Document:

Exhibit 4.4

 

 

ESCROW AGREEMENT

 

LegacyTexas Bank

100 Throckmorton, Suite 1510

Fort Worth, Texas 76102

 

		Re:	United Development Funding Income Fund V

 

Ladies and Gentlemen:

 

United Development
Funding Income Fund V, a Maryland real estate investment trust (the “Trust”), will issue in a public offering
(the “Offering”) common shares of beneficial interest (the “Shares”) pursuant to a Registration
Statement on Form S-11 filed by the Trust with the Securities and Exchange Commission and a Prospectus included therein, as may
be amended or supplemented from time to time (the “Prospectus”). Realty Capital Securities, LLC, a Delaware
limited liability company (the “Dealer Manager”), will act as the exclusive dealer manager for the Offering.
The Shares will be offered by the Dealer Manager and select members (each being referred to herein as a “Dealer”
and collectively as the “Dealers”) of the Financial Industry Regulatory Authority (FINRA) on a reasonable best
efforts basis. The Trust and the Dealer Manager are entering into this Escrow Agreement (the “Agreement”) to
set forth the terms on which LegacyTexas Bank (the “Escrow Agent”), will hold and disburse the proceeds from
subscriptions for the purchase of the Shares in the Offering until such time as (i) in the case of subscriptions received
from all nonaffiliates of the Trust, the Trust has received and accepted subscriptions for Shares resulting in total minimum capital
raised of $2,000,000 (the “Required Capital”) and, thereafter, until otherwise directed by the Trust; (ii) in
the case of subscriptions received from residents of New York (“New York Subscribers”), the Trust has received
subscriptions for Shares from nonaffiliates of the Trust resulting in total minimum capital raised of $2,500,000 (the “New
York Required Capital”); (iii) in the case of subscriptions received from residents of Washington (“Washington
Subscribers”), the Trust has received subscriptions for Shares from nonaffiliates of the Trust resulting in total minimum
capital raised of $20,000,000 (the “Washington Required Capital”); and (iv) in the case of subscriptions received
from residents of Pennsylvania (“Pennsylvania Subscribers”), the Trust has received subscriptions for Shares
from nonaffiliates of the Trust resulting in total minimum capital raised of $37,500,000 (the “Pennsylvania Required Capital”).

 

The Trust hereby appoints
LegacyTexas Bank as Escrow Agent for purposes of holding the proceeds from the subscriptions for the Shares, on the terms and conditions
hereinafter set forth:

 

    	 

    	 

    

 

1.           Until
such time as the Trust has received subscriptions for Shares resulting in total minimum capital raised equal to the Required Capital
and such funds are disbursed from the Escrow Account, as hereinafter defined, in accordance with paragraph 3(a) hereof, persons
subscribing to purchase the Shares (the “Subscribers”) will be instructed by the Dealer Manager or any Dealer
to remit the purchase price in the form of checks, drafts, wires, Automated Clearing House (ACH) or money orders (hereinafter referred
to as “Instruments of Payment”) payable to the order of “LegacyTexas Bank, Escrow Agent for United Development
Funding Income Fund V.” Any Instruments of Payment made payable to a party other than the Escrow Agent shall be returned
to the Dealer Manager or the Dealer who submitted such Instrument of Payment. When the Dealer’s internal supervisory procedures
are conducted at the site at which the Instruments of Payment and the Subscription Materials (as defined below) are initially received
by the Dealer, by the end of the next business day after receipt of any Instruments of Payment and Subscription Materials, the
Dealer will send to the Escrow Agent such Instruments of Payment along with each Subscriber’s name, address, executed IRS
Form W-9, number of Shares purchased and purchase price remitted and any other subscription documentation (the “Subscription
Materials”). When the Dealer’s internal supervisory procedures are conducted at a different location (the “Final
Review Office”), the Dealer shall transmit the Instruments of Payment and the Subscription Materials to the Final Review
Office by the end of the next business day after receipt of any Instruments of Payment and Subscription Materials; the Final Review
Office will, by the end of the next business day following its receipt of the Instruments of Payment and the Subscription Materials,
forward the Instruments of Payment and the Subscription Materials to the Escrow Agent. The Dealer Manager or the Dealer also will provide
in writing to Escrow Agent, concurrently with the Subscription Materials and the Instruments of Payment, instructions regarding
the escrow account (i.e., the Escrow Account, New York Escrow Account, Pennsylvania Escrow Account or Washington Escrow Account,
as such terms are defined below) in which to deposit the proceeds of each Instrument of Payment (it being understood that absent
any written directions to the contrary, Escrow Agent shall deposit such proceeds in the Escrow Account) and notification whether
the applicable Subscriber is an affiliate of the Trust (it being understood that absent any written notification to the contrary,
Escrow Agent shall presume that each Subscriber is not an affiliate of the Trust). The Escrow Agent shall notify the Trust and
the Dealer Manager from time to time during the term of this Agreement of the names of any Subscribers for whom the Escrow Agent
has not received a properly executed IRS Form W-9, to the extent Escrow Agent is able to make such determination. The Escrow Agent
will keep and maintain the Subscription Materials and will deposit the Instruments of Payment from such Subscribers into an interest-bearing
deposit account entitled “Escrow Account for the Benefit of Subscribers for Shares of United Development Funding Income Fund
V” or such similar designation as the parties may agree (the “Escrow Account”) until such Escrow Account
has closed pursuant to paragraph 3(a) hereof. Instruments of Payment received from New York Subscribers (as identified as
such by the Trust or the Dealer Manager) shall be accounted for separately in a subaccount entitled “Escrow Account for the
Benefit of New York Subscribers” (the “New York Escrow Account”), until such New York Escrow Account has
closed pursuant to paragraph 3(a) hereof. Instruments of Payment received from Washington Subscribers (as identified as such by
the Trust or the Dealer Manager) shall be accounted for separately in a subaccount entitled “Escrow Account for the Benefit
of Washington Subscribers” (the “Washington Escrow Account”), until such Washington Escrow Account has
closed pursuant to paragraph 3(a) hereof. Instruments of Payment received from Pennsylvania Subscribers (as identified as such
by the Trust or the Dealer Manager) shall be accounted for separately in a subaccount entitled “Escrow Account for the Benefit
of Pennsylvania Subscribers” (the “Pennsylvania Escrow Account”), until such Pennsylvania Escrow Account
has closed pursuant to paragraph 3(a) hereof. Each of the Escrow Account, the New York Escrow Account, the Washington Escrow Account
and the Pennsylvania Escrow Account will be established and maintained in such a way as to permit the interest income calculations
described in paragraph 6. The Escrow Agent will send copies of all Subscription Materials and copies of all Instruments of Payment
to DST Systems, Inc., 430 West 7th Street, Kansas City, Missouri 64105 promptly after receipt.

 

2.           The
Escrow Agent will promptly process for collection the Instruments of Payment upon deposit into the Escrow Account, New York Escrow
Account, Washington Escrow Account or Pennsylvania Escrow Account, as applicable. Deposits will be held in the Escrow Account,
the New York Escrow Account, the Washington Escrow Account and the Pennsylvania Escrow Account, as applicable, until such funds
are disbursed in accordance with paragraph 3 hereof. It is the intention of the Trust and the Escrow Agent that, except as
set forth herein, prior to disbursement of the funds deposited in the Escrow Account, the New York Escrow Account, the Washington
Escrow Account or the Pennsylvania Escrow Account, such funds will not be subject to claims by creditors of the Trust, the Dealer
Manager, any Dealer or any of their affiliates; provided however, that such intention does not constitute any representation by
either the Trust or the Escrow Agent that the funds will not be subject to such claims. If any of the Instruments of Payment are
returned to the Escrow Agent for nonpayment prior to Escrow Agent’s receipt of collected funds from Instruments of Payment
in an aggregate amount which is less than the Required Capital or, in connection with subscriptions from New York Subscribers,
the New York Required Capital, or in connection with subscriptions from Washington Subscribers, the Washington Required Capital,
or in connection with subscriptions from Pennsylvania Subscribers, the Pennsylvania Required Capital, the Escrow Agent shall promptly
notify the Trust and the Dealer Manager of such nonpayment, and is authorized to debit the Escrow Account, the New York Escrow
Account, the Washington Escrow Account or the Pennsylvania Escrow Account, as applicable, in the amount of such returned payment
as well as any interest earned on the amount of such payment.

 

    	-2-

    	 

    

 

3.           (a)           Subject
to the provisions of paragraphs 3(b)-3(i) below:

 

(i)          Once
collected funds from Instruments of Payment in the Escrow Account are an amount equal to or greater than the Required Capital,
the Escrow Agent shall promptly notify the Trust and the Dealer Manager and, upon receiving written instruction from both the Trust
and the Dealer Manager, (A) disburse to the Trust, by check, ACH or wire transfer, the funds in the Escrow Account representing
the gross purchase price for the Shares in an amount directed by the Trust in such written notice, (B) disburse to the Subscribers
or the Trust, as applicable, any interest thereon pursuant to the provisions of paragraph 3(f), and (C) provide to the Trust
for delivery to the Director of Banking and Finance of the State of Nebraska an affidavit in substantially the form attached hereto
as Exhibit A which states that all of the conditions of this Agreement relating to the Escrow Account which are capable of being
satisfied as of the date of such affidavit have been met (it being understood that Escrow Agent shall provide such affidavit only
in the event that in Escrow Agent’s sole discretion all such conditions of this Agreement have been met). For purposes of
this Agreement, the term “collected funds” shall mean all funds received by the Escrow Agent that have cleared normal
banking channels and are in the form of cash or a cash equivalent. After such time, the Escrow Account shall remain open and the
Trust and the Dealer Manager shall continue to cause subscriptions for the Shares that are not to be deposited in the New York
Escrow Account, the Washington Escrow Account or the Pennsylvania Escrow Account to be deposited therein until the Trust informs
the Escrow Agent in writing to close the Escrow Account (prior to providing such notice to the Escrow Agent, the Trust shall provide
the Dealer Manager at least 5 days written notice of its intent to close the Escrow Account), and thereafter any Subscription Materials
and Instruments of Payment received by the Escrow Agent from Subscribers other than New York Subscribers, Washington Subscribers
and Pennsylvania Subscribers shall be forwarded directly to the Trust; provided that, if the Escrow Account remains open, until
the Escrow Account is closed as set forth herein, the funds and interest held therein shall be disbursed as set forth above at
any time upon written instruction from both the Trust and the Dealer Manager.

 

(ii)         Regardless
of any release of funds from the Escrow Account, the Dealer Manager or the Dealer shall continue to forward to the Escrow Agent
Subscription Materials and Instruments of Payment received from New York Subscribers and such Subscription Materials will be kept
and maintained by the Escrow Agent and such Instruments of Payment will be deposited into the New York Escrow Account by the Escrow
Agent until such time as both the Trust and the Dealer Manager notify the Escrow Agent in writing that total subscription proceeds
(including the amount then in the New York Escrow Account) equal or exceed the New York Required Capital.  Upon the receipt
of such written instruction from both the Trust and the Dealer Manager, the Escrow Agent shall (A) disburse to the Trust,
by check, ACH or wire transfer, the funds then in the New York Escrow Account representing the gross purchase price for the Shares
in an amount directed by the Trust in such written notice, and (B) disburse to the New York Subscribers or the Trust, as applicable,
any interest thereon pursuant to the provisions of paragraph 3(f). Following such disbursements, the Escrow Agent shall close
the New York Escrow Account, and thereafter any Subscription Materials and Instruments of Payment received by the Escrow Agent
from New York Subscribers shall be, in the case of Subscription Materials received from New York Subscribers, kept and maintained
by the Escrow Agent and, in the case of Instruments of Payment received from New York Subscribers, deposited directly to the Escrow
Account (or to the Trust, if it has closed the Escrow Account, as instructed in writing by the Trust).

 

    	-3-

    	 

    

 

(iii)        Regardless
of any release of funds from the Escrow Account or the New York Escrow Account, the Dealer Manager or the Dealer shall continue
to forward to the Escrow Agent Subscription Materials and Instruments of Payment received from Washington Subscribers and such
Subscription Materials will be kept and maintained by the Escrow Agent and such Instruments of Payment will be deposited into the
Washington Escrow Account until such time as both the Trust and the Dealer Manager notify the Escrow Agent in writing that total
subscription proceeds (including the amount then in the Washington Escrow Account) equal or exceed the Washington Required Capital.
 Upon the receipt of such written instruction from both the Trust and the Dealer Manager, the Escrow Agent shall (A) disburse
to the Trust, by check, ACH or wire transfer, the funds then in the Washington Escrow Account representing the gross purchase price
for the Shares in an amount directed by the Trust in such written notice, and (B) disburse to the Washington Subscribers or the
Trust, as applicable, any interest thereon pursuant to the provisions of paragraph 3(f). Following such disbursements, the
Escrow Agent shall close the Washington Escrow Account, and thereafter any Subscription Materials and Instruments of Payment received
by the Escrow Agent from Washington Subscribers shall be, in the case of Subscription Materials received from Washington Subscribers,
kept and maintained by the Escrow Agent and, in the case of Instruments of Payment received from Washington Subscribers, deposited
directly to the Escrow Account (or to the Trust, if it has closed the Escrow Account, as instructed in writing by the Trust).

 

(iv)        Regardless
of any release of funds from the Escrow Account, the New York Escrow Account or the Washington Escrow Account, the Dealer Manager
or the Dealer shall continue to forward to the Escrow Agent Subscription Materials and Instruments of Payment received from Pennsylvania
Subscribers and such Subscription Materials will be kept and maintained by the Escrow Agent and such Instruments of Payment will
be deposited into the Pennsylvania Escrow Account until such time as both the Trust and the Dealer Manager notify the Escrow Agent
in writing that total subscription proceeds (including the amount then in the Pennsylvania Escrow Account) equal or exceed the
Pennsylvania Required Capital.  Upon the receipt of such written instruction from both the Trust and the Dealer Manager,
the Escrow Agent shall (A) disburse to the Trust, by check, ACH or wire transfer, the funds then in the Pennsylvania Escrow Account
representing the gross purchase price for the Shares in an amount directed by the Trust in such written notice, and (B) disburse
to the Pennsylvania Subscribers or the Trust, as applicable, any interest thereon pursuant to the provisions of paragraph 3(f).
Following such disbursements, the Escrow Agent shall close the Pennsylvania Escrow Account, and thereafter any Subscription Materials
and Instruments of Payment received by the Escrow Agent from Pennsylvania Subscribers shall be, in the case of Subscription Materials
received from Pennsylvania Subscribers, kept and maintained by the Escrow Agent and, in the case of Instruments of Payment received
from Pennsylvania Subscribers, deposited directly to the Escrow Account (or to the Trust, if it has closed the Escrow Account,
as instructed in writing by the Trust).

 

(b)          At
the close of business on the date that is one year following commencement of the Offering (the “Expiration Date”)
(such commencement date shall be promptly provided to the Escrow Agent by the Trust after the commencement of the Offering), the
Escrow Agent shall promptly notify the Trust and the Dealer Manager (the “Expiration Notice”) if it is not in
receipt of Subscription Materials received on or before the Expiration Date and Instruments of Payment dated not later than the
Expiration Date in the aggregate amount that equals or exceeds the Required Capital (from all sources but exclusive of any funds
received from subscriptions for Shares from entities that are affiliated with the Trust). Following the tenth calendar day after
the date of the Expiration Notice, the Escrow Agent shall promptly return directly to each Subscriber the collected funds deposited
in the Escrow Account, the New York Escrow Account, the Washington Escrow Account and the Pennsylvania Escrow Account on behalf
of such Subscriber, or shall return the Instruments of Payment delivered but not yet processed for collection prior to such time,
together with interest in the amounts calculated pursuant to paragraph 6 for each Subscriber, at the address provided in the
Subscription Materials. However, the Escrow Agent shall not be required to remit any payments until funds represented by such payments
have been collected.

 

    	-4-

    	 

    

 

(c)          Notwithstanding
subparagraphs 3(a) and 3(b) above, if on or before the close of business on such date that is 120 days after commencement of the
Offering (the “Initial Escrow Period”) (such commencement date shall be promptly provided to the Escrow Agent
by the Trust after the commencement of the Offering), Escrow Agent is not in receipt of Instruments of Payment dated not later
than that date from nonaffiliated sources in an amount that equals or exceeds the Pennsylvania Required Capital, the Escrow Agent
shall promptly notify the Trust and the Dealer Manager. Thereafter, the Trust shall send to each Pennsylvania Subscriber by certified
mail within ten (10) calendar days after the end of the Initial Escrow period a notification in the form of Exhibit B. If, pursuant
to such notification, a Pennsylvania Subscriber requests the return of his or her subscription funds within ten (10) calendar days
after receipt of the notification (the “Request Period”), the Escrow Agent shall, within fifteen (15) calendar
days after receipt of such request from the Investor, deliver directly to each such Pennsylvania Subscriber the collected funds
from Instruments of Payment deposited in the Pennsylvania Escrow Account on behalf of such Pennsylvania Subscriber or shall return
the Instruments of Payment delivered but not yet processed for collection prior to such time to the address provided by the Trust,
together with interest income in the amounts calculated pursuant to paragraph 6. However, the Escrow Agent shall not be required
to remit such payments until the Escrow Agent has collected funds represented by such payments.

 

(d)          The
subscription funds of Pennsylvania Subscribers who do not request the return of their subscription funds within the Request Period
shall remain in the Pennsylvania Escrow Account for successive 120-day escrow periods (a “Successive Escrow Period”),
each commencing automatically upon the termination of the Initial Escrow Period or prior Successive Escrow Period, as applicable,
and the Trust and Escrow Agent shall follow the notification and payment procedure set forth in paragraph 3(c) above with respect
to the Initial Escrow Period for each Successive Escrow Period until the occurrence of the earliest of (i) the Expiration Date,
(ii) such time as the Trust notifies the Escrow Agent in writing pursuant to paragraph 3(a)(iv) that total subscription proceeds
(including the amount then in the Pennsylvania Escrow Account) equal or exceed the Pennsylvania Required Capital and the disbursement
of the Pennsylvania Escrow Account on the terms specified herein, or (iii) all funds held in the Pennsylvania Escrow Account having
been returned to the Pennsylvania Subscribers in accordance with the provisions hereof.

 

(e)          If
the Trust notifies the Escrow Agent in writing that it rejects any subscription for which the Escrow Agent has collected funds,
the Escrow Agent shall promptly disburse out of the Escrow Account, New York Escrow Account, Washington Escrow Account or Pennsylvania
Escrow Account, as applicable, the amount set forth in such notification to the Subscriber also set forth in such notification.
If the Trust rejects any subscription for which the Escrow Agent has not yet collected funds but has submitted the Subscriber’s
Instrument of Payment for collection, the Escrow Agent shall promptly return the funds in the amount of the Subscriber’s
Instrument of Payment to the rejected Subscriber after such funds have been collected. If the Escrow Agent has not yet submitted
a rejected Subscriber’s Instrument of Payment for collection, the Escrow Agent shall promptly remit the Subscriber’s
Instrument of Payment directly to the Subscriber. The Trust acknowledges and agrees that Escrow Agent has no responsibility for
accepting, rejecting or approving subscriptions. If the Offering is terminated prior to the receipt of Subscription Materials and
Instruments of Payment from nonaffiliated sources in an amount that equals or exceeds the New York Required Capital, Washington
Required Capital or Pennsylvania Required Capital, any subscriptions held in the New York Escrow Account, the Washington Escrow
Account or the Pennsylvania Escrow Account, respectively, will be deemed rejected by the Trust, and the subscription funds held
in such escrow accounts, if any, will be remitted to the respective Subscribers in accordance with this paragraph 3(e), together
with interest income in the amounts calculated pursuant to paragraph 6.

 

    	-5-

    	 

    

 

(f)          At
any time after funds are disbursed upon the Trust’s and the Dealer Manager’s instructions pursuant to paragraph 3(a)
above, on the tenth day following the date of receipt of such instruction, the Escrow Agent shall promptly disburse directly to
each Subscriber out of the Escrow Account, New York Escrow Account, Washington Escrow Account or Pennsylvania Escrow Account, as
applicable, the amount of the interest payable to such Subscriber. However, the Escrow Agent shall not be required to remit any
payments until the Escrow Agent has collected funds represented by such payments. The Escrow Agent may use such reasonable allocation
methods as it determines to be equitable in allocating interest income among Subscribers and as between the Subscribers and the
Trust if the funds bear interest at multiple rates during the escrow period. The Trust agrees to accept Escrow Agent’s calculation
of any interest hereunder absent manifest mathematical error. As used in this Agreement, “subscription proceeds” shall
mean the proceeds from the applicable Instruments of Payment.

 

(h)          Any
disbursement of funds by the Escrow Agent to Subscribers shall be made to the persons named in the Subscription Materials at the
address stated therein by cashiers’ check mailed by United States mail.

 

(i)          If
at the time of any required disbursement of interest to a Subscriber, the Escrow Agent has not received a properly executed IRS
Form W-9, the Escrow Agent shall withhold from any interest distribution such amount as may be required to be withheld by law and
remit such withheld amounts to the Internal Revenue Service in timely fashion.

 

4.           Prior
to the disbursement of funds deposited in the Escrow Account, the New York Escrow Account, the Washington Escrow Account or the
Pennsylvania Escrow Account in accordance with the provisions of paragraph 3 hereof, the Escrow Agent shall invest all of
the funds deposited as well as earnings and interest derived therefrom in the Escrow Account, the New York Escrow Account, the
Washington Escrow Account or the Pennsylvania Escrow Account, as applicable, in bank money market accounts maintained with the
Escrow Agent.

 

It is hereby expressly
agreed and stipulated by the parties hereto that the Escrow Agent shall not be required to exercise any discretion hereunder and
shall have no investment or management responsibility and, accordingly, shall have no duty to, or liability for its failure to,
provide investment recommendations or investment advice to the parties hereto. It is the intention of the parties hereto that the
Escrow Agent will never be required to use, advance or risk its own funds or otherwise incur financial liability in the performance
of any of its duties or the exercise of any of its rights and powers hereunder.

 

5.           The
Escrow Agent is entitled to rely upon written instructions received from the Trust or the Dealer Manager, unless the Escrow Agent
has actual knowledge that such instructions are not valid or genuine; provided that, if in the Escrow Agent’s opinion, any
instructions from the Trust or the Dealer Manager are unclear, the Escrow Agent may request clarification from the Trust or the
Dealer Manager, as the case may be, prior to taking any action, and if such instructions continue to be unclear, the Escrow Agent
may rely upon written instructions from the Trust’s or the Dealer Manager’s legal counsel, as the case may be, in distributing
or continuing to hold any funds or may take any other action authorized hereunder. However, the Escrow Agent shall not be required
to disburse any funds attributable to Instruments of Payment that have not been processed for collection, until such funds are
collected, and then shall disburse such funds in compliance with the disbursement instructions from both the Trust and the Dealer
Manager.

 

    	-6-

    	 

    

 

6.           If
the Offering terminates prior to receipt of the Required Capital (such termination date shall be promptly provided to the Escrow
Agent by the Trust), or one or more Pennsylvania Subscribers elects to have his or her subscription proceeds returned in accordance
with paragraph 3, interest income earned on subscription proceeds deposited in the Escrow Account (the “Escrow Income”),
the New York Escrow Account (the “New York Escrow Income”), the Washington Escrow Account (the “Washington
Escrow Income”) and the Pennsylvania Escrow Account (the “Pennsylvania Escrow Income”) as applicable,
shall be remitted to Subscribers in accordance with paragraph 3 and without any deductions for fees or escrow expenses. For
each Subscriber who has deposited funds that have been held in escrow by the Escrow Agent, such Subscriber’s pro rata portion
of Escrow Income shall be determined as follows: the total amount of Escrow Income shall be multiplied by a fraction, (a) the
numerator of which is determined by multiplying the number of Shares that were subscribed for by the Subscriber times the number
of days the Subscriber’s proceeds were held in the Escrow Account prior to the date of disbursement, and (b) the denominator
of which is the total of the numerators for all Subscribers in such account who have deposited funds that have been held in escrow
by the Escrow Agent. The Escrow Agent shall remit all such Escrow Income, New York Escrow Income, Washington Escrow Income and
Pennsylvania Escrow Income in accordance with paragraph 3. If the Trust chooses to leave the Escrow Account open after receiving
the Required Capital, then it shall make regular acceptances of subscriptions therein, but no less frequently than monthly, and
the Escrow Income from the last such acceptance shall be calculated and remitted to the Subscribers or the Trust, as applicable,
pursuant to the provisions of paragraph 3(f). The Trust agrees to accept Escrow Agent’s calculation of the Escrow Income,
New York Escrow Income, Washington Escrow Income, Pennsylvania Escrow Income, and any pro rata portion thereof, absent manifest
mathematical error.

 

7.           Escrow
Agent shall be paid by the Trust for its services to be rendered hereunder in accordance with Exhibit C attached hereto. Escrow
Agent acknowledges that the Dealer Manager has no obligation to pay the Escrow Agent in accordance with Exhibit C attached hereto
or otherwise.

 

8.           The
Escrow Agent will be liable as a depository only and will not be responsible for the sufficiency or accuracy of the form, execution
or validity of any check or any other document delivered to the Escrow Agent hereunder or any description of the property or other
thing contained therein or the identity, authority or rights of the persons executing or delivering or purporting to execute or
deliver any such document. The Escrow Agent’s duties hereunder are limited to the safekeeping of the assets, instruments
or other documents received and the delivery of the same in accordance with this Agreement. The Escrow Agent will not be liable
for any act or omission done in good faith, or for any claim, demand, loss or damage made or suffered by any party to this Agreement,
excepting such as may arise through or be caused by the Escrow Agent’s misconduct or negligence. The Escrow Agent is authorized
to rely on any document believed by the Escrow Agent to be authentic in making any delivery of funds or property hereunder. Escrow
Agent shall not be required to comply with any direction or instruction other than those specifically described herein.

 

9.           In
accepting any funds or documents delivered hereunder, it is agreed and understood by the undersigned that the Escrow Agent will
not be called on to construe any contract or instrument deposited herewith, and in the event of a dispute will be required to act
in respect to the deposit herein made only on the consent in writing of the undersigned. In the failure of such consent, the Escrow
Agent reserves the right to hold any money in its possession, and all papers in connection with or concerning this escrow, until
a mutual agreement in writing has been reached between all of said parties and delivered to the Escrow Agent or until delivery
is legally authorized and ordered by final judgment or decree of a court of competent jurisdiction. If the Escrow Agent obeys or
complies with any judgment, order or decree of a court of competent jurisdiction, the Escrow Agent will not be liable to any of
the parties hereto nor to any other person, firm or corporation by reason of such compliance, notwithstanding any such judgment,
order or decree being subsequently reversed, modified, annulled, set aside or vacated.

 

    	-7-

    	 

    

 

10.         In
addition to Escrow Agent’s other rights herein, in the event any contest, dispute, conflicting claim or litigation arises
or exists in connection with this Agreement or Escrow Agent is otherwise in doubt as to what action to take hereunder, then in
such event, Escrow Agent may, in its sole discretion, (i) continue to retain the funds as Escrow Agent during the pendency of any
such contest, dispute, conflicting claim or litigation or resolution of such matter creating doubt as to what action Escrow Agent
is to take hereunder, provided that both the Trust and the Dealer Manager consent to Escrow Agent retaining such funds or (ii)
interplead the funds held in the Escrow Account, New York Escrow Account, Washington Escrow Account and Pennsylvania Escrow Account
into the office of the court clerk of Dallas County, State of Texas, in which event, Escrow Agent shall be entitled to be repaid
its expenses, including court costs and attorneys’ fees that it incurs as a result thereof, and in which event this Agreement
shall be deemed terminated. Each of the Trust and the Dealer Manager consents and agrees to the jurisdiction of the District Court
of Dallas County, Texas for such purpose.

 

11.         If
at any time Escrow Agent is served with any judicial or administrative order, judgment, decree, writ or other form of final judicial
or administrative process which in any way affects the property held in escrow hereunder (the “Escrow Property”)
(including but not limited to orders of attachment or garnishment or other forms of levies or injunctions or stays relating to
the transfer of Escrow Property), Escrow Agent is authorized to comply therewith in any manner as it or its legal counsel of its
own choosing deems appropriate; and if Escrow Agent complies with any such judicial or administrative order, judgment, decree,
writ or other form of judicial or administrative process, Escrow Agent shall not be liable to any of the parties hereto or to any
other person or entity even though such order, judgment, decree, writ or process may be subsequently modified or vacated or otherwise
determined to have been without legal force or effect.

 

12.         (a)          Escrow
Agent shall not be liable for any action taken or omitted or for any loss or injury resulting from its actions or its performance
or lack of performance of its duties hereunder in the absence of negligence or misconduct on its part. In no event shall Escrow
Agent be liable (i) for acting in accordance with or relying upon any instruction, notice, demand, certificate or document
from the Trust pursuant to paragraph 5 hereof (ii) for any consequential, punitive or special damages, (iii) for the acts or omissions
of its nominees, correspondents, designees, subagents or custodians, provided that the same have been selected by the Escrow Agent
with reasonable care, or (iv) for an amount in excess of the value of the collected funds in the Escrow Account, the New York Escrow
Account, the Washington Escrow Account and the Pennsylvania Escrow Account, valued as of the date of deposit.

 

(b)          Escrow
Agent shall not incur any liability for not performing any act or fulfilling any duty, obligation or responsibility hereunder by
reason of any occurrence beyond the reasonable control of Escrow Agent (including but not limited to any act or provision of any
present or future law or regulation or governmental authority, any act of God or war, or the unavailability of the Federal Reserve
Bank wire or telex or other wire or communication facility).

 

13.         Escrow
Agent shall not be responsible in any respect for the form, execution, validity, value or genuineness of documents or securities
deposited hereunder, or for any description therein, or for the identity, authority or rights of persons executing or delivering
or purporting to execute or deliver any such document, security or endorsement.

 

14.         THE
TRUST SHALL BE LIABLE FOR AND SHALL REIMBURSE AND INDEMNIFY ESCROW AGENT, ITS OFFICERS, DIRECTORS, PARTNERS, EMPLOYEES AND AGENTS
(EACH HEREIN CALLED AN “INDEMNIFIED PARTY”) AND HOLD THE INDEMNIFIED PARTIES HARMLESS FROM AND AGAINST ANY AND
ALL CLAIMS, LOSSES, LIABILITIES, COSTS, DAMAGES OR EXPENSES (INCLUDING REASONABLE ATTORNEYS’ FEES AND EXPENSES) (COLLECTIVELY,
“LOSSES”) ARISING FROM OR IN CONNECTION WITH OR RELATED TO THIS AGREEMENT OR BEING ESCROW AGENT HEREUNDER (INCLUDING
BUT NOT LIMITED TO LOSSES INCURRED BY THE INDEMNIFIED PARTIES IN CONNECTION WITH THE SUBMISSION OF THE AFFIDAVIT ATTACHED HERETO
AS EXHIBIT A TO THE DIRECTOR OF BANKING AND FINANCE OF THE STATE OF NEBRASKA); PROVIDED, HOWEVER, THAT NOTHING CONTAINED HEREIN
SHALL REQUIRE THE INDEMNIFIED PARTIES TO BE INDEMNIFIED FOR LOSSES CAUSED BY THE INDEMNIFIED PARTIES’ NEGLIGENCE OR MISCONDUCT.

 

    	-8-

    	 

    

 

15.         All
communications and notices (each a “Notice”) required or permitted by this Agreement shall be in writing and
shall be delivered personally or by messenger or sent by overnight delivery service or via telecopy or other electronic transmission,
in all cases addressed to the person for whom it is intended at such person’s address set forth below or to such other address
as a party shall have designated by notice in writing to the other party in the manner provided by this paragraph:

 

(a)          if
to the Trust:

 

United Development Funding Income
Fund V

The United Development Funding
Building

1301 Municipal Way

Suite 100

Grapevine, Texas 76051

Attention: Cara Obert

 

(b)          if
to the Dealer Manager:

 

Realty Capital Securities, LLC

Three Copley Place, Suite 3300B

Boston, Massachusetts 02116

Attention:       Louisa
Quarto

Managing
Director

 

(c)          if
to the Escrow Agent:

 

LegacyTexas Bank

100 Throckmorton, Suite 1510

Fort Worth, Texas 76102

Attention: Dawn Velekei

 

Each party hereto may, from time to time,
change the address to which Notices to it are to be delivered or mailed hereunder by Notice in accordance herewith to the other
parties. Each Notice shall be deemed given and effective upon actual receipt (or refusal of receipt).

 

16.         This
Agreement shall be governed by the laws of the State of Texas as to both interpretation and performance without regard to the conflict
of laws rules thereof.

 

17.         The
provisions of this Agreement shall be binding upon the legal representatives, successors, and assigns of the parties hereto.

 

18.         Each
of the Trust and the Dealer Manager hereby acknowledges that LegacyTexas Bank is serving as Escrow Agent only for the limited purposes
herein set forth, and hereby agrees that it will not represent or imply that, by serving as Escrow Agent hereunder or otherwise,
it has investigated the desirability or advisability of investment in the Trust or has approved, endorsed or passed upon the merits
of the Shares or the Trust or has in any way reviewed or endorsed any disclosures made by the Trust relating thereto, nor shall
the Trust use the name of the Escrow Agent in any manner whatsoever in connection with the offer or sale of the Shares other than
by acknowledgment that it has agreed to serve as Escrow Agent for the limited purposes herein set forth.

 

    	-9-

    	 

    

 

19.         This
Agreement and any amendment hereto may be executed (including by facsimile transmission) by the parties hereto with counterpart
signature pages or in one or more counterparts, each of which shall be deemed to be an original.

 

20.         The
Escrow Agent shall be bound only by the terms of this Agreement with respect to the subject matter of this Agreement and shall
not be bound by or incur any liability in connection with the subject matter of this Agreement with respect to any other agreements
or understanding between any other parties, whether or not the Escrow Agent has knowledge of any such agreements or understandings.

 

21.         The
Escrow Agent represents and warrants that it is a “bank,” as such term is defined in Section 3(a)(6) of the Securities
Exchange Act of 1934, as amended.

 

22.         The
provisions set forth in paragraphs 7-20 and 23 herein shall survive the termination of this Agreement and/or the resignation or
removal of the Escrow Agent.

 

23.         In
the event that any part of this Agreement is declared by any court or other judicial or administrative body to be null, void, or
unenforceable, said provision shall survive to the extent it is not so declared, and all of the other provisions of this Agreement
shall remain in full force and effect.

 

24.         Unless
otherwise provided in this Agreement, final termination of this Agreement shall occur on the date that all funds held in the Escrow
Account, the New York Escrow Account, the Washington Escrow Account and the Pennsylvania Escrow Account are distributed either
(a) to the Trust or to Subscribers and the Trust has informed the Escrow Agent in writing to close the Escrow Account, the
New York Escrow Account, the Washington Escrow Account and the Pennsylvania Escrow Account pursuant to paragraph 3 hereof
or (b) to a successor escrow agent upon written instructions from both the Trust and the Dealer Manager.

 

25.         This
Agreement shall not be modified, waived, revoked, released or terminated unless reduced to writing and signed by all parties hereto,
unless otherwise provided herein.

 

26.         The
Escrow Agent may resign at any time from its obligations under this Agreement by providing written notice to the Trust and the
Dealer Manager. Such resignation shall be effective on the date specified in such notice, which shall be not less than thirty days
after such written notice has been given. The Escrow Agent shall have no responsibility for the appointment of a successor escrow
agent.

 

27.         The
Escrow Agent may be removed for cause by the Trust by written notice to the Escrow Agent and the Dealer Manager effective on the
date specified in such written notice.

 

28.         The
appointment of any successor escrow agent may occur only upon the acceptance of both the Trust and the Dealer Manager, which acceptance
shall not be unreasonably withheld, and upon the written acceptance by the successor escrow agent of substantially all of the terms
and conditions of this Agreement.

 

29.         The
Trust will provide the Escrow Agent a copy of the final Prospectus and any amendments or supplements thereto, in each case within
5 days of first use by the Trust.

 

[Signature page follows]

 

    	-10-

    	 

    

 

Agreed to as of the
__ day of ___________, 2014.

 

	 	UNITED DEVELOPMENT FUNDING INCOME FUND V
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 
	 	Realty Capital Securities, LLC	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

The terms and conditions contained above
are hereby accepted and agreed to by:

 

	LegacyTexas Bank, as Escrow Agent	 
	 	 	 
	By:	 	 
	Name:	Lea Ann Capel	 
	Title:	Executive Vice President – Chief Operations Officer	 

 

[Signature
Page to Escrow Agreement]

 

    	 

    	 

    

 

EXHIBIT
A

 

FORM OF
ESCROW AGENT AFFIDAVIT FOR NEBRASKA

 

	STATE OF	 	 
	COUNTY OF	 	 

 

ESCROW AGENT
AFFIDAVIT

 

____________________
(the “Affiant”), being duly sworn, deposes and says:

 

That the Affiant is
a duly appointed and authorized representative of LegacyTexas Bank (the “Escrow Agent”);

 

That the Escrow Agent
is the duly appointed and authorized escrow agent for the public offering of the securities (the “Offering”) of United
Development Funding Income Fund V (the “Trust”);

 

That all of the conditions
of that certain Escrow Agreement entered into by and between the Escrow Agent, the Trust, and Realty Capital Securities, LLC in
connection with the Offering and effective as of the ___ day of ________, 20__ (the “Agreement”) which are capable
of being satisfied as of the date hereof have been met.

 

Affiant makes this
Affidavit to the State of Nebraska Department of Banking and Finance pursuant to Nebraska regulations Chapter 25, Section 003.01C1
promulgated under §8-1120(3) of the Securities Act of Nebraska.

 

IN WITNESS WHEREOF,
the undersigned has duly executed this document this ____ day of _____________, 20__.

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

Sworn to and subscribed before me

this ____ day of ___________, 20__.

 

______________________________

Notary Public

 

My commission expires:____________

 

(NOTARIAL SEAL)

 

    	A-1

    	 

    

 

EXHIBIT
B

 

FORM OF
NOTICE TO PENNSYLVANIA SUBSCRIBERS

 

You have tendered a
subscription to purchase common shares of beneficial interest of United Development Funding Income Fund V (the “Trust”).
Your subscription is currently being held in escrow. The guidelines of the Pennsylvania Securities Commission do not permit the
Trust to accept subscriptions from Pennsylvania residents until an aggregate of $37,500,000 of gross offering proceeds have been
received by the Trust. The Pennsylvania guidelines provide that until this minimum amount of offering proceeds is received by the
Trust, every 120 days during the offering period Pennsylvania Subscribers may request that their subscription be returned.

 

If you wish to continue
your subscription in escrow until the Pennsylvania minimum subscription amount is received, nothing further is required.

 

If you wish to terminate
your subscription for the Trust’s shares and have your subscription returned, please so indicate below, sign, date, and return
to the Escrow Agent at LegacyTexas Bank, 100 Throckmorton, Suite 1510, Fort Worth, Texas 76102, Attn: Dawn Velekei.

 

I hereby terminate
my prior subscription to purchase common shares of beneficial interest of United Development Funding Income Fund V and request
the return of my subscription funds. I certify to United Development Funding Income Fund V that I am a resident of Pennsylvania.

 

	 	Signature:	 
	 	 	 
	 	Name:	 
	 	 	(please print)
	 	 	 
	 	Date:	 

 

Please send the subscription refund to:

 

	 	 
	 	 
	 	 
	 	 

 

    	B-1

    	 

    

 

EXHIBIT
C

 

escrow agent
compensation

 

None.

 

    	C-1Trust Loan Agreement 

 

between

 

Zhongrong International Trust Co., Ltd.

 

and

 

Xi’an TCH Energy Technology Co., Ltd.

 

 

 

The Trust Loan Agreement (contract No.
No. 2013202011005002) is signed on February 17, 2014 in Xicheng District, Beijing.

 

 

 

 

    	 

    	 

    

  

Lender: Zhongrong International Trust Co.,
Ltd.

Legal Representative: Liu Yang

Address: No. 33, Song Shan Road, Nan Gang
District, Harbin

Postal Code: 150000

 

Borrower: Xi’an TCH Energy Technology
Co., Ltd.

Legal Representative: Ku Guohua

Address: 1036, Block A, No. 86, Gao Xin
Road, Gao Xin District, Xi’an

Postal Code: 710075

 

Whereas

 

		1.	Zhongrong International Trust Co., Ltd. (hereinafter referred to as “lender”, “creditor”
or “ZRIT”) is a lawfully established and legitimately existing trust company.

		2.	Xi’an TCH Energy Technology Co., Ltd. (hereinafter referred to as “borrower”,
“debtor” or “Xi’an TCH”) is a lawfully established and legitimately existing limited company. Xi’an
TCH signed an Energy Management Cooperation Agreement for CDQ Power Generation of Xuzhou Zhongtai Energy Technology Co., Ltd. (hereinafter
referred to as EMC Management Agreement) with Xuzhou Zhongtai Energy Technology Co., Ltd. (hereinafter referred to as Xuzhou Zhongtai).
Both parties agreed that Xi’an TCH builds 150 ton/hour CDQ facility and 25M/W waste heat power generation plant for Xuzhou
Zhongtai, and Xuzhou Zhongtai pays Xi’an TCH the energy saving service fees (hereinafter referred to as energy management
project). To meet the capital requirements of the energy management project, Xi’an TCH applies for trust loans from ZRIT.

		3.	ZRIT plans to establish Zhongrong-Green Recycling Energy Collective Capital Trust Plan No. 1 (hereinafter
to as “the trust plan” or “trust plan”). ZRIT, as the trustee, will release trust loans to Xi’an
TCH.

 

According
to Contract Law of the People’s Republic of China and Trust Law of the People’s Republic of China, applicable laws,
regulations, and documents, and the lender and borrower enter the agreement after consultation.

 

		1.	Definition

 

Unless otherwise
specified in the agreement, terms in the agreement have the same meaning as terms used in Trust Agreement.

		1.1	The trust plan/trust plan: Zhongrong-Green Recycling Energy Collective Capital Trust Plan No. 1

		1.2	Date for release of the loan: the dates for each of the ZRIT's release of the loans to the borrower
according to the agreement. If the establishment date for the trust plan differs from the date of the first release of the loan,
then establishment date for the trust plan shall be considered as the first release date of the loan.

		1.3	Interest settlement date: Unless otherwise agreed by both parties, interests shall be settled on
the 20th date after release of loan, the end of the 12th month, the 18th month, the 24 month, and the 36 month anniversary dates
of the first release of the loan, and the due date or the date when the lender declares full or part of the loan due according
to this agreement (hereinafter referred to as due date of loans). Interest settlement date shall not be extended due to official
or public holidays.

 

    	 

    	 

    

 

		1.4	Special account for the trust loan: Bank account opened by the borrower at the commercial bank
designated by ZRIT. The account is used to deposit the loan capital, repayment and for other purposes agreed by both parties.

		1.5	Special account for trust properties: Settlement account opened by the Lender. The account is used
to receive the repayment of the principal and interest of the loan, trust capital, relevant payment and receive of trust capitals
and other purposes under the trust agreement.

		1.6	Trust agreement: Trust Agreement (2013202011005001) of Zhongrong-Green Recycling Energy Collective
Capital Trust Plan No. 1, auxiliaries and their amendments and supplements by Zhongrong as the trustee and trustors of the Trust
Plan.

		1.7	Trust year: every 12 months from the establishment date (including the date) of the trust plan

		1.8	Trust month: the corresponding date of the next month from the establishment date of the trust
plan (including the date) (if no such corresponding date for these months, it shall be the last day of the month).

		1.9	Laws: Chinese laws, regulations, and other applicable regulating documents

		1.10	Business day: Business day of the lender excluding national and public holidays

		1.11	Yuan: Chinese RMB

 

		2.	Amount of Loan

 

The amount
of loan is one hundred and fifty million yuan (RMB 150,000,000). The capital will be released by ZRIT in tranches or at once as
applied by the borrower.

The exact
amount of loan is the actual amount released by ZRIT to the borrower.

 

		3.	Currency of Loan

 

The currency
under the agreement is Chinese RMB.

 

		4.	Use of Loan

 

		4.1	The use of the loan is for Xi’an TCH to build 150 ton/hour CDQ facility and 25M/W waste heat
power generation plant for Xuzhou Zhongtai.

		4.2	The borrower shall use the loan strictly according to the use of the loan in the agreement, and
cannot use the loan to invest in securities, futures, financial derivative products, venture capital, or accommodate enterprises
of high pollution, high energy consumption or over capacity industries. Without written consent of the lender, the borrower cannot
change the use of the loan.

 

    	 

    	 

    

 

		5.	Term of Loan

 

Term of the
loan is 48 months starting from the release of the first tranche of loan.

 

		6.	Loan Interest, Calculation and Settlement of Interests

 

		6.1	Interest rate

The interest
rate is an annual interest rate. The details are as follows:

(1) The annual
interest rate is 12% within 24 months from the release date of the first tranche of loan.

(2) After 24
months from the release date of the first tranche of loan, ZRIT shall notify the borrower 60 business days in advance the new interest
rate according to the market situation. If the borrower does not agree to the new interest rate, ZRIT has the right to terminate
the loan, and the borrower shall repay the loan in full in 10 days before the end of 24 months from the release date of first tranche
of loan.

		6.2	Calculation of interests

Interests are
calculated on a daily basis. The daily interest rate = annual interest rate/365. The interests are calculated according to the
actual loan balance and days for each loan from the release date.

The dates for
each loan is the actual days from and includes the release date of each loan but excludes the date when the principal and interest
are paid to the special account for the trust loan.

		6.3	Settlement of interests

(1) The borrower
shall calculate interests on the 20th day after release of each loan, the end of the 12th month, the 18th month, the 24th month,
and the 36th month from the release date of each tranche, and on the due date or the date when the lender declares full or part
of the loan is due; and the borrower shall pay interests on the interest payment date of the agreement.

(2) If the
borrower chooses to pay part of the principal along with the interest according to this agreement, the interests shall be paid
along with the principal.

 

		7.	Release of Loan

 

		7.1	Unless the lender waives all or part of the following releasing requirements, the lender is only
obligated to release loans to the borrower when the following requirements are fully and continually met:

(1) ZRIT has
established the trust plan;

(2) The borrower
has opened the special account for the trust loan according to section 10 of the agreement, and the account balance shall be no
less than 50 million yuan.

(3) The borrower
has submitted board resolution and authorization for execution of the agreement with the lender, the list for people who have the
authority to sign the agreement and related documents, and signature samples of those people.

(4) The borrower
has obtained all authorization, permit, approval and/or filings (if any) with the government, and provided them to the lender.

(5) The borrower
has provided irrevocable loan receipt to the lender.

(6) This agreement,
Special Escrow Account Agreement (No. 2013202011005004) for the Trust Loan (hereinafter referred to as Escrow Account Agreement)
and Account Confirmation Agreement (No. 2013202011005003) (hereinafter referred to as Account Confirmation Agreement) have been
signed and come into force.

 

    	 

    	 

    

 

(7) Pledge
Agreement and Guarantee Agreement described in section 9 have been signed and come into force, and relevant notarization has been
completed.

(8) The warranties
and representations in the agreement are true, and complete.

(9) The borrower
does not breach the agreement, and has no adverse effect on the Pledge Agreement, Guarantee Agreement, Account Confirmation Agreement
and Escrow Account Agreement.

(10) Operating
conditions (including but not limited to financial situation) of the borrower have no material change that could cause adverse
impact on the transaction under the agreement.

(11) Laws,
regulations, rules or government authorities do not prohibit or restrict the lender to release the loan.

(12) Other
prerequisites requested by the lender.

 

		7.2	When all the conditions described above are met, ZRIT shall release the loan from the special account
of trust loan properties to the following special account of trust loan.

Account information:

Bank name:
Xi’an Cheng Xi Branch, Bank of Xi’an

Account name:
Xi’an TCH Energy Technology Co., Ltd.

Account number:
xxxxxx743

 

		8.	Repayment

 

		8.1	Settlement of interests

The interests
are calculated as follows:

(1) On the
20th day from the release date of each tranche of loan, the borrower shall pay ZRIT the interests A1 for the first trust
year of each tranche of loan. A1 = the principal of each tranche of loan x 3.5%.

(2) On the
last day of the 12th month from the release date of the first tranche of loan, the borrower shall pay ZRIT the interest A2 for
the first trust year of the loan. A2 = (the balance of the principal for each loan on this settlement date x interest rate of the
first trust year x number of actual dates for each tranche during the first trust year/365) – interests already paid by the
borrower.

the balance
of the principal for each tranche on the settlement day = total amount of principal of each tranche – principal paid for
the tranche before the settlement date.

(3) On the
last day of the 18th month from the release date of the first tranche of loan, the borrower shall pay ZRIT the interests A3. A3
= balance of the principal for each tranche on the settlement date x interest rate of the second trust year x number of actual
dates for each tranche during the second trust year/365.

(4) On the
last day of the 24th month from the release date of the first tranche of loan, the borrower shall pay ZRIT the interests A4. A4
= (balance of the principal for each tranche on the settlement date x interest rate of the second trust year x number of actual
dates for each tranche during the second trust year/365) – A3.

(5) On the
last day of the 36th months from the release date of the first tranche of loan, the borrower shall pay ZRIT the interests A5. A5
= balance of the principal for each tranche on the settlement date x interest rate of the third trust year x number of actual dates
for each tranche during the third trust year/365.

 

    	 

    	 

    

 

(6) On the
last day of the 48th months from the release date of the first tranche of loan, the borrower shall pay ZRIT the interests A6. A6
= balance of the principal for each tranche on the settlement date x interest rate of the fourth trust year x number of actual
dates for each tranche during the fourth trust year/365.

(7) If the
borrower repays part of the loan in advance, the interests shall be repaid together with the principal. Such interest = (principal
repaid in advance of each tranche x applicable interest rate x number of dates for such loan/365) – interests already for
such loan. If the borrower repays the entire loan in advance, principal and interest will be calculated according to section 8.6
(1).

In the above
formulas, if the interest rate changes in the middle of certain period, the interests will be calculated accordingly.

		8.2	Payment of interests

Unless agreed
otherwise in this agreement, the borrower shall pay the interest on any day during the 10 days before the interest settlement day.

		8.3	Principal Repayment

The principal of the
loan should be repaid according to below schedule:

		(1)	The borrower should make the first repayment of the principal on the last day of the 24th
month from the establishment of the Trust Plan which is 30% of the accumulated amount released by the lender to the borrower;

		(2)	The borrower should make the second repayment of the principal on the last day of the 36th
month from the establishment of the Trust Plan which is 30% of the accumulated amount released by the lender to the borrower;

		(3)	The borrower should repay all remaining amount of the principal of the loan on the date when the
loan is due.

		(4)	When the borrower repays the principal, the related interest should also be paid off with the principal
to the lender.

8.4 Repayment account

The borrower should repay the
principal and interest to the following account designed by the lender:

Account Name: Zhongrong
International Trust Co., Ltd.

Bank Name: Xi’an
Bank Xi’an Chengxi Branch

Account Number: xxxxxxxxxxxxxxx158

 

8.5 Sequence for repayment

The lender has the right to
use the repayment from the borrower to reimburse various expenses the lender paid on behalf of the borrower and the actual expenses
to realize its creditor rights of the lender.

 

If the repayment amount from
the borrower is not sufficient to pay off the due amount (including but not limited to the principal, interest, default interest,
compound interest, penalty, damage compensation, cost to realize the creditor's right and other payable fees), the lender has the
right to determine the sequence of the payment for the principal, interest and other fees.

  

Unless otherwise agreed in the
agreement, the borrower shall pay ZRIT the due payable interests on any day within 10 days before the settlement date (interest
payment date).

 

    	 

    	 

    

 

		8.6	Prepayment

If any of the
following occurs, the trust loan becomes due before its maturity:

(1) By written
notice to ZRIT 45 business days in advance, the Borrower can request to prepay the principal and interest in full on or after the
18th month of the establishment of the trust plan, and if ZRIT agrees the prepayment, the trust loan becomes due. The borrower
shall pay ZRIT interest based on the number of dates of each loan.

If the borrower
prepays the principal and interest as above, the principal and interest = principal of each tranche of the loan x (1+ applicable
interest rate for each tranche in each trust year x number of dates for each tranche in each trust year/365) – principal
already repaid – interests already repaid. If the interest rate changes during the year, the calculation should be made section
by section accordingly.

In the notice
to ZRIT for the prepayment, it shall include the prepayment date in the written notice. Unless otherwise agreed by both parties,
the borrower cannot prepay the principal and interests without written consent from ZRIT.

(2) During
the term of the trust plan, if certain investors/trustors redeem their investment, any net redemption difference shall be deemed
to become mature and due and borrower shall repay such redemption difference amount to the repayment account specified by ZRIT
at the required time.

Net redemptions
is the amount of redemption of trust units by the investors during the redemption period exceeds the aggregated amount of newly
raised trust funds during trust unit subscription period and the repaid principal and interest by the borrower.

 

The net redemption
difference = the amount of redemption by the investors during the redemption period minus the aggregated amount of newly raised
trust funds during trust unit subscription period minus the repaid principal and interest by the borrower for the current period.

 

The subscription
period of the trust fund, redemption period, the redemption of the trust unit and the trust expenses shall be subject to the trust
agreement.

 

(3) Borrower
and/or Xuzhou Zhongtai breach the Accounts Confirm Agreement and Escrow Account Agreement signed with ZRIT.

 

(4) After the
execution of the Lien Agreement in section 9, within 7 working days after the completion of the constructions of the collateral,
the borrower shall cooperate with ZRIT to complete the procedures to put a lien on the collaterals (the mark of the completion
of the construction is according to the Lien Agreement) . Otherwise, the borrowers shall be deemed as material breach of the agreement
and ZRIT has the right to declare the loan due early.

(5) Xi’an
TCH confirmed that, ZRIT has the right to require Xi’an TCH to repay all the principal and interest of the loan after 24
months of the establishment of the trust plan. Xi’an TCH shall not refuse such request with any reason and the principal
and interest shall be calculated according to section 8.6(1) of this agreement. The right of ZRIT under this clause shall take
precedence over other repayment of loan and interest clauses in the agreement.

(6) ZRIT has
the right to declare the loan due early if the borrower breaches this agreement or other documents signed by the parties.

(7) ZRIT has
the right to declare the loan due early if the guarantor and mortgagor breach the guarantee agreements.

 

    	 

    	 

    

 

9. Guarantee

All liabilities,
including but not limited to the principal of loan, interest, penalty interest, compound interest, liquidated damages, costs to
realize the creditor's right by the lender shall be secured by collateral and guarantor in the following manner.

9.1 The borrower
uses the 150 ton/hour CDQ facility and 25M/W waste heat power generation plant that it will build for Xuzhou Zhongtai as collateral
to secure its debt to the lender. The details for the lien on the collateral shall be stated in the Lien Agreement No. 2013202011005005
between the borrower and lender.

9.2 The guarantor
Ku Guohua (ID no. xxxxxxxxxx4013) agrees to provide unlimited joint and several liability guarantee for the debt to lender in this
agreement. The details of the joint liability shall be stated in the Guarantee Contract signed by ZRIT and Ku Guohua in the contract
no. 2013202011005006.

9.3 The guarantor
Xuzhou Zhongtai agrees to provide unlimited joint and several liability for the debt to lender in this agreement. The details of
the joint liability shall be stated in the Guarantee Contract signed by ZRIT and Xuzhou Zhongtai Iron and Steel Company in the
contract no. 2013202011005007.

9.4 The guarantor
Xuzhou Jucheng Casting Technology Corporation agrees to provide unlimited joint and several liability for the debt to lender in
this agreement. The details of the joint liability shall be stated in the Guarantee Contract signed by ZRIT and Xuzhou Jucheng
Casting Technology Corporation in the contract no. 2013202011005008.

9.5 The guarantor
Xuzhou Taifa Specialty Steel Technology Corp agrees to provide unlimited joint and several liability for the debt to lender in
this agreement. The details of the joint liability shall be stated in the Guarantee Contract signed by ZRIT and Xuzhou Taifa Specialty
Steel Technology Corp in the contract no. 2013202011005009.

 

10. Trust
Loan Special Account

10.1 The borrower
agrees to open a special trust loan account in the bank designated by ZRIT to ensure the on time repayment for the principal and
interest in full. The special account is used for receiving the trust loan from ZRIT, make payment for the construction of Xuzhou
Zhongtai energy saving project, receiving the energy saving fees from Xuzhou Zhongtai to the borrower and other uses specified
by the lender.

10.2 The specimen
seals for the special account shall be the borrower's financial department seal and the seal of the personnel designated by ZRIT.
The above seals shall not be changed before the settlement of all principal and interest of the loans unless otherwise agreed by
ZRIT in writing.

 

    	 

    	 

    

 

10.3 Upon
the open of the special account, the borrower shall provide the complete set of account opening documents including the specimen
cards to ZRIT. Any payment from the account shall be approved by ZRIT after its review and approval and with all the seals stamped.
Otherwise ZRIT has the right to declare the loan due early.

10.4 ZRIT
has the right to inspect the account specimen seals regularly or without notice, and require the borrower to provide detailed bank
statement, account balance or payment vouchers and to audit the payment from the account regularly or at any random times.

10.5 ZRIT
has the right to declare the loan due early if the borrower beaches requirements of this section.

10.6 For details
of confirmation of the account, the borrower, lender and Xuzhou Zhongtai shall sign Account Confirmation Agreement.

10.7 For details
of supervision of the account, the borrower, lender and escrow bank shall sign Escrow Account Agreement.

 

11. Taxation

The borrower
and lender shall bear their own taxes under this agreement according to laws and regulations. The lender has no obligation to withhold
and pay for the borrower unless otherwise provided by the laws and regulations.

 

12. Borrower
Warranties and Representations

12.1 The borrower
makes the following warranties and representations to the lender and the lender makes the loan relying upon the warranties and
representations made by the borrower:

(1) The borrower
is a legally existing corporate registered according to PRC Laws. As to the date of the release of the loan, the borrower is in
normal and legal business operation and does not have existing or reasonably expectable situations that may cause the borrower
not be able to operate normally during the term of the loan.

(2) The execution
of the agreement is the reflection of the true intent by the borrower and the borrower has all the relevant legal authorities to
sign and fulfill this agreement, which does not violate any articles of association or other organizational documents and any laws,
regulations, policies, verdicts, contracts, commitments or arrangements binding to the borrower. All required procedures to sign
and fulfill this agreement are completed and are effective.

(3) All the
documents, materials and statements provided by the borrower to the lender for the loan are true, accurate, complete and valid
and there is no any misleading, false documents and statements.

(4) The borrower
does not withhold any fact that has happened or might happen which may cause the lender refuse to grant this loan, include but
not limited to:

(a) Material
breach of law or regulation or claims related to borrower or the main executives of the borrower.

(b) Breach
of any agreement between the borrower and other creditors of the borrower.

(c) Existing
or potential litigation and arbitration.

(d) Debt
of the borrower and guarantees provided by borrower.

(e) Other
event may affect the financial situation and repayment ability of the borrower.

 

    	 

    	 

    

 

(5) The borrower
agrees the lender to check the credit status of borrower from the credit databases and related units approved by People's Bank
of China and Credit Information Department. The borrower also agrees the lender can provide the borrower’s information to
the credit databases approved by People's Bank of China and Credit Information Department. The borrower agrees the lender may use
or disclose its information in a reasonable manner for its business needs.

12.2 The warranties
and representations made by the borrower in this section shall remain effective and are considered to be restated by the borrower
when there is any amendment or supplement to the agreement.

 

13. Lender's
warranties and representations

The lender
makes the following warranties and representations:

13.1 The lender
is a trust company approved by China Banking Regulatory Commission and registered with State Administration Industry and Commerce
and has the authority to sign this agreement.

13.2 The execution
of the agreement is the reflection of the true intent by the lender. The lender has all the relevant legal authorities to sign
and fulfill this agreement. It does not violate any articles of association or other organizational documents and any laws, regulations,
policies, verdicts, contracts, commitments or arrangements binding to the lender. All required procedures to sign and fulfill this
agreement are completed and has become effective.

13.3 The lender
delivers the trust loan to the borrower according to the “Trust Agreement”. The execution of this agreement by the
lender doesn't violate any obligations of the lender under Trust Agreement.

 

14. The rights
and obligations of the borrower

14.1 Borrower’s
rights

(1) Has the
right to require lender to release loans according to this agreement.

(2) Has the
right use the loan according to this agreement.

14.2 Borrower’s
obligations

(1) Repay
the loan principal and interest in full on time according to this agreement;

(2) The use
of loan, unless agreed by the lender in writing, shall not be used for the purposes other than agreed in this agreement.

(3) After
the release of the loan, the borrower shall provide Xuzhou Zhongtai project development report (include but not limited to the
construction progress, operation, energy saving fee collection and so on) to lender regularly or according to lender’s requirement.
The use of the loan under this agreement shall comply with the law, regulation and policies and meet the regulatory requirements.

(4) The borrower
promises to comply with all relevant laws and regulations and industry regulatory requirements.

(5) The borrower
shall bear the notary costs and registration fees for this agreement.

(6) Cooperate
with lender on the supervision and review of operation of borrower and use of the loan. The lender can inspect and supervise the
use of the loan by the borrower at any time and the borrower shall cooperate with the lender for such supervision and inspection.
The inspection and supervision methods include but not are limited to: request the borrower to provide proof documents for the
use of the loan, analyze the use of the loan, inspect the voucher or onsite inspection or other methods approved by the law.

 

    	 

    	 

    

 

(7) During
the term of this agreement, provide lender the relevant financial and operation materials, including but not limited to the latest
financial report (include balance sheet, profit and loss statement, cash flow statement and auditor report) within the first ten
working days of each quarter. All the materials shall be true, complete, accurate and valid. If the borrower provides the copies
of materials, then it shall provide a certificate signed by a director or the head of the accounting department to ensure the copies
are the same to the originals and the information are accurate, complete and latest.

(8) The borrower
shall not withdraw funds or transfer assets for the purpose to avoid the liability to the lender.

(9) The borrower
shall not provide guarantee to the third party without the lender’s permission during the term of this agreement.

(10) During
the term of this agreement, any financing by the borrower (including but not limited to the bank loan, shareholder loan) shall
be informed to the lender. The lender has the right to declare the loan due early if the lender believes the financing may affect
the repayment ability of the borrower.

(11) With
respect to the disposal of assets, during the term of this agreement, the borrower shall not sell, transfer, establish trust or
use other ways to dispose any material assets, unless approved by the lender.

(12) The borrower
shall not make any major investment unless it is approved by the lender.

(13) During
the term of this agreement, the borrower shall not take any activity that may affect the lender to realize its credit rights (including
dissolution, liquidation, bankruptcy, joint operation, division, merger, change of equity, registered capital, business scope and
the nature of business) unless with the lender’s permission and fulfillment of the repayment obligation for debt by the borrower
according to requirement of the lender and PRC Law.

(14) During
the term of this agreement, the lender must be notified within three working days if there is any change of name, address, legal
representative or bylaw or material changes of personnel in accounting and HR department, and the revised documents shall be attached
to the notice

(15) During
the term of the agreement, if any discontinuation of business, cancellation of registration, bankruptcy, legal representative or
major executive conduct illegal activities, major litigation, serious hardship of operation, serious financial deterioration or
other events that might affect the borrower's ability to repay the loan happen to the borrower, the borrower shall inform the lender
within three working days of such event and the borrower shall undertake its obligation of repayment or provide guarantee according
to the requirement of the lender and the PRC Laws.

(16) Any transfer,
pledge, offset or other methods to dispose the third party liabilities (3 million yuan or more) to the borrower shall be approved
by lender first.

(17) If the
Lien Agreement, Guarantee Agreement and Account Confirmation Agreement under section 9 and Escrow Account Agreement under section
10 do not take effect, become invalid, withdraw, terminated or breached by the guarantor or collateral damage or reduce of value
or guarantor lose part or all of its capacity to provide guarantee or clearly express or use its action to express that it will
not perform its guarantee obligation, then upon the request of the lender, the borrower shall provide new guarantee approved by
the lender.

 

    	 

    	 

    

 

(18) The borrower
shall not distribute any dividend or interest to its shareholders if the net profit after tax for the fiscal year is 0 or negative,
or the net profit after tax cannot cover the accumulative loss from pervious years, or the profit before tax is not used to repay
the principal, interest and fees, or the profit before tax cannot cover the payment of principal, interest and fees for the next
due day.

(19) Comply
with the other obligation of this agreement.

 

15. Rights
and obligations of lender

15.1 The rights
of the lender

(1) To collect
the principal, interest and other accounts receivable according to this agreement.

(2) Daily
management of the loan by itself or through a third party hired by the lender, including but not limited to understand the operation,
financial activity, check the relevant accounts, require the borrower to provide financial statement, discuss the company matters,
financials and statement with the managers, directors and auditors of the borrower.

(3) To urge
the payment if the borrower does not pay the principal and interest of the debt in full on time (include but not limited to collect
through text message, email or telephone); all costs relevant to collection shall be paid by the borrower.

(4) If any
event under section 14.2(16)(18) happens which the lender believes may threaten its creditor rights, or the borrower breaches
this agreement, the lender has the right to announce the loan due early and require the borrower to repay the principal and interest
in full immediately.

(5) Other rights
according to this agreement.

 

15.2 The obligation
of the lender

(1) Transfer the trust
loan to the bank account designated by the borrower from trust properties account according to the agreement, except for the delays
caused by the borrower or not caused by the lender

(2) Keep confidence for borrower’s
confidential business and financial materials unless otherwise required by the Laws, government authorities or agreed by the parties.

 

16. Liability
for breach of agreement

16.1 Breach
of agreement

16.1.1 Borrower
breaches the agreement

When the followings
occur, it is regarded as the borrower breaches the agreement:

(1) After
the lender starts raising fund for the trust plan (once investors start to transfer payment to the account of trust plan), the
borrower requests to terminate the trust plan, this agreement, or refuses to accept the loan from the lender.

(2) The borrower
does not provide true, complete, or valid financial statement, operation status report and other documents.

 

    	 

    	 

    

 

(3) The borrower
does not use the loan for the purpose agreed by both parties.

(4) The borrower
does not fully repay the principal and interests or repay on schedule.

(5) The borrower
refuses or prevents the lenders from supervising the use of the loan.

(6) The borrower
transfers assets and moves capital in order to dodge liabilities.

(7) The business
situation and financial status of the borrower deteriorate, the borrower cannot repay the debt, or is involved/to be involved in
material litigation, arbitration or legal disputes, which may or have affected interests of the lender.

(8) Other
debt or guarantee of borrower may or has affected the performance of its obligation to the lender under this agreement;

(9) During
the term of the agreement, contacting, leasing, merger, acquisition, joint venture, splitting, affiliation, equity change, etc.
which may or has affected or damaged the performance of its obligation to the lender under this agreement;

(10) The warranties
and representation made by the borrower is false or untrue;

(11) The event
of cross breach happens, i.e. borrower has material breach on its loan agreements with other banks;

(12) The borrower
shows it is not able to pay the debt due as: (a) because the borrower is unable to pay its debt due, its creditor declares the
borrower needs to repay its debt early, and the debt is RMB 5 million or more; (b) the borrower is unable to repay its debt due,
the borrower and its creditors start to negotiate for the restructure of the debt, and the debt is RMB 5 million or more; (c) the
borrower is unable to repay the debt due, the borrower has fully stopped or suspended to repay its creditors, or acknowledges its
unable to repay its debt, or declares that the borrower will not fulfill repayment obligations when the debt is due.

(13) The borrower
has stopped production, shut down its business, cancelled its registration, filed bankruptcy, or legal representative or main executives
breached the law, involved in material litigation, or serious hardship in its operation or financial condition, or other events
that have negative impact to fulfill its obligation of repayment under this agreement;

(14)The borrower
has following events: the assets of the borrower, in worth of RMB 5 million or more in market value, are seized, frozen, detained,
executed, imposed, forfeited, or other similar disposition, and is not released within 15 working days since the start of such
measures.

(15) The borrower
has other events which will affect the realization of the credit of the lender;

(16) Breach
other provisions of the agreement.

 

16.1.2 Breach
by the Lender

When below
situation occurred, the lender breaches the agreement:

(1)Fail
to release the full specified amount of the loan on schedule;

(2)Breach
other provision of the agreement;

 

16.2 Remedies
for Breach of Agreement

 

    	 

    	 

    

 

16.2.1 The
lender can exercise the rights below if any of the breaching event in section 16.1.1 occurs:

(1) Request
the borrower to correct noncompliance actions;

(2) Stop the
payment unpaid loan to the borrower;

(3) Declare
the principal and interest under the agreement is due immediately and request the borrower to repay all the principal and interest.
The number of the days for the calculation of the interest is the actual days from the release date of the loan (including such
day) to date the lender announces the loan is due (including such day).

(4) Exercising
its guarantee rights.

(5) If the
borrower fails to repay the principal and interest of the loan on schedule according to the agreement, the lender has the right
to charge penalty interest for the principal to the borrower from the default day until that principal are paid off. The rate of
the penalty interest is 150% of the loan rate.

(6) As to
the unpaid due interest, the penalty interest will be charged on such unpaid interest as compound default interest rate from the
day of overdue (including such day) to the day paying off (including such day). The penalty interest and compound interest charged
by the lender shall not affect other rights of the lender in this agreement.

(7) If the
borrower didn’t use the loan according to the purpose of the loan stated in the agreement, the lender has the right to charge
penalty interest for the misused portion of the loan from the day that the borrower misuse the loan to the day when the principal
and interest of the loan are fully paid off. The penalty interest rate is 150% of the interest rate of the loan.

(8) If the
borrower has other breach situations other than that of not repaying the principal and interest on time or misuse the loan according
to the purpose of the loan according to the agreement, the lender has the right to charge penalty interest with rate of 150% of
the interest rate of the loan from the date of such breach to the date when the principal and interest of the loan are fully paid
off.

 

16.2.2 If
any of the item under 16.1.1(1) occurs, the borrower has a material breach, in addition to the rights above, lender also has right
to charge one-time penalty of RMB 5 million to be deposited to a designated account of the lender.

 

The borrower
promises that the penalty is determined by both parties after duly comprehensive consideration, there is no situation that the
agreed penalty is much too higher than the actual loss of the lender. The borrower unconditionally waives its right to adjust and
reduce the amount of the penalty according to section 114 of the Contract Law .

 

16.2.3 If
the lender breaches the agreement, the borrower has the right to request the lender reimbursing its actual loss caused by the lender’s
breach.

  

17. Transfer,
Change, Cancellation and Termination

17.1 Transfer
of the agreement

(1) The lender
can transfer its rights and obligation under this agreement to the third party.

(2) The lender
should provide notice to the borrower timely after it completes the transfer of the rights and obligation to the third party.

(3) Without
written consent of the lender, the borrower is not allowed to transfer any of its rights and obligations under this agreement to
the third party.

 

    	 

    	 

    

 

17.2 Change
of the agreement

After the
agreement becomes effective, any party can not change the agreement. Any change should be made only after the lender and the borrower
agree and enter into written agreement.

 

17.3 Cancel
of the agreement

17.3.1 The
agreement is cancelled when one of below circumstances occurs:

(1) The lender
and the borrower negotiate and agree to cancel the agreement.

(2) The lender
requests the cancellation of the agreement if the loan release requirements are not be met within 60 days after the agreement is
signed.

(3) The lender
requests cancellation of the agreement because the borrower breaches the agreement and cause material damages to the lender.

(4) Other
circumstance under this agreement and law.

 

17.3.2 The
agreement is cancelled on the date when both parties sign written document to cancel the agreement or on the date when the notice
of cancellation of the lender arrives to the borrower.

 

17.3.3 No
party is allowed to cancel the agreement unilaterally except for the provision of 17.3.1 and 17.3.2.

 

17.4 Termination
of the agreement

17.4.1 The
agreement is terminated when below circumstances occurs.

(1) All principal,
interest and other payables are paid off by the borrower;

(2) The borrower
and the lender negotiate and agree to terminate the agreement;

(3) Termination
according to the law, regulation or this agreement.

 

17.4.2 The
agreement is terminated on the date when the borrower pays off all payables or on the date when the parties sign written document
to terminate the agreement.

 

17.5 The section
19 and section 21 will be continuously effective after the agreement is cancelled or terminated.

 

    	 

    	 

    

 

18. Notice

18.1 Both
parties confirm that all notices under this agreement should be made in writing and delivered to the other party by personal service,
registered mail, fax, telex, telegram, courier, email, or other means agreed by both parties. The postal addresses are as follows:

 

Lender: Zhongrong
International Trust Co., Ltd.

Address: A-21/F,
IFC Metropolis, International Financial Center, No. 8 Jian Guo Men Wai Avenue, Zhaoyang District, Beijing

Zip code:
100022

Atten:

Tele:

Fax:

Email:

 

Borrower:
Xi’an TCH Energy Technology Co., Ltd.

Address: 12/F
Building A, Chang’an International Metropolis, 88 Nan Guan Zheng Jie, Beilin District, Xi’an

Zip code:

Atten:

Tel:

Fax:

Email:

 

18.2 The delivery
of the notice is regarded as complete on the following date:

(1) Personal
service: the date indicated on the receipt signed by the notified party and obtained by notifying party ;

(2) Registered
mail: the date indicated on the receipt for the domestic registered mail held by the notifying party;

(3) Fax, telex,
and telegram: the first business day after receiving the successfully sent confirmation receipt from the machine;

(4) Courier:
the forth business day from the date of the delivery vouch held by the notifying party;

(5) Email:
the date indicated on the successfully sent email

 

18.3 If the
address or contract information of any party is changed, such party should make written notice to the other party on the same day
of the change. If any party breaches the above requirement, then the party that makes the change shall be responsible for the impact
or damages it causes.

 

19. Confidential

19.1 Each
party agrees that all important information provided by any party to the other as well as the content of the agreement should be
kept in confidence (including but not limited to pricing related information, except there is proof that information received from
the legal authorized third party or disclosed by the authorized third party or is public information).

 

    	 

    	 

    

 

19.2 Without
written consent of the other party, any party cannot disclose such confidential information to other parties (excluding the staffs
of the disclosed party which needs to know such information to conduct the transaction of this agreement), except below conditions:

 

(1)Disclose
to the trustors to conduct the transaction of the agreement;

(2)Disclose
to the attorneys, accountants, counselors, and advisors that are bound by confidential agreements and need to know such information
for the transaction;

(3)Disclose
to relative government or authorities according to related laws and administrative regulations.

 

19.3 Under
any circumstances, the confidential obligation remains effective.

 

20. Force
Majeure

20.1 The force
majeure under this agreement is: after this agreement is signed and become effective, due to the unforeseeable, unavoidable and
insurmountable events and not caused by negligence or intentional actions of any party, it affects, interferes or delays the performance
of all or part of the agreement. The force majeure includes but not limits to earthquake, typhoon, flood, fire, plague, war, coup,
terrorism, riot, strike and amendments to the new national law or regulations.

 

20.2 If there
is force majeure occurred, the suffering party should try its best to reduce the loss and make notice to the other party as soon
as possible and provide proof documents issued by local government or notary office to state the details of force majeure and reasons
why it cannot perform all or part of its obligations or delay performance under the agreement. Both parties should decide whether
the agreement should be postponed or terminated on the basis of the negotiation and mutual agreement.

 

20.3 If there
is a force majeure and the suffering party cannot perform or have to delay to perform its obligation under the agreement, then
such party shall not take responsibility for the non-performance or delay performance. If any force majeure is occurred after the
delay of the performance by any party, then such party shall be responsible for the non-performance or delay of performance of
its obligation under this agreement.

 

21. Governing
laws and dispute solution

21.1 The governing
law is laws of People’s Republic of China (for the purpose of this agreement, it doesn't include Hong Kong, Macao and Taiwan).

 

21.2 If there
is any dispute during the performance of the agreement, both parties should negotiate to solve the dispute. If parties can not
reach an agreement through negotiation, any party can file a lawsuit to the Peoples’ Court located in the place where this
agreement is signed. Unless specified in the court verdict, the losing party of the lawsuit shall pay all actual litigation costs
(including but not limited to litigation filing fee and reasonable attorney fees).

 

21.3 During
the time of resolving the dispute, the undisputed part of this agreement should still be performed. Neither party shall refuse
to perform its obligation under this agreement due to the dispute.

 

    	 

    	 

    

 

22. Enforcement
of Notarized Documents

22.1 The borrower
and the lender both confirm: parties have fully understood the rules, regulations and law with respect to the meaning, content,
procedure and authority of enforcement of notarized documents. The borrower and the lender have determined after due consideration
that both parties are willingly to have the agreement notarized with enforcement feature by Beijing Fang Yuan Notary Office upon
the agreement is signed.

 

22.2 After
notarization, the agreement will become an enforceable debt instrument. The borrower promises if it fails to fully perform its
obligation under the agreement, the borrower is subject to the enforcement by judicial agency without legal procedure. The lender
has the right to seek enforcement directly from People’s Court pursuing to section 238 of the Civil Procedure Law of People’s
Republic of China. At the same time, the borrower waives its defense right to the enforcement application by the lender.

 

22.3 The borrower
promise that, if its address and contact information are changed, it shall provide notice to the lender and notary office and request
a receipt within 3 working days of the change. Otherwise, the lender and the notary office will serve the notice related to enforcement
of notarized documents according to the section 18 of the agreement, no matter whether the borrower actually receives such documents
or not. After 3 working days of sending the service notice, it shall be considered that the notary office has fulfill its service
obligation. Under this condition, the borrower will waive its defense right to the proper service of notice by the lender and the
notary office.

 

22.4 The lender
and the borrower both confirm that, if the borrower fails to perform its obligation under the agreement, the lender may apply for
an enforcement certification from the notary office and apply the enforcement of the performance by the borrower under this agreement
with People’s Court that has jurisdiction without going through the litigation process. At the same time, the borrower waives
its defense right to the application of enforcement by the lender.

 

22.5 The section
22 of enforcement of notarized documents shall precede over the section 21 of this agreement (governing law and dispute resolution).

 

23. Effectiveness
of the agreement

23.1 The agreement
becomes effective when it is signed by the legal representatives of borrower and the lender and sealed with the companies' seals.

 

24. Others

24.1 Expenses

The following
expenses shall be borne by the borrower:

(1)The
notary expenses for this agreement and guarantee agreements under this agreement, unless agreed by the parties otherwise;

(2)All
expenses related to the realization of the creditor rights by the lender (including but not limited to litigation, arbitration,
injunctions, travel, execution, evaluation, auction, notary, delivery, filing, and legal fee, etc.);

 

    	 

    	 

    

 

24.2 Reservation
of Rights

During the
performance of the agreement, if the lender fails to exercise or fail to timely exercise any right under the agreement, it shall
not be considered as waive of such right and shall not affect other rights of the lender and the obligations of the borrower under
the agreement. All waive of rights should be made in writting.

 

24.3 All warranties
and representations under the agreement are separate and independent, unless clearly stated in the agreement or agreed by the parties
in writing, they shall not be limited by the statements in the agreement which might have opposite meanings. If any clause or part
of a clause is or will be invalid, the invalid part shall not affect the effectiveness of other clauses or other part in the same
clauses.

 

24.4 The agreement
includes the warranties and representations stated in the agreement. Any breach to the warranties and representations will be regarded
as breach to the agreement. Even if a party doesn't fully and timely exercise its rights hereof, they are still fully valid.

 

24.5 The borrower
has reviewed all provisions of the agreement. Per the request of the borrower, the lender has made corresponding explanation of
the agreement to the borrower. The borrower has fully understood the meaning of all provisions and corresponding legal results.

 

24.6 To fully
realize the intended purpose of the agreement, both parties shall sign or promise to sign documents or take all necessary actions
and procedures that are required to execute the obligations of agreement.

 

24.7 All the
titles of the agreement are for convenience of review only, which shall not be interpreted as a part of the agreement or limit
the clauses of the agreement.

 

24.8 Parties
can enter into written agreement for matters not completely addressed in this agreement, which can be the amendment to the agreement.
Any attachment, amendment and supplement are integral parts of this agreement and have the same legal effect to the agreement.

 

24.9 The documents
to secure the loan required by this agreement, loan application, loan voucher as well as other related documents provided by the
borrower or the lender are integral parts of the agreement.

 

24.10 This
agreement contains the entire agreement between the parties with respect to the subject matter hereof. This Agreement and any attachment
to the agreement constitute the whole agreement. If there is any conflicts between the agreement and letter of intent previously
signed by the parties, or other legal documents, or other written and oral agreements, the provisions of this agreement shall prevail.

 

24.11 The
agreement is signed in seven copies. The borrower holds two copies. The lender holds two copies. One copy is for the lien registration.
One copy is for notary. The last one is for the lender's file. The seven copies all have same legal effect.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00226-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00226-of-00352.parquet"}]]