line of credit) or loan sum (one-time limit) does not exceed the line of credit;

 

		(2)	The applied loan amount
does not exceed the available line of credit;

 

		(3)	The withdrawal application
date and the loan issuance date fall within the term of the line of credit;

 

		(4)	The loan term and the
due date for the loan are in accordance with the terms of this Agreement;

 

    5

     

    

 

Working Capital
Loan Agreement

 

		(5)	The
                                         guarantee agreement (if any) attached to this loan agreement is and continues to be valid;
                                         where the guarantee agreement is a mortgage agreement and/or pledge agreement, the security
                                         interest in the collateral has been established and remains effective;

 

		(6)	The Lender has completed
the permits, approval, registration required by governmental agencies pursuant to legal requirements and the Lender’s request,
and such permits, approval and registration remain valid;

 

		(7)	The Borrower’s
business operations and financial conditions have not materially deteriorated after the effective date of this Agreement;

 

		(8)	The application made
by the Borrower conforms to the requirements of the respective rules and regulations;

 

		(9)	The Borrower has not
violated this Agreement;

 

		(10)	The payment methods
of the loan conforms to this Agreement; in the case of payment by the Lender upon authorization of the Borrower, the Borrower
gives such authorization to make the payment;

 

		(11)	In the case of withdrawal
of a loan in a foreign currency, the Borrower has provided the supporting documents to show that the loan conforms to respective
foreign exchange administrative policies, including but not limited to valid foreign exchange use certificates or registration
documents.

 

    6

     

    

 

Working Capital
Loan Agreement

 

		(12)	The Borrower has designated
an account for repayments and signed the account management agreement in accordance with the Lender’s request.

 

▲▲ 2.3
In the case that a loan is approved by the Lender, the final details of loan issuance is based on the contents in the bank printout
section of the Line of Credit Withdrawal Application. 

 

▲▲ 2.4.
If the currency type in the Line of Credit Withdrawal Application differs from the currency type for the line of credit, for the
purpose of determining the available line of credit only, currency conversion will be made based on the foreign currency exchange
rate published by the Bank of Communications Co., Ltd. at the beginning of each day; if there are no directly applicable exchange
rate, currency conversion shall be reasonably made by Bank of Communications Co.,Ltd. 

 

▲▲ 2.5.
Once the Lender becomes a shareholder or “control person” of the guarantor as defined by the PRC Company Law, before
the guarantor furnishes, to the Lender, an acceptable resolution of its shareholder meeting (general meeting) that agrees on providing
guarantee for the Borrower, the Lender has the right to suspend or cancel the line of credit the Borrower has not yet withdrawn.

 

    7

     

    

 

Working Capital
Loan Agreement

 

Article
3 Interest Rates, Interest Calculation and Payment

 

3.1.
The basic rule for determining interest rates

 

3.1.1.
The loan interest rate under this Agreement shall be benchmarked on the Loan Prime Rate (LPR). It is calculated as Loan Prime
Rate (LPR) plus (minus) points (1 basis point is 0.01%, 1% equals 100 basis points). The interest rates shall be determined by
both parties at each withdrawal application and stipulated in the Line of Credit Withdrawal Application.

 

In
the case both parties agree to use fixed rates in the Line of Credit Withdrawal Application, and a specific number is recorded
in the fixed rate section, the specific rate of each loan shall be the number recorded in the fixed rate section of the Line of
Credit Withdrawal Application. Such number shall be the Loan Prime Rate (LPR) on the pricing basis date, plus or minus the points
stipulated in the Line of Credit Withdrawal Application. If a specific number is not recorded in the fixed rate section, the specific
interest rate of each loan shall be the Loan Prime Rate (LPR) on the pricing basis date, plus or minus the points stipulated in
the Line of Credit Withdrawal Application.

 

Where
both parties agree to use floating rates in the Line of Credit Withdrawal Application, the specific interest rate of each loan
shall be based on the Loan Prime Rate (LPR) on the pricing basis date chosen in the Line of Credit Withdrawal Application, as
well as the points to be added (deducted), the rate-floating rules, the rate-floating cycle, the rate-floating unit, and the specific
floating-cycle start date (if needed).

 

    8

     

    

 

Working Capital
Loan Agreement

 

3.1.2.
If the currency is RMB, the daily rate equals monthly rate/30, monthly rate equals annual rate/12; if the currency is Hong Kong
Dollar, Pound Sterling, Australian Dollar, the daily rate equals annual rate/365; if the currency is US dollar, Euro, Japanese
Yen, and other foreign currencies acceptable to the Borrower, the daily rate equals annual rate /360.

 

▲▲ 3.2.
Rate at Loan Issuance

 

Each loan
rate at time of issuance shall be based on the LPR on the “pricing basis date” chosen in the Line of Credit Withdrawal
Application, plus (minus) the agreed points in the Line of Credit Withdrawal Application. If the “pricing basis date”
is Day T, the LPR on Day T is Loan Prime Rate (LPR) number published prior to and closest to Day T.

 

3.3.
Rate Adjustment

 

3.3.1.
If a fixed rate is recorded in the Line of Credit Withdrawal Application, then the loan rate executable in the loan term shall
be the recorded fixed rate.

 

▲▲ 3.3.2
If a floating rate is recorded in the Line of Credit Withdrawal Application, the loan rate shall be the adjusted rate from the
rate adjustment date, which shall be determined by the rate-floating rules, the rate-floating cycle, the rate-floating unit and
the specific floating-cycle start date (if needed).

 

    9

     

    

 

Working Capital
Loan Agreement

 

3.3.2.1
If the LPR is adjusted during the loan term, “the floating based on the posting date of the loan” or “the floating
based on specific start date”, according to the rate-floating rules, shall calculate the loan rate adjustment cycle from
“the posting date of the loan” or “the specific floating start date.” The blank section for the rate floating
cycle shall fill in the cycles of rate floating, and the rate-floating cycle unit shall be based on day or month. If the rate
floating cycle is entered “1”, and the rate floating cycle unit is entered “day”, then the Loan Prime
Rate (LPR) adjustment date shall be the loan rate adjustment date. If the rate floating cycle is entered “3”, and
the rate floating cycle unit is entered “day”, then the loan rate adjustment date shall be three days from “the
posting date of the loan “ or “the specific floating start date”; if the rate floating cycle is entered “1”,
and the rate floating cycle unit is entered “month”, then the loan rate adjustment date shall be one month from the
“posting date of the loan” or “the specific floating start date”; if the rate floating cycle is entered
“3”, and the rate floating cycle unit is entered “month”, then the loan rate adjustment date shall be
three months from “the posting date of the loan” or “the specific floating start date”, and so on.

 

▲▲ 3.3.3.
If the Loan Prime Rate (LPR) is canceled or its publishing institution is required to cease publication according to regulatory
requirements, both parties shall discuss and adjust the loan rate otherwise, and the adjusted rate shall not be lower than the
then applicable rate; when the Loan Prime Rate (LPR) is canceled or its publication has been ceased for more than one month, and
both parties have not yet reached an agreement on the rate adjustment, then the Lender has the right to declare early maturity
of the loan.

 

    10

     

    

 

Working Capital
Loan Agreement

 

▲▲ 3.3.4
Both parties have the right to adjust the points to be added (deducted) from the respective loan rates based on mutual agreement
on each loan rate adjustment date.

 

3.4.
If the loan currency is RMB, the penalty interest for the overdue loan shall have a 50% increase from the stipulated interest
in this Agreement; the penalty interest for the loan diverted for unstated purposes shall have a 100% increase from the stipulated
interest in this Agreement. If the Loan Prime Rate (LPR) is adjusted during the period of a rate-floating loan, the Lender has
the right to adjust the applicable penalty interest for all the loans, and apply the new penalty interest from the loan rate adjustment
date stipulated in the respective Line of Credit Withdrawal Application.

 

3.5.
The Calculation of Interest

 

3.5.1.
Normal Interest=Stipulated Interest in this Agreement *Loan Amount Issued*Days of Loan

 

Days of
loan is calculated from the loan issuance date (inclusive) to the due date of the loan (exclusive). The due date of the loan shall
be postponed to the next business day if it falls on a non-business day. The postponed days shall be included in the days of loan
and interest for such postponed days shall be calculated according to this Agreement.

 

    11

     

    

 

Working Capital
Loan Agreement

 

3.5.2.
Penalty interests for overdue loans and loans diverted for unstated purposes shall be calculated with the amount and the actual
days overdue or diverted (from the day the loan is overdue or diverted (inclusive) to the day the principal and interests are
paid off (exclusive)).

 

3.5.3
The Lender shall round the interest/penalty interest off to the nearest hundredth if the calculation of such results in many decimal
digits.

 

▲▲ 3.6
When the Borrower repays the loan prematurely or the Lender recovers the loan prematurely, the respective rate level shall remain
the stipulated interest in the contract and keep unadjusted.

 

3.7.
If the loan is denominated in foreign currency, the rate determination, adjustment, the penalty interest for overdue and diverted
loans shall be decided pursuant to Article 17 of this Agreement.

 

Article
4 Payment of the Loan

 

4.1
If the loan account designated by the Borrower is a special account for loan issuance opened with the Lender, the issuance and
payment of the loan shall be made through this designated account. This account shall only be used for the receipt of loan funds
and outbound payment. Its account holders can only purchase “funds settlement application” vouchers, and cannot purchase
checks, money order, bank’s acceptance bill, and so on. It cannot be used for other settlement purposes. When the Borrower
initiates payment and makes funds transfer, the Borrower must complete required procedures at the counter of the opening bank’s
branch. The deposit interest in this loan account shall be included into the Borrower’s repayment account.

 

    12

     

    

 

Working Capital
Loan Agreement

 

4.2.
When the Borrower withdraws a loan pursuant to this Agreement, the Borrower shall specify payment methods (if the Lender makes
payment upon Borrower’s authorization or the Borrower makes payment on its own), each withdrawal shall only be in one payment
method.

 

4.3.
Payment upon authorization means the Lender transfers the loan funds from the Lender’s account to a Borrower’s trading
partner that satisfies the agreed purpose of use in this Agreement, after the loan funds is issued pursuant to this Agreement,
and following the instructions of the Borrower’s Payment Authorization Letter.

 

If
a single payment amount exceeds the maximum limit of self-payment or meets one of the conditions of Article 19.3, payment upon
authorization shall be used for such payment.

 

If
payment is made by the Lender upon authorization, the Borrower shall submit to the Lender the Line of Credit Withdrawal Application,
respective Payment Authorization Letter, and other materials required by the Lender (including but not limited to commercial contracts,
invoices, cargo receipts and other transactional materials), which shall specify the loan amount, payee, payment amount, the loan
amount equaling the payment amount.

 

    13

     

    

 

Working Capital
Loan Agreement

 

▲▲ If
the intended payment did not fit the terms of this Agreement or the respective commercial contracts, or contain other faults,
the Lender has the right to refuse payment, and return the Payment Authorization Letter submitted by the Borrower.

 

▲▲ In
the case the Lender agrees to make payment on behalf of the Borrower, if the information provided by the Borrower has error and
renders the outbound payment undeliverable or causes it to be returned, the Borrower must submit again respective documents and
materials containing the correct information within the time limit specified by the Lender, and the Lender shall not be liable
for delay or non-delivery of payment due to the reasons stated herein.

 

4.4
The Borrower’s self-payment means that the Borrower makes payment to its trading partner that satisfies the agreed purpose
of use in this Agreement, after the Lender issues the loan funds to the Borrower’s account pursuant to the terms of this
Agreement.

 

If
the Borrower makes self-payment, the Borrower shall submit to the Lender the Line of Credit Withdrawal Application, an explanation
for use of funds, and other materials required by the Lender. The Borrower shall submit a summary report to the Lender timely
about the payment status of the loan funds. The Lender has the right to verify if the loan funds paid fit the agreed purpose of
use through account analysis, voucher verification, on-site investigation and other ways, with regard to which the Borrower needs
to cooperate.

 

    14

     

    

 

Working Capital
Loan Agreement

 

Article
5 The Repayment of the Loans

 

5.1
The Borrower shall repay the loans according to the repayment dates and amounts stated in the Line of Credit Withdrawal Application.

 

▲▲ 5.2
Without written approval of the Lender, the Borrower shall not repay the loan before its due date.

 

▲▲ 5.3
The payment arrangements about the principal and interests agreed in the Line of Credit Withdrawal Application by the Lender and
the Borrower are expressions made out of both parties’ free and true will. Under the payment arrangements chosen by both
parties, whether the principal would be paid off before the interests does not impact the interest payment obligation of the Borrower.
The Borrower shall not raise any defense to payment of the interests payable. Under any payment arrangements, the Borrower shall
bear the responsibility of repaying all the principal and interests payable. 

 

▲▲ 5.4
If the repaid amounts by the Borrower (including repayments initiated by the Borrower and deducted by the Lender pursuant to this
Agreement) cannot full satisfy the Borrower’s debt obligations:

 

(1)
the repaid amounts shall first pay off the expenses that become due. If the principal and the interests are overdue for less than
90 days, the remaining amount after paying off the expenses shall offset the overdue interest or penalty interest, compound interest,
then the overdue principal; if the principle and the interests are overdue for more than 90 days, the remaining balance after
paying off the expenses shall offset the overdue principal, and then the overdue interest, or penalty interest, compound interest;

 

    15

     

    

 

Working Capital
Loan Agreement

 

(2)
When the Borrower has multiple loans (including the Borrower’s debt under other agreements with the Lender), the Lender
has the right to decide on its own the sequence of paying off or offsetting the Borrower’s debts, so long as such sequence
does not violate the laws, regulations and other regulatory agencies’ mandatory rules applicable to the Lender. The Lender
shall inform the Borrower the result of debt settlement. This article is not applicable where both parties agree otherwise.

 

Article
6 The Borrower’s Warranties and Representations

 

6.1.
The Borrower is legally established and in good standing. It possesses necessary rights and capacities to execute this Agreement
on its own and bear civil liabilities.

 

6.2.
The signature and execution of this Agreement is out of the Borrower’s true will, and the Borrower has obtained all necessary
approval, permission and authorization, with no legal deficiencies.

 

6.3
The Borrower’s business operations are legal and compliant, with continuing operational capacity and legal source of repayment.
The Borrower is not involved in major environmental or social risk, nor does it have any major bad credit history. The management
of the Borrower has no bad record.

 

    16

     

    

 

Working Capital
Loan Agreement

 

6.4
All the documents, statements, materials and information provided by the Borrower to the Lender in the process of signing and
executing this Agreement are true, accurate, complete and valid, without concealing any information from the Lender that might
impact the Borrower’s financial conditions and repayment abilities. There is no major detrimental change to the Borrower’s
financial conditions from the reporting date of the most recent financial statements.

 

▲▲ 6.5
Neither the Borrower nor its affiliated parties is on the sanction lists of the United Nations, the European Union, the United
States; or is a business or individual on the list of terror and money laundering risk published by the Chinese government or
relevant authorities; or is located in a country or region sanctioned by the United Nations, European Union or the United States.

 

▲▲ 6.6
The Borrower warrants that it will abide by the national anti-money laundering laws, regulations and policies, and it will not
assist others in money laundering, terror-financing, tax evasion, bank debt evasion, taking out cash, telecommunications fraud,
illegal fund-raising and other illegal activities. The Borrower shall actively cooperate with the Lender in client identity verification,
storage of transaction records, due diligence examination of client identity and transactional background, large-amount and suspicious
transaction reporting, and other anti-money laundering activities, and provide relevant evidentiary materials upon the Lender’s
request. 

 

    17

     

    

 

Working Capital
Loan Agreement

 

Article
7 The Lender’s Rights and Obligations

 

7.1
The Lender has the right to recover the principal, interests (including compound interest and penalty interest for overdue and
diverted loans), and expenses payable by the Borrower. The Lender has the right to accelerate the repayment of the loan based
on the Borrower’s status of returning the funds, and exercise other rights as stipulated by law or this Agreement.

 

▲▲ 7.2
In the performance of this Agreement, the Lender shall only conduct formal examination of the materials provided by the Borrower.
The Lender shall not bear any liabilities for the failure to make payment upon authorization timely for the reason that the Borrower
provides false, inaccurate or incomplete materials, or makes payment authorization in violation of this Agreement.

 

▲▲ 7.3
The Lender shall issue loans and make payments pursuant to the terms in this Agreement. If any of the following reasons delays
the loan issuance or payment effectuation, the Lender shall not be liable; however, the Lender shall inform the Borrower timely
about the following: the freezing of the account designated by the Borrower, the freezing of the payee’s account, force
majeure, communication or network error, the Lender’s system error, etc., unless stated otherwise in this Agreement. 

 

Article
8 The Borrower’s Obligations

 

8.1.
The Borrower shall repay the principal and interest of the loan under this Agreement according to the time, amount, currency and
rate in the Line of Credit Withdrawal Application.

 

    18

     

    

 

Working Capital
Loan Agreement

 

The
funds-returning account designated by the Borrower shall be used for deposit of sales revenue or planned repayment funds. If the
sales revenue is not settled by cash, the Borrower shall warrant that the received funds would be transferred into the funds-returning
account on a timely basis. The Borrower shall provide the funds transfer details of the funds-returning account.

 

8.2.
The Borrower shall use the line of credit according to the terms in this Agreement, and use the loan for the specified purpose
in the respective Line of Credit Withdrawal Application. The Borrower shall not divert the loan for other purposes, or use the
loan for fixed asset investment, equity investment, and the nationally prohibited industrial and business sectors and purposes.

 

The
Borrower shall use the loan funds with the agreed methods. It shall not evade the Lender’s payment by authorization by dividing
the loan; if the Borrower makes self-payments, it shall use the loan within a reasonable time required by the Lender’s regulatory
agencies, and the payment of the loan funds shall satisfy the terms of this Agreement.

 

▲▲ 8.3.
The Borrower shall bear the settlement expenses (if any) for loan issuance (including the Lender’s payment upon authorization
and the Borrower’s self-payments), the details of the expenses shall be based on the laws, codes, regulations, regulatory
rules, and the then effective Bank of Communications Service Expense List published by the Lender.

 

    19

     

    

 

Working Capital
Loan Agreement

 

If
the loan issuance account is specifically opened for the grant of the loan, at the time of loan funds payment (including the Lender’s
payment upon authorization and the Borrower’s self-payment), in the case that the account for receiving payment is not a
Bank of Communications account, the payment of funds might be made through the payment system or inner-city exchange system of
the People’s Bank of China.

 

If
the loan issuance account is not specifically for the grant of the loan, at the time of loan funds payment (including the Lender’s
payment upon authorization and the Borrower’s self-payment), in the case the account for receiving payment is a non-Bank-of-Communications
account opened in another city, all payment of funds shall be made through the payment system of the People’s Bank of China.

 

▲▲ 8.4
The Borrower shall cooperate with the Lender in loan payment management and regulatory examinations about the use of the loan
and the Borrower’s operations. It shall timely provide the financial statements, the history and materials of the loan funds
use, information about related parties and related-party transactions, environmental and social risk reports, other materials
and information, and make sure the documents, materials, and information provided are true, complete and accurate. 

 

▲▲ 8.5
If the Borrower has any of the following items, it shall give the Lender a notice at least thirty days in advance, and refrain
from taking any actions before paying off all the principal and interest of the loan or providing an acceptable repayment plan
or guarantee to the Lender. 

 

    20

     

    

 

Working Capital
Loan Agreement

 

(1)
Sell, gift, lease, lend, transfer, mortgage, pledge or dispose of all or major assets (or material assets) in other ways;

 

(2)
The operational system or ownership structure has undergone a major change, including but not limited to subcontracting, leasing,
joint operation, company reform, joint-stock reform, sale of business, merger (acquisition), joint venture (cooperation), split,
formation of a subsidiary, equity transfer, ownership transfer, reduction of registered capital, etc.

 

(3)
Outbound investment or increase of debt financing has exceeded the agreed maximum amount.

 

▲▲ 8.6
The Borrower shall inform the Lender within seven days from the occurrence or likely occurrence of the following matters:

 

(1)
The Borrower or its affiliated parties amend bylaws, change their names, legal representatives (persons-in-charge), domicile,
communication address, scope of business and other business registration matters, or make decisions that have major impacts on
their financial and personnel matters;

 

(2)
The Borrower, its affiliated parties or its guarantor has intended to file bankruptcy, or their creditors have filed bankruptcy
claims against them;

 

(3)
The Borrower and its affiliated parties are involved in major lawsuits, arbitration, administrative measures, or their major assets
or collateral under this Agreement are imposed with property preservation or other mandatory actions, or, the safe and intact
status of the major assets or collateral under this Agreement might be impacted, or their values would be reduced or possibly
reduced;

 

    21

     

    

 

Working Capital
Loan Agreement

 

(4)
The Borrower and its affiliated parties have provided guarantee for a third party or third parties, which causes material detrimental
impact on its economic situation, financial conditions, or ability to perform under this Agreement;

 

(5)
The Borrower or its affiliated parties have entered into contracts that have major impact on its operational and financial situations;

 

(6)
The Borrower has paid off debts prematurely or paid off other debts that become due with priority, or provided mortgage, pledge
or any other forms of guarantee for other existing debts, or entered into arrangements of any similar effect, or signed relevant
documents;

 

(7)
The Borrower, its affiliated parties or guarantor has suspended production or operation, dissolved, or suspended business for
internal rectification, or its business license has been revoked;

 

(8)
The Borrower or its affiliated parties, their major investors, their legal representatives (persons in charge), directors, or
main management have disappeared, have been involved in violation of laws or applicable exchange rules, or have abnormal changes;

 

(9)
The Borrower and its affiliated parties have encountered serious difficulties or deteriorated financial conditions, or other events
that have negative impact on the operation, financial situations, repayment abilities or economic conditions of the Borrower or
its affiliated party have occurred.

 

    22

     

    

 

Working Capital
Loan Agreement

 

(10)
Related-party transactions, the transactional amount of which have reached or exceeded 10% of the audited net assets, have occurred;

 

(11)
The Borrower has become or is likely to become the guarantor’s shareholder or “control person” defined by the
PRC Company Law;

 

(12)
The Borrower and its affiliated parties have, in violation of laws, rules, regulatory regulations, national policies or industrial
standards, caused liability accidents or been exposed by media coverage;

 

(13)
The Borrower and its affiliated parties have safety or environmental accidents;

 

(14)
The control relationship between the Borrower and its affiliated parties has changed;

 

(15)
The Borrower and its affiliated parties have major shareholding changes;

 

(16)
The Borrower’s external auditor has issued audit opinions that are not standard, unreserved for its financial statements;

 

(17)
The Borrower has been examined, penalized or subject to other similar measures by the authoritative agencies due to its violation
of laws, rules, and/or regulatory requirements, or there is likelihood of such measures;

 

(18)
The Borrower and its affiliated parties are included into the sanction lists of the United Nations, the European Union, the United
States; or is a business or individual on the list of terror and money laundering risk published by the Chinese government or
relevant authorities; or is located in a country or region sanctioned by the United Nations, European Union or the United States;

 

    23

     

    

 

Working Capital
Loan Agreement

 

(19)
Other major detrimental matters that impact the repayment ability of the Borrower or its affiliated parties have occurred.

 

▲▲ 8.7
If the guarantee under this Agreement has changes detrimental to the Lender’s debt claims, the Borrower shall provide other
guarantee acceptable to the Lender on a timely basis upon the request of the Lender.

 

The
“changes” in this article include but not limited to: the guarantor’s merger, split, suspension of production
and business, dissolution, being canceled, the revocation of its business license, filing or being filed for bankruptcy; major
changes in the guarantor’s operations or financial conditions; the safety and intact status of the collateral is impacted
or likely to be impacted; the decrease or likely decrease in the value of the collateral, or any mandatory measures like property
preservation on the collateral; the guarantor or its legal representative (person in charge) or main management is involved in
violation of laws, regulations and applicable exchange rules; the disappearance, death (declared death) of the guarantor if the
guarantor is an individual; the guarantor has violated the guarantee agreement; the guarantor has a dispute with the Borrower;
the guarantor requests rescinding the guarantee contract; the guarantee contract has not become effective, is void or canceled;
the security interest in the collateral has not been established or is void; any other events that impact the debt claims of the
Lender.

 

    24

     

    

 

Working Capital
Loan Agreement

 

▲▲ 8.8
The Borrower warrants that, the financial indicators, external agency ratings and licenses/permits for production and operation
will be kept in satisfaction of the contractual requirements from the signing date of this Agreement to the payoff date of all
the principal, interest, and related expenses under this Agreement. Where the licenses/permits for production and operation need
to be examined annually, they shall pass annual examinations on a timely basis.

 

8.9
The Borrower warrants that, the Borrower and its employees, agents will not provide, offer, solicit or accept any other pecuniary
benefits(including but not limited to cash, prepaid cards for goods, travel, etc.) to or from the Lender or its employees; and
shall not use the funds or services provided by the Lender in any form, directly or indirectly, for bribery or corruption related
activities. If the Borrower has knowledge of any violation of this article, it shall provide the clues and relevant information
to the Lender timely, completely, accurately, and cooperate with the Lender in respective matters.

 

▲▲
Article 9 The Adjustment of the Line of Credit, the Acceleration of the Debt, and Risk Re-pricing

 

9.1
Any of the following occurrences shall be regarded as “acceleration event” of this Agreement:

 

(1)
The Borrower has not paid the principal or interest of the loan pursuant to any Line of Credit Withdrawal Application under this
Agreement;

 

    25

     

    

 

Working Capital
Loan Agreement

 

(2)
The Borrower has made false warranties and representations under this Agreement;

 

(3)
The actual occurrence of any matter listed in Article 8.6 that impacts or is likely to impact the the Lender’s debt claims;

 

(4)
Any change in laws, regulations and regulatory policies that might render the Lender’s issuance of loan pursuant to this
Agreement in violation of the laws and regulations;

 

(5)
The Borrower has violated other agreements with the Lender or any third-party, or any of its debts has been declared immediately
due and payable;

 

(6)
The Borrower has violated other terms of this Agreement.

 

9.2
In the occurrence of any “acceleration event”, the Lender has the right to take any of the measures below, or multiple
or all of them:

 

(1)
Decrease, suspend or cancel the line of credit under this Agreement;

 

(2)
Stop issuance of the loans the Borrower has not yet made withdrawal applications;

 

(3)
Stop making payments for the loans the Borrower has made withdrawal applications but not yet used;

 

(4)
Demand the Borrower to negotiate supplemental terms for loan issuance and payments within specified time periods;

 

    26

     

    

 

Working Capital
Loan Agreement

 

(5)
Demand the Borrower to effectuate change in payment methods according the requests of the Lender;

 

(6)
Perform risk re-pricing of the loan pursuant to the terms in Article 9.3;

 

(7)
Unilaterally declare all the principal of the loans issued under this Agreement has become immediately due and payable, and demand
the Borrower to immediately pay off all due principal and interest for the loans that become due;

 

9.3
The parties have agreed on the rates and rate adjustments after negotiation on the basis of the operational situation of the Borrower
at the time of execution of this Agreement. The Borrower agrees that, the Lender has the right to perform risk re-pricing of the
loan pursuant to the terms of this article in the occurrence of any “acceleration event”.

 

9.3.1
Risk re-pricing include re-pricing based on negotiation and direct increase of loan rate. The risk re-pricing method adopted in
this Agreement shall be agreed by both parties in Article 21.

 

9.3.2
“Re-pricing based on negotiation” means that, the Lender has the right to demand the Borrower to negotiate an increase
of the loan rate within specified time periods. Both parties shall determine the details of the “re-pricing date”
and related rates via supplemental agreements.

 

9.3.3
“Direct increase of loan rate” means that, the Lender has the right to directly increase the loan rate pursuant to
the terms of this article and Article 21.

 

    27

     

    

 

Working Capital
Loan Agreement

 

9.3.3.1
From the “re-pricing date” the Lender informs the Borrower in written notice, the increased rate shall be applied
to all loans the Borrower has not yet paid off as of the “re-pricing date.”

 

9.3.3.2
If the loan currency is RMB, the increased rate for each loan shall be determined based on the points to be added (deducted) as
stated in Article 21 and the LPR on the “re-pricing date”.

 

If
the “re-pricing date” is Day T, the LPR on Day T is the most recent published Loan Prime Rate (LPR) prior to Day T.

 

9.3.3.3
If the loan currency is foreign currency, the increase of the loan rate shall be made pursuant to the terms of Article 21.

 

9.3.4
The new rate shall be applied from the “re-pricing date” after the Lender performs risk re-pricing pursuant to the
above terms. Based on such new rate, rate floating shall still be applicable pursuant to Article 3 of this Agreement. If both
parties negotiate and agree on amendment of relevant terms, the amended terms shall prevail. The penalty interest for overdue
(including late, unpaid installments or loans declared due prematurely) or diverted loans shall be decided based on the new rate
(including the adjusted rate pursuant to the rate-floating rules in this Agreement). The compound interest calculation shall be
adjusted correspondingly.

 

    28

     

    

 

Working Capital
Loan Agreement

 

9.3.5
Performing “risk re-pricing” shall not be viewed or interpreted as abandonment of legal rights and other rights provided
by this Agreement. The Lender has the right to take other measures to protect its debt claims following laws, regulations and
the terms of this Agreement, including but not limited to all the measures stated in Article 9.2.

 

▲▲Article
10 Breach

 

10.1
If the Borrower has not paid off the principal and interest of the loan in full and on time or used the loan funds for the purpose
stated in this Agreement, the Lender shall calculate and charge interest based on the penalty interest rate for overdue or diverted
loans, and calculate and charge compound interest for accrued but unpaid interest. If the penalty interest is adjusted pursuant
to the terms of this Agreement, the calculation of compound interest shall be adjusted correspondingly.

 

10.2
If the Borrower has not paid off the principal and interest of the loan on time and in full, the Borrower shall bear the Lender’s
expenses for recovering the debt, i.e., collection fees, court fees (or arbitration fees), preservation fees, publication fees,
execution fees, attorney fees, travel expenses and other expenses.

 

    29

     

    

 

Working Capital
Loan Agreement

 

▲▲
Article 11 Deduction Agreement

 

11.1
Upon the Borrower’s authorization, the Lender may deduct funds from any account the Borrower has with all branches of Bank
of Communications, Co., Ltd., to pay off the accrued but unpaid principal, interest, penalty interest, compound interest and other
expenses.

 

11.2
After deduction, the Lender shall inform the Borrower of the account number for the deduction made, contract number, Line of Credit
Withdrawal Application number, deduction amount and loan balance.

 

11.3
If the deductions made are insufficient to cover all the Borrower’s debts, the deductions shall pay off the debts in the
sequence provided in this Agreement.

 

11.4
If the deductions are in a different currency from the debts payable, the deducted amount shall be converted to the amount in
the currency of the debt according to the foreign exchange rate published by Bank of Communications, Co., Ltd., at the time of
deduction. If a foreign exchange settlement and sale or foreign exchange procedure is needed, the Borrower is obliged to assist
the Lender in completing the above procedures, and the foreign exchange risk shall be borne by the Borrower.

 

▲▲
Article 12 Notice

 

12.1
The contact information (including correspondence address, telephone and fax number) filled in by the Borrower in this Agreement
is true and valid. If there is any change to the contact information, the Borrower shall mail/deliver to the Lender a written
notice about such change at the Lender’s correspondence address provided in this Agreement. Such information change shall
become effective upon the Lender’s receipt of notice.

 

    30

     

    

 

Working Capital
Loan Agreement

 

12.2 Unless
stated otherwise in this Agreement, the Lender has the right to send notices to the Borrower in any of the following forms. The
Lender has the right to choose the forms of notice it deems appropriate, and shall not be liable for any transmission error, omissions,
or delay that appear in the mail, telefax, telephone or any other communication systems. If the Lender chooses multiple forms
of notice, the quicker one that arrives at the Borrower shall prevail. For the same subject matter, if the Lender sends more than
one notices to the Borrower and the notices have varied contents, the notice sent out at a later time point shall prevail unless
stated otherwise.

 

(1)
Public notice, the delivery date of which shall be deemed as the publication date by the Lender on its website, online banking,
telephone banking, or at its branches;

 

(2)
In-person delivery, the delivery date of which shall be deemed as the signing date of the Lender;

 

(3)
Mail delivery (including express courier, first-class mail, registered mail) to the last known correspondence address of the Borrower
by the Lender , the delivery date of which shall be deemed as the third day (inner-city)/fifth day (inter-city) after the mailing
date

 

    31

     

    

 

Working Capital
Loan Agreement

 

(4)
Telefax, text messages or other telecommunication forms delivered to the last known telefax number by the Lender, the Borrower-designated
mobile phone number or email address, the delivery date of which shall be deemed as the date such forms of notice are sent out.
The delivery stated above means the entry of the relevant information into the terminal of the service provider, not the actual
appearance of such information at the client’s terminal.

 

12.3.
The Borrower agrees that, unless the Lender has received written notice about the change of the Borrower’s correspondence
address, the correspondence address filled in this Agreement by the Borrower is the address at which the courts shall deliver
legal documents and other written materials to the Borrower. Such address shall be used for delivery of first instance trials,
second instance trials, retrials and enforcement actions in civil cases. If the Borrower responds to the claim and submit verification
of delivery address to the court directly, and such verified address is different from the last known correspondence address by
the Lender, the court has the right to deliver to the address stated in the Borrower’s verification of delivery address.

 

In
solving the disputes related to this Agreement, the court can deliver judgments, decisions and mediation agreements to the Borrower
via any of the following ways:

 

(1)
Mail delivery (including express courier, first-class mail, registered mail), the delivery date of which shall be deemed as the
signing date of the Borrower on the receipt of delivery;

 

    32

     

    

 

Working Capital
Loan Agreement

 

(2)
In-person delivery, the delivery date of which shall be deemed as the signing date of the Borrower on the receipt of delivery.

 

In
the case the court uses mail delivery(including express courier, first-class mail, registered mail), if the Borrower does not
sign on the receipt of delivery, or if the correspondence address filled in by the Borrower is inaccurate, or if the Borrower’s
correspondence address has been changed but the Lender has not received any written notice of such change, resulting in the return
of judgments, decisions and mediation agreements, the return date of such judicial papers shall be deemed as the date of delivery.

 

In
the case the court uses in-person delivery, if the Borrower does not sign on the receipt of delivery, the date of delivery shall
be deemed as the date the delivery person records such information on the receipt of delivery.

 

Except
for judgments, decisions, mediation agreements, the court has the right to send any notice to the Borrower via any communication
method stated in Article 12.2. The court has the right to choose the communication method it deems appropriate, and shall not
be liable for any transmission error, omissions, or delay that appear in the mail, telefax, telephone, telegram, or any other
communication systems. If the court uses multiple communication methods, the quicker one that arrives at the Borrower shall prevail.

 

12.4
If this Agreement becomes void, canceled or terminated, this article as the dispute resolution clause remains independent of this
Agreement and its effect shall remain the same.

 

    33

     

    

 

Working Capital
Loan Agreement

 

▲▲Article
13 Information Disclosure and Confidentiality

 

13.1
For the Borrower’s nonpublic information and materials acquired and known to the Lender in the course of contract formation
and execution, the Lender shall not use such information in violation of laws, regulations and regulatory requirements, and shall
keep it confidential, and refrain from disclosing such information and materials to any third-party, except for the following
conditions:

 

(1)
disclosure pursuant to the requirements of laws and regulations;

 

(2)
disclosure pursuant to the legal requests from judicial departments or regulatory agencies;

 

(3)
In the case the Borrower fails to pay off the principal and/or interest of the loan on time and in full, for recovery of debt
under this Agreement, the Lender needs to disclose such information on basis of confidentiality to its external professional consultants,
or to authorize its external professional consultants the use of such information on the basis of confidentiality;

 

(4)
The Borrower has agreed or authorized the Lender to disclose such information.

 

    34

     

    

 

Working Capital
Loan Agreement

 

13.2.
The Borrower confirms that it has signed the Letter of Authorization for Credit Inquiry. The Lender shall inquire, use and store
the Borrower’s credit information within the scope stated in the Letter of Authorization.

 

13.3
Except for the conditions stated in Articles 13.1 and 13.2, the Borrower further agrees that Bank of Communications Co., Ltd.
shall use or disclose the Borrower’s information and materials in the following conditions, including but not limited to
the basic information of the Borrower, information about the loan transaction, defaults and other relevant information and materials,
and (the Borrower) is willing to bear all the consequences arising from such disclosure:

 

Disclosure
to or permitted use by outsourcing agencies, third-party service providers, other financial institutions, and other institutions
and individuals the Lender deems appropriate, including but not limited to other branches of Bank of Communications Co.,Ltd.,
or subsidiaries wholly or partially owned by Bank of Communications Co., Ltd., of such information and materials, and on basis
of confidentiality; (1) for promotion of or relevant to the Bank’s credit operations, e.g. promotion of the credit operations
of Bank of Communications Co., Ltd., collection of debt against the Borrower, sale of the Bank’s debt portfolio; (2) for
providing new products or services, or the likelihood of such, or further services to the Borrower by the Lender.

 

The
applicability of Article 13.2. shall be determined by Article 24 of this Agreement.

 

    35

     

    

 

Working Capital
Loan Agreement

 

Article
14 Choice of Law and Dispute Resolution

 

This
Agreement shall be governed by the PRC laws (for purpose of this Agreement, the PRC laws do not include the laws of Hong Kong
SAR, Macau SAR, and Taiwan). Any lawsuits arising under this Agreement shall be brought in a court with competent jurisdiction
at the Lender’s domicile, unless stated otherwise in this Agreement. During a dispute, both parties shall continue their
performance of the undisputed terms.

 

Article
15 Entry into Effect and Composition of Agreement

 

15.1
This Agreement shall become effective upon the signing or affixing the seal by the Borrower’s legal representative (person
in charge) or authorized representative and the affixing the Borrower’s company seal, and the signing or affixing the seal
by the Lender’s person-in-charge or authorized representative and the affixing of the Lender’s contract special seal.

 

15.2
The Line of Credit Withdrawal Application and other documents and materials executed under this Agreement for line of credit withdrawal
shall constitute integral parts of this Agreement.

 

15.3
Line of Credit Withdrawal Application is supplemental to this Agreement. Unless the Line of Credit Withdrawal Application states
otherwise, this Agreement shall prevail in terms of the rights and obligations of the Lender and the Borrower and related matters.

 

    36

     

    

 

Working Capital
Loan Agreement

 

Article
16 The Details of the Line of credit

 

16.1
The currency for the line of credit: RMB five million; available for withdrawal in [checked ]RMB _______ (foreign currency).
Its line of credit is [    ] a revolving line of credit [    ]one-time line of credit (available for multiple withdrawals) [ checked]
one-time line of credit (available for one-time withdrawal).

 

16.2 Purpose
of line of credit: purchase of raw materials

 

16.3 Term
of line of credit: from August 24, 2020 to August 23, 2021

 

Article
17 Rate Agreement

 

If
the loan is denominated in foreign currency, the rate determination, adjustment, and the penalty interest for overdue and diverted
loans are agreed as follows:

 

N/A____

 

Article
18 The Agreed Accounts

 

18.1
The Borrower designates the following account as loan issuance account. This account [. ]is [checked] is not a special account
for loan issuance opened with the Lender. If agreed otherwise by both parties in the respective Line of Credit Withdrawal Application,
the agreement in the Line of Credit Withdrawal Application shall prevail.

 

    37

     

    

 

Working Capital
Loan Agreement

 

Account
Name: Jiangsu Huadong Medical Device Industrial Co., Ltd,

 

Account
Number: 395067000018150228532

 

Opening
Bank Branch: Yangzhou Branch

 

18.2
The Borrower designates:_________

 

(1)
Loan Repayment Account as:

 

Account
Name: Jiangsu Huadong Medical Device Industrial Co., Ltd,

 

Account
Number:395067000018150228532

 

Opening
Bank Branch: Yangzhou Branch

 

(2)
Funds-Returning Account as:

 

Account
Name: Jiangsu Huadong Medical Device Industrial Co., Ltd,

 

Account
Number:395067000018150228532

 

Opening
Bank Branch: Yangzhou Branch

 

Article
19 Details of Loan Issuance, Payment, and Repayment

 

19.1
Each loan withdrawn under this Agreement shall be no longer than 12 [checked]Months [    ] Days,
and all loans shall become due no later than August 23, 2021.

 

19.2
The self-payment limit under this Agreement shall be five million RMB.

 

    38

     

    

 

Working Capital
Loan Agreement

 

19.3
Lender’s payment upon authorization shall be used if any of the following conditions are met:

___________________________

 

___________________________

 

19.4
If the Borrower makes self-payment, the Borrower shall submit a summary report to the Lender within 15 days of loan issuance
about the payment details of the loan funds.

 

Article
20 Financial Restrictions, External Agency Rating and Licenses/Permits for Production and Operation

 

20.1
The maximum outbound investment the Borrower can make is N/A ten thousand RMB; its maximum increase of debt financing is
N/A ten thousand RMB.

 

20.2
Contractual Agreement about the Borrower’s Financial Indicators:

 

		(1)	N/A

 

		(2)	N/A

 

		(3)	N/A

 

20.3
Specific Agreement about External Agency Rating:

 

		(1)	N/A

 

		(2)	N/A

 

    39

     

    

 

Working Capital
Loan Agreement

 

20.4
Specific Agreement about Licenses/Permits for Production and Operation:

 

		(1)	N/A

 

		(2)	N/A

 

▲▲Article
21 Details of Risk Re-pricing Agreements

 

21.1
This Agreement shall use the following (1) risk re-pricing method:

 

		(1)	re-pricing based on negotiation;
(2) direct increase of loan rate.

 

21.2
If “direct increase of loan rate” is adopted:

 

21.2.1
In the case the loan currency is RMB, the increased rate plus (minus) points as: [    ] no points [    ] add N/A percentage points
[    ] deduct N/A percentage points. If the loan agreement states otherwise, the increased loan rate plus (minus) points shall
follow the applicable Line of Credit Withdrawal Application.

 

21.2.2
If the loan is in foreign currency, the increased loan rate shall be:

 

N/A .

 

    40

     

    

 

Working Capital
Loan Agreement

 

Article
22 Ways of Communication

 

The
Borrower shall receive the notice stated in Article 12 via the following ways of communication:

 

Correspondence
Address: No.88 Tongda Road, Touqiao Town

 

Recipient:
Wu Chunyuan___________

 

Postal Code:
225000______________

 

Telephone:
85106866_____________

 

Mobile phone:
18652795555________

 

Fax:___________________________

 

Email Address:
__________________

 

Article
23 Copies of the Agreement

 

This
Agreement is executed in four copies. Each signatory party and the guarantor (if any) shall hold one copy.

 

Article
24 Miscellaneous Items

 

24.1
Both parties agree that, Article 13.3 [checked ] shall apply [   ] shall not apply in this Agreement.

 

The line
of credit under this Agreement shall be effective from August 24, 2020 to August 7, 2021. (Handwritten)

 

Borrower:
Jiangsu Huadong Medical Device Industrial Co., Ltd

 

    41

     

    

 

Working Capital
Loan Agreement

 

Legal
representative: Liu Yongjun

 

Legal
Address: No.88 Tongda Road, Touqiao Town, Yangzhou

 

Lender:
Bank of Communications Co., Ltd., Yangzhou Branch

 

Person
in Charge: Pan Xiaosong

 

Correspondence
Address: No.477 Hanjiang Middle Road

 

 

The Borrower
has read all the terms in this Agreement, and the Lender has provided detailed explanation upon the Borrower’s request.
The Borrower has no questions or objection regarding the contents of this Agreement at the time of signing it. The Borrower understands
the terms in this Agreement, especially the meaning of the ones marked with ▲▲
and their legal consequences. 

 

(This page
is the signatory page of the Working Capital Loan Agreement. No contract terms are below this page.)

 

    42

     

    

 

Working Capital
Loan Agreement

 

	Borrower:
    (Seal)	Lender:(Seal)
	 	 
	Jiangsu
    Huadong Medical	Bank
    of Communications
	 	 
	Device Industrial
    Co., Ltd.	Yangzhou
    Branch,
	 	 
		Loan Department
    Contract Seal 
	 	 
	Legal representative
    (Person in Charge)	Person
    in Charge
	 	 
	Or authorized
    representative	Or
    authorized representative
	 	 
	(Signature
    or seal)	(Signature
    or seal)
	 	 
	Liu Yongjun(Seal)	Xue
    Ming(Seal)
	 	 
	Signing
    Date: August 24, 2020	Signing
    Date: August 24, 2020

 

 

43Exhibit 10.6

 

ABC(2019)1041-1

 

Agricultural Bank of China

 

Agricultural Bank of China Limited

 

Mortgage E-Loan Contract

 

Contract Number: 32010320190012775

 

     

     

    

 

Dear customer: To protect your rights
and interests, please read the terms (especially the terms in boldface) carefully before signing this Contract. Please pay attention
to your contact information, rights, obligations, and responsibilities. If you have any questions, please contact the bank providing
the loan, or call the customer service line of Agricultural Bank of China at 95599.

 

Table of Contents

 

	Article 1 Definitions	1
	 	 
	Article 2 Borrower’s Promises	2
	 	 
	Article 3 General Terms	4
	 	 
	3.1 Method of Loan	4
	 	 
	3.2 Purpose of the loan	4
	 	 
	3.3 Interest rate, penalty interest,
    and compound interest	4
	 	 
	3.4 Withdrawal and loan payment	7
	 	 
	3.5 Supervision of Account	8
	 	 
	3.6 Repayment	9
	 	 
	3.7 Loan Certificate	10
	 	 
	3.8 Secured Loan	11
	 	 
	3.9 Rights and Obligations	11
	 	 
	Article 4 Legal Responsibilities	14
	 	 
	Article 5 Miscellaneous	17

  

    i

     

    

 

Borrower (Enterprise): Jiangsu Huadong Medical Device
Industrial Co., Ltd,

 

Domicile (Address): No. 88 Tongda Road, Touqiao Town, Guangling
District, Yangzhou

 

Tel: 13905273399Fax: ——

 

Legal Representative/Person-in-Charge: Yongjun Liu [刘永君]

 

Borrower (Individual): Yongjun Liu

 

Identification Type: Resident Identification Card

 

ID Number: 321027195610085119

 

Mailing Address and Postal Code: No. 25 Xiaoyu Group, Xinqiao
Village, Touqiao Town, Guangling District, Postal Code:225000

 

Tel: 13905273399

 

Lender (Full Name): Agricultural Bank of China Company Limited,
Yangzhou Runyang Branch

 

In accordance with relevant laws and regulations, after consultations,
the two parties hereby enter into this Contract. 

 

Article 1 Definitions

 

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

 

1.1 Borrower means the Borrower (Enterprise) and Borrower
(Individual). If Borrower (Enterprise) or Borrower (Individual) is solely mentioned in this Contract, it means only one of the
Borrowers.

 

1.2 Term of Loan means the period from the date of the
loan issuance to the date when the agreed Borrower pays off the principal and interest of the loan.

 

    1

     

    

 

1.3 Line of Credit means the maximum amount of principal
provided by the Lender to the Borrower within the effective term as agreed in the Contract. The Borrower can re-borrow on a revolving
basis within the line of credit and effective term, but the sum of the loans applied by the Borrower and the outstanding principal
under this Contract shall not exceed the line of credit. When the effective term expires, the unused line of credit will automatically
become invalid.

 

1.4 Self-Service Electronic Channels mean online banking,
mobile banking, and other electronic channels provided by the Lender that can be used for funds withdrawal.

 

1.5 Period: Period is calculated by day, month, and
year. If the last day of the Period is a holiday, then the Period ends on the first day after the holiday.

 

1.6 Laws and Regulations include the laws of the People's
Republic of China, administrative regulations, local regulations, rules, judicial interpretations, and other legally effective
rules.

 

1.7 LPR stands for Loan Prime Rate, which shall refer
to the loan prime rate issued by the National Interbank Lending Center (www.shibor.org).

 

1.8 Agricultural Bank of China means the Agricultural
Bank of China Company Limited

 

Article 2 Borrower’s undertakings

 

The Borrower undertakes that:

 

2.1 The loan applications are made in compliance with laws
and regulations: The Borrower is a legal-person corporate or public institution established in accordance with the law and registered
with the competent authority, or an organization that may act as a Borrower under State laws and regulations. The Borrower has
good credit records and is with no major bad records. The purpose of the loan and the source of repayment funds is clear and legal.
There is no other violation of law or regulation.

 

    2

     

    

 

2.2 There is no deficiency in the signing of the Contract:
In order to sign this Contract or perform the Borrower’s obligations under this Contract, the Borrower has performed
the necessary procedures according to laws, regulations, or the requirements of the company internal management. this Contract
is signed or sealed by the legal representative, the competent person or the authorized representative of the Borrower. The
Borrower(enterprise) authorized the Borrower (Individual) to sign the Mortgage E-loan related contracts, agreements and other
legal documents, including this Contract, with the Lender. The Borrower will actively go through or cooperate with the Lender
to go through the Contract approval, registration, or filing process. There are no other circumstances that may cause deficiency
in the validity of the loan contract due to reasons of the Borrower.

 

2.3 The guarantee provided is legal and valid: The Borrower
ensures that the guarantor has conducted the necessary procedures in accordance with laws, regulations, or the articles of association
for signing the guarantee contract or performing its obligations under the guarantee contract. The guarantor shall have the right
to set up a mortgage on the mortgaged property. The person who signs the guarantee contract shall be the authorized signatory.
The Borrower shall urge the guarantor to actively go through or cooperate with the Lender to go through the approval, registration,
or filing of the guarantee contract and the registration of the mortgage. There is no other deficiency in the validity of the
guarantee or circumstances that are likely to cause material adverse changes.

 

2.4 Perform the rights and obligations under the Contract in
good faith: The Borrower shall use the loan according to the time limit, purpose, and method stipulated in the Contract, and shall
not use the loan to engage in illegal activities. The Borrower shall actively cooperate with relevant state authorities and the
Lender in loan payment management, post-loan management, and related inspections. The Borrower shall timely and fully repay the
loan in accordance with the Contract, and shall not evade the debt by any means. The consent of the Lender shall be obtained before
the Borrower making any investment substantially increasing debt financing, merger, division, equity transfer and other major
matters. The Lender shall have the right to recall the loan in advance based on the capital flows of the Borrower. The Borrower
shall notify the Lender in time of any material adverse events affecting the solvency of the Borrower. The Borrower confirms that
there is no other breach of contractual obligation.

 

2.5 The Borrower (Enterprise) authorizes the Borrower (Individual)
to apply for the loan, sign contracts, use loans, repay loans, and settle loans through self-help electronic channels on its behalf.

 

    3

     

    

 

2.6 The Borrower does not conceal from the Lender anything
that has occurred or is occurring which may affect its financial position and solvency, including but not limited to: litigation,
arbitration, other administrative proceedings or incidents giving rise to claims.

 

2.7 The documents and materials about the Borrower, the guarantor,
and shareholders provided by the Borrower are authentic, complete, accurate, legal, and valid.

 

Article 3 General Terms

 

3.1 Method of Loan

 

3.1.1 The Lender shall issue loans to the Borrower in the following
ways:

 

(1) Currency and amount of loan: RMB 9 million

 

(2) Effective Term: December 3, 2019 to December 3, 2022.

 

(3) The actual effective term and specific starting and ending
date of the loan and the actual amount of the loan shall be subject to the electronic loan certificates issued by the Lender to
the Borrower separately. The loan certificates are a part of this Contract.

 

3.1.2 The Lender has the right to re-evaluate or adjust
the line of credit and the effective term under this Contract according to the Borrower's use of the loan under this Contract,
the line of credit of the Borrower in other financial institutions, and the Borrower's financial status, business performance,
cash flows, changes in security conditions or other factors.

 

3.1.3 The minimum amount of a single loan applied by the Borrower
each time shall be RMB 10,000 and shall increase by a round amount each time. The minimum term of the loans shall be 1
day.

 

3.2 Purpose of the loan

 

The loan shall be used for: the production and operation of
the Borrower (Enterprise).

 

3.3 Interest rate, penalty interest, and compound interest

 

3.3.1 Borrowing rate

 

    4

     

    

 

3.3.1.1 For loans denominated in RMB, the interest rate shall
be determined according to (1) below:

 

(1) Fixed interest rate (prime rate pricing): one-year LPR,
effective one working day prior to the withdrawal date of each loan (the withdrawal date of each loan/the Contract signing
date) minus (plus/minus) fifteen bp (1bp =0.01%), until the maturity date of the loan.

 

(2) Floating rate (prime rate pricing): the rate shall be determined
according to the LPR plus or minus a fixed difference agreed in each period, and it shall float periodically. Under this Contract,
the interest rate shall be adjusted for a period of —— months and the difference shall be ——(plus/minus)_——_
bp (1bp=0.01%). The difference shall remain unchanged during the term of the loan. During the term of the loan, the LPR executed
in the first period is the one-year LPR effective one working day prior to the withdrawal date of the loan; the LPR thereafter
shall be decided by the one-year LPR on the first day of the month corresponding to the date of borrowing and drawing of the period.
If there is no such day, the last day of the month shall be deemed as the corresponding day.

 

3.3.2 Calculation and Settlement of Interest

 

3.3.2.1 The Borrower and the Lender agree that the principal
and interest shall be repaid in accordance with (2) below.

 

(1) Interest will be paid with the principal in whole upon
maturity.

 

(2) The interest shall be paid on a monthly (monthly/quarterly)
basis, and the principal shall be repaid when it is due. The settlement date shall be the 20th day of each month (month/last
month of every quarter/last month of every year). The Borrower shall pay interest on each settlement day. If the last repayment
date of the principal of the loan is not on a settlement date, the outstanding interest shall be paid with the principal.

 

(3) Repayment by installments. It is agreed that _——_
(every quarter/every N months) is one installment period, and the repayment date is the ——(20th/Corresponding
date of the loan issuance) at the last month of each quarter or each installment period. If there is no corresponding date of
the loan issuance, the repayment date shall be the last day of the last month of each quarter or each installment period. The
method of repayment shall be_——(fully amortized/fixed principal).

 

    5

     

    

 

(4) Other methods:__________.

 

3.3.2.2 For loans with a fixed interest rate, the interest
shall be calculated at the agreed interest rate. For loans with a floating interest rate, the interest shall be calculated at
the interest rate fixed in the current period of each floating period. If the interest rate fluctuates for many times within a
single period of settlement, the floating period interest for each single period shall be calculated first and then the floating
period interest for each single period shall be added up. If other interest rates are adopted, interest shall be calculated as
agreed.

 

3.3.2.3 If the maturity date of the loan falls on a statutory
holiday or public holiday, the normal repayment date will be postponed to the first working day after the statutory holiday or
the public holiday. During the extension period, interest will be calculated and collected in accordance with the agreed interest
calculation method.

 

3.3.3 Penalty Interest

 

3.3.3.1 If the Borrower fails to repay the loan principal within
the time limit agreed herein, the Lender may charge a penalty interest of fifty percent on the basis of the executing loan
interest rate agreed herein from the overdue date, until the principal and interest are paid off. In the event of an increase
in the 1-year LPR during the overdue period of the fixed-rate (prime rate pricing) RMB loans, the penalty interest rate will be
adjusted accordingly one working day after the adjustment of the 1-year LPR.

 

3.3.3.2 If the Borrower fails to use the loan for the purpose
agreed in the Contract, the interest of the loan used by the Borrower in breach of contract will be increased by one hundred
percent (in the capital) on the basis of the agreed loan interest rate from the date of default use until the principal and
interest are paid off. In the event of an increase in the 1-year LPR during the default period of the fixed-rate (prime rate pricing)
RMB loans, the penalty interest rate will be adjusted accordingly one working day after the adjustment of the 1-year LPR.

 

3.3.3.3 If a loan is both overdue and not used for the purpose
agreed in the Contract, the penalty rate shall be calculated as the higher rate.

 

    6

     

    

 

3.3.4 Compound Interest

 

(1) If the Borrower fails to pay the interest on schedule,
the Lender shall calculate and collect the compound interest on a monthly (quarterly/monthly) basis from the date the Borrower
fails to pay on time. If the interest is not paid on the maturity of the loan, the compound interest shall be calculated and collected
according to the agreed interest rate: after the maturity of the loan, the compound interest shall be calculated and collected
according to the overdue penalty interest rate agreed in the Contract.

 

(2) The compound penalty interest for overdue loans and compound
penalty interest for default loans (loans used for purposes not agreed) shall be calculated separately with overdue penalty interest
rate and default loan penalty interest rate.

 

3.4 Withdrawal and loan payment

 

3.4.1 Withdrawal Conditions

 

3.4.1.1 The Borrower applying for withdrawal shall meet the
following conditions:

 

(1) The Borrower is qualified for the loan: the corresponding
decision-making or authorizing institution of the Borrower has made a decision to approve the loan in accordance with the law
and has been approved by relevant departments if such approval is necessary;

 

(2) The relevant guarantee procedures required by the Lender
have been completed, and the guarantee is legal and valid;

 

(3) The loan shall be used in accordance with the provisions
of laws and regulations and the provisions of the loan contract and the corresponding commercial contracts;

 

(4) The relevant undertakings made by the Borrower at the time
of signing the Contract shall remain true and valid at the time of each withdrawal, without any important or material adverse
change or other material adverse circumstances that may affect the performance of the Contract;

 

(5) The Borrower shall provide true, complete, and valid information
as required by the Lender;

 

(6) The Borrower does not have any material adverse conditions
affecting the safety of the loan;

 

(7) The Borrower meets the Lender's rules on payment management;

 

(8) Other conditions agreed by both parties:——.

 

    7

     

    

 

3.4.1.2 If the Borrower fails to fulfill the conditions
agreed in 3.4.1.1 within 6 months from the date of signing this Contract, the Lender has the right to terminate this Contract.
When the Lender terminates the Contract, the Borrower’s objection period is 7 days, starting from the day when the Lender
informs the Borrower in writing, verbally, or in other ways.

 

3.4.2 Withdrawal methods

 

The Borrower can withdraw loans one by one as needed through
the business counter or self-service electronic channel provided by the Lender within the line of credit. The term of the loans
shall not exceed 3 years and the expiration date shall not exceed the expiration date of the term of this Contract.

 

3.4.3 Payment of Loan

 

(1) Self-Payment

 

The self-payment method is adopted under this Contract. The
Borrower shall keep the proof of the use of the loan funds, inform the payment situation of the loan funds according to the requirements
of the Lender, and timely provide records of the use of the loan funds and relevant materials such as commercial contracts, invoices
and other certificates corresponding to the use of the loan funds according to the requirements of the Lender. The Lender can
verify whether the loan is used for the agreed purpose through account analysis, certificate inspection, and on-site investigation.

 

(2) If the Borrower's credit status declines, the use of loan
funds is abnormal, or the loan is not repaid in accordance with the Contract, the Lender may negotiate with the Borrower to supplement
the loan issuance and payment conditions, or stop the loan issuance and payment.

 

3.5 Supervision of Account

 

3.5.1 Loan issuance/repayment account

 

Account Name: Jiangsu Huadong Medical Device Industrial Co.,
Ltd,

 

Account Number: 10158001040251314

 

    8

     

    

 

3.5.2 The Lender has the right to require the Borrower to timely
provide information about the cash flows of the account.

 

3.5.3 If the Borrower pays off the loan in advance, the Borrower
can directly pay off the loan through an account other than this account.

 

3.6 Repayment

 

3.6.1 Repayment Method

 

3.6.1.1 The Borrower shall deposit the principal and interest
of the current loan into the loan issuance/repayment account agreed in Article 3.5.1 of this Contract before 17:00 on the repayment
date, and irrevocably authorize the Lender to transfer the principal and interest of the loan from this account. If the funds
in the account are insufficient to pay off the principal, interest, and other payables of the current loan, no deduction will
be processed on the day of repayment, and the full deduction will be made on the next day. The deducted part will not be considered
overdue, and the insufficient part will be overdue and overdue interest will be calculated and collected. During the performance
of the Contract, if the Borrower requests to change the designated issuance/repayment account, the Borrower must obtain the consent
of the Lender and go through the account change procedures with the Lender.

 

3.6.1.2 If the Borrower fails to repay the loan due under
this Contract as agreed (including those declared to be due early), the Lender has the right to withhold and collect the corresponding
amount from all accounts opened by the Borrower with the Lender or other branches of the Agricultural Bank of China for repayment
until all loans incurred by the Borrower under this Contract are paid off.

 

3.6.1.3 If the Lender exercises the right of set-off in
accordance with the law or contractual arrangements, the Borrower’s objection period shall be seven days, starting from
the day when the Lender informs the Borrower in writing, verbally, or in other ways

 

3.6.2 Repayment Order

 

3.6.2.1 Unless otherwise agreed by both parties, repayment
of the Borrower shall be made in the following order:

 

    9

     

    

 

(1) If there are several loans due between the Borrower
and the Lender and repayment of the Borrower is insufficient to pay off all the loans due, the loan to be repaid and the priority
of the Borrower’s repayment shall be determined by the Lender.

 

(2) If the Lender exercises the right of set-off against the
Borrower in accordance with the law or the Contract, the loan and the priority of the set-off shall be determined by the Lender.
If the Lender exercises the right of subrogation according to law, the debts paid by the sub-debtor to the Lender and the order
of repayment shall be determined by the Lender.

 

3.6.2.2 If the Borrower's repayment is not enough to pay off
the loan, the Lender can choose to use the repayment to pay off the principal, interest, penalty interest, compound interest,
or the cost of realizing the debt.

 

3.6.3 Prepayment

 

3.6.3.1 If the Borrower pays off the loan in advance, interest
is calculated and collected on the part of the early repayment according to the actual loan period and the agreed interest rate
and the interest is paid off with the principal.

 

3.6.3.2 If the Borrower repays part of the loan in advance,
the interest of the loan that has not been repaid will still be calculated and repaid at the loan interest rate agreed in the
Contract.

 

3.6.3.3 When the Borrower processes the prepayment with
the Lender or other branches of the Agricultural Bank of China, the Borrower agrees to give priority to repaying all debts under
this Contract and all other unsecured credit loans of the Agricultural Bank of China. The guaranteed or pledged loans can be returned
in advance after all unsecured credit loans have been paid off.

 

3.6.3.4 The Borrower can settle the loan through prepayment.
After the loan is settled, the line of credit will become invalid. Unless otherwise agreed, the rights and obligations of this
Contract shall be terminated.

 

3.7 Loan Certificates

 

If the Borrower withdraws the loan via self-help electronic
channel, the amount of the loan, the withdrawal amount, the repayment amount, the date of issuance and the due date of the loan,
the term of the loan, the interest rate, and the purpose of the loan are subject to the electronic transaction records formed
by self-help electronic channel.

 

    10

     

    

 

3.8 Guarantee

 

3.8.1 The loan under this Contract is secured by: mortgage-industrial
premises; mortgage-industrial land.

 

3.8.2 The contract shall be separately signed by the Lender,
the Borrower, and the guarantor. If the maximum amount mortgage/guarantee is adopted, the guarantee contract number is 32100620190023810

 

3.9 Rights and Obligations

 

3.9.1 Rights and Obligations of the Borrower

 

(1) Withdraw the loan in accordance with the Contract;

 

(2) Pay off the principal and interest of the loan on time
and in full;

 

(3) The loan shall be used in accordance with the purposes
and methods stipulated in laws and regulations or in the Contract. The loan shall not be used for investment in fixed assets,
equity, etc., and shall not be used for production or operation in areas and purposes prohibited by the state;

 

(4) Accept and actively cooperate with the Lender and its agents
to supervise and inspect financial activities, loan usage, and other related matters: promptly report to the Lender the loan usage,
financial situation, and other relevant materials and information at the request of the Lender.

 

(5) The Borrower shall notify the Lender in writing in advance
of any of the following acts and acquire Lender’s approval. The Lender may also participate in such acts:

 

		1	Sub-contracting, leasing, shareholding reform, joint operations,
                                         mergers, consolidations, acquisitions, divisions, reduction of registered capital, joint
                                         ventures, major asset transfers, major outbound investments, bond issuance, large-amount
                                         financing, major related transactions, applications for suspension of business for rectification,
                                         application for dissolution, filing for bankruptcy, etc.;

 

    11

     

    

 

		2	Providing a large number of surety bonds for the debts of
                                         others or mortgaging or pledging its main assets to a third party, which may affect the
                                         Borrower's solvency:

 

		3	Other material adverse circumstances of the Borrower that
                                         are sufficient to cause significant changes in the credit-debt relationship under this
                                         Contract or to affect the realization of the creditor's right of the Lender;

 

(6) The Borrower (Enterprise) shall notify the Lender in writing
within 5 days of the occurrence of any of the following events:

 

		1	The enterprise and its legal representative, principal, or person-in-charge
                                         engage in illegal activities;

 

		2	change of subordination, major change of senior management,
                                         major adjustment of organizational structure;

 

		3	Suspension of production, closure, cancellation, revocation
                                         of business license, revocation, etc.;

 

		4	Major change of business registration information such as the
                                         business name, business scope, or other licensing matters;

 

		5	Increase of the registered capital or material amendment of
                                         the articles of association of the entity;

 

		6	Financial deterioration, serious difficulties in production
                                         and operation, or major adverse disputes;

 

		7	Involved in major litigation or arbitration, or to be subject
                                         to major administrative penalties;

 

		8	Other matters that may adversely affect the realization of the
                                         creditor's rights of the Lender.

 

(7) The Borrower (Individual) shall immediately notify the
Lender in writing when the following matters occur:

 

		1	Change of residence, contact number, etc.;

 

		2	Involved in major litigation or arbitration, or involved in
                                         criminal cases due to illegal acts;

 

    12

     

    

 

		3	The real estate of the Borrower is seized, auctioned, or sold;

 

		4	Other matters that may adversely affect the realization of
                                         the creditor's rights of the Lender.

 

(8) The Borrower agrees to receive loan-related service information
and related notices sent by the Lender through electronic channels such as mobile phone text messages and emails. In case of changes,
suspension, loss, or theft of mobile phones, mobile phone numbers, or email addresses, the Borrower shall notify the Lender in
time to avoid the disclosure of loan information. If the Agricultural Bank of China decides to charge fees for information
services in the future, it shall be implemented in accordance with relevant national regulations and contracts between the parties.

 

(9) The Borrower and its co-investors shall not evade debts
to the Lender by any means such as evacuating funds, transferring assets, or transferring shares without authorization, and shall
not engage in other acts that damage the interests of the Lender.

 

(10) Other rights and obligations stipulated by laws and regulations
or agreed by both parties.

 

3.9.2 Rights and Obligations of the Lender

 

(1) The Lender shall issue loans to the Borrower on time and
in full, except for delays caused by the Borrower's own reasons or other non-Lender reasons;

 

(2) The Lender has the right to supervise and inspect the Borrower's
production and operation, financial status, material inventory, and loan use by on-site and off-site methods, and require the
Borrower to provide relevant documents, materials, and information;

 

(3) In the event that the safety of the loan or the performance
of the debt may be affected by the Borrower, or the guarantor loses the corresponding guarantee ability in part or in whole due
to the cessation of production, cessation of business, cancellation of registration, revocation of business license, bankruptcy,
revocation or major operating loss, or the realization of the guarantee may be endangered by the value reduction, accidental damage
or loss of the mortgage of the loan, the Lender may require the Borrower to cure within a time limit, implement measures protecting
the creditor's rights, provide other valid security, or the Lender may reduce or cancel the line of credit of the Borrower, stop
issuing loans, declare the loan under this Contract and other contracts to be due in advance, or ask for the prepayment of the
loan;

 

    13

     

    

 

(4) The Lender may inquire, print, save and use the Borrower's
credit report, personal information, and credit information including credit loan information from the basic financial credit
information database as needed when processing relevant matters under this Contract and performing risk management procedures.
The Lender can provide the personal information of the Borrower and credit information including loan information to the basic
financial credit information database in accordance with relevant regulations;

 

(5) Other rights and obligations stipulated by laws and regulations
or agreed by both parties.

 

3.9.3 Other Obligations

 

(1) Each party has the obligation to keep confidential the
other party’s business secrets and other interest-related information obtained during the signing and performing of the
Contract; unless otherwise provided by laws and regulations, one party shall not disclose the above information to any third party
without the other party’s consent.

 

(2) After the termination of the rights and obligations under
the Contract, each party shall perform the necessary obligations such as notification and assistance in accordance with the principle
of good faith,

 

Article 4 Legal Responsibilities

 

4.1 The following behaviors of the Borrower constitute a
breach of contract:

 

(1) Breach of contractual obligations;

 

(2) Failure to fulfill the promise made in Article 2 of this
Contract;

 

(3) Express or demonstrate by conduct an unwillingness to repay
the loan that is due or undue;

 

(4) Other obligations under the Contract signed between the
Borrower and the Lender are not fulfilled or fully fulfilled, and the Lender declares that the Borrower constitutes a breach of
contract;

 

(5) Other situations where the Borrower does not perform or
does not fully perform the Contract.

 

    14

     

    

 

4.2 Under the following circumstances, the Lender can terminate
this Contract and other contracts signed by both parties:

 

4.2.1 The Borrower

 

(1) The Borrower or guarantor breached the Contract;

 

(2) The Borrower's or guarantor's repayment ability may undergo
major adverse changes;

 

(3) Mortgage or pledge may suffer significant damage or value
loss;

 

(4) Adjustments in national policies that may have a significant
adverse effect on the security of the loans;

 

(5) Listed in the Agricultural Bank of China's anti-money laundering
and terrorist financing high-risk, prohibited, or sanctioned list;

 

(6) Listed as a dishonest person subject to enforcement by
the judicial authorities;

 

(7) Bad records in the credit report;

 

(8) Major defaults against other creditors;

 

(9) Situations that endanger the security of loans, such as
participating in private lending or being involved in major lawsuits.

 

4.2.2 Borrower (Enterprise)

 

(1) Change of business status to revocation of business license,
cancellation, moving into or moving out of a registered place of business, suspension of business, or liquidation;

 

(2) The amount of external guarantee has significantly increased;

 

(3) External guaranteed loans are overdue;

 

(4) Having financed from four or more banks (including the
Agricultural Bank of China);

 

(5) Regarded as an illegal operation by departments such as
the environmental protection department.

 

    15

     

    

 

4.2.3 Borrower (Individual)

 

(1) Does not act as the actual controller of the Borrower (Enterprise)
anymore;

 

(2) Loans or credit cards under the Borrower’s name are
overdue for more than 3 consecutive periods;

 

(3) Loans or credit cards under the Borrower’s name have
been overdue for more than 6 periods collectively;

 

(4) Dead, declared missing, or declared dead:

 

(5) Involved in criminal cases.

 

4.2.4 Other circumstances under which the Contract can be rescinded
by law or as agreed by the Lender and the Borrower.

 

4.2.5 If the Lender terminates the Contract, the period
for the Borrower's objection shall be seven days, starting from the day when the Lender notifies the Borrower in writing, orally,
or in other forms.

 

4.3 In the event of Article 4.1, Article 4.2, or other circumstances
that may affect the security of the lending, the Lender may have the following remedies:

 

(1) Require the Borrower and the guarantor to cure the breach
of contract or other circumstances that are not conducive to the security of the loan within a time limit, implement other debtor
rights protection measures or provide other effective security;

 

(2) If the Borrower fails to use or repay the loan as agreed,
or fails to pay the interest payable as agreed. The Lender can calculate and collect the penalty interest and compound interest
according to the Contract until the principal and interest are paid off;

 

(3) Reduce or cancel the Borrower’s line of credit, stop
issuing loans, ask for the prepayment of the loan issued, and announce the expiry of loans under other loan contracts signed
by the Borrower and the Lender;

 

(4) Exercising statutory or contractual rights such as offsetting
against the Borrower;

 

(5) Require the Borrower to bear damages and other legal liabilities;

 

(6) Take corresponding asset preservation measures and other
legal measures;

 

    16

     

    

 

(7) Publicly disclose the Borrower’s breach of contract.

 

4.4 If the Borrower’s breach of contract causes the Lender
to realize the creditor’s rights by litigation or arbitration, attorney’s fees, travel expenses, execution fees and
evaluation fees and all other costs of realizing the creditor’s rights paid by the Lender in connection with litigation
or arbitration shall be borne by the Borrower.

 

4.5 On the premise that the Borrower fulfills the obligations
stipulated in this Contract, if the Lender fails to issue the loan in full and on time (except for the circumstances stipulated
in Article 3.1 and 2 of this Contract), the Lender shall compensate the Borrower the actual loss suffered by the Borrower.

 

Article 5 Miscellaneous

 

5.1 Notices and other communications under this Contract shall
be delivered to the other party in accordance with the address, telex number or other contact methods recorded in this Contract.
The party shall timely notify the other if there is any change to the contact information.

 

5.2 The Lender may charge fees based on the items and standards
determined by the Lender in accordance with laws and regulations unless otherwise agreed by both parties. If the Lender adjusts
the items and standards in accordance with laws and regulations, the Borrower may not be notified separately after the announcement,
unless the laws and regulations or the parties agree otherwise.

 

The fees to be paid by the parties to the third party required
for the performance of this Contract shall be borne by the parties through negotiation. If there is no negotiation or negotiation
fails, the parties shall bear the liabilities according to laws and regulations or in accordance with the principle of fairness.

 

5.3 The Lender or the Agricultural Bank of China may authorize
or entrust other branches of the Agricultural Bank of China to perform the rights and obligations under this Contract (including
but not limited to post-loan management, loan collection and settlement, the exercise of security rights, and issuance of credit,
etc.), or transfer the loan under this Contract to other branches of the Agricultural Bank of China to undertake and manage. The
Borrower acknowledges this and bears the corresponding legal consequences of such actions under this Contract. The above acts
of the Lender do not require the Borrower's consent.

 

    17

     

    

 

5.4 The Lender has the right to provide information related
to this Contract (including but not limited to loan type classification, loan overdue information, etc.) and other relevant information
of the Borrower to the basic financial credit information database in accordance with the requirements of relevant laws and regulations
or financial regulator. The Lender shall not be liable in any form for any adverse effect or loss caused to the Borrower by
any third party's reliance on or use of such information.

 

5.5 During the term of this Contract, if the Lender is unable
to continue to perform this Contract or any part of this Contract due to the promulgation or modification of any law, regulation,
national policy, or regulatory provision, the Lender shall have the right to cancel the outstanding balance of the line of credit
and take other measures as the Lender deems necessary in accordance with the relevant provisions above.

 

5.6 The failure of the Lender to exercise or partially exercise
or delay in the exercise of any right under this Contract does not constitute a waiver or modification of the right or other rights,
nor does it affect the Lender’s further exercise of this right or other related rights.

 

5.7 The Borrower (Enterprise) and the Borrower (Individual)
shall bear joint and several liabilities for repayment of all loans under this Contract. If the Borrower defaults, the Lender
has the right to require any Borrower to bear all loans.

 

5.8 The content filled in by the Borrower when applying for
the loan constitutes a part of this Contract, and the reminders, announcements, notices and other information materials that the
Lender supplies to the Borrower through the Internet during the processing under this Contract are all valid components of this
Contract. The above all have the same legal effect as this Contract.

 

5.9 Unless there is reliable and definite evidence to the contrary,
the Lender's internal accounting records about the principal, interest, expenses, and repayment records, and the documents, certificates,
electronic records, records and certificates of the Lender's collection of loans made or retained by the Lender during the process
of withdrawal, repayment of the loan and interest shall constitute valid evidence for the credit-debt relationship between the
Borrower and the Lender.

 

    18

     

    

 

5.10 Tax and Invoice Clause

 

5.10.1 VAT has been included in the amount collected by the
Lender from the Borrower under this Contract in compliance with the relevant national tax laws and regulations. The VAT rate is
determined in accordance with the provisions of national laws and regulations. In case of adjustments to national tax administration
laws and regulations during the performance of the Contract, the Lender will adjust relevant tax rates and other related content
accordingly.

 

5.10.2 The Lender will issue a special VAT invoice or plain
VAT invoice to the Borrower in accordance with national laws and regulations. If the Borrower requests a special VAT invoice,
it shall comply with the conditions and procedures stipulated by national tax laws and regulations, otherwise the Lender has the
right to refuse the Borrower’s request for such special VAT invoices under this Contract. The Borrower shall have the right
to require the issuance of an invoice within 360 days after the Lender receives the taxable payment from the Borrower. The invoice
shall be issued by the Lender or by the issuing institution designated by the Lender. If the Borrower fails to claim the VAT
invoice within the time limit, the Lender may no longer provide the VAT invoice.

 

5. 10.3 If the Borrower issues the special VAT invoice or ordinary
VAT invoice to the Borrower incorrectly due to the Borrower’s faults, the Borrower shall bear the responsibility, and the
Lender shall have the right to require the Borrower to bear responsibility for the losses or other adverse consequences caused
to the Lender. The Borrower has the obligation to cooperate with the Lender to complete the processing of relevant invoices in
the case of invalidation of VAT invoices or issuance of red-letter invoices due to errors in invoicing.

 

5.11 Anti-money Laundering Clause

 

5.11.1 The Lender has the right to require the Borrower to
provide relevant information and materials according to laws, regulations, and regulatory requirements, as well as requirements
of the Lender for compliance management, anti-money laundering, anti-terrorist financing, anti-tax evasion due diligence, etc.,
which the Borrower accepts and with which the Borrower agrees to cooperate.

 

    19

     

    

 

5.11.2 The Borrower promises to strictly abide by the relevant
international and domestic anti-money laundering, anti-terrorist financing, anti-tax evasion and other laws and regulations: the
transaction under this Contract does not involve any entity, individual, commodity, country or airlines that is sanctioned by
China, the United Nations, the United States, the European Union, the United Kingdom, or any country/region identified by the
Lender. The Borrower will unconditionally cooperate with and accept the relevant investigation or review of the anti-money laundering,
anti-terrorist financing, and anti-tax evasion work of the Lender, and truthfully provide relevant information and materials required
by the Lender, cooperate with the Lender to take other measures relating to anti-money laundering, anti-terrorist financing, and
anti-tax evasion. The Borrower shall be liable for all consequences arising from the violation of international or domestic anti-money
laundering, anti-terrorist financing, anti-tax evasion laws, and regulations and contractual stipulations, and shall compensate
the Lender or a third party for losses (including but not limited to economic losses and administrative penalties) caused thereby.

 

5.11.3 If the Borrower fails to cooperate or the Lender determines
that the Borrower's risk of money laundering, terrorist financing, tax evasion, etc. have increased, or the relevant laws, regulations,
or regulatory requirements have been promulgated, the Lender shall have the right to take the following measures, including but
not limited to: stop the transaction with the Borrower, terminate the Contract with the Borrower, declare early maturity of the
Borrower's financing or demand compensation for losses; declare the immediate maturity of the debt under other contracts with
the Borrower, exercise the security right or take other asset preservation measures; and take other control measures as deemed
necessary by the Borrower.

 

5.12 Dispute Resolution

 

5.12.1 In the event of a dispute, it shall be resolved through
negotiation between the two parties; if the negotiation fails, it shall be resolved according to method (1):

 

(1) File a lawsuit with the people's court where the Lender
is located;

 

(2) Submit to ______ (full name of the arbitration institution)
for arbitration in accordance with its arbitration rules.

 

    20

     

    

 

5.12.2 During the period of litigation or arbitration, the
provisions of this Contract that do not involve disputes shall continue to be performed.

 

5.13 Address for Service

 

The address of the Borrower (Enterprise) or the mailing address
of the Borrower (Individual) set forth herein, as well as the business registration address of the Borrower (Enterprise) or the
resident identity card registration address of the Borrower (Individual) shall be the address for service of the relevant documents
of the loans under this Contract.

 

The Borrower agrees that the Lender or the authority that has
jurisdiction over the dispute may also serve the relevant legal documents on the Borrower by electronic service as described in
(1) below:

 

(1): Mobile phone (SMS): 13905273399

 

(2) Fax:——

 

(3) Email: ——

 

(4) WeChat: ——

 

(5) Other electronic methods: ——

 

5.13.1 The service address stipulated in this Contract shall
be used for the following matters, including but not limited to: non-litigation debt collection and notification documents issued
by the Lender under this Contract; service of relevant legal documents (judicial documents) in case of legal disputes under this
Contract, including but not limited to the service of first instance, second instance, retrial, and implementation procedure documents.

 

5.13.2 If the delivery address of the parties agreed in this
Contract changes, the party shall notify the other party in writing within three days from the date of the change: if the delivery
address changed after the disputes arising from this Contract enter arbitration or civil proceedings, the Borrower shall confirm
the address for service after the change with the arbitration institution and the court in accordance with judicial procedures;

 

    21

     

    

 

5.13.3 If debt collection notice and relevant legal documents
failed to be delivered due to the inaccuracy of the service information provided by the Borrower or the failure to promptly notify
the Lender, the court or the arbitration institution of the changes of delivery information, or that the recipient designated
by the Borrower refuse to sign or return the documents, the document shall be: deemed delivered on the date of return indicated
on the mail receipt if it was delivered by mail; deemed delivered on the date on which the information is recorded on the service
receipt on the spot by the service processer if it was delivered by hand; deemed delivered when the service processor take photos
and videos at the agreed service address and save the relevant audio-visual materials if it was delivered by lien; deemed delivered
at the date of entering the system designated by Party B if it was electronically delivered; the Borrower or the guarantor shall
bear the legal responsibility by themselves if such collection notice and legal documents is not received.

 

5.13.4 The service clause and dispute resolution clause of
this Contract are independent clauses and shall not be affected by the validity of the Contract as a whole or other clause of
the Contract.

 

5.14 Validity of the Contract

 

5.14.1 This Contract shall take effect from the date of signing
or sealing by both parties

 

5.14.2 This Contract is signed at: Yangzhou

 

5.14.3 This Contract is signed on: December 03, 2019

 

5.14.4 Matters not covered in this Contract shall be determined
by the parties through negotiation.

 

5.14.5 This Contract is made in triplicate; the Borrower,
the Lender, and the guarantor shall each have one copy; and all copies shall have the same effect.

 

    22

     

    

 

Borrower’s statement: The Lender has reminded us of
the relevant terms (especially the terms in boldface) in accordance with the law. At our request, the Lender has made an explanation
with regard to the concept, content, and legal effects of the relevant terms. We have known and understood the relevant terms
of this Contract.

 

Borrower (Enterprise) (Signature/seal): (Seal) Jiangsu Huadong
Medical Instrument Industry Co., Ltd.

 

Legal representative/person-in-charge

 

or an authorized representative

 

Borrower (Individual): (Signature and Seal) Yongjun Liu

 

Statement of the Borrower's Spouse

 

As the spouse of the Borrower, I have fully understood the
contents of the "Mortgage E-Loan Contract of Agricultural Bank of China Limited" signed by the Borrower and the Lender.
I confirm that we did not agree that the property after marriage shall belong to each other. The debts borne under this Contract
are communal debts of the husband and wife, and I am willing to jointly and severally pay off the loan with the Borrower.

 

I hereby declare as above.

 

Signature: (signature) Yin Liu

 

ID number: 321027195901245127

 

    23

     

    

 

(Lender Signature/Seal Page)

 

This page is the signature page for the Contract numbered
32010320190012775.

 

Lender (Signature/Seal): (Seal) Agricultural Bank of China
Limited, Yangzhou Runyang Branch

 

Legal representative/person-in-charge

 

or an authorized representative: (Seal) Qiong Wang

 

    24

     

    

 

ABCJS [2015]2002-1

 

Agricultural Bank of China Co., Ltd.
Jiangsu Branch

Maximum Amount Mortgage Contract

(Inclusive of Real Estate Mortgage List)

 

AGRICULTURAL BANK OF CHINA

 

    25

     

    

 

ABCJS [2015]2002-1

 

Maximum Amount Mortgage Contract

 

Contract number: 32100620190023810

 

Dear customer: In order to protect your rights and interests,
please carefully read the terms of this Contract (especially the terms in boldface) before signing this Contract, and pay attention
to your rights and obligations in the Contract. If you have any questions about this Contract, please consult the handling bank.

 

Mortgagee (full name): Yangzhou Runyang Branch of Agricultural
Bank of China Co., Ltd.

Mortgagor (full name): Jiangsu Huadong Medical Device Industrial
Co., Ltd, [江苏华东医疗器械实业有限公司]

 

In view of the fact that the mortgagor is willing to provide
the maximum amount mortgage guarantee for the creditor’s rights established through a series of business contracts (hereinafter
referred to as the “Master Agreement”) signed by the mortgagee and Jiangsu Huadong Medical Device Industrial Co.,
Ltd, (hereinafter referred to as the “Debtor”) in accordance with Article 1 of this Contract, the parties concerned
have agreed to enter into this Contract in accordance with relevant national laws and regulations.

 

Article 1 Guaranteed
creditor’s rights and maximum amount

 

1. The mortgagor voluntarily provides guarantee for the following
creditor’s rights between the mortgagee and the debtor, and the maximum balance of the guaranteed creditor’s rights
is equivalent to RMB 14,550,000. Foreign currency transactions shall be converted according to the selling price on the day when
the transaction occurred as agreed upon item (1) of this article.

 

(1) From December 03, 2019 to December 02, 2022, the mortgagee
has completed various types of business agreed with the debtor, based on which the creditor’s rights were formed. This period
is the period for determining the maximum amount of secured creditor’s rights. The above-mentioned business specifically
includes: [Subject to the “√” mark]:

 

☑ RMB/foreign
currency loan ☑ Relief guarantee issuance ☑ Export
package loan

☑ Commercial
bill discount ☑ Import bill advance ☑ Bank
Guarantee

☑ Commercial
bill acceptance ☑ Export bill advance ☑ Account
overdraft 

☑ Other
business: Trade Finance

 

    26

     

    

 

(2) The principal of the unpaid debts under the followings
Master Agreements formed between the mortgagee and the debtor and their corresponding interests, penalty interests, compound interests,
expenses, etc.; the interests, penalty interests, compound interests, and expenses shall be calculated from the date of payment
as agreed under the Master Agreements to the date when the debt is actually paid.

 

	Contract
    title	 	Contract
    Number	 	Unpaid
    Principal	 	Currency
	 	 	 	 	 	 	 

(The additional tables added because of insufficient columns
in the table are an integral part of this Contract.)

 

2. The type, amount, interest rate, time limit and other contents
of each business guaranteed by this Contract are subject to relevant legal documents or certificates.

 

3. During the term agreed in this Contract and within the maximum
balance, the mortgagee does not need to go through the guarantee procedures one transaction by one transaction in order to issue
the loan stipulated in this Contract or provide other bank credits.

 

4. For the business that occurs during the term agreed in this
Contract and within the minimum balance, the currency of the business shall not be limited, and the mortgagor shall assume the
responsibility of guarantee calculated in the original currency.

 

    27

     

    

 

Article 2 The scope of mortgage

 

The scope of the mortgage guarantee includes the loan principal,
interest, penalty interest, compound interest, liquidated damages, and damages under this Contract. It also includes the interest
on delayed performance of debts and late performance payment borne by the borrower and the guarantor according to the relevant
provisions of the Code of Civil Procedure, as well as litigation (arbitration) fees, attorney fees and other costs for the lender
to claim the debt.

 

For the part that actually exceeds the maximum balance due
to exchange rate changes, the mortgagor voluntarily assumes the responsibility for the guarantee of such part.

 

Article 3 Collateral

 

1. The mortgagor agrees to mortgage No. 88 Tongda Road,
Touqiao Town as the collateral. The collateral hereby is detailed in the list of real estate mortgages attached to this agreement.
The list of real estate mortgages is an integral part of the Contract and has the same legal effect as this Contract.

 

2. The temporary value of the above-mentioned collateral is
(currency and capitalized amount) RMB 14,550,000, and the final value of the collateral shall be based on the actual price
of the collateral at the realization of the mortgage rights.

 

Article 4 The mortgagor’s promises:

 

1. The mortgagor has obtained the authorization required for
the guarantee contract in accordance with the relevant regulations and procedures.

 

2. The mortgagor has full and undisputed ownership of or right
to dispose of the collateral.

 

3. The collateral can be legally circulated or transferred.

 

4. There are no circumstances such as seizure, impoundment
or supervision on the collateral.

 

5. The mortgagor has truthfully informed the mortgagee of all
unpaid taxes, unpaid construction price of the collateral, and the facts that the collateral has been mortgaged or leased.

 

6. The mortgagor has obtained the consent of all co-owners
of the collateral to the mortgage matters under this Contract.

 

    28

     

    

 

7. During the mortgage period, if any one of the following
situations occurs, the mortgagor shall immediately notify the mortgagee in writing:

 

		(1)	The collateral is seized, impounded or supervised, or any other
                                         compulsory measures are taken against the collateral;

		(2)	The mortgagor changes its capital structure or management system,
                                         including but not limited to sub-contracting, leasing, shareholding system transformation,
                                         joint operation, merger, division, joint venture, asset transfer, etc.;

		(3)	The mortgagor’s business license is revoked or cancelled
                                         or the mortgagor’s business is closed down or dissolved for other reasons;

		(4)	The mortgagor applies for bankruptcy, reorganization, reconciliation
                                         or is filed for bankruptcy or reorganization.

 

8. There are no other circumstances of the collateral that
may affect the mortgagee's realization of the mortgage rights.

 

Article 5 Effect of mortgage

 

The effect of the mortgage right extends to the subordinate
objects, subordinate rights, subrogation objects, separation objects, attachments, mixtures and processed objects of the collateral,
and other properties and rights stipulated by laws and regulations.

 

Article 6 Possession and management of the collateral

 

1. The collateral under this Contract shall be in the possession
of the mortgagor, and the mortgagor shall have the obligation to properly manage and reasonably use the mortgaged property. The
mortgagee has the right to supervise and inspect the management and use of the collateral.

 

    29

     

    

 

2. During the mortgage period, without the written consent
of the mortgagee, the mortgagor shall not give, transfer, lease, remortgage the collateral or make any other dispositions. With
the written consent of the mortgagee, if the mortgagor disposes of the collateral by transfer, lease or other means, the proceeds
shall be used to pay off the secured creditor's rights in advance or such proceeds should be deposited.

 

3. During the mortgage period, if the collateral is damaged,
lost, confiscated or appropriated or a third party takes the ownership of the collateral due to attachment, mixing, or processing,
the mortgagor shall take effective measures in time to prevent the loss from expanding, and immediately notify the mortgagee in
writing. The mortgagee has the right to priority compensation for the insurance money, damages or compensation received; If the
performance period of the secured claim has not expired, the mortgagee shall have the right to request early payment of the debt
or deposit.

 

4. During the mortgage period, if the value of the collateral
decreases, the mortgagee has the right to request the mortgagor to restore the value of the collateral or provide a guarantee
equivalent to the reduced value recognized by the mortgagee.

 

Article 7 Insurance of collateral

 

When both parties negotiate for purchasing insurance for the
collateral, the following terms shall be followed:

 

1. The mortgagor shall purchase insurance from an insurance
company with strong solvency, and the original insurance documents shall be kept by the mortgagee.

 

2. The insurance premium shall be borne by the mortgagor, who
shall pay the insurance premium on time and in full, and perform other obligations under the insurance contract (including insurance
policies or other insurance certificates, the same below). If the mortgagor fails to pay the insurance premium or go through the
insurance (renewal) procedures in accordance with the Contract, the mortgagee has the right to advance or go through the insurance
(renewal) procedures on the mortgagor’s behalf, and the relevant expenses shall be borne by the mortgagor. The mortgagor
agrees that the mortgagee is entitled to collect the above-mentioned expenses from any account opened by the mortgagor with any
branch of Agricultural Bank of China.

 

    30

     

    

 

3. During the mortgage period, without the written consent
of the mortgagee, the mortgagor shall not unilaterally or negotiate with the insurer to modify, dissolve or terminate the insurance
contract; the mortgagor shall not waive the right to claim damages from the insurance company or from a third party.

 

4. During the mortgage period, in the event of an insurance
incident on the collateral, the mortgagor shall immediately notify the insurer and the mortgagee, and shall be responsible for
filing claims for damages. If the mortgagor fails to notify the insurer and the mortgagee or file claims in time and such failure
causes losses to the mortgagee, the mortgagor shall be liable for compensating the mortgagee for any losses.

 

Article 8 Mortgage registration

 

1. The mortgagor shall go through the mortgage registration
process at the relevant registration agency within five days after this Contract takes effect. Certificates of other rights, mortgage
registration documents or other certificates of rights of the collateral shall be in the possession of the mortgagee.

 

2. During the mortgage period, if any registration modification
needs to be made with the registration authority, the mortgagor shall go through the corresponding registration modification procedures
with the relevant authority in time.

 

3. During the mortgage period, if the mortgagee transfers the
maximum mortgage rights in accordance with this Contract, the mortgagor shall assist the mortgagee and the transferee to handle
the corresponding registration modification procedures.

 

Article 9 Transfer of mortgage

 

1. Before the creditor's rights secured by the maximum amount
of this Contract are determined, if the mortgagee transfers part of the creditor's rights, the mortgagee has the right to transfer
the corresponding mortgage rights.

 

2. After the creditor's rights secured by the maximum amount
under this Contract are determined, if the mortgagee transfers part of the creditor's rights, the mortgagee has the right not
to transfer the corresponding mortgage rights.

 

    31

     

    

 

Article 10 Determination of secured claims

 

In the event of any of the following circumstances, the secured
claims by the maximum mortgage under this Contract are determined:

 

1. The period for determining the claims expires. " The
expiration of period " includes the expiration of the agreed period of for establishment of the claims in the Article 1 of
this Contract, and the case where the mortgagee announces in advance the expiration of the period for determination of the claims
in accordance with national laws and regulations or this Contract. If the Debtor violates the obligations stipulated in the Master
Agreement or the mortgagor violates the obligations stipulated in this Contract, the mortgagee shall have the right to announce
the expiration of the period for determination of the claims in advance.

 

2. New claims are unlikely to occur.

 

3. The collateral is seized or impounded.

 

4. The debtor or mortgagor is declared bankrupt, or the business
license of the debtor or mortgagor has been revoked.

 

5. Other circumstances stipulated by law that provide for the
determination of the claims.

 

    32

     

    

 

Article 11 Realization of mortgage rights

 

1. In any of the following circumstances, the mortgagee shall
have the right to exercise the right of mortgage, and may negotiate with the mortgagor to receive priority compensation from the
deemed value, the auction price or the resale price of the mortgaged property. If the proceeds are not enough to pay off the secured
claims under this Contract, the mortgagee may choose to use the proceeds to repay the principal, interest, penalty interest, compound
interest, or expenses, etc.

 

		(1)	The debt performance period under any Master Agreement expires
                                         and the mortgagee has not been paid off. " The expiration of period" includes
                                         the expiration of the debt performance period under the Master Agreement, and the case
                                         where the mortgagee declares that claims under the Master Agreement are due early in
                                         accordance with national laws and regulations or the Master Agreement;

		(2)	The debtor’s or mortgagor’s business license is revoked,
                                         or the business is closed down or dissolved for other reasons;

		(3)	The court has accepted an application for bankruptcy against the
                                         debtor and/or the mortgagor, or has ruled for reconciliation;

		(4)	The debtor or mortgagor is dead, declared missing or declared
                                         dead;

		(5)	The collateral is seized, impounded, supervised, or other compulsory
                                         measures are taken against the collateral;

		(6)	The collateral is damaged, lost, confiscated or expropriated;

		(7)	The mortgagor fails to restore the value of the collateral or
                                         provide corresponding guarantees as required by the mortgagee;

		(8)	The mortgagor violates the obligations under this Contract:

		(9)	Other situations that seriously affect the realization of mortgage
                                         rights.

 

2. If there are both mortgages (including if provided by the
debtor or a third party) and surety bonds for the creditor's rights under this Contract, the mortgagee may claim with respect
to the mortgages, or require the guarantor to assume the surety bonds duty. If there are two or more mortgage providers for the
creditor’s rights guaranteed by this Contract (including the mortgages provided by the debtor), the mortgagee shall have
the right to exercise the security right in any or each of the collateral. If the mortgagee has chosen a certain way of security
or a certain collateral to realize the creditor’s rights, the mortgagee can also claim to realize all or part of the creditor’s
rights through other ways of security or other collaterals.

 

    33

     

    

 

3. If the mortgagor is a third party rather than the debtor
and the debtor also provides mortgages for the creditor's rights guaranteed by this Contract, where the mortgagee waives the right
concerning the debtor’s mortgages or the priority of the right concerning the debtor’s mortgages, or modifies the
right concerning the debtor’s mortgages, the mortgagor agrees to continue to provide mortgage guarantee for the creditor's
rights under the Master Agreement in accordance with this Contract. The “right concerning the debtor’s mortgages”
refers to mortgage rights based on the mortgages provided by the debtor for the creditor’s rights under the Master Agreement.

 

4. The mortgagor uses the collateral under this Contract as
guarantee for the debts between the debtor and the mortgagee, including but not limited to several debts under this Contract.
If the deemed value, the auction price or the resale price of the collateral is not enough to pay off all the due debts, the debts
to be repaid and the priority of repayment shall be determined by the mortgagee. If the collateral is also used to guarantee other
debts between other debtors and the mortgagee, and if the deemed value, the auction price or the resale price of the collateral
is not enough to pay off all the due debts, and there are no other agreed arrangements, the debts to be repaid and the priority
of repayment shall also be determined by the mortgagee.

 

Article 12 Liability for breach of contract

1. After this Contract comes into effect, if the mortgagee
fails to perform the obligations under the Contract and such failure causes losses to the mortgagor, the mortgagee shall be liable
for compensating the mortgagor for such losses.

 

2. If the mortgagor commits any of the following acts, the
mortgagor shall pay the mortgagee 50% of the maximum balance of the creditor’s rights guaranteed by this Contract; if such
acts cause the mortgagee any losses, the mortgagee shall be compensated in full at the same time.

		(1)	The legal and valid
                                         authorization required for the guarantee under this Contract has not been obtained.

		(2)	Failure to truthfully
                                         inform the mortgagee of any unpaid tax payments or unpaid construction price of the collateral,
                                         and the existence of co-ownership, dispute, objection, established mortgage, lease, seizure,
                                         impoundment, and supervision, etc. of the collateral;

		(3)	Failure to go through
                                         the mortgage registration procedures in accordance with this Contract;

		(4)	Disposal of the
                                         collateral without the written consent of the mortgagee;

		(5)	Failure to restore
                                         the value of the collateral or provide corresponding guarantees as required by the mortgagee;

		(6)	Other acts that
                                         violate the provisions of this Contract or affect the mortgagee’s realization of
                                         mortgage rights.

 

    34

     

    

 

Article 13 Special agreement on demolition concerning
mortgaged buildings and other land attachments and construction land use rights:

 

1. If the collateral under this Contract is a building, other
land attachments, and/or construction land use rights, and the collateral needs to be demolished (hereinafter collectively referred
to as "demolition") due to expropriation, confiscation or similar circumstances, the mortgagor shall inform the mortgagee
of the demolition within 10 days of knowing such demolition.

 

2. If the demolition compensation is in the form of rights
exchange compensation and the borrower has not paid off the debts in advance, the mortgagor shall continue to mortgage the buildings,
other land attachments, and construction land use rights exchanged for the demolition for the loan and sign relevant agreements
to cooperate with the mortgagee to go through the notice registration and the mortgage registration processes for the buildings,
other land attachments, and construction land use rights exchanged for the demolition. Before the new registration of the mortgage
is completed, the mortgagee shall have the right to require the mortgagor to provide other guarantees.

 

3. If demolition compensation is in the form of monetary compensation,
the mortgagee shall have the right to receive priority compensation from the demolition compensation received by the mortgagor.
If the debt performance period has not expired, the mortgagee shall have the right to require the mortgagor to deposit the demolition
compensation into the deposits account or pledge the deposit certificates to guarantee the debt and sign the corresponding guarantee
agreement.

 

4. If the mortgagor violates the provisions of this article,
the mortgagor shall pay 100% of the principal amount of the principal creditor's rights guaranteed by this Contract to the mortgagee
as liquidated damages.

 

    35

     

    

 

Article 14 Expenses

 

For the expenses that are required for the performance of this
Contract and to be paid to third parties, such expenses shall be paid after negotiations between the parties. If there is no negotiation
or the negotiation fails, the parties shall bear the expenses in accordance with laws and regulations or the principle of fairness.

 

The laws and regulations referred to in this Contract include
the laws of the People's Republic of China, administrative regulations, local regulations, rules, judicial interpretations and
other regulations with legal effect.

 

Article 15 Objection period for the rescission of the
Contract

 

If the mortgagee exercises the right of rescission in accordance
with the law or this Contract, the period for the mortgagor to object to is seven business days, starting from the day when the
mortgagee informs the mortgagor of the recission in writing, orally or in other forms.

 

Article 16 Dispute Resolution

 

Disputes arising from the performance of this Contract can
be settled through consultations between the parties, or through the [_1_] approach as below.

 

1. Litigation under the jurisdiction of the people's court
at the domicile of the mortgagee.

 

2. Arbitration. Submit____(full name of the arbitration institution)
for arbitration in accordance with its arbitration rules.

 

During litigation or arbitration, the terms of this Contract
that are not in dispute must continue to be fulfilled.

 

Article 17 Other matters

 

1. The mortgagor shall take the initiative to check the debtor’s
operating conditions and the occurrence and performance of various businesses under this Contract. The Master Agreement, related
legal documents or certificates for various types of business under this Contract will no longer be served on the mortgagor.

 

Article 18 Entry into effect of the Contract

This Contract will take effect from the date when all parties
have signed or affixed their seals to the Contract.

 

Article 19 This Contract is in triplicate, with one
copy held by the mortgagee, one held by each mortgagor, and one held by the debtor; and all three copies have the same effect.

 

    36

     

    

 

Real Estate Mortgage List

 

	No.	 	Name
                                         of the collateral
	 	Property
    Owner	 	Location	 	Property
Certificate Number
	 	Construction

        Date
	 	Property

        Purpose
	 	Property
                                         construction

        area
	 	Mortgaged
    Property area (m2)	 	Construction
    land use right certificate number
	1	 	Industrial
                                         premises

         
	 	Jiangsu
    Huadong Medical Device Industrial Co., Ltd,	 	No.
    88 Tongda Road, Touqiao Town	 	Su
    (2019) Yangzhou Real Estate No. 0092772 	 	 —
	 	Industry	 	4586.04m2	 	4586.04	 	321002011004GB00098
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2	 	Industrial
premises
	 	 Jiangsu
    Huadong Medical Device Industrial Co., Ltd,	 	No.
    88 Tongda Road, Touqiao Town	 	Su
    (2019) Yangzhou Real Estate No. 0092824 	 	—	 	Industry	 	3709.93m2	 	3709.93	 	321002011004GB00098

 

	No.	 	Types
    of construction land use rights	 	Period
    of Right to Use (from)	 	Period
    of Right to Use (to)	 	Use
    of construction land use rights	 	Area
    of construction land use right	 	Of
    which building area	 	The
    mortgage area of the construction land use right	 	Mortgage
    and Lease	 	Temporary
    price of the mortgaged real estate 
	1	 	State-owned
construction land use right
	 	—
	 	—	 	Industrial
land
	 	11717.44m2
	 	—	 	11717.44m2	 	None	 	RMB
7.76 million

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2	 	State-owned
construction land use right
	 	 —.
	 	—	 	Industrial
land
	 	11717.44m2	 	—	 	11717.44m2	 	None	 	RMB
7.76 million

 

Notes:

 

    37

     

    

 

(Signature page. No text on this page.)

 

Mortgagor’s Statement: The mortgagee has reminded us
of the relevant terms (especially the terms in boldface) in accordance with the law, and has explained the concepts, contents
and legal effects of the relevant terms at our request. We have been informed of and understand the terms above.

 

	Mortgagee (Signature or seal)	 	Mortgagor (Signature or seal)
	 	 	 
	 	 	 
	Person-in-Charge	 	Legal Representative
	Or Authorized Agent	 	or Authorized Agent
	 	 	 
	Mortgagor (Signature or seal)	 	Mortgagor (Signature or seal)
	 	 	 
	 	 	 
	Legal Representative	 	Legal Representative
	Or Authorized Agent	 	or Authorized Agent

 

Date of Signing: December 3, 2019

Place of Signing: Yangzhou

 

The debtor hereby acknowledges the receipt of the above Maximum
Amount Mortgage Contract, and has no objection to all it terms.

 

Debtor (Signature or seal)

 

 

Legal Representative

Or Authorized Agent

 

Date of receipt:December 3, 2019

 

 

38

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00332-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00332-of-00352.parquet"}]]