| I. | Organizational      Structure and Responsibility of R&DCenter |
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|   | 2. | The R&D      projects will be proposed by the Center and commenced after the approval      from both Parties A andB. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Responsibilities      of R&D CENTER |
|--------|---------|-----------------------------------------|

|  | a. | Monitor      the industrial demand of Party A from time to time, and set up the project      accordingly for both Parties A and B to discuss and      approve. |
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|  | b. | Coordinate      with Party A to apply for science & technology plan projects at all      levels (including, but not limited to, national, provincial and local      levels), and complete the subjectprojects. |
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|  | c. | Provide      training to R&D staff of Party A with regards to Party A’s      requirements.. |
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|  | d. | Efficient      and effectiveness all other issues of  cooperation. |
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|  | 1. | Responsibilities      of Party A |
|--|---------|----------------------------------|

|  | a. | Throughout      the cooperation period, Party A shall sponsor RMB300, 000 (Three Hundred      Thousand) annually as operating cost of the R&D CENTER located in      Party B. The payment will be remitted to Party B’s account during May to      July each year. (Account Name: Xiamen University; Bank: Industry and      Commercial Bank of China, Xiamen University Branch; Account Number:      4100021709024904620) |
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|  | b. | Provide      additional R&D funds, which will be allocated by the Center in      accordance with the proposal and the specific R&D      projects. |
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|  | c. | Throughout      the cooperation period, Party A shall provide accommodation, office,      R&D labs and testing workshops to all the Center staff to perform      their work successfully and  effectively. |
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|  | d. | During      the R&D period, Party A shall provide all necessary technology      supports and ensure all other necessary supports to the staff of Party B      on field work. |
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|  | e. | Efficient      and effectiveness all other issues of  cooperation. |
|--|----|--------------------------------------------------------------------|

|  | 2. | Responsibilities      of Party B |
|--|---------|----------------------------------|

|  | a. | In      view of the development trend of new power technology, Party B shall      accordingly coordinate with Party A to make technical development plans      and initiates plans and solutions to master cutting-edge      technologies. |
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|  | b. | In      accordance with the technical      requirements and industry development plan, Party B shall build a team to      research the projects approved by both parties and other science &      technology schemes which has been setup. |
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|  | c. | Researches      and develops the new model Lithium-ion battery, the ultra capacitor      combined power battery, and soon. |
|--|----|----------------------------------------------------------------------------------------------------------------------------|

|  | d. | Provide      the research staff with R&D labs and relevant    equipment. |
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|  | e. | Efficient      and effectiveness all other issues of  cooperation. |
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|        | III. | Entitlement      of Achievements |
|--------|----------|----------------------------------|
|   |     |                             |

|  | 1. | All      science & technology and R&D projects which were set up by the      Center and has obtained achievements shall be entitled to both Parties.      Neither Parties can transfer the achievements without the permission of      the other Party. (Changes are subject to the amended version, if      any). |
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|  | 2. | All      patent and non-patent technology achievements can be accessed by both      Parties. The authors and owners ranking will be subject to the relevant      agreements related to the specific projects.  The ranking of      participants will be ranked in the order of their      contributions. |
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|  | 3. | Once      the achievements are transferred to the third Party with the permission of      both Parties, and are for commercial use, the profits gained by these      transactions will be distributed on the proportional basis.  The      specific distribution proportion will be subject to the clauses set forth      in the agreements related to the specific  projects. |
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|  | 4. | Once      the project was initiated by the Center, Party B shall not carry out any      research on that same project. Otherwise, the achievement obtained by      Party B will be deemed as the achievements of the      Center. |
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|  | IV. | Operating Fund      Management |
|--|----------|--------------------------------|

|  | 1. |  Both      Parties should actively apply for project fund sponsorships and subsidies      from all functional departments of the government. The received funds will      be allocated among the projects in accordance with the agreement and      remitted to both Parties’ bank accounts for delegated R&D project      purpose. |
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|  | 2. | The      R&D expenditures should be reviewed and approved by the Chief Officer      of the Center; the expenditures incurred in Party B should be reviewed and      approved by the Associate Officer who is recommended and appointed by      Party B. |
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|  | 3. | All      other matters not mentioned herein and above will be resolved through      amicable negotiation by bothParties. |
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| V. | The      terms of this Agreement is valid for three full years from the date of      April 30,2008.   |
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| Party AChangxing Chisen Electric Co., Ltd.Jingyi RoadChangxing Economic DevelopmentZone, Changxing, ChinaFor and on Behalf of Changxing ChisenElectric Co., Ltd. |
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|                                                                                                                                                                                                                                                       |   |
| By:                                                                                                                                                                                                                                                        | /s/ Xu      Kecheng |
| Name:                                                                                                                                                                                                                                                      | Xu      Kecheng |

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| Party      BXiamen      UniversityXiamen,      Fujian Province, ChinaFor      and on Behalf of Xiamen University |
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|                                                                                                             |   |
| By:                                                                                                              | /s/ Liu    Xu |
| Name:                                                                                                            | Liu      Xu |

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