Document:

Number: PUYINBAORONG2014003

 

Financing Limit Agreement

 

[English Translation]

 

Company: Hebei Baoding Orient Paper Milling
Co., Ltd. (hereinafter referred to as Client)

Main Business Address: Wuji Village, Xushui
County

Contact Person: Zhenyong Liu

 

Bank: Shanghai Pudong Development Bank Inc
Baoding-Branch (hereinafter referred to as Financing Bank)

Main Business Address: No.429, South of Chaoyang
Street, Baoding City

Contact Person: Changlin Ge

 

The agreements entered into by both parties
on the basis of equality and mutual benefit through friendly negotiation in accordance with the relevant laws and regulations as
follows:

 

Part  I General Conditions and Terms

 

1. Agreement: The content of any document
signed by Client and Financing Bank during the terms of limit using, include Limit Changing Agreement (the form refers to Exhibit
I) and the affiliated financing documents are the part of this Agreement, and shall be read with this Agreement.

 

2. Limit: For the purpose of this Agreement,
the use terms of the limit refer to the terms specified in the Financing Limit List (Part Two of this Agreement) or the terms listed
in any valid Limit Changing Agreement signed by Client with Financing Bank, first choose the later signer. Client shall apply the
financing use limit to Financing Bank within the use terms of the limit. Financing Bank can refuse the application beyond the use
terms of the limit Client provided whether financing limit has been used out.

 

Client shall pay the commitment fee according
to the rate and payment method under the Financing Limit List in line with the financing limit obtained by this Agreement.

 

3. Limit Changing: Subject to the Financing
Limit List if the conditions and terms are inconsistent with the Financing Limit List (included the changing by Client and Financing
Bank on financing limit according to Limit Changing Agreement).The business involved in this affiliated financing document shall
be subject to this affiliated financing document if the regulations of any affiliated financing document signed by Client and Financing
Bank within the use terms of the limit is inconsistent with this Agreement.

 

Notwithstanding the foregoing, Financing
Bank has the right to inform Client that the financing under any affiliated financing document is acceleration of maturity for
the need to ensure the safety of the creditor when it is necessary, Client shall pay back the financing amount immediately in the
case of informing the financing is acceleration of maturity; Client shall complement the cash deposit immediately to
100% for the foreign letter of credit, letter of guarantee/standby letter of credit and bankers' acceptance bill set by Financing
Bank according to the application of Client.

 

    	 

    	 

    

 

4. Financing: Client can apply credit
financing (collectively referred as to Financing) to Financing Bank according to the regulation under this Agreement and any affiliated
financing document on the financing limit and within terms, the specific applicable financing varieties are subject to the regulation
under the Financing Limit List. The commitments under this Agreement Financing Bank made to the financing limit consist of revocable
commitments and irrevocable commitments, Financing Bank can (but is not obligated to) provide financing to Client
for revocable commitments; Financing Bank must fulfill the commitments under this Agreement in the case meeting the relevant conditions
listed in the Financing Limit List (the commercial terms in Part Two under this Agreement) or the specific business agreed by both
parties for the irrevocable commitments. Client shall pay the commitment fee under this Agreement to Financing Bank, that is commitment
fee=unused limit*(year) commitment fee rate. Financing Bank has no obligation to return the commitment fee paid by Client if the
limit unused or used partially during the limit use term or this Agreement is terminated early.

 

5. Affiliated Financing Documents:
For the purpose of this Agreement, the affiliated financing documents signed by Client, included but not limited to:

 

(1) Refer to the Working Capital Loan Agreement,
Fixed Assets Loan Agreement and any other loan document maybe signed by Client for the loan;

 

(2) Refer to Discounted Bills Agreement and
any other document maybe signed by Client for the discounted bills;

 

(3) Refer to Commercial Paper Premium Subsidies
Agreement and any other document maybe signed by Client for the commercial paper premium subsidies

 

(4) Refer to Factoring Financing
Application and any other document maybe signed by Client for the factoring financing;

 

(5) Refer
to Credit Outward Negotiation, Documentary Collection Negotiation Agreement and any other document maybe signed by Client for the
credit outward negotiation (included the domestic credit ), documentary collection negotiation;

 

(6) Refer to Inward Bills Purchased under
LC Agreement and any other document maybe signed by Client for the Inward Bills Purchased under LC;

 

(7) Refer to Packing Credit Agreement and
any other document maybe signed by Client for the packing credit;

 

(8) Refer to Open Credit Agreement and
any other document maybe signed by Client for opening the letter of credit;

 

(9) Refer to Open Guarantee / Standby Credit
Agreement for opening guarantee / standby credit;

 

(10) Refer to Open Bankers' Acceptance
Bill Agreement and any other document maybe signed by Client for opening Bankers' Acceptance Bill;

 

(11) Other financing documents signed by
Client with Financing Bank.

 

Financing Bank will issue the financing
amount to Client under the conditions of this Agreement or the affiliated financing documents and/or issue commitments with the
requirements of Client in the case meeting the requirements of this Agreement and Financing Bank for the relevant use application
by Client. Client shall not withdraw and revise the Financing Application/Agreement signed or submit, otherwise Client shall pay
the cost, expense and loss caused by withdrawing or revising the Application/Agreement to Financing Bank.

 

6. Submission of Documents: Client
ensures to submit the following documents or meet the relevant conditions before signing this Agreement or with the requirements
of Financing Bank:

 

(1) The update articles of company and
copies of business license of Client;

 

(2) To authorize Client to sign this Agreement
and the board resolution of the affiliated financing documents;

 

(3) The authorization of authorized representatives
and specimen signature of authorized agent of Client;

 

(4) All affiliated financing documents
signed legally by Client with the requirements of Financing Bank;

 

(5) The loan day specified by Client or
the open day to open Credit, letter of guarantee/standby letter of credit and bankers' acceptance bill is the business date of
Financing Bank;

 

(6) Other documents and/or conditions required
from time to time by Financing Bank.

 

7. Financing Limit Occupied refers
to the total of the financing amount issued anytime by Financing Bank to Client under the conditions of this Agreement the affiliated
financing documents and the amount unpaid by Client and the amount involved in the commitment issued outside with the requirements
of Client, but shall net of the amount paid by Client or guarantor of Client to Financing Bank by cash pledge (included cash deposit).
Unless otherwise agreed by both parties.

 

8. Circulation Client can continue
to apply to use the financing limit to Financing Bank within the limit use term under this Agreement for recovering the financing
limit occupied by the amount involved in the obligation fulfilled after fulfilling the obligation (included that paid the relevant
financing amount, supplement to100% cash deposit and Financing Bank is lifted the external payment obligation ) under this Agreement
and the affiliated financing documents are for the circulatory financing limit. The acyclic financing limit shall not be desterilized
once occupied unless agreed by Financing Bank. Financing Bank has the right to review the Client and guaranty every year unless
otherwise specified by this Agreement, Client can continue to use the financing limit next year through the revision of Financing
Bank; Financing Bank has the right to abolish the financing limit next year failed in the revision of Financing Bank, the financing
limit unused and paid in the future shall not be used anymore unless the affiliated financing documents taking into effect is not
be affected.

 

    	 

    	 

    

 

9. Security The precondition Client
apply for financing under this Agreement is this security document has been signed and came into force if the financing limit is
secured under this Agreement, the precondition Client apply for opening credit, letter of guarantee/standby letter of credit and
bankers' acceptance bill is the ratio of cash deposit has been paid full if it have requirements in the Financing Limit List. Client
shall add to the security or urge the guarantor to confirm the change and add to the security if Client applies for changing financing
limit caused the financing limit increase. Client shall ensure the relevant security is sustainable with the requirements of Financing
Bank if the financing limit can be used next year after revision by Financing Bank.

 

10. Tax Unless laws require
the Client must deduct related tax revenues when repaying the financing amount; otherwise the Client should pay the amount under
this Agreement in full and shall not make any deduction. If the Client must deduct related tax according to provisions of laws,
the Client should issue the duty-paid certificate to the Financing Bank within fifteen (15) days after deduction, and meanwhile
the Client should pay extra amount to the Financing Bank to make the amount received by the Financing Bank equal to the amount
without deduction.

 

11. Representations and Warranties
The Client makes the following representations and warranties, and such representations and warranties should be deemed to be repeatedly
made by the Client and be always effective when the Financing Bank provides financing to the Client under the provisions of this
Agreement and affiliated financing documents.

 

(1) The Client should be established according
to applicable laws, which is enterprise (public institution) legal person and other economic organization with independent legal
qualification, complete financial system and repayment ability and is legally entitled to enter into and perform this Agreement
and any documents related to this Agreement, and has taken any necessary corporate actions to make this Agreement and any documents
related to this Agreement legal, valid and enforceable;

 

(2) Signing of this Agreement and implementation
of obligations under this Agreement by the Client will not violate the signed any other contracts or documents, articles of incorporation,
any applicable laws, regulations and administrative orders, relevant documents, judgment and adjudication of authorities, and will
not conflict with any other obligations or arrangements borne by the Client;

 

(3) The Client and its shareholders and
affiliated companies don’t involve in any liquidation, bankruptcy, reforming, merger, acquisition, separation, recombination,
dissolution, closing, going out of business or similar legal procedures, and also don’t have any circumstances that may lead
to involvement of such legal procedures;

 

(4) The Client doesn’t involve in
any economic, civil, criminal, administrative judicial proceedings or similar arbitration procedures which may have great adverse
impact, and also doesn’t have any circumstances that may lead to involvement of such judicial procedures or similar arbitration
procedures;

 

(5) Legal representative, directors, supervisors
or other senior management personnel of the Client as well as any important assets of the Client don’t involve in any enforceable,
sealed up, confiscated, frozen, retained and supervisory measures, and also don’t have any circumstances that may lead to
involvement of such measures;

 

(6) The Client guarantees that all issued
financial statements (if any) comply with the provisions of applicable laws, and the statements truly, completely and justly reflect
its financial conditions; in the course of signing and implementing this Agreement by the Client, all materials, documents and
information about itself and guarantor provided to Financing Bank is true, valid, accurate and complete without any concealment
or omission;

 

(7) In the operation process, the Client
is strictly in compliance with applicable laws, carries out the business strictly based on the provisions of Client’s business
license or legally approved, and handles the annual inspection procedures on time;

 

(8) The Client has disclosed the important
facts and situations to the Financial Bank, which it has known or should know and whether the Financing Bank is decided to grant
credit under this Agreement;

 

(9) The Client guarantees that there are
no other circumstances or events that cause or may cause great adverse impact on the Client’s contractual capacity.

 

12. Commitment Issues Client makes
the following commitments, and such commitments should be deemed to be repeatedly made by the Client and be always effective when
the Financing Bank provides financing to the Client under the provisions of this Agreement and affiliated financing documents.

 

(1) The Client should strictly abide by
and fulfill all obligations in this Agreement and its affiliated financing agreement;

 

(2) Except as otherwise provided in this
Agreement or affiliated financing documents, the Client should, according to the provisions of this Agreement and affiliated financing
documents, timely repay the financing amount or advance payment or supply 100% margin under the requirement of Financing Bank;
the Client should handle, obtain and comply with all approval, authorization, registration and permission required by applicable
laws and regulations and maintain its effectiveness, so that it can legally sign and perform the obligations in this Agreement
and any documents related to this Agreement; if required by the Financing Bank, the Client should immediately issue relevant certificate;

 

    	 

    	 

    

 

 

(3) Within five (5) business days of the
Financing Bank after learning that it has involved in any economic, civil, criminal, administrative judicial procedures or similar
arbitration procedures that may have great adverse impact, or within five (5) business days of the Financing Bank after learning
that any of its important assets have involved in enforceable, sealed up, confiscated, frozen, retained and supervisory measures,
notify the Financing Bank in written and state the impact that has been brought and remedial measures that have been taken or are
planned to take in details;

 

(4) Without written consent of Financing
Bank, the Client shall not provide guarantee to a third party, which can produce great adverse impact on its financial conditions
or capacity to perform obligations under this Agreement;

 

(5) Without written consent of Financing
Bank, the Client shall not pay off other long-term debt in advance, and such settlement may have great adverse impact on the Client’s
capacity to perform obligations under this Agreement;

 

(6) Since the date of signing this Agreement,
before the completion of repayment of all debts under this Agreement and its affiliated financing documents, without written consent
of Financing Bank, the Client will not:

 

●
Make liquidation, reforming, bankruptcy, merger, acquisition, separation, recombination, dissolution, closing, going out of business
or similar legal procedures;

 

●
Sell, lease, gift, transfer or dispose any important assets in any other ways, except for daily operation needs;

 

●
Make any change to equity structure;

 

●
Sign a contract/agreement that has great adverse impact on the Client’s capacity to perform obligations under this Agreement
or bear obligations related to this impact.

 

(7) When guarantee under this Agreement
meets particular situation or has particular change, the Client should timely provide other guarantees approved by the Financing
Bank under the requirement of Financing Bank. The particular situations or particular changes include but are not limited to guarantor’s
production halts, going out of business, dissolution, suspending business for rectification, business license being revoked or
rescinded, application or being required to apply for reforming, bankruptcy, operation or financial conditions having great change,
involving in great judicial or arbitration cases, legal representative/person in charge litigation, arbitration or other enforcement
measures, collateral value’s reduction or probable reduction or being sealed up and other property preservation measures,
default activities under guarantee agreement and requirement to terminate guarantee agreement, etc.

 

(8) Required by Financing Bank, the Client
also should handle notarization with compulsory execution effect with notary organ approved by Financing Bank, and the Client voluntarily
accepts this compulsory execution.

 

(9) The Client should notify the Financing
Bank any events at any time that may affect its capacity to perform obligations under this Agreement and any documents related
to this Agreement.

 

(10) Special guarantee matters about group
clients (applicable to group clients).

 

If the Client in this Agreement is group
client, the Client promises hereby:

 

● The Client should timely report
related transaction of more than 10 percent of the net assets of the actual credit grantor, including: a. partner relationship
between parties; b. transactions and nature of transaction; c. amount or corresponding proportion; d. pricing policy (including
the transactions without amount or only having symbolic amount).

 

● If actual credit grantor has the
following circumstances, it shall be deemed as default by the Client under this Agreement, and the Financing Bank is entitled to
unilaterally decide to cancel unused credit of the Client and recover part or whole used credit or require the Client add to 100%
margin: a. provide false material or conceal important operating financial facts; b. without consent of Financing Bank, arbitrarily
change original purpose of the credit, divert the credit or use the bank credit to engage in illegal and violated transactions;
c. use false contract with related party for bank discount or pledge in notes receivable, accounts receivable and other creditor’s
rights without actual trade, to extract bank fund or credit; d. refuse to accept supervision and inspection of Financing Bank to
the credit fund’s using condition and relevant operating financial activities; e. appear great merger, acquisition and reorganization,
which Financing Bank thinks may affect credit safety; f. intentionally evade bank creditor’s rights through related party
transaction.

 

(11) The Client hereby confirms that, it
has fully understood and learnt the Financing Bank’s standpoint to object its employees seek any forms of benefit taking
advantages of their positions, and promises to avoid such situations in honest and fair principles, and will not privately provide
any forms of commission, cash gift, securities, valuables, all kinds of rewards, private cost subsidy, private tours, expensive
entertainment and other illegal profits to the staff of Financing Bank.

 

 

    	 

    	 

    

 

13. Cost and Expense Client shall bear
the relevant fee and tax according to the laws and regulation and this Agreement.

 

14. Interest
Penalty The interest penalty overdue and diversion and the collection rule of the financing under this Agreement shall be specified
in the Financing Limit List or the affiliated financing documents.

 

15. Exchange
Rate Conversion: Financing Bank has the right to convert the rate according to the relevant exchange rate determined by himself
if the financing currency is inconsistent with the financing limit currency when calculate any limit occupied. Financing Bank has
the right to request Client to payback the excess amount if the total of financing limit occupied under this Agreement is higher
than the above highest financing limit caused by exchange rate movement anytime. Financing Bank has the right to purchase foreign
currency to payback by the relevant exchange rate if the payment included the authorized repayment currency is inconsistent
with the financing currency, and Client shall bear the exchange rate risks.

 

16. Authorized
Repayment and Offset Client authorizes Financing Bank to use directly the amount in any account (whatever the currency is)
Client set in Shanghai Pudong Development Bank Inc. to pay the debt when Client has the debt due but not paid to Financing Bank
whether the debt belongs to this Agreement or the affiliated financing documents, and this authorizing is not be repealed, Financing
Bank can convert according to the relevant exchange rate determined by himself and Client shall bear the exchange rate risks if
involved the exchange rate conversion.

 

17. Debt Certificate Financing
Bank shall remain a set of account and voucher related to the business activity involved in this Agreement and the affiliated
financing documents on its accounting book under the consistent rule of business operation. Client approves the record related
to the accounting and voucher or other valid certification materials are the valid certification of Client debt except manifest
errors.

 

18. Transfer
Client shall not transfer any right and obligation under this Agreement. Financing Bank can transfer the right and obligation
to the third party under this Agreement anytime, and disclose any information related to this Agreement to the third party, included
any information Client and Client guarantor provided to Financing Bank for the purpose of this Agreement.

 

19. Information
Disclosure Client agrees: Financing Bank can disclose any information related to this Agreement to headquarter, embranchments,
affiliates and people employed by these institutions, at same time, the disclosure by Financing Bank belongs to approved disclosure
under any laws and regulation and supervision department, government agency and justice institutions unless
the disclosure approved in Item 18.

 

20. Default
Client violated any statement and guarantee under this Agreement or such statement and guarantee deemed to incorrect
and untrue, or misleading or disobedient, and/or Client violates or non-fulfills any commitment under this Agreement and/or Client
violates either rule of this Agreement and the affiliated financing documents, and/or Client has any situation maybe affect the
loan safety of Financing Bank, and/or guarantor violates the rule of any security document constitute the default Client to this
Agreement and the affiliated financing documents, Financing Bank can request Client to compensate for all losses included attorney
fees has the right (but no obligation) to take measures individually or simultaneously as follows:

 

(1) Adjust
or cancel the financing limit under this Agreement;

 

(2)
Announce all or partial debt under this Agreement and the affiliated financing documents is maturity ahead of time, and/or terminate
all or partial affiliated financing document, and request Client to payback all or partial financing principle and interest immediately.
Financing Bank can request Client to add to the amount of cash deposit, or transfer the deposit in the deposit account or the
settlement account to the cash deposit account for external payment or cash deposit maybe advanced in the future by Client for
the accepted bill or the opened credit, letter of guarantee/Standby Letter of credit by Financing Bank within
the limit use terms; Financing Bank has the right to request Client to repay advances immediately if advanced.

 

(3) Calculate
interest by the default interest rate of this Agreement or the affiliated financing documents and collect compound interest to
accrued interest.

 

(4) Deduct
the deposit of Client in any account of Financing Bank according to the rule of Item 16 of this Agreement.

 

21. Applicable Law and Jurisdictions
This Agreement is applicable to and interpreted in accordance with the law of People’s Republic of China
(the purpose of this Agreement excluded hereby the law of Hong Kong, Macao and Taiwan). All disputes in connection with this Agreement
shall be settled through friendly negotiation; if there is no agreement upon the negotiations, they shall institute
legal proceedings in people’s court in the locality of Financing Bank. During the dispute, both parties shall fulfill the
other terms without disputes.

 

22. Litigation delivery place The
Client confirms, for any litigations occurred under this Agreement, summons, notices and other judicial documents sent in litigation
process shall be deemed as delivery as long as sent to the address listed in the front of this Agreement, and the change of above
address shall be not effective to the Financing Bank without advance notification to the Financing Bank.

 

    	 

    	 

    

 

23. Notice The notice of
this Agreement from one party to the other should be sent to the address listed in the front of this Agreement, until one party
notified to change the address in written. As long as sent according to above address, it will be deemed as delivered at the following
date: for a letter, the seventh (7) business day of Financing Bank after sending the registered letter; for specially delivered,
the date of receipt by the recipient; for fax or e-mail, the delivery date of fax or e-mail. All notices, requirements or other
communications sent or delivered to the Financing Bank should be deemed as delivery when the Financing Bank is actually received.
All notices and requirements sent to the Financing Bank in fax or e-mail should be confirmed in the method of submitting face to
face or posting the original (stamped with official steal) to the Financing Bank.

 

24. Severability of terms Ineffectiveness,
illegality or non-compulsory execution of any terms in this Agreement or any affiliated financing documents will not affect the
effectiveness, legality or compulsory execution of other terms in this Agreement or any affiliated financing documents.

 

25. Grace Within valid period of
this Agreement, grace or delay to take actions by the Financing Bank to the Client’s any default or other activities shall
not damage, influence or restrict the Financing Bank’s rights or interests that should be enjoyed as creditor’s rights
on the basis of laws or this Agreement, also can’t be deemed as recognition of Financing Bank to the Client’s behavior
for violation of this Agreement, and even can’t be regarded as the Financing Bank’s abandonment to take actions for
the Client’s existing or future defaulted behaviors.

 

26. Relation between prior credit and
this Agreement Unless the parties otherwise provided, if there was an original credit agreement between the Client and Financing
Bank, since the effective date of this Agreement, if the specific business set forth in this credit agreement had outstanding amount,
it will be automatically included in this Agreement and directly occupy the credit limit under this Agreement. The Client promises
to get confirmation from guarantor of original credit agreement to continue to bear guarantee obligation under this Agreement.

 

27. Take Effect This Agreement shall
be effective after the Client’s legal representative or authorized agent signed (or sealed) and stamped with official seal
and Financing Bank’s legal representative/person in charge or authorized agent signed (or sealed) and stamped with official
seal (or special seal for contractual uses). Unless Financing Bank canceled all financing limit and the Client didn’t have
any financing or debt balance to the Financing Bank under this Agreement and all affiliated financing documents, otherwise this
Agreement will be always valid.

 

(Part I, End)

 

    	 

    	 

    

 

 

Part II Commercial Terms (Financing
Limit List)

 

	Client Name: Hebei Baoding Orient Paper Milling Co., Ltd.
	Description of Financing Limit
	Limit Amount (Currency)	RMB TWENTY Million Yuan Only	Using Date (mm/dd/year)	From March 3, 2014 to January 12, 2015
	Cycle way of limit	R Recyclable
 x  Non-recyclable 
	Commitment fee:	
        x  Financing
        commitment by Financing Bank under this Agreement is revocable, that is Financing Bank can (but without obligation) issue financing
        to the Client, and the commitment rate is:  _______

         

        x  In
        case of satisfying the limit using preconditions stipulated in this Agreement, financing commitment by Financing Bank under this
        Agreement is irrevocable, and the commitment rate is:  ___________

         

	Collection time and method of commitment fee	
        x  Collection
        time is the effected date of limit in this Limit List, and the collection method is ________ 

         

        x  Others
         __________________________

         

	Guarantor	Hebei Fangsheng Real Estate Development Co., Ltd.	Guaranty style	
        R Mortgage

         

         ̈ Pledge

         

         ̈ Guarantee

         

	Margin ratio of different business	x
 Premium subsidy   %;  x
 L/C   %;  R Bank Note 50 %;  x
 L/G/standby   %;  x
 Others   %
	Specific appropriate financing types and limit conditions (Please check √ in appropriate financing types, check   in inappropriate types)
	 	Appropriate financing types	Limit (amount and currency)	Interest rate/rate	Maximum duration for single business
	x  	Loans	 	 	 
	 	x  Working capital loans	 	 	 
	 	x  Fixed assets loans	 	 	 
	R	Trade financing	 	 	 
	 	x  Discount of commercial paper (including stipulated way of paying interest)	 	 	 
	 	x   Discount of bank note	 	 	 
	 	x  Premium subsidy of commercial paper (the Client is acceptor)	 	 	 
	 	x  Factoring financing	 	 	 
	 	x  L/C (including domestic letter) export documentary bill	 	 	 
	 	x  L/C import documentary credit	 	 	 
	 	x  Packing loan	 	 	 
	 	x  Export collection documentary credit	 	 	 
	 	x  L/C (including usance credit payment at sight)	 	 	 
	 	x  L/G (including standby L/C)	 	 	 
	 	R 
     Opening of bank acceptance bill	RMB Twenty Million Yuan Only	0.05%	Six months
	x  	x  Others	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

    	 

    	 

    

 

	
        Using preconditions of limit:

         

        (1) Client’s production and operation
        activities are normal and financing conditions are good, and operation state has no serious deterioration in recent three years;

         

        (2) Client has no default events which
        are stated in Financing Limit Agreement;

         

        (3) Relevant guarantee has been effectively
        implemented and security interest has been effectively set up (if any);

         

        (4) Client has provided a clear using plan
        for loan commitment limit;

         

        (5) Client has provided its situations
        and report data about production, operation and financial activities, and promised to timely provide and accept the supervision
        and inspection by the Financing Bank in validity of this Agreement;

         

        (6) To meet specific handling conditions
        for financing business;

         

        (7) Preconditions proposed by other financing
        banks:  

         

	
        Other agreed items:

         

        The Client learns and agrees the following
        contents: This Financing Limit Agreement is only an agreement of intent reached by Financing Bank and the Client against financing
        matters, which can be used to handle mortgage registration or counter guarantee procedures. Financing Bank shall not bear inevitable
        and irrevocable financing obligations to the Client just because of the signing of this Agreement. Financing Bank has the right
        to prudently examine and approve the application of using financing limit proposed by the Client according to current laws, regulations,
        regulatory policies as well as Financing Bank’s credit management policies and operating instructions of related business,
        and make a decision whether to provide financing to the Client. When the Financing Bank agreed to provide financing to the Client,
        both parties shall sign corresponding documents on single financing business.

         

	
        Special explanation:

         

        (1) Sum of all applicable financing types
        actually accounting for financing limit shall not exceed the maximum financing limit at any time. For the financing limit of a
        certain applicable financing type, if the Client wanted to use independently without mixed use with other applicable financing
        types, the limit of this applicable financing type should be identified separately.

         

        (2) If the mortgagor or pledgor is the
        Client itself, the guarantor should fill in “Myself” or name of the Client itself.

         

        (3) RMB interest rate is annual rate, and
        floating rate should indicate the floating period, fee rate can fill in single amount or ratio.

         

	This agreement is made in triplicate, with the Client holding one copy, Financing Bank holding one and registration department holding one copy, each of which has the same legal validity.

 

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(This page is signature page without text)

 

This agreement is signed by following parties
on March 3, 2014. The Client confirms that when signed this Agreement, both parties have made detailed explanation and discussion
against all terms without objections to all terms in this Agreement, and have an accurate understanding to the legal meaning of
related party’s rights and obligations and limitation of liability or exemption terms.

 

	
        Client (official seal) 

        Hebei Baoding Orient Paper Milling Co.,
        Ltd.

         
	
        Financing Bank (official seal
or special seal for contractual uses) 

        Shanghai Pudong Development Bank Inc, Baoding
        Branch

         

	
        Legal representative or authorized
agent (signature or seal) 

        /s/Zhenyong Liu

         
	
        Legal representative/person in
charge or authorized agent (signature or seal) 

        /s/Yajun ZhangEnterprise Loan Agreement

 

[English Translation]

 

Borrower: Hebei Baoding Orient Paper
Milling Co.,Ltd

 

Lender: Rural Credit Union of Xushui
County

 

Type of Loan: Medium and Long Term

 

Xushui  Union(bank)

 

July 5, 2013

 

 

 

    	 

    	 

    

 

Enterprise
Loan Agreement

 

(XU)NONGXINJIEZI[2013] No.22392013451516

 

Borrower (Party A): Hebei Baoding Orient
Paper Milling Co., Ltd. 

 

Legal Representative (Person in charge):
Zhenyong Liu

 

Address: Wuji Village, Xushui County
Zip Code: 072550

 

Lender (Party B): Rural Credit Union
of Xushui County

 

Legal Representative (Person in charge):
Shuqiang Han

 

Address: South of Shengyuan Street,
Xushui County Zip Code: 072550

 

Party A is hereby applying for a loan from
Party B, and Party B agrees to provide the loan to Party A. This Agreement is made in line with relevant laws and regulations and
through mutual discussion, and both parties shall abide.

 

Item I Amount of Loan

 

Party B granted (Currency) RMB 26,300,000yuan(SAY
RENMINBI TWENTY SIX MILLION AND THREE HUNDRED THOUSAND YUAN ONLY) of loan to Party A.

 

Item II Purpose of Loan

 

Party A applies for the loan for the purpose
of liquidity to purchase raw material, Party A shall not change the purpose of loan without the written consent of Party
B.

 

Item III Term of Loan

 

The term of loan in this Agreement is from
July 15, 2013 to July 14, 2018.

 

Subject to the date of actual granting
recorded on the loan note(due bill, similarly hereinafter )for the first time if the starting date of this agreement’s term
is different from the date of loan note or due bill, expiry date shall be adjusted accordingly.

 

The loan note and the due bill are integral
parts of this agreement, and shall have the same binding force as this agreement itself.

 

If Party A uses the loan by several times,
and the loan maturity shall be specified subject to this section.

 

Item IV Loan Interest Rate, Penalty Interest Rate,
Interest Accrual and Interest Settlement

 

1. Loan Interest Rate

 

The loan interest rate in this Agreement
is monthly interest rates, refer to the first one of the followings:

 

(1) Fixed rate: The loan interest rate
in this Agreement agreed by both parties is 7.2% monthly, which remains unchanged within the loan time limit;

 

(2) Floating rate:
The Loan Interest Rate on Value Date in this Agreement agreed by both parties is the benchmark interest rate published by the
People’s Bank of China __% (Upward or downward fluctuation) __%, rate is __‰ monthly, and after changes
with the adjustment of the People’s Bank of China rate, the sliding scale will not change and floats by (date/month/season/year).

 

The adjustment date is on the first day
of ____(date/month/season/year) after the rate published by the People’s Bank of China adjusts.

 

2. Penalty interest rate:

 

(1) Party A doesn’t use the loan
as agreed in the agreement, the penalty interest rate will be 100% of upward fluctuation of the loan rate, if the loan rate
is adjusted according to the second one of first item, meanwhile the penalty interest will be adjusted correspondingly according
to the adjusted loan interest and the upward fluctuation range above.

 

(2) The penalty interest of the overdue
loans in this agreement will be 50% of upward fluctuation of the lending rate, if the loan rate is adjusted according to
the second one of first item, meanwhile the penalty interest will be adjusted correspondingly according to the adjusted loan interest
and the upward fluctuation range above.

 

(3)If the overdue loan and defalcation
occur at the same time, the penalty interest and compounds interest shall be calculated according to the one which is more serious.

 

    	 

    	 

    

 

 

3. The value date in this article refers
to the date when the loan note or due bill initially granted transfer to Party A’s deposit accounts under this Agreement.

 

When initially grants the loan, Benchmark
Interest Rate refers to coterminous rate and the same loan interest rate promulgated by the People’s Bank of China on the
value date; after this, when the loan interest is adjusted accordance with the stipulations above, Benchmark Interest Rate refers
to coterminous rate and the same loan interest rate promulgated by the People’s Bank of China on the adjustment date. If
the People’s Bank of China does not announce coterminous rate and the same loan interest rate anymore, the penalty interest
refers to coterminous rate and the same loan interest rate accepted by the inter-bank or the general coterminous rate and the same
loan interest rate otherwise both parties have agreed on other arrangements.

 

4. Interest accrual:

 

(1)The loan interest rate is calculated
from the date when the loan transfers to Party A’s deposit accounts. The loan under this agreement is day to day loan, daily
interest rate=Monthly Interest Rate/30. If Party A cannot pay interest at interest date stipulated in this agreement, Party B will
collect the compound interest from next day.

 

(2) Calculate interest as agreed when settle
interests if implement fixed rate loan. Calculate interest under the settled rate for each float period if implement floating rate
loan; If there are rate floating for many times in a single period of interest settlement, first calculate interest rate for each
period, and then sum up the rates for floating periods and finally calculate the rate for this period of interest settlement.

 

5. Settle interests:

 

The interest of loan in this agreement
is settled in the following second manner:

 

(1). Settle interest monthly, expiry date
for interest is fixed on the 20th day of every month;

 

(2). Settle interests quarterly, expiry
date for interest is fixed on the 20th day of the last month of every quarter;

 

(3). Other manners _______.

 

Item V Issuance and Drawing
on of Loan

 

1. Preconditions of issuance: Party B has
an obligation to issuance the loan only if Party A constant meet the following conditions in addition to the act of abandoning
of Party B in whole or in part.

 

(1). Party A has finished approval, registration,
delivery, insurance and other legal formalities relating to the loan of this agreement;

 

(2). Security guarantee of this agreement
which meets the requirement of Party B has been carried into effect and remain in force;

 

(3). An account of withdrawals and payments
has been opened by Party A upon Party B’s requirements;

 

(4). Any event of default or any condition
contained in this Agreement that may endanger the safety of creditor's rights doesn’t occur to Party A;

 

(5). Laws and regulations, rules or relevant
authorities won’t prohibit and restrict Party B granting the loan in this agreement;

 

(6). Other conditions

__________________________________________________

 

2. Loan using plan:

 

Party A use the loan in the following
manner, no withdrawals earlier or later or drawdown without the written consent of Party B.

 

(1)  
________  Month-Day-Year Amount ___________________   

 

(2)  
________  Month-Day-Year Amount ___________________  

 

(3)   ________  Month-Day-Year Amount ___________________ 

 

(4)   ________  Month-Day-Year Amount ___________________ 

 

(5)   ________  Month-Day-Year Amount ___________________ 

 

(6)   ________  Month-Day-Year Amount ___________________ 

 

3. Open an account

 

(1) Party A shall open the following settlement
account and the loan granting or payment special account (if any) and specify the following capital collection account
at Party A on the date of this Agreement signing. Party A agrees Party B has the right to implement supervision to the following
accounts of Party A.

 

 

    	 

    	 

    

 

Settlement account: 

 

Bank name: Sales Department of Rural
Credit Union of Xushui

 

Account name: Hebei Baoding Orient Paper
Milling Co., Ltd

 

Account number: 223000122000034527

 

Loan granting or payment special account:

 

Bank name: Sales Department of Rural
Credit Union of Xushui

 

Account name: Hebei Baoding Orient Paper
Milling Co., Ltd

 

Account number: 223000122000034527

 

Capital collection account:

 

Bank name: Sales Department of Rural
Credit Union of Xushui

 

Account name: Hebei Baoding Orient Paper
Milling Co., Ltd

 

Account number: 223000122000034527

 

2. The settlement account and
the loan granting or payment special account is used to account the loan capital granting and payment Party A applied at
Party B. Party B shall pay the loan capital withdraw under this Agreement to the  settlement account and□loan
granting or the payment special account once Party A confirmed.

 

3.
Party A confirms the capital collection account is revenue account
and reserve account under this Agreement. The payment of the loan capital under this Agreement is transferred from the capital collection account.
The revenue cash flow or all cash flow of Party A shall come into the capital collection account. Party A shall provide
in time the income and expense of the capital of this account. Party B has the right to supervise on the capital collection account
and to identify the cause and take relevant measures when the capital flow of the capital collection account has abnormities.

 

Party A must ensure all of the capital
revenue of the project is paid into the capital collection account if the loan is project financing; the payment of the
capital revenue of the project shall meet the following conditions:

 

(1)._____________________________

 

(2)._____________________________

 

(3)._____________________________

 

Payment method adopts entrusted payment
in principle other than with the written consent of Party B.

 

4. Payment Method

 

(1) Party B has the right to supervise
and manage the payment of the loan capital of the settlement account and the loan granting or payment special account through
the methods of entrusted payment by the lender or direct payment by the borrower
to supervise the use of the loan capital specified in this Agreement after Party A agrees and this Agreement comes into effect.

 

(2) Entrusted Payment

 

4.2.1 The payment of the loan capital meeting
one of the following conditions shall adopt the method of the entrusted payment by the lender in the case Party A agrees. Specific
conditions to implement the entrusted payment by the lender are:

 

4.2.1.1 The payment object is specified
and with payment amount one time of RMB 4,000,000 yuan (included) in the working capital loan;

 

4.2.1.2 The single amount is 5%
higher than the project total investment but lower than RMB 500,000 yuan or capital is more than RMB 5,000,000 yuan in the
fixed assets loan;

 

4.2.1.3 ____________________________________;

 

4.2.1.4 ____________________________________.

 

4.2.2. Party A shall provide the specific
withdrawal application and payment delegation and relevant transaction materials for Party B as adopting the payment method of
entrusted payment by the lender.

 

4.2.3. Party A shall provide certification materials
meeting requirements of Party B when Party A apply external payment of the loan capital for Party B, including but not limited
to:

 

4.2.3.1 If the payment purpose meets the
purpose of certification files under this Agreement;

 

4.2.3.2 The business contract Party A signs
with the third party or the written files reflecting actually the payment obligation of Party A;

 

4.2.3.3
Party A shall supplement timely relevant invoices or receipts when payment finished if corresponding invoices or receipts cannot
be obtained while paying;

 

4.2.3.4 Legitimate and valid payment vouchers;

 

 

    	 

    	 

    

 

4.2.3.5 In the fixed assets loan need to
provide: the vouchers that Party A deposited the full capital to the designated account; the certificates that the actual progress
of the project matches the amount invested etc;

 

4.2.3.6 Other certification materials submitted.

 

4.2.4. Party B verifies if the payment
object and the payment amount information is consistent with certification materials such as relevant business contract according
to the loan purpose under this Agreement. After verification, Party B pays the loan capital to the transaction object under this
Agreement purpose by the settlement account and the loan granting or payment special account.

 

4.2.5. Party A pays the transfer fee at
the payment of the loan capital to Party B, and Party B has the right to deduct the transfer fee according to the actual amount.

 

(3) Direct Payment

 

Party A need to provide written plan using
the loan for Party B adopting the direct payment by the borrower, and Party A can pay the loan capital voluntarily in line with
the purpose under this Agreement; Party A gathers and reports the direct payment of the loan capital by  (frequency) to
Party B. Party B has the right to verify by account analysis , vouchers examination  and field investigation etc. if
the loan payment method of Party A is consistent with the purpose and payment method under this Agreement.

 

(4) Party A shall provide withdrawal application
to Party B at  working days prior to the proposed withdraw date and explain the method is the entrusted payment by the borrower
or the direct payment by the lender. Party B has the right to verify whether relevant materials of Party A is consistent with the
payment term under this Agreement and has the decision to the payment method of the relevant loan.

 

(5) In the process of loan issuance and
drawing, if Party A has the following circumstances, Party B has the right to require Party A supplement drawing and payment conditions,
or change loan payment method, and stop the issuance and payment of the loan:

 

5.1 Reduction of credit status;

 

5.2 Poor profitability of main business;

 

5.3 Abnormal using of loan capital.

 

5.4 In issuance of fixed loan, if appears:
not to pay the loan capital according to the agreement, project progress lagging behind capital using progress, and to violate
agreement arrangements to avoid entrusted payment of borrower in small chunks;

 

5.5 To violate other obligations under
this Agreement.

 

Item VI Repayment of loan

 

1. Principles of repayment:

 

Party A shall repayment the loan in this
Agreement as the following principles:

 

Party A voluntarily agrees that Party B
has the right that the repayment is firstly used for repaying the every expenses which is borne by Party A but advanced by Party
B and expenses for realizing the creditor’s right of Party B, residual balances shall be repaid by principles of interest
first and principal later and matching the principal repayment.

 

2. Payment of Interest:

 

Party A shall pay the interest due to Party
B on the expiry date for interest. The first payment date refers to the first expiry date for interest after the loan granted.
Matching the principal repayment as the final repayment is finished.

 

3. Repayment schedule

 

	(1). December 21, 2013 	Amount 100,000yuan;
	 	 
	(2). June 21, 2014 	Amount 100,000yuan;
	 	 
	(3). December 21, 2014 	Amount 100,000yuan;
	 	 
	(4). June 21, 2015 	Amount 100,000yuan;
	 	 
	(5). December 21, 2015 	Amount 100,000yuan;
	 	 
	(6). June 21, 2016 	Amount 100,000yuan;
	 	 
	(7). December 21, 2016 	Amount 100,000yuan;
	 	 
	(8). June 21, 2017 	Amount 100,000yuan;
	 	 
	(9). December 21, 2017 	Amount 100,000yuan;
	 	 
	(10). March 21, 2018 	Amount 100,000yuan;
	 	 
	(11). Prior to the expiration date,
2018	Amount 25,300,000yuan.

 

    	 

    	 

    

 

4. Method of Repayment

 

Party A shall prepare the full fund payable
on accounts set up by Party B on payment due date according to the agreement (Party A agrees Party B has the right to remit and
pay from the account), or remit from other accounts on payment in cash on due date according to the agreement (Party A agrees Party
B has the right to remit and pay from the account).

 

5. Prepayment

 

Party A shall apply to Party B prior to
10 working days for prepayment of principal, and can prepay partial or all principal with the agreement of Party B.

 

Party A shall repay the principal by the
priority of the expiry time of the repayment schedule in the case Party A repaying the principal by several times when repay partial
loan principal, and the rate is executed as the loan rate in this Agreement. The loan rate of the residual balances is executed
as the loan rate in this Agreement after prepayment finished. Party B can collect the interest rate refer to the first one of the
following if Party A prepays all loans:

 

(1). Collect the interest rate by the actual
loan term and the rate based on this Agreement.

 

(2). Collect the interest rate by the loan
term based on this Agreement and contract rate of interest.

 

(3). Collect the interest rate by the benchmark
interest rate corresponding to the actual loan term published by the People’s Bank of China when this Agreement signed and
the rate after floating at the rate term in this Agreement.

 

The interest rate collected shall not be
adjusted in the case of prepayment.

 

6. Apply for Renewal

 

Party A shall make written apply to Party
B within 30 working days before the loan due in the case of Party A cannot repay the loan on schedule for special case.
The repayment term can be prolonged after signing the Renewal Agreement with Party B’s approval, but the loan rate is confirmed
by accumulative loan levels.

 

Item VII  Guarantee and Insurance
of Loan

 

1. The guarantee in this Agreement refers
to the relevant Guarantee Contract otherwise signed by Guarantor and Party B.

 

2. Party A shall handle the insurance for
the invested fixed property with the requirements of Party B. The guarantor shall have statutory qualification and good reputation.
Insurance policy shall specify: Party A is the payee of priority for compensation (the first beneficiary);
the changing of insurance policy shall have written consent of Party B; the guarantor shall pay directly the compensation to the
accounts designated by Party B once insurance accident occurs.

 

Item VIII Rights and Obligations
of Party A

 

1. Party A’s Rights

 

(1) Has the right to require Party B to
issue the borrowings according the contract;

 

(2) Has the right to use the borrowings
according the items under this agreement;

 

(3) Has the right to require Party B to
treat the commercial secrets about financial condition and business operation in strict confidence except that the law and administrative
regulations otherwise provide, authority departments otherwise require or otherwise agreed by both parties;

 

(4) Has the right to refuse the Party B’s
or his staff’s act of asking for bribes, also has the right to report to the relevant department for above act or Party B’s
acts for violating national related credit interest rate, service charges and other laws and regulations.

 

    	 

    	 

    

 

2. Party A’s Obligations

 

(1) To draw the loan principal and interest
in accordance with the terms hereof and to pay off the bank loan principal and interest fully and periodically, and also to bear
general expenses stipulated in this agreement;

 

(2) To provide financial and accounting
information, business operation information required by Party B, including but not limited to balance sheet for the end of last
quarter and income statement for the end of last quarter within 15 working days in the first month of each quarter, and cash flow
statement for current year at the end of year; and shall be responsible for the genuineness, completeness and validity; make sure
not to provide falsified materials or to conceal material financial operation facts;

 

(3) Whenever changes items in its registration,
such as its name, legal representative (person in charge), residence, scope of business, registered capital or company’s
articles of association and so on, Party A shall notify Party B in written within 15 working days after alteration, and related
materials shall be enclosed;

 

(4) Party A should use the loan in accordance
with the purpose stipulated in this Agreement, shall not misappropriate, divert or use the loan to engage in illegal or violated
transactions; should cooperate with and accept Party B’s examination and supervision to its production operation, financial
activities and borrowing’s using condition hereunder; Party A should pay the borrowing capital according to agreed method;

 

(5) If uses the borrowing hereunder to
make production-manufacturing and engineering construction, Party A should abide by national provisions related to environmental
protection;

 

(6) Party A shall not provide a guarantee
to the third party with the loan before paying back the principal and interest of loan or getting Party B’s Permission;

 

(7) If Party A is a group customer, he
should report his related transaction of more than 10 percent of the net assets, including: (1) partner relationship between parties;
(2) transactions and nature of transaction; (3) amount or corresponding proportion; (4) pricing policy.

 

Item  IX Rights and Obligations
of Party B

 

1. Party B has the right to require Party
A repay the principal, interest of the loan and costs periodically and fully, excise other rights agreed in this Agreement, and
require Party A fulfill other obligations hereunder;

 

2. To grant the loan in accordance with
the principles of this agreement, except the delay caused by Party A or other reasons which are not imputable to Party B;

 

3. Treat the business secrets about the
financial information and business conditions provided by Party A in strict confidence except that the law and administrative regulations
otherwise provide, authority departments otherwise require or otherwise agreed by both parties;

 

4. Party B shall not provide bribes to
Party A or its staff, or ask for and receive its bribes;

 

5. Party B shall not have the acts that
is dishonest or damage Party A’s legal interests.

 

Item X Commitment and Assurance
of Party A

 

1. Signature and implementation of the
obligations in this Agreement by Party A complies with laws, administrative regulations, rules and provisions of Party A’s
rules or internal documents, and has obtained the approval by Party A’s internal competent authority or national competent
authority.

 

2. In the course of signing and implementing
this Agreement, Party A scrupulously abides by the principles of honesty and trustworthiness, and all materials, documents and
information about itself and guarantee provided to Party B is true, valid, accurate and complete without any concealment or omission.

 

3. Party A guarantees its credit status
is good without significant bad record.

 

4. In working capital loan, Party A promises
the loan will not be used in fixed assets and equity investment, not used in the fields and applications that the country forbids
to produce and operate;

 

5. Party A confirms that it will not make
stock right transfer, investment abroad, substantial increasing of debt financing and other behaviors without written consent of
Party B;

 

6. Party B has the right to make field
or non-field due diligence to Party A, make inspection to Party A’s operation state, financial condition, loan using and
repayment after the loan, and Party A has obligation to actively cooperate with Party B to make payment management, management
after loan and relevant examinations;

 

7. Party B has the right to call the borrowing
under this Agreement in advance according to recovery condition of Party A;

 

8. When borrowed for fixed assets, Party
A guarantees the loan project and borrowing matters comply with the requirements of laws and regulations;

 

9. If the loan proposed to issue under
this Agreement is for fixed assets or projects, Party A should guarantee proposed projects have obtained approval by governmental
authorities and will not have any illegal or irregular conditions, capital fund or other raised capital should be allocated in
time under formulation; ensure project schedule is completed on plan.

 

10. When happened great adverse events
that influence payment capacity, notify Party B timely.

 

Item XI Liability for Breach of
Agreement and Remedial Measures of Circumstances in which Imperil Party B’s Creditor’s Right

 

1. Situation and Liability for Breach of
Agreement of Party B

 

(1) If Party B doesn’t issue the
loan according to agreement provisions without good reasons, Party A can require Party B continue to issue the loan in accordance
with agreement items;

 

(2) If Party B violates prohibitive provisions
of national laws and regulations to collect interests and fees that shouldn’t have been collected, Party A is entitled to
require Party B send back.

 

    	 

    	 

    

 

 

2. Breach of Agreement of Party A

 

(1) Party A violates any arrangements in
this Agreement or any legal obligations, including but not limited to, documentation information submitted for loan application
is false and wrong; not in accordance with related financial index constraint in this Agreement; used object, amount and application
of the loan independently paid by Party A is inconsistent with original plan; abnormal of capital flow in capital recovery account;
have cross default events; violate guarantee and commitments as well as other arrangements in this Agreement;

 

(2) Party A definitively expresses or indicates
by its acts that it will not fulfill any obligation under this Agreement.

 

3. Circumstances in which may imperil the
creditors’ rights of Party B:

 

(1) Under any of the following circumstances,
Party B will consider it may imperil the safety of the creditors’ rights: Party A’s contracting, trusteeship(taking-over),
leasing, shareholding system reform, reducing its registered capital, investing, joint operating, merger, acquisition, purchase
annexation and reorganization, separation, joint investment, application (or being required to apply ) for suspending business
for rectification, application for dissolution, being rescinded, application (or being required to apply) for bankruptcy, changes
of controlling shareholders/actual controller, asset transference, suspending production, going out of business, being fined heavily
by authorities, registration being cancelled, business license being revoked, material legal wrangle, arising difficulties in business
operation, deterioration in financial condition, legal representative or major person in charge failing to perform duties normally.

 

(2) Under any of the following circumstances,
Party B will consider it may imperil the safety of the creditors’ rights: Party A fails to perform the other due debt (including
to other financial institutes), assigns its property in low price or without reward, remits third-party debt, is remiss in obligation
or other rights, or provides a guarantee to the third party;

 

(3) The shareholders of Party A misuse
the independent status of corporate juridical person or limited Liability of shareholders to evade repayment of debts, and Party
B believes that may endanger the safety of creditors’ right;

 

(4) Any precondition stipulated in the
agreement for granting the loan isn’t fulfilled consistently;

 

(5) If guarantee has any of the following
circumstances, Party B may consider it endanger the safety of creditors’ right:

 

3.5.1. Breaching any stipulation of the
contract of guarantee or there is any falsity or inaccuracy or omission in presentation and warranty;

 

3.5.2. Coming up contracting, trusteeship(taking-over),
leasing, shareholding system reform, reducing its registered capital, investing, joint operating, merger, acquisition, purchase
annexation and reorganization, separation, joint investment, application(or being required to apply) for suspending business for
rectification, application for dissolution, being rescinded, application (or being required to apply) for bankruptcy, changes of
controlling shareholders/actual controller, asset transference, suspending production, going out of business, being fined heavily
by authorities, registration being cancelled, business license being revoked, material legal wrangle, arising difficulties in business
operation, deterioration in financial condition, legal representative failing to perform duties normally which may influence the
guarantee’s ability of bearing responsibility for guaranty;

 

3.5.3. It is in any other circumstance
which will or may cause it to lose its ability to perform;

 

(6) If any of the following circumstances
happens to mortgage or pledge, Party B may consider it endanger the safety of creditors’ right:

 

3.6.1. Acts by third parties, the state
levy, requisition, confiscation, without compensation, relocation, changes in market conditions or any other causes that may lead
to damage the pledge or mortgaged property or reduce the value;

 

3.6.2. The pledge or mortgaged property
is sealed up, confiscated, frozen, deducted, retained, auctioned, investigated by the executive authorities or arises disputes
about the ownership;

 

3.6.3. Mortgager or pledgeor violates the
stipulations of mortgage or pledge contracts, or there is any falsity or inaccuracy or omission in presentation and warranty;

 

3.6.4. It is in any other circumstance
which will imperil the realization of Party B’s mortgage or pledge right;

 

(7) The guarantee is false, ineffective,
in vain, rescinded or relieved. Guarantor breaches the agreement or doesn’t want to call on the guarantee, or if guarantor
loses part or whole Guarantee Ability, or if the value of the mortgaged property is declined or other circumstances that Party
B may consider those may endanger the safety of creditors’ right;

 

(8) Other circumstances that Party B may
consider those may endanger the safety of creditors’ right;

 

4. Remedial Measures from Party B:

 

If any circumstance in Article 2 or 3 of
this item arises, Party B has right to exercise the following one or several items of rights:

 

(1) To stop granting loans;

 

    	 

    	 

    

 

 

(2) To declare the loan is due immediately,
and to require Party A repay all the principal, interest of the loan and costs that is due and undue;

 

(3) If Party A didn’t pay the loan
according to the method and period stipulated in this Agreement, Party B has the right to require Party A pay the liquidated damages,
equal to  % of unpaid amount under the agreement, and has the right to refuse Party A to draw unused borrowing in this Agreement;

 

(4) If Party A didn’t use the loan
in accordance with stipulations, as for the embezzling part of the loan, Party B could receive interest and compounds interest
at penalty interest rate and by prearranged methods from the date on which party A failed to use the loan in accordance with stipulations
to the date when all the principal, interest of the loan are paid off;

 

(5) If the loan is overdue, as for the
unpaid principal and interest (including the whole or part of principal and interest that is due ahead of schedule), Party B shall
receive interest and compounds interest at penalty interest rate and by prearranged methods from the date when the loan is overdue
to the date when all the principal, interest of the loan are paid off. Overdue loan refers to the behavior that Party A didn’t
repay on schedule or return borrowing over the planned principal repayment period stipulated in this Agreement.

 

Before the loan is overdue, the interests
that didn’t pay off by Party A shall be received compound interest at loan interest rate and interest settlement method stipulated
in this Agreement.

 

(6) Other remedial measures including but
not limited to:

 

4.6.1. To remit RMB or other currencies
from any account opened by Party A at Rural Credit Union of Hebei system without informing Party A in advance, Party A has no objections;

 

4.6.2. To exercise guaranty of right;

 

4.6.3. To require Party A to provide a
new guarantee about the loan that meet Party B’s requirement;

 

4.6.4. To cancels the agreement,

 

Item XII Other Items

 

1. Charges assumption

 

Party A shall bear the attorney fees, insurance,
assessment, registration fees, keeping expenses, appraisal costs and notarial fees and so on which are related to guarantee and
actually incurred under this Agreement, unless the parties concerned have agreed on other arrangements.

 

Charges occurred to Party B for the purpose
of realizing the creditor’s right shall be borne by Party A (including but not limited to the legal fees, arbitration fees,
property preservation fees, traveling expenses, execution costs, assessment fees, auction fees, notarial fee, service fees, announcement
fees, attorney fees and so on).

 

2. Using of Party A’s information

 

Party A entrusts Party B to inquire its
credit status to credit database approved by the People’s Bank of China and credit reporting department in charge or relevant
units and departments, and agrees that Party B files the borrower information with credit database approved by the People’s
Bank of China and credit reporting department in charge. And Party A agrees that Party B can reasonably use and disclose Party
A’s information for business need.

 

3. Announcement for Collection

 

For loan principal and interest owed by
Party A or other default, Party B has the right to report to relevant department or unit and through news media make announcement
for collection, and Party A agrees that announcement for collection by Party B has the effect to interrupt limitation of legal
proceeding.

 

4. Evidentiary Effectiveness of Party B’s
Record

 

Internal accounting record related to principal,
interests, charges and repayment history of Party B, receipts and certificates incurred in Party A’s drawing, repayment,
interest payment and other business process made or retained by Party B, as well as the record and certificates for loan collection
by Party B, are the evidence for the creditor-debtor relationship between both parties. Party A accepts the effectiveness of above
evidence, and no objections shall be made by Party A for the reason that above records, history, receipts and certificates are
made and retained by Party B.

 

5. Reservation of Right

 

Party B’s rights don’t influence
or exclude any other right enjoyed in accordance with laws, regulations and other agreements. Any tolerance, grace or preference
to any breaching or delay in exercising any right cannot be considered as renouncing the right or permitting the behaviors against
this agreement, also not limited, prevented and impeded continuing to exercise its right or any other rights, and will not restrict
Party B to bear obligations and liabilities to Party A.

 

6. Besides the debt under this agreement,
if Party A owns other debts that is due, Party B will has the right to remit RMB or other currencies to repay any debt which is
due from any account opened by Party A at Rural Credit Union of Hebei system without informing Party A in advance, and no objections
shall be made by Party A.

 

    	 

    	 

    

 

 

7. If mailing address or contact information
changed, Party A should notify Party B in written within 5 working days, and losses resulted from not notifying in time should
be borne by Party A.

 

8. Collection of Payables

 

For all payables in this Agreement, Party
A agrees Party B has the right to remit RMB or other currencies payables from account opened by Party A at Rural Credit Union of
Hebei system without informing Party A in advance.

 

9. Settlement of Disputes

 

The disputes arising from the execution
of this Agreement shall be settled through friendly consultation. In case no settlement can be reached, the disputes shall be resolved
through the methods set forth in item 1 hereunder:

 

(1) The disputes shall be settled through
litigation by the courts located in the Party B’s address.

 

(2) To be submitted for arbitration to
Arbitration Commission. Arbitration shall be conducted in accordance with the Commission’s arbitration rules in effect
at the time of applying for arbitration. The arbitral award is final and binding upon both parties.

 

During the litigation or arbitration, the
terms that don’t involve disputes still need to be performed.

 

10. Conditions under which the agreement
becomes effective

 

This Agreement shall come into force after
the signatures and stamps of legal representatives (persons in charge) or authorized agents of Party A and Party B.

 

11. The Agreement is made in three
counterparts, each party holding one copy.

 

12. Other Contractual Matters

 

(1)  _____________________________________;

 

(2)  _____________________________________;

 

(3)  _____________________________________;

 

(4)  _____________________________________.

 

Item XIII Declaration Provisions

 

1. Party A fully informed the Party B’s
scope of business and the scope of the authority.

 

2. Party A has read all the terms of this
agreement. At the request of Party A, Party B has made corresponding item descriptions to this Agreement. Party A has got full
informed and understood of the meaning or content of the item and its legal consequence.

 

Party A (official seal):

 

Legal representative (Person in charge)
or authorized agent (Signature): /s/Liying Tian

 

Party B (official seal):

 

Legal representative (Person in charge)
or authorized agent (Signature): /s/Shuqiang Han

 

Date of Agreement: July 15, 2013

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00228-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00228-of-00352.parquet"}]]