| Amount:               |   | USD5,000,000                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| Purpose:              |   | To finance the local purchase of raw materials in China                                                                                                                                                                                                                                                                                                                                                        |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| Tenor:                |   | Up to 120 days.                                                                                                                                                                                                                                                                                                                                                                                                |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| Handling Fee:         |   | 0.15% of financing amount                                                                                                                                                                                                                                                                                                                                                                                      |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| PrepaymentPercentage: |   | 100% of invoice amount.                                                                                                                                                                                                                                                                                                                                                                                        |
| Drawdown:             |   | Subject to availability of funds, A written drawdown notice duly signed by the authorized signatories of the Company will normally be required to be submitted 3 banking days’ prior to the date of drawdown. Any drawdown of the loan is at the Bank’s sole discretion. Drawdown should be paid directly to the bank accounts of the specified suppliers.And supported by the following document: |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|                  |   | Drawdown request and payment instruction submitted by the Company;                                                                                                                                                                                                                                                                                                                                             |
|                  |   | Original VAT invoice (for domestic trade) or Original copy of commercial invoice                                                                                                                                                                                                                                                                                                                               |
|                  |   | Original Delivery evidence                                                                                                                                                                                                                                                                                                                                                                                     |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| Interest:             |   | COF+2.5% p.a.                                                                                                                                                                                                                                                                                                                                                                                                  |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| Repayment:            |   | Unless otherwise agreed by the Bank, all outstanding advances shall be repaid within the maturity date of such drawing (each is referred to as a “Repayment Date”).                                                                                                                                                                                                                                |

|   | *** Banking Facility Letter*** | Page 1 |
|--------|--------------------------------|--------|

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| Prepayment: |   | Allowed with prepayment penalty of 0.25% flat, subject to the Company giving at least 16 days prior written notice. Any breaking funding cost is for the Company's account. |
|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                                        |
| Clean Up    |   | No rollover is allowed.                                                                                                                                                     |
| Clause:     |   |                                                                                                                                                                        |

| Amount:       |   | RMB equivalent to USD5,000,000.-                                                                                                                                                                                                                                                                                                                                                                                         |
|---------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Purpose:      |   | To finance the local purchase of raw materials in China                                                                                                                                                                                                                                                                                                                                                                  |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Tenor:        |   | Up to 120 days.                                                                                                                                                                                                                                                                                                                                                                                                          |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Handling Fee: |   | 0.15% of financing amount                                                                                                                                                                                                                                                                                                                                                                                                |
| Prepayment    |   | 90% of equivalent CNY bills                                                                                                                                                                                                                                                                                                                                                                                              |
| Percentage:   |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Drawdown:     |   | Subject to availability of funds, A written drawdown notice duly signed by the authorized signatories of the Company will normally be required to be submitted 3 banking days’ prior to the date of drawdown. Any drawdown of the loan is at the Bank’s sole discretion. Drawdown should be paid directly to the bank accounts of the specified suppliers.And supported by the following document:           |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
|          |   | Drawdown request and payment instruction submitted by the Company;                                                                                                                                                                                                                                                                                                                                                       |
|          |   | Original VAT invoice (for domestic trade) or Original copy of commercial invoice                                                                                                                                                                                                                                                                                                                                         |
|          |   | Original Delivery evidence                                                                                                                                                                                                                                                                                                                                                                                               |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Interest:     |   | The interest shall be collected at the interest rate which is 110% of the base rate published by the People's Bank of China (the “PBOC”) on the day of drawdown, and shall be payable on the Interest Payment Date by debiting the Company's account held with the Bank on the same day.  Therefore, the Company shall maintain sufficient funds in its account before each Interest Payment Date. |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Repayment:    |   | Unless otherwise agreed by the Bank, all outstanding advances shall be repaid within the maturity date of such drawing (each is referred to as a “Repayment Date”).                                                                                                                                                                                                                                          |

|   | *** Banking Facility Letter*** | Page 2 |
|--------|--------------------------------|--------|

----

| Prepayment: |   | Allowed with prepayment penalty of 0.25% flat, subject to the Company giving at least 16 days prior written notice. Any breaking funding cost is for the Company's account. |
|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                                        |
| Clean Up    |   | No rollover is allowed.                                                                                                                                                     |
| Clause:     |   |                                                                                                                                                                        |

| Amount:                         |   | USD5,000,000.-                                                                                                                                                      |
|---------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                            |   |                                                                                                                                                                |
| Purpose:                        |   | For the granting of Loans Against Trust Receipt/Import Loan to meet the drawings under irrevocable letters of credit secured/unsecured by goods opened by the Bank. |
|                            |   |                                                                                                                                                                |
| Tenor :                         |   | Up to 90 days                                                                                                                                                       |
|                            |   |                                                                                                                                                                |
| Interest:                       |   | COF + 2.5% per annum.                                                                                                                                               |
| Handling Comm                   |   | 0.125% of bills amount                                                                                                                                              |
|                            |   |                                                                                                                                                                |
| Commission in lieu of exchange: |   | 0.125% of bills amount                                                                                                                                              |
|                            |   |                                                                                                                                                                |
| Availability                    |   | All application forms and other supporting documents to be in form and substance satisfactory to the Bank                                                           |

| Amount:         |   | USD5,000,000.-                                                                                                                                                                                                                                                                                              |
|-----------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|            |   |                                                                                                                                                                                                                                                                                                        |
| Purpose:        |   | For opening of irrevocable letters of credit secured/unsecured by goods , calling for drafts drawn at sight or usances of up to 90 days covering imports of raw materials. /Prior evidence of insurance will be required for all “free on board’ and ‘cost and freight’ shipment /. |
| Tenor:          |   | Up to 90 days.                                                                                                                                                                                                                                                                                              |
|            |   |                                                                                                                                                                                                                                                                                                        |
| Issuance fee:   |   | 0.15% of LC amount, Min USD40.00 per LC                                                                                                                                                                                                                                                                     |
|            |   |                                                                                                                                                                                                                                                                                                        |
| Acceptance fee; |   | 0.1% per month, Min USD40.00                                                                                                                                                                                                                                                                                |
|            |   |                                                                                                                                                                                                                                                                                                        |
| Other Fee:      |   | standard rates.                                                                                                                                                                                                                                                                                             |
|            |   |                                                                                                                                                                                                                                                                                                        |
| Availability    |   | All application forms and other supporting documents to be in form and substance satisfactory to the Bank                                                                                                                                                                                                   |

|   | *** Banking Facility Letter*** | Page 3 |
|--------|--------------------------------|--------|

----

|   | *** Banking Facility Letter*** | Page 4 |
|--------|--------------------------------|--------|

----

|   | *** Banking Facility Letter*** | Page 5 |
|--------|--------------------------------|--------|

----

| 1. | obtain and maintain current all approvals, licenses and consents required under Chinese law to enable it to enter into and perform its obligations under this letter, which shall be legally enforceable and admissible in China; |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | ensure that at all times the claims of the Bank against the Company under this letter rank at least pari passu with the claims of all its other present and future unsecured and unsubordinated creditors; |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | provide to the Bank at the Bank’s request the Company’s [and Guarantor’s] valid lending IC control card(s) for the Bank’s inspection and input of information to the Credit Registration & Consultation System (“System”); and |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | *** Banking Facility Letter*** | Page 6 |
|--------|--------------------------------|--------|

----

| 4. | at each annual renewal of Company’s [and Guarantor’s] lending IC Control card(s), promptly provide such card(s) to the Bank to enable the Bank to verify and continue input of information to the System. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | route no less than CNY25Mn sales proceeds through SCB quarterly |
|----|-----------------------------------------------------------------|

| 6. | The top management change to be advised to the Bank. |
|----|------------------------------------------------------|

| 7. | submit to the bank at their respective due dates: |
|----|---------------------------------------------------|

|   | 1) | a signed original copy of the Company’s audited financial statements within 150 days after its financial year end, which shall disclose relevant related party transactions required by any applicable laws, regulations and guidelines or equivalent from time to time; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2) | a signed original copy of the Company’s unaudited semi-annual financial statements within 90 days after the end of the relevant accounting period. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | *** Banking Facility Letter*** | Page 7 |
|--------|--------------------------------|--------|

----

|   | *** Banking Facility Letter*** | Page 8 |
|--------|--------------------------------|--------|

----

|   | *** Banking Facility Letter*** | Page 9 |
|--------|--------------------------------|--------|

----

|   | 1) | the holding company of the Bank, any of its subsidiaries or subsidiaries of its holding company, affiliates, representative and branch offices in any jurisdiction (the “Permitted Parties”); |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2) | the professional advisors and service providers of the Permitted Parties who are under a duty of confidentiality to the Permitted Parties; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3) | any actual or potential participant or sub-participant in relation to any of the Bank’s rights and/or obligations under any agreement between the Company and the Bank, or assignee, novatee or transferee  ( any agent or adviser of any of the foregoing); |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4) | any rating agency, insurer or insurance broker of, or direct or indirect provider of credit protection to any Permitted Party; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------|

|   | 5) | any court or tribunal or regulatory, supervisory, governmental or quasi-governmental authority with jurisdiction over the Permitted Parties. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | *** Banking Facility Letter*** | Page 10 |
|--------|--------------------------------|---------|

----

|                                                    |   |                                                         |
|---------------------------------------------------------|--------|--------------------------------------------------------------|
| /s/ Chen Yang                                           |   | /s/ Fang Jie Ling                                            |
| Relationship Manager                                    |   | Branch Manager                                               |
| Standard Chartered Bank (China)Limited, Shenzhen Branch |   | Standard Chartered Bank (China)Limited, Shenzhen Branch |

|                                   |
|----------------------------------------|
| For and on behalf of                   |
| Shenzhen Highpower Technology Co., Ltd |
| /s/ Pan Dangyu                         |
| [Signed by Authorised person]          |
| [Affix Company Chop]                   |
| Ref:                                   |

|   | *** Banking Facility Letter*** | Page 11 |
|--------|--------------------------------|---------|

----

| 1. | The original of this letter executed by the Company in duplicate with the supporting Board Minutes and specimen signatures of authorized signatories. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | The original of the General Customer Agreement (07) executed by the Company with the supporting Board Minutes. |
|----|----------------------------------------------------------------------------------------------------------------|

| 3. | Corporate Guarantee for USD5,000,0000 in the Bank’s standard form issued by Springpower Technology(Shenzhen) Co., Ltd with  the supporting Board Minutes. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Personal Guarantee for USD11,000,0000 in the Bank’s standard form issued by Pan Dang Yu. |
|----|------------------------------------------------------------------------------------------------|

| 5. | Cash Pledge Agreement  with the supporting Board Minutes. |
|----|---------------------------------------------------------------------|

|   | *** Banking Facility Letter*** | Page 12 |
|--------|--------------------------------|---------|

----

| 1. | Municipal government approval for operating business issued by Ministry of Commerce. |
|----|--------------------------------------------------------------------------------------|

| 2. | Business License with the updated annual check.. |
|----|--------------------------------------------------|

| 3. | Articles of Association. |
|----|--------------------------|

| 4. | Supplementary to Articles of Association (if any). |
|----|----------------------------------------------------|

| 5. | Specimen signature of the person(s) authorized to sign the Security Documents with certified true copies of their ID card or passport. |
|----|----------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Lending IC card reference number. |
|----|-----------------------------------|

| 7. | Any other security documents/information as the Bank may request from time to time. |
|----|-------------------------------------------------------------------------------------|

|   | *** Banking Facility Letter*** | Page 13 |
|--------|--------------------------------|---------|

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