Supply
      Contract

    


    Contract No.: YD4080402

    Signing Place: Anzhen Town, Wuxi

    


    Party
      A:
      Jiangsu Yadea Science & Technology Development Co., Ltd. 

    Party
      B:
      Changxing Chisen Electric Co., Ltd. 

    


    Validity
      period of this Contract: January
      1, 2008
      through
January
      1, 2009
      (after
      the expiration of this Contract and prior to the signing of new contract, if
      both parties have business to be continued, this Contract shall continue to
      be
      effective).

    


    After
      friendly consultation and in the principle of mutual benefit and common
      development, both parties hereby enter into this Contract and hereby agree
      as
      follows:

    


    I
      Party A
      shall provide Party B will the following products:

    


    
      	
              Order

            	 	
              Product Name

            	 	
              Specification

            	 	
              Unit

            	 	
              Unit Price

            	 	
              Remarks

            
	
              1

            	 	
              Lead-acid battery 

            	 	
              48V10AH

            	 	
              Set

            	 	 	 	
              4 batteries each set

            
	
              2

            	 	
              Lead-acid battery

            	 	
              48V12AH

            	 	
              Set

            	 	 	 	
              4 batteries each set

            
	
              3

            	 	
              Lead-acid battery

            	 	
              48V16AH

            	 	
              Set

            	 	 	 	
              4 batteries each set

            
	
              4

            	 	
              Lead-acid battery

            	 	
              48V20AH

            	 	
              Set

            	 	 	 	
              4 batteries each set

            


    

    


    II
      In the
      event of rise or fall in price pf raw materials, both parties agree to carry
      out
      the new price after consultation. 

    


    III
      Packing Method:

    


    
      	
              1.

            	
              Packed
                with carton, with product name, quantity, specification clearly marked
                outside.

            


    

    
      	
              2.

            	
              Upon
                the request by Party A, Party B may provide special package but the
                costs
                arising therefrom should be born by Party
                A.

            


    

    


    IV
      Quality Warranty

    


    Party
      B
      shall provide Party A with the battery in compliance with Party A's requirement
      as detailed in the quality and technical agreement entered into between both
      parties. 

    


    V
      Supply
      Service 

    


    
      	
              1.

            	
              Party
                B shall provide Party A with the products at its lowest price, otherwise,
                Party B shall make compensation for Party A ten times the values
                of all
                products supplied previously.

            


    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              2.

            	
              Party
                B shall return Party A’s order within 6 hours after its receipt, or it
                shall be deemed that Party B accepts all contents thereon.
                

            


    

    
      	
              3.

            	
              The
                delivery time, specific product name and specification shall be subject
                to
                the purchase order.

            


    

    
      	
              4.

            	
              If
                Party A stops production as a result of Party B’s delayed supply of goods,
                Party B shall compensate Party A according to the standard of RMB2,000
                per
                hour.

            


    

    
      	
              5.

            	
              In
                the event of change of order, Party A shall give Party B a notice
                of two
                days.

            


    

    
      	
              6.

            	
              If
                Party B’s products can’t meet Party A/s technical standard, such products
                should be depreciated by 5%~10% of such lot upon the consent of Party
                A.
                For three continuous unconformity, Party A will suspend Party B’s supply
                of goods and Party B shall compensate Party A for all its losses
                arising
                therefrom. 

            


    

    
      	
              7.

            	
              Party
                B shall hold in confidentiality Party A’s special requirements for goods
                and may not provide the related information to other party; otherwise,
                Party B shall compensate Party A for all its losses arising
                therefrom.

            


    

    
      	
              8.

            	
              Party
                B shall supply the goods to Party A in accordance with the quantity
                required. The products that Party A does not want may be returned
                to Party
                B. If Party B fails to supply Party A the products wanted, it shall
                compensate Party A for all its losses arising
                therefrom.

            


    

    
      	
              9.

            	
              The
                Party B’s supply time error may not exceed 5 days.
                

            


    

    


    VI
      Transportation: Party B shall deliver the products to Party A’s warehouse and
      bear the expenses arising therefrom.

    


    VI
      After-sale Service: 

    


    (i)
      

    
      	
              1.

            	
              48V10AH
                battery should have 15
                months
                of warranty period and should be replaced for free if found defective
                within 8
                months, or maintained for free if found defective within 8
                to 15
                months. 

            


    

    
      	
              2.

            	
              48V12AH
                battery should have 15
                months
                of warranty period and should be replaced for free if found defective
                within 8
                months, or maintained for free if found defective within 8
                to 15
                months.

            


    

    
      	
              3.

            	
              48V16AH
                battery should have 15
                months
                of warranty period and should be replaced for free if found defective
                within 8
                months, or maintained for free if found defective within 8
                to 15
                months.

            


    

    
      	
              4.

            	
              48V20AH
                battery should have 15
                months
                of warranty period and should be replaced for free if found defective
                within 8
                months, or maintained for free if found defective within 8
                to 15
                months.

            


    

    
      	
              5.

            	
              48V20AH
                (electric motorcycle) battery should have 11
                months
                of warranty period and should be replaced for free if found defective
                within 6 months, or maintained for free if found defective within
                6
                to 11
                months.

            


    

    


    (ii)
      Party B shall be liable for after-sale service to all batteries used in Party
      A’s entire vehicle since the date of leaving factory.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    


    (iii)
      For
      the places in which Party B has no direct after-sale service and so entrusts
      Party A, Party B shall bear all expenses arising therefrom. 

    


    VIII
      Payment 

    


    
      	
              1.

            	
              For
                each payment, Party A shall deduct 10% of the money as after-sale
                security, until such deduction reaches to RMB300,000. Such security
                should
                be paid off upon the expiration of the warranty period of last lot
                of
                products. 

            


    

    
      	
              2.

            	
              Party
                A shall pay Party B the money on the 30th
                day of the month in which Party B supplies goods. The last payment
                should
                be paid in full within 1 month after Party B’s stopping of supply.
                

            


    

    


    IX
      Party
      A shall be entitled to require Party B to develop relevant accessories prior
      to
      the termination of this Contract. 

    


    X
      Without
      the consent of Party A, Party B may not bilaterally stop the supply; otherwise
      it shall compensate Party A for all its losses arising therefrom.

    


    XI
      Miscellaneous

    


    
      	
              1.

            	
              The
                products supplied by Party B to Party A may not offend the intellectual
                property of other party.

            


    

    
      	
              2.

            	
              Trademark:
                if Party A entrusts Party B to print the words “Yadea” or “”,
                Party B shall ensure such marked products only to be sold to Party
                A;
                otherwise, Party B shall pay Party A default fine of RMB100,000 for
                each
                time of default. 

            


    

    


    XII
      Change of Contract 

    


    This
      Contract may be changed by both parties after consultation in writing.


    


    XIV
      For
      matters not mentioned herein, the Contract Law shall govern. 

    


    XV
      This
      Contract shall be executed in two copies, one for each party. 

    


    Party
      A:
      Jiangsu Yadea Science & Technology Development Co., Ltd. (seal)

    Signature:   
      /s/ Authorized Representative 

    Date:
      April 20, 2008

    


    Party
      B:
      Changxing Chisen Electric Co., Ltd. (seal)

    Signature:
      /s/ Authorized Representative 

    Date:
      April 22, 2008