[1]

During the six months ended June 30, 2018, Taizhou Fuling entered into a series of short-term bank loan agreements with ABC for a total amount of $3,853,652. The terms of these loans are six months with variable interest rates based on the prevailing interest rates, respectively. The effective rates are from 4.90% to 5.15% per annum. During fiscal year 2017, Taizhou Fuling entered into a series of short-term bank loan agreements with ABC for a total amount of $11,831,148. The terms of these loans are six to twelve months with variable interest rates based on the prevailing interest rates. The effective rates were from 4.57% to 4.90% per annum. As of June 30, 2018, $5,146,449 of them had been repaid upon maturity. In February 2017, Great Plastics entered into a short-term bank loan agreement with ABC for $691,520. The terms of the loan are twelve months with a variable interest rate based on the prevailing interest rate. The effective rates are 5.66% per annum. This loan was fully repaid in July 2017 prior to its maturity. These loans were guaranteed by the assets of a third party guaranty company and a shareholder of the Company. The third party guaranty company charges 2% of total loan amount.

[2]

During six months ended June 30, 2018, Taizhou Fuling entered into a series of short-term bank borrowing agreements with CMB for a total amount of approximately $3.7 million (RMB 24.5 million). The terms of these loans are five to twelve months with variable interest rates based on the prevailing interest rates. The effective rates were from 2.40% to 6.09% per annum. The loans are guaranteed by Special Plastics and Taizhou Fuling's general manager and Chair of the Board. As of June 30, 2018, $1,428,345 had been repaid in full upon maturity. In January, March, July and December 2017, Taizhou Fuling entered into four short-term bank borrowing agreements for approximately $4.5 million (RMB 29.4 million) with CMB for twelve, six, six and twelve months, respectively. The effective rates were 6.09%, 2.67%, 1.99% and 6.09% per annum, respectively. The loans are guaranteed by Special Plastics and Taizhou Fuling's general manager and Chair of the Board. As of June 30, 2018, $2,167,326 had been repaid in full upon maturity.

[3]

In April and May 2018, Great Plastics entered into two short-term bank borrowing agreements with PAB with a total amount of $1,511,236 for ten and nine months. The loans bear a variable interest rate based on the prevailing interest rate set by the People's Bank of China at the time of borrowing, which equals 180% of the prevailing interest rate. The effective rate is 7.82%. The loans are guaranteed by the assets of Great Plastics. In March 2017, Great Plastics entered into a short-term bank borrowing agreement with PAB with a total amount of $1,536,712 for twelve months. The loan bears a variable interest rate based on the prevailing interest rate set by the People's Bank of China at the time of borrowing, which equals 180% of the prevailing interest rate. The effective rate is 7.83%. The loan is guaranteed by the assets of Great Plastics. As of June 30, 2018, this loan was fully repaid in full upon maturity.

[4]

During the six months ended June 30, 2018, Taizhou Fuling entered into a series of short-term loan agreements with ICBC for a total amount of $2,600,126. The terms of these loans are five to twelve months with the interest rates ranged from 3.47% to 5.22% per annum. During 2017, Taizhou Fuling entered into a series of short-term loan agreements with ICBC for a total amount of $7,092,174. The terms of these loans are five to twelve months with the interest rates ranged from 2.14% to 5.00% per annum. As of June 30, 2018, $4,893,414 of them had been repaid upon maturity.

[5]

During the six months ended June 30, 2018 and the year ended December 31, 2017, Taizhou Fuling entered into a series of short-term bank borrowing agreements and other financing agreements with BOC. The terms of the loans are three to twelve months, with fixed interest rates based on London InterBank Offered Rate ("LIBOR") (for loans dominated in USD) or prime loan rates issued by People's Bank of China (for loans dominated in RMB), plus certain base points. The effective interest rates vary from 3.30% to 5.44% per annum. The loans to Taizhou Fuling are guaranteed by the Chief Executive Officer ("CEO").

[6]

On March 9, 2017, Direct Link entered into a line of credit agreement with East West Bank for $2,000,000 for one year. The annual interest rate is equivalent to LIBOR rate plus 2.75%. Direct Link was required to make restricted deposit of $41,900 for one year (which was released in June 2018) with an initial interest rate of 3.76% per annum. The line of credit is guaranteed by Fuling Global. The agreements require Direct Link to comply with certain financial covenants and ratios, including to maintain minimum debt service coverage ratio of 1.40 times and to maintain maximum total debt to equity ratio of 3.0 times etc. Direct Link will be measured semi-annually at June 30th and December 31st. Direct Link was not in compliance as of June 30, 2018. On April 7, 2017, Direct Link drew down $1,500,000 with the effective rate of 3.86% per annum. On December 1, 2017, Direct Link drew down another $500,000 with the effective rate of 4.45% per annum. Interest expense incurred on this loan for the six months ended June 30, 2018 and 2017 were $47,955 and $14,942, respectively. On March 14, 2018, East West Bank approved to extend the loan to June 9, 2018. On June 26, 2018, East West Bank again approved to extend the loan to June 9, 2019. East West Bank waived financial covenant violations at June 30, 2018.

[7]

In January 2018, Taizhou Fuling entered into a short-term bank loan agreement with PSBC for $1,026,771. The terms of the loan are twelve months. The effective rates are 2.95% per annum. In November and December 2017, Taizhou Fuling entered into a series of short-term bank loan agreements with PSBC for $2,975,004 and $1,071,593, respectively. The terms of these loans are twelve and five months, respectively. The effective rates are 2.65% and 4.15% per annum, respectively. As of June 30, 2018, $1,071,593 of them had been repaid upon maturity.