Document:

Exhibit 10.1

 

Dated the 27th day of October
2017

 

 

 

TAM LOK MAN

(as Vendor)

 

 

 

 

and

 

 

 

 

DOUBLE AFFIRM LIMITED

(as Purchaser)

 

 

 

 

 

	
         

        SALE AND PURCHASE AGREEMENT

        in respect of 51% of the issued share capital
        of

        INSPIRIT STUDIO LIMITED

         

 

 

     

     

    

 

TABLE OF CONTENTS 

 

	Clause	 	Headings	 	Page
	 	 	 	 	 
	1.	 	DEFINITIONS
    AND INTERPRETATION	 	2
	2.	 	SALE
    AND PURCHASE OF SALE SHARES	 	5
	3.	 	CONSIDERATION	 	5 
	4.	 	CONDITIONS
    PRECEDENT	 	6 
	5.	 	COMPLETION	 	7
	6.	 	REPRESENTATIONS
    AND WARRANTIES	 	9
	7.	 	FURTHER
    ASSURANCE	 	10 
	8.	 	RESTRICTIONS
    ON COMMUNICATION AND ANNOUNCEMENTS	 	 10
	9.	 	PARTIAL
    INVALIDITY	 	10 
	10.	 	COSTS
    AND EXPENSES	 	 10
	11.	 	ASSIGNMENT	 	10 
	12.	 	CONTINUING
    EFFECT OF AGREEMENT	 	 11
	13.	 	GENERAL	 	 11
	14.	 	NOTICES	 	 11
	15.	 	COUNTERPARTS	 	12 
	16.	 	GOVERNING
    LAW	 	 12
	 	 	 	 	 
	SCHEDULE
    1 PARTICULARS OF THE COMPANY	 	14 
	SCHEDULE
    2 VENDOR WARRANTIES	 	 15
	SCHEDULE
    3 PURCHASER WARRANTIES	 	 26

 

     

     

    

 

THIS AGREEMENT
is made on the 27th day of October 2017

 

BETWEEN

 

		(1)	TAM LOK MAN, with Hong Kong identity card number Z234498(0) whose residential address is
situated at Room 705, 7/F., China Insurance Group Building, No.141 Des Voeux Road Central, Central, Hong Kong ( the “Vendor”);

 

		AND	

 

		(2)	DOUBLE AFFIRM LIMITED, to be renamed as EC TECHNOLOGY & INNOVATIONS LIMITED, a
company incorporated with limited liability in the BVI whose registered office is situated at Corporate Registrations Limited of
Sea Meadow House, Blackburne Highway (P.O. Box 116), Road Town, Tortola, British Virgin Islands (the “Purchaser”).

 

WHEREAS:

 

		(A)	As at the date of this Agreement, the Company (particulars of which are set out in Schedule 1)
has an issued share capital of HK$200 divided into 200 issued and fully paid shares. The Company is owned as to 73% by the Vendor,
19% by Mr. Tam Lok Hang, 4% by Mr. Colman Ng and 4% by Mr. Mak Chun Kit.

 

		(B)	As at the date of this Agreement, the Purchaser is a wholly owned subsidiary of CLNT.

 

		(C)	The Vendor have agreed to sell, and the Purchaser has agreed to purchase, the Sale Shares upon
the terms and conditions set out in this Agreement.

 

		(D)	Upon Completion, the Company will be owned as to 51% by the Purchaser, 22% by the Vendor, 19% by
Tam Lok Hang, 4% by Mr. Colman Ng and 4% by Mr. Mak Chun Kit.

 

NOW IT IS HEREBY AGREED as follows:

 

		1.	DEFINITIONS AND INTERPRETATION

 

		1.1	In this Agreement (including the Recitals and the Schedules), the following expressions shall,
unless the context otherwise requires, have the following meanings:

 

	 	
        “Accounts”

         
	
        the audited financial statements of the
        Company comprising the income statement for the financial year ended the Accounts Date and the balance sheet as at the Accounts
        Date;

         

	 	
        “Accounts Date”

         
	
        31 March 2017;

         

	 	
        “Agreement”

         
	
        this sale and purchase agreement (including
        its Recitals and Schedules), as may be amended or supplemented from time to time;

         

 

    2

     

    

 

	 	
        “business day”

         
	
        a day (other than Saturday) on which banks
        are open in Hong Kong for general banking business;

         

	 	
        “BVI”

         
	
        the British Virgin Islands;

         

	 	
        “CLNT”

         
	
        Cleantech Solutions International, Inc.,
        a company incorporated in Nevada whose shares are listed and traded on NASDAQ;

         

	 	
        “CLNT Shares”

         
	
        shares of common stock of CLNT, par value
        $0.001 per share (or of such other securities as shall result from a subdivision, consolidation, re-classification or re-construction
        of such shares from time to time);

         

	 	
        “Closing Price”

         
	
        the final price at which a security is
        traded on a day on NASDAQ provided that if such day is not a trading day, the immediate preceding trading day shall be substituted
        therefor;

         

	 	
        “Company”

         

         
	
        Inspirit Studio Limited, a company incorporated
        in Hong Kong with limited liability, particulars of which are set out in Schedule 1;

         

	 	
        “Completion”

         
	
        completion of the sale and purchase of
        the Sale Shares pursuant to Clause 5;

         

	 	
        “Completion Date”

         
	
        three (3) business days following the date
        on which all the Conditions Precedent are fulfilled or waived (as the case may be);

         

	 	
        “Conditions Precedent”

         
	
        the conditions precedent set out in Clause
        4;

         

	 	
        “Consideration”

         
	
        has the meaning ascribed to it in Clause
        3.1;

         

	 	
        “Consideration Shares”

         
	
        has the meaning ascribed to it in Clause
        3.2;

         

	 	
        “Encumbrance”

         
	
        any option, right to acquire, right of
        pre-emption, mortgage, charge, pledge, lien, hypothecation, title retention, right of set off, counterclaim, trust arrangement
        or other security or any equity or restriction;

         

	 	
        “HK$”

         
	Hong Kong dollars, the lawful currency of Hong Kong;
	 	
        “Hong Kong”

         
	
        the Hong Kong Special Administrative Region
        of the PRC;

         

	 	“Individual Guarantee”	
        the individual guarantee, in the
form and substances reasonably satisfied by the Purchaser, to be executed by Mr. Tam Lok Hang as the guarantor in favour of the
Purchaser or its nominee on the date of the Loan Agreement to guarantee the punctual performance by the Company of its obligations
under the Loan Agreement;

 

    3

     

    

 

	 	“Inland Revenue Ordinance”	
        Inland Revenue Ordinance (Chapter 112 of
        the Laws of Hong Kong);

         

	 	“Loan Agreement”	
        the loan agreement to be entered into between
        the Purchaser and the Company before Completion in respect of the non-interest bearing loan facility in the aggregate principal
        amount of HK$2,000,000 to be issued by the Purchaser to the Company;

         

	 	
        “Long Stop Date”

         
	
        30 November 2017 or such later date as
        may be agreed between the Vendor and the Purchaser;

         

	 	
        “Management Accounts”

         
	
        the unaudited management accounts of the
        Company comprising the income statement for such period after the Accounts Date and up to the Management Accounts Date and the
        balance sheet as at the Management Accounts Date;

         

	 	
        “Management Accounts Date”

         
	
        31 October 2017;

         

	 	
        “NASDAQ”

         
	
        National Association of Securities Dealers
        Automated Quotations, the stock market in the USA;

         

	 	
        “Parties”

         
	
        parties to this Agreement and a “Party”
        means any one of them;

         

	 	
        “Purchaser Warranties”

         
	
        the representations, warranties and undertakings
        made by the Purchaser and contained in Clause 6 and Schedule 3;

         

	 	
        “Sale Shares”

         
	
        102 shares in the share capital of the
        Company, being 51% of its entire issued share capital as at the date of this Agreement;

         

	 	
        “Stamp Duty Ordinance”

         
	
        Stamp Duty Ordinance (Chapter 117 of the
        Laws of Hong Kong);

         

	 	
        “Taxation”

         
	
        all forms of tax, rate, levy, duty, charge,
        impost, fee, deduction or withholding of any nature now or hereafter imposed, levied, collected, withheld or assessed by any taxing
        or other authority in any part of the world and includes any interest, additional tax, penalty or other charge payable or claimed
        in respect thereof;

         

	 	“USA”	
        the United States of America;

         

	 	
        “US$”

         
	
        United States dollars, the lawful currency
        of the USA;

         

	 	
        “Vendor Warranties”

         
	
        the representations, warranties and undertakings
        made by the Vendor and contained in Clause 6 and Schedule 2;

         

	 	
        “Warranties”

         
	
        the Vendor Warranties and the Purchaser
        Warranties; and

         

	 	“%”	per cent.

 

    4

     

    

 

		1.2	In this Agreement:

 

		(a)	references to costs, charges, remuneration or expenses shall include any value added tax, turnover
tax or similar tax charged in respect thereof;

 

		(b)	references to any action, remedy or method of judicial proceedings for the enforcement of rights
of creditors shall include, in respect of any jurisdiction other than Hong Kong, references to such action, remedy or method of
judicial proceedings for the enforcement of rights of creditors available or appropriate in such jurisdiction as shall most nearly
approximate thereto;

 

		(c)	words denoting the singular number only shall include the plural number also and vice versa;

 

		(d)	words denoting one gender only shall include the other genders and the neuter and vice versa;

 

		(e)	words denoting persons only shall include firms and corporations and vice versa;

 

		(f)	references to any provision of any statute shall be deemed also to refer to any modification or
re-enactment thereof or any instrument, order or regulation made thereunder or under such modification or re-enactment; and

 

		(g)	references to any document in the agreed form is to such document which has been initialed by the
parties for identification.

 

		1.3	Headings shall be ignored in construing this Agreement.

 

		1.4	The Recital and the Schedules are part of this Agreement and shall have effect accordingly.

 

		2.	SALE AND PURCHASE OF SALE SHARES

 

Subject to the
terms and conditions of this Agreement, the Vendor, as legal and beneficial owner, shall sell the Sale Shares to the Purchaser
and the Purchaser shall purchase the same from the Vendor free from all Encumbrances and third party rights of any kind and together
with all rights now or hereafter attaching thereto including the right to receive all dividends and distributions declared, made
or paid on or after the Completion Date.

 

		3.	CONSIDERATION

 

		3.1	The aggregate consideration (the “Consideration”) of the Sale Shares to be paid
by the Purchaser to the Vendor at Completion is HK$3,000,000, which shall be satisfied by the allotment and issue of the Consideration
Shares by CLNT.

 

		3.2	The Purchaser shall procure CLNT to allot and issue 85,473 CLNT Shares (the “Consideration
Shares”) to the Vendor (or their nominees) on the Completion Date.

 

    5

     

    

 

		4.	CONDITIONS PRECEDENT

 

		4.1	Completion shall be conditional upon the fulfillment of the following Conditions Precedent:

 

		(a)	all Vendor Warranties being true, accurate and not misleading at all material aspects at all times
between the date hereof and the Completion Date (as though they had been made on such dates by reference to the facts and circumstances
then subsisting);

 

		(b)	there having been no material adverse change, or any development likely to involve a prospective
material adverse change, in the condition (financial, operational or otherwise) or in the earnings, business affairs or business
prospects, assets or liabilities of the Company, whether or not arising in the ordinary course of business since the date of this
Agreement;

 

		(c)	the Loan Agreement and the Individual Guarantee having been duly executed;

 

		(d)	all loans or amounts due by the Company to its shareholders, directors or any other third party
creditors having been fully waived or settled, save for the liabilities incurred in the ordinary course of business after the date
of this Agreement and before Completion;

 

		(e)	the Purchaser having conducted due diligence exercise (legal and financial) on the Company and
satisfied with the results thereof;

 

		(f)	NASDAQ having granted the approval for the listing of, and the permission to deal in, the Consideration
Shares, if required under NASDAQ continued listing rules and regulations; and

 

		(g)	all necessary consents, approvals, permits and/or authorisations in respect of the transactions
contemplated under this Agreement having been obtained.

 

		4.2	All Conditions Precedent may be waived by the Parties by written consent.

 

		4.3	Each Party undertakes to the other Party to use its best endeavours to ensure that the Conditions
Precedent in Clause 4.1 are fulfilled as early as practicable and in any event not later than the Long Stop Date.

 

		4.4	Each Party undertakes to provide all reasonable assistance to the other Party to fulfill the Conditions
Precedent in Clause 4.1 in accordance with Clause 4.3.

 

		4.5	If the Conditions Precedent have not been fulfilled or waived (as the case may be) on or before
the Long Stop Date, this Agreement will lapse and become null and void and the Parties will be released from all obligations hereunder,
save for liabilities for any antecedent breaches hereof.

 

    6

     

    

 

		5.	COMPLETION

 

		5.1	Completion shall take place at Loeb & Loeb LLP, 21st Floor, CCB Tower, 3 Connaught Road Central,
Hong Kong at 11:00 am on the Completion Date (or at such other place, on such other time and/or day as the Parties may agree).

 

		5.2	At Completion, the Vendor shall:

 

		(a)	deliver or cause to be delivered to the Purchaser and/or its nominee:

 

		(i)	evidence reasonably satisfactory to the Purchaser that the Conditions Precedent in Clause 4.1 (which
are applicable to the Vendor) of this Agreement have been fulfilled;

 

		(ii)	the instrument(s) of transfer and the bought and sold notes of the Sale Shares duly executed by
the Vendor as registered holder thereof in favour of the Purchaser or its nominee together with the related share certificate(s);

 

		(iii)	draft register of members of the Company reflecting the shareholding of the Company after Completion;

 

	 	(iv)	(1)	all statutory records
and minute books (which shall be duly written up to date as at Completion) and accounting records including an original
copy of the memorandum and articles of association or other equivalent constitutional documents, certificate of incorporation
and business registration certificates, business licence, governmental approval letters and certificates (if any), common
seal, authorised chops, share certificate books and other statutory records of the Company;

 

	 	(2)	all tax returns and assessments of the Company (if applicable) (receipted where the due dates for payment fell on or before
the Completion Date);

 

	 	(3)	copies of all correspondence, if any, with its lawyers, accountants, tax or revenue departments, all other documents and
correspondence, if any, relating to the business affairs of the Company; and all title deeds, evidence of ownership and documents
relating to assets owned by the Company;

 

provided that
the above shall be deemed to have been delivered if they are located at the registered office or principal place of business of
the Company;

 

		(v)	resignation letter of each of the directors of the Company, save for the Vendor, in the form and
substances reasonably satisfied by the Purchaser;

 

		(vi)	the duly executed Individual Guarantee;

 

		(vii)	a draft guarantee and undertaking, in the form and substances reasonably satisfied by the Purchaser,
to be executed by the Vendor and Mr. Tam Lok Hang in favour of the Purchaser or its nominee to (i) guarantee the three (3) years
forecasted profit of the Company; and (ii) undertake the three (3) years fixed term in relation to the existing shareholders as
at the date of this Agreement;

 

    7

     

    

 

		(viii)	a cheque made payable to “the Government of Hong Kong SAR” for such amount representing
the share of Hong Kong stamp duty which shall be borne by the Vendor as transferor of the Sale Shares in accordance with the Stamp
Duty Ordinance;

 

		(ix)	such other documents as may be reasonably required by the Purchaser to, among other things, give
good title to the Sale Shares free from all Encumbrances and third party rights of any kind and to enable the Purchaser or its
nominees to become the registered holder thereof; and

 

		(x)	a certified true copy of the resolutions of the board of directors of the Company approving the
matters set out in Clause 5.2(b);

 

		(b)	procure that the following businesses shall be approved at a meeting of the directors of the Company:

 

		(i)	the directors of the Company shall approve the transfer of the Sale Shares and the Purchaser or
its nominee shall be duly registered as the holder of the Sale Shares in the register of members of the Company, subject to the
memorandum and articles of association of the Company;

 

		(ii)	the directors of the Company shall approve the resignation of all the existing directors of the
Company, save for the Vendor, prior to the Completion and the appointment of the directors nominated by the Purchaser;

 

		(iii)	the directors of the Company shall resolve that the share certificate in respect of the Sale Shares
be duly issued and delivered to the Purchaser and/or its nominee;

 

		(iv)	the directors of the Company shall approve the execution and performance of the Loan Agreement;
and

 

		(v)	the directors of the Company shall approve any of its directors to do all such acts and things
and to sign any documents reasonably required to give effect to the transaction as contemplated under this Agreement.

 

		5.3	At Completion, against compliance with the provisions of Clause 5.2, the Purchaser shall deliver
or cause to be delivered to the Vendor:

 

		(a)	a certified copy of the resolutions passed by the board of directors of the Purchaser approving
(i) the execution and performance of this Agreement and (ii) the execution and performance of the Loan Agreement;

 

		(b)	evidence reasonably satisfactory to the Vendor that the Conditions Precedent in Clause 4.1 (which
are applicable to the Purchaser) of this Agreement have been fulfilled;

 

		(c)	the instrument(s) of transfer and the bought and sold notes of the Sale Shares duly executed by
the Purchaser or its nominee;

 

    8

     

    

 

		(d)	a copy of the board resolutions of CLNT approving the allotment and issue of the Consideration
Shares;

 

		(e)	the duly executed Loan Agreement; and

 

		(f)	documents as may be reasonably required to give good title to the Consideration Shares free from
all Encumbrances and third party rights of any kind and to enable the Vendor or his nominees to become the registered holders thereof.

 

		6.	REPRESENTATIONS AND WARRANTIES

 

		6.1	The Purchaser hereby represents, warrants and undertakes to the Vendor in the terms set out in
this Clause 6 and Schedule 3.

 

		6.2	The Vendor hereby represents, warrants and undertakes to the Purchaser in the terms set out in
this Clause 6 and Schedule 2.

 

		6.3	The Purchaser shall be deemed to have repeated all the Purchaser Warranties on the basis that such
Purchaser Warranties will at all times from the date of this Agreement up to and including the Completion Date be true, complete
and accurate in all respects and such Purchaser Warranties shall have effect as if given at Completion as well as the date of this
Agreement.

 

		6.4	The Vendor shall be deemed to have repeated all the Vendor Warranties on the basis that such Vendor
Warranties will at all times from the date of this Agreement up to and including the Completion Date be true, complete and accurate
in all respects and such Vendor Warranties shall have effect as if given at Completion as well as the date of this Agreement.

 

		6.5	The Vendor agrees and acknowledges that the Purchaser is entering into this Agreement in reliance
on the Vendor Warranties.

 

		6.6	The Purchaser agrees and acknowledges that the Vendor is entering into this Agreement in reliance
on the Purchaser Warranties.

 

		6.7	None of the Warranties shall be limited or restricted by reference to or inference from the terms
of any other Warranties or any other term of this Agreement.

 

		6.8	If any Party fails to perform any of its obligations in any material respect (including its obligation
at Completion) under this Agreement or breaches any of the terms or Warranties set out in this Agreement in any material respect
prior to Completion, then without prejudice to all and any other rights and remedies available at any time to a non-defaulting
Party (including but not limited to the right to damages for any loss suffered by that Party), any non-defaulting Party may by
notice either require the defaulting Party to perform such obligations or, insofar as the same is practicable, remedy such breach
or to the extent it relates to the failure of the defaulting Party to perform any of its obligations on or prior to Completion
in any material respect, treat the defaulting Party as having repudiated this Agreement and rescind the same. The rights conferred
upon the respective Parties by the provisions of this Clause 6 are additional to and do not prejudice any other rights the respective
Parties may have. Failure to exercise any of the rights herein conferred shall not constitute a waiver of any such rights.

 

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		7.	FURTHER ASSURANCE

 

Each Party undertakes
to the other Party to execute or procure to be executed all such documents and to do or procure to be done all such other acts
and things as may be reasonable and necessary to give all Parties the full benefit of this Agreement.

 

		8.	RESTRICTIONS ON COMMUNICATION AND ANNOUNCEMENTS

 

		8.1	Each of the Parties undertakes to the other Party that it shall not at any time after the date
of this Agreement divulge or communicate to any person other than to its professional advisers, or when required by law or any
rule of any relevant stock exchange body, or to its respective officers or employees whose province it is to know the same any
confidential information concerning the business, accounts, finance or contractual arrangements or other dealings, transactions
or affairs of the other which may be within or may come to its knowledge in connection with the transactions contemplated by this
Agreement and it shall use its best endeavours to prevent the publication or disclosure of any such confidential information concerning
such matters. This restriction shall not apply to information or knowledge which is or which properly comes into the public domain,
through no fault of any of the Parties or to information or knowledge which is already known to any of the Parties at the time
of its receipt.

 

		8.2	Each of the Parties undertakes that it shall not at any time (save as required by law or any rule
of any relevant stock exchange or regulatory body) make any announcement in connection with this Agreement unless the other Party
shall have given its consent to such announcement (which consent may not be unreasonably withheld or delayed and may be given either
generally or in a specific case or cases and may be subject to conditions). If any Party is required by law or any rule of any
relevant stock exchange or regulatory body to make any announcement in connection with this Agreement, the other Party agrees to
supply all relevant information relating to itself that is within its knowledge or in its possession as may be reasonably necessary
or as may be required by any exchange and regulatory body to be included in the announcement.

 

		9.	PARTIAL INVALIDITY

 

If, at any time,
any provision of this Agreement is or becomes illegal, invalid or unenforceable in any respect in any jurisdiction, the legality,
validity and enforceability in other jurisdictions or of the remaining provisions of this Agreement shall not be affected or impaired
thereby.

 

		10.	COSTS AND EXPENSES

 

Each Party shall
bear its own costs of and incidental to the preparation, negotiation and settlement of this Agreement and the transactions contemplated
hereunder (including, without limitation, legal fees and expenses, and capital fees or stamp duty (if any) relating to this Agreement).

 

		11.	ASSIGNMENT

 

No Party shall
assign any of its rights or obligations under this Agreement without the written consent of the other Party.

 

    10

     

    

 

		12.	CONTINUING EFFECT OF AGREEMENT

 

Any provision
of this Agreement which is capable of being performed after Completion but which has not been performed at or before Completion
shall remain in full force and effect notwithstanding Completion.

 

		13.	GENERAL

 

		13.1	This Agreement supersedes all and any previous agreements, arrangements or understanding between
the Parties relating to the matters referred to in this Agreement and all such previous agreements, understanding or arrangements
(if any) shall cease and determine with effect from the date hereof and neither Party shall have any claim in connection therewith.

 

		13.2	This Agreement constitutes the entire agreement between the Parties with respect to its subject
matter (no Party having relied on any representation or warranty made by the other Party which is not contained in this Agreement).
No variation of this Agreement shall be effective unless made in writing and signed by all Parties.

 

		13.3	Time shall be of the essence of this Agreement but no failure by any Party to exercise, and no
delay on its part in exercising any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise
of any right under this Agreement preclude any other or further exercise of it or the exercise of any right or prejudice or affect
any right against the other. The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights
or remedies provided by law.

 

		13.4	No delay or failure by a Party to exercise or enforce (in whole or in part) any right provided
by this Agreement or by law shall operate as a release or waiver, or in any way limit that Party’s ability to further exercise
or enforce that, or any other, right. A waiver of any breach of any provision of this Agreement shall not be effective, or implied,
unless that waiver is in writing and is signed by the Party against whom that waiver is claimed. In the event of a default by either
Party in the performance of its obligations under this Agreement, the non-defaulting Party shall have the right to obtain specific
performance of the defaulting Party’s obligations. Such remedy shall be in addition to any other remedies provided under
this Agreement or at law.

 

		14.	NOTICES

 

		14.1	Any notice claim, demand, court process, document or other communication to be given under this
Agreement (collectively “communication” in this Clause) shall be in writing in the English or Chinese language
and may be served or given personally or sent to the e-mail address (if any) of the relevant Party and marked for the attention
and/or copied to such other person as specified in Clause 14.4.

 

		14.2	A change of address or e-mail address of the person to whom a communication is to be addressed
or copied pursuant to this Agreement shall not be effective until five days after a written notice of change has been served in
accordance with the provisions of this Clause 14 on the other Party with specific reference in such notice that such change is
for the purposes of this Agreement.

 

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		14.3	All communications shall be served by the following means and the addressee of a communication
shall be deemed to have received the same within the time stated adjacent to the relevant means of despatch:

 

	 	Means of despatch	 	Time of deemed receipt	 
	 	Local mail or courier	 	24 hours	 
	 	E-mail	 	on despatch	 
	 	Air courier/Speedpost	 	3 days	 
	 	Airmail	 	7 days	 

 

		14.4	The initial addresses and facsimile numbers of the Parties for the service of communications, the
person for whose attention such communications are to be marked and the person to whom a communication is to be copied are as follows:

 

If to the Vendor:

 

	 	Address	:	
        Room 705, 7/F., China Insurance Group Building

        No. 141 Des Voeux Road Central

        Central, Hong Kong

	 	E-mail	:	kurt.tam@inspiritstudio.com
	 	Attention	:	Kurt Tam

 

If to the Purchaser:

 

		Address	:	
        Room 315 – 316, Building W12,

        Hong
        Kong Science Park,

        Shatin, N.T.,

        Hong Kong

	 	E-mail	:	parkson.yip@cleantechsolutionsinternational.com
	 	Attention	:	Parkson Yip

 

		14.5	A communication served in accordance with this Clause 14 shall be deemed sufficiently served and
in proving service and/or receipt of a communication it shall be sufficient to prove that such communication was left at the addressee’s
address or that the envelope containing such communication was properly addressed and posted or despatched to the addressee’s
address. In the case of communication by e-mail, such communication shall be deemed properly transmitted upon the receipt of the
sent confirmation by the e-mail account of the sender.

 

		14.6	Nothing in this Clause shall preclude the service of communication or the proof of such service
by any mode permitted by law.

 

		15.	COUNTERPARTS

 

This Agreement may be executed
in any number of counterparts, and this has the same effect as if the execution on the counterparts were on a single copy of this
Agreement.

 

		16.	GOVERNING LAW

 

		16.1	This Agreement shall be governed by and construed in accordance with the laws of Hong Kong.

 

		16.2	The courts of Hong Kong have non-exclusive jurisdiction to settle any dispute arising out of or
in connection with this Agreement (including a dispute regarding the existence, validity or termination of this Agreement).

 

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IN WITNESS whereof this Agreement
has been duly executed on the date first above written.

 

VENDOR

 

	SIGNED by TAM LOK
    MAN	)
	in the presence of :  	)
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	PURCHASER	 
	 	 
	SIGNED by LAU PING KEE	)
	as authorised representative of	)
	DOUBLE AFFIRM LIMITED	)
	in the presence of :	)

 

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SCHEDULE
1

PARTICULARS OF THE COMPANY

 

	
        1.

         
	
        Company name

         
	:	Inspirit Studio Limited 
	2.	Company number	:	2278262
	 	 	 	 
	3.	Date of incorporation	:	24 August 2015
	 	 	 	 
	4.	Place of incorporation	:	Hong Kong
	 	 	 	 
	5.	Address of registered office	:	Room 705, 7/F., China Insurance Group Building, No. 141 Des Voeux Road Central, Central, Hong Kong
	 	 	 	 
	6.	Issued share capital	:	200
	 	 	 	 
	7.	Shareholder (number of shares and shareholding %)	:	
        Tam Lok Man

        (146 shares - 73%)

         

        Tam Lok Hang

        (38 shares - 19%)

         

        Colman Ng 

        (8 shares - 4%)

         

        Mak Chun Kit 

        (8 shares - 4%) 

         

	8.	Directors	:	
        Tam Lok Man

        Tam Lok Hang

        Colman Ng

 

    14

     

    

 

SCHEDULE
2

VENDOR WARRANTIES

 

		1.	General

 

		1.1	The contents of the Recitals of and Schedule 1 to this Agreement are true and accurate.

 

		1.2	All information given by the Vendor or his agents or professional advisers to the Purchaser or
its employees, agents or professional advisers relating to the business, activities, affairs, or assets or liabilities of the Company
was, when given, and is now true, accurate and complete in all respects.

 

		1.3	There are no material facts or circumstances, in relation to the assets, business or financial
condition of the Company which have not been exhaustively, expressly and fairly disclosed in writing to the Purchaser or its employees,
agents or professional advisers, and which, if disclosed, might reasonably have been expected to affect the decision of the Purchaser
to enter into this Agreement.

 

		1.4	The execution and performance of this Agreement will not conflict with or result in a breach of
or be a reason for the termination or variation of any agreement or obligation to which the Company is now a party or any of the
Company or its assets are or may be bound or affected or be in violation of any law, rule or regulation of any governmental, administrative
or regulatory body or any order, injunction or decree of any judicial, administrative, regulatory or governmental body affecting
the Company.

 

		2.	Organisation, Authority and Power

 

		2.1	The Company is a company duly incorporated and validly existing under the laws of Hong Kong. All
issued shares in the Company are duly authorised, validly issued and fully paid up and none of such shares (where applicable) has
been issued in violation of the memorandum and articles of association of the Company or the terms of any agreement by which the
Company or its shareholders were or are bound, if any.

 

		2.2	The Vendor has, on the date of this Agreement and on Completion, full and unfettered right, power
and authority to enter into this Agreement and assume all of their obligations hereunder and no further actions or proceedings
are necessary on their part in connection with the execution, delivery and performance by them of this Agreement.

 

		2.3	This Agreement constitutes valid and legally binding obligations on the part of the Vendor enforceable
in accordance with its terms.

 

		2.4	The Vendor is the legal and beneficial owners of the Sale Shares and is entitled to sell and transfer
the Sale Shares and pass the full legal and beneficial ownership thereof with all rights thereto to the Purchaser or its nominee
on the terms of this Agreement. The Sale Shares are issued and fully paid and is beneficially owned by the Vendor free from all
Encumbrances. The Sale Shares constitutes the 51% of the issued share capital of the Company.

 

    15

     

    

 

		3.	Records and taxation

 

		3.1	The Company has duly made up all requisite books of account (reflecting in accordance with generally
accepted accounting principles for all the financial transactions of the Company), minutes books, registers and records in compliance
with all applicable laws and regulatory requirements and these and all other deeds and documents (properly stamped where necessary)
belonging to or which ought to be in its possession and its seal are in its possession.

 

		3.2	All the accounts, books, ledgers, financial and other records of whatsoever kind, of the Company
are in its possession, have been fully, properly and accurately kept and completed, do not contain any material inaccuracies or
discrepancies of any kind and give and reflect a true and fair view of its trading transactions, and its financial, contractual
and trading position.

 

		3.3	The Company has duly complied with its obligations to account to the relevant tax authorities and
all other authorities for all amounts for which it is or may become accountable in respect of Taxation relating to its business.

 

		3.4	All returns in connection with Taxation that should have been filed by the Company have been filed
correctly and on a proper basis in accordance with all applicable laws and regulatory requirements and there are no facts known
or which would on reasonable enquiry be known to the Company or its directors which may give rise to any dispute or to any claim
for any Taxation or the deprivation of any relief or advantage that might have been available.

 

		3.5	The Company is not and does not expect to be involved in any dispute in relation to Taxation and
no authority concerned has investigated or indicated that it intends to investigate into the tax affairs of the Company nor are
there any circumstances of which the Vendor is aware which would cause any authority to investigate into the tax affairs of the
Company.

 

		3.6	The Company has no liability in respect of Taxation (whether actual or contingent) nor any liability
for interest, penalties or charges imposed in relation to any Taxation arising or deemed to arise in any accounting period ending
on or before the Accounts Date that is not provided for in full in the Accounts, and in particular, has no outstanding liability
for:

 

		(i)	Taxation in any part of the world assessable or payable by reference to any profit, gain, income
or distribution earned, received, paid, arising or deemed to arise on or at any time prior to the Accounts Date or in respect of
any period ending on or before the Accounts Date; or

 

		(ii)	purchase, value added, sales or other similar tax in any part of the world referable to transaction
effected on or before the Accounts Date,

 

that is not
provided for in the Accounts.

 

		3.7	The amount of the provision for deferred Taxation contained in the Accounts was computed on a full
provision basis and was, at the date on which the Accounts were prepared, adequate and fully in accordance with accountancy practices
generally accepted in Hong Kong and commonly adopted by companies carrying on businesses similar to those carried on by the Company.

 

    16

     

    

 

		3.8	Since the Accounts Date up to and inclusive of the Completion Date:

 

		(i)	the Company has not been involved in any transaction outside the ordinary course of business which
has given or may give rise to a liability to Taxation on the Company (or would have given or might give rise to such a liability
but for the availability of any relief, allowance, deduction or credit);

 

		(ii)	no accounting period or year of assessment of the Company has ended;

 

		(iii)	no disposal has taken place or other event occurred which will or may have the effect of crystallising
a liability to Taxation which should have been included in the provision for deferred Taxation contained in the Accounts if such
a disposal or other event had been planned or predicted at the date on which the Accounts were drawn up;

 

		(iv)	no payment has been made by the Company which will not be deductible for profits tax (or its equivalent)
purposes either in computing the profits of the Company or in computing the profits tax chargeable on the Company;

 

		(v)	no event has occurred with the result that the Company has or will become liable to pay or bear
a liability in respect of Taxation directly or primarily charged against, or attributable to, another person, firm or company;
and

 

		(vi)	the Company has not paid or become liable to pay any penalty in connection with any Taxation or
otherwise paid any Taxation after its due date for payment or become liable to pay any Taxation the due date for payment of which
has passed or will become prospectively liable to pay any Taxation the due date for payment of which will fall within 30 days after
the date of this Agreement.

 

		3.9	The Company has within the time limits prescribed by the relevant legislation duly paid all tax
(including provisional tax), made all returns, given all notices, supplied all other information required to be supplied to the
Inland Revenue Department and any other relevant governmental authority (including any governmental authority of a foreign jurisdiction)
and all such information was and remains complete and accurate in all material respects and all such returns and notices were and
remain complete and accurate in all material respects and were made on a proper basis and do not, nor, to the best of the knowledge,
information and belief of the Vendor, having made due and careful enquiry, are likely to, reveal any transactions which may be
the subject of any dispute with the Inland Revenue Department or other relevant authorities and the Company is not and has not
in the last six years been the subject of an Inland Revenue Department (or equivalent foreign tax authority) investigation or field
audit or other dispute regarding tax or duty recoverable from the Company or regarding the availability of any relief from Taxation
or duty to the Company and there are no facts known to the Vendor which are likely to cause such an investigation or audit to be
instituted or such a dispute to arise.

 

		3.10	The Company has duly submitted all claims and disclaimers which have been assumed to have been
made for the purpose of the Accounts.

 

		3.11	There are no material and/or unusual arrangements, agreements or undertakings, between the Company
and the Inland Revenue Department, or any foreign tax authorities, regarding or affecting the Taxation treatment of the Company.

 

    17

     

    

 

		3.12	The Company has kept sufficient records in either English or Chinese:

 

		(i)	of its income and expenditure to enable the assessable profits of its trade, profession or business
to be readily ascertained in compliance with and for the period mentioned in Section 51C of the Inland Revenue Ordinance or other
similar legislation;

 

		(ii)	of the consideration, in money or money’s worth, payable or deemed to be payable to it, to
its order or for its benefit in respect of the right of use of its land or buildings or land and buildings to enable the assessable
value of its land or buildings or land and buildings to be readily ascertained in compliance with and for the period mentioned
in Section 57D of the Inland Revenue Ordinance.

 

		3.13	The Company has duly complied with all requirements to deduct or withhold Taxation from any payments
it has made and has accounted in full to the appropriate authorities for all amounts so deducted or withheld.

 

		4.	Corporate Status

 

		4.1	The Company has all requisite corporate power and authority to own its assets and to carry on its
business as currently conducted and is duly qualified to do business and is in good standing as a foreign corporation in each jurisdiction
where the ownership or operation of its assets or the conduct of its business requires such qualification.

 

		4.2	No events or omissions have occurred whereby the constitution, subsistence or corporate status
of the Company has been or is likely to be adversely affected.

 

		4.3	No order for the appointment of a liquidator has been made and as receiver has been appointed over
the whole or any part of the assets of the Company.

 

		4.4	No order has been made, or petition presented, or resolution passed for the winding up of the Company,
nor has any distress, execution or other process been levied in respect of the Company which remains undischarged; nor is there
any unfulfilled or unsatisfied judgment or court order outstanding against the Company.

 

		4.5	Save as contemplated under and this Agreement, as at the Completion Date, there are no pre-emptive
or other outstanding rights, options, warrants, conversion rights or agreements or commitments of any character relating to the
authorised and issued, unissued or treasury shares or equity interest of the Company and the Company has not issued any debt securities,
other securities, rights or obligations which are convertible into or exchangeable for, or giving any person a right to subscribe
for or acquire, capital or equity interest of the Company, and no such securities or obligations evidencing such rights are outstanding.

 

		4.6	The Company is duly incorporated, validly existing and in good standing under the laws of Hong
Kong and has all requisite corporate or similar power and authority to own and operate its properties and assets and to carry on
its business as presently conducted and is duly qualified to do business.

 

    18

     

    

 

		5.	Accounts and Management Accounts

 

		5.1	The Accounts:

 

		(i)	have been prepared on a basis consistent with all previous balance sheets and profit and loss accounts
of the Company and in accordance with generally accepted accounting principles, standards and practice adopted in Hong Kong;

 

		(ii)	are true, complete and accurate in all material respects and in particular have made full provision
for all material liabilities or make proper provision for (or contain a note in accordance with good accounting practice adopted
in Hong Kong respecting) all material deferred or contingent liabilities (whether liquidated or unliquidated) at the date thereof
and have made adequate provision for bad and doubtful debts and for depreciation of the Company’s fixed assets having regard
to their original cost and estimated life;

 

		(iii)	give a true and fair view of the state of affairs and the financial position of the Company as
at the Accounts Date and of the results of the Company for the financial period ended on that date;

 

		(iv)	are not adversely affected by any unusual items which are not disclosed in the Accounts; and

 

		(v)	any slow moving, old, obsolescent or excessive stock has been written down appropriately in the
Accounts, any irrevocable work in progress has been wholly written off and the value attributed in the Accounts to the remaining
stock did not exceed the lower of cost and net realisable value at the Accounts Date and no part of such value is attributable
to stock which is unusable or unsaleable in the normal course of the Company’s business.

 

		5.2	The Company has no liability for Taxation of any kind, which has not been provided for in the Accounts.

 

		5.3	Due provision has been made in the Accounts for any capital commitment undertaken or authorised
at the Accounts Date as may be appropriate and for any bad or doubtful debt due and payable to the Company in its own right.

 

		5.4	The Company is a not member of any partnership or unincorporated company or association.

 

		5.5	Since the Accounts Date up to and inclusive of Completion Date:

 

		(i)	there has been no material adverse change in the financial position or business or prospects of
the Company and the Company has entered into transactions and incurred liabilities only in the ordinary course of business;

 

		(ii)	The Company has not declared, paid or made nor is proposing to declare, pay or make any dividend
or other distribution;

 

		(iii)	the business of the Company has been carried on in the ordinary and usual course and in the same
manner (including nature and scope) as in the past, no fixed asset or stock has been written up nor any debt written off and no
unusual or abnormal contract has been entered into by the Company; and

 

		(iv)	no asset of the Company has been acquired or disposed of on capital account, or has been agreed
to be acquired or disposed of, otherwise than in the ordinary course of business and the Company has not disposed of or parted
with possession of any of its property assets (including know how) or stock in trade or made any payments and no contract involving
expenditure by it on capital account has been entered into by the Company and no liability has been created or has otherwise arisen
(other than in the ordinary course of business as previously carried on).

 

    19

     

    

 

		5.6	The Management Accounts have been properly complied by the directors of the Company on the basis
which is consistent with the accounting policies consistently applied and are accurate in all respects and show a true and fair
view of the state of affairs of the Company and of its results and profits for the financial period ending on the Management Accounts
Date and:

 

		(a)	depreciation of the fixed assets of the Company has been made at a rate sufficient to write down
the value of such assets to nil not later than the end of their useful working lives;

 

		(b)	the Management Accounts disclose and make full provision or reserve for all actual liabilities;

 

		(c)	the Management Accounts disclose and make proper provision or reserve for or note all contingent
liabilities, capital or burdensome commitments and deferred taxation;

 

		(d)	the bases and policies of accounting of the Company (including depreciation) adopted for the purpose
of preparing the Management Accounts are the same as those adopted for the purpose of preparing the audited accounts of the Company
for each of the preceding accounting periods since the date of incorporation;

 

		(e)	the profits and losses of the Company shown in the Management Accounts and for the preceding accounting
periods have not in any material respect been affected by any unusual or exceptional item or by any other matter which has rendered
such profits or losses unusually high or low; and

 

		(f)	the accounts receivable shown in the Management Accounts have been collected or will in aggregate
realise the nominal amount thereof less any reserve for bad and doubtful debts included in the Management Accounts and none of
the amounts shown in the Management Accounts in respect of debtors is represented by debts which were then more than six (6) months
overdue for payment and none of the same has been released or settled for an amount less than that shown in the Management Accounts.
All such debts will be collectible in full within one hundred and eighty (180) days of the Completion Date subject to the Company
using all reasonable endeavours to collect the same.

 

		6.	Business, etc. 

 

		6.1	The Company has not given or permitted to be outstanding any powers of attorney or authority (expressed
or implied) to any party to enter into any contracts, commitments or transactions (other than the usual authority conferred on
its directors in respect of the ordinary course of business) or pursuant to the banking facilities granted to the Company.

 

    20

     

    

 

		6.2	The Company has not entered into any contracts, commitments or transactions other than on an arms-length
basis nor breached or defaulted under any contracts, commitments or transactions.

 

		6.3	There are no existing circumstances which indicate that as a result of the consummation of this
Agreement:

 

		(i)	the existing level of business of the Company may be substantially reduced; and

 

		(ii)	the Company will lose the benefit of any right or privilege which it enjoys.

 

		6.4	Compliance with the terms of this Agreement does not and will not :

 

		(i)	conflict with, or result in the breach of, or constitute a default under, any of the terms, conditions
or provisions of any agreement or instrument to which the Company is a party, or any provision of the memorandum or articles of
association or equivalent constitutive documents of the Company or any Encumbrance, lease, contract, order, judgment, award, injunction,
regulation or other restriction or obligation of any kind or character by which or to which any asset of the Company is bound or
subject;

 

		(ii)	relieve any person from any obligation to the Company (whether contractual or otherwise), or enable
any person to determine any obligation, or any right or benefit enjoyed by the Company, or to exercise any right, whether under
an agreement with, or otherwise in respect of, the Company;

 

		(iii)	result in the creation, imposition, crystallisation or enforcement of any Encumbrances whatsoever
on any of the assets of the Company; or

 

		(iv)	result in any present or future indebtedness of the Company becoming due, or capable of being declared
due and payable, prior to its stated maturity.

 

		6.5	The Company has, at all times, carried on its business and conducted its affairs in all respects
in accordance with its memorandum and articles of association or equivalent constitutive documents for the time being in force
and any other documents to which it is, or has been, a party.

 

		6.6	The Company is empowered and duly qualified to carry on business in all jurisdictions in which
it now carries on business.

 

		6.7	The Company is not a party to any undertaking or assurances given to any court or governmental
agency, which is still in force.

 

		6.8	The Company has conducted and is conducting its business in all respects in accordance with all
applicable laws and regulations, whether of Hong Kong or elsewhere.

 

		6.9	The Company is not in breach of any of the terms or conditions of any of the licences or consents;
the enforcement of this Agreement shall not, and there are no factors that might, in any way prejudice the continuation, or renewal,
of any of them.

 

    21

     

    

 

		6.10	The Company is not a party to any contract, transaction, arrangement or liability which:

 

		(i)	is of an unusual or abnormal nature, or outside the ordinary and proper course of business; or

 

		(ii)	cannot readily be fulfilled or performed by it on time without undue, or unusual, expenditure of
money, effort or personnel.

 

		6.11	No notice, demand or claim of default under any agreement, instrument or arrangement to which the
Company is a party has been received by the Company and is outstanding against it and there is nothing whereby any such agreement,
instrument or arrangement may be prematurely terminated or rescinded by any other party.

 

		6.12	The Vendor is not aware of:

 

		(i)	any party to any agreement with, or under an obligation to, the Company who is in default under
it, being a default which would be material in the context of the Company’s financial position; and

 

		(ii)	any circumstances likely to give rise to such a default.

 

		6.13	Insofar as the Vendor is aware, the Company has not supplied services or products which are, or
were, or will become faulty or defective, or which do not comply in any material respect with any warranties or representations,
expressly or impliedly made by it, or with all applicable regulations and requirements.

 

		7.	Corporate Records and Procedures etc. 

 

		7.1	The copy of the memorandum and articles of association or the equivalent constitutive documents
of the Company delivered to the Purchaser is accurate, update and complete in all respects.

 

		7.2	No alteration has been made to the memorandum or articles of association or the equivalent constitutive
documents of the Company and no resolution of any kind of the shareholders of the Company has been passed (other than resolutions
relating to the business at annual general meetings which was not special business) without disclosure in writing to the Purchaser.

 

		7.3	The Company has fully and punctually observed and complied with its obligations under the relevant
companies legislations and the relevant statutes and all returns, particular resolutions and other documents (if any) required
to be filed have been properly and punctually filed.

 

		7.4	The register of members of the Company is and will at Completion be correct. There has been no
notice of any proceedings to rectify the register, and there are no circumstances which might lead to any application for rectification
of the register, nor will there be any such circumstances at or before Completion.

 

		8.	Directors

 

Other than the
directors set out in Schedule 1, the Company has no other director.

 

    22

     

    

 

		9.	Dispute, Claims and Litigation

 

		9.1	The Company is not engaged in any litigation or arbitration proceedings, as plaintiff or defendant;
there are no proceedings pending or threatened, either by or against the Company; and no circumstances exist which are likely to
give rise to any litigation or arbitration.

 

		9.2	There is no dispute with any revenue, or other official, department or other regulatory authority
in Hong Kong or elsewhere, in relation to the affairs of the Company, and the Company and the Vendor is not aware of any facts
which may give rise to any dispute.

 

		9.3	No order has been made, or petition presented, or resolution passed for the winding up of the Company;
nor has any distress, execution or other process been levied in respect of the Company which remains undischarged; nor is there
any unfulfilled or unsatisfied judgment or court order outstanding against the Company.

 

		9.4	The Company has conducted its business and dealt with its assets in all material respects in accordance
with all applicable legal and administrative requirements in any jurisdiction.

 

		9.5	The Company has not committed any criminal act or material breach of contract or statutory duty
or any tortious or other unlawful act.

 

		9.6	No unsatisfied judgment is outstanding against the Company.

 

		10.	Liabilities

 

		10.1	The Company does not have, as at the Accounts Date, any material liabilities or financial commitment
except as disclosed in the Accounts.

 

		10.2	All loans and payables incurred before Completion have been either waived or settled, save for
those as agreed between the Vendor and the Purchaser.

 

		11.	Agents

 

		11.1	There are in force no powers of attorney or any special authorities given by the Company other
than those given in the ordinary course of business.

 

		11.2	Other than in the ordinary course of business, the Company has not ever entered into an agreement
under which any person has been given representative or agency rights or powers.

 

    23

     

    

 

		12.	Acquisition of the Consideration Shares

 

		12.1	The Vendor understands that the Consideration Shares are “restricted securities” and
have not been registered under the Securities Act of 1933, as amended (the “Securities Act”) or any applicable
state securities law and are acquiring the Consideration Shares as principal for their own account and not with a view to or for
distributing or reselling the Consideration Shares or any part thereof in violation of the Securities Act, have no present intention
of distributing any of such Consideration Shares in violation of the Securities Act and have no direct or indirect arrangement
or understandings with any other persons to distribute or regarding the distribution of such Consideration Shares in violation
of the Securities Act. The Vendor understands that the Consideration Shares may only be disposed of in compliance with the Securities
Act. In connection with any transfer of the Consideration Shares other than pursuant to an effective registration statement, CLNT
may require the transferor thereof to provide CLNT with an opinion of counsel selected by the transferor and reasonably acceptable
to CLNT, the form and substance of which opinion shall be reasonably satisfactory to CLNT, to the effect that such transfer does
not require registration of such transferred Consideration Shares under the Securities Act.

 

		12.2	The Vendor hereby represents that he has satisfied himself as to the full observance of the laws
of his jurisdiction in connection with any invitation to subscribe for the Consideration Shares, including (i) the legal requirements
within his jurisdiction for the acquisition of the Consideration Shares, (ii) any foreign exchange restrictions applicable to such
purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences,
if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Consideration Shares. The Vendor’s
beneficial ownership of the Consideration Shares will not violate any applicable securities or other laws of the Vendor’s
jurisdiction.

 

		12.3	The Vendor, either alone or together with his representatives, have such knowledge, sophistication
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the acquisition of the
Consideration Shares, and have so evaluated the merits and risks. The Vendor is able to bear the economic risk of the Consideration
Shares and, at the present time, are able to afford a complete loss of the Consideration Shares.

 

		12.4	The Vendor is not, to his knowledge, acquiring the Consideration Shares as a result of any advertisement,
article, notice or other communication regarding the Consideration Shares published in any newspaper, magazine or similar media
or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement.

 

		12.5	The Vendor acknowledges that he has had the opportunity to review any and all documents and has
been afforded (i) the opportunity to ask such questions as they have deemed necessary of, and to receive answers from, representatives
of CLNT concerning the Consideration Shares; and (ii) access to information about CLNT and its financial condition, results of
operations, business, properties, management and prospects sufficient to enable it to evaluate the transaction. The Vendor acknowledges
and agrees that CLNT has not provided the Vendor with any information or advice with respect to the Consideration Shares nor is
such information or advice necessary or desired.

 

		12.6	Neither the Vendor nor any person acting on his behalf has engaged, nor will engage, in any directed
selling efforts to a U.S. Person (as defined in the Securities Act) with respect to the Consideration Shares and the Vendor and
any person acting on his behalf has complied and will comply with the “offering restrictions” requirements of Regulation
S. The transactions contemplated hereby have not been pre-arranged with a buyer located in the United States or with a U.S. Person,
and are not part of a plan or scheme to evade the registration requirements of the Securities Act. Neither the Vendor nor any person
acting on his behalf has undertaken or carried out any activity for the purpose of, or that could reasonably be expected to have
the effect of, conditioning the market in the United States, its territories or possessions, for any of the Consideration Shares.
The Vendor agrees not to cause any advertisement of the Consideration Shares to be published in any newspaper or periodical or
posted in any public place and not to issue any circular relating to the Consideration Shares, except such advertisements that
include the statements required by Regulation S, and only offshore and not in the U.S. or its territories, and only in compliance
with any local applicable securities laws.

 

    24

     

    

 

		12.7	The Vendor understands that the Consideration Shares and any securities issued in respect of or
exchange for the Consideration Shares, may be notated with one or all of the following legends, as applicable:

 

“THIS SECURITY HAS NOT BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.”

 

“THESE SECURITIES ARE BEING
OFFERED TO INVESTORS WHO ARE NOT U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“THE
SECURITIES ACT”) AND WITHOUT REGISTRATION WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES
ACT IN RELIANCE UPON REGULATION S PROMULGATED UNDER THE SECURITIES ACT. TRANSFER OF THESE SECURITIES IS PROHIBITED, EXCEPT IN ACCORDANCE
WITH THE PROVISIONS OF REGULATION S PROMULGATED UNDER THE SECURITIES ACT, PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT, OR
PURSUANT TO AVAILABLE EXEMPTION FROM REGISTRATION.  HEDGING TRANSACTIONS MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH
THE SECURITIES ACT.”

 

    25

     

    

 

SCHEDULE
3

PURCHASER WARRANTIES

 

		1.	The Purchaser has, on the date of this Agreement and on Completion, full and unfettered right,
power and authority to enter into this Agreement and assume all of its obligations hereunder and no further actions or proceedings
are necessary on its part in connection with the execution, delivery and performance by it of this Agreement.

 

		2.	The Purchaser is a company duly incorporated and validly existing under the laws of BVI.

 

		3.	This Agreement constitutes valid and legally binding obligations on the part of the Purchaser enforceable
in accordance with its terms.

 

		4.	All information given by the Purchaser or its agents or professional advisers to the Vendor or
his employees, agents or professional advisers was, when given, and is now true, accurate and complete in all respects.

 

		5.	Subject to the fulfillment of the Conditions Precedent, all necessary consents, authorisations
and approvals of and all necessary registrations and filings with any governmental or regulatory agency or body required in Hong
Kong and the BVI for or in connection with this Agreement and the performance of the terms thereof have been obtained or made or
will have been obtained or made by Completion.

 

		6.	All the Consideration Shares to be issued and allotted by CLNT to the Vendor will be duly authorised,
validly issued and fully paid up and none of such shares will be issued in violation of the memorandum and articles of association
of CLNT or the terms of any agreement or laws and regulations by which CLNT or its shareholders were or are bound, if any.

 

 

26LINE
OF CREDIT AGREEMENT

 

This
Line of Credit Agreement (“Agreement”), dated as of the 23rd day of October 2017, by and between SHEPHERD’S
FINANCE, LLC, a Delaware limited liability company, having an address at 12627 San Jose Blvd., Suite 203, Jacksonville, FL
32223 (“Borrower”),

 

AND

 

PAUL
SWANSON having an address of 128 Sota Drive, Jupiter, Florida 33458 (“Lender”).

 

WITNESSETH:

 

WHEREAS,
Borrower has requested Lender to extend a revolving line of credit to Borrower in the principal amount not to exceed FOUR MILLION
and 00/100 DOLLARS ($4,000,000.00) to use for certain purposes as set forth herein; and

 

WHEREAS,
Lender is willing to extend such credit pursuant to the terms and conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the premises and of the mutual covenants herein contained and intending to be legally bound hereby,
the parties hereto agree as follows:

 

ARTICLE
I

DEFINITIONS

 

1.01.
Certain Definitions. In addition to other words and terms defined elsewhere in this Agreement, the following words and
terms shall have the following meanings, respectively, unless the context otherwise clearly requires:

 

“Affiliate”
shall mean any Person which directly or indirectly controls, or is controlled by, or is under common control with, Borrower, and
for each individual who is an Affiliate within the meaning of the foregoing, any other individual related to such Affiliate by
consanguinity within the third degree or in a step or adoptive relationship within such third degree or related by affinity with
such Affiliate or any such individual and any Person directly or indirectly controlled by any of the foregoing. The term “control”
means the possession, directly or indirectly, or the power to direct or cause the direction of the management or policies of a
Person, whether through the ownership of voting securities or partnership interests, by contract or otherwise.

 

“Agreement”
shall mean this Line of Credit Agreement, as amended, modified or supplemented from time to time.

 

    	 	 	 

     

    

 

Shepherd’s
Finance, LLC

Line
of Credit Agreement

$4,000,000

 

“Business
Day” shall mean any day other than a Saturday, Sunday, public holiday under the laws of the State of Florida or other day
on which banking institutions are authorized or obligated to close in Morgantown, West Virginia.

 

“Closing”
shall mean the satisfaction of all requirements set forth in this Agreement by the Borrower, including those set forth in Article
IV hereof.

 

“Closing
Date” shall mean the date of Closing.

 

“Code”
shall mean the Internal Revenue Code of 1986 as amended along with rules, regulations, decisions and other official interpretations
in connection therewith.

 

“Collateral
Assignment of Notes and Documents” shall mean that certain master assignment of the notes and all related documents pertaining
to the Collateral Loans given by Borrower to Lender as collateral as required by Section 4.03 hereof.

 

“Collateral
Loan” or “Collateral Loans” shall mean those construction loans made by Borrower in compliance with its loan
policies that do not exceed the amount of $600,000, do not exceed an aggregate of $2,000,000 to any one entity or
person, and are not more than one year old, which from time to time pledged to secure the Line of Credit and otherwise satisfy
the terms and conditions set forth in Sections 2.04, 4.03 and 4.04 herein. Notwithstanding the limits set forth hereinabove, in
the event a loan pledged exceeds $600,000, only $600,000 shall be used to calculate the amount pledged pursuant to Section 2.04.(a)(ii).
(i.e. if a loan amount is $736,000, only 67% of $600,000 will be added to the aggregate amount pledged).

 

“Collateral
Property Disposition” shall mean the foreclosure, transfer or other disposition of property securing a Collateral Loan,
or another event obligating Borrower to release a document or security instrument securing a Collateral Loan.

 

“Custodian”
shall mean R. Scott Summers, P.L.L.C., having an office at 69 Clay Street, Suite 201, Morgantown, WV 26505.

 

“Debt”
shall mean collectively (A) all Indebtedness, whether of principal, interest, fees, expenses or otherwise, of Borrower to Lender,
whether now existing or hereafter incurred including, but not limited to, future loans and advances, if any, under this Agreement,
and the Loan Documents, as the same may from time to time be amended, together with any and all extensions, renewals, refinancings
or refundings thereof in whole or in part; (B) all other obligations for the repayment of borrowed money, whether of principal,
interest, fees, expenses or otherwise, of Borrower to Lender, now existing or hereafter incurred, whether under letters or advances
of credit, lines of credit, other financing arrangements or otherwise (including, but not limited to, any obligations arising
as a result of any overdrafts), whether or not related to this Agreement or the Note, whether or not contemplated by Lender or
Borrower on the date hereof and whether direct, indirect, matured or contingent, joint or several, or otherwise, together with
any and all extensions, renewals, refinancings or refundings thereof in whole or in part; (C) all costs and expenses including,
without limitation, to the extent permitted by law, reasonable attorneys’ fees and legal expenses, incurred by Lender in
the collection of any of the Indebtedness referred to in clauses (A) or (B) above, and amounts due and owing to Lender under this
Agreement; and (D) any advances made by Lender for the maintenance, preservation, protection or enforcement of, or realization
upon, any property or assets now or hereafter made subject to a mortgage, pledge, lien or security interest granted pursuant hereto
or pursuant to this Agreement, or the Loan Documents or pursuant to any agreement, instrument or note relating to any of the Debt
including, without limitation, advances for taxes, insurance, repairs and the like.

 

    	 	2	 

     

    

 

Shepherd’s
Finance, LLC

Line
of Credit Agreement

$4,000,000

 

“Event
of Default” shall mean any of the Events of Default described in Section 7.01.

 

“Expiration
Date” shall mean FIFTEEN (15) MONTHS from the date hereof, unless extended and renewed as required and provided by Section
2.01(b) hereof.

 

“Law”
shall mean any law (including common law), constitution, statute, treaty, regulation, rule, ordinance, order, injunction, writ,
decree or award of any Official Body.

 

“Lien”
shall mean any mortgage, deed of trust, pledge, lien, security interest, charge or other encumbrance or security arrangement of
any nature whatsoever including, but not limited to, any conditional sale or title retention arrangement, and any assignment,
deposit arrangement or lease intended as, or having the effect of, security.

 

“Loan”
or “Loans” shall mean the loans, represented by Loan Advances, made by Lender to Borrower or to Borrower’s beneficiary
pursuant to the Line of Credit, and as otherwise advanced for the benefit of Borrower under this Agreement and as further set
forth in Section 2.01 hereof.

 

“Loan
Account” shall mean that as set forth in Section 2.10 hereof.

 

“Loan
Advances” shall mean advances on account of the Note made by the Lender from time to time pursuant to this Agreement.

 

“Loan
Document” or “Loan Documents” shall mean singularly or collectively, as the context may require, (i) this Agreement,
(ii) the Note, (iii) the Collateral Assignment of Notes and Documents, and (iv) any and all other documents, instruments, certificates
and agreements executed and/or delivered in connection with this Agreement, as any of they may be amended, modified, extended
or supplemented from time to time.

 

“Note”
shall mean the promissory note of Borrower executed and delivered to Lender under this Agreement, or any note executed and delivered
pursuant to this Agreement, together with all extensions, renewals, refinancings or refundings in whole or part and as further
set forth in Section 2.02 hereof.

 

    	 	3	 

     

    

 

Shepherd’s
Finance, LLC

Line
of Credit Agreement

$4,000,000

 

“Official
Body” shall mean any government or political subdivision or any agency, authority, bureau, central Lender, commission, department
or instrumentality of either, or any court, tribunal, grand jury or arbitrator, in each case whether foreign or domestic.

 

“Person”
shall mean an individual, corporation, partnership, limited partnership, limited liability company, joint venture, trust, or unincorporated
organization, or a government or any agency or political subdivision thereof.

 

“Potential
Default” shall mean any event or condition which with notice or passage of time or any combination of the foregoing would
constitute an Event of Default.

 

“Request
for Advance” shall mean a statement of the Borrower, in a form acceptable to Lender, setting forth the amount of the Loan
Advance being requested and containing such other information as is required by Lender and by Section 2.04 hereof.

 

“UCC”
shall mean the Uniform Commercial Code that is in effect on the date of this Agreement and as amended from time to time, of the
state or states having jurisdiction with respect to all or any portion of the collateral granted or assigned to Lender from time
to time under or in connection with this Agreement and the other Loan Documents.

 

ARTICLE
II

THE
LINE OF CREDIT

 

2.01.
Commitment.

 

(a)       The
Line of Credit. Subject to the terms and conditions and relying upon the representations and warranties in this Agreement
and the other Loan Documents, Lender agrees to make a revolving line of credit available to Borrower in the aggregate original
principal amount not to exceed FOUR MILLION and 00/100 DOLLARS ($4,000,000.00) (“Line of Credit”) at the Closing,
the proceeds of which will be advanced to Borrower from time to time during the period commencing on the date of Closing and ending
eleven months from the date hereof, in accordance with and subject to the conditions, requirements and limitations set forth in
this Agreement. Upon repayment of any amount of principal or interest on the Line of Credit by Borrower, Borrower may reborrow
hereunder. Reborrowing privileges may be suspended by Lender prior to the Expiration Date if an Event of Default or Potential
Default exists.

 

(b)       Term
of Agreement. Lender’s commitments under this Agreement will expire on the then current Expiration Date, unless Lender,
after a review of Borrower’s performance under this Agreement, elects to renew its commitments for one or more additional
FIFTEEN (15) MONTH periods. IN THE EVENT LENDER ELECTS NOT TO RENEW THIS AGREEMENT, LENDER MUST GIVE WRITTEN NOTICE
TO BORROWER AT LEAST 120 DAYS BEFORE THE EXPIRATION DATE OF THE THEN CURRENT TERM. If no notice is given at least ONE
HUNDRED TWENTY (120) DAYS before the Expiration Date of the then current term, this Agreement will be renewed and the Expiration
Date shall be automatically extended an additional FIFTEEN (15) MONTHS, on the same terms and conditions hereof. However, Borrower’s
representations, warranties and agreements shall remain in full force and effect so long as any Debt is outstanding. Borrower
shall have the right to terminate the line of credit if Borrower gives Lender Notice of its intention to terminate the line of
credit at least SIXTY (60) DAYS prior to the original expiration or any renewal thereof.

 

    	 	4	 

     

    

 

Shepherd’s
Finance, LLC

Line
of Credit Agreement

$4,000,000

 

2.02.       Note.
The obligation of Borrower to repay the unpaid principal amount of the Line of Credit made to it by Lender, and to pay interest
thereon, shall be evidenced by the Note, dated of even date herewith. The executed Note shall be delivered by Borrower to Lender
at the Closing.

 

2.03.       Interest
Rate; Usury.

 

(a)       Interest
Rate. The unpaid principal amounts advanced on the Line of Credit shall bear interest for each day until due at a fixed rate
per annum (computed on the basis of a year of 360 days for actual days elapsed) for each day at NINE PERCENT (9%) (the “Rate”).

 

(b)       Interest
Rate Set by Law. In the event the rates of interest provided for in subsections (a) above are finally determined by any Official
Body to exceed the maximum rate of interest permitted by any applicable usury or similar Laws, or its application shall be suspended
and there shall be charged instead the maximum rate of interest permitted by such Laws. If any payment of interest or in the nature
of interest would cause the foregoing interest rate limitation to be exceeded, then such excess payment will be credited as a
payment of principal, unless Borrower notifies Lender in writing to return the excess payment to Borrower.

 

 2.04.        Loan Advances.

 

(a)       Request
for Advances under Line of Credit. Not less than 5 Business Days prior to the making of each Loan Advance, the Borrower shall
submit to Lender a Request for Advance and borrowing base certificate, a form of which is attached hereto as EXHIBIT A,
certifying and evidencing that the requested advance and then current amount outstanding under the Loan does not exceed the limits
set forth below, and shall have submitted to the Custodian the Notes and Documents, as defined and more particularly set forth
in the Collateral Assignment of Notes and Documents. The Lender shall not be required to make Loan Advances more frequently than
once each month and such monthly Loan Advance shall not be less than $100,000 and each receipt of the Loan Advance requested thereby
shall constitute a certification by the Borrower that the representations and warranties contained in Article III hereof are true
and correct on the date of such Request for Advance or such receipt, as the case may be. Loan Advances shall be made by the Lender
within 5 Business Days of receipt of a Request for Advance, provided such request is supported by the borrowing base certificate.
The amounts outstanding under the Line of Credit shall be the lesser of (i) $4,000,000 or (ii) 67% of the aggregate amount
outstanding on the Collateral Loans being pledged to secure the Line of Credit and shown on the borrowing base certificate, which
shall be provided monthly by Borrower to Lender with its payment of accrued interest. The individual Collateral Loans being pledged
to secure the Line of Credit may be substituted with other Collateral Loans or may be removed as collateral by the Borrower provided
the aggregate amount outstanding on the Collateral Loans being pledged to secure the Line of Credit is sufficient to meet the
minimum requirements set forth hereinabove.

 

    	 	5	 

     

    

 

Shepherd’s Finance, LLC

Line
of Credit Agreement

$4,000,000

 

(b)       Payment
of Loan Advances. Loan Advances shall be wired to the Borrower’s account as directed by Borrower.

 

2.05.       Principal
and Interests Payments. Commencing on the 1st day of the month following the first Loan Advance on the Line of
Credit and each month thereafter during the term of the Line of Credit, Borrower shall make monthly payments of interest in the
amount sufficient to pay the accrued interest on the Line of Credit. Loan Advances made pertaining to a Collateral Loan shall
be repaid as set forth in the Note.

 

2.06       Optional
Prepayments. Borrower shall have the right, at its option, to prepay the principal, interest or other amounts due from Borrower
under this Agreement or under the Note in whole or in part at any time.

 

2.07.       Payments.
All payments to be made in respect of principal, interest or other amounts due from Borrower under this Agreement or under the
Note shall be payable on or before 2:00 o’clock p.m., Jacksonville, Florida time, on the day when due without presentment,
demand, protest or notice of any kind, all of which are hereby expressly waived, and an action therefor shall immediately accrue.
Such payments shall be made to Lender at its address in U.S. dollar funds immediately available without setoff, counterclaim or
other deduction of any nature. All such payments shall be applied at the option of Lender to accrued and unpaid interest, outstanding
principal and other sums dues under this Agreement in such order as Lender, in its sole discretion, shall elect.

 

2.09.       Indemnity.
Borrower shall indemnify Lender against any loss or expense which Lender has sustained or incurred as a consequence of any default
by Borrower in the performance or observance of any covenant or condition contained in this Agreement, or under the Note including,
without limitation, any failure of Borrower to pay when due (by demand, upon maturity or otherwise) any principal, interest, commitment
fees or any other amount due hereunder or under any Note. If Lender sustains or incurs any such loss or out-of-pocket expense,
it shall from time to time notify Borrower of the amount determined in good faith by Lender (which determination shall be conclusive)
to be necessary to indemnify Lender for such loss or expense. Such amount shall be due and payable by Borrower to Lender ten (10)
Business Days after such notice is given and shall bear interest at the rate of the default rate set forth in the Note.

 

2.10.
Loan Account. Lender shall open and maintain on its books a loan account (the “Loan Account”) with respect
to repayments, prepayments, the computation and payment of interest, and the computation and final payment of all other amounts
due and sums paid to Lender hereunder. Except in the case of manifest error in computation, the Loan Account shall be conclusive
and binding on Borrower as to the amount at any time due to Lender from Borrower hereunder.

 

    	 	6	 

     

    

 

Shepherd’s
Finance, LLC

Line
of Credit Agreement

$4,000,000

 

2.11.       Collateral.
The Note and all obligations of Borrower hereunder shall be secured by the Collateral Assignment of Notes and Documents, and any
and all other Loan Documents executed and recorded with respect thereto.

 

ARTICLE
III

REPRESENTATIONS
AND WARRANTIES

 

Borrower
hereby represents and warrants to Lender that:

 

3.01.
Organization and Qualification. Borrower is a limited liability company duly organized, va1idly existing and in good standing
under the laws of its jurisdiction of organization, and is duly qualified or licensed to do business as a limited liability company,
and in good standing in all jurisdictions in which the ownership of its properties or the nature of its activities or both make
such qualification or licensing necessary.

 

3.02.       Authority;
Power to Carry on Business; Licenses. Borrower has the power and authority to execute, deliver and perform the Loan Documents
to which it is a party, to make the borrowing provided for herein, and to perform its respective obligations hereunder and under
the other Loan Documents. All such action has been duly and validly authorized by all necessary limited liability company proceedings
on its part. Borrower has all requisite power and authority to own and operate its properties and to carry on its business as
now conducted and as presently planned to be conducted. Borrower has all licenses, permits, consents and governmental approvals
or authorizations necessary to carry on its business as now conducted.

 

3.03.       Execution
and Binding Effect. The Loan Documents have been duly and validly executed and delivered by the parties thereto and, to the
extent they are a party thereto, constitute legal, valid and binding obligations of Borrower enforceable in accordance with the
terms hereof and thereof.

 

3.04.       Authorizations
and Filings. No authorization, consent, approval, license, exemption or other action by, and no registration, qualification,
designation, declaration or filing with, any Official Body is or will be necessary or advisable in connection with the execution
and delivery of the Loan Documents, the consummation of the transactions herein or therein contemplated, and the performance of
or compliance with the terms and conditions hereof or thereof.

 

3.05.       Absence
of Conflicts. Neither the execution and delivery of the Loan Documents, the consummation of the transactions herein or therein
contemplated, nor the performance of or compliance with the terms and conditions hereof or thereof will (a) violate any Law or
any regulation, order, writ, injunction, or decree of any court or governmental instrumentality or agency, (b) conflict with or
result in a breach of or a default under the limited partnership of Borrower or any agreement or instrument to which Borrower
is a party or by which its properties (now owned or hereafter acquired) may be subject or bound or, (c) result in the creation
or imposition of any Lien, charge or encumbrance upon any property (now owned or hereafter acquired) of Borrower.

 

    	 	7	 

     

    

 

Shepherd’s
Finance, LLC

Line
of Credit Agreement

$4,000,000

 

3.06.
       No Event of Default; Compliance with Instruments. No event has occurred and is
continuing and no condition exists which constitutes an Event of Default or Potential Default. Borrower is not in violation of
(i) any term of any limited liability company agreement nor (ii) any agreement or instrument to which it is a party or by which
it or any of its properties (now acquired or hereinafter acquired) may be subject or bound.

 

3.07.
       Litigation. There is no pending, contemplated or threatened proceeding by or
before any Official Body against or affecting Borrower which, if adversely decided, would have a material adverse effect on the
financial condition, assets, properties, management, operations or business of Borrower or on the ability of Borrower to perform
its obligations under the Loan Documents.

 

3.08.       Compliance
with Laws. The conduct by Borrower of its business as it is presently conducted does not violate any provision of any Law
or, if such conduct does not violate a Law, such violation would not, together with all other such violations, have a material
adverse effect on the financial condition or results of operations of Borrower, and Borrower has obtained all permits, licenses,
consents and approvals of all Official Bodies or other third parties, including all consents and approvals, if any, under the
Laws designed to protect the environment, which are required to conduct its business as it is presently conducted.

 

3.09.       Solvency.
After giving effect to the consummation of all the transactions contemplated hereby, Borrower (a) shall be able to pay its
debts as they become due, (b) shall have funds and capital sufficient to carry on its business and all businesses in which it
is about to engage and, (c) shall own property having a value both at fair valuation and at fair saleable value in the ordinary
course of Borrower’s business greater than the amount required to pay its debts as they become due. Borrower shall not be
rendered insolvent by the execution and delivery of this Agreement, the borrowing hereunder and/or the consummation of any transactions
contemplated herein.

 

3.10.       Accurate
and Complete Disclosure, Continuing Representations and Warranties. No representation or warranty made by Borrower under this
Agreement or any Loan Document, certificate, report, exhibit or document furnished by Borrower to Lender pursuant to or in connection
with this Agreement is false or misleading in any material respect (including by omission of material information necessary to
make such representation, warranty or statement not misleading). Borrower has disclosed to Lender in writing every fact which
materially and adversely affects, or would materially and adversely affect, the financial condition, assets, properties, management,
operations or business of Borrower or the ability of Borrower to perform its obligations under the Loan Documents. The representations
and warranties are to survive the delivery of the Loan Documents and the making of the Loan Advances hereunder until the Note
is paid in full and released.

 

    	 	8	 

     

    

 

Shepherd’s
Finance, LLC

Line
of Credit Agreement

$4,000,000

 

ARTICLE
IV

CONDITIONS
OF LENDING

 

The
obligation of Lender to enter into this Agreement and to make any Loan hereunder is subject to the accuracy, as of the date hereof,
of the representations and warranties contained in the Loan Documents, to the performance by Borrower of its obligations to be
performed hereunder and thereunder on or before the Closing Date, and to the satisfaction of the following further conditions:

 

4.01.       Representations
and Warranties, Events of Default and Potential Defaults. The representations and warranties contained in Article III shall
be true on and as of the date of Closing and each Loan Advance, with the same effect as though made on and as of such date. On
the date of the Closing, no Event of Default and no Potential Default shall have occurred and be continuing or exist.

 

4.02.       Loan
Documents. On the Closing Date, the Loan Documents shall have been executed and delivered to Lender and shall be in effect
and all filings and recordings contemplated thereby shall have been made.

 

4.03.       Collateral
Assignment of Notes and Documents. There shall have been executed and delivered to Lender the Collateral Assignment of Notes
and Documents pursuant to which Borrower shall have assigned, with recourse, and granted to Lender a first lien security interests
under the UCC, all of the notes, security instruments and related documents evidencing, securing or otherwise pertaining to the
Collateral Loans on which a Loan Advance is requested by Borrower to be made or has been made, which will, among other things,
require Borrower to forward to the Custodian the original Collateral Loan note and related documents with the initial Request
for Advance on the Line of Credit in regard to such note, but will not require the recording of the assignment of the recorded
instrument securing such note until an Event of Default exists.

 

4.04.       Borrower
Lending Policies. Attached hereto as EXHIBIT B is a copy of Borrower’s credit policies and underwriting criteria
pertaining to the Collateral Loans, and Borrower hereby agrees that the same will be adhered to and followed when making such
Collateral Loans and not be modified without prior notice to the Lender.

 

ARTICLE
V

AFFIRMATIVE
COVENANTS

 

Borrower
covenants and agrees with Lender as follows:

 

5.01.       Reporting
and Information Requirements.

 

(a)       Notice
of Event of Default. Promptly upon becoming aware of any Event of Default or Potential Default, Borrower shall give Lender
notice thereof, together with a written statement of Borrower setting forth the details thereof and any action taken or contemplated
to be taken by Borrower.

 

    	 	9	 

     

    

 

Shepherd’s
Finance, LLC

Line
of Credit Agreement

$4,000,000

 

(b)       Notice
of Material Adverse Change. Promptly upon becoming aware thereof, Borrower shall give Lender notice with respect to any material
adverse change in the financial condition, assets, properties, management, operations or business of Borrower.

 

(c)       Notice
of Proceedings. Promptly upon becoming aware thereof, Borrower shall give Lender notice of the commencement, existence or
threat of all proceedings by or before any Official Body against or affecting Borrower which, if adversely decided, would have
an adverse effect on the financial condition, assets, properties, management, operations or business of Borrower.

 

5.02.
       Compliance with Laws. Borrower shall comply with all applicable Laws, in all
material respects.

 

5.03.       Continuation
of Business. Borrower shall continue to engage in the business and activities that it is presently engaged in.

 

5.04.       Preservation
of Existence. Borrower shall maintain its limited liability company existence, rights and franchises in full force and effect
in its jurisdictions of organization. Borrower shall qualify and remain qualified as a foreign limited liability company in each
jurisdiction in which failure to receive or retain such qualification would have a material adverse effect on the financial condition,
assets, properties, management, operations or business of Borrower.

 

5.05       Borrower
Lending Policies. Borrower shall make and service the Collateral Loans in a commercially reasonable manner. Borrower shall
notify Lender immediately if Borrower fails to comply with the terms and conditions of its lending policies.

 

ARTICLE
VI

DEFAULTS

 

6.01.
Events of Default. An Event of Default shall mean the occurrence or existence of one or more of the following events or
conditions (whatever the reason for such Event of Default and whether voluntary, involuntary or effected by operation of law):

 

(a)       Borrower
shall fail to pay when due principal or interest on the Note, any amount payable pursuant to this Agreement or any other amount
due hereunder or under any agreement with Lender, and such default shall continue ten (10) consecutive days; or

 

(b)       Any
representation or warranty made by Borrower under this Agreement or the Loan Documents or any statement made by Borrower in any
certificate, report, exhibit or document furnished or made available by Borrower to Lender pursuant to this Agreement or the other
Loan Documents shall prove to have been false or misleading in any material respect as of the time when made; or

 

    	 	10	 

     

    

 

Shepherd’s
Finance, LLC

Line
of Credit Agreement

$4,000,000

 

(c)       
Borrower shall default in the performance or observance of any covenant contained in Article V hereof and such default shall continue
thirty (30) consecutive days; or

 

(d)       A
proceeding shall have been instituted in respect of Borrower:

 

(i)       seeking
to have an order for relief entered in respect of any Borrower or seeking a declaration or entailing a finding that Borrower is
insolvent or a similar declaration or finding, or seeking dissolution, winding-up, charter revocation or forfeiture, liquidation,
reorganization, arrangement, adjustment, composition or other similar relief with respect to Borrower, its assets or its debts
under any law relating to bankruptcy, insolvency, relief of debtors or protection of creditors, termination of legal entities
or any other similar law now or hereafter in effect, or

 

(ii)       seeking
appointment of a receiver, trustee, custodian, liquidator, assignee, sequestrator or other similar official for Borrower or all
or any substantial part of its property; or

 

(iii)       any
such proceedings shall result in the entry, making or grant of any such order for relief, declaration, funding, relief, or appointment,
or such proceeding shall remain undismissed and unstayed for a period of thirty (30) days or more; or

 

(e)       Borrower
shall become insolvent, shall become generally unable to pay its debts as they become due, shall voluntarily suspend transaction
of its business, shall make a general assignment for the benefit of creditors, shall institute a proceeding described in Section
7.01j(i) or shall consent to any such order for relief, declaration, finding or relief described therein, shall institute a proceeding
described in Section 7.01j(ii), shall not have Dan Wallach as its Chief Executive Officer, shall consent to any such appointment
or to the taking of possession by any such official of all or any substantial part of its property whether or not any proceeding
is instituted, shall dissolve, wind-up or liquidate itself or any substantial part of its property, or the current owners of the
Borrower shall sell or otherwise transfer more than 50% of their current ownership interests in Borrower, or shall take any action
in furtherance of any of the foregoing.

 

6.02.       Consequences
of an Event of Default. Lender may demand the unpaid principal amount of the Note, interest accrued thereon and all other
amounts owing by Borrower hereunder or under the Note or other Loan Documents to be immediately due and payable without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly waived, and an action therefor shall immediately
accrue.

 

6.03.       Non-Assumption
of Liability. Nothing herein contained shall relieve Borrower from performing any covenant, agreement or obligation on the
part of Borrower to be performed under or in respect to any of the Collateral (including rights to the Purchased Loans) or from
any liability to any party or parties having an interest therein or impose any liability on Lender for the acts or omissions of
Borrower in connection with any of the Collateral. Lender shall not assume or become liable for, nor shall it be deemed or construed
to have assumed or become liable for, any obligation of Borrower with respect to any of the Collateral, or otherwise, by reason
of the grant to Lender of security interests in the Collateral.

 

    	 	11	 

     

    

 

Shepherd’s
Finance, LLC

Line
of Credit Agreement

$4,000,000

 

ARTICLE
VII

MISCELLANEOUS

 

7.01.       Business
Days. Except as otherwise provided herein, whenever any payment or action to be made or taken hereunder or under the Note
shall be stated to be due on a day which is not a Business Day, such payment or action shall be made or taken on the next following
Business Day and such extension of time shall be included in computing interest or fees, if any, in connection with such payment
or action.

 

7.02.       Records.
The unpaid principal amount of the Note, the unpaid interest accrued thereon, the interest rate or rates applicable to such unpaid
principal amount, the duration of such applicability and the accrued and unpaid commitment fee shall at all times be ascertained
from the records of Lender which shall be conclusive absent manifest error.

 

7.03.       Amendments
and Waivers. Lender and Borrower, acting together, may from time to time enter into agreements amending, modifying or supplementing
this Agreement or the Note or any other documents or instruments pursuant to or in connection herewith or changing the rights
of Lender or of Borrower hereunder or thereunder, and Lender may from time to time grant waivers or consents to a departure from
the due performance of the obligations of Borrower hereunder or thereunder. Any such agreement, waiver or consent must be in writing
and shall be effective only to the extent specifically set forth in such writing. In the case of any such waiver or consent relating
to any provision hereof, any Event of Default or Potential Default so waived or consented to shall be deemed to be cured and not
continuing, but no such waiver or consent shall extend to any other or subsequent Event of Default or Potential Default or impair
any right consequent thereto.

 

7.04.       No
Implied Waiver, Cumulative Remedies. No course of dealing and no delay or failure of Lender in exercising any right, power
or privilege under this Agreement, the Note, the Loan Documents or any other documents or instruments pursuant to or in connection
herewith shall affect any other or further exercise thereof or exercise of any other right, power or privilege except as and to
the extent that the assertion of any such right, power or privilege shall be barred by an applicable statute of limitations; nor
shall any single or partial exercise of any such right, power or privilege or any abandonment or discontinuance of steps to enforce
such a right, power or privilege preclude any other exercise thereof or of any other right, power or privilege. The rights and
remedies of Lender under this Agreement, the Note or any other documents or instruments pursuant to or in connection herewith
are cumulative and not exclusive of any rights or remedies which Lender would otherwise have.

 

    	 	12	 

     

    

 

Shepherd’s
Finance, LLC

Line
of Credit Agreement

$4,000,000

 

7.05.       
Notices. All notices, requests, demands, directions and other communications (collectively “notices”) under
the provisions of this Agreement or the Note shall be in writing (including telexed communication) unless otherwise expressly
permitted hereunder and shall be sent by first-class or first-class express mail, or by telex or email, with confirmation in writing
if mailed first-class, in all cases with charges prepaid, and any such properly given notice shall be effective when received.
All notices shall be sent to the party in question at the address stated in Section 1.01 or in accordance with the last unrevoked
written direction from such party to the other parties.

 

7.06.       Expenses;
Taxes, Attorneys’ Fees. Borrower agrees to pay or cause to be paid and to save Lender harmless against liability for
the payment of all reasonable out-of-pocket expenses including, but not limited to, fees and expenses of counsel for Lender, incurred
by Lender from time to time (i) arising in connection with the preparation, execution, delivery and performance of this Agreement,
the Note, and any documents, instruments or transactions pursuant to or in connection herewith, (ii) relating to any requested
amendments, waivers or consents to this Agreement, the Note or any such documents or instruments and, (iii) arising in connection
with Lender’s enforcement or preservation of rights under this Agreement the Note or any such documents or instruments including,
but not limited to, such expenses as may be incurred by Lender in the collection of an outstanding Note. Borrower agrees to pay
all stamp, document, transfer, recording or filing taxes or fees and similar impositions now or hereafter determined by Lender
to be payable in connection with this Agreement, the Note or any other documents, instruments or transactions pursuant to or in
connection herewith, and Borrower agrees to save Lender harmless from and against any and all present or future claims, liabilities
or losses with respect to or resulting from any omission to pay or delay in paying any such taxes, fees or impositions. In the
event of a determination adversely to Borrower of any action at law or suit in equity in relation to this Agreement, the Note
or any Loan Document Borrower will pay, in addition to all other sums which Borrower may be required to pay, a reasonable sum
for attorney’s fees incurred by Lender or the holder of such Note in connection with such action or suit. All payments due
from Borrower under this Section 8.06 shall be added to and become part of the Note until paid in full.

 

7.07.       Severability.
The provisions of this Agreement are intended to be severable. If any provision of this Agreement shall be held invalid or unenforceable
in whole or in part in any jurisdiction such provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity
or unenforceability without in any manner affecting the validity or enforceability thereof in any other jurisdiction or the remaining
provisions hereof in any jurisdiction.

 

7.08.       Governing
Law. This Agreement shall be deemed to be a contract under the laws of the State of Florida, and for all purposes shall be
governed by and construed and enforced in accordance with the laws of said State, without regard to the principles of conflicts
of laws thereof.

 

7.09.       Prior
Understandings. This Agreement supersedes all prior understandings and agreements, whether written or oral, among the parties
relating to the transactions provided for herein.

 

    	 	13	 

     

    

 

Shepherd’s
Finance, LLC

Line
of Credit Agreement

$4,000,000

 

7.10.       Duration;
Survival. All representations and warranties of Borrower contained herein or made in connection herewith shall survive the
making of and shall not be waived by the execution and delivery of this Agreement or the Note, any investigation by Lender, or
the making of any Loan and Lender may hereby rely upon same. Notwithstanding termination of this Agreement or an Event of Default,
all covenants and agreements of Borrower shall continue in full force and effect from an after the date of this Agreement so long
as it may borrow hereunder and until payment in full of the Note, interest thereon, commitment fees and all other obligations
of Borrower under this Agreement or the Note. Without limitation, it is understood that all obligations of Borrower to make payments
to or indemnify Lender shall survive the payment in full of the Note and of all other obligations of Borrower thereunder and hereunder.

 

7.11.       
Counterparts. This Agreement may be executed in any number of counterparts and

by
the different parties hereto on separate counterparts each of which, when so executed, shall be deemed an original, but all such
counterparts shall constitute but one and the same instrument.

 

7.12       
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of Lender, Borrower and its successors
and assigns. Except to the extent otherwise required by the context of this Agreement, the word “Lender” where used
in this Agreement shall mean and include any holder of a Note originally issued to Lender, and each such holder of a Note shall
be bound by and have the benefits of this Agreement the same as if such holder had been a signatory hereto.

 

IN
WITNESS WHEREOF, the parties, have caused this Agreement to be duly and properly executed as of the date first above written.

 

	 	Borrower:
	 	 
	 	SHEPHERD’S
    FINANCE, LLC
	 	 	 
	 	By:	/s/
    Daniel M. Wallach
	 	 	Daniel
    M. Wallach
	 	Its:	Chief
    Executive Officer

 

	 	Lender:
	 	 
	 	/s/
    Paul Swanson
	 	PAUL
    SWANSON

 

    	 	14	 

     

    

 

Shepherd’s
Finance, LLC

Line
of Credit Agreement

$4,000,000

 

STATE
OF FLORIDA:

COUNTY
OF DUVAL:

 

The
foregoing instrument was acknowledged before me this 23rd day of October, 2017, by DANIEL M. WALLACH, the CHIEF EXECUTIVE OFFICER
of SHEPHERD’S FINANCE, LLC, a Delaware limited liability company, for and on behalf of said limited liability company.

 

My
commission expires: 3/7/2019.

 

	 	{Seal}	/s/
    Shannon R. Lee
	 	 	NOTARY
    PUBLIC

 

STATE
OF FLORIDA:

COUNTY
OF PALM BEACH:

 

The
foregoing instrument was acknowledged before me this 24th day of October, 2017, by PAUL SWANSON.

 

My
commission expires: 12/3/2018.

 

	 	{Seal}	/s/
    Jean M. Velez
	 	 	NOTARY
    PUBLIC

 

    	 	15

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