LegalPersons Loan Contract of Qilu Bank (Firstversion of 2010) ContractNo. 2010 J.B.W.E.F.J.Z. No.001

(1)

The loan interest rate during the contract performance period floats upward 20% based on benchmark interest rate, namely, 6.372%. During the period from signing the contract to issuing the actual loan, if there is the legal adjustment of interest rate, it will float with the same rate based on the benchmark interest rate after adjustment, and Party B will not notify Party A separately.

(2)

The loan interest will be calculated since transferring the loan to Party A’s account, and the loan shall be adjusted according to the following method if there is the legal interest rate adjustment; and it shall float with the rate in (1) of this Article:

1.

If the loan term is within one year (including one year), it shall execute according to the agreed interest rate of this contract, without calculating interest on multi-stage;

2.

If the loan term is above one year, it shall execute the new rate since the first day of next calendar year since the adjustment day, and it will not notify Party A separately.

(3)

If the state cancels the benchmark interest rate, Party B has right to re-determine the contract interest rate according to the current national interest rate policy and principle of fairness and credibility as well as referring to the industrial rules and interest rate status. Party A shall promptly negotiate with Party B if there are questions. If the negotiation is failed, Party B has right to receive loan in advance, and Party A shall promptly pay off the principal& interest of loan.

(1)

It complied with the contract to apply for withdrawing from Party B and handle the withdrawing procedures;

(2)

It accepts and coordinates Party B to adopt the measures for supervising the loan, and the capital loan is not used for other purposes;

(3)

There is no breach of contract regulated in this contract;

(4)

It provides the effective certificate documents for loan purpose;

(5)

It handles other relevant materials or procedures of loan according to the requirements of Party B.

(1)

The two parties choose the second method below to pay the loan capital:

1.

Party B is entrusted to pay: Party B complies with the withdrawing application and payment entrusting of Party A to pay the loan capital to the dealing party of Party A that abides by the agreed purposes in the contract through Party A’s account.

2.

Party A pays independently: After Party B issue the loan capital to Party A’s account according to withdrawing application of Party A, Party A independently pays to the dealing party of Party A that abides by the agreed purposes in the contract.

(2)

If Party B makes sure that Party A has one of the following situations, it has right to change the independent payment of Party A into Party B being entrusted:

1.

Dropping of credit status;

2.

Bad change of benefiting ability;

3.

Abnormity in using the loan capital;

4.

Disobeying the contract to use the loan capital;

5.

Avoiding paying and supervision through breaking up the whole into parts;

6.

Other situations necessary to change the way of payment.

(3)

If Party B makes sure that Party A has one of the following situation, it has right to suspend or stop paying the loan capital;

1.

Disobeying the contract to use the loan;

2.

Disobeying the contract to pay the principal and interest;

3.

Disobeying the agreed method to pay the loan capital or there is abnormity in using the loan;

4.

Dropping of credit status or disobeying the commitment and guarantee issues;

5.

Exceeding to agreed financial target or the benefiting ability has unfavorable change;

6.

There is great cross-default matter, including but not limited in the great default matter occurred between Party A and Party B or other transaction objects;

7.

Party A is involved or will be involved in important lawsuit or arbitration procedure and other legal disputes;

8.

Party A acts to affect the debt paying ability or lacks of sincerity for debt paying;

9.

Party A provides false plans, statistics and financial statements to Party B;

10.

For the loan contract with the third party guarantee or (and) mortgage (pledge), the guarantor violates the guarantee contract or loses the ability to assume the responsibility; the mortgagor (pledgor) violates the mortgage (pledge) contract or the mortgaged (pledged) property is sealed up, detained or damaged; or there are losses to other guarantee rights and the guarantee right is restricted;

11.

The guarantor is dismissed;

12.

The guarantor violates any of the agreed obligations in the contract or it leads to other violation behaviors;

13.

After the mortgage registration takes effect, there are disputes on application or the easement is restricted or may be restricted.

14.

There are other default situations.

(4)

Party A shall comply with the requirements of Party B to provide the following using capital and materials of loan capital:

1.

Business contract (it is applicable when Party B is entrusted to pay);

2.

Capital using purpose;

3.

Other certificate materials approved by Party B.

(1)

Party A agrees to comply with the item 1 below to pay off the principal& interest of loan:

1.

The middle and short term loan within five years (including five years) shall be calculated the interest by day, and settle the interest by month, in the form of matching the principal repayment.

2.

The long term loan above five years shall be calculated the interest by day, and settle the interest by month, in the form of matching the principal repayment.

3.

The formula of the method for matching the repayment of principal and decreasing the repayment of interest is as follows:

4.

The formula of the method for matching the repayment of principal and interest is as follows:

5.

Other methods:

(1)

After the effective date of the contract, any party shall not change or terminate the contract separately.

(2)

If the loan expires, and owing to the change of objective circumstances, Party A cannot pay off the loan through efforts, it can apply for extending from Party B; Party A shall propose the written application to Party B within 10 days before the loan expires, and submit the written guarantee for agreeing the extending period of the guarantor and/or pledgor; after Party B approves and handles the guarantee procedures for extending the loan, the two parties shall handle the extending procedures; the contract interest rate during the extending period shall comply with the relevant regulations.

(3)

If Party A transfers the rights and obligations under this contract to the third party, it shall get the written permission of Party B and guarantor; and the transfer will be take effect after the transferee unit signs the loan contract with Party B and handles the guarantee procedures.

(4)

When there are changes of merger, dividing, contracting and shareholding reform for one party, the main body after change will enjoy the rights and assume the obligations of this contract.

(1)

Before paying off the loan principal and interest of Party B, it doesn’t mortgage/pledge to the third party with the assets formed by Party B’s loan.

(2)

Before paying off the loan principal and interest of Party B, it shall not provide the overburdening guarantee to others.

(4)

It shall coordinate Party B to take loan payment management, after-loan management and relevant inspection.

(5)

It shall get the permission of Party B before taking foreign investment, substantially-increasing the loan financing as well as merger, dividing and equity transfer.

(6)

It shall promptly notify Party B if there is the great unfavorable matter that affects the paying off ability.

(7)

Party B has right to tack back the loan according to capital collection status of Party A.

(1)

Rights and obligations of Party A:

1.

Party A has right to require Party B to issue the loan according to the contract;

2.

Party A shall return the entire loan principal and interest within the greed period of contract;

3.

Party A shall use the loan according to the agreed purpose, and it shall not use for other purpose without the written permission of Party B;

4.

Party B shall provide the relevant plans, statistics and financial statement according to the requirements of Party B, and ensure the authenticity, completeness and effectiveness;

5.

Party A seriously looked up and knew the responding clauses of the guarantee contract, and agreed to accept the restriction and assume the relevant responsibility.

(2)

Rights and obligations of Party B:

1.

Party B has right to receive and withhold the loan principal and interest according to the contract;

2.

Party B has right to examine the using situation of loan;

3.

Party B has right to supervise the assets of Party A and its operation status;

4.

Party B has right to take back the loan in advance according to the capital collection status;

5.

Party B has right to participate in the large-amount financing, assets sales and merger, dividing, shareholding reform and bankrupt liquidation;

6.

If one of the following situations occurred to the mortgage, pledge, warrant or other guarantees provided by Party A/ the third person, Party B has right to require Party A to eliminate the relevant bad effect, and/or require Party A to increase and change the guarantee conditions:

(1)

The guarantor violates the warrant contract or loses the ability to assume and guarantee the responsibility;

(2)

The mortgagor violates the mortgage contract or the mortgaged property is derogated or damaged;

(3)

The pledgor violates the pledge contract or the mortgaged property is derogated or damaged;

(4)

There are other situations that affect its guarantee ability.

7.

Party B shall promptly issue the loans according to the period regulated in the contract.

(1)

Party B violates the contract agreement to use the misappropriation or diversion of loan, Party B has right to calculate the interest for the misappropriation or diversion of loan with floating upward 100% for the interest rate agreed in the contract during this period.

(3)

The interest that Party B cannot pay in time for Party A shall be calculated the compound interest quarterly (short-term loan shall be calculated monthly) by floating upward of 50% agreed in the contract; the interest that cannot be paid in time during the period of misappropriation or diversion of loan shall be calculated the compound interest quarterly (short-term loan shall be calculated monthly) by floating upward 100% agreed in the contract; if it is the same loan, covering both overdue and misappropriation or diversion features, it shall handle with one aspect of more serious effect.

(4)

It shall execute by the adjusted regulations if there is policy adjustment in people’s court for penalty interest rate.

(5)

If Party A is involved in the situation of item 3 of Article 6, or violates the regulations of Article 12 and 13, Party B has right to stop issuing the unpaid loan, requiring replacing the guarantee or supplement new guarantee, taking back the issued loan principal and interest in advance and realizing the guarantee right in advance; it has right to require Party A to assume 5% of loan as the liquidated damages; it also has right to directly withhold the loan principal, interest, liquidated damages, damages and other payable items from any bank accounts opened by Party A in the system of Qilu Bank; it has right to terminate the contract.

(6)

Party B complies with the law or the contract to realize the principal creditor's right and/or guarantee right, the obtained items shall be paid off according to the following order:

1.

Charges for realizing the guarantee right;

2.

Charges for realizing the principal creditor's right;

3.

Principal creditor's right, penalty interest and compound interest;

4.

Other payable items like liquidated damages and damages.

(1)

This contract is signed for No. 2010.J. B.W.E.F.S.Z. No. 001 Legal Person’s Comprehensive Credit Line Contract of Qilu Bank, and it is the specified part of this contract.

(2)

(3)

(1)

It is sealed or made the special seal for contract by Party A;

(2)

It is sealed or made the special seal for contract by the principal or authorized agent of Party B.