Document:

No:3102002012C000000000

 

Comprehensive Facility
Contract

 

Bank of communications

 

    	 

    	 

    

 

Comprehensive
Facility Contract

 

Applicant: CER Energy Recovery (Shanghai)
Co.,Ltd

Legal representative: Wu Qinghuan

Legal Address: Room 101&102, Building#26,No.1388
Zhangdong Road,Zhangjiang Hi-tech Park

Contact Address: Room 101&102, Building#26,
No.1388 Zhangdong Road, Zhangjiang Hi-tech Park

 

Facility giver: Bank of communications,
Shanghai Branch

Head: Lv Benxian

Contact Address: No.560 Songtao Road

 

Whereas the applicant applies the comprehensive
facilities from the facility giver, both parties enter into this contract and it is agreed upon through consultation between the
parties.

 

Definition

 

In this contract, below term has its meaning
as following except there is another expressly agreed in the context.

 

“Comprehensive facility line”,
the facility giver gives the facility to the applicant which related to one or above one from following: RMB or foreign currency
working capital loan, Export rebate account mortgage loans, Opening of bank acceptance bills, opening import letters of facility,
packing facility, import bills, financing of import collection, import payment financing, export, export invoice financing, financing
of export collection, opening a letter of guarantee or other facility recognized varieties

 

“Comprehensive facility”, the
facility giver gives the applicant the max facility under this contract.

 

“Classification of facility”,
the facility giver gives the applicant the max facility for one kind of facility

 

“Facility balances” the amount
of debt which has occurred by the applicant and still does not pay off to the facility giver .Among which, in Opening of
bank acceptance /letter of facility/guarantees, that means the amount for following two: The effective bank acceptance which opened
by the facility giver/letter of facility/ guarantees, the amount which the applicant unpaid and advances by the facility giver
according to the bank acceptance /letter of facility/guarantees

 

    	 

    	 

    

 

“Classification of facility balances”,
under this contract, the amount of outstanding debt which occurred by applicant

 

“Line balance”, comprehensive
facility deducted the facility balances

 

“Classification line balance”
Facility Classification deducted classification of facility balances

 

“Facility period”, the period
that facility giver provide to the applicant according to this contract, it specially means the period of occur, and different
with the period of execution, the period of execution under this contract shall be specified in the <Apply of facility> agreed
by both parties The facility period under this contract shall from January 30, 2012 to January 20, 2013.

 

“Facility”, means the “Comprehensive
facility” or “Classification of facility” in this contract

 

“Export rebate account mortgage loans”,
the facility giver provides the applicant the short term working capital loan by the guarantee of the receivable from the applicant’s
export rebate

 

“Import financing”, the facility
giver provides the applicant short term loan based on the written applying from applicant, so that the applicant can payoff all
the payable under L/C, the applicant should repay the facility giver principal and interest in time agreed by both parties

 

“Import collection financing”,
under this facility, the facility giver provides the applicant short term loan according to the written applying from applicant,
based on that the facility giver is collection bank for applicant, and the applicant should repay the facility giver principal
and interest in time agreed by both parties

 

“Import payment financing”,
when all the import goods have been arrived in port, or according to the import contract, the advances are required, or the shipping
fee, commission and other affiliated fees should be paid, the applicant authorize the facility giver pay these expenses, and the
facility giver according to applicant’s indicators to provide the applicant the loan to pay for the import payment using
TT method, and the applicant should repay the facility giver principal and interest in time agreed by both parties

 

“Exportation documentary bills”,
the applicant submitted the facility and full set of documents to the facility giver and apply for the financing ,the facility
giver provide the short-term financing after his reviewing, applicants pay the principal and interest at the agreed interest rate
and time

 

    	 

    	 

    

 

“Financing of export collection”,
under this business, the facility giver should provide the short-term financing, applicants pay the principal and interest at the
agreed interest rate and time

 

“Export invoice financing”,
the applicant uses the TT payment for export trade, the facility giver can provide certain ratio short-term financing according
to the applicant’s invoice and applicants pay the principal and interest at the agreed interest rate and time

 

“Financing” the each money
or the total money which the facility giver give to the applicant in the different business

 

Line of facility

 

2.1 Comprehensive facility is RMB 57,000,000

 

2.2 Above money is used on RMB working
capital loan and opening bank’s acceptance

 

Facility amount for each kind

 

	RMB working capital loan	RMB 40million
	Bank acceptance	RMB 57million

 

2.3 The facility amount for each kind is
the max facility amount for related facility product. Any facility should be limited to the classification facility and comprehensive
facility

 

Precondition of using the facility

3.1 The common precondition of using the
facility

(1) The facility amount should not exceed
the comprehensive facility amount. The classification facility balance cannot exceed the matched classification facility

(2) The facility amount which plan to use
can not exceed the amount balance and classification facility balance

(3)    The
application should within the facility period

(4)    If
there is any guarantee contract which has taken effect and lasted effect , the guarantee contract is the mortgage contract, the
security interest should has been set and has the lasted effect

(5)  The applicant
has prepared all the procedures required by the facility giver, such as government permission, ratification, and registration and
so on

(6)  The request
for utilization meets the requirement of facility giver

(7) There is no
great unfavorable change for the operation and financial situation of applicant

(8)  There
is no delinquency for the applicant of the contract

(9)  The applicant
should meet the requirement of the precondition of matched classification facility

 

    	 

    	 

    

 

(10) The method of payment
for the loan should according to the terms of the contract.

(11) If use the foreign
exchange loan, the applicant should open the related account per the requirement of foreign exchange management and has provided
the documentary evidence, including but not limited to the effective foreign exchange usage certification or the registration documents

(12) The applicant has
pointed below account as the Capital Returning account and signed the account management contract per facility giver’s request

 

Account name CER Energy
Recovery (Shanghai) Co.,Ltd

Account number 310066865018010189665

Bank of deposit: Bank
of communication Zhangjiang Branch

 

3.2 The precondition
of working capital loan facility ( RMB and foreign currency)

 

(1) The
loan should use in operation turnover, among which RMB 29 million is used for shifting the loan on bank of communication

(2) The
length of maturity can not longer than 12 months and expiration date can not exceed than 2013.07.20

 

3.3 The precondition of hypothecated
loan facility amount for refunding export taxes account

(1) The apply of refunding export taxes
has got the approbation of State Administration for Taxation or the foreign trade department

(2) The first apply should provide the
tax return text of the local departments of state taxes

(3) The first apply should provide the
declaration form and detail list for the export tax return

 

3.4 The precondition of opening the bank
acceptance

(1) The applicant has put guarantee money
equal to 30% acceptance amount or provides the same amount bank certificate of deposit for mortgage

(2) The applicant has provided the trueness
and legitimate documents per the approbation of facility giver

(3) The applicant has paid the commission
charge per the facility giver’s requirement

(4) The time limit of bank acceptance can
not longer than 6 months and the expiration date cannot later than 2013.07.20

(5) The risk exposure fee has been paid
according to the contract

 

    	 

    	 

    

 

The application of facility amount

 

4.1 The facility amount is the max facility
amount which facility giver can give to the applicant under this contract. The signing of this contract doesn’t mean the
facility giver should give the amount for the facility. If the applicant needs to use the facility amount under this contract,
then he should bring the use application according to the form of “facility use application” and can use the facility
after the agreement of facility giver

 

4.2 If the facility giver agrees the application
of applicant, then the facility kind, currency, amount, usage, time limit and the rate should according to the record of “facility
use application” signed by facility giver

 

4.3
The use status should according to the documents, warrant and receipts
during the fulfilling of this contract for the facility giver

 

4.4 If the currency set in “facility
use application” is not the same as the facility currency under this contract. Then for the purpose of calculating the facility,
the will convert with the rate of each day of the bank of communication. If there is no applicable rate, then it will convert with
the reasonable rate decided by bank of communication

 

4.5 If the applicant becomes the shareholder
of guarantor or the “actual controller” defined in the “company law”, then before the Resolution Based
on Shareholder Committee which shows that they agreed to guarantee for the applicant , the facility giver has the rights to stop
or cancel the un-used facility

 

Payment of loan

5.1 The payment of loan is applicable for
this term

5.2 The applicant appoint below account
for the loan account

 

Account name CER Energy
Recovery (Shanghai) Co.,Ltd

Account number 310066865018010189665

Bank of deposit: Bank
of communication Zhangjiang Branch

 

5.3 Before each withdraw, the applicant
should make the withdraw procedure in at least XX working days and should definite the payment method, and each withdraw should
only has one kind of payment method

 

Statement and guaranty of applicant

 

6.1 The applicant established a company
by operation of law and has the necessary rights and can fulfill its obligation of this contract, and afford the civil liability

 

6.2 Signing and fulfill this contract is
the truly expression of the applicant and it has passed all the necessary agreement, ratified and authorization. There is no blemish
of the law.

 

    	 

    	 

    

 

6.3 The operation of the applicant is legal
and compliance. The applicant has the ability to last the operation and has the legal repay source. There is no big and important
bad facility record. There is also no bad record for the senior management of applicant

 

6.4 All the documents, report forms and
information which the applicant provided to the facility giver is the true, accuracy, completed and effective. The applicant does
not hide any information which may have the effect on the finance status and the repay ability. The finance status of applicant
does not have any big or adverse changes from the finance report date

 

6.5 When signing this contract, the applicant
is not the shareholder of guarantor or the actual controller defined in “company law”

 

Rights and obligations of facility giver

 

7.1 The facility giver has the rights to
recovery the loan principal and interest, and charge for the cost which the applicant should pay for. The facility giver has the
rights to decide to recovery the loan in advance based on the repay status of the applicant

 

7.2During the fulfilling this contract,
the facility giver only reviews for the information which the applicant provided. If there is any false, not accuracy or not completed
for these information, which lead to the facility giver can not make trustee payment on time or the applicant break the contract
,then the facility giver does not afford any result

 

7.3 If the money withdrawing account of
applicant or the customer’s account freeze or another reasons which lead the unsuccessful to the money lending, then the
facility giver does not afford any result

 

Obligation of applicant

 

8.1 The applicant should fulfill this contract
and all the ratification, report, records or registration requested by “facility use application “

8.2
The applicant should use the facility according to this contract without embezzlement and can not invest the loan into the fixed
assets , shareholding or the area , application
which the state forbids

 

8.3 If there is any engagement with the
payment method, the applicant should use the loan according to the engaged method and can not break up the whole into parts to
avoid the trustee payment of facility giver; if use the independence payment, the payment of loan amount should be up to specification

 

    	 

    	 

    

 

8.4 The applicant should fulfill its obligation
on time and on enough amount per this contract and the “facility use application “

If there is another engagement, then the
applicant can not fulfill its debt in advance without the written agreement of facility giver

 

8.5 The repay account of applicant is used
for sales income or the planned repayment. If the sales income is calculated in non-cash, the applicant should insure the money
go into the account in time after receiving the income. The applicant should provide the status of cash move in and out per the
request of facility giver

 

8.6
The applicant should afford all the cost under this contract and the “facility use application “, including but not
limited to notarial fee, appraisal cost, registered
fee and so on.

 

If the loan cost which the applicant should
afford, then the applicant should pay enough amount per the request rate and time of facility giver. When it is the loan payment,
the repay account is the another bank of strange land, then the payment should process by the payment system of the People's Bank

 

8.7 The applicant should follow the business
system and operation tradition of the facility giver, including but not limited to cooperate with the facility giver for the management
of the loan and the supervision for the applicant’s operation status. The applicant should provide the finance form, loan
usage record and information for affiliated party or the affiliated trade per the request of facility giver and also needs to insure
all the documents, data, and information should be trueness, completed and accurate.

 

8.8 If there is any one matter for the
applicant , the applicant should notice the facility giver in written in 30 days advance and also should repay all the principal
and interest of debt under this contract or provide the repay method agreed by the facility giver and can not take the action before
the guarantee

(1)
Sale, dotation, rent, transfer, mortgage or the other method to process
the whole or the part of assets

(2)
If there may be any great change for the management system or property right organization, including but not limited to contract
,rent, joint-operation, corporate
system change, the joint stock cooperative system changes, merger,
joint venture, schism,
stock right transfer, reduction
of capital and so on 

(3) The investments abroad exceed RMB 2
billion or the debt financing exceed RMB 2 billion

 

8.9 If there is any one matter for the
applicant, the applicant should notice the facility giver in written within 7 days from the date of happening

(1)
The applicant or the affiliated party revises bylaws, change the company name, legal
representative, address, contract and the operation area, or makes the decision for finance or personnel

 

    	 

    	 

    

 

(2) The applicant, its affiliated party
or the guarantor plans to voluntary bankruptcy or maybe has be bankruptcy

(3) The applicant or its affiliated party
get involved in lawsuit, arbitration, administrative measure or the soundness status of main assets/guaranty has or may affection
or the value has or may decreased

(4) The applicant or its affiliated provides
the guarantee for the third party who led to the great negative
influence for the capacity of fulfilling this contract or its
finance status

(5) The applicant or its affiliated signed
the contract which will has the great negative influence
for its operation and finance status

(6) If there is any production
halts, close down, dissolution, or business license is revoked
of the applicant, its affiliated or the guarantor

(7)If the legal
representative, director or the mainly management of the applicant,
it’s affiliated or the mainly investor disappear or involved in the illegal trade

(8) If there is any great difficult of
operation, financial conditions deteriorate or the other affairs which has the negative
effects for the normal operation, finance condition or the repay
ability of applicant or its affiliated

(9) If there is any related transaction
and the transaction amount arrives or exceeds the 10% of the latest audited net
asset

(10) Before repay all the debt under this
contract, the applicant becomes or may become the shareholder or the actual controller of the guarantor

(11) If the applicant or its affiliated
has the liability accident or is exposure by the media due to
it breaks the law, provision, national policy
or the industrial standard

(12) If there is any change for control
or under control relation of applicant and its affiliated

(13) If there are any other material adverse
events which will have effect on the repay ability of the applicant and it’s affiliated

 

8.10 If there is any disadvantageous changes
to the facility giver’s rights for the guarantee, the applicant should provide the another guarantee on time per the request
of the facility giver

 

The
“changes” mentioned here including but not limited to : guarantor’s
merger, schism, production
halts, stoppage, disbandment,
revocation, bankruptcy;
there is great changes for the operation or the finance condition of the guarantor; the guarantor is involved in lawsuit,
arbitration or the mainly assets have the property preservation or the other
enforcement measures; the guaranty is not in sound condition; the value of guaranty decrease or may decrease; the guaranty is taken
by property preservation or the other enforcement measures; the guarantor or its legal representative or the main management is
involved in any illegal activity; If the guarantor is person, the guarantor disappearance, dead; The guarantor breaks the terms
under this contract ; the guarantee contract lose its effect or is dissolved; there is some disputes of guarantor and the applicant;
the guarantor wants to terminate contract or the other affairs may affect the safety of rights of facility giver

 

    	 

    	 

    

 

Miscellanea

 

The applicant undertakes that 1) he will
inform the facility giver in time if he got the information of the guaranty will be removed. 2) If it use property swap to compensate
the removal of guaranty, then the applicant should repay all the debt ahead of time or reset the mortgage. Before settle all the
registration of the new mortgage, the applicant should provide the other guaranty which approved by the facility giver.

 

The payment under this contract should
according to the “facility use application” signed by the facility giver

 

When
the applicant applies for the bank acceptance, it should pay the risk exposure management fee besides the acceptance commission.
Among which, if the time of bank acceptance is within 3 months , then the risk exposure management fee is charged of 0.02% of risk
exposure amount /month; If the time of bank acceptance is longer than 3 months , then the risk exposure management fee is charged
of 0.02% of risk exposure amount /month. The applicant should pay out all management fees at once according to the facility giver’s
notification. “risk exposure amount “ means the balance of facility and cash guarantee, the cash guarantee including
cash deposit, deposit, national debt, bank acceptance, bank
debenture and other amount of guarantee which accepted by Bank of Communications

 

Acceleration of maturity

10.1 If any one of below issues constitute
the “acceleration of maturity” mentioned in this contract

(1) The applicant’s statement and
guarantee of this contract or any “facility use application” is false

(2) The applicant breaks this contract
or any “facility use application”

(3) If any affairs mentioned in No.8.9
term, the facility giver thinks it will affect the safety of its rights

(4)The facility giver thinks the applicant
should repay all the debt in advance based on the capital returning status

(5) The promise which the facility giver
provided may get out of line due to the changes of supervision

(6) When the applicant fulfill the contract
which signed with facility giver, the applicant has the default or the debt may or has been announced acceleration of maturity

 

10.2 If any one of”acceleration of
maturity issues”, the facility giver has the rights to take one, several or the whole measure

(1) Turn down, stop or cancel the facility
under this contract

 

    	 

    	 

    

 

(2) Announce the part or the whole debts
of this contract become due in advance and ask the applicant repay all the principle and interest at once. If it related to bank
acceptance, letter of facility, backward letter, the applicant should supplementary the cash deposit till the amount arrive the
total amount of all the facilities.

(3)Stop the payment for the loan which
the applicant has applied but not use

(4) Ask the applicant to discuss the”
give and pay “condition within the limited time

(5) Ask the applicant change the payment
method per the request of facility giver

 

Breach of contract

11.1 If the applicant can not repay the
enough principal or interest, for these unpaid, the facility giver will charge for the default interest and compound interest since
unfulfilled date to clear off date. If the applicant does not use the loan according to the “facility use application”,
then the facility giver can charge for the default interest and compound interest based on the embezzlement amount and the actual
days

 

If the debt currency is RMB, the default
interest of overdue and embezzlement should float upward 50% and 100% compared with the record in the “facility use application”

 

The fulfill expiration date can be any
date as following: Payment Date, expiration date, interest payment date

 

11.2 If the applicant breaks the contract
,it should afford all the cost which the facility giver achieve its facility or rights, such as collection fee, legal fare, Charge
for announcement, lawyer fee, travelling coast and other fee

 

11.3
If there is any behavior, such as escape supervision, default principle
and interest and so on, the facility giver has the rights to report to related units concerned and has the public notice

 

Deduct engagement

 

12.1
The applicant authorizes the facility giver can deduct the debt principle, interest, default interest, compound
interest from the any account opened in bank of communication for repaying

12.2 After deduct, the facility giver should
notice the applicant the account ,contract number ,the bank voucher number, deduct amount ,the left debt .

12.3
If the deduct amount can not repay enough debt, then it should cancel out for the overdue cost. If the overdue days of principle
and interest is less than 90 days, the balance will be used in due interest, default
interest and compound interest and then cancel out for the principle; if overdue for more than 90 days, the balance will be used
in due principle and then cancel out for the due interest, default
interest and compound interest

 

    	 

    	 

    

 

If the debt is bank acceptance, letter
of facility or backward letter, the deduct amount can not repay all be debt, then should first use for cancel out the unpaid fee.
The balance first use for cancel out the overdue principle and then use for the overdue interest

 

Information disclosure and secure

 

14.1 The facility giver is responsible
for the secure of trade secret and other confidential data of applicant, except following:

(1) Which is applicable for the laws and
regulations or listing regulations.

(2) Which is request by the judicial department
or the government

(3) Disclose to the professional consultant
of facility giver

(4) The applicant agrees or authorizes
the facility giver to disclose

 

14.2 The applicant agrees the bank of communication
can use or disclose the information and data of applicant in following condition, including but not limited to the basis information,
facility trade information and other related information. And the applicant is willing to undertake all the results

(1) For the following purpose to disclose
and use the information to outsourcing institution, the third party supplier, or the other institution or person which the facility
giver thinks it is necessary to disclose ,including but not limited to the other branch of bank of communication, or the subsidiary
company owned by bank of communication A : related to facility business ,such as popularization the bank facility business, collection
the debt of applicant, transfer debt and so on B The facility giver provides or may provide the new product or service to applicant
C for the purpose of better maintain and management the customer relationship

(2) Provide the information and data to
China facility reference center or the other facility reference institution which is approved by the people's Bank of China

(3)
Use for the purpose of business operation, management, statistics,
analysis or use on the confidentiality based with the third party

 

Solution to disputes

This contract is applicable for the law
of People's Republic of China. All the disputes raised from this contract should bring a lawsuit against to the local court of
facility giver. During the disputes, each party should continue to fulfill its obligation under this contract

 

Other terms

 

16.1 The applicant agrees the facility
giver inquire and record the facility information of applicant due to the facility application

 

16.2
The facility giver will not undertake the responsibility but will inform the applicant in time if there is any failed facility
due to the force majeure, network fault, and system fault

 

    	 

    	 

    

 

16.3 The “facility use application”
signed by both parties and the other documents confirmed by both parties constitute the complete and indivisibility party of this
contract. If the “facility use application” has disagreement with this contract, then should according to the “facility
use application”; If there is any un-mention matter , the should according to this contract

 

16.4 The meaning of affiliated party, affiliated
party trading, the mainly investor in this contract is the same as the meaning of “No.36 accounting postulates—disclose
of affiliated party” which issued by Ministry of Finance

 

16.5 This contract will take effect after
the signing and sealing of the legal representative of each party

 

16.6 This contract is in 6 duplicate, each
party and the guarantor ( if any) hold one

The applicant has read above terms and
the facility giver has made the necessary explanation to the applicant. The applicant has no objection to all the contents

 

The applicant (Seal):CER Energy Recovery
(Shanghai) Co.,Ltd

 

Legal representative: Wu Qinghuan

 

Date :2012.1.30

 

The facility giver(Seal) : Bank of communication
, Shanghai Branch

 

Head: Lv Benxian

 

Date: 2012.1.30Contract No.:_ ZJXD-JK20120060____________

 

 

Loan Contract

 

 

Borrower: CER Energy Recovery (Shanghai)
Co., Ltd.

 

Lender: Shanghai Pudong Zhanjiang Micro-credit
Co., Ltd.

 

    	 

    	 

    

 

Dear client,

 

Thanks for your supports to Shanghai Pudong
Zhanjiang Micro-credit Co., Ltd.(“Our Company”), please take note of the following items:

 

1. Please pay attention to the due date
of principal and interest and ensure timely payment made according to the contract. Should your company / you breach the contract,
our Company has the right to claim the loan due immediately. You company has to repay the principal and interest under the contract
and assume the liability for breach of contract.

 

2. Please pay special attention to the
clauses marked by “▲▲”. These clauses are the important clauses related
to your rights and obligations. Please make sure your company / you carefully read and fully understand all contractual terms
and have no objection.

 

3. If your company/ you breach the contract,
your company’s / your default record will be provided to relevant government departments, including the People's Bank of
China, association of small loan companies, relevant industry associations, financial institutions. Your company’s / your
breach may adversely affect your company’s / your future applications for bank loans and government subsidies and may also
adversely affect the personal credit of the related responsible person.

 

4. Please cooperate with our check after
the loan drawdown. The check includes the usage of the fund and your company’s operational condition. Please provide us with
the related material truthfully.

 

5. The reminders that our Company currently
makes, such as the repayment reminders, online reminders, are the free value-added services our Company provides to our clients,
which do not constitute an obligation to our Company.

 

We inform you all the above. Thank you
for your company’s / your cooperation and support. Wish a pleasant cooperation with your company / you.

 

Shanghai Pudong Zhanjiang Micro-credit
Co., Ltd.

 

    	 

    	 

    

 

Please read this Contract carefully
and pay special attention to the terms marked by “▲▲”. If you have any objection, please ask the Lender
to make timely correspondent explaination. 

 

Borrower: CER Energy Recovery
(Shanghai) Co., Ltd. 

 

Legal Representative: _Qinhuan Wu________________

 

Address: Building#26, No. 1388 Zhangdong
Road, Zhangjiang Hi-tech Park, Shanghai , China________________

 

Post Code: 201203_________________________

 

Business License no.: 310115400249903

 

Contact Person: ____Simon Dong_____________________

 

Telephone:13801969233______________

 

Lender:
Shanghai Pudong Zhanjiang Micro-credit Co., Ltd.______________ 

 

Person in Charge: __Xianpei Lin_______________

 

Address: Building#4, No. 439 Chunxiao
Road, Shanghai,China________________

 

Post Code: ___201203______________________

Telephone: ___021-58959900_________Fax:___021-58959900______________

 

The Borrower thinks the Lender has the
right to engage in lending transaction and apply for a loan to the Lender. Upon equal negotiations and mutual agreement, the Lender
and the Borrower enter into this Contract in relation to the provision of relevant loan by the Lender to the Borrower.

 

Article
1            Major terms and security of Loan

 

		1.1	The currency and amount of the loan
                                                           hereunder shall be __RMB 10,000,000_________________________

 

		1.2	The term of the loan hereunder shall
                                                           be _six months______________ commencing from _Feb 27, 2012______________
                                                           to _Feb 20, 2013_____________ (the actual drawdown date shall
                                                           be the corresponding date as stated on the debt certificate. The debt
                                                           certificate shall constitute integral part of this Contract and have
                                                           equal legal effect as this Contract).

 

		1.3	The loan hereunder shall be used for the working capital purposes. The Lender may supervise the
use of the proceeds of the loan.

 

		1.4	Performance bond: None.

 

		1.5	The Borrower must secure the performance of this Contract in accordance with the requirements of
the Lender. The security of this contract can be one or more among the guarantee, mortgage, pledge or other way of security.

 

		1.6	The detailed information about the security is described under the security clauses of this Contract.
The agreements includes but not limits to the followings:

 

    	 

    	 

    

 

		·	If there is any default in repayment,
the Borrower agrees to further secure the loan by a mortgage of its new office building in Zhangjiang, Shanghai . Address of
the building is Building#26, No. 1388 Zhangdong Road, Zhangjiang Hi-tech Park, Shanghai , China 

 

		·	The guarantor, Mr. Qinghuan Wu,
provides the Lender unconditional and irrevocable guarantee letter. The guarantor assumes joint liability under the guarantee letter.

 

		·	The loan is secured by a pledge of
the accounts receivables owned by the Borrower.

 

		1.7	The Borrower hereby acknowledges that the Lender has the right to freely choose its way to exercise
any or part of the creditor’s rights under this Contract. The borrower agrees to give up defense towards the Lender’s
choice.

 

Article
2             Interest rate and interest calculation

 

		2.1	Interest rate under this Contract is RMB Fixed interest rate.

 

The rate is
at _12___% per annum, which shall remain unchanged within the term of this Contract.

 

		2.2	The daily interest rate shall be applicable monthly interest rate/30. The monthly interest rate
shall be applicable annual interest rate/12. One month shall be 30 days.

 

		2.3	Calculation of interest

 

		2.3.1.	Normal interest=applicable interest rate*drawdown amount*occupation days. Occupation days shall
be counted from the actual drawdown date to the due date.

 

		2.3.2.	Borrower shall pay penalty for the overdue amount. Penalty is calculated by the overdue amount
and the overdue period. Should the Borrower fail to repay the principal and interest under the Contract on time, the Lender is
entitled to claim penalty interest at a rate that four times the current interest rate. Penalty=(overdue principal or overdue interest)*(4*daily
interest)*overdue days. The daily interest is the contractual daily interest agreed in this Contract.

 

		2.3.3.	The penalty is settled at both principal repayment date and interest settlement date. If the Borrower
repays part of the overdue amount, the repayment first goes to the penalty, then the normal overdue principal and interest. The
loan with early maturity has priority in settlement.

 

		2.3.4.	Should the Borrower misappropriate the fund in violation of the purpose of the loan; the Lender
is entitled to claim penalty interest at a rate that four times the current interest rate from the misappropriation date.

 

		2.4	The loan interest hereunder shall be settled every _____month__________ (month/quarter/half year).
If interest is settled on a monthly basis, the settlement date shall be 20th day of each month.

 

The first interest period shall
commence from the actual drawdown date to the first interest settlement date; the last interest period shall commence from the
day immediately following the end of the preceding interest period to the day that is one day before the final repayment date;
and each of the other interest period shall commence from the day immediately following the end of the preceding interest period
to the next interest settlement date.

 

    	 

    	 

    

 

Interest payment date is the
first bank business day immediately after interest settlement date. In case of legal holidays, the payment date extends to the
first bank business day immediately after the legal holidays.

 

Upon maturity of the loan, all
outstanding interest shall be paid together with the principal.

 

Article
3             Drawdown and repayment 

 

		3.1	The loan hereunder shall be drawdown in lump.

 

The Borrower
shall make the drawdown within 2 months after the Contract is signed and all the related procedures are completed or within the
period that agreed by the Lender, or the Lender has the right to refuse the drawdown.

 

		3.2	▲▲The Lender has no obligation to advance any loan to the Borrower until all following
conditions have been satisfied.

 

		3.2.1.	Total drawdown amount does not exceed the amount agreed in Article 1.1.

 

		3.2.2.	The drawdown application date and actual drawdown date are made by the Borrower within the borrowing
term.

 

		3.2.3.	The Borrower has provided related government approval, registration (if necessary) and any other
procedure required by the Lender. All the above have taken effect and are continuously effective.

 

		3.2.4.	The guaranty contract (if any) under this Contract have taken effect and is continuously effective;
If the guaranty contract is a mortgage contract or pledge contract, the correspondent mortgage or pledge has been secured.

 

		3.2.5.	The Borrower operation and financial condition does not suffer any material adverse change.

 

		3.2.6.	The Borrower meets the related requirement of the Lender.

 

		3.2.7.	There is no default event occurring under this Contract.

 

		3.2.8.	If required, the Borrower shall provide the Lender with a due diligence report issued by a designated
lawyer office or accounting firm.

 

		3.3	As for the drawdown information, the documents retained, certificates and notes shall prevail.
The Lender has the right to ask the Borrower sign a debt certificate.

 

		3.4	Repayment is made by installment. The Borrower shall repay RMB 0.9 million every month since April
2012.

 

When the loan is repaid by installment,
the Borrower shall inform the Lender of the repayment amount and date by written notice. If the Lender is not informed, the Borrower
shall bear the interest during the period.

 

		3.5	▲▲If the Borrower applies for prepayment of all or part of the loan, it shall submit
a written application to the Lender for its approval 3 bank business days prior to such prepayment, and pay to the Lender relevant
compensation as agreed hereunder. If the Borrower prepays the Lender within 30 day (including 30 days) from the actual drawdown
date, the Borrower shall pay interest of 30 days and the processing fee according to the interest rate agreed in Article 2.1. If
the Borrower prepays the Lender after 30 day from the actual drawdown date, the Borrower shall pay interest according to the actual
borrowing period.

 

    	 

    	 

    

 

		3.6	The Lender will provide the funds to the Borrower through promissory note, credit voucher, online
banks or others. If fund is provided in the manner of promissory note, the Lender shall starts accruing interest from the note
issuing day and the Borrower shall take the promissory note on the issuing day. If fund is provided in the manner of credit voucher
or online banks, the Lender shall start accruing interest from the day that the fund is successfully transferred to the Borrower’s
account and stop accruing interest from the day that the principal is fully repaid. If the opening bank of the Lender and Borrower
are different, the Borrower may not receive the funds on the day that the Lender transfers it. Hence the Borrower shall try to
provide the bank account with the same opening bank as the Lender’s so as to receive the funds as soon as possible. If the
Borrower affords the false bank account to the Lender which leads to unsuccessful transfer of funds, the Borrower shall assume
the interest loss arousing from its mistake. The interest loss shall be calculated at a rate agreed in this Contract. If the unsuccessful
transfer of funds is caused by the Lender, the interest loss shall be assumed by Lender.

 

Article 4            ▲▲Representations
and warranties 

 

		4.1	The Borrower is an independent legal entity, which has all the necessary rights and can take the
responsibility under this Contract and bear civil liability.

 

		4.2	It has obtained all necessary authorizations or approvals to enter into this Contract. Its execution
and performance of this Contract does not violate any applicable laws or regulations.

 

		4.3	All documents and information provided by the Borrower to the Lender are true, accurate, complete
and effective and do not contain any false record, gross omission or misleading statement.

 

Article 5            Rights
and responsibilities of the Lender

 

		5.1	The Lender has the right to receive the principal and interests (including the overdue and misappropriation
penalty interest) and exercise other rights regulated by law or agreed in this Contract. If the Borrower is in default, the Lender
has the right to declare accelerated maturity of the loan or withdraw part of the loan, or/and forfeit the performance bond.

 

		5.2	The Lender may transfer all or part of its rights hereunder to a third party by notifying the Borrower,
without consent of the Borrower.

 

Once the Lender sends written
notice to the Borrower, the both Parties of this Contract automatically adjust to be the creditor assignee and the Borrower. Both
Parties shall continue to implement this Contract. There is no need to renew the Contract unless the Borrower present written objection
within three bank business days from the notification is received.

 

		5.3	The Lender may transfer its right to loan proceeds hereunder to a third party without sending notice
to the Borrower. The Borrower shall continue to undertake its obligation under this Contract.

 

		5.4	The Lender shall deduct the repayment in a sequence of expense, penalty, interest and principal.

 

    	 

    	 

    

 

		5.5	The Lender undertakes to keep non-public materials and information provided by the Borrower confidential,
unless otherwise required by applicable laws and regulations or agreed hereunder.

 

		5.6	The Borrower agrees that the Lender has the right to engage the details of its implementation of
this Contract into the credit system.

 

Article 6            Rights
and responsibilities of the Borrower

 

		6.1	The Borrower undertakes to settle principal, interest and any other amount payable in relation
to the loan hereunder in accordance with the debt certificate and this Contract.

 

		6.2	The Borrower undertakes to draw down and use the loan in accordance with the schedule and purpose
as agreed hereunder. The Borrower shall not use the proceeds of the loan hereunder for any other purpose that is not agreed in
this Contract.

 

		6.3	▲▲The Borrower undertakes to bear expenses for entering into and performing this Contract,
and expenses paid and payable by the Lender for realization of its claim hereunder, including without limitation litigation or
arbitration fee, attachment fee, attorney's fee, enforcement fee, appraisal fee, auction fee and announcement fee.

 

		6.4	▲▲The Borrower undertakes to accept and actively cooperate with the Lender's check
and supervision on use of the proceeds of the loan (including purpose of the loan) and the Lender’s operation condition.
The Borrow shall provide the Lender with the financial documents and other information, and ensure all these materials are true,
complete and accurate.

 

		6.5	▲▲The Borrower undertakes to promptly notify the Lender upon occurrence of any of the
following events. A written application shall be submitted to the Lender for its notification 30 bank business days prior to such
prepayment. The Borrower commits that the following actions shall not be taken without the written approval of Party B.

 

		6.5.1.	Selling, offering, renting, lending, transferring, mortgaging, pledging or disposing most or all
of its significant assets in other ways.

 

		6.5.2.	Significant change in the operation structure or the form of ownership, including but not limit
to contracting, rent, jointly operation, stock restructuring, company selling, merger, division, transfer of stock, , setup of
subsidiary, decrease of registered capital and other action that may cause an adverse impact on the Lender's rights and interests.

 

		6.6	▲▲The Borrower undertakes to promptly notify the Lender upon occurrence of any of the
following events. A written application shall be submitted to the Lender for its notification7 bank business days prior to such
prepayment.

 

		6.6.1	Any change to its articles of association, company name, legal representative, address, correspondence,
business scope, or other significant decision related to fiancé or personnel;

 

		6.6.2	The Borrower or the guarantor has applied or been applied, or may apply or be applied, for bankruptcy.

 

		6.6.3	The Borrower is or may be involved in any material economic dispute, litigation or arbitration,
or its property is subject to seizure, attachment or supervision in accordance with applicable laws.

 

    	 

    	 

    

 

		6.6.4	Provision of guaranty to third party that may cause an adverse impact on Party A’s financial
condition or ability to repay debt under the Contract.

 

		6.6.5	Signing Contract or agreement that may cause an adverse impact on Party A’s ability to repay
debt under the Contract.

 

		6.6.6	The Borrower’s winding-up, dissolution, liquidation, suspension of business, revocation or
cancellation of its business license.

 

		6.6.7	The Borrower, its legal representative or its major management personnel is suspected of major
crime or involved in any material dispute.

 

		6.6.8	The Borrower’s financial condition suffers deterioration, which has affected or may affect
performance of its obligations hereunder; or there occurs the events which put negative effects on the financial condition or ability
of repayment of the Borrower.

 

		6.6.9	The amount of the related-party transaction exceeds 10% of the net assets (which is currently audited).

 

		6.6.10	The Borrower and the guarantor change or add operational address.

 

		6.7	▲▲If there occur the events which will put negative effects on the guaranty under this
Contract; the Borrower shall provide the Lender with other guaranty that is acknowledged by the Lender. The events includes but
not limits to:

 

		6.7.1	The guarantor is under merge, division, winding-up, dissolution, liquidation, suspension of business,
or its business license has been or it has applied or been applied, or may apply or be applied, for bankruptcy.

 

		6.7.2	There occur the events which put negative effects on the operation and financial condition of the
guarantor.

 

		6.7.3	The guarantor is or may be involved in any material economic dispute, litigation or arbitration,
or its major property is subject to supervision in accordance with applicable laws.

 

		6.7.4	The value of the guaranty decreases or may decrease or is subject to seizure, attachment or supervision
in accordance with applicable laws.

 

		6.7.5	The guarantor, its legal representative or its major management personnel is suspected of major
crime or involved in any material dispute.

 

		6.7.6	If the guarantor is a natural person, in this circumstance, the guarantor is missing, dead or claimed
dead.

 

		6.7.7	The guarantor default under this Contract.

 

		6.7.8	There arises dispute between the Borrower and the guarantor.

 

		6.7.9	The guarantor asks for ending the guaranty agreement.

 

		6.7.10	The guaranty agreement does not take effect, is ineffective or canceled

 

		6.7.11	The guaranty is not set up or invalidly set up.

 

		6.7.12	Other event that will affect the safety of the debt obligation of the Lender.

 

    	 

    	 

    

 

Article 7            Special
clause

 

The Borrower agrees to undertake all the
default responsibilities, including repaying the principal and interest, forfeiting the performance bond, paying the penalty and
any other cost. i.e. the lawyer fee, litigation fee, preservation fee.

 

Article
8            ▲▲Adjustment
of principal amount and claim of the accelerated maturity of the loan

 

The Lender may reduce, suspend or cancel
the credit amount under this Contract, declare accelerated maturity of all or part of the loan, require the Borrower to immediately
repay all or part of the principal and pay the interest of the loan and ask for compensation according to the default clauses agreed
in this Contract if not repaid on time, if any of the following events occurs within the term of this Contract:

 

		8.1	The Borrower fails to repay the principal or interests according to this contract or any of the
debt certificates.

 

		8.2	The representation and guaranty made by the Borrower under Article 4 is not true.

 

		8.3	The Borrower or the guarantor collateralizes the guaranty again without the consensus of the Lender.

 

		8.4	There occurs one of the events listed in Article 6.6 and 6.7.

 

		8.5	The Borrower defaults in other contracts with the Lender and does not correct its behavior after
notifying by the Lender.

 

		8.6	The borrower breaches other terms of this Contract.

 

The accelerated maturity of all or part
of the loan takes effect since the Lender makes the declaration. Written notice will be sent to the Borrower after the declaration.

 

Article
9            ▲▲Default

 

		9.1	Since this Contract takes effect, the Lender has the right to forfeit all the performance bond,
declare accelerated maturity of the loan, require the Borrower to immediately repay all or part of the principal and pay the interest
of the loan and ask for compensation according to the default clauses agreed in this Contract if not repaid on time, if the Borrower
is in default upon occurrence of any default events motioned in this Contract.

 

		9.2	If the Borrower fails to repay any principal, interest or use the funds according to the agreed
purpose, the Lender has the right to settle penalty based on the overdue penalty interest or misappropriation penalty interest.

 

		9.3	If the Borrower fails to repay any principal and interest, it undertakes to reimburse the Lender
such expenses in relation to realize the debt obligation. i.e. Reminder fees, legal fees (or arbitration fees ) , security fees
, advertising fees, collateral and disposal fees , transfer fees , execution fees, lawyer fees, travelling fees and other fees.

 

		9.4	The Lender may make a public announcement in media to demand repayment if the Borrower deliberately
avoids supervision of the Lender, fails to repay any principal, interest. The Lender may report the crime of fraud in loan if the
material provided by the Borrower is not true.

 

    	 

    	 

    

 

Article
10            ▲▲Deduction

 

		10.1	The Borrower undertakes to transfer the payable interest, principal and other expenses to the designated
account on every repayment date and settlement date. Funds transferring into the bank account of the Lender listed below are deemed
to be repayment.

 

 Account Name: Shanghai
Pudong Zhanjiang Micro-credit Co., Ltd.

 Opening bank: Shanghai
Pudong Development Bank, Zhangjiang Branch

 Account No.: 97160158000000409

 

		10.2	If the amount deducted by the Lender is insufficient to repay all debts owed by the Borrower, the
Borrower agrees to deduct in a sequence of expense, penalty, interest and principal.

 

Article 11            Covenant

 

		11.1	When both Parties agree the credit has been granted to the Borrower, the Lender has the right to
receive a processing fee of RMB 0.2 million in lump from the Borrower before the first drawdown.

 

		11.2	Both Parties agree that the Borrower shall repay the loan of RMB 5 million (Contract No. ZJXD-JK2011300)
to the Lender within 3 bank business days after it obtains the loan from the Bank of Communication, or the Lender has the right
to declare accelerated maturity of the loan under this Contract.

 

The Borrower shall repay the
loan to the Lender immediately after it receives the accounts receivable from Zhenjiang Kailin, or the Lender has the right to
declare accelerated maturity of the loan under this Contract.

 

Article 12            Dispute
Resolution

 

Either Party may submit the dispute to
a court in the place where the Lender is located to start litigation. During the proceedings, both Parties shall continue to perform
their respective duties, responsibilities and obligations hereunder in a faithful, diligent and responsible manner.

 

Article 13            Miscellaneous

 

The debt certificate shall constitute integral
part of this Contract and have equal legal effect as this Contract

 

This Contract takes effect after signing
by both Parties.

 

The Contract is made in three duplicates
with the equal legal effect.

 

The Borrower has read the terms above
and the Lender has made correspondent explanations as required by the Borrower. The Borrower has no objection over all the terms
of this Contract.

 

    	 

    	 

    

 

Signature Page

 

Borrower (seal):_ 

 

CER Energy Recovery (Shanghai) Co.,
Ltd.___________________________

 

Legal representative/authorized representative:

 

Qinghuan Wu________________________________

 

Date: _ ____________________

 

Lender (seal):__ 

 

Shanghai Pudong Zhangjiang Micro-credit
Co., Ltd._____________________________

 

Person-in-charge/authorized representative:

 

Xianpei Lin ________________________________

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