|   | Contract No.: CS-20100801-5        |
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|   | Signing Place: Changxing, Zhejiang |

| 1. | Subject Matters: every type of electrode plate used in electricity-powered bicycle batteries, such as6-DZM-12 |
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| 2. | Subject Matters and Delivery Method; |
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|   | a. | With the development of the Market, Party A has obvious off and peak seasons on demand of the subject matters, which will bring lots of inconvenience during the cooperation process. Based on this condition, both parties do hereby indentify the 1st, 2nd, 3rd, 7th, 8th and 9th month of each year as the peak season, and the rest of the months as the off season; the goods supply volume in off season will be 65% of that of the peak season. |
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|   | b. | Party B shall promise that the goods supply volume will be not less than   sets per day in peak season, with sets at least per day in off season. The specific goods supply volume and specifications will be subject to the orders placed by Party A. |
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|   | c. | In order to ensure a smooth production, Part A should recognize goods supply volume and specifications of next month between the 25th day and 30th day of this month. |
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|   | d. | Unless Party A permitted, Party B shall not enter into electrode plate supply agreement with the third Party, or which will be deemed as the breach of contract. Party A is entitled to warn or pose other punish measures on Party B as per the terms specified in clause 2 under item 9. |
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|   | e. | Delivery Site: Party B shall arrange the transportation vehicle by itself and convey the average volume of each week to the place pointed by Party A. |
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|   | f. | Delivery Term: Subject to the orders placed by Party A. |
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|   | a. | Unit Price: The price of electrode plates supplied by Party B should be the sum of the average electrolytic lead price of Shanghai Nonferrous Metal Web (from the first day to the last day of one month) and the processing charges which is_RMB4100/ton. |
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|   | b. | Since the electrolytic lead price will not be settled till the end of the month, the billing price this month should be calculated according to the average electrolytic lead price of last month. After the price is settled in the end of this month, both parties should provide refund for any overpayment or a supplemental payment for any deficiency according to the right price. |
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|   | c. | The payment should be on weekly basis and the payment should be settled before Friday based on tax receipt.( acceptance bill) |
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| 4. | Delivery Terms and Place |
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| 5. | Packing Standards and the Supply & Recycling of Packing Materials |
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| 6. | Quality Inspection Standards, Methods, Place and Time Limit |
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|   | 1. | After Party B delivers products to the pointed place, Party A should do sampling inspection with 3 to 4 days according to the only standards, which is the pole plate technique agreement signed by both parties. If the products are qualified, Party should accept them into warehouse. If Party A finds any problems during manufacturing with these products, Party B should settle the problems immediately. |
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|   | 2. | Since it bears risk and relativity for Party A to do inspection within such short time, the unchecked products do not mean qualified. Therefore, if Party A find that Party B ‘s Products do not meet the qualified products standards set by both Parties, Party B should reclaim and replace them , or have them disposed on site. |
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| 7. | Risk Liability on Transportation |
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| 8. | Confidential Items |
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| 9. | Breach Liabilities |
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|   | 1. | Party B shall promise that the products meet the requirements set in another electrode plate technology agreement. If not meet the requirement, Party A is entitled to reject the products. In case Party B is not able to meet Party A’s requirements over three times, Party A is entitled to terminate the contract unilaterally. |
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|   | 2. | Party B shall supply goods subject to the orders made by both Parties and ensure the required quality and quantity. If any loss caused on Party A because of supplying goods behind time, Party B should bear penalties of RMB 3 to 5/ set. |
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|   | 3. | In case Party A’s battery products have batched quality problems because of the defective electrode plate supplied by Party B. Base on the recognition of both Parties, Party B shall take all the loss caused on Party A if goods return and replacement happens. |
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|   | 4. | Party A shall pay to Party B in a timely fashion according to the contract. If Party A fails to pay off in time and the balance haven’t been settled on each delivery before due date. If that caused the supply shortage , Party A shall not pose any punish measures on Party B and shall compensate Party B 1‰ of the delayed payment. |
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|   | 5. | Other breach liabilities shall be subject to the contract law. |
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| 10. | Force Majeure |
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| 11. | Dispute Settlement |
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| 13. | Valid Term |
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